CBSE Class 12 - Business Studies - Financial Markets (MCQs) (#eduvictors)(#class12BusinessStudies)

Financial Markets (MCQs)

Class 12 - Business Studies

Q1. Primary and secondary markets

(a) Compete with each other
(b) Complement each other
(c) Function independently
(d) Control each other


Q2. Financial market facilitates business firms

(a) To raise funds
(b) To recruit workers
(c) To make more sales
(d) To minimize fund requirement



Q3. The total number of Stock Exchange in India is

(a) 20
(b) 21
(c) 22
(d) 23





Q4. Capital market is a market for 

(a) Short Term Finance
(b) Medium Term Finance
(c) Long Term Finance
(d) Both Short Term and Medium Term Finance


Q5. The settlement cycle in NSE is

(a) T+5
(b) T+3
(c) T+2
(d) T+1


Q6. Primary market is also called as 

(a) Secondary market
(b) Money market
(c) New Issue Market
(d) Indirect Market


Q7. The National Stock Exchange of India was recognized as stock exchange in the year

(a) 1992
(b) 1993
(c) 1994
(d) 1995


Q8. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs 

(a) Immediately
(b) In the future
(c) Uncertain
(d) After one month


Q9. NSE commenced futures trading in the year

(a) 1999
(b) 2000
(c) 2001
(d) 2002


Q10: How many times a security can be sold in a secondary market? 

(a) Only one time
(b) Two time
(c) Three times
(d) Multiple times


Q11: Clearing and settlement operations of NSE are carried out by

(a) NSDL
(b) NSCCL
(c) SBI
(d) CDSL


Q12: OTCEI was started on the lines of

(a) NASDAQ
(b) NYSE
(c) NASAQ
(d) NSE


Q13: To be listed on OTCEI, the minimum capital requirement for a company is

(a) Rs. 5 crores
(b) Rs. 3 crores
(c) Rs. 6 crores
(d) Rs. 1 crore


Q14: A Treasury Bill is basically:

(a) An instrument to borrow short-term funds
(b) An instrument to borrow long-term funds
(c) An instrument of capital market
(d) None of the above


Answers: 
1: (b) Complement each other
2: (a) To raise funds
3: (d) 23
4: (c) Long Term Finance
5: (c) T+2
6: (c) New Issue Market
7: (b) 1993
8: (a) Immediately
9: (b) 2000
10: (d) Multiple times
11: (b) NSCCL
12: (a) NASDAQ
13: (b) Rs. 3 crores
14: (a) An instrument to borrow short-term funds

☛See also:
CH9: Financial Management (V Short Q&A)
CH9: Financial Management (Important Terms & Keywords)

CH10: Financial Markets (V Short Q & A)
         Capital Market vs Money Market
         Instruments of Money Market