Financial Markets Quiz 5 (20 MCQs)

Quiz Instructions

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1. Stocks or shares that are sold to investors without transacting through financial institutions are classified as

Correct Answer: A) Direct transfer.

2. ..... is a part of money market.

Correct Answer: A) Commercial Bill.

3. Which of the following financial assets might be most likely to have an active secondary market?

Correct Answer: D) Debt issued by the U.S. Treasury.

4. Which one is NOT a method of floatation in Primary market

Correct Answer: A) Issue of Forfeited shares.

5. OTCEI was started on the lines of:

Correct Answer: A) NASDAQ.

6. A forward exchange occurs when two parties agree to exchange currency and execute the deal at some specific date in the future.

Correct Answer: C) Future.

7. ..... formal contract to repay borrowed money and interest on the borrowed money at regular future intervals

Correct Answer: C) Bond.

8. Date when Manila Stock Exchange established

Correct Answer: B) August 12, 1927.

9. WHICH OF THE FOLLOWING STATEMENT IS NOT RELATED TO PRIMARY MARKET

Correct Answer: A) IT HAS A PARTICULAR PLACE.

10. NAME THE INDEX OF OF NATIONAL STOCK EXCHANGE

Correct Answer: C) NIFTY.

11. The market for short term financial assets/ instruments, that are close substitutes of money, is called:

Correct Answer: A) Money Market.

12. In the 1800's, people in mining towns in the West often paid for goods with gold nuggets or gold dust. What was the function of gold?

Correct Answer: B) It was used as a currency.

13. Profits made from investments (by buying low & selling high) are reported as .....

Correct Answer: A) Capital Gains.

14. What is the DOW Jones Industrial Average?

Correct Answer: B) 30 stocks that represent the whole market.

15. This instrument helps to meet the inter-bank fund requirements in the short run

Correct Answer: B) Call money.

16. In which of the companies will you expect a high asset turnover:

Correct Answer: A) Retail companies.

17. A company owned by families or a small number of investors and do not issue stock to the public.

Correct Answer: C) Private company.

18. What is a Central securities depository?

Correct Answer: C) Maintains a centralized register of financial instruments.

19. One of the following is the "Depository" of India:

Correct Answer: C) NSDL.

20. On this day, the exchange will deliver the share or make payment to the other broker

Correct Answer: B) Pay-out day.