This quiz works best with JavaScript enabled. Home > Finance > Markets > Financial Markets – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All the following securities are traded in money market except A) Treasury bills. B) Repurchase agreements. C) Bankers' acceptances. D) Debentures. Show Answer Correct Answer: D) Debentures. 2. Amount paid to purchase a bond that will be repaid at maturity. A) Par value. B) Yield. C) Capital gain. D) Principal. Show Answer Correct Answer: A) Par value. 3. The stock market is a physical place. A) Yes, it's located in most major cities around the world. B) No, trading is all done online. C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. D) None of above. Show Answer Correct Answer: C) Yes and No, there are physical places where stocks are sold, but they are also sold virtually. 4. Which is the most liquid? A) Checking Account. B) Savings Account. C) Money Market Deposit Account. D) Certificate of Deposit. Show Answer Correct Answer: A) Checking Account. 5. Who issues tax exempt municipal bonds (munis)? A) Local commercial banks. B) Federal and state governments. C) Local credit unions. D) State and local governments. Show Answer Correct Answer: D) State and local governments. 6. An example of a firm's financing decision would be: A) Acquiring a competitive firm. B) Determining how much to pay for a specific asset. C) Paying dividends to shareholders. D) Deciding whether or not to increase the price of its products. Show Answer Correct Answer: C) Paying dividends to shareholders. 7. Financial institutions are also known as ..... A) Financial organisation. B) Financial system. C) Financial intermediaries. D) All of the above. Show Answer Correct Answer: C) Financial intermediaries. 8. It accepts deposits from individuals and organizations that have excess funds and provide loans to those who are in need. This financial institution is called ..... A) Investment banks. B) Commercial banks. C) Credit unions. D) Insurance companies. Show Answer Correct Answer: B) Commercial banks. 9. The most commonly used multiple to value banks: A) Price to Book. B) Price to Earnings. C) EV to EBITDA. D) Price to Sales. Show Answer Correct Answer: A) Price to Book. 10. What is the name of the fee paid for an insurance policy? A) Interest. B) Pension. C) Contribution. D) Premium. Show Answer Correct Answer: D) Premium. 11. Treasury bill is issued by A) (a) development financial institution. B) (b) commercial bank. C) ( c ) selected individuals. D) ( d ) reserve bank of India. Show Answer Correct Answer: D) ( d ) reserve bank of India. 12. If you purchase a right share as per the right on your existing ownership on a company, the transaction is ..... transaction. A) Secondary market. B) Primary market. C) Money market. D) Derivative market. Show Answer Correct Answer: B) Primary market. 13. An money market instruments issued on behalf of Central Government. A) Call Money. B) Treasury Bill. C) Commercial Paper. D) Commercial Bill. Show Answer Correct Answer: B) Treasury Bill. 14. A stock market index ..... A) Shows trends in the market. B) Provides weights to shares. C) Show the volume of trade in market. D) Shows transactions of shares. Show Answer Correct Answer: A) Shows trends in the market. 15. The share of ownership in a corporation that gives holders voting rights and a share of profit. A) Common Stock. B) Preferred Stock. C) Stock index. D) Primary market. Show Answer Correct Answer: A) Common Stock. 16. When the NSEI was established A) 1990. B) 1992. C) 1998. D) 1997. Show Answer Correct Answer: B) 1992. 17. Company X has a beta of of 1.45. The expected risk-free rate of interest is 2.5% and the expected return on the market as a whole is 10%. Using the CAPM, what is ABC's expected return? A) 13.3%. B) 13.375%. C) 18.75%. D) 12.25%. Show Answer Correct Answer: B) 13.375%. 18. The instrument traded in securities market is A) Currency. B) Crude. C) Precious Metal. D) Stock. Show Answer Correct Answer: D) Stock. 19. The markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as A) Financial instruments. B) Financial asset markets. C) Physical asset markets. D) Easy markets. Show Answer Correct Answer: B) Financial asset markets. 20. An example of equity is A) A treasury bond. B) A share of stock. C) A treasury bill. D) A long-term certificate of deposit. Show Answer Correct Answer: B) A share of stock. ← 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 9Financial Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books