This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following NOT the main motive of a bank to participate in money market A) To square the position. B) To manage liquidity. C) To create new position for profit. D) To manage their market risk. Show Answer Correct Answer: D) To manage their market risk. 2. .Dematerialization is the process of holding securities in A) Paper mode. B) Electronic mode. C) Physical form. D) Wallet. Show Answer Correct Answer: B) Electronic mode. 3. Since the financial crisis, governments have tried to improve the regulation of financial markets. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 4. A money market instruments issued on behalf of Central Government is called A) Call money. B) Commercial paper. C) Treasury bill. D) Commercial bill. Show Answer Correct Answer: C) Treasury bill. 5. How much must be invested today for $ 400 to be received 3 years from now, assuming an interest rate of 8%, quarterly compounding? A) $ 228.00. B) $ 369.54. C) $ 317.53. D) $ 315.40. Show Answer Correct Answer: D) $ 315.40. 6. Why would a company need to issue stock? A) To increase its' customer base. B) To raise money. C) To stop the government from regulating it. D) To show customers that it's successful. Show Answer Correct Answer: B) To raise money. 7. Government Securities are issued by agencies such as ..... A) Central Government. B) State Government. C) Semi Government Authorities. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Instruments deals in capital market are A) Call money. B) Commercial Bill. C) Zero Coupon Bard. D) Equity Shares. Show Answer Correct Answer: D) Equity Shares. 9. Which of the below is a function of a regulator A) Build contact with institutional investors. B) Set rules and regulations and ensure compliance. C) Advises and participates in offer for subscription, M&A etc. D) Undertakes reorganization of loss making companies. Show Answer Correct Answer: B) Set rules and regulations and ensure compliance. 10. Primary and secondary market: A) Compete with each other. B) Complement each other. C) Control each other. D) Function independently. Show Answer Correct Answer: B) Complement each other. 11. The person who inherits ownership of a financial asset if the purchaser dies is called the A) Donor. B) Benefactor. C) Recipient. D) Beneficiary. Show Answer Correct Answer: D) Beneficiary. 12. Call money or call loans are ..... . A) Fixed. B) Liquid. C) Costly. D) Cheap. Show Answer Correct Answer: B) Liquid. 13. Within the structure of a Mutual Fund, ..... are responsible to regulate the mutual fund and make sure it runs as per the guidelines A) Fund Manager. B) Distributor. C) Trustee. D) Custodian. Show Answer Correct Answer: C) Trustee. 14. Primary market deals with selling of securities for the first time through the following method A) Book building. B) Investor issue. C) Bonus declaration method. D) Employee stock issue. Show Answer Correct Answer: A) Book building. 15. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs A) Immediately. B) In the future. C) Uncertain. D) After on month. Show Answer Correct Answer: A) Immediately. 16. 'Dirty float' is another name for which exchange rate regime? A) Managed. B) Flexible. C) Free float. D) Fixed. Show Answer Correct Answer: A) Managed. 17. Finance functions are ..... A) Planning of funds. B) Raising of funds. C) Allocation of Resource. D) All the above. Show Answer Correct Answer: D) All the above. 18. The Financial Policy Committee (FPC) is a macroprudential regulator. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 19. If a firm requires to raise two crores for six months time to keep the stock of raw material, it should approach A) Money market. B) Capital market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Money market. 20. The market for buying and selling of commercial Bills of Exchange is known as a ..... A) Commercial Paper Market. B) Treasury Bill Market. C) Commercial Bill Market. D) Capital Market. Show Answer Correct Answer: C) Commercial Bill Market. ← PreviousNext →Related QuizzesFinance QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books