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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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