This quiz works best with JavaScript enabled. Home > Finance > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Treasury Bills Commands ..... A) Limited Liquidity. B) High Liquidity. C) Medium Liquidity. D) Low Liquidity. Show Answer Correct Answer: B) High Liquidity. 2. The Index of NSE is called ..... A) LISTING. B) INDEX. C) SENSEX. D) NIFTY. Show Answer Correct Answer: D) NIFTY. 3. From Mar 2020 to April 5th 2020 the Indian stock market is entering in A) Bull Phase. B) Bear Phase. Show Answer Correct Answer: B) Bear Phase. 4. Islam banking and finance system offers more ethical and efficient alternative tothe interest-based conventional financial system. A) False. B) True. Show Answer Correct Answer: B) True. 5. The mandatory detail that an investor has to provide to the broker at the time of opening of Demat account is A) Date of birth and address. B) PAN number. C) Residential status. D) Bank account details. Show Answer Correct Answer: B) PAN number. 6. A government bond is A) An IOU from the government. B) A promise from the government to repay a loan. C) A fixed rate loan to the government. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. The instrument used in capital market is A) Equity. B) Commercial paper. C) Treasury Bill. D) All the above. Show Answer Correct Answer: A) Equity. 8. The money market where debt and stocks are traded and maturity period is more than a year is classified as: A) Counter markets. B) Capital Markets. C) Long-term markets. D) Shorter term markets. Show Answer Correct Answer: B) Capital Markets. 9. True or false? Regulation is proactive rather than reactive. A) False. B) True. Show Answer Correct Answer: A) False. 10. When the NSEI was established A) 1998. B) 1997. C) 1990. D) 1992. Show Answer Correct Answer: D) 1992. 11. Money market provides ..... A) Short term Funds. B) Long term Funds. C) Medium term Funds. D) Shares. Show Answer Correct Answer: A) Short term Funds. 12. Term that refers to the total value of all a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. A) Market Diversification. B) Market Volatility. C) Market Capitalization. D) Market Socialization. Show Answer Correct Answer: C) Market Capitalization. 13. Which of the following performs the functions of giving imputes to saving andtransfer them to more productive uses? A) Wholesale Market. B) Financial Institutions. C) Retail Market. D) Financial Market. Show Answer Correct Answer: D) Financial Market. 14. RK Enterprise Limited has sold an entire lot of 6, 00, 000 equity shares @ ₹ 9 each to People's Bank Pvt Ltd ..... The Bank inturn will offer the shares to general public for subscription @ ₹ 11 per share. Identify the method of floatation used here A) Rights issue. B) Offer for sale. C) Private Placement. D) Offer through Prospectus. Show Answer Correct Answer: B) Offer for sale. 15. When stocks overall are rising, the market is called? A) Market capitalization. B) Market diversification. C) A bear market. D) A bull market. Show Answer Correct Answer: D) A bull market. 16. ..... is an agreement to buy or sell at a specific date in the future at a predetermined price A) Equities. B) Futures contract. C) Bond. D) Savings. Show Answer Correct Answer: B) Futures contract. 17. It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year A) Secondary Market. B) Capital Market. C) Money Market. D) Primary Market. Show Answer Correct Answer: C) Money Market. 18. The followings are correct regarding characteristics of money market securities EXCEPT A) Liquid. B) Low degree of risk. C) Low expected return. D) High expected return. Show Answer Correct Answer: D) High expected return. 19. An inefficient market means that stock prices adjust quickly to new public information. A) False. B) True. Show Answer Correct Answer: A) False. 20. The network of savers, investors, financial institutions, and financial assets is known as the A) Stockbroker. B) Financial system. C) Credit Union. D) Equities market. Show Answer Correct Answer: B) Financial system. 21. Information asymmetry refers to a situation ..... A) Where one party in a transaction has no information. B) Where one party in a transaction has less information than another. C) Where one party in a transaction has more information than another. D) None of above. Show Answer Correct Answer: B) Where one party in a transaction has less information than another. 22. SEBI was constituted on A) 30 January 1992. B) 12 April 1988. C) 04 April 1992. D) 21 February 1992. Show Answer Correct Answer: B) 12 April 1988. 23. The government agency responsible for regulating the stock market? A) Federal Reserve Board. B) Federal Trade Commission. C) Interstate Commerce Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 24. The Gramm Leach Bliley Act requires: A) Banks to make a profit. B) Banks to offer credit cards to consumers at whatever rate they want. C) Banks to notify customers of information-sharing practice + allow opt-outs. D) All of the Answers are correct. Show Answer Correct Answer: C) Banks to notify customers of information-sharing practice + allow opt-outs. 25. Stock markets link the ..... units (that have excess funds) with ..... units (that need funds). A) Debit; credit. B) Surplus; deficit. C) Deficit; surplus. D) Credit; debit. Show Answer Correct Answer: B) Surplus; deficit. 26. A series of meetings or presentations in which a company usually executives pitch an IPO to prospective investors A) Preliminaries. B) Registration. C) Roadshow. D) Reporting. Show Answer Correct Answer: C) Roadshow. 27. National stock exchange of India situated at? A) Bangalore. B) Hyderabad. C) Bombay. D) None of these. Show Answer Correct Answer: C) Bombay. 28. Type of stock which is owned by few people, usually the companies' managers and not actively traded. A) Family-owned stock. B) Publicly-held stock. C) Closely held stock. D) Treasury-held stock. Show Answer Correct Answer: C) Closely held stock. 29. Companies that sell shares of a portfolio of securities are known as A) Bear markets. B) Mutual funds. C) Discount brokerage firms. D) Pension plans. Show Answer Correct Answer: B) Mutual funds. 30. Neither income gap analysis nor duration gap analysis are useful tools for telling a financial institution manager the institution's degree of exposure to interest-rate risk. A) True. B) False. Show Answer Correct Answer: B) False. ← PreviousNext →Related QuizzesMarkets And Institutions QuizzesFinance QuizzesFinancial Markets And Institutions Quiz 1Financial Markets And Institutions Quiz 2Financial Markets And Institutions Quiz 3Financial Markets And Institutions Quiz 4Financial Markets And Institutions Quiz 5Financial Markets And Institutions Quiz 7Financial Markets And Institutions Quiz 8Financial Markets And Institutions Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books