Class 12 Finance MCQ Chapter 9 Capital Market Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 9 Capital Market Question Answer and select need one. Class 12 Finance MCQ Chapter 9 Capital Market Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ Chapter 9 Capital Market
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.
Capital Market
Chapter: 9
| MCQ |
1. What is the main function of the capital market?
(i) Providing short-term funds.
(ii) Facilitating long-term borrowing and lending of funds.
(iii) Providing daily liquidity for investors.
(iv) Helping individuals in day-to-day transactions.
Ans: (ii) Facilitating long-term borrowing and lending of funds.
2. Which of the following instruments is commonly traded in the capital market?
(i) Treasury bills.
(ii) Shares.
(iii) Commercial papers.
(iv) Certificate of deposits.
Ans: (ii) Shares.
3. The maturity period of securities in the capital market is usually ________.
(i) Less than one year.
(ii) Over one year.
(iii) Six months to two years.
(iv) Not fixed.
Ans: (ii) Over one year.
4. What is the primary market?
(i) A market for buying and selling existing securities.
(ii) A market for new issues of securities.
(iii) A market for derivatives.
(iv) A market for government bonds only.
Ans: (ii) A market for new issues of securities.
5. Which of the following is NOT a function of the capital market?
(i) Providing funds for business expansion.
(ii) Facilitating day-to-day operations.
(iii) Enabling resource allocation.
(iv) Providing long-term funds for capital-intensive projects.
Ans: (ii) Facilitating day-to-day operations.
6. Which of the following is a major institution in the capital market?
(i) Reserve Bank of India.
(ii) Stock exchanges.
(iii) Public sector banks.
(iv) Money lenders.
Ans: (ii) Stock exchanges.
7. Who are the primary suppliers of funds in the capital market?
(i) Corporations.
(ii) Individuals and institutional investors.
(iii) Government bodies.
(iv) Non-banking financial institutions.
Ans: (ii) Individuals and institutional investors.
8. What is the secondary market?
(i) A market for buying and selling new securities.
(ii) A market for purchasing and selling existing securities.
(iii) A market for government-issued securities.
(iv) A market for corporate loans.
Ans: (ii) A market for purchasing and selling existing securities.
9. Capital markets provide funds for ________.
(i) Short-term business operations.
(ii) Fixed capital investments.
(iii) Daily liquidity needs.
(iv) Agricultural activities.
Ans: (ii) Fixed capital investments.
10. What is a key characteristic of capital markets?
(i) They deal with short-term securities.
(ii) They offer loans to individuals.
(iii) They deal with long-term investment instruments.
(iv) They only provide funding for governments.
Ans: (iii) They deal with long-term investment instruments.
11. Which of the following securities is considered a long-term investment in the capital market?
(i) Treasury Bills.
(ii) Bonds.
(iii) Commercial Paper.
(iv) Bank Certificates of Deposit.
Ans: (ii) Bonds.
12. Which of the following markets is part of the capital market?
(i) Money market.
(ii) Foreign exchange market.
(iii) Stock exchange.
(iv) Commodity market.
Ans: (iii) Stock exchange.
13. The capital market helps in the promotion of ________ economic growth.
(i) Balanced.
(ii) Fluctuating.
(iii) Immediate.
(iv) Short-term.
Ans: (i) Balanced.
14. Which of the following is NOT a feature of the capital market?
(i) Long-term funding.
(ii) Deals with financial instruments like bonds and shares.
(iii) Provides quick liquidity.
(iv) Involves a higher degree of risk.
Ans: (iii) Provides quick liquidity.
15. The capital market is crucial for financing ________ projects.
(i) Short-term business operations.
(ii) Fixed capital and infrastructure projects.
(iii) Daily liquidity needs.
(iv) Routine expenses.
Ans: (ii) Fixed capital and infrastructure projects.
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