McqMate
Chapters
201. |
Accommodation bills are also known as ..................... bills |
A. | kite bills |
B. | wind bills |
C. | supply bill |
D. | both a & b |
Answer» D. both a & b |
202. |
Adhoc treasury bills are issued in favour of the ..................... only |
A. | Treasury |
B. | RBI |
C. | Commercial banks |
D. | State government |
Answer» B. RBI |
203. |
..................... are short term deposits of specific maturity similar to fixed deposits. |
A. | commercial paper |
B. | Interbank participation certificate |
C. | Repo |
D. | Certificate of deposit |
Answer» D. Certificate of deposit |
204. |
..................... is an unsecured short term promissory note issued by creditworthy companies? |
A. | commercial pape |
B. | interbank participation certificate |
C. | Repo |
D. | Certificate of deposit |
Answer» A. commercial pape |
205. |
Discount and Finance House of India was set up in ..................... |
A. | 1982 |
B. | 1988 |
C. | 1992 |
D. | 1969 |
Answer» B. 1988 |
206. |
Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee |
A. | Malegam |
B. | Malhotra |
C. | Vaghul |
D. | Narasimham |
Answer» C. Vaghul |
207. |
..................... has been set up mainly to provide a secondary market in Govt. Securities |
A. | DHFI |
B. | OTCEI |
C. | STCI |
D. | NSDL |
Answer» C. STCI |
208. |
Right shares are offered to..................... |
A. | Debenture holders |
B. | Existing shareholders |
C. | List 2 contributories |
D. | Liquidators |
Answer» B. Existing shareholders |
209. |
..................... is the suitable method where small companies issue shares |
A. | public issue |
B. | placement |
C. | offer for sale |
D. | none of these |
Answer» B. placement |
210. |
..................... is a process of admitting securities for trading on a recognised stock exchange. |
A. | Registration |
B. | filing |
C. | listing |
D. | admission |
Answer» C. listing |
211. |
..................... is a preferential independent broker who deals in securities on his own behalf. |
A. | Jobber |
B. | sub broker |
C. | Remisiers |
D. | arbitragers |
Answer» A. Jobber |
212. |
The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction |
A. | Badla |
B. | arbitrage |
C. | cornering |
D. | trading inside |
Answer» A. Badla |
213. |
The device adopted to make profit out of the differences in prices of a security in to different markets is called..................... |
A. | Cornering |
B. | prise rigging |
C. | arbitrage |
D. | margin trading |
Answer» C. arbitrage |
214. |
The central depositary ..................... the security on behalf of the investors |
A. | Hold |
B. | transfer |
C. | both a & b above |
D. | none of these |
Answer» C. both a & b above |
215. |
..................... of shares in the first step in the depository process |
A. | Registration |
B. | Listing |
C. | Rematting |
D. | immobilisation |
Answer» D. immobilisation |
216. |
. ..................... is the link between the depository and the owner |
A. | Agent |
B. | Depository participant |
C. | Beneficiary |
D. | Broker |
Answer» B. Depository participant |
217. |
..................... issues does not bring in any fresh capital |
A. | equity |
B. | preference |
C. | debenture |
D. | bonus |
Answer» D. bonus |
218. |
Prospectus is not issued in |
A. | public issue |
B. | private placement |
C. | right issue |
D. | none the above |
Answer» B. private placement |
219. |
An issuer need not file an offer document in case of |
A. | public issue |
B. | preferential allotment |
C. | right issue |
D. | bought out deal |
Answer» B. preferential allotment |
220. |
An issuer can launch an IPO within..................... |
A. | 3 months |
B. | 6 months |
C. | 9 months |
D. | one year |
Answer» B. 6 months |
221. |
An issue of a minimum size of Rs. ..................... crore is a mega issue |
A. | 50 |
B. | 100 |
C. | 150 |
D. | 300 |
Answer» B. 100 |
222. |
Financial institutions are also known as ........................ |
A. | Financial organisation |
B. | Financial intermediaries |
C. | Financial system |
D. | Any of the above |
Answer» B. Financial intermediaries |
223. |
........................ is the first development financial institution in India. |
A. | IDBI |
B. | ICICI |
C. | IFCI |
D. | RBI |
Answer» C. IFCI |
224. |
Management Development Institute (MDI) was set up by ........................ |
A. | IDBI |
B. | ICICI |
C. | IFCI |
D. | SEBI |
Answer» C. IFCI |
225. |
IDBI was established in ........................ |
A. | 1948 |
B. | 1954 |
C. | 1992 |
D. | 1964 |
Answer» D. 1964 |
226. |
........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions. |
A. | IFCI |
B. | IDBI |
C. | RBI |
D. | SEBI |
Answer» B. IDBI |
227. |
Hedging through futures contracts |
A. | increases risk of loss if prices fall |
B. | eliminates profit maximization potential |
C. | is considered to be speculative in nature |
D. | all of the above |
Answer» B. eliminates profit maximization potential |
228. |
In what city are the two largest commodities exchanges? |
A. | Chicago |
B. | New York |
C. | Kansas City |
D. | Minneapolis |
Answer» A. Chicago |
229. |
The financial futures market has evolved over recent time because of |
A. | volatility and risk in the foreign exchange markets |
B. | volatility of interest rates |
C. | appeal to speculators due to low margin requirements |
D. | all of the above |
Answer» D. all of the above |
230. |
While hedging through interest rate futures reduces or eliminates the risk of loss, it also |
A. | is illegal in some cases. |
B. | has not been accepted by most corporate financial managers. |
C. | eliminates the possibility of an abnormal gain. |
D. | none of the above. |
Answer» C. eliminates the possibility of an abnormal gain. |
231. |
Margin requirements on commodities contracts |
A. | are much higher than those on common stock transactions. |
B. | vary over time and even among exchanges for a given commodity. |
C. | typically, are 2 to 10 percent of the value of the contract. |
D. | none of the above are true. |
Answer» C. typically, are 2 to 10 percent of the value of the contract. |
232. |
Which of the following can be the underlying for a commodity derivative contract? |
A. | Interest Rate |
B. | Euro-Indian Rupee |
C. | Gold |
D. | NIFTY |
Answer» C. Gold |
233. |
Daily mark to market settlement is done ------------ |
A. | Till the date of contract expiry |
B. | As long as the contract makes a loss |
C. | On the last day of week |
D. | On the last trading day of the month |
Answer» A. Till the date of contract expiry |
234. |
----------is the actual process of exchanging money and goods. |
A. | Transfer |
B. | Settlement |
C. | Netting |
D. | Clearing |
Answer» B. Settlement |
235. |
-----------work at making profits by taking advantage of discrepancy between prices of the same product across different markets. |
A. | Arbitragers |
B. | Speculators |
C. | Exchange |
D. | Hedgers |
Answer» A. Arbitragers |
236. |
Commodity exchanges enable producers and consumer to hedge their -----------given the uncertainty of the future. |
A. | seasonal risk |
B. | profit risk |
C. | production risk |
D. | price risk |
Answer» D. price risk |
237. |
Which of the following is not true about the national level exchanges? |
A. | Offers online trading |
B. | Recognised on permanent basis |
C. | Offers single commodity for trading |
D. | Volumes higher than regional exchanges |
Answer» C. Offers single commodity for trading |
238. |
----------- Exchanges provide real time, online, transparent and vibrant spot platform for commodities. |
A. | Electronic Spot |
B. | Regional |
C. | Futures |
D. | Stock |
Answer» A. Electronic Spot |
239. |
----------can only trade through their account or on account of their clients and however clear their trade through PCMs/STCMs. |
A. | Trading cum Clearing Member |
B. | Trading Member |
C. | Commodity Participant |
D. | Associate Member |
Answer» B. Trading Member |
240. |
The minimum net worth requirement for PCM on the NCDEX is-----------. |
A. | 50 Lakh |
B. | 500 Lakh |
C. | 5000 Lakh |
D. | 5 Lakh |
Answer» C. 5000 Lakh |
241. |
Members of commodity market can opt to meet the security deposit requirement by way of -- --------- |
A. | Cash |
B. | Bank Guarantee |
C. | Fixed Deposit Receipts |
D. | All of the above |
Answer» D. All of the above |
242. |
In the case of certain commodities like gold and silver, delivery is staggered over last ------ days of the contract. |
A. | Two |
B. | Three |
C. | Five |
D. | Thirteen |
Answer» C. Five |
243. |
Unit of trading for Wheat at NCDEX is--------- |
A. | 1 MT |
B. | 3 MT |
C. | 1 kg |
D. | 10 MT |
Answer» D. 10 MT |
244. |
At present how many national commodity exchanges are operating in India? |
A. | 8 |
B. | 7 |
C. | 6 |
D. | 10 |
Answer» C. 6 |
245. |
Regulatory body of commodity market in India is------------- |
A. | FMC |
B. | NCX |
C. | ICE |
D. | ICRA |
Answer» A. FMC |
246. |
Forward Market Commission (FMC) established in the year----------- |
A. | 1948 |
B. | 1964 |
C. | 1953 |
D. | 1952 |
Answer» C. 1953 |
247. |
FMC merged with SEBI in the year------------ |
A. | 1994 |
B. | 2008 |
C. | 2015 |
D. | 2016 |
Answer» C. 2015 |
248. |
The year of establishment of National Multi- Commodity Exchange (NMCE) was--------- |
A. | 2002 |
B. | 2003 |
C. | 2004 |
D. | 2005 |
Answer» A. 2002 |
249. |
The Headquarters of NMCE is ------------- |
A. | New Delhi |
B. | Ahmedabad |
C. | Mumbai |
D. | Calcutta |
Answer» B. Ahmedabad |
250. |
-----------is the world’s largest exchange in silver and gold |
A. | NMCE |
B. | MCX |
C. | ICEX |
D. | NCDEX |
Answer» B. MCX |
251. |
---------------holds 86% market share of commodity exchange in India |
A. | NMCE |
B. | MCX |
C. | ICEX |
D. | NCDEX |
Answer» B. MCX |
252. |
Headquarters of Multi Commodity Exchange in India (MCX) is ---------- |
A. | New Delhi |
B. | Ahmedabad |
C. | Mumbai |
D. | Calcutta |
Answer» C. Mumbai |
253. |
NCDEX stands for------------------- |
A. | National Commodity Development Exchange |
B. | National Commodity and Derivatives Exchange |
C. | Natural Commodity and Development Exchange |
D. | None of these |
Answer» B. National Commodity and Derivatives Exchange |
254. |
In ------------ NSE and BSE launched trading in commodities. |
A. | 2016 |
B. | 2017 |
C. | 2018 |
D. | 2015 |
Answer» C. 2018 |
255. |
The oldest Commodity market in India is--------- |
A. | NMCE |
B. | MCX |
C. | ICEX |
D. | NCDEX |
Answer» A. NMCE |
256. |
In the year 2018 NMCE merged with ----------- |
A. | UCX |
B. | MCX |
C. | ICEX |
D. | NCDEX |
Answer» C. ICEX |
257. |
ACE Derivatives Exchange Ltd is the commodity exchange developed in--------- |
A. | America |
B. | Australia |
C. | Afghanistan |
D. | None of these |
Answer» D. None of these |
258. |
Which of the following statements is false? |
A. | A bond issuer must pay periodic interest. |
B. | Bond prices remain fixed over time. |
C. | Bonds carry no corporate ownership privileges. |
D. | A bond is a financial contract. |
Answer» B. Bond prices remain fixed over time. |
259. |
Which of the following statements is true? |
A. | Low inflation is expected to have a negative effect on bond prices. |
B. | Generally speaking, bonds are riskier than common stocks. |
C. | Bonds are usually less liquid than stocks. |
D. | A bondholder repays principal when the bond matures. |
Answer» C. Bonds are usually less liquid than stocks. |
260. |
Most bonds: |
A. | are money market securities. |
B. | give bondholders a voice in the affairs of the corporation. |
C. | are interest-bearing obligations of governments or corporations. |
D. | are floating-rate securities. |
Answer» C. are interest-bearing obligations of governments or corporations. |
261. |
Which of the following is not an advantage of investing in bonds? |
A. | Bonds have unlimited profit potential. |
B. | Bond investments are relatively safe from large losses. |
C. | Bonds are good sources of current income. |
D. | Bondholders receive their payments before shareholders can be compensated. |
Answer» A. Bonds have unlimited profit potential. |
262. |
Which of the following is a capital market security? |
A. | Treasury bills. |
B. | Federal funds. |
C. | Federal agency bonds. |
D. | Eurodollars. |
Answer» C. Federal agency bonds. |
263. |
Which of the following is a money market security? |
A. | Repurchase agreements. |
B. | Municipal bonds. |
C. | Mortgages. |
D. | U.S. Treasury notes. |
Answer» A. Repurchase agreements. |
264. |
Corporations borrow for the short term by issuing: |
A. | corporate bills. |
B. | corporate bonds. |
C. | commercial paper. |
D. | bankers’ acceptances. |
Answer» C. commercial paper. |
265. |
What is used to quote the rates on Eurodollar deposits? |
A. | Discount rate. |
B. | Federal funds rate. |
C. | Repo rate. |
D. | LIBOR. |
Answer» D. LIBOR. |
266. |
Which of the following provides income that is fully exempt from taxation for the individual investor? |
A. | Municipal bonds. |
B. | Preferred stocks. |
C. | Treasury notes. |
D. | Treasury bills. |
Answer» A. Municipal bonds. |
267. |
Which of the following is a residual claim on a firm’s assets? |
A. | Preferred stock. |
B. | Common stock. |
C. | Preference shares. |
D. | Participating preferred stock. |
Answer» B. Common stock. |
268. |
Which of the following occurs four trading days before the date of record? |
A. | Distribution date. |
B. | Payment date. |
C. | Declaration date. |
D. | Ex-dividend date. |
Answer» D. Ex-dividend date. |
269. |
Which of the following types of assets is least risky? |
A. | Short-term corporate bonds |
B. | Long-term corporate bonds. |
C. | Stocks. |
D. | Options and futures. |
Answer» A. Short-term corporate bonds |
270. |
Which of the following types of assets offers the highest expected return? |
A. | Stocks. |
B. | Long-term government bonds. |
C. | Options and futures. |
D. | Long-term corporate bonds. |
Answer» A. Stocks. |
271. |
Which of the following types of financial assets represents a creditor relationship with an entity? |
A. | Stocks. |
B. | Options. |
C. | Futures. |
D. | Bonds. |
Answer» D. Bonds. |
272. |
Which of the following sequences lists financial assets from least risky to most risky? |
A. | Stocks, bonds, derivatives. |
B. | Bonds, derivatives, stocks. |
C. | Derivatives, bonds, stocks. |
D. | Bonds, stocks, derivatives. |
Answer» D. Bonds, stocks, derivatives. |
273. |
Which of the following sequences lists financial assets from lowest expected return to highest expected return? |
A. | Bonds, stocks, derivatives. |
B. | Bonds, derivatives, stocks. |
C. | Stocks, bonds, derivatives. |
D. | Derivatives, stocks, bonds. |
Answer» A. Bonds, stocks, derivatives. |
274. |
Which of the following types of assets represents ownership interest in a corporation? |
A. | Bonds |
B. | Stocks. |
C. | Futures. |
D. | Options. |
Answer» B. Stocks. |
275. |
Financial assets are also called: |
A. | securities. |
B. | real assets. |
C. | tangible assets. |
D. | physical assets. |
Answer» A. securities. |
276. |
If people are willing to lend at 7% when inflation is 2% and continue to lend the same amounts when inflation is 4% and interest rates have risen to 8%, they are assumed to be subject to: |
A. | Extrapolative expectations |
B. | Risk aversion |
C. | Asymmetric information |
D. | Money illusion |
Answer» D. Money illusion |
277. |
The reason that finding the present value of a future sum of money requires us to discount it, is that: |
A. | Inflation will reduce its purchasing power |
B. | We can’t be certain of receiving it |
C. | We don’t know when we shall receive it |
D. | Waiting deprives us of its use |
Answer» D. Waiting deprives us of its use |
278. |
If interest rates rise, the present value of any future earnings is bound to: |
A. | Fall |
B. | Rise |
C. | Suffer from inflation |
D. | Increase in risk |
Answer» A. Fall |
279. |
In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to: |
A. | A reduction in the amount of saving |
B. | More employment |
C. | Higher interest rates |
D. | Higher prices |
Answer» C. Higher interest rates |
280. |
If savers decide to save more, ceteris paribus, the loanable funds theory predicts: |
A. | A reduction in investment and interest rates |
B. | An increase in investment and interest rates |
C. | Higher economic growth |
D. | A reduction in interest rates and more investment |
Answer» D. A reduction in interest rates and more investment |
281. |
According to the Fisher hypothesis, the nominal rate of interest consists of: |
A. | A stable real rate plus a variable risk premium |
B. | A real rate plus a liquidity premium plus a risk premium |
C. | A stable real rate plus a variable inflation premium |
D. | An inflation premium plus a liquidity premium |
Answer» C. A stable real rate plus a variable inflation premium |
282. |
According to the liquidity preference theory of interest, an increase in uncertainty, other things being equal, will: |
A. | Decrease output and employment |
B. | Increase risk aversion |
C. | Reduce the demand for money |
D. | Raise interest rates |
Answer» D. Raise interest rates |
283. |
The ability of central banks to influence short-term interest rates rests upon: |
A. | Government policy |
B. | Their role as lenders of last resort |
C. | Their supervisory role |
D. | Sales of government bonds |
Answer» B. Their role as lenders of last resort |
284. |
A central bank which sets the short-term rate of interest must: |
A. | Buy treasury bills |
B. | Meet the resulting demand for reserves |
C. | Sell government bonds |
D. | Change the reserve ratios |
Answer» B. Meet the resulting demand for reserves |
285. |
According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds. |
A. | Loanable Fund theory |
B. | Productivity theory |
C. | Abstinence theory |
D. | None of these |
Answer» A. Loanable Fund theory |
286. |
According to ------- theory interest arises on account of the productivity of capital. |
A. | Loanable Fund theory |
B. | Productivity theory |
C. | Abstinence theory |
D. | Classical theory |
Answer» B. Productivity theory |
287. |
The Time- Preference Theory of Interest was expounded by----------- |
A. | John Rae |
B. | Alfred Marshall |
C. | JM Keynes |
D. | JB Clark |
Answer» A. John Rae |
288. |
----------- defined Interest as “an index of the community’s preference for a dollar of present over a dollar of future income.” |
A. | Fisher |
B. | Alfred Marshall |
C. | JM Keynes |
D. | JB Clark |
Answer» A. Fisher |
289. |
According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital. |
A. | Loanable Fund theory |
B. | Productivity theory |
C. | Abstinence theory |
D. | Classical theory |
Answer» D. Classical theory |
290. |
Loanable Fund theory is also known as----------- |
A. | Classical theory |
B. | Neo-classical theory |
C. | Demand and Supply theory |
D. | Productivity theory |
Answer» B. Neo-classical theory |
291. |
Neo- Classical theory of interest was expounded by------------ |
A. | Prof. Fisher |
B. | Alfred Marshall |
C. | Knot Wicksel |
D. | JB Clark |
Answer» C. Knot Wicksel |
292. |
According to Keynes, Interest is purely a ‘monetary phenomenon’. |
A. | Fisher |
B. | Alfred Marshall |
C. | JM Keynes |
D. | JB Clark |
Answer» C. JM Keynes |
293. |
Who propounded liquidity preference theory of interest? |
A. | Prof.Fisher |
B. | Alfred Marshall |
C. | JM Keynes |
D. | JB Clark |
Answer» C. JM Keynes |
294. |
----------- is called as “Real Theory of Interest” |
A. | Classical theory |
B. | Neo-classical theory |
C. | Demand and Supply theory |
D. | Productivity theory |
Answer» A. Classical theory |
295. |
Technical consultancy Organisations were set up by........................ |
A. | IFCI |
B. | IDBI |
C. | RBI |
D. | SEBI |
Answer» B. IDBI |
296. |
ICICI was set up in ........................ |
A. | 1955 |
B. | 1964 |
C. | 1989 |
D. | 1935 |
Answer» A. 1955 |
297. |
........................ assists mainly to industrial undertakings in the private sector |
A. | IFCI |
B. | IDBI |
C. | ICICI |
D. | SEBI |
Answer» C. ICICI |
298. |
LIC was established in........................ |
A. | 1956 |
B. | 1964 |
C. | 1989 |
D. | gcv1935 |
Answer» A. 1956 |
299. |
UTI was set up in the year ........................ |
A. | 1956 |
B. | 1964 |
C. | 1969 |
D. | 1948 |
Answer» B. 1964 |
300. |
................known as Brettonwood twins |
A. | IDBI and IFCI |
B. | IDBI and UTI |
C. | IBRD and IMF |
D. | RBI and SEBI |
Answer» C. IBRD and IMF |
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