This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Full form of e-IPOs A) Electronic internet Public Offer. B) Electronic Initial Private Offer. C) Electronic Initial Prospectus Offer. D) Electronic Initial Public Offer. Show Answer Correct Answer: D) Electronic Initial Public Offer. 2. In financial markets, the period of maturity more than five years of financial instruments is classified as A) Intermediate term. B) Capital term. C) Short-term. D) Long-term. Show Answer Correct Answer: D) Long-term. 3. "Give me $ 1, 000 today and I'll double your money in five years, " offers the investment broker. To the nearest percent, what annual interest rate is being offered? A) 15%. B) 25%. C) 29%. D) 32%. Show Answer Correct Answer: A) 15%. 4. What happens to a company's stock price when the company makes a profit? A) The stock price stays the same. B) The stock price goes in the same direction as the stock market. C) The stock price goes up. D) The stock price goes down. Show Answer Correct Answer: C) The stock price goes up. 5. The Index of NSE is called A) INDEX. B) NIFTY. C) SENSEX. D) LISTING. Show Answer Correct Answer: B) NIFTY. 6. The main difference between ETF and Mutual fund is: A) ETF is active while Mutual fund is a passive instrument. B) Mutual fund can be traded like a stock while ETF can't be traded. C) ETF is traded real time in exchanges while mutual fund is not. D) None of the above. Show Answer Correct Answer: C) ETF is traded real time in exchanges while mutual fund is not. 7. All modern paper currencies are ....., as are most modern coins, the value depends on the strength of the issuing country's economy A) Representative Money. B) Commodity Money. C) Fiat Money. D) Specie. Show Answer Correct Answer: C) Fiat Money. 8. Which of the following is the function of Financial Market? A) Mobilization of savings. B) Price fixation. C) Provide liquidity to financial assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. A method of reducing risks in which the cost/consequences are distributed among several participants A) Risk Sharing. B) Equity Sharing. C) Liquidity. D) Bond Market. Show Answer Correct Answer: A) Risk Sharing. 10. What is a bank position when its has more cash holding? A) Short position. B) Long position. C) Surplus position. D) Square position. Show Answer Correct Answer: B) Long position. 11. A commercial bill is used to ..... A) Finance the working capital requirements. B) Meet the short term debt. C) Meet the long term debt. D) Pay the interest. Show Answer Correct Answer: A) Finance the working capital requirements. 12. A type of market in which each transaction takes place at predetermined time intervals A) Call Market. B) Financial Market. C) Bond Market. D) Continuous Market. Show Answer Correct Answer: A) Call Market. 13. A basic function of money, providing a unit of measurement for defining, recording, and comparing value, example, one dollar signifies not only a one dollar bill A) Unit of account. B) Store of value. C) Medium of exchange. D) Greenbacks. Show Answer Correct Answer: A) Unit of account. 14. Which is term of where buyers and sellers of securities meet in one central location to conduct trades? A) Over the counter. B) Exchange. C) Transactions. D) Barter system. Show Answer Correct Answer: B) Exchange. 15. National stock exchange of India situated at? A) Bangalore. B) Hyderabad. C) Bombay. D) None of these. Show Answer Correct Answer: C) Bombay. 16. The reason a company may issue shares, would be to A) Raise capital. B) Increase number of shareholders. C) Increase number of bondholders. D) Decrease number of shareholders. Show Answer Correct Answer: A) Raise capital. 17. What are stocks? A) Shares of ownership in a corporation. B) Shares of trading in a corporation. C) Bonds with potential to make money. D) Bonds that are traded. Show Answer Correct Answer: A) Shares of ownership in a corporation. 18. What is the initiative taken by asean to incorporate islamic finance and ecosystem A) Increase the number of ibf. B) Green bond. C) Promote awareness. D) None of above. Show Answer Correct Answer: B) Green bond. 19. The safest instrument of money market is A) Call Money. B) Commercial Paper. C) Treasury Bill. D) Commercial Bill. Show Answer Correct Answer: C) Treasury Bill. 20. In Private Placement securities are issued to A) General investors. B) Institutional investors. C) Stock brokers. D) None of above. Show Answer Correct Answer: B) Institutional investors. ← PreviousNext →Related QuizzesFinance QuizzesFinancial Markets Quiz 1Financial Markets Quiz 2Financial Markets Quiz 3Financial Markets Quiz 4Financial Markets Quiz 5Financial Markets Quiz 7Financial Markets Quiz 8Financial Markets Quiz 9Financial Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books