This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In which of the companies will you expect a high asset turnover: A) Retail companies. B) Infrastructure companies. C) Power companies. D) Heavy machinery companies. Show Answer Correct Answer: A) Retail companies. 2. What does "FINRA" stand for? A) Federal Insured Regulatory Advisory. B) Financial Industry Regulatory Authority. C) Federal Institute for Religious Authority. D) None of the Answers are Correct. Show Answer Correct Answer: B) Financial Industry Regulatory Authority. 3. Which of the following is an advantage of a 401(k) plan? A) Most employers match a portion of your contributions. B) You may withdraw funds at any time without penalty. C) You never pay taxes on your contributions. D) Your contributions are invested in high-return, high-risk fund. Show Answer Correct Answer: A) Most employers match a portion of your contributions. 4. What is the minimum amount that can be invested in Treasury Bills? A) 20000. B) 15000. C) 25000. D) 10000. Show Answer Correct Answer: C) 25000. 5. The minimum period till which an equity investment must be retained in order to qualify as Long Term is: A) 1 year. B) 2 year. C) 3 year. D) 4 year. Show Answer Correct Answer: A) 1 year. 6. A bank pays 7% interest on its 1-year deposit. The Price-to-earning ratio of the FD is: A) 14.28. B) 14.00. C) 7. D) 15.28. Show Answer Correct Answer: A) 14.28. 7. Which of the following is the supply side of finance? A) Financial Institutions. B) Insurance Companies. C) Financial Institutions and Insurance Companies. D) Industry. Show Answer Correct Answer: C) Financial Institutions and Insurance Companies. 8. What is owned by stockholders and operated for profit? A) Commercial Bank. B) Mutual Savings Bank. C) Credit Union. D) Savings and loan association. Show Answer Correct Answer: A) Commercial Bank. 9. Regulator of Secondary market is A) RBI. B) SEBI. C) IRDAI. D) PFRDA. Show Answer Correct Answer: B) SEBI. 10. FINRA regulates: A) Investment Bankers. B) Financial Advisors. C) Stock Brokers. D) All Options are Correct. Show Answer Correct Answer: D) All Options are Correct. 11. The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk is known as A) Diversification. B) Mutual funds. C) Bear markets. D) Pension plans. Show Answer Correct Answer: A) Diversification. 12. Money that has no intrinsic value and is legal tender only because of government decree is called A) Credit. B) Currency. C) Fiat money. D) Representative money. Show Answer Correct Answer: C) Fiat money. 13. Starx Enterprises stock is currently RM26.50 per share. You expect that earnings next year will be RM2 per share and it should pay a RM1 dividend. You find that the P/E multiple is 15 times on average. Determine the stock price you would expect for the company. A) RM30.00. B) RM15.00. C) RM13.50. D) RM35.00. Show Answer Correct Answer: A) RM30.00. 14. Debt Instrument are issued by Corporate Houses are raising short term financial resources from the money market are called ..... A) Treasury Bills. B) Commercial Paper. C) Certificate of Deposit. D) Government Securities. Show Answer Correct Answer: B) Commercial Paper. 15. ..... is a part of capital market. A) Call Money. B) Primary Market. C) Secondary Market. D) Primary and Secondary Market. Show Answer Correct Answer: D) Primary and Secondary Market. 16. Financial contracts whose values are derived from the values of underlying assets is called A) Money market securities. B) Derivative securities. C) Capital market securities. D) Speculating securities. Show Answer Correct Answer: B) Derivative securities. 17. ..... a market in which all financial assets can be sold to someone other than the original issuer A) Primary market. B) Secondary market. C) Financial system. D) Capital market. Show Answer Correct Answer: B) Secondary market. 18. Gong Badak Kitchen recently sold 1, 000 shares of preferred stock. Determine the per share value of the stock if there is a 10 percent required rate of return and a preferred dividend of RM6.75. A) RM67.50. B) RM76.50. C) RM37.50. D) RM45.00. Show Answer Correct Answer: A) RM67.50. 19. A short term debt obligation backed by govt.with a maturity of less than 1 year. A) Treasury Bill. B) Bills of Payment. C) Certificate of Savings. D) Certificate of Ownership. Show Answer Correct Answer: A) Treasury Bill. 20. The term of the Treasury Bill cannot be more than ..... year. A) One. B) Two. C) Five. D) Ten. Show Answer Correct Answer: A) One. ← PreviousNext →Related QuizzesMarkets And Institutions QuizzesFinancial Markets And Institutions Quiz 1Financial 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 9Financial Markets And Institutions Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books