This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following TERM does not belong to the stock exchange? A) NAV. B) KPO. C) IPO. D) NSE. Show Answer Correct Answer: B) KPO. 2. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs A) Immediately. B) In the future. C) Uncertain. D) After one month. Show Answer Correct Answer: A) Immediately. 3. Which of the following statements about risk is TRUE? A) Risk is about how uncertain your returns could be. B) Risk is about how much money you can lose. C) A risky asset is more likely to deliver higher return than a less risky asset. D) If an asset's risk increases, its price will also increase. Show Answer Correct Answer: A) Risk is about how uncertain your returns could be. 4. An alternative method for estimating a stock price is to multiply the firm's earnings per share times the industry price earnings ratio. However, this ratio cannot be adjusted up or down to reflect specific characteristics of the firm. A) True. B) False. Show Answer Correct Answer: B) False. 5. Which of the following markets deal in securirties with maturity of less than one year? A) Primary market. B) Secondary market. C) Money market. D) Capital market. Show Answer Correct Answer: C) Money market. 6. Which of the following assets is best desribed as, "near money" ? A) Money in a savings account. B) A £50 note. C) A share in BP. D) A flat in central London. Show Answer Correct Answer: B) A £50 note. 7. The SEC is a government agency that oversees FINRA A) True. B) False. Show Answer Correct Answer: A) True. 8. ..... a market in which only the original issuer can sell or repurchase a financial asset A) Financial system. B) Primary market. C) Capital market. D) Secondary market. Show Answer Correct Answer: B) Primary market. 9. Kate could not attend the last shareholders meeting and thus she granted the authority to vote on her behalf to the managers of the firm. Which one of the following terms is used to describe the method by which Kate's shares were voted? A) Straight. B) Cumulative. C) Consent-form. D) Proxy. E) In absentia. Show Answer Correct Answer: D) Proxy. 10. Funds that collect and invest income until payments are made to eligible (retired) people are known as A) Mutual funds. B) Pension funds. C) Bear markets. D) Bull markets. Show Answer Correct Answer: B) Pension funds. 11. Why, in particular, is liquidity insurance necessary? A) Banks borrow long term but lend short term. B) Banks are not good at their job. C) Banks borrow short term but lend long term. D) Banks never make a profit from lending. Show Answer Correct Answer: C) Banks borrow short term but lend long term. 12. Clearing and settlement operations of NSE are carried out by: A) CDSL. B) SBI. C) Sdal. D) NSCCL. Show Answer Correct Answer: D) NSCCL. 13. The short term financial market is called the A) Forex market. B) The stock market. C) The money market. D) The wholesale market. Show Answer Correct Answer: C) The money market. 14. Purification of investment income received means that certain proportion of the dividend, which corresponds to the proportion of interest earned by the company, must be given to charity. A) True. B) False. Show Answer Correct Answer: A) True. 15. Identify the instrument of Money Market:It is used by commercial and development and financial Institutions during the period when the deposit growth of a bank is slow but the demand for credit is high A) Commercial Bills. B) Call Money. C) Certificate of deposits. D) Commercial Papers. Show Answer Correct Answer: C) Certificate of deposits. 16. Non marketable assets are A) Government security. B) Equity. C) Bank deposit. D) Bearer debenture. Show Answer Correct Answer: C) Bank deposit. 17. Primary market is associated with ..... issues. A) Old. B) New. C) Old and New. D) Very Old. Show Answer Correct Answer: B) New. 18. Which of the following cannot accept Demand Deposits? A) Commercial Banks. B) Foreign Banks. C) Local area Banks. D) NBFC. Show Answer Correct Answer: D) NBFC. 19. Venture capitalists typically provide funds to high-risk startup companies but take no active role in their management. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. Which of the following falls in the Category of Zero Coupon Bond? A) Treasury Bill. B) Commercial Paper. C) Certificate of Deposit. D) Commercial Bill. Show Answer Correct Answer: A) Treasury Bill. ← PreviousNext →Related QuizzesMarkets And Institutions QuizzesFinancial Markets And Institutions Quiz 1Financial Markets And Institutions Quiz 2Financial 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