Class 12 Financial Markets CBSE Questions & Answers

Class 12 · Financial Markets

This is Business Studies class 12 Financial Markets CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
What type of instruments are traded in a Money Market?
  • A
    All of these
    Correct
  • B
    Call money
  • C
    Treasury bills
  • D
    Commercial bills
2
_________ Market instruments enjoy higher degree of liquidity
  • A
    Capital market
  • B
    Money market
    Correct
  • C
    None of these
  • D
    Both money and capital market
3
The expected rate of return of the money market is _________
  • A
    Very high
  • B
    Less
    Correct
  • C
    Zero
  • D
    More
4
A Treasury bill is an instrument of _____________
  • A
    Dividend
  • B
    Short term debt
    Correct
  • C
    Interest
  • D
    Long term debt
5
Treasury bills are also known as _____________
  • A
    Fixed interest Bonds
  • B
    Flate Rate Bonds
  • C
    Low Interest Bonds
  • D
    Zero Coupon Bonds
    Correct
6
A commercial bill is used to _____________
  • A
    Finance the working capital requirements
    Correct
  • B
    Meet the short term debt
  • C
    Meet the long term debt
  • D
    Pay the interest
7
When a trade bill is accepted by a commercial bank, it is known as a _____
  • A
    Commercial Bill
    Correct
  • B
    Call money
  • C
    None of these
  • D
    Certificate of deposit
8
A capital market is ideal when:
  • A
    Financial institutions are sufficiently developed
  • B
    Finance is available at reasonable cost
  • C
    All of these
    Correct
  • D
    Capital is most productively allocated
9
Money market deals in _____________________
  • A
    Medium term securities
  • B
    Short term Securities
    Correct
  • C
    Long term Securities
  • D
    None of these
10
Only institutional investors can participate in __________
  • A
    Foreign Market
  • B
    Capital Market
  • C
    Loan Market
  • D
    Money Market
    Correct
11
Which of the following is a method of floatation?
  • A
    All of these
    Correct
  • B
    Offer for sale
  • C
    Offer through prospectus
  • D
    Private Placement
12
What is the meaning of right issue?
  • A
    None of these
  • B
    Company sells the securities to some selected institutions
  • C
    Company offers new shares to its existing shareholders
    Correct
  • D
    Securities are not issued to existing shareholders at all
13
Under Private Placement Company sell securities to some selected institutions. From the following identify such institution.
  • A
    GIC
  • B
    UTI
  • C
    All of these
    Correct
  • D
    LIC
14
What is meant by Demat Account?
  • A
    Dematerialisation of of Securities
    Correct
  • B
    Depository Participant Account
  • C
    Demand Depository Account
  • D
    Development Market Account
15
At present only two depositories are registered with SEBI _____
  • A
    NSDL and ABSL
  • B
    NEFT and TDS
  • C
    NSDL and HDFC
  • D
    NSDL and CDSL
    Correct