Business Studies MCQ Class 12 Chapter 10 | Financial Markets | Business Studies Quiz for Class 12 and Other Competitive Exams

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Business Studies MCQ Class 12 Chapter 10


1. 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

View Answer

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


2. 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

View Answer

(c) Call money


3. 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

View Answer

(a) Depository participant


4. Primary and secondary markets develop simultaneously because they
(a) complement each other
(b) complement with each other
(c) control each other
(d) function independently

View Answer

(a) complement each other


5. 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

View Answer

(a) Regulatory function


6. Secondary market is in the form of
(a) stock exchange
(b) money market
(c) new issue market
(d) commercial exchange

View Answer

(a) stock exchange


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

View Answer

(b) Providing liquidity and marketability to existing securities


8. ______ 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

View Answer

(b) Commercial paper


9. 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

View Answer

(c) Pricing of security


10. 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

View Answer

(a) Commercial bill


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