Financial Market MCQ Questions for Class 12 Business Studies Chapter 10 with Answers

We have completed the NCERT/CBSE chapter-wise Multiple Choice Class 12 Business Studies Chapter 10 Financial Market with Answers by expert subject teacher for latest syllabus and examination. Prepare effectively for the exam taking the help of the Class 12 Business Studies Objective Questions PDF free of cost from here. Students also can take a free test of the Multiple Choice Questions of Financial Market. Each Questions has four options followed by the right answer. Download the Business Studies Quiz Questions with Answers for Class 12 Pdf and prepare to help students understand the concept very well.

MCQ Questions for Class 12 Business Studies with Answers

Q1. Primary and secondary markets:

(i) Control each other
(ii) Complement each other
(iii) Compete with each other
(iv) Function independently

(ii) Complement each other

Q2. The settlement cycle in NSE is

(i) T+5
(ii) T+3
(iii) T+2
(iv) T+1

(iii) T+2

Q3. NSE commenced futures trading in the year:

(i) 1999
(ii) 2000
(iii) 2001
(iv) 2002

(ii) 2000

Q4. Secondary market is in the form of

(i) stock exchange.
(ii) money market
(iii) new issue market.
(iv) commercial exchange

(i) stock exchange.

Q5. Which of the following statements is not true with regard to Commercial paper?

(i) Is a long-term unsecured promissory note with a fixed maturity period
(ii) It usually has a maturity period of 15 days to one year.
(iii) It is sold at a discount and redeemed at par.
(iv) Companies use this instrument for bridge financing.

(i) Is a long-term unsecured promissory note with a fixed maturity period

Q6. The total number of Stock Exchanges in India is:

(i) 22
(ii) 21
(iii) 23
(iv) 20

(ii) 21

Q7. National Stock Exchange in India was recognized as stock exchange in the year.

(i) 1992
(ii) 1993
(iii) 1994
(iv) 1995

(ii) 1993

Q8. Clearing and settlement operations of NSE are carried out by:

(i) NSDL
(ii) NSCCL
(iii) SBI
(iv) CDSL

(i) NSDL

Q9. SEBI is a regulator of

(i) capital market.
(ii) money market
(iii) commodity market.
(iv) overseas market

(i) capital market.

Q10. Which of the following statements is not true with regard to Call money?

(i) It is short-term finance repayable on demand
(ii) Its maturity period ranges from one day to fifteen days.
(iii) There is a direct relationship between call rates and other short-term money market instruments.
(iv) It is used for inter-bank transactions.

(iii) There is a direct relationship between call rates and other short-term money market instruments

.

Q11. What is meant by Demat Account?

(i) Development Market Account
(ii) Depository Participant Account
(iii) Dematerialisation of Securities
(iv) Demand Depository Account

(iii) Dematerialisation of Securities

Q12. Which of the following falls in the category of Zero Coupon Bond?

(i) Treasury Bill
(ii) Commercial Paper
(iii) Certificate of Deposit
(iv) Commercial Bill

(i) Treasury Bill

Q13. A Treasury Bill is basically:

(i) An instrument to borrow short-term funds
(ii) An instrument to borrow long-term funds
(iii) An instrument of capital market
(iv) None of the above

(i) An instrument to borrow short-term funds

Q14. -is the market which helps existing investors to sell their securities.

(i) Primary market
(ii) Secondary market
(iii) Capital market
(iv) Commodity market

(ii) Secondary market

Q15. Which of the following statements is not true with regard to capital market?

(i) The funds are raised for a short period of time.
(ii) Both debt and equity funds can be raised
(iii) It is classified into two types.
(iv) All of the above.

(i) The funds are raised for a short period of time.

Q16. Clearing and settlement operations of NSE are carried out by:

(i) NSDL
(ii) SBI
(iii) NSCCL
(iv) CDSL

(iii) NSCCL

Q17. Which of the following takes advantage of the internal trading?

(i) All shareholders
(ii) All Debenture holders
(iii) People having secret information of the company
(iv) All the employees

(iii) People having secret information of the company

Q18. Primary and secondary markets:

(i) Compete with each other
(ii) Complement each other
(iii) Function independently
(iv) Control each other

(ii) Complement each other

Q19. After the trade has been executed, the broker issues a Contract Note to the investor within

(i) 52 hours
(ii) 24 hours
(iii) 48 hours
(iv) 12 hours

(ii) 24 hours

Q20. Which of the following is not a protective function of stock exchange?

(i) Prohibition of fraudulent and unfair trade practices.
(ii) Controlling insider trading.
(iii) Regulation of takeover bids by companies.
(iv) Promotion of fair practices and code of conduct in securities market.

(iii) Regulation of takeover bids by companies.

Q21. OTCEI was started on the lines of:

(i) NSE
(ii) NYSE
(iii) NASDAQ
(iv) NASAQ

(iii) NASDAQ

Q22. It is a number assigned to each transaction by the stock exchange and is printed on the contract note.

(i) PAN number
(ii) Unique Order Code
(iii) Contract Note
(iv) None of the above

(ii) Unique Order Code

Q23. 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?

(i) 6
(ii) 7
(iii) 4
(iv) 2

(iii) 4

Q24. When a trade bill is accepted by a commercial bank, it is known as a

(i) Certificate of deposit
(ii) Commercial Bill
(iii) Call money
(iv) None of the above

(ii) Commercial Bill

Q25. The process of holding shares in electronic form is known as

(i) Demutualisation
(ii) Dematerialisation
(iii) Speculation
(iv) None of the above

(ii) Dematerialisation

Q26. The allocated function is performed by

(i) Financial market
(ii) Capital market
(iii) Money market
(iv) All of the above

(iv) All of the above

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MCQ Questions for Class 12 Business Studies with Answers

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