This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... stocks that represent ownership shares in corporations A) Equities. B) Capital market. C) Secondary market. D) Futures contract. Show Answer Correct Answer: A) Equities. 2. Which of the following takes advantage of the internal trading? A) All shareholders. B) All Debentureholders. C) People having secret information of the company. D) All the employees. Show Answer Correct Answer: C) People having secret information of the company. 3. Type of markets where the exchange is made with an agreement to buy or sell a particular commodity or security at a predetermined price at a specified time in the future. A) Commodity market. B) Derivatives market. C) Spot market. D) Futures market. Show Answer Correct Answer: D) Futures market. 4. Which of the following is NOT a feature of speculation in financial markets? A) Herding behaviour. B) Asset price bubbles. C) Profit. D) Arbitrage. Show Answer Correct Answer: C) Profit. 5. The FPC is primarily responsible for ..... A) Macro-prudential regulation. B) Micro-prudential regulation. Show Answer Correct Answer: A) Macro-prudential regulation. 6. Commercial bills market is a part of A) Organised money market. B) Unorganised money market. C) Stock market. D) Capital market. E) None of the above. Show Answer Correct Answer: A) Organised money market. 7. A company sells its product on credit. Select the correct statement. A) Such sales will not impact the company's profit and loss statement. B) Such sales will appear as liability in the company's balance sheet. C) Such sales will appear as asset in the company's balance sheet. D) Such sales will impact the cash flow statement. Show Answer Correct Answer: C) Such sales will appear as asset in the company's balance sheet. 8. Exchange markets and over counter markets are considered as two types of A) Floating market. B) Risky market. C) Secondary market. D) Primary market. Show Answer Correct Answer: C) Secondary market. 9. Ram Enterprise wishes to invest ₹ 1, 10, 000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund? A) 6. B) 7. C) 4. D) 2. Show Answer Correct Answer: C) 4. 10. This money market instrument is used by banks to maintain their cash reserve ratio A) Commercial paper. B) Call money. C) Certificate of deposit. D) Commercial bill. Show Answer Correct Answer: B) Call money. 11. Which of the following statements is not true with regard to capital market? A) The funds are raised for a short period of time. B) Both debt and equity funds can be raised. C) It is classified into two types. D) Most trading is through centralized exchange. Show Answer Correct Answer: A) The funds are raised for a short period of time. 12. Which of the Following correctly describes the Securities and Exchange Commission? A) A governmental agency hat regulates federal spending. B) A private commission that exchanges money. C) A federal agency that maintains fair and efficient markets. D) An Interest group that lobbies for regulations in economics. Show Answer Correct Answer: C) A federal agency that maintains fair and efficient markets. 13. Which one of the following types of securities has no priority in a bankruptcy proceeding? A) Convertible bond. B) Senior debt. C) Common stock. D) Preferred stock. E) Straight bond. Show Answer Correct Answer: C) Common stock. 14. While the SEC and FINRA both share the role of protecting investors, key differences between the two include: A) The SEC regulates Security Markets and FINRA regulates Brokers and firms. B) The SEC regulates public corporations only, FINRA deals solely with private companies. C) The SEC is a for-profit organization and FINRA is a non-profit. D) All of the Answers are correct. Show Answer Correct Answer: A) The SEC regulates Security Markets and FINRA regulates Brokers and firms. 15. True or False:Riskier investments can have higher profits, but also greater losses. A) True. B) False. Show Answer Correct Answer: A) True. 16. If the money supply/access to credit was reduced, what would happen to the Price Level? A) Falls/Deflation. B) Rises/Inflation. Show Answer Correct Answer: A) Falls/Deflation. 17. Individuals, corporations, and governments can be either savings deficit units or savings surplus units. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 18. The most important characteristic of money for determining its value is A) Durability. B) How limited it is in supply. C) Homogeneity. D) Portability. Show Answer Correct Answer: B) How limited it is in supply. 19. How many companies are included in the SENSEX of India? A) 30. B) 50. C) 111. D) 25. Show Answer Correct Answer: A) 30. 20. Educating the investor is the ..... function of SEBI. A) Protective. B) Regulatory. C) Both the above. D) Developmental. Show Answer Correct Answer: A) Protective. ← 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