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Business Studies-[Class 12-MCQS ]-Chapter 10 Financial Market
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Business Studies-[Class 12-MCQS ]-Chapter 10 Financial Market
1
Which of the following statements is not true with regard to money market?
A
 It involves low market risk.
B
It is situated at specific locations.
C
Deals in unsecured and short-term debt instruments.
D
The instruments traded are highly liquid.
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✅ Correct Answer: 2
2
Which of the following statements is not true with regard to Treasury bills?
A
Are issued in the form of a promissory note.
B
They are highly liquid and have assured yield
C
They carry high risk of default.
D
They are available for a minimum amount of ₹25,000 and in multiples thereof.
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✅ Correct Answer: 3
3
Which of the following statements is not true with regard to Commercial paper?
A
Is a long-term unsecured promissory note with a fixed maturity period.
B
It usually has a maturity period of 15 days to one year.
C
It is sold at a discount and redeemed at par.
D
Companies use this instrument for bridge financing.
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✅ Correct Answer: 1
4
Which of the following statements is not true with regard to Call money?
A
It is short-term finance repayable on demand.
B
Its maturity period ranges from one day to fifteen days.
C
There is a direct relationship between call rates and other short-term money market instruments.
D
It is used for inter-bank transactions.
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✅ Correct Answer: 3
5
Which of the following statements is not true with regard to primary market?
A
Is also known as the old issues market.
B
It facilitates the transfer of investible funds from savers to entrepreneurs.
C
It deals with new securities being issued for the first time.
D
It facilitates the transfer of investible funds from savers to entrepreneurs.
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✅ Correct Answer: 1
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