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Capital Market

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Capital Market is a market for

a)

long term assets

b)

short term assets

c)

Medium term assets

d)

none of the above

2.
What are stocks?
a)
Shares of ownership in a corporation.
b)
Shares of trading in a corporation.
c)
Bonds with potential to make money.
d)
Bonds that are traded.
3.
Why do companies issue stocks?
a)
To create and investment opportunity into other businesses.
b)
To increase employee cooperation and an operating level.
c)
To be traded individually
d)
To raise money for economic investment and to fund operating costs.
4.
What is an IPO?
a)
Initial Polling Office
b)
Initial Public Offering
c)
International Public Office
d)
Increasing Public Opportunity
5.
What is a financial institution?
a)
A firm that makes money off of selling products
b)
An intermediary that helps channel savings into economic investments
c)
A corporation that typically falls into debt
d)
A primary source of selling company investment strategy
6.

The primary market is also called

a)

New issue market

b)

IPo

c)

stock exchange

d)

over the counter market

7.

The return of a share holder is

a)

Rate of interest

b)

Dividend

c)

Discount rate

d)

Discount value

8.

The instrument used in capital market is

a)

Equity

b)

Commercial paper

c)

Treasury Bill

d)

All the above

9.

Statutory body governing the capital market

a)

Commercial Banks

b)

RBI

c)

SEBI

d)

IDBI

10.

Money added into a bank account.

a)

withdraw

b)

deposit

c)

cash

d)

cheque

11.

----------------- is based on the uncertain event whose result determined by chance or accident

a)

Gambling

b)

Speculation

c)

Dead cat bouncing

d)

Market fluctuations

12.

When a bear is unable to meet his commitment immediately he becomes--------------

a)

Stag

b)

Cat

c)

Duck

d)

Bear

13.
A share of common stock is an example of:
a)
a capital security.
b)
a money market security.
14.
Commercial paper is an example of a:
a)
capital market instrument.
b)
money market instrument.
15.

Finance companies raise funds in the money market by selling

a)

commercial paper

b)

federal funds

c)

negotiable certificates of deposits

d)

Eurodollars

16.

Compared to money market securities, capital market securities have

a)

more liquidity

b)

longer maturity

c)

lower yields

d)

less risk

17.

Actions that are done for someone else

a)

Needs

b)

Wants

c)

Services

d)

Profit

18.

Makes goods or provides services

a)

Demand

b)

Producer

c)

Consumer

d)

Wants

19.

A person who purchases goods or services for personal use

a)

Producer

b)

Consumer

c)

Supply

d)

Demand

20.

A schedule of how much consumers are willing and able to buy at a price

a)

Needs

b)

Wants

c)

Supply

d)

Demand