This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which committee of the Bank of England is responsible for protecting consumers from unfair practices? A) Financial Policy Committee. B) Prudential Regulatory Authority. C) Financial Conduct Authority. D) None of above. Show Answer Correct Answer: C) Financial Conduct Authority. 2. Money market deals in ..... securities. A) Short-term. B) Long-term. C) Short-term and long-term. D) Mid-term. Show Answer Correct Answer: A) Short-term. 3. Assuming an efficient market with no surprise information, the most likely impact on the share price of a company after paying dividend will be: A) The price of the share must increase by the same amount of dividend paid. B) The price of the share must remain unchanged. C) The price of the share must decrease by the same amount of dividend paid. D) The price must increase irrespective of the divided paid or not. Show Answer Correct Answer: C) The price of the share must decrease by the same amount of dividend paid. 4. Sensex is dependent on..... companies. A) 30. B) 50. C) 100. D) 500. Show Answer Correct Answer: A) 30. 5. What is the equation for the Quantity Theory of Money? A) QV=PM. B) MV=PT. C) XM=PY. D) XY=ZY. Show Answer Correct Answer: B) MV=PT. 6. Stock Exchange works as a mechanism for valuation of securities through the forces ofdemand and supply. Identify the related function of performed by the stock exchanges. A) Providing liquidity and marketability to existing securities. B) Safety of transaction. C) Pricing of security. D) Spreading of equity cult. Show Answer Correct Answer: C) Pricing of security. 7. Unorganized banking sector consist of A) Commercial bank. B) Indigenous bank. C) LIC. D) RRB. Show Answer Correct Answer: B) Indigenous bank. 8. The Bank Secrecy Act requires financial institutions to report suspicious cash transactions over what amount? A) $ 50, 000. B) $ 10, 000. C) $ 100, 000. D) $ 5, 000. Show Answer Correct Answer: B) $ 10, 000. 9. A company operates in a sector characterized with high operating leverage. Which statement describes the sector most appropriately: A) Revenue will increase much faster than expenses. B) Profit will increase much faster than expenses. C) A large part of increase in revenue will translate into increase in profit. D) None of the above. Show Answer Correct Answer: C) A large part of increase in revenue will translate into increase in profit. 10. Which two investments are at opposite ends of the risk spectrum? A) Treasury notes and futures. B) Savings bonds and Treasury notes. C) Equities and futures. D) Equities and futures. Show Answer Correct Answer: A) Treasury notes and futures. 11. The safest instrument of money market is A) Call Money. B) Commercial Paper. C) Treasury Bill. D) Commercial Bill. Show Answer Correct Answer: C) Treasury Bill. 12. Each purchase occurring in the secondary markets increases the total stock of financial assets that exist in the economy. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 13. Participants in the capital market includes A) Individuals. B) Corporate. C) Financial Institutions. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. What is the name of the fee paid for an insurance policy? A) Interest. B) Pension. C) Contribution. D) Premium. Show Answer Correct Answer: D) Premium. 15. Unsecured money market instrument A) Treasury bill. B) Commercial bill market. C) Certificate of deposit. D) Commercial paper. Show Answer Correct Answer: D) Commercial paper. 16. If a firm requires to two crores for six months time to keep the stock of raw material, it should approach(a) (b) (c) (d) A) Money market. B) Capital market. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Money market. 17. Financial services includes A) Call money market. B) Bill market. C) Leasing. D) None of the above. Show Answer Correct Answer: C) Leasing. 18. If you can make abnormal profits (after costs and risks) by investing in stocks using fundamental analysis, it means that the market is ..... A) Semi-strong form inefficient. B) Weak form inefficient. C) Semi-strong form efficient. D) Weak form efficient. Show Answer Correct Answer: A) Semi-strong form inefficient. 19. Common stockholders are also known as residual claimants. A) True. B) False. Show Answer Correct Answer: A) True. 20. Which among the following is NOT considered a financial institution? A) Remittance centers. B) Credit cooperatives. C) Foreign exchange units. D) Revolving funds associations. Show Answer Correct Answer: D) Revolving funds associations. ← 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 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