Financial Markets

Which of the following is the function of financial market?

• Mobilization of savings

• Price fixation

• Provide liquidity to financial assets

• All of the above

.........................is the organizations, institutions that provide long term funds.

• Capital market

• Money market

• Primary market

• Secondary market

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

• The funds are raised for a short period of time.

• Both debt and equity funds can be raised

• It is classified into two types.

• Most trading is through centralized exchange

Some of the key elements in the financial markets are

• lenders and borrowers

• Financial Intermediaries

• Financial instruments

• All of the mentioned options

The short term financial instruments traded in money market is commonly called

• Call Money

• Certificate of deposits

• Commercial paper

• Trade bills

Hedging and speculative investments are the key characteristics of

• Commodity market

• Share market

• Money market

• Both (a) and (b)

The types of assets being traded, identified as 'Hard' and 'soft' are representative of ...............market

• Derivative

• Commodity

• Share

• None of the listed options

Which of the following statements is not true with regard to stock exchange?

• It provides a platform for buying and selling of new securities

• It curbs the marketability of the securities.

• By providing a ready market, it extends liquidity to the securities.

• It provides a platform for buying and selling of old securities.`

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

• Primary Market

• Capital Market

• Secondary Market

• Money Market

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.

• Providing liquidity and marketability to existing securities.

• Safety of transaction.

• Pricing of security.

• Spreading of equity cult