CBSE Questions for Class 12 Commerce Business Studies Financial Market Quiz 4 - MCQExams.com

Money market mutual funds ____________________________.
  • Enable individuals and small business to invest indirectly in money-market instruments
  • Are available only to high net-worth individuals
  • Highly liquid and short term investment vehicle
  • Are mostly tradable on stock exchange
We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, please consider the following.
  Which statement is more suitable for this statement ?
  • FDI brings in the latest technology
  • FDI does not involve large outflow
  • FDI improves efficiency of the economy
  • None of the above
________ registered brokers have to be appointed for the purpose of accepting applications and placing orders with the company.
  • OTCEI
  • NSE
  • SEBI
  • Both (b) and (c)
All of the following are essentials of a valid acceptance of an instrument, except _____.
  • must be conditional.
  • signed by drawee or his agent.
  • accepted must appear on the holder.
  • accepted of valid Acceptance.
According to Negotiable Act, $$1881$$, which of the following refers to a promissory note, bill of exchange or cheque payable either to order or to bearer?
  • Agreement
  • Contract
  • Negotiable Instrument
  • Act
A person is considered the holder of Negotiable Instruments if _________.
  • his name appears on an instrument
  • he is in possession of the bearer instrument
  • he is entitled to receive or recover the amount due on the instrument
  • all of the above.
In which year did India register a 5-year low growth in FDI?
  • 2017-18
  • 2013-15
  • 2015-17
  • 2010-12
The __________ market is also known as the new issues market, which deals with new securities being issued for the first time.
  • capital
  • money
  • primary
  • secondary
'If you want to gauge economic status of a country, analyse the status of its capital market'. This statement is pertaining to ________.
  • monetary policy
  • capital policy
  • stock exchange
  • None of the above
The strategy used to minimize the risk and maximize the return on an investment is called ____________.
  • hedge
  • index
  • bid
  • offer
Which strategy involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels?
  • Product Development
  • Market Penetration
  • Diversification
  • Market Development
Which of the following is a regulatory function of SEBI?
  • Prohibition of fraudulent and unfair trading
  • Regulation of takeover bids by companies
  • Undertaking measures to develop capital market
  • Conducting research
SOME IMPORTANT TRUE AND FALSE WITH REASON:
The objective of SEBI is to protect interest of the companies.
  • True
  • False
______ is the process by which physical certificates an investor are converted to an equivalent number of securities in electronic format and credited in the investor's account with a Depository held through a Depository Participant(DP).
  • Rematerialization
  • Dematerialization
  • Materialization
  • None of above
Investors are expected to open _________ account with depository participants and deposit their share certificates for the purpose of converting them to the electronic format.
  • remat
  • demat
  • deposit
  • current
SOME IMPORTANT TRUE AND FALSE WITH REASON:
Stock Exchange is a primary market.
  • True
  • False
Simultaneous purchase and sale of the same stock in two different markets is known as ______________.
  • basket trading
  • badla
  • arbitrage
  • margin trading
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as ____________.
  • put option
  • call option
  • cross option
  • currency swap
Fraudulent asset valuations, insider trading, securities fraud leading to manipulation of the financial markets executive compensation etc are a part of scope in_____________.
  • Production
  • Compliance
  • Finance
  • HR
The fraudulent and unfair practices at a stock exchanges are commonly called as __________.
  • excessive speculation
  • manipulating share price
  • fraud
  • insider trading
The term _____ refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.
  • Capital market
  • Money market
  • Discounted market
  • International market
Which of the following is true regarding call rate?
  • A rise in call money rates makes other sources of finance cheaper.
  • There is an inverse relationship between call rates and other short-term money market instruments.
  • It is a highly volatile rate that varies from day-to-day and sometimes even from hour-to-hour.
  • All of the above
_______ are issued at a price which is lower than their face value and repaid at par.
  • Commercial Paper
  • Certificate of Deposit
  • Commercial Bill
  • Treasury Bill
_______ helps existing investors to dis-invest and fresh investors to enter the market.
  • Secondary market
  • Primary market
  • Capital market
  • Money market
Certificates of deposit (CD) help to mobilize a large amount of money for short periods.
  • True
  • False
Treasury bills are also known as Zero Coupon Bonds that are available for a minimum of ______  and in multiples thereof.
  • 20000
  • 25000
  • 30000
  • 35000
Holders of assets can readily sell their financial assets through the mechanism of the financial market. This is because financial markets provide _________.
  • valuable information about securities being traded in the market
  • assistance in Price Discovery
  • liquidity to Financial Assets
  • all of the above
_______makes a direct appeal to investors to raise capital, through an advertisement in newspapers and magazines.
  • Investor
  • Prospectus
  • Underwriter
  • Auditor
Some companies cannot afford a public issue and choose to use private placement because ________.
  • access to the primary market can be expensive on account of various mandatory and non-mandatory expenses
  • SEBI registered brokers have to be appointed for the purpose of accepting applications
  • securities are not issued directly to the public
  • none of the above
_______ is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
  • Commercial Bill
  • Treasury Bill
  • Call money
  • None of the above
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