This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... a market in which financial capital is loaned and/or borrowed for at least one year A) Primary market. B) Secondary market. C) Financial system. D) Capital market. Show Answer Correct Answer: D) Capital market. 2. The following are barriers to global integration EXCEPT A) Excessive cost of executing international transactions. B) Different accounting regulation. C) Lack of information about foreign companies. D) Price changes in response to supply and demand. Show Answer Correct Answer: D) Price changes in response to supply and demand. 3. Through which method of floatation companies allots securities to institutional investors and selected individuals. A) Offer for sale. B) Right issue. C) E-IPO's. D) Private Placement. Show Answer Correct Answer: D) Private Placement. 4. With reference to the capital markets of India, pick the incorrect statement from the following: A) Capital markets make possible to generate foreign capital. B) Capital Markets provide funds for projects in backward areas. C) The existence of a stock exchange enables companies to raise permanent capital. D) Intermediaries include various entities such as MCX-SX, BSE, NSE, other regional stock exchanges. Show Answer Correct Answer: D) Intermediaries include various entities such as MCX-SX, BSE, NSE, other regional stock exchanges. 5. Financial Market is classified into A) Organized and unorganized market. B) Regulatory and non-regulatory market. C) Reformatory and non-reformatory market. D) Controlled and uncontrolled Market. Show Answer Correct Answer: A) Organized and unorganized market. 6. How many times a security can be sold in a secondary market? A) Only one Time. B) Two time. C) Three Times. D) Multiple Times. Show Answer Correct Answer: D) Multiple Times. 7. 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. 8. Type of funds which is managed by an institution from shareholders, pools them to be invested in securities A) Mutual fund. B) Pension fund. C) Insurance fund. D) Exchange-traded fund. Show Answer Correct Answer: A) Mutual fund. 9. What type of instruments are traded in a Money Market? A) Call money. B) Treasury bills. C) Commercial bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Which product is most likely to have a higher fee: A) Regular mutual fund. B) Direct mutual fund. C) Index fund. D) Passive fund. Show Answer Correct Answer: A) Regular mutual fund. 11. Types of Speculators A) Bull. B) Stag. C) Lame Duck. D) Bear. E) All of the above. Show Answer Correct Answer: E) All of the above. 12. A company posted an EPS of ₹ 20 in the financial year 2021-22. The company's EPS is expected to increase by 20% next year, if the company's stock is currently trading at ₹ 100, the forward PE of the company is: A) 5. B) 4.17. C) 6. D) 6.17. Show Answer Correct Answer: B) 4.17. 13. Central banks support financial institutions and governments bailouts failing firms, which leads to ..... A) Dukes of Hazzard. B) Moral hazard. C) Laziness. D) Moral practices. Show Answer Correct Answer: B) Moral hazard. 14. The money invested in the call money market provides high liquidity with ..... A) Low Profitability. B) High Profitability. C) Limited Profitability. D) Medium Profitability. Show Answer Correct Answer: A) Low Profitability. 15. Capital market is a market for A) Short Term Finance. B) Medium Term Finance. C) Long Term Fiance. D) Both Short Term and Medium Term Fiance. Show Answer Correct Answer: C) Long Term Fiance. 16. James Beck is considering purchasing ABC Berhad stocks. What price should he be willing to pay for it (in RM) if the company is expected to pay RM2 dividend in one year and the dividends to grow at 5 percent indefinitely? James requires a 12 percent return for this investment. A) 28.57. B) 29.33. C) 31.25. D) 38.95. Show Answer Correct Answer: A) 28.57. 17. Direct exchange of goods/services for other goods/services is called: A) Liquidity. B) Money. C) Barter. D) Haggling. Show Answer Correct Answer: C) Barter. 18. What are the 2 tasks of the SEC? A) 1. Ensure companies make truthful statements and 2. treat investors honestly. B) 1. Ensure companies selling securities dont own stock in them or 2. work for them. C) 1. Ensure companies do not cheat on their taxes and 2. report all income. D) 1. Ensure companies follow standard accounting practice and 2. expense procedures. Show Answer Correct Answer: A) 1. Ensure companies make truthful statements and 2. treat investors honestly. 19. Some investment banks are so huge they pose systemic risks to the global financial system. A systemic risk refers to ..... A) The possibility that an event at a financial institution could trigger severe instability or collapse an entire industry or economy. B) The possibility that an event at a financial institution could allow for greater growth of an entire industry or economy. C) The possibility that an event at a financial institution could help increase the value of assets for investors. D) A situation where an economic agent takes excessive risks in the knowledge that they are insured or the government will protect them from any damages which arise as a result of taking those risks. Show Answer Correct Answer: A) The possibility that an event at a financial institution could trigger severe instability or collapse an entire industry or economy. 20. The following statements are true regarding commercial banks EXCEPT A) Are nonprofit organizations. B) The most dominant depository institution. C) Offer a wide variety of deposit accounts. D) Serve both the public and the private sector. Show Answer Correct Answer: A) Are nonprofit organizations. ← PreviousNext →Related QuizzesMarkets And Institutions 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 6Financial Markets And Institutions Quiz 7Financial Markets And Institutions Quiz 8Financial Markets And Institutions Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books