This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Educating the investor is the ..... function of SEBI. A) Protective. B) Regulatory. C) Both the above. D) Developmental. Show Answer Correct Answer: A) Protective. 2. Tom, the jeweler, owed his brother, Jesse some money. Something came up and Jesse needs the money right away. Tom did not have the cash and so, he gave Jesse commodity money in the form of gold. A) Fiat Money. B) Representative money. C) Commodity Money. D) Specie. Show Answer Correct Answer: C) Commodity Money. 3. Date when the Securities and Exchange Commission announced that it had "relinquished control of the Manila Stock Exchange." A) February 3, 1963. B) February 23, 1936. C) February 13, 1936. D) February 3, 1936. Show Answer Correct Answer: D) February 3, 1936. 4. Which of the following are NOT parts of interbank money market operations A) Place deposit. B) Lend money. C) Issue securities. D) Borrow money. Show Answer Correct Answer: A) Place deposit. 5. Penny is an artist and John is a carpenter. Penny agrees to paint a portrait of John's family in exchange for a handmade table created by John. How did Penny and John pay for the goods in their transaction? A) Using a store of value. B) With money. C) Through bartering. D) With currency. Show Answer Correct Answer: C) Through bartering. 6. Equity is traded in which Market? A) Capital. B) Money. C) Debt. D) Foreign exchange. Show Answer Correct Answer: A) Capital. 7. The Stock Market Exchange in which energy and technology stocks are traded in New York City A) Dow Jones industrial Average. B) S & P 500. C) Nasdaq. D) New York Stock Exchange. Show Answer Correct Answer: C) Nasdaq. 8. An Investment in which investors pool their money to buy stocks and bonds A) Mutual Funds. B) Preferred Funds. C) Common Funds. D) Diverse Funds. Show Answer Correct Answer: A) Mutual Funds. 9. Asymmetric information can be divided into ..... A) Money market and capital market. B) Adverse selection and moral hazard. C) Economies of scale and economies of scope. D) None of above. Show Answer Correct Answer: B) Adverse selection and moral hazard. 10. Corporate bonds are issued by ..... A) Private Companies. B) Local Governments. C) The Federal Government. D) Banks. Show Answer Correct Answer: A) Private Companies. 11. Risk in the Money Market is ..... A) High. B) Market Risk. C) Low Credit and Market Risk. D) Medium Risk. Show Answer Correct Answer: C) Low Credit and Market Risk. 12. Profits made from investments are reported as ..... A) Capital Gains. B) Capital Losses. C) Bull Markets. D) Bear Markets. Show Answer Correct Answer: A) Capital Gains. 13. Microprudential regulation ensures that individual firms act fairly towards their customers and don't take excessive risks or break the law. 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. 14. Which of the following is not a part of capital market? A) Banks. B) Financial institutions. C) RBI. D) Stock Exchange. Show Answer Correct Answer: C) RBI. 15. Which of the following is NOT a role of a stock exchange? A) Capital Raising. B) Monitor the market for a fair trading. C) Issue loans and advances. D) Create investment opportunities for investors. Show Answer Correct Answer: C) Issue loans and advances. 16. The sale of an investment for less than its purchase price A) Options. B) Capital Gain. C) Maturity. D) Capital Loss. Show Answer Correct Answer: D) Capital Loss. 17. This person or institution collects funds from savers and invests the funds in loans and other financial assets A) Investment objective. B) Secondary market. C) Primary market. D) Financial intermediary. Show Answer Correct Answer: D) Financial intermediary. 18. Nifty is the index of ..... A) BSE. B) NSE. C) OTCEI. D) CSE. Show Answer Correct Answer: B) NSE. 19. How many times a security can be sold in a secondary market? A) Only one time. B) Two time. C) Three times. D) Multiple times. Show Answer Correct Answer: D) Multiple times. 20. The practice of making high-risk investments with borrowed money in hopes of getting a big return A) Equities. B) Speculation. C) Par value. D) Yield. Show Answer Correct Answer: B) Speculation. ← 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