This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Type of financial security which have linked payoff to another issued security is classified as A) Linked security. B) Derivative security. C) Payable security. D) Non-issuing security. Show Answer Correct Answer: B) Derivative security. 2. What is defined as the degree to which an asset can be converted into cash? A) Credit. B) Debt. C) Liquidity. D) Swap rate. Show Answer Correct Answer: C) Liquidity. 3. Money market deals with ..... instruments. A) Long term. B) Medium term. C) Short term. D) All of the above. Show Answer Correct Answer: C) Short term. 4. It is an organized secondary market where securities like shares, debentures of public companies, government securities and bonds A) Stock Exchange. B) Stock market. C) PSE. D) NYSE. Show Answer Correct Answer: A) Stock Exchange. 5. When the value of the British pound changes from $ 1.50 to $ 1.25, the pound has ..... and the dollar has ..... A) Appreciated; appreciated. B) Depreciated; appreciated. C) Appreciated; depreciated. D) Depreciated; depreciated. Show Answer Correct Answer: B) Depreciated; appreciated. 6. Money market deals in ..... securities. A) Short-term. B) Long-term. C) Short-term and long-term. D) Mid-term. Show Answer Correct Answer: A) Short-term. 7. Which tends to be riskier, stocks or bonds? A) Stocks. B) Bonds. C) Neither are risky. D) Both are equally risky. Show Answer Correct Answer: A) Stocks. 8. Money market securities have all the following characteristics except they are not A) Short term. B) Money. C) Low risk. D) Very liquid. Show Answer Correct Answer: B) Money. 9. ..... a market in which financial capital is loaned and/or borrowed for at least one year A) Primary market. B) Secondary market. C) Financial system. D) Capital market. Show Answer Correct Answer: D) Capital market. 10. A company that accepts deposits, makes loans, pays interest to depositors, and pays dividends to its owners. A) Pension fund. B) Savings & Loan Association. C) Commercial banks. D) Savings institution. Show Answer Correct Answer: C) Commercial banks. 11. What is the present value of investment today in order to generate an annuity of $ 1, 000 per year in 4 years, with the first payment due today, at an interest rate of 12%? A) $ 3, 037.35. B) $ 3, 401.83. C) $ 3, 401.83. D) $ 4, 604.78. Show Answer Correct Answer: B) $ 3, 401.83. 12. In the UK, the Bank of England and the Financial Conduct Authority (FCA) are responsible for regulating 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. 13. A market that gives companies a way to raise needed capital and gives investors an opportunity for gain by allowing those companies' stock shares to be traded A) Equity Market. B) Debt Market. C) Auction Market. D) Over-the-counter Market. Show Answer Correct Answer: A) Equity Market. 14. When it comes to investments in general, the higher the ..... the higher the potential reward. A) Security. B) Cost. C) Risk. D) Damage. Show Answer Correct Answer: C) Risk. 15. WHAT IS THE FULL FORM OF ' DE-MAT ACCOUNT A) DEMATURITY ACCOUNT. B) DE-MONETARY ACCOUNT. C) DEMATERIALISED ACCOUNT. D) NONE OF THE ABOVE. Show Answer Correct Answer: C) DEMATERIALISED ACCOUNT. 16. Funds that collect and invest income until payments are made to eligible (retired) people are known as A) Mutual funds. B) Pension funds. C) Bear markets. D) Bull markets. Show Answer Correct Answer: B) Pension funds. 17. Which of the following is NOT a soft commodity? A) Feeder cattle. B) Corn. C) Copper. D) Ethanol. Show Answer Correct Answer: C) Copper. 18. Which is not a function of the Foreign Exchange Market A) Convert the Currency. B) Law implication. C) Provide Insurance. D) None of above. Show Answer Correct Answer: B) Law implication. 19. The Jamaica meeting revised the IMF's Articles of Agreement include ..... A) Gold was declared as a reserve asset. B) Fixed rates were declared acceptable. C) Floating rates were declared acceptable. D) None of above. Show Answer Correct Answer: C) Floating rates were declared acceptable. 20. A capital market is ideal when: A) Financial institutions are sufficiently developed. B) Finance is available at a reasonable cost. C) Capital is most productively allocated. D) All of these. Show Answer Correct Answer: D) All of these. ← PreviousNext →Related QuizzesFinance QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 5Financial Markets Quiz 6Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9Financial Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books