MCQs For NCERT Class 12 Business Studies Chapter 10 Financial Markets

MCQs Class 12

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

Answer

C

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

Answer

D

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

Answer

C

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.

Answer

A

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

Answer

B

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

Answer

A

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

Answer

D

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

Answer

A

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

Answer

B

Fill In The Blanks :

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

Answer

one year

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

Answer

Mumbai

Question. Commercial bill is also known as ________ .

Answer

bill of exchange

Question. Treasury bill is also known as ________ bond. 

Answer

Zero coupon

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

Answer

money market 

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

Answer

institutional investor, individuals

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

Answer

safety of transaction

Question. SEBI has ________ regional office .

Answer

3

Question. Asia’s first Stock Exchange is ________ .

Answer

Bombay stock exchange

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

Answer

financial assets

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

Answer

1993

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

Answer

investors

Question. The capital market deals in ________ and________ securities. 

Answer

medium , long term

True / False :

Question. BSE has the target market capitalization in India .

Answer

True

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

Answer

True

Question. A bearish phase refers to a period of optimism

Answer

False

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

Answer

True

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

Answer

False

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

Answer

True

Question. A Bullish phase refers to a period of optimism

Answer

True

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

Answer

False

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

Answer

False

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

Answer

True

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

Answer

True

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

Answer

False

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

Answer

False

Question. Stock exchange regulates the capital market.

Answer

False

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

Answer

True

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

Answer

False

Financial Markets Class 12 MCQ Questions