Class 12 Business Studies Chapter 10 MCQ and Important Questions of Financial Markets for the academic session 2023-24. Class 12 Business Studies MCQ are important study material for CBSE as well as other State board students during the exam preparation. Class 12 Business Studies Chapter 10 Solutions.
Class 12 Business Studies Chapter 10 MCQ
The settlement cycle in stock exchange is
SEBI was established in
……… is the market where “second hand” securities are bought and sold for investment and speculation.
Functions of Financial Markets
- Mobilisation of Savings and channeling them into the most productive uses.
- Helps in Price Determination.
- Provides Liquidity to Financial Assets.
- Reduces the Cost of Transactions.
Which of the following is not a money market security?
After the trade has been executed, the broker issues a Contract Note to the investor within
It is the market for short term funds which deals in assets whose period of maturity is upto 12 months.
Instruments of Money Market
- Treasury Bills
- Commercial Paper
- Call Money
- Certificate of Deposit
- Commercial Bill
Who issues a treasury bill?
Only high net worth companies can use this method to finance/borrow funds.
The method by which banks borrow from each other to adhere to CRR requirement
A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
Floatation of New Issues in Primary Market
1. Offer through Prospectus/ Initial Pubic Offer.
2. Offer for Sale.
3. Private Placements.
4. Rights Issue.
Companies finance their credit sales using this method of finance.
Which of the following are participants representing capital market?
A company can raise capital through the primary market by way of
Functions of a Stock Exchange
1. Providing liquidity and Marketability to Existing Securities.
2. Pricing of Securities.
3. Safety of Transaction.
4. Contributes to Economic Growth.
5. Spreading of Equity Culture.
6. Providing Scope for Speculation.
Which type of functions does SEBI performs?
This number is assigned to each transaction by the stock exchange and printed on the contract note.
Which of the below mentioned statement is a protective function of stock exchange?
The ………. keeps securities in electronic form on behalf of the investor?
Trading and Settlement Procedure
1. Selection of Broker.
2. Opening Demat Account with Depository.
3. Placing the order.
4. Executing the order.
Just as the topics planning and controlling are inter-related, the topics financial management and financial markets related to each other. MCQs can be made in such a manner that they cover both topics.
Is it sufficient to revise the chapter by doing only MCQs?
MCQs help the students in revising the topics. They are an aid or supplement to boost knowledge of students. However, if the examination is completely MCQs based, then the important of MCQs rises manifold.
What are the important sub-topics in this chapters financial market for preparing MCQs?
The sub-topics money market instruments, difference between capital market and money market and trading procedure on stock exchange are to be learnt thoroughly.