Financial Markets and Institutions solved MCQs

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1. Which of the following is not a primary function of a Bank?

a. Granting Loans

B. Collecting Cheques/Drafts customers

c. Facilitating import of goods

d. Issuing Bank Drafts

2. Which of the following is not an institutional credit rating agency in Indian financialsystem?

a. CRISIL

B. CIBIL

c. CARE

d. ICRA

3. ___________ is regarded as “Hybrid securities”.

a. Equity shares

B. . Preference shares

c. Debentures

d. Treasury bills

4. ————— represent claims for the payment of a sum of money sometimes in the futureand/or a periodic payment in the form of interest or dividend.

a. Physical asset

B. Fixed asset

c. Financial asset

d. All the above

5. SEBI was established in —————.

a. 1988

B. 1985

c. 1991

d. 1990

6. RBI started functioning on —————.

a. 1-4-1935

B. 1-4-1948

c. 1-4-1882

d. 1-4-1945

7. National Housing bank is a fully owned subsidiary of —————.

a. HDFC

B. HSBC

c. RBI

d. HUDCO

8. ————— has the statutory powers to regulate and promote the Indian capital market.

a. Registrar of issue

B. Merchant banks

c. SEBI

d. RBI

9. Any company making a public issue of value of more than Rs. ———— is required to file adraft offer document with SEBI.

a. 100 lakh

B. 25 lakh

c. 50 lakh

d. 10 lakh

10. ————— Committee was constituted by SEBI for deciding about derivatives trading.

a. L.C.Gupta

B. R. L. Gupta

c. Vaghul

d. Malhotra

11. RBI is the lender of last resort for —————.

a. Central Government

B. State Governments

c. Stock markets

d. Commercial Banks

12. The market regulator of Indian Capital Market is ……………

a. DFHI

B. RBI

c. SEBI

d. STCI

13. …………………… facilitate the transfer of funds from savers to the borrowers.

a. goods market

B. money market

c. financial market

d. consumer market

14. ……………………… market is a market for old issues.

a. Money market

B. Primary market

c. Secondary market

d. All the above

15. Which of the following is a financial asset

a. Gold

B. silver

c. share

d. Land.

16. Which of the following is a cash asset?

a. deposit created out of loans

B. share

c. bond

d. Post office certificate.

17. Govt. bond is a

a. short term security

B. long term security

c. medium term security

d. Either a or b.

18. Money market deals with ..................... instruments.

a. long term

B. short term

c. medium term

d. all of these.

19. The market for extremely short period loan is called.....................

a. call money market

B. money at short notice

c. T-bill market

d. G-sec market

20. ..................... acts as an intermediary between Govt. and money market

a. RBI

B. SEBI

c. Commercial banks

d. All the above

21. ................... are drawn by contractors on the Govt. departments for the goods supplied to them

a. treasury bills

B. supply bill

c. bill of lading

d. documentary bill

22. ..................... are an important instrument of short term borrowing by the Govt.

a. National saving certificate

B. Bonds

c. Treasury bill

d. Any of the above

23. ..................... is a market for bankers’ acceptances

a. discount market

B. CDs market

c. Interbank participation market

d. Acceptance market

24. Accommodation bills are also known as ..................... bills

a. kite bills

B. wind bills

c. supply bill

d. both a & b

25. Adhoc treasury bills are issued in favour of the ..................... only

a. Treasury

B. RBI

c. Commercial banks

d. State government

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