Financial Markets-MCQ

MULTIPLE CHOICE QUESTIONS

CHAPTER 10: Financial Markets

1. _______ is a link between savers & borrowers, helps to establish a link between savers & investors
   (a) Marketing
   (b) Financial market
   (c) Money market
   (d) None of these


2. Which of the following is the function of financial market?
   (a) Mobilization of savings
   (b) Price fixation
   (c) Provide liquidity to financial assets
   (d) All of the above


3. __________ is the organisations, institutions that provide long term funds.
   (a) Capital market
   (b) Money market
   (c) Primary market
   (d) Secondary market


4. When securities are allotted to institutional investors & some selected individuals is referred to as _________.
   (a) Initial public offer
   (b) Offer through prospectus
   (c) Private placement
   (d) Offer for sale


5. Stock exchange is known as __________ market for securities.
   (a) Primary market
   (b) Secondary market
   (c) Capital market
   (d) None of the above


6. _________ is a market for lending & borrowing of short term funds.
   (a) Money market
   (b) Primary market
   (c) Capital market
   (d) All of the above


7. ____________ is also called zero coupon bond.
   (a) Trade bills
   (b) Call money
   (c) Treasury bills
   (d) Commercial papers


8. Which of the following are the instruments of money market?
   (a) Call money
   (b) Certificate of deposits
   (c) Trade bills
   (d) All of the above

Answer Keys

1

b

2

d

3

a

4

c

5

b

6

a

7

c

8

d