McqMate
Chapters
| 301. |
World bank is also known as........................ |
| A. | IMF |
| B. | ADB |
| C. | IBRD |
| D. | UNICEF |
| Answer» C. IBRD | |
| 302. |
World bank was set up in ........................ |
| A. | 1945 |
| B. | 1946 |
| C. | 1947 |
| D. | 1948 |
| Answer» A. 1945 | |
| 303. |
IMF commenced financial operation on........................ |
| A. | 1945 |
| B. | 1946 |
| C. | 1947 |
| D. | 1948 |
| Answer» C. 1947 | |
| 304. |
Which of the following gives long term finance? |
| A. | IDBI |
| B. | ICICI |
| C. | IFCI |
| D. | All the above |
| Answer» D. All the above | |
| 305. |
Find the odd one out |
| A. | commercial paper |
| B. | share certificate |
| C. | certificate of deposit |
| D. | Treasury bill. |
| Answer» B. share certificate | |
| 306. |
The process of managing the sales ledger of a client by a financial service company is called |
| A. | forfaiting |
| B. | factoring |
| C. | leasing |
| D. | None of these. |
| Answer» B. factoring | |
| 307. |
Mutual funds are very popular in |
| A. | USA |
| B. | UK |
| C. | Japan |
| D. | India |
| Answer» A. USA | |
| 308. |
In India, the company which actually deals with the corpus of the mutual fund is called |
| A. | sponsor company |
| B. | trustee company |
| C. | asset management company |
| D. | Mutual fund Company. |
| Answer» C. asset management company | |
| 309. |
The first bank in India to start factoring business is |
| A. | Canara bank |
| B. | SBI |
| C. | Punjab National Bank |
| D. | Allahabad Bank. |
| Answer» B. SBI | |
| 310. |
An asset with a physical value is called |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Fixed asset |
| Answer» B. Non financial asset | |
| 311. |
An asset which derives its value because of a contractual claim is |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Fixed asset |
| Answer» A. Financial asset | |
| 312. |
Gold is -----------asset |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» B. Non financial asset | |
| 313. |
Cash is --------------asset |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» A. Financial asset | |
| 314. |
-------------is a whole sale market for short term debt instrument. |
| A. | capital market |
| B. | forex market |
| C. | money market |
| D. | any of the above |
| Answer» C. money market | |
| 315. |
Money lent in the inter-bank market for 15 days or more is called ----------- |
| A. | Call money |
| B. | Term money |
| C. | Money at short notice |
| D. | All the above |
| Answer» B. Term money | |
| 316. |
Call money is a loan given for a period of |
| A. | 15 days |
| B. | 30 days |
| C. | 1 day |
| D. | 1 year |
| Answer» C. 1 day | |
| 317. |
When money lent for more than a day but up to a fortnight is called |
| A. | Call money |
| B. | Term money |
| C. | Money at short notice |
| D. | None of the above |
| Answer» C. Money at short notice | |
| 318. |
CBLO stands for |
| A. | Collateralised Borrowing and Lending Obligation |
| B. | Central Banks Lending Obligation |
| C. | Commercial Borrowing and Lending Option |
| D. | Corporate Borrowing and Lending organisation |
| Answer» A. Collateralised Borrowing and Lending Obligation | |
| 319. |
The NSDL established in |
| A. | August 1996 |
| B. | August 1998 |
| C. | January 1996 |
| D. | January 1998 |
| Answer» A. August 1996 | |
| 320. |
In a private placement the maximum number of investors shall not exceed |
| A. | 51 |
| B. | 49 |
| C. | 100 |
| D. | 25 |
| Answer» B. 49 | |
| 321. |
Merchant banks in India started in |
| A. | 1955 |
| B. | 1969 |
| C. | 1972 |
| D. | 1992 |
| Answer» B. 1969 | |
| 322. |
Merchant banks concept in India introduced by |
| A. | SBI |
| B. | PNB |
| C. | ANZ Grindlays |
| D. | City bank |
| Answer» C. ANZ Grindlays | |
| 323. |
SENSEX is the index of |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | CSE |
| Answer» A. BSE | |
| 324. |
NIFTY is the index of |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | CSE |
| Answer» B. NSE | |
| 325. |
The first Indian equity index is |
| A. | Nifty |
| B. | Sensex |
| C. | Dollex |
| D. | Defty |
| Answer» B. Sensex | |
| 326. |
........... is a product whose value is derived from the value of underlying asset |
| A. | Repo |
| B. | T-bills |
| C. | G.sec |
| D. | Derivatives |
| Answer» D. Derivatives | |
| 327. |
In Indian Capital market, ‘BOLT’ stands for |
| A. | Borrowing or Lending Trade |
| B. | Bombay Online Trading |
| C. | Bond or Loan Transaction |
| D. | None of these |
| Answer» B. Bombay Online Trading | |
| 328. |
--------------is also known as “G.Secs” |
| A. | Gold Traded Fund (GTF) |
| B. | General Securities |
| C. | Govt. Securities |
| D. | Growth oriented fund |
| Answer» C. Govt. Securities | |
| 329. |
.................. are negotiable instrument issued by an overseas depository |
| A. | ADR |
| B. | GDR |
| C. | IDR |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 330. |
Perpetual bond is also known as |
| A. | Deep discount bond |
| B. | Irredeemable bond |
| C. | Bearer bond |
| D. | Registered bond |
| Answer» B. Irredeemable bond | |
| 331. |
Zero Coupon Bond is also known as |
| A. | Deep discount bond |
| B. | Irredeemable bond |
| C. | Bearer bond |
| D. | Zero Interest bond |
| Answer» A. Deep discount bond | |
| 332. |
Secured Premium Notes (SPN) always issued with........... |
| A. | Premium |
| B. | Discount |
| C. | Detachable Warrant |
| D. | Coupon |
| Answer» C. Detachable Warrant | |
| 333. |
................ bonds permit the bond holder to invest the interest income again in host bonds |
| A. | Deep discount bond |
| B. | Junk bonds |
| C. | Bearer bond |
| D. | Bunny bonds |
| Answer» D. Bunny bonds | |
| 334. |
...............bonds are high risk and high yield bonds developed in USA |
| A. | Deep discount bond |
| B. | Junk bonds |
| C. | Bearer bond |
| D. | Bunny bonds |
| Answer» B. Junk bonds | |
| 335. |
In Capital market, ‘ESOP’ stands for |
| A. | Equity share option Plan |
| B. | Equity shares Option premium |
| C. | Employee stock Option Plan |
| D. | Equity Stock Option Plan |
| Answer» C. Employee stock Option Plan | |
| 336. |
In financial market, QIPs Stands for |
| A. | Quality investment Project |
| B. | Qualified investment Plan |
| C. | Qualified Institutional Placement |
| D. | Qualitative Investment Premium |
| Answer» C. Qualified Institutional Placement | |
| 337. |
What you mean by “STRIPS” |
| A. | Separate Trade Register of Initial Public Securities offer |
| B. | Stock Trading Register of Interest and Principal Securities |
| C. | Separate Trading of Registered Interest and Principal of Securities |
| D. | Share Transfer and Registrar of Indian Public Securities issues |
| Answer» C. Separate Trading of Registered Interest and Principal of Securities | |
| 338. |
Gilt Edged Securities are |
| A. | Govt. Securities |
| B. | Company’s securities |
| C. | Any of the above |
| D. | None of these |
| Answer» A. Govt. Securities | |
| 339. |
In India, forfaiting services are offered by |
| A. | RBI |
| B. | SBI |
| C. | EXIM bank |
| D. | All the above |
| Answer» C. EXIM bank | |
| 340. |
The small investors’ gateway to enter into big companies is ————— |
| A. | Equity shares |
| B. | Preference shares |
| C. | Bonds |
| D. | Mutual fund |
| Answer» D. Mutual fund | |
| 341. |
Money Market mutual fund is also known as--------------- |
| A. | Growth fund |
| B. | Balanced fund |
| C. | Income fund |
| D. | Cash fund |
| Answer» C. Income fund | |
| 342. |
————— fund invests in highly liquid securities like commercial paper. |
| A. | Open ended fund |
| B. | Close ended fund |
| C. | Balanced fund |
| D. | MMMF |
| Answer» D. MMMF | |
| 343. |
The idea of providing factoring services in India was first thought by ————— |
| A. | Vaghul committee |
| B. | Malhotra Committee |
| C. | Tanden Committee |
| D. | None of these |
| Answer» A. Vaghul committee | |
| 344. |
The market for extremely short period loan is called |
| A. | Call loan market |
| B. | short notice market |
| C. | treasury bill market |
| D. | commercial bill market |
| Answer» A. Call loan market | |
| 345. |
---------- bills are drawn by contractors on the government departments for the goods supplied by them. |
| A. | Usance bills |
| B. | T-bills |
| C. | Clean bills |
| D. | Supply bills |
| Answer» D. Supply bills | |
| 346. |
---------- is also known as ‘Industrial Paper” |
| A. | Treasury bills |
| B. | Commercial bills |
| C. | Financial accommodation bills |
| D. | Commercial paper |
| Answer» D. Commercial paper | |
| 347. |
Demand bills are also known as |
| A. | Time bills |
| B. | Sight bills |
| C. | Kite bills |
| D. | Wind bills |
| Answer» B. Sight bills | |
| 348. |
Usance bills are also known as |
| A. | Time bills |
| B. | Sight bills |
| C. | Kite bills |
| D. | Wind bills |
| Answer» A. Time bills | |
| 349. |
In India, indigenous bills popularly known as |
| A. | Time bills |
| B. | Hundis |
| C. | Trade bills |
| D. | Sight bills |
| Answer» B. Hundis | |
| 350. |
Which of the following are examples of Hundis in india |
| A. | Shah jog |
| B. | Namjog |
| C. | Jokhani |
| D. | All the above |
| Answer» D. All the above | |
| 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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