This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Sarbanes Oxley Act of 2002 mandates: A) Banks to offer competitive rates to borrowers. B) Corporate officers must personally certify financial statements in writing. C) Brokers must be licensed and certified. D) None of the Options are Correct. Show Answer Correct Answer: B) Corporate officers must personally certify financial statements in writing. 2. Which market directly contributes for capital formation and increase in capital offirms? A) Primary market. B) Secondary market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Primary market. 3. The main difference between a stock split and bonus share is: A) In stock split the face value of the company remained unchanged while in case of bonus share the face value decreases. B) In stock bonus the face value of the company remained unchanged while in case of stock split the face value decreases. C) In case of stock split the free float of the company increases while in case of bonus share the free float decreases. D) In case of stock bonus, the free float of the company increases while in case of share split the free float decreases. Show Answer Correct Answer: B) In stock bonus the face value of the company remained unchanged while in case of stock split the face value decreases. 4. Which of the following is not capital market instruments? A) Commercial paper. B) Stocks. C) Corporate bonds. D) Mortgage. Show Answer Correct Answer: A) Commercial paper. 5. If banks do not have sufficient capital of what are they at risk if the value of their assets fall? A) Insolvency. B) Bankruptcy. Show Answer Correct Answer: B) Bankruptcy. 6. Call money or call loans are ..... A) Fixed. B) Liquid. C) Costly. D) Cheap. Show Answer Correct Answer: B) Liquid. 7. Indian Financial System is a link between A) Borrowers and seekers of fund. B) Bank and agent. C) Businessman and RBI. D) Insurance and banking. Show Answer Correct Answer: A) Borrowers and seekers of fund. 8. "Money Laundering" is the process of: A) Ensuring income is earned legally. B) Funneling "dirty" money through transactions to make it appear legitimate. C) Converting Crypto to US Currency. D) Verifying all taxes have been paid before distributing dividends. Show Answer Correct Answer: B) Funneling "dirty" money through transactions to make it appear legitimate. 9. Financial market..... financial assets. A) Creates. B) Exchange. C) Creates and Exchange. D) None of the above. Show Answer Correct Answer: C) Creates and Exchange. 10. What is the index of 30 representative stocks used to monitor changes in the overall stock market A) New York Stock Exchange. B) Euronext. C) Bear Market. D) Dow Jones Industrial Averages. Show Answer Correct Answer: D) Dow Jones Industrial Averages. 11. The SEC was created in response to what event? A) President Roosevelt's New Deal. B) Creation of the New York Stock Exchange. C) The Stock Market Crash of 1929. D) WWI. Show Answer Correct Answer: C) The Stock Market Crash of 1929. 12. What is the primary role of the Securities Exchange commission? A) To ensure the money supply. B) To protect investors. C) To establish interest rates. D) To manage the national economy. Show Answer Correct Answer: B) To protect investors. 13. An ideal Capital market is one A) Where finance is available at higher cost. B) Must provide insufficient information to investors. C) Where market operations are inconsistent. D) Which facilitates economic growth. Show Answer Correct Answer: D) Which facilitates economic growth. 14. All the following companies can be categorized as having a high operating leverage EXCEPT: A) Asset Management Companies. B) Brokerage Firms. C) Registrar and Transfer Agents. D) FMCG. Show Answer Correct Answer: D) FMCG. 15. Below are all types of return except: A) Actual return. B) Expected return. C) Possible return. D) Required return. Show Answer Correct Answer: C) Possible return. 16. PK Enterprises Limited has sold an entire lot of 5, 00, 000 equity shares @ ₹ 9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹ 11 per share. Identify the method of floatation being described in the given lines. A) Private placement. B) Offer through prospectus. C) Offer for sale. D) Rights issue. Show Answer Correct Answer: C) Offer for sale. 17. Liquidity can best be described as ..... A) Long term assets. B) The speed and ease with which an asset can be converted to cash without losing value. C) Any asset with value. D) Cash, bank deposits and shares. Show Answer Correct Answer: B) The speed and ease with which an asset can be converted to cash without losing value. 18. In primary markets, first time issued shares to be publicly traded, in stock markets is considered as A) Traded offering. B) Public markets. C) Issuance offering. D) Initial public offering. Show Answer Correct Answer: D) Initial public offering. 19. This term refers to facilities through which debt and equity are raised A) Money market. B) Capital market. C) Treasury market. D) Call market. Show Answer Correct Answer: B) Capital market. 20. What kind of fund collects and invests income for later payments to eligible recipients? A) Pension fund. B) Credit union fund. C) Insurance fund. D) Mutual fund. Show Answer Correct Answer: A) Pension fund. ← 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