MCQs For NCERT Class 12 Business Studies Chapter 10 Financial Markets

Please refer to the MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets with Answers. The following Financial Markets Class 12 Business Studies MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Business Studies with Answers for all chapters in your NCERT Class 12 Business Studies book.

Financial Markets Class 12 MCQ Questions with Answers

See below Financial Markets Class 12 Business Studies MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. Which one of the following is not a function of financial market?   
(a) Mobilisation of savings
(b) Price determination of securities
(c) Floating of companies
(d) Lowering transaction cost

Question. Which one of the following is a money market instrument?   
(a) Unit of mutual fund
(b) Debenture
(c) Bond
(d) Treasury bill

Question. ____________ is the institution which provides a platform for trading of existing securities having long-term maturity.   
(a) SEBI
(b) WTO
(c) Stock exchange
(d) RBI

Question. Primary and secondary markets develop simultaneously because they 
(a) complement each other.
(b) compete with each other.
(c) control each other.
(d) function independently.

Question. ____________ is the market which helps existing investors to sell their securities.   
(a) Primary market
(b) Secondary market
(c) Capital market
(d) Commodity market

Question. Secondary market is in the form of   
(a) stock exchange.
(b) money market.
(c) new issue market.
(d) commercial exchange.

Question. ________ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.
(a) Treasury Bill
(b) Commercial Paper
(c) Certificate of Deposit
(d) Call Money

Question. SEBI is a regulator of 
(a) capital market.
(b) money market.
(c) commodity market.
(d) overseas market.

Question. ___________ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.   
(a) Treasury bill
(b) Commercial paper
(c) Certificate of deposit
(d) Promissory note

Fill In The Blanks :

Question. The maturity for money market instruments for a period of ________ .

Question. The head office of SEBI is situated in ________ .

Question. Commercial bill is also known as ________ .

Question. Treasury bill is also known as ________ bond. 

Question. Discount finance house of India has been established for a specific objective of providing a ready market to ________ instruments. 

Question. Private placement is the allotment of securities by a company to ________ and some selected ________ . 

Question. The function of SEBI which ensures that the investors gets a safe and fair deal on the secondary Market is ________ .

Question. SEBI has ________ regional office .

Question. Asia’s first Stock Exchange is ________ .

Question. Financial market is a market for creation and exchange of ________ .

Question. NSE In India was recognized as a stock exchange in the year ________.

Question. In secondary market the dealing of securities is between ________ . 

Question. The capital market deals in ________ and________ securities. 

True / False :

Question. BSE has the target market capitalization in India .

Question. Only buying of securities take place in the primary market, securities cannot be sold there.

Question. A bearish phase refers to a period of optimism

Question. Debt market segment provides platform for fixed Income Securities .

Question. Certificate of deposits are unsecured instrument which are not issued in bearer form.

Question. Stock Exchange helps in reinvestments of savings into productive purposes.

Question. A Bullish phase refers to a period of optimism

Question. Is the statement true that the price in the primary market is determined by the forces of demand and supply?

Question. The participants in the capital market RBI, finance companies.

Question. Sensex is made up of 30 of the most actively traded stocks in the market .

Question. The process of holding securities in an electronic form is called Dematerlisation .

Question. Financial market not help in reducing the cost of transactions.

Question. IPOs can be issued by companies in paper mode only.

Question. Stock exchange regulates the capital market.

Question. Providing liquidity is an important function of stock exchange.

Question. Money Market is the market in which financial instruments having long-term maturity are dealt with.