Here are some MCQs on Capital Markets & Debt Markets
1. What is the primary function of capital markets?
a. Facilitating short-term borrowing and lending
b. Trading of stocks and bonds
c. Exchange of foreign currencies
d. Buying and selling commodities
2. Debt securities with a maturity of more than 1 year are commonly known as:
a. Treasury bills
b. Corporate bonds
c. Commercial papers
d. Money market funds
3. What is the role of underwriters in capital markets?
a. Trading securities on behalf of investors
b. Providing loans to companies for capital investments
c. Facilitating the issuance and sale of securities
d. Regulating the functioning of stock exchanges
4. Which of the following is an example of a primary market transaction?
a. Buying shares of a company from another investor
b. Purchasing government bonds in the secondary market
c. Participating in an initial public offering (IPO)
d. Trading options contracts on a stock exchange
5. The process of converting private company shares into publicly traded shares is called:
a. Stock dilution
b. Reverse merger
c. Initial public offering (IPO)
d. Secondary offering
