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Test: Introduction to Financial Markets and Institutions - B Com MCQ


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10 Questions MCQ Test Financial Markets and Institutions - Test: Introduction to Financial Markets and Institutions

Test: Introduction to Financial Markets and Institutions for B Com 2024 is part of Financial Markets and Institutions preparation. The Test: Introduction to Financial Markets and Institutions questions and answers have been prepared according to the B Com exam syllabus.The Test: Introduction to Financial Markets and Institutions MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Introduction to Financial Markets and Institutions below.
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Test: Introduction to Financial Markets and Institutions - Question 1

What is the primary function of the money market?

Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 1
The primary function of the money market is to facilitate the trading of short-term financial assets, including treasury bills and commercial paper.
Test: Introduction to Financial Markets and Institutions - Question 2

What are the four components of the Indian Financial System?

Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 2
The Indian Financial System comprises four main components: Financial Services, Financial Markets, Financial Intermediaries, and Financial Instruments.
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Test: Introduction to Financial Markets and Institutions - Question 3

Which financial instrument represents a claim to the payment of a sum of money in the future?

Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 3
Treasury Bills represent a claim to the payment of a sum of money from the government in the future. They are short-term debt instruments.
Test: Introduction to Financial Markets and Institutions - Question 4
What does the term "Call Money" refer to in the money market?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 4
"Call Money" refers to money borrowed or lent for a day in the money market.
Test: Introduction to Financial Markets and Institutions - Question 5
Which market deals with multicurrency requirements and the exchange of currencies?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 5
The Forex Market, also known as the Foreign Exchange Market, deals with multicurrency requirements and the exchange of currencies.
Test: Introduction to Financial Markets and Institutions - Question 6
What is the primary role of the capital market?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 6
The primary role of the capital market is to finance long-term investments, including equity and debt instruments.
Test: Introduction to Financial Markets and Institutions - Question 7
Which financial instrument has both the features of equity and debenture?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 7
Convertible Debentures have both the features of equity (can be converted into shares) and debenture (a debt instrument).
Test: Introduction to Financial Markets and Institutions - Question 8
In India, which regulatory body regulates the capital market?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 8
The capital market in India is regulated by the Securities and Exchange Board of India (SEBI), which oversees various aspects of securities trading and investments.
Test: Introduction to Financial Markets and Institutions - Question 9
What does the term "Financial Instruments" encompass?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 9
Financial Instruments include securities, debts, and ownership rights, representing claims to payment or assets.
Test: Introduction to Financial Markets and Institutions - Question 10
What is the primary role of financial intermediaries?
Detailed Solution for Test: Introduction to Financial Markets and Institutions - Question 10
Financial intermediaries play a crucial role in facilitating the transfer of funds from those with surplus funds (lenders) to those in need of funds (borrowers).
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