This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Currency deposited by national governments or corporations, outside of its home market. For example, it can be currency held in banks located outside of the country which issues the currency A) Eurocurrency. B) US Currency. C) Import Currency. D) Eurobond. Show Answer Correct Answer: A) Eurocurrency. 2. Method of raising funds by issuing new securities to stock brokers is A) Offer for sale. B) IPO. C) Both of the above. D) None. Show Answer Correct Answer: A) Offer for sale. 3. The oldest stock exchange in India is A) Delhi Stock Exchange. B) National Stock Exchange. C) Bombay Stock Exchange. D) Madras Stock Exchange. Show Answer Correct Answer: C) Bombay Stock Exchange. 4. What is the main function of financial market? A) Price Determination. B) Channeling funds. C) Provides Liquidity to Financial Assets. D) None of above. Show Answer Correct Answer: B) Channeling funds. 5. Finance companies raise funds in the money market by selling A) Commercial paper. B) Federal funds. C) Commodity. D) Eurodollars. Show Answer Correct Answer: A) Commercial paper. 6. The allocative function of financial market facilitates A) Price discovery. B) Liquidity to financial assets. C) Most productive investment opportunity. D) None. Show Answer Correct Answer: C) Most productive investment opportunity. 7. Which of the following is included in the financial assets? A) Shares. B) Debentures. C) Treasury bill. D) All the above. Show Answer Correct Answer: D) All the above. 8. Who is a market maker: A) Only works on quote-driven markets. B) Has a complete overview of the demand and the supply of a stock. C) Makes the Market. D) Provides bid and ask prices for a certain stock. Show Answer Correct Answer: D) Provides bid and ask prices for a certain stock. 9. Which Financial Market has lowest risk? A) Derivatives market. B) Money market. C) Commodities market. D) Foreign exchange market. Show Answer Correct Answer: B) Money market. 10. A company can raise capital through the primary market in the form of A) Equity shares. B) Preference shares. C) Debentures. D) All of the above. Show Answer Correct Answer: C) Debentures. 11. What is the MAIN reason to put money into a saving's account? A) High interest rate of return. B) Liquidity. C) Making a safe long-term investment. D) Low to moderate risk. Show Answer Correct Answer: B) Liquidity. 12. Banks (as financial intermediaries) bring together ..... A) Savers and spenders. B) Savers and borrowers. C) Consumers and producers. D) Cheeseburgers and fries. Show Answer Correct Answer: B) Savers and borrowers. 13. Money market-borrow on ..... term basis A) Short. B) Medium. C) Long. D) Infinity. Show Answer Correct Answer: A) Short. 14. An index fund is: A) A fund which is active. B) A fund which can be traded in an exchange. C) A fund which is passive. D) A fund with higher fees. Show Answer Correct Answer: C) A fund which is passive. 15. If Nepal Rastra Bank increase the CRR rate then ..... A) Liquidity will increase in the market. B) Liquidity will decrease in the market. C) Liquidity will not be changed in the market. D) None of the above. Show Answer Correct Answer: B) Liquidity will decrease in the market. 16. What is the main difference between Treasury bonds, Treasury notes, and Treasury bills? A) The amount of time for maturity. B) The interest rate. C) The minimum purchase requirement. D) The method of sale. Show Answer Correct Answer: A) The amount of time for maturity. 17. What is the main advantage of a mutual fund for an investor? A) Its price doesn't change much. B) It offers diversity in investment. C) It has a set maturity date. D) It can be sold at a profit. Show Answer Correct Answer: B) It offers diversity in investment. 18. WHICH OF THE FOLLOWING IS NOT THE INSTRUMENT OF MONEY MARKET A) COMMERCIAL PAPERS. B) CERTIFICATE OF DEPOSITS. C) BONDS. D) T-BILLS. Show Answer Correct Answer: C) BONDS. 19. The time and money spent in carrying out financial transactions are called: A) Liquidity Services. B) Transaction costs. C) Economies of scale. D) None of above. Show Answer Correct Answer: B) Transaction costs. 20. Which of the following is NOT an example of M1 money? A) Currency. B) Mutual fund. C) Travelers' checks. D) A checking account. Show Answer Correct Answer: B) Mutual fund. ← 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