This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A major player in the money market is the ..... A) Commercial Bank. B) Reserve Bank of India. C) State Bank of India. D) Central Bank. Show Answer Correct Answer: A) Commercial Bank. 2. SEBI has introduced the Additional Surveillance Mechanism(ASM) for the stocks that were showing extra ordinary price swings. Stocks under this mechanism will be subject to 5% price filters i.e if the stock moves up or down 5%, trading activity in the stock will be halted for the rest of the session. A) Development function. B) Protective function. C) Regulatory function. D) None of the above. Show Answer Correct Answer: C) Regulatory function. 3. FINRA is a Government Organization that oversees the SEC A) True. B) False. Show Answer Correct Answer: B) False. 4. A corporation needing funds sells securities to investors in the secondary market. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. During periods of inflation, money does not function well as ..... A) Standard of Value. B) Medium of Exchange. C) Store of Value. D) Commodity money. Show Answer Correct Answer: C) Store of Value. 6. Funds raised through commercial paper used to meet the floatation cost is known as A) Commercial financing. B) Paper financing. C) Bill of exchange. D) Bridge financing. Show Answer Correct Answer: D) Bridge financing. 7. A capital market is ideal when: A) Financial institutions are sufficiently developed. B) Finance is available at a reasonable cost. C) Capital is most productively allocated. D) All of these. Show Answer Correct Answer: D) All of these. 8. .Dematerialization is the process of holding securities in A) Paper mode. B) Electronic mode. C) Physical form. D) Wallet. Show Answer Correct Answer: B) Electronic mode. 9. The Bank Secrecy Act prevents: A) Criminals from using financial institutions to launder or hide money. B) Banks from charging illegally high interest rates to consumers. C) Financial Institutions from hiding profits to fool shareholders. D) All Answers are Correct. Show Answer Correct Answer: A) Criminals from using financial institutions to launder or hide money. 10. Risk in the Money Market is ..... A) High. B) Market Risk. C) Low Credit and Market Risk. D) Medium Risk. Show Answer Correct Answer: C) Low Credit and Market Risk. 11. Which of the following is NOT a symbol used in stock summaries? A) 52 Weeks. B) % CHG. C) 100s. D) DIV. Show Answer Correct Answer: B) % CHG. 12. The PRA and FCA are responsible for ..... A) Macro-prudential regulation. B) Micro-prudential regulation. Show Answer Correct Answer: B) Micro-prudential regulation. 13. The Securities and Exchange Commission is responsible for ..... A) Bank and Credit Union oversight. B) The free market economy and the money supply. C) National Defense and the budget. D) Regulating security markets and protecting investors. Show Answer Correct Answer: D) Regulating security markets and protecting investors. 14. Stock exchange provides information to educate the people about investing in share markets, which function of stock exchange is referred to here? A) Provides liquidity. B) Pricing of securities. C) Economic growth. D) Spreading equity cult. Show Answer Correct Answer: D) Spreading equity cult. 15. Seasoned equity offerings occur in the secondary market. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 16. It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order. A) PAN number. B) Unique Order Code. C) Contract Note. D) None of the above. Show Answer Correct Answer: C) Contract Note. 17. Government Securities are issued by agencies such as ..... A) Central Government. B) State Government. C) Semi Government Authorities. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. An externality refers to ..... A) A by-product of production or consumption which affects a third party (positively or negatively). B) Pollution, congestion and financial mis-selling. C) A variable over which the government has no control. D) A policy used to correct a market failure. Show Answer Correct Answer: A) A by-product of production or consumption which affects a third party (positively or negatively). 19. The rate of return on a corporate, municipal, or government bond is its ..... A) By value. B) Compensation rate. C) Interest rate. D) Coupon rate. Show Answer Correct Answer: D) Coupon rate. 20. Holders of equity have claims on both income and assets that are secondary to the claims of creditors. A) True. B) False. Show Answer Correct Answer: A) True. ← 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