Chapter 10: Financial Markets

Important Questions

1. Briefly explain the concept of financial market?

2. Discuss the functions of financial market?

3. What are the various methods of issuing securities in primary market?

4. What is the difference between a treasury bill and a trade bill?

5. Distinguish between capital market and money market on the basis of following:-

  1. Participants
  2. Instruments
  3. Duration
  4. Liquidity
  5. Safety

MCQ

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