Chapter: Indian Financial System
1.

…………………..was the protector of funds and money in ancient Rome.

A. Juno Moneta
B. Henry Feyol
C. F.W.Taylor
D. None of these
Answer» A. Juno Moneta
2.

Money is matter of 4 function- A medium , a measure, a standard…………--.

A. Store
B. Bin-card
C. Commerce
D. Financial
Answer» A. Store
3.

Indian Financial System consists of financial market,…………….. and Financial intimidation.

A. financial instrument
B. services
C. underwriters
D. derivatives.
Answer» A. financial instrument
4.

------------------- are business organization that is mobilisers and depositors of savings and providing financial services.

A. Financial Institutions
B. head offices
C. Branches
D. none of these.
Answer» A. Financial Institutions
5.

………………………. are differ from Non-financial Business organization.

A. Financial Institutions
B. head offices
C. Branches
D. none of these.
Answer» A. Financial Institutions
6.

…………….. can be defined as the market in which financial assets are created or transferred.

A. Financial Market
B. financial service
C. Financial Instruments
D. head Offices.
Answer» A. Financial Market
7.

……………. this market is dominated by government, banks, and financial institutions.

A. money market
B. Capital Market
C. Organised Market
D. Unorganised
Answer» A. money market
8.

………………….market is also called as the security market.

A. Capital market
B. Money Market
C. Organised Market
D. Unorganised
Answer» A. Capital market
9.

………………….market deals with the multicurrency requirements.

A. Forex market
B. Money Market
C. Organised Market
D. Unorganised
Answer» A. Forex market
10.

……………….. bills are issued by central government.

A. Treasury Bills
B. Bills of Exchange
C. Dishonored bill
D. Unorganised
Answer» A. Treasury Bills
11.

Debt instruments are issued by corporate houses for raising short term financial resources from money market are called as ……………..

A. Commercial Paper
B. Certificate of deposits
C. . treasury bill
D. hybrid
Answer» A. Commercial Paper
12.

The markets which attracts funds in large volume and from all types of investors are called as …………

A. Broad financial market
B. Money Market
C. Organised
D. Unorganised
Answer» A. Broad financial market
13.

………………or liberalization aim at creating market oriented competitive financial system.

A. Financial Reforms
B. integration
C. financial repression
D. None of these
Answer» A. Financial Reforms
14.

………………appears to have an important role in the restructuring and liquidation of companies that are in distress.

A. Financial Intermediary
B. Financial Instruments
C. Organised Market
D. Firm’s Assets
Answer» A. Financial Intermediary
15.

…………….banker is any person who is engaged in the business of issue of management either by making arrangement regarding selling, buying, securities to manager.

A. Merchant
B. Money bankers
C. Non Banking Institutes
D. Unorganised
Answer» A. Merchant
16.

…………………..banking is the development of banking from commerce which frequently encountered a prolonged intermediate.

A. Merchant
B. Money bankers
C. Non Banking Institutes
D. Unauthorized
Answer» A. Merchant
17.

An outstanding development in this sphere was the conversion of the ……………

A. Industrial Finance Corporation
B. Non banking financial Institutes
C. Insurance Companies
D. None of the above
Answer» A. Industrial Finance Corporation
18.

DFIs stands for…………….

A. Development financial Institutes
B. Development of Banking institute
C. Development of financial Industries
D. Deputy Factor Service
Answer» A. Development financial Institutes
19.

The bonds issued by the DFIs were no longer eligible as…………….assets for banks.

A. SLR
B. NSE
C. IFCI
D. DFIs
Answer» A. SLR
20.

The factors which had adversely affected the profitability of the banking system were partly external is termed as ………………

A. macro –policy environment
B. staffing and branch spread
C. promoting savings
D. none of the above
Answer» A. macro –policy environment
21.

The factors which had adversely affected the profitability of the banking system were partly internal is termed as ………………

A. staffing and branch spread
B. macro –policy environment
C. promoting savings
D. none of the above
Answer» A. staffing and branch spread
22.

NBFCs Stands for

A. non banking financial corporations
B. Indian financial institutions
C. national banks factor corporation
D. none of the above
Answer» A. non banking financial corporations
23.

NBFCs are partly ………… and partly……………..

A. fees based and fund based
B. free and periodic
C. full fees and periodic
D. fund based and systematic
Answer» A. fees based and fund based
24.

…………….are emerging as the backbone of Indian Capital Market.

A. Mutual Fund
B. Investments
C. savings
D. Interests
Answer» A. Mutual Fund
25.

The present structure consists of domestic mutual funds sponsored by the ……………

A. UTI
B. LIC
C. NFCs
D. IFS
Answer» A. UTI
26.

……………..are encouraged, both in public and private sectors and they have been permitted to invest overseas.

A. Mutual Funds
B. Shares
C. Capital
D. Investments
Answer» A. Mutual Funds
27.

Secondary market represented an institutional mechanism was ………………

A. inadequate
B. incorrect
C. aggregate
D. exact
Answer» A. inadequate
28.

SEBI stands for ……………….

A. security exchange board of India
B. State Bank of India
C. sate electronic board of India
D. none of the above
Answer» A. security exchange board of India
29.

CDs stands for ………… and CPs stands for…………..

A. certificate of deposit & commercial paper
B. certify deputy manager & commercial bills
C. clear deposit & contract papers
D. contractual deposit & compact project
Answer» A. certificate of deposit & commercial paper
30.

…………………are appointed by the issuing companies in consultation with the merchant bankers.

A. underwriters
B. Mutual fund
C. Certificate of deposits’
D. treasury bills
Answer» A. underwriters
31.

Underwrites are appointed by the issuing companies in consultation with the …………………

A. merchant banks
B. Mutual fund
C. Certificate of deposits’
D. treasury bills
Answer» A. merchant banks
32.

In …………………this case the issue is underwritten by two or more underwriters jointly.

A. joint underwriting
B. sub underwriting
C. syndicate underwriting
D. firm underwriting
Answer» A. joint underwriting
33.

Under ………………..this case involves more than one underwriters.

A. sub underwriting
B. joint underwriting
C. syndicate underwriting
D. firm underwriting
Answer» A. sub underwriting
34.

……………..in this case underwriter agrees to take up a specified number of securities.

A. firm underwriting
B. sub underwriting
C. syndicate underwriting
D. joint underwriting
Answer» A. firm underwriting
35.

…………..is empowered to carry out the inspection of the bankers to the issue with a view to protecting the investors’ interest.

A. RBI
B. SBI
C. SEBI
D. Capital Market
Answer» A. RBI
36.

A ………….is a deed which is executed by the company in favour of the trustees named for the benefit of the debenture holder.

A. trust deed
B. Agreement
C. contract
D. none of above
Answer» A. trust deed
37.

A scheduled bank carrying on ……………..

A. commercial activity
B. financial activity
C. banking activity
D. none of the above
Answer» A. commercial activity
38.

………………is mandatory in order to act as debenture trustee.

A. . Certificate
B. agreement
C. contract
D. none of the above
Answer» A. . Certificate
Chapter: Introduction to Financial Markets
39.

In primary MARKETS the first time issued shares to be publicly traded, in stock market is considered as...

A. traded offering
B. public markets
C. initial public offering.
D. secondary market
Answer» C. initial public offering.
40.

The stock or shares that are also sold to investors without transacting through financial institution are classified as

A. direct transfer
B. indirect transfer
C. global transfer
D. home transfer
Answer» A. direct transfer
41.

The type of financial security which have linked payoff to another issued security is classified as –

A. linked security
B. derivative security
C. payable security.
D. receivables
Answer» B. derivative security
42.

In primary markets the property of shares which made it easy to sell newly issued security is considered as …

A. increased liquidity
B. decreased liquidity
C. money flow
D. Surplus
Answer» A. increased liquidity
43.

The money market where debt and stock are traded and maturity period is more than a year is classified as….

A. short term markets
B. capital markets
C. long term markets
D. money market
Answer» B. capital markets
44.

The example of derivative securities include.

A. swap contract
B. option contract
C. future contract
D. all of these
Answer» D. all of these
45.

In foreign financial markets , the growth is represented by the factors such as --

A. saving in foreign countries
B. investment opportunity
C. a & b
D. none of these
Answer» C. a & b
46.

The services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as----

A. business allocation
B. sector allocation
C. credit allocation
D. factor allocation
Answer» D. factor allocation
47.

The type of market in which securities with less than one year maturity are traded is classified as…

A. money market
B. capital market
C. global market
D. Stock exchange.
Answer» A. money market
48.

The type of structured market through which the funds flow with the help of financial instruments such as bond and stock is classified as –

A. financial market
B. funds market
C. flow market
D. capital market
Answer» A. financial market
49.

The process of selling and buying of stocks and bonds is classified as

A. S- trade
B. e trade
C. stock trade
D. none of these
Answer» B. e trade
50.

In capital markets the major suppliers of trading instruments are—

A. government and corporation
B. liquid corporation
C. instrumental corporation
D. Private Institutes
Answer» A. government and corporation
51.

The market in which transactions are done through computers and telephone without any specific location are classified as ----

A. past counter
B. future counter market
C. over the counter markets
D. None of these
Answer» C. over the counter markets
52.

The type of financial markets in which the corporation issues new funds to raise funds is classified as

A. flow market
B. primary market
C. secondary market
D. Money market
Answer» B. primary market
53.

The saving banks, insurance companies, mutual funds and commercial banks are all examples of –

A. Non-financial institutions
B. derivative institutions
C. financial institutions
D. banking institutes.
Answer» C. financial institutions
54.

The additional debt instrument or equity instruments of publically traded firm are included in the markets classified as –

A. flow market
B. primary market
C. secondary markets
D. derivative market
Answer» B. primary market
55.

The financial instruments of public markets include –

A. Transfer funds
B. bearer bonds
C. shares
D. debentures
Answer» C. shares
56.

The centralized market place where agents can have efficiently and quickly transaction is classified as –

A. secondary market
B. central market
C. traded market
D. primary market
Answer» A. secondary market
57.

The ability of an asset to be converted into cash very quickly is classified as –

A. derivative security markets
B. convertible securities
C. liquidity
D. fixed
Answer» C. liquidity
58.

The institutions classified as depository once and have loans as their major assets are classified as

A. commercial banks
B. commercial mortgages
C. credit derivative
D. All of these
Answer» A. commercial banks
59.

Merchant bankers are ------

A. Merchants
B. Banks
C. Neither merchants nor banks
D. None of these.
Answer» C. Neither merchants nor banks
60.

All type of activities which are of a financial nature are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Financial market
B. Primary market
C. Capital market
D. financial services.
Answer» D. financial services.
61.

Find out odd one..

A. Fund based activity
B. Fee based activity
C. Modern activities
D. Purchase of raw materials.
Answer» D. Purchase of raw materials.
62.

The number of lead merchant bankers may not exceeds in case any issue of , issue size less than Rs.50crore,number of MBs ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. 1
B. 3
C. 2
D. 4.
Answer» C. 2
63.

R O C stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Registrar of companies
B. Registered companies
C. Registrar of consulter
D. Registrar of capital.
Answer» A. Registrar of companies
64.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a written consent or authorization representing or acting on behalf of an individual in matters of business, private affairs or other legal matters.

A. Memorandum of understanding
B. R O C
C. Agreement
D. Power of authority.
Answer» D. Power of authority.
65.

Lead merchant banker should advice the issuer to enter into ‐‐‐‐‐‐‐‐ with a particular intermediary for the purpose of issue management.

A. Memorandum of understanding
B. R O C
C. Agreement
D. Arrangement.
Answer» A. Memorandum of understanding
66.

The number of lead merchant bankers may not exceed in case any issue of, issue size 200crore to 400crore.

A. 4
B. 3
C. 6
D. 5.
Answer» D. 5.
67.

Post issue management activities include:‐

A. Analysis of collection
B. Processing of data
C. Issue of refund orders
D. All of these.
Answer» D. All of these.
68.

Pre‐issue management activities include:‐

A. Lead manager
B. Underwriting
C. Overall supervision
D. None of these.
Answer» D. None of these.
69.

Merchant bank can help an organization specifically in promotional functions, ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Sponsoring the issue
B. Marketing
C. None of these
D. All of these.
Answer» D. All of these.
70.

Role of merchant bankers ‐‐‐‐‐‐‐‐.

A. Mobilization of funds
B. Promotional function
C. Innovation
D. All of these.
Answer» D. All of these.
71.

‐‐‐‐‐‐‐‐‐‐‐‐‐ is a financial intermediary who helps to mobilize and transfer capital from those who possess it to those who need it.

A. Lease finance
B. Venture capital
C. Merchant banker
D. hire purchaser .
Answer» B. Venture capital
72.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a method of renting assets.

A. Hire purchase
B. Lease
C. hedge finance
D. Credit rating.
Answer» B. Lease
73.

‐‐‐‐‐‐ is the opinion of the rating agency on the relative ability and willingness of the issuer of by instrument to meet the debt service obligations as and when they arise.

A. Credit rating
B. rating by merchant banker
C. merit rating
D. operating feed back.
Answer» A. Credit rating
74.

The features of hire purchase:

A. The possession of goods is given to the buyer immediately.
B. The ownership in the goods remains with the vendor till the last installment is paid.
C. The seller can repossess the goods in case of default in payment .
D. All of these.
Answer» D. All of these.
75.

Discounting of bills of exchange is an attractive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ based financial service provided by the finance companies.

A. Fee
B. Fund
C. Opinion
D. Capital.
Answer» B. Fund
76.

Factoring is method of raising ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ finance through account receivable credit offered by commercial banks and factors.

A. Long term
B. Medium term
C. short term
D. all of these.
Answer» C. short term
77.

Insurance is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Instrument
B. Contract
C. Agreement
D. Rating.
Answer» C. Agreement
78.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a fund based financial service, provides resources of finance receivable as well as facilities the collection of receivables.

A. Leasing
B. hedge finance
C. Merchant banker
D. Factoring.
Answer» D. Factoring.
79.

Financial service companies exclude ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Commercial banks
B. Insurance companies
C. Sole proprietorship
D. Crepitating agencies.
Answer» C. Sole proprietorship
80.

Specialized financial institution, are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Leasing companies
B. U T I
C. N B F C s
D. Development bank.
Answer» D. Development bank.
81.

Financial services offered financing risk project e.g. Risk capital scheme of I F C I venture capital fund of I D F I etc. to provide ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A. Seed capital
B. Venture capital
C. Primary fund
D. secondary fund.
Answer» B. Venture capital
82.

Identify odd one.

A. C R I S I L
B. I C R A
C. C A R E
D. I C I C I.
Answer» D. I C I C I.
Chapter: Financial Services in India
83.

Services sector in India is booming and has become one of the biggest -- ………..areas.

A. money spinning areas
B. Regulations area
C. venture capital
D. none of these
Answer» A. money spinning areas
84.

The term…………… refers to the mobilizing and allocation of savings.

A. financial services
B. Financial Institutions
C. financial intermediaries
D. all of these
Answer» A. financial services
85.

………………of large public sector undertakings.

A. Port folio management
B. top management
C. fund management
D. financial planning
Answer» A. Port folio management
86.

………………has made way for the entry of innovation and advanced financial products in India.

A. globalization
B. liberalization
C. centralization
D. reconstruction
Answer» A. globalization
87.

If funds sells securities that have increased price the fund has………….. Gain.

A. capital gain
B. Surplus
C. over gain
D. loss of profit policy
Answer» A. capital gain
88.

……….. …..is define as the market value of Mutual Fund Scheme’s assets net of its Liability.

A. NAV
B. OVTCE
C. SWAP
D. loss of profit policy
Answer» A. NAV
89.

Funds that can sell and buy units at any point in the time are known as ……..

A. open end fund
B. Surplus
C. Closed end fund
D. No load fund
Answer» A. open end fund
90.

Funds that can sell a fixed number of units only during the new fund offer period are called as ………

A. Closed end fund
B. Surplus
C. Open end fund
D. No load fund
Answer» A. Closed end fund
91.

………refers to the load changed to an investors when he /she enters into a scheme.

A. Entry load
B. Surplus
C. Closed end fund
D. No load fund
Answer» A. Entry load
92.

……………… known as back end load.

A. Exit load
B. Entry load
C. Closed end fund
D. No load fund
Answer» A. Exit load
93.

Which are not included in entry load, Exit load, deferred load is known as ……

A. open end fund
B. Surplus
C. Closed end fund
D. No load fund
Answer» A. open end fund
94.

……………are funds whose portfolio consists of a blend of equities, debts, and money market securities.

A. Hybrid fund
B. Balanced fund
C. Closed end fund
D. No load fund
Answer» A. Hybrid fund
95.

Exchange traded funds give investors joint benefits of ……. And …… mutual fund.

A. close end & open end
B. Surplus & capital
C. Closed end & hybrid
D. No load & balanced
Answer» A. close end & open end
96.

ETF stands for……………..

A. Exchange traded funds
B. Expensive Transactional Fund
C. Executive traded fun
D. No load fund
Answer» A. Exchange traded funds
97.

The finance ministry is supervisor of …… & ……

A. RBI & SBI
B. SBI & SEBI
C. SEBI &NABARD
D. SEBI & RBI
Answer» A. RBI & SBI
98.

Association of mutual fund in India was incorporated on…

A. 22nd Aug 1995
B. 23rd Aug 1996
C. 28th Aug 1995
D. 22nd Jan 1995
Answer» A. 22nd Aug 1995
99.

………is keeps the safe custody of the valuables of customers or clients or investors.

A. Custodian
B. Registrar
C. Trader
D. Institutes
Answer» A. Custodian
100.

………………….. means financial transaction where exporter sells his accounts receivables to the 3rd party @a lesser rate in exchange for instant cash.

A. Factoring
B. Surplus
C. Mutual Fund
D. Interest
Answer» A. Factoring
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