BUSINESS STUDIES FOR CLASS 12 CHAPTER 10 FINANCIAL MARKET MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 12 along with answers Chapter 10: Financial Market. Business Studies MCQs for Class 12 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. After the trade has been executed, the broker issues a Contract Note to the investor within _____.

(a) 52 hours

(b) 24 hours

(c) 48 hours

(d) 12 hours

Answer (b) 24 hours

2. On this day, the exchange will deliver the share or make payment to the other broker, _____.

(a) Pay-in day

(b) Pay-out day

(c) Transaction day

(d) None of the above

Answer: (b) Pay-out day

3. The mandatory detail that an investor has to provide to the broker at the time of opening a Demat account is _____.

(a) Date of birth and address

(b) PAN number

(c) Residential status (Indian/NRI)

(d) Bank account details.

Answer: (b) PAN number

4. Identify the correct sequence of steps to be followed in the trading procedure at the Stock Exchange.

(a) Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order

(b) Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order

(c) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order

(d) Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order

Answer: (c) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order

5. It serves as an intermediary between the investor and the depository who is authorised to maintain the accounts of dematerialised shares.

(a) Depository participant

(b) Depository

(c) Stock exchange

(d) None of the above

Answer: (a) Depository participant

6. One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered sub-brokers. Identify the related function of the Securities and Exchange Board of India _____.

(a) Regulatory function

(b) Protective function

(c) Developmental function

(d) None of the above

Answer: (a) Regulatory function

7. Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange.

(a) Providing scope for speculation

(b) Providing liquidity and marketability to existing securities

(c) Pricing of security

(d) Spreading of the equity cult

Answer: (b) Providing liquidity and marketability to existing securities

8. Stock Exchange works as a mechanism for the valuation of securities through the forces of demand and supply. Identify the related function performed by the stock exchanges.

(a) Providing liquidity and marketability to existing securities

(b) Safety of transaction

(c) Pricing of security

(d) Spreading of the equity cult

Answer: (c) Pricing of security

9. 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.

(a) Private placement

(b) Offer through a prospectus

(c) Offer for sale

(d) All of the above

Answer: (b) Offer through a prospectus

10. They can be issued to individuals, corporations, and companies during periods of tight liquidity when the deposit growth of banks is slow, but the demand for credit is high.

(a) Commercial papers

(b) Call money

(c) Commercial bill

(d) Certificate of deposit

Answer: (d) Certificate of deposit

11. A company can raise capital through the primary market in the form of _____.

(a) Equity shares

(b) Preference shares

(c) Debentures

(d) All of the above

Answer: (d) All of the above

12. It is a short-term, negotiable, self-liquidating instrument that is used to finance the credit sales of firms.

(a) Commercial bill

(b) Commercial papers

(c) Call money

(d) None of the above

Answer: (a) Commercial bill

13. It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.

(a) Commercial bill

(b) Commercial papers

(c) Call money

(d) None of the above

Answer: (c) Call money

14. Who issues a treasury bill?

(a) Any nationalised bank

(b) Any private sector bank

(c) Reserve Bank of India

(d) All of the above

Answer: (c) Reserve Bank of India

15. It is a market for short-term funds that deals in monetary assets whose period of maturity is up to one year.

(a) Primary market

(b) Secondary market

(c) Capital market

(d) Money market

Answer: (d) Money market

We trust that the offered Business Studies MCQs for Class 12 with responses Chapter 10: Financial Market will help you. Assuming you have any questions with respect to CBSE Class 12 Business Studies Financial Market MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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