Financial Markets And Institutions Quiz 6 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. The length of time you need to work at a company before you can take the employer's matching contribution with you is known as

Correct Answer: D) Vesting.

2. Which is not a regulatory function of SEBI?

Correct Answer: B) Controlling Insider Trading.

3. In a private placement, the securities are offered and sold to a limited number of investors.

Correct Answer: A) TRUE.

4. What is the term describing an overall decrease in stock prices?

Correct Answer: D) A bear market.

5. What is the main advantage of a mutual fund for an investor?

Correct Answer: B) It offers diversity in investment.

6. The minimum period till which a debt instrument must be retained in order to qualify as Long Term is:

Correct Answer: C) 3 year.

7. Instruments traded in Capital Markets are .....

Correct Answer: D) All of these.

8. The primary market is also called

Correct Answer: A) New issue market.

9. Hedging and speculative investments are the key characteristics of

Correct Answer: D) Both (a) and (b).

10. The main characteristics of money market transactions which enables it to have active secondary market are:

Correct Answer: D) All above.

11. Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?

Correct Answer: A) A. Secondary market.

12. Kimchi Premium is:

Correct Answer: B) Premium in cryptocurrency trading in South Korean exchange vs Rest of the World.

13. Bonds and shares are traded in

Correct Answer: B) Capital markets.

14. Treasury bills are also known as:

Correct Answer: D) Zero-Coupon Bonds.

15. A bonus share announced by a company:

Correct Answer: C) Decreases the EPS.

16. Which of the following are the instruments of money market?

Correct Answer: D) All of the above.

17. Primary and secondary markets:

Correct Answer: B) Complement each other.

18. Secondary market deals with the ..... of existing securities.

Correct Answer: C) Purchase-sale.

19. The market for buying and selling of commercial Bills of Exchange is known as a .....

Correct Answer: C) Commercial Bill Market.

20. Primary market is a market where securities are traded in the

Correct Answer: A) First Time.