This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money market deals with ..... instruments. A) Long term. B) Medium term. C) Short term. D) All of the above. Show Answer Correct Answer: C) Short term. 2. Capital market do not provide A) Short term Funds. B) Debenture Funds. C) Equity Funds. D) Long term Funds. Show Answer Correct Answer: A) Short term Funds. 3. Sarbanes Oxley was instituted as a direct result of: A) The corporate scandals of Enron, Worldcom, Tyco and others. B) The Recession of the early 2000's. C) The terrorist attacks Sept 11, 2001. D) Democrats taking over both houses of Congress in 2002. Show Answer Correct Answer: A) The corporate scandals of Enron, Worldcom, Tyco and others. 4. Who controls the capital market of India? A) SEBI. B) RBI. C) IRDA. D) NABARD. Show Answer Correct Answer: A) SEBI. 5. Primary assets are A) Bill. B) Bank deposit. C) Mutual fund. D) None of the above. Show Answer Correct Answer: A) Bill. 6. Stocks or shares that are sold to investors without transacting through financial institutions are classified as A) Direct transfer. B) Indirect transfer. C) Global transfer. D) Pension transfer. Show Answer Correct Answer: A) Direct transfer. 7. True or False:Stock values change daily. A) True. B) False. Show Answer Correct Answer: A) True. 8. The short term financial instruments traded in money market is commonly called A) Call Money. B) Certificate of deposits. C) Commercial paper. D) Trade bills. Show Answer Correct Answer: C) Commercial paper. 9. Securities Fraud, also known as Stock or Investment Fraud, involves: A) "Ponzi" or "Pump and Dump" Schemes targeted at investors. B) Insider Trading. C) Misrepresenting information investors use to make decisions. D) All Options are Correct. Show Answer Correct Answer: D) All Options are Correct. 10. Which of the following derivatives is classified as a contingent claim? A) Futures contracts. B) Interest rate swaps. C) Credit default swaps. D) None of above. Show Answer Correct Answer: C) Credit default swaps. 11. Which among the following is NOT a valid stock exchange? A) Nikkei 225. B) S & P. C) KOSPO. D) HOPE. Show Answer Correct Answer: C) KOSPO. 12. What theory argues that stocks are always priced about right and bargains are hard to find because they are so closely watched by so many investors? A) Efficient Market Hypothesis. B) Theory of Demand. C) Theory of Bull Markets. D) Wall Street Hypothesis. Show Answer Correct Answer: A) Efficient Market Hypothesis. 13. What does "SEC" stand for? A) Southeastern Conference. B) Securities and Energy Commission. C) Securities and Energy Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 14. What are these? NYSE-NASDAQ A) Stocks. B) Markets. C) Stock exchanges. D) Securities and exchanges. Show Answer Correct Answer: C) Stock exchanges. 15. For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and public ownership. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. An index fund is: A) A fund which is active. B) A fund which can be traded in an exchange. C) A fund which is passive. D) A fund with higher fees. Show Answer Correct Answer: C) A fund which is passive. 17. Type of bonds that pay coupon interest are classified as A) Forward bond. B) Payment bonds. C) Coupon bond. D) Interest bonds. Show Answer Correct Answer: C) Coupon bond. 18. A nonprofit service that accepts deposits, makes loans, and provides other financial services is known as a A) Bank. B) Credit Union. C) Stockbroker. D) Life Insurance Company. Show Answer Correct Answer: B) Credit Union. 19. The physical place where buyers and sellers meet to trade stocks is known as the A) Brokerage desk. B) Stock or securities exchange. C) Trading floor. D) Equities trader. Show Answer Correct Answer: B) Stock or securities exchange. 20. A treasury bill is an instrument of: A) Dividend. B) Short term debt. C) Long term debt Interest. D) None of above. Show Answer Correct Answer: B) Short term debt. ← 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 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