Top 350+ Solved Financial Markets and Institutions MCQ Questions Answer
Q. Stock exchange is known as __________ market for securities.
a. Primary market
b. Secondary market
c. Capital market
d. None of the above
Q. _________ is a market for lending & borrowing of short term funds.
a. Money market
b. Primary market
c. Capital market
d. All of the above
Q. ____________ is also called zero coupon bond.
a. Trade bills
b. Call money
c. Treasury bills
d. Commercial papers
Q. Which of the following are the instruments of money market?
a. Call money
b. Certificate of deposits
c. Trade bills
d. All of the above
Q. The short term financial instruments traded in money market is commonly called
a. Call money
b. Certificate of deposits
c. Trade bills
d. Commercial Paper
Q. Which of the following statements is not true with regard to money market?
a. It involves low market risk.
b. It is situated at specific locations.
c. Deals in unsecured and short-term debt instruments.
d. The instruments traded are highly liqui
Q. Which of the following statements is not true with regard to Commercial paper?
a. Is a long-term unsecured promissory note with a fixed maturity period.
b. It usually has a maturity period of 15 days to one year.
c. It is sold at a discount and redeemed at par.
d. Companies use this instrument for bridge financing.
Q. Which of the following statements is not true with regard to Call money?
a. It is short-term finance repayable on demand.
b. Its maturity period ranges from one day to fifteen days.
c. There is a direct relationship between call rates and other short-term money market instruments.
d. It is used for inter-bank transactions.
Q. Which of the following statements is not true with regard to capital market?
a. The funds are raised for a short period of time.
b. Both debt and equity funds can be raised.
c. It is classified into two types.
d. All of the above
Q. Which of the following statements is not true with regard to primary market?
a. Is also known as the old issues market.
b. It facilitates the transfer of investible funds from savers to entrepreneurs.
c. It deals with new securities being issued for the first time.
d. It facilitates the transfer of investible funds from savers to entrepreneurs.
Q. Which of the following statements is not true with regard to stock exchange?
a. It provides a platform for buying and selling of new securities.
b. It curbs the marketability of the securities.
c. By providing a ready market, it extends liquidity to the securities.
d. It provides a platform for buying and selling of old securities.`
Q. Which of the following is not a protective function of stock exchange?
a. Prohibition of fraudulent and unfair trade practices.
b. Controlling insider trading.
c. Regulation of takeover bids by companies.
d. Promotion of fair practices and code of conduct in securities market.
Q. Which of the following statements is true with regard to financial markets?
a. They link the households which save funds and business firms which invest these funds.
b. They work as an intermediary between the savers and the investors by mobilising funds between them.
c. They allocate funds available for investment into their most productive investment opportunity.
d. All of the above
Q. The allocated function is performed by
a. Financial market
b. Capital market
c. Money market
d. All of the above
Q. It is a market for short-term funds which deals in monetary assets whose period ofmaturity is up to one year.
a. Primary market
b. Secondary market
c. Capital market
d. Money market