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Introduction Financial Markets Model Question Paper

12th Standard

    Reg.No. :
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Commerce

Time : 02:00:00 Hrs
Total Marks : 50
    6 x 1 = 6
  1. Financial market facilitates business firms________.

    (a)

    To rise funds

    (b)

    To recruit workers

    (c)

    To make more sales

    (d)

    To minimize fund requirement

  2. 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

  3. 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

  4. In primary markets, first time issued shares to be publicly traded, in stock markets is considered as

    (a)

    traded offering

    (b)

    Public markets

    (c)

    issuance offering

    (d)

    initial public offering

  5. Type of structured market through which funds flow with help of financial instruments such as bonds and stocks is classified as

    (a)

    financial markets

    (b)

    flow market

    (c)

    funds market

    (d)

    capital market

  6. Process of selling and buying of stocks and bonds is classified as

    (a)

    e-trade

    (b)

    stock trade

    (c)

    both 'a' and 'b'

    (d)

    none of these

  7. 2 x 2 = 4
  8. Assertion (A) Government need funds to provide goods and services to the people.
    Reaso (R) . Financial market facilitates business firms as well as governments to raise the needed funds by issuing an selling different instruments. Select the correct answer.
    Codes:
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false.
    (d) (A) is false, but (R) is true.

  9. Assertion (A) : Marketable assets are those which can be easily transferred from one person to another without much hindrance.
    Reason (R) : Shares of listed companies and government securities are the examples of marketable assets.
    Codes:
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false.
    (d) (A) is false, but (R) is true.

  10. 2 x 1 = 2
  11. (i) Business firms need large funds to undertake a desired project.
    (ii) Financial market also helps investors to facilitate them to invest surplus funds and earn a return.
    (iii) The Indian financial system can be broadly classified into organized sector and unorganized sector.
    (a) (i) is correct
    (b) (i) and (ii) are correct
    (c) (ii) and (iii) are correct
    (d) (i), (ii) and (iii) are correct

  12. (i) Equity market is the financial market for trading in equity shares of companies.
    (ii) Stock exchange is an important institution in the secondary market.
    (iii) Exchange Traded Market is a centralized organisation (stock exchange) with standardized procedures.
    (a) (i) is correct
    (b) (ii) and (iii) are correct
    (c) (ii) is correct
    (d) (i), (ii) and (iii) are correct

  13. 1 x 2 = 2
  14. (a) Capital formation
    (b) Sale mechanism
    (c) Information
    (d) Money market

  15. 1 x 2 = 2
  16. (a) Debt market - Bonds
    (b) Money market - Commercial paper
    (c) Capital market - Stock exchange
    (d) Equity market - Equity shares of companies

  17. 5 x 2 = 10
  18. What are the components of organized sectors?

  19. What is equity market?

  20. How is price decided in a Secondary Market?

  21.  What is money market?

  22. What do you mean by capital market?

  23. 3 x 3 = 9
  24. Differentiate spot market from future market .

  25. Write a note on Secondary Market.

  26. Explain the classification of financial assets.

  27. 3 x 5 = 15
  28. Distinguish between New issue market and Secondary market. (any 5)

  29. Discuss the role of Financial Market.

  30. Discuss the various types of Financial markets.

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