McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) , Master of Business Administration (MBA) .
Chapters
| 351. |
Bills drawn and accepted payable after three months are called |
| A. | Usance bills |
| B. | T-bills |
| C. | Clean bills |
| D. | Supply bills |
| Answer» A. Usance bills | |
| 352. |
The market which helps commercial banks to maintain their SLR requirement is |
| A. | Call loan market |
| B. | T-bills market |
| C. | Acceptance market |
| D. | Commercial bill market |
| Answer» A. Call loan market | |
| 353. |
Bill Market Scheme in India was introduced in the year |
| A. | 1972 |
| B. | 1952 |
| C. | 1969 |
| D. | 1982 |
| Answer» B. 1952 | |
| 354. |
Adhoc T-bills are always issued in favour of-------- |
| A. | State government |
| B. | Commercial banks |
| C. | Treasuries |
| D. | RBI |
| Answer» D. RBI | |
| 355. |
The certificate which evidences an unsecured corporate debt of short-term maturity |
| A. | Certificate of Deposit |
| B. | Commercial paper |
| C. | Secured Premium Notes |
| D. | Interbank participation Certificate |
| Answer» B. Commercial paper | |
| 356. |
Major players of Indian money market is |
| A. | Central bank |
| B. | Co-operative banks |
| C. | Commercial banks |
| D. | Indigenous banks |
| Answer» C. Commercial banks | |
| 357. |
-------- is the suitable method where small companies issue shares |
| A. | Offer for sale |
| B. | Private placement |
| C. | Issue by prospectus |
| D. | All the above |
| Answer» A. Offer for sale | |
| 358. |
Zero interest bonds are always issued |
| A. | At premium |
| B. | At discount |
| C. | With detachable warrant |
| D. | Any of the above |
| Answer» B. At discount | |
| 359. |
-------- is a guarantee for marketability of shares |
| A. | Listing |
| B. | Underwriting |
| C. | Registration |
| D. | Issue by prospectus |
| Answer» B. Underwriting | |
| 360. |
Which one of the following is /are not function of NIM |
| A. | Origination |
| B. | Underwriting |
| C. | Distribution |
| D. | Listing |
| Answer» D. Listing | |
| 361. |
BOLT was introduced by BSE in the year |
| A. | 1990 |
| B. | 1995 |
| C. | 1992 |
| D. | 1999 |
| Answer» B. 1995 | |
| 362. |
-------- is a permission to quote securities officially on the trading floor of stock exchange |
| A. | Origination |
| B. | Underwriting |
| C. | Distribution |
| D. | Listing |
| Answer» D. Listing | |
| 363. |
The number of shares which are less than market lots are called |
| A. | Grey lot |
| B. | Odd lot |
| C. | Tag lot |
| D. | Tied lot |
| Answer» B. Odd lot | |
| 364. |
Rolling Settlement system was introduced by SEBI in the year |
| A. | 1994 |
| B. | 1998 |
| C. | 1996 |
| D. | 1999 |
| Answer» B. 1998 | |
| 365. |
The facility to carry forward a transaction from one settlement period to another is called --- ------ transaction |
| A. | Hand delivery |
| B. | Badla |
| C. | Cornering |
| D. | Arbitrage |
| Answer» B. Badla | |
| 366. |
The device adopted to make profit out of price differences in two different markets |
| A. | Cornering |
| B. | Wash sales |
| C. | Rigging |
| D. | Arbitrage |
| Answer» D. Arbitrage | |
| 367. |
A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is |
| A. | Sub-broker |
| B. | Commission broker |
| C. | Authorised clerk |
| D. | Remisiers |
| Answer» C. Authorised clerk | |
| 368. |
------------- is also known as Remisiers and Half-commission man |
| A. | Sub-broker |
| B. | Commission broker |
| C. | Authorised clerk |
| D. | Jobbers |
| Answer» A. Sub-broker | |
| 369. |
An order for the purchase of securities at a fixed price is known as |
| A. | Limit order |
| B. | Open order |
| C. | Discretionary order |
| D. | Stop loss order |
| Answer» A. Limit order | |
| 370. |
Speculator who neither buy nor sell securities in the market, but still trade on them are called |
| A. | Wolves |
| B. | Stag |
| C. | Bull |
| D. | Bear |
| Answer» B. Stag | |
| 371. |
The process of holding the entire supply of a particular security with a view to dictating terms is called |
| A. | Cornering |
| B. | Wash sales |
| C. | Rigging |
| D. | Arbitrage |
| Answer» A. Cornering | |
| 372. |
------------ market deals in unlisted securities |
| A. | Blue chip market |
| B. | Bear market |
| C. | Grey market |
| D. | Bull market |
| Answer» C. Grey market | |
| 373. |
When purchases of securities are more than sales of securities, the market is called |
| A. | Bullish |
| B. | Bearish |
| C. | Grey |
| D. | Odd |
| Answer» A. Bullish | |
| 374. |
When sales of securities are more than purchases of securities, the market is called |
| A. | Bullish |
| B. | Bearish |
| C. | Grey |
| D. | Odd |
| Answer» B. Bearish | |
| 375. |
--------- is the charges paid by a bull speculator to the other party for obtaining carry over facility |
| A. | Backwardation |
| B. | Contango |
| C. | Spread |
| D. | Margin |
| Answer» B. Contango | |
| 376. |
_______ is a link between savers & borrowers, helps to establish a link between savers & investors |
| A. | Marketing |
| B. | Financial market |
| C. | Money market |
| D. | None of these |
| Answer» B. Financial market | |
| 377. |
Which of the following is the function of financial market? |
| A. | Mobilization of savings |
| B. | Price fixation |
| C. | Provide liquidity to financial assets |
| D. | All of the above |
| Answer» D. All of the above | |
| 378. |
__________ is the organisations, institutions that provide long term funds. |
| A. | Capital market |
| B. | Money market |
| C. | Primary market |
| D. | Secondary market |
| Answer» A. Capital market | |
| 379. |
When securities are allotted to institutional investors & some selected individuals is referred to as _________. |
| A. | Initial public offer |
| B. | Offer through prospectus |
| C. | Private placement |
| D. | Offer for sale |
| Answer» C. Private placement | |
| 380. |
Stock exchange is known as __________ market for securities. |
| A. | Primary market |
| B. | Secondary market |
| C. | Capital market |
| D. | None of the above |
| Answer» B. Secondary market | |
| 381. |
_________ is a market for lending & borrowing of short term funds. |
| A. | Money market |
| B. | Primary market |
| C. | Capital market |
| D. | All of the above |
| Answer» A. Money market | |
| 382. |
____________ is also called zero coupon bond. |
| A. | Trade bills |
| B. | Call money |
| C. | Treasury bills |
| D. | Commercial papers |
| Answer» C. Treasury bills | |
| 383. |
Which of the following are the instruments of money market? |
| A. | Call money |
| B. | Certificate of deposits |
| C. | Trade bills |
| D. | All of the above |
| Answer» A. Call money | |
| 384. |
The short term financial instruments traded in money market is commonly called |
| A. | Call money |
| B. | Certificate of deposits |
| C. | Trade bills |
| D. | Commercial Paper |
| Answer» D. Commercial Paper | |
| 385. |
Which of the following statements is not true with regard to money market? |
| A. | It involves low market risk. |
| B. | It is situated at specific locations. |
| C. | Deals in unsecured and short-term debt instruments. |
| D. | The instruments traded are highly liquid. |
| Answer» B. It is situated at specific locations. | |
| 386. |
Which of the following statements is not true with regard to Treasury bills? |
| A. | Are issued in the form of a promissory note. |
| B. | They are highly liquid and have assured yield |
| C. | They carry high risk of default. |
| D. | They are available for a minimum amount of ₹25,000 and in multiples thereof. |
| Answer» C. They carry high risk of default. | |
| 387. |
Which of the following statements is not true with regard to Commercial paper? |
| A. | Is a long-term unsecured promissory note with a fixed maturity period. |
| B. | It usually has a maturity period of 15 days to one year. |
| C. | It is sold at a discount and redeemed at par. |
| D. | Companies use this instrument for bridge financing. |
| Answer» A. Is a long-term unsecured promissory note with a fixed maturity period. | |
| 388. |
Which of the following statements is not true with regard to Call money? |
| A. | It is short-term finance repayable on demand. |
| B. | Its maturity period ranges from one day to fifteen days. |
| C. | There is a direct relationship between call rates and other short-term money market instruments. |
| D. | It is used for inter-bank transactions. |
| Answer» C. There is a direct relationship between call rates and other short-term money market instruments. | |
| 389. |
Which of the following statements is not true with regard to capital market? |
| A. | The funds are raised for a short period of time. |
| B. | Both debt and equity funds can be raised. |
| C. | It is classified into two types. |
| D. | All of the above |
| Answer» A. The funds are raised for a short period of time. | |
| 390. |
Which of the following statements is not true with regard to primary market? |
| A. | Is also known as the old issues market. |
| B. | It facilitates the transfer of investible funds from savers to entrepreneurs. |
| C. | It deals with new securities being issued for the first time. |
| D. | It facilitates the transfer of investible funds from savers to entrepreneurs. |
| Answer» A. Is also known as the old issues market. | |
| 391. |
Which of the following statements is not true with regard to stock exchange? |
| A. | It provides a platform for buying and selling of new securities. |
| B. | It curbs the marketability of the securities. |
| C. | By providing a ready market, it extends liquidity to the securities. |
| D. | It provides a platform for buying and selling of old securities.` |
| Answer» B. It curbs the marketability of the securities. | |
| 392. |
Which of the following is not a protective function of stock exchange? |
| A. | Prohibition of fraudulent and unfair trade practices. |
| B. | Controlling insider trading. |
| C. | Regulation of takeover bids by companies. |
| D. | Promotion of fair practices and code of conduct in securities market. |
| Answer» C. Regulation of takeover bids by companies. | |
| 393. |
Raj Enterprises wishes to invest ₹1,10,000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund? |
| A. | 6 |
| B. | 7 |
| C. | 4 |
| D. | 2 |
| Answer» C. 4 | |
| 394. |
Which of the following statements is true with regard to financial markets? |
| A. | They link the households which save funds and business firms which invest these funds. |
| B. | They work as an intermediary between the savers and the investors by mobilising funds between them. |
| C. | They allocate funds available for investment into their most productive investment opportunity. |
| D. | All of the above |
| Answer» D. All of the above | |
| 395. |
The allocated function is performed by |
| A. | Financial market |
| B. | Capital market |
| C. | Money market |
| D. | All of the above |
| Answer» D. All of the above | |
| 396. |
It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year. |
| A. | Primary market |
| B. | Secondary market |
| C. | Capital market |
| D. | Money market |
| Answer» B. Secondary market | |
| 397. |
It is an instrument of short-term borrowing by the Government of India maturing in less than one year. |
| A. | Commercial bill |
| B. | Treasury bill |
| C. | Call money |
| D. | None of the above |
| Answer» C. Call money | |
| 398. |
Who issues a treasury bill? |
| A. | Any nationalised bank |
| B. | Any private sector bank |
| C. | Reserve Bank of India |
| D. | All of the above |
| Answer» A. Any nationalised bank | |
| 399. |
Suppose an investor purchases a 91 days Treasury bill with a face value of ₹2,00,000 for ₹1,92,000. By holding the bill until the maturity date, the investor receives ₹2,00,000. What is the amount of interest received by him? |
| A. | ₹8,000 |
| B. | ₹80,000 |
| C. | ₹3,92,000 |
| D. | ₹2,00,000 |
| Answer» B. ₹80,000 | |
| 400. |
It is used as an alternative to bank borrowing for large and creditworthy companies, |
| A. | Commercial bill |
| B. | Commercial papers |
| C. | Call money |
| D. | None of the above |
| Answer» C. Call money | |
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