Quiz 3

Introduction to Business (Arsalan Ahmed) Student Name:___________________________

Tick the appropriate option. Registration ID: ___________

1. Any object that is portable, divisible, durable and stable and that serves as a medium of exchange, a
store of value and a unit of account is termed as ______________.
A. Cash
B. Cheque
C. Money
D. Bank deposits

2. Before the evolution of money in the form of coins and cash, _____________was used by the people
for trading activities.
A. Cheque
B. Barter system
C. Negotiation system
D. Mediation system

3. None-deposit institution that buys and sells stock and bonds both for investors and for their own
accounts are known as _______________.
A. Securities investment dealers
B. Safekeeping dealers
C. Commercial banks
D. Commercial forex dealers

4. Among the following, which is not one of the function of Commercial banks?
A. Accepting deposits
B. Giving loans
C. Promoting exports
D. All of the above
E. None of the above

5. Among the following statements, which one correctly describes the function of the State Bank?
A. Overseeing the banking community and controlling the money supply
B. Ignoring the banking community and controlling the money supply
C. Overseeing the banking community and ignoring the money supply
D. Ignoring the banking community and money supply and just focusing on their own business
6. Market in which the newly issued stocks and bonds are sold is ________________.
A. Secondary securities market
B. Stock exchange
C. Primary securities market
D. Commodity futures market

7. ____________ is the value of a common stock expressed as total shareholders’ equity divided by the
number of shares of stock.
A. Par value
B. Market value
C. Book value
D. Trade volume

8. Which of the following is considered as the top stock exchange in the world?
A. London stock exchange
B. Frankfurt Stock Exchange (Deutsche Börse)
C. Tokyo stock exchange
D. New York stock exchange

9. _____________ are retired when the issuer redeems portions of the issue at different preset dates.
A. Callable bonds
B. Serial bonds
C. Convertible bonds
D. Exchangeable bonds

10. The market in which the future contracts are traded in known as _________________.
A. Oil market
B. Gold market
C. Commodity market
D. Copper and cotton market