Business Studies MCQs for Class 12 with Answers Chapter 10 Financial Market

Leave a Comment / By / January 25, 2022

Here you will find NCERT MCQ Questions for Class 12 Business Studies with Answers PDF Free Download based on the important concepts and topics given in the textbook as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 12 Business Studies. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

Q.1 Which one of the following is not a function of financial market?

(a) Mobilisation of savings
(b) Price determination of securities
(c) Floating of companies
(d) Lowering transaction cost

(c) Floating of companies

Q.2 Which one of the following is a money market instrument?

(a) Unit of mutual fund
(b) Debenture
(c) Bond
(d) Treasury bill

(d) Treasury bill

Q.3 Primary and secondary markets develop simultaneously because they

(a) complement each other.
(b) complement with each other
(c) control each other.
(d) function independently.

(a) complement each other.

Q.4 Secondary market is in the form of

(a) stock exchange.
(b) money market
(c) new issue market.
(d) commercial exchange

(a) stock exchange.

Q.5 SEBI is a regulator of

(a) capital market.
(b) money market
(c) commodity market.
(d) overseas market

(a) capital market.

Q.6 _ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.

(a) Treasury bill
(b) Commercial paper
(c) Certificate of deposit
(d) Promissory note

(b) Commercial paper

Q.7 _ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.

(a) Treasury Bill
(b) Commercial Paper
(c) Certificate of Deposit
(d) Call Money

(d) Call Money

Q.8 _ is the market which helps existing investors to sell their securities.

(a) Primary market
(b) Secondary market
(c) Capital market
(d) Commodity market

(b) Secondary market

Q.9 _ is the institution which provides a platform for trading of existing securities having long-term maturity.

(a) SEBI
(b) WTO
(c) Stock exchange
(d) RBI

(c) Stock exchange

Q.10 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

(b) 24 hours

Q.11 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

(b) Pay-out day

Q.12 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.

(b) PAN number

Q.13 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.

(b) It is situated at specific locations.

Q.14 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.

(c) They carry high risk of default.

Q.15 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.

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

Q.16 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.

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

Q.17 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.

(a) Is also known as the old issues market.

Q.18 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.

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

Q.19 It acts like a bank and keeps securities in electronic form on behalf of the investor,

(a) Depository Participant
(b) Depository
(c) Stock exchange
(d) None of the above

(b) Depository

Q.20 The process of holding shares in electronic form is known as

(a) Demutualisation
(b) Dematerialisation
(c) Speculation
(d) None of the above

(b) Dematerialisation

Q.21 Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.

(a) Providing liquidity and marketability to existing securities.
(b) Safety of transaction.
(c) Pricing of security.
(d) Spreading of equity cult.

(c) Pricing of security.

Practicing NCERT Business Studies MCQs With Answers Pdf Class 12 is one of the best ways to prepare for the CBSE Class 12 board exam. There is no substitute for consistent practice whether one wants to understand a concept thoroughly or one wants to score better. If you have any queries regarding The Solid State CBSE Class 12 Business Studies MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

Class 12 Business Studies MCQ with Answers Chapter Wise

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top