This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The organisations/institutions that provide long term funds. A) Capital market. B) Money market. C) Primary market. D) Secondary market. Show Answer Correct Answer: A) Capital market. 2. Types of market for intermediate or long-term debt and corporate stocks. A) Stock markets. B) Futures markets. C) Derivatives markets. D) Capital markets. Show Answer Correct Answer: D) Capital markets. 3. The process of holding shares in electronic form is known as A) Demutualisation. B) Dematerialisation. C) Speculation. D) None of the above. Show Answer Correct Answer: B) Dematerialisation. 4. Assume that M/s ABC Limited, a retail company is trading at a Price to sales multiple of 4. After a few quarters a news report appear in a leading financial paper- "M/s ABC Limited gets re-rated." The most likely meaning of the headline is: A) The profit of the company has increased. B) The Price to sales multiple of the company exceeds 4. C) The losses that the company was making has decreased. D) The footfall in company's store has increased. Show Answer Correct Answer: B) The Price to sales multiple of the company exceeds 4. 5. ..... a strategy of holding different kinds of investments to minimize risk A) Portfolio diversification. B) Bond. C) Futures contract. D) Risk. Show Answer Correct Answer: A) Portfolio diversification. 6. Which agency regulates and supervises NBFCs? A) Finance Ministry. B) SEBI. C) RBI. D) Respective state government. Show Answer Correct Answer: C) RBI. 7. Money market instrument issued by the RBI on behalf of Central Govt is A) Commercial paper. B) Treasury bill. C) Call money. D) Commercial bill. Show Answer Correct Answer: B) Treasury bill. 8. Financial market facilitates business firms A) To rise funds. B) To recruit workers. C) To make more sales. D) To minimize fund requirement. Show Answer Correct Answer: A) To rise funds. 9. Money market Institutions are ..... A) Investment Houses. B) Mortgage Banks. C) Reserve Bank of India. D) Commercial Banks and Discount Houses. Show Answer Correct Answer: D) Commercial Banks and Discount Houses. 10. Financial markets and institutions A) Involve the movement of huge quantities of money. B) Affect the profit of business. C) Affect the type of goods and services produced in an economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Money can be described as follows, except: A) Medium of exchange. B) Unit of account. C) Store of value. D) Ownership of a company. Show Answer Correct Answer: D) Ownership of a company. 12. Cost of capital can be divided into three item except; A) Cost of debt. B) Cost of preferred share. C) Cost of investment. D) Cost of common share. Show Answer Correct Answer: C) Cost of investment. 13. Additional measures of bank performance include A) ROA and ROE. B) ROA, ROE and the NIM (net interest margin). C) ROE and the NIM. D) None of above. Show Answer Correct Answer: B) ROA, ROE and the NIM (net interest margin). 14. ..... a situation in which the outcome is not certain, but the probabilities can be estimated A) Equities. B) Portfolio diversification. C) Risk. D) Bond. Show Answer Correct Answer: C) Risk. 15. Transactions in common stock occur in the money market, due to the large amount of money involved in such transactions. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 16. If banks do not have sufficient liquidity of what are they at risk? A) Insolvency. B) Bankruptcy. Show Answer Correct Answer: A) Insolvency. 17. A retail company changes its credit policy. Earlier it used to extend credit for 120 days, however now it extends it for 90 days. The most likely impact on the company's balance sheet will be: A) Trade receivables will increase. B) Trade payables will increase. C) Cash conversion cycle will increase. D) Cash conversion cycle will decrease. Show Answer Correct Answer: D) Cash conversion cycle will decrease. 18. Capital market consist of A) Industrial securities market. B) Government securities market. C) Long term loan market. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. Primary market deals with selling of securities for the first time through the following method A) Book building. B) Investor issue. C) Bonus declaration method. D) Employee stock issue. Show Answer Correct Answer: A) Book building. 20. Which of the following reasons is not responsible for the ups and downs in the Sensex? A) Rain. B) Monetary Policy. C) Political instability. D) None of the above. Show Answer Correct Answer: D) None of the above. ← 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