This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following cannot be called as a debt instrument as referred to in financial transactions? A) Certificate of deposit. B) Bonds. C) Stocks. D) Loans. Show Answer Correct Answer: D) Loans. 2. Which component is not a part of capital market? A) Debt Market. B) Equity Market. C) Insurance Market. D) Derivative Market. Show Answer Correct Answer: C) Insurance Market. 3. Two companies operating in the same sector are trading at different PE ratio. While one is trading at a PE ratio of 8 the other is trading at a PE ratio of 45. The most likely reason for the later company to trade at a PE of 45 can be: A) The company is much profitable than the former company. B) The company is much efficient than the former company. C) The company is expected to grow at a much faster pace than the former company. D) The company sales are much larger than the former company. Show Answer Correct Answer: C) The company is expected to grow at a much faster pace than the former company. 4. Inter bank fund requirement in the short run is met by A) Certificate of deposit. B) Call money. C) Treasury bill. D) Commercial bill. Show Answer Correct Answer: B) Call money. 5. When Mr. McFall gets paid, he knows he doesn't have to spend it all at once because money is A) Standard of Value. B) Medium of Exchange. C) Store of Value. D) Fiat money. Show Answer Correct Answer: C) Store of Value. 6. Which of the following IS NOT a function of FINANCIAL MANAGEMENT? A) Maximizes shareholders' wealth. B) Raise capital to purchase assets. C) Determines the company's current share price. D) Acquire assets for operations. Show Answer Correct Answer: C) Determines the company's current share price. 7. Components of Indian Financial System A) Financial markets. B) Financial services. C) Financial instruments. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Which is the major part of financial system? A) Financial market. B) Financial institutions. C) Financial securities. D) All of above. Show Answer Correct Answer: D) All of above. 9. Present Commerce Minister of India A) Nirmala Sitharaman. B) Arun Jaitley. C) Piyush Goyal. D) Rajnadh Singh. Show Answer Correct Answer: C) Piyush Goyal. 10. To meet floatation cost, firms generally issue the following instrument of moneymarket. A) Call Money. B) Commercial Paper. C) Treasury Bill. D) Commercial Bill. Show Answer Correct Answer: B) Commercial Paper. 11. Treasury Bills Commands ..... A) High Liquidity. B) Low Liquidity. C) Medium Liquidity. D) Limited Liquidity. Show Answer Correct Answer: A) High Liquidity. 12. The Index of NSE is called ..... A) INDEX. B) NIFTY. C) SENSEX. D) LISTING. Show Answer Correct Answer: B) NIFTY. 13. From Mar 2020 to April 5th 2020 the Indian stock market is entering in A) Bear Phase. B) Bull Phase. Show Answer Correct Answer: A) Bear Phase. 14. Islam banking and finance system offers more ethical and efficient alternative tothe interest-based conventional financial system. A) True. B) False. Show Answer Correct Answer: A) True. 15. The mandatory detail that an investor has to provide to the broker at the time of opening of Demat account is A) Date of birth and address. B) PAN number. C) Residential status. D) Bank account details. Show Answer Correct Answer: B) PAN number. 16. A government bond is A) An IOU from the government. B) A promise from the government to repay a loan. C) A fixed rate loan to the government. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. The instrument used in capital market is A) Equity. B) Commercial paper. C) Treasury Bill. D) All the above. Show Answer Correct Answer: A) Equity. 18. The money market where debt and stocks are traded and maturity period is more than a year is classified as: A) Shorter term markets. B) Capital Markets. C) Counter markets. D) Long-term markets. Show Answer Correct Answer: B) Capital Markets. 19. True or false? Regulation is proactive rather than reactive. A) True. B) False. Show Answer Correct Answer: B) False. 20. When the NSEI was established A) 1990. B) 1992. C) 1998. D) 1997. Show Answer Correct Answer: B) 1992. ← 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 5Financial Markets And Institutions Quiz 6Financial Markets And Institutions Quiz 7Financial Markets And Institutions Quiz 9Financial Markets And Institutions Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books