MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets with Answers

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Financial Markets Class 12 MCQs Questions with Answers

Question 1.
Treasury bills are also known as _____________
(a) Fixed interest Bonds
(b) Low-Interest Bonds
(c) Flat Rate Bonds
(d) Zero-Coupon Bonds

Answer

Answer: (d) Zero-Coupon Bonds


Question 2.
Which of the following is a method of floatation?
(a) Offer for sale
(b) Private Placement
(c) Offer through the prospectus
(d) All of the above

Answer

Answer: (d) All of the above


Question 3.
Primary and secondary markets:
(a) Control each other
(b) Complement each other
(c) Compete with each other
(d) Function independently

Answer

Answer: (b) Complement each other


Question 4.
The total number of Stock Exchanges in India is:
(a) 22
(b) 21
(c) 23
(d) 20

Answer

Answer: (b) 21


Question 5.
Money market deals in ________
(a) Long term Securities
(b) Medium-term securities
(c) Short term Securities
(d) None of the above

Answer

Answer: (c) Short term Securities


Question 6.
A Treasury Bill is basically:
(a) An instrument to borrow short-term funds
(b) An instrument to borrow long-term funds
(c) An instrument of capital market
(d) None of the above

Answer

Answer: (a) An instrument to borrow short-term funds


Question 7.
What is meant by Demat Account?
(a) Development Market Account
(b) Depository Participant Account
(c) Dematerialisation of Securities
(d) Demand Depository Account

Answer

Answer: (c) Dematerialisation of Securities


Question 8.
To be listed on OTCEI, the minimum capital requirement for a company is:
(a) Rs. 10 crores
(b) Rs. 3 crores
(c) Rs. 25 crores
(d) Rs. 5 crores

Answer

Answer: (b) Rs. 3 crores


Question 9.
Clearing and settlement operations of NSE are carried out by:
(a) NSDL
(b) SBI
(c) NSCCL
(d) CDSL

Answer

Answer: (c) NSCCL


Question 10.
Instruments traded in capital market are__________
(a) Bonds
(b) Equity Shares and Preference Shares
(c) Debentures
(d) All of the above

Answer

Answer: (d) All of the above


Question 11.
OTCEI was started on the lines of:
(a) NSE
(b) NYSE
(c) NASDAQ
(d) NASAQ

Answer

Answer: (c) NASDAQ


Question 12.
_________ is not a participant in money market
(a) SEBI
(b) NBFCs
(c) RBI
(d) Mutual Funds

Answer

Answer: (a) SEBI


Question 13.
When a trade bill is accepted by a commercial bank, it is known as a _____
(a) Certificate of deposit
(b) Commercial Bill
(c) Call money
(d) None of the above

Answer

Answer: (b) Commercial Bill


Question 14.
What type of instruments are traded in a Money Market?
(a) Treasury bills
(b) Commercial bills
(c) Call money
(d) All of the above

Answer

Answer: (d) All of the above


Question 15.
Capital market deals in ___________
(a) Medium and long term securities
(b) Very short term securities
(c) Short term securities
(d) None of the above

Answer

Answer: (a) Medium and long term securities


Question 16.
What is the meaning of the right issue?
(a) Company sells the securities to some selected institutions
(b) Company offers new shares to its existing shareholders
(c) Securities are not issued to existing shareholders at all
(d) None of the above

Answer

Answer: (b) Company offers new shares to its existing shareholders


Question 17.
_______ Market instruments enjoy a higher degree of liquidity
(a) Both money and capital market
(b) Money market
(c) Capital market
(d) None of the above

Answer

Answer: (b) Money market


Question 18.
At present only two depositories are registered with SEBI _____
(a) NSDL and HDFC
(b) NSDL and CDSL
(c) NSDL and ABSL
(d) NEFT and TDS

Answer

Answer: (b) NSDL and CDSL


Question 19.
Which of the following is not a part of the capital market?
(a) Banks
(b) Financial Institutions
(c) Stock Exchanges
(d) RBI

Answer

Answer: (d) RBI


Question 20.
Securities Exchange Board of India (SEBI) was established in ________
(a) 1992
(b) 1956
(c) 2001
(d) 1984

Answer

Answer: (a) 1992


Question 21.
A Treasury bill is an instrument of _____________
(a) Long term debt
(b) Short term debt
(c) Interest
(d) Dividend

Answer

Answer: (b) Short term debt


Question 22.
The settlement cycle in NSE is:
(a) T + 2
(b) T + 5
(c) T + 3
(d) T + 1

Answer

Answer: (a) T + 2


Question 23.
Only institutional investors can participate in __________
(a) Loan Market
(b) Money Market
(c) Foreign Market
(d) Capital Market

Answer

Answer: (b) Money Market


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