This quiz works best with JavaScript enabled. Home > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money market provides ..... A) Medium term Funds. B) Short term Funds. C) Long term Funds. D) Shares. Show Answer Correct Answer: B) Short term Funds. 2. Term that refers to the total value of all a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. A) Market Volatility. B) Market Diversification. C) Market Capitalization. D) Market Socialization. Show Answer Correct Answer: C) Market Capitalization. 3. Which of the following performs the functions of giving imputes to saving andtransfer them to more productive uses? A) Wholesale Market. B) Retail Market. C) Financial Market. D) Financial Institutions. Show Answer Correct Answer: C) Financial Market. 4. RK Enterprise Limited has sold an entire lot of 6, 00, 000 equity shares @ ₹ 9 each to People's Bank Pvt Ltd ..... The Bank inturn will offer the shares to general public for subscription @ ₹ 11 per share. Identify the method of floatation used here A) Private Placement. B) Offer through Prospectus. C) Offer for sale. D) Rights issue. Show Answer Correct Answer: C) Offer for sale. 5. When stocks overall are rising, the market is called? A) A bull market. B) A bear market. C) Market capitalization. D) Market diversification. Show Answer Correct Answer: A) A bull market. 6. ..... is an agreement to buy or sell at a specific date in the future at a predetermined price A) Equities. B) Futures contract. C) Bond. D) Savings. Show Answer Correct Answer: B) Futures contract. 7. It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year A) Primary Market. B) Capital Market. C) Secondary Market. D) Money Market. Show Answer Correct Answer: D) Money Market. 8. The followings are correct regarding characteristics of money market securities EXCEPT A) High expected return. B) Liquid. C) Low degree of risk. D) Low expected return. Show Answer Correct Answer: A) High expected return. 9. An inefficient market means that stock prices adjust quickly to new public information. A) True. B) False. Show Answer Correct Answer: B) False. 10. The network of savers, investors, financial institutions, and financial assets is known as the A) Stockbroker. B) Equities market. C) Credit Union. D) Financial system. Show Answer Correct Answer: D) Financial system. 11. Information asymmetry refers to a situation ..... A) Where one party in a transaction has no information. B) Where one party in a transaction has less information than another. C) Where one party in a transaction has more information than another. D) None of above. Show Answer Correct Answer: B) Where one party in a transaction has less information than another. 12. SEBI was constituted on A) 12 April 1988. B) 30 January 1992. C) 21 February 1992. D) 04 April 1992. Show Answer Correct Answer: A) 12 April 1988. 13. The government agency responsible for regulating the stock market? A) Federal Reserve Board. B) Federal Trade Commission. C) Interstate Commerce Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 14. The Gramm Leach Bliley Act requires: A) Banks to make a profit. B) Banks to offer credit cards to consumers at whatever rate they want. C) Banks to notify customers of information-sharing practice + allow opt-outs. D) All of the Answers are correct. Show Answer Correct Answer: C) Banks to notify customers of information-sharing practice + allow opt-outs. 15. Stock markets link the ..... units (that have excess funds) with ..... units (that need funds). A) Surplus; deficit. B) Deficit; surplus. C) Debit; credit. D) Credit; debit. Show Answer Correct Answer: A) Surplus; deficit. 16. A series of meetings or presentations in which a company usually executives pitch an IPO to prospective investors A) Registration. B) Roadshow. C) Preliminaries. D) Reporting. Show Answer Correct Answer: B) Roadshow. 17. National stock exchange of India situated at? A) Bangalore. B) Hyderabad. C) Bombay. D) None of these. Show Answer Correct Answer: C) Bombay. 18. Type of stock which is owned by few people, usually the companies' managers and not actively traded. A) Publicly-held stock. B) Treasury-held stock. C) Family-owned stock. D) Closely held stock. Show Answer Correct Answer: D) Closely held stock. 19. Companies that sell shares of a portfolio of securities are known as A) Pension plans. B) Mutual funds. C) Discount brokerage firms. D) Bear markets. Show Answer Correct Answer: B) Mutual funds. 20. Neither income gap analysis nor duration gap analysis are useful tools for telling a financial institution manager the institution's degree of exposure to interest-rate risk. A) True. B) False. Show Answer Correct Answer: B) False. ← 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 8Financial Markets And Institutions Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books