NCERT Class 12 Chapter 10 Business Studies Financial Markets MCQ

NCERT Class 12 Chapter 10 Business Studies Financial Markets MCQ | Questions & Answers: Attempt the NCERT Class 12 Chapter 10 Business Studies Financial Markets Online MCQ Quiz to learn new things regarding the Business Studies Financial Markets.

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1. Primary and Secondary Markets

A. Compete with each other

B. Complement each other

C. Function independently

D. Control each other

2. Total number of stock exchanges in India are

A. 25

B. 21

C. 22

D. 23

3. The settlement cycle in NSE is

A. T+5

B. T+3

C. T+2

D. T+1

4. National Stock Exchange in India was recognized as stock exchange in the year.

A. 1992

B. 1993

C. 1994

D. 1995

5. Treasury Bills are 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

6. Certain instruments of money market is short self-liquidating & used to finance credit sales name the instruments:

A. Call Money

B. Certificate of Deposit

C. Commercial Bill

D. Treasury Bill

7. Educating the investor is the ____________ function of SEBI.

A. Protective

B. Regulatory

C. Both the a and b

D. Developmental

8. Which of the following falls in the category of Zero Coupon Bond?

A. Treasury Bill

B. Commercial Paper

C. Certificate of Deposit

D. Commercial Bill

9. Which of the following is the method of collecting capital?

A. Public offer

B. Offer for sale

C. Private Placement

D. All of the above

10. Which of the following takes advantage of the internal trading?

A. All shareholders

B. All Debenture holders

C. People having secret information of the company

D. All the employees

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11. 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 liquid

12. Which of the following statements is not true with regard to Treasury bills?

A. Are issued in the form of a promissory note.

B. They are highly liquid and have assured yield

C. They carry high risk of default.

D. They are available for a minimum amount of ₹25,000 and in multiples thereof

13. 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

14. 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.

15. 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.

16. 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

17. 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

18. 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.

19. Raj Enterprises wishes to invest ₹1,10,000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund?

A. 6

B. 7

C. 4

D. 2

20. 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

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21. The allocated function is performed by

A. Financial market

B. Capital market

C. Money market

D. All of the above

22. It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year.

A. Primary market

B. Secondary market

C. Capital market

D. Money market

23. It is an instrument of short-term borrowing by the Government of India maturing in less than one year.

A. Commercial bill

B. Treasury bill

C. Call money

D. None of the above

24. Who issues a treasury bill?

A. Any nationalised bank

B. Any private sector bank

C. Reserve Bank of India

D. All of the above

25. Suppose an investor purchases a 91 days Treasury bill with a face value of ₹2,00,000 for ₹1,92,000. By holding the bill until the maturity date, the investor receives ₹2,00,000. What is the amount of interest received by him?

A. ₹8,000

B. ₹80,000

C. ₹3,92,000

D. ₹2,00,000