Top 350+ Solved Financial Markets and Institutions MCQ Questions Answer
Q. Intermediaries who are agents of investors and match buyers with sellers of securities are called
a. investment bankers.
b. traders
c. brokers
d. dealers.
Q. Intermediaries who link buyers and sellers by buying and selling securities at stated prices are called
a. investment bankers.
b. traders
c. brokers
d. dealers
Q. An important financial institution that assists in the initial sale of securities in the primary market is the
a. investment bank
b. commercial bank.
c. stock exchange.
d. brokerage house
Q. Which of the following statements about financial markets and securities are true?
a. Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the
b. New York Stock Exchange.
c. A corporation acquires new funds only when its securities are sold in the primary market.
d. Money market securities are usually more widely traded than longer-term securities and so tend to be more liqui
Q. The lending ability of commercial bank increases when
a. Reserve ratio is increased
b. RBI credit is reduced
c. RBI sells government securities
d. None of the above
Q. RBI issues currency noted under
a. Minimum reserve system
b. Proportional reserve system
c. Maximum issue system
d. None of the above
Q. Which of the following markets is sometimes organized as an over-the-counter market?
a. The stock markets
b. The bond markets
c. The foreign exchange markets
d. all of the above
Q. Which of the following instruments is not traded in a money market?
a. Banker’s acceptances
b. U.S. Treasury Bills
c. Eurodollars
d. None of the above
Q. Which of the following instruments is not traded in a money market?
a. Banker’s acceptances
b. U.S. Treasury Bills
c. Eurodollars
d. Residential mortgages
Q. Which of the following instruments are traded in a capital market?
a. U.S. government agency securities
b. Negotiable bank CDs
c. Repurchase agreements
d. Eurodollars
Q. Which of the following instruments are traded in a capital market?
a. Corporate bonds
b. U.S. Treasury bills
c. Banker’s acceptances
d. Repurchase agreements
Q. Bonds that are sold in a foreign country and are denominated in that country’s currency are known as
a. Foreign bonds.
b. Eurobonds.
c. Eurocurrencies.
d. Eurodollars.