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Free Online MCQs for Class – 12 Business Studies Chapter 10 – Financial Market

Free Online MCQs Questions of CBSE Class – 12 Business Studies Chapter 10 – Financial Market with Answers. Free Online MCQs Questions for Class 12 Business Studies with Answers was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Business Studies Chapter 10 – Financial Market Multiple Choice Questions with Answers to know their preparation level on Success Roar Classes Website itself.

Free Online MCQs for Class -12 Business Studies

Chapter10 – Financial Market with Answers

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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
  10. 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

MCQs Questions of Class – 12 Business Studies Chapter 10 – Financial Market

Answer Key

  1. (b)  2. (c)   3. (a)     4. (c)   5. (a)    6. (a)    7. (b)    8. (c)    9. (c)   10.  (d)

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