Financial Markets Quiz 9 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Maturity period to call money is

Correct Answer: A) 1 to 15 days.

2. The money an investor receives above and beyond the sum of money initially invested.

Correct Answer: C) Return.

3. A lack of regulation in the financial sector also led to market failure and other problems which contributed to instability:

Correct Answer: A) Yes, I understand this from the notes.

4. Which is the largest investment bank in the world by revenue? (2016)

Correct Answer: C) JP Morgan.

5. The organisations/institutions that provide long term funds.

Correct Answer: A) Capital market.

6. Organizations or businesses that provide services related to money. (like a bank or a credit union)

Correct Answer: B) Financial institution.

7. It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.

Correct Answer: C) Contract Note.

8. SEBI protects the interest of

Correct Answer: A) Investor.

9. It is a negotiated sale involving a specific buyer.

Correct Answer: B) Private placement.

10. There are two types of financial regulation:i) Microprudential regulation; and ii) Macroprudential regulation

Correct Answer: A) Yes, I understand this from the notes.

11. Which of the following is an example of money as a unit of account?

Correct Answer: D) Checking the price of a camera at several stores before buying it at the lowest price.

12. A collection of financial assets is often called

Correct Answer: C) A portfolio.

13. Which of the following falls in the Category of Zero Coupon Bond?

Correct Answer: A) Treasury Bill.

14. Regulation usually focuses on systemic risks-identifying systemic risks in the markets and finding ways to manage or remove them.

Correct Answer: A) Yes, I understand this from the notes.

15. These are markets in which users of funds (e.g. corporations) raise funds through new issues of financial instruments, such as stocks and bonds.

Correct Answer: A) Primary Markets.

16. A type of market where traders can trade on an ongoing basis when the market is open.

Correct Answer: B) Continuous market.

17. If a firm requires to two crores for six months time to keep the stock of raw material, it should approach(a) (b) (c) (d)

Correct Answer: A) Money market.

18. What is it called when you loss money on stocks you have purchased.

Correct Answer: B) Capital loss.

19. Which of the following performs the functions of mobilisation of saving andtransfer them to more productive uses?

Correct Answer: C) Financial Market.

20. The value of a currency in terms of another is not known directly is called as .....

Correct Answer: A) Cross rate.