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Worksheets

Financial Markets

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What type of instruments are traded in a Money Market?

a)

Call money

b)

Treasury bills

c)

Commercial bills

d)

All of the above

2.

The expected rate of return of the money market is ______

a)

Very high

b)

Less

c)

Zero

d)

None of the above

3.

A treasury bill is an instrument of:

a)

Dividend

b)

Short term debt

c)

Long term debt Interest

4.

Treasury bills are also known as:

a)

Fixed interest Bonds

b)

Flat Rate Bonds

c)

Low-Interest Bonds

d)

Zero-Coupon Bonds

5.

A commercial bill is used to _____________

a)

Finance the working capital requirements

b)

Meet the short term debt

c)

Meet the long term debt

d)

Pay the interest

6.

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

a)

Commercial Bill

b)

Call money

c)

None of these

d)

Certificate of deposit

7.

A capital market is ideal when:

a)

Financial institutions are sufficiently developed

b)

Finance is available at a reasonable cost

c)

Capital is most productively allocated

d)

All of these

8.

Money market deals in _____________________

a)

Medium-term securities

b)

Short term Securities

c)

Long term Securities

d)

None of these

9.

Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.

a)

Offer through prospectus

b)

Offer for sale

c)

Rights issue

d)

Private placement

10.

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

11.

It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.

a)

PAN number

b)

Unique Order Code

c)

Contract Note

d)

None of the above

12.

The process of holding shares in electronic form is known as

a)

Demutualisation

b)

Dematerialisation

c)

Speculation

d)

None of the above

13.

PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.

a)

Private placement

b)

Offer through prospectus

c)

Offer for sale

d)

Rights issue

14.

Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.

a)

Private placement

b)

Offer through prospectus

c)

Offer for sale

d)

All of the above

15.

A company can raise capital through the primary market in the form of

a)

Equity shares

b)

Preference shares

c)

Debentures

d)

All of the above