Financial Markets is the Twenty Ninth Unit (Unit 29) under Module D: Financial Products and Services of Paper – I (Indian Economy & Indian Financial System)
If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB MCQ Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.
Practice MCQ Question and Answer – Financial Markets
Quiz 1
1. Which of the following determines the price of a commodity in a Financial Market ?
….
Answer is (c)
Both the supply and demand side decisions
2. Which of the following segment of the financial market primarily deals with short-term borrowing and lending ?
….
Answer is (b)
Money market
3. Match the Column
| Terms | Definition | ||
| 1. | Supply side | A. | Consumers making purchase decisions |
| 2. | Demand side | B. | Producers making production decisions |
| 3. | Price formation | C. | Result of interaction between supply and demand |
| 4. | Financial market | D. | Place where commodities are bought and sold |
….
Answer is (d)
4. Suppose there is an increase in the demand for oil, but the supply remains constant. What will likely happen to the price of oil in a financial market ?
….
Answer is (a)
Price will increase
5. If a company wants to raise funds by issuing shares for a long-term project then in which segment of the financial market should it participate ?
….
Answer is (d)
Capital market
6. Which of the following are major segments of the financial market ?
- Capital market
- Derivatives market
- Money market
- Real estate market
….
Answer is (c)
Capital market, Derivatives market and Money market
7. What happens to the price of the commodity in a market when supply is higher than demand ?
….
Answer is (a)
Price decreases
8. What does the term ‘Financial Market’ abstractly refer to ?
….
Answer is (d)
Purchase and sale transactions of a commodity
9. Which of the following is NOT a common segment of the financial market ?
….
Answer is (c)
Retail market
10. An investor is interested in managing risk by entering into contracts based on the future price of commodities. Which segment of the financial market will they use ?
….
Answer is (b)
Derivatives market
Quiz Numbers
Read More: MCQ Type Questions and Answers from Paper – I (Indian Economy & Indian Financial System)
Module A: Indian Economic Architecture
- An overview of Indian Economy
- Sectors of the Indian Economy
- Economic Planning in India & NITI Aayog
- Role of Priority Sector and MSME in the Indian Economy
- Infrastructure including Social Infrastructure
- Globalisation – Impact on India
- Economic Reforms
- Foreign Trade Policy, Foreign Investments and Economic Development
- International Economic Organizations (World Bank, IMF, etc.)
- Climate change, Sustainable Development Goals (SDGs)
- Issues facing Indian Economy
Module B – Economic Concepts Related to Banking
- Fundamentals of Economics, Microeconomics, Macroeconomics and Types of Economies
- Supply and Demand
- Money Supply and Inflation
- Theories of Interest
- Business Cycles
- Monetary Policy and Fiscal Policy
- System of National Accounts and GDP Concepts
- Union Budget
Module C – Indian Financial Architecture
- Indian Financial System – An Overview
- Indian Banking Structure
- Banking Laws – Reserve Bank of India Act, 1934 & Banking Regulation Act, 1949
- Development Financial Institutions
- Micro Finance Institutions
- Non-Banking Financial Companies (NBFCs)
- Insurance Companies
- Indian Financial System – Regulators and Their Roles
- Reforms & Developments in the Banking sector
Module D – Financial Products and Services
- Financial Markets
- Money Markets
- Capital Markets and Stock Exchanges
- Fixed Income Markets – Debt and Bond Markets
- Foreign Exchange Markets
- Interconnection of Markets and Market Dynamics
- Merchant Banking Services
- Derivatives Market
- Factoring, Forfaiting and Trade Receivables Discounting System (TReDS)
- Venture Capital
- Lease Finance and Hire Purchase
- Credit Rating and Credit Scoring
- Mutual Funds
- Insurance Products
- Pension Products
- Para Banking and Financial Services Provided by Banks
- Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)