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MCQ Questions for CBSE Class 12 with Answers
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Capital Markets Class 12 MCQ Questions With Answers
1.
_______ a market in which only the original issuer can sell or repurchase a financial asset
financial system
primary market
capital market
secondary market
2.
_______ a market in which all financial assets can be sold to someone other than the original issuer
primary market
secondary market
financial system
capital market
3.
_______ the dollars that become available for investors to use when others refrain from consuming
risk
equities
bond
savings
4.
_______ a situation in which the outcome is not certain, but the probabilities can be estimated
equities
portfolio diversification
risk
bond
5.
Which two investments are at opposite ends of the risk spectrum?
Treasury notes and futures
Savings bonds and Treasury notes
Equities and futures
Equities and futures
6.
_______ formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
equities
savings
bond
futures contract
7.
_______ a market in which financial capital is loaned and/or borrowed for at least one year
primary market
secondary market
financial system
capital market
8.
Treasury bills are also known as:
Fixed interest Bonds
Flat Rate Bonds
Low-Interest Bonds
Zero-Coupon Bonds
9.
The expected rate of return of the money market is ______
Very high
Less
Zero
None of the above
10.
PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
Private placement
Offer through prospectus
Offer for sale
Rights issue
11.
What type of instruments are traded in a Money Market?
Call money
Treasury bills
Commercial bills
All of the above
12.
A commercial bill is used to _____________
Finance the working capital requirements
Meet the short term debt
Meet the long term debt
Pay the interest
13.
A company can raise capital through the primary market in the form of
Equity shares
Preference shares
Debentures
All of the above
14.
When a trade bill is accepted by a commercial bank, it is known as a _____
Commercial Bill
Call money
None of these
Certificate of deposit
15.
It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.
PAN number
Unique Order Code
Contract Note
None of the above
16.
Money market deals in _____________________
Medium-term securities
Short term Securities
Long term Securities
None of these
17.
A treasury bill is an instrument of:
Dividend
Short term debt
Long term debt Interest
18.
On this day, the exchange will deliver the share or make payment to the other broker
Pay-in day
Pay-out day
Transaction day
None of the above
19.
The process of holding shares in electronic form is known as
Demutualisation
Dematerialisation
Speculation
None of the above
20.
A capital market is ideal when:
Financial institutions are sufficiently developed
Finance is available at a reasonable cost
Capital is most productively allocated
All of these
21.
Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.
Private placement
Offer through prospectus
Offer for sale
All of the above
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