Advanced Financial Management 2 Solved MCQs

1.

Capital Market deals with __________

A. Short Term Funds
B. Medium and Long Term Funds
C. Both a and b
D. None of the Above
Answer» B. Medium and Long Term Funds
2.

In Secondary segment of Capital Market ____________

A. Fresh Capital is raised
B. Trading of outstanding securities is done
C. Both a & b
D. None of the above
Answer» B. Trading of outstanding securities is done
3.

Which of the following is a role of Capital Market?

A. Capital Formation
B. Promotion of Industrial Growth
C. Development of backward areas of the country
D. All of the Above
Answer» D. All of the Above
4.

Funds can be raised in Primary Market through

A. Public Issue by Prospectus
B. Private Placements
C. Rights Issues
D. All of the Above
Answer» D. All of the Above
5.

Primary Market is a market for :

A. New Issues
B. Outstanding Securities
C. Land Records
D. None of the above
Answer» A. New Issues
6.

When an organization opts to convert private capital in to public capital, it is called _____________

A. Going Out
B. Being Open
C. Being Listed
D. Going Public
Answer» D. Going Public
7.

Bonus Shares enable the company to restructure its capital.

A. True
B. False
C. none
D. none
Answer» A. True
8.

Which of the following enables issuers to reap benefits arising from price and demand discovery?

A. Public Issue by Prospectus
B. Book Building
C. Listing
D. None of the above
Answer» B. Book Building
9.

Which one of the following is not a feature of a Stock Exchange?

A. Organised Market
B. Dealing only Through Authorised Members
C. Necessary to remain present physically for dealing
D. Necessary to obey Rules and Bye-laws
Answer» C. Necessary to remain present physically for dealing
10.

SENSEX is an Index of which Stock Exchange?.

A. NSE
B. OTCEI
C. MCX
D. None of the above
Answer» D. None of the above
11.

Inclusion of a security in the official list of a stock exchange is called _________ and for that the company has to apply with ___________.

A. Listing, Managing Committee of Stock Exchange
B. Enrollment, Managing Committee of Stock Exchange
C. Listing, Board of Directors of Stock Exchange
D. Registration, ROC
Answer» A. Listing, Managing Committee of Stock Exchange
12.

____________ was set up, as a strong need was felt to protect the interest of investors and to have a systematic and organized working of the securities market in India.

A. Bombay Stock Exchange
B. National Stock Exchange
C. Over the Counter Exchange of India
D. Securities and Exchange Board of India
Answer» D. Securities and Exchange Board of India
13.

Collateral value of eligible Listed Securities is considered on ….

A. Average market price
B. Marked to market basis
C. Reputation of the promoters
D. None of the above
Answer» B. Marked to market basis
14.

SBTS stands for

A. Securities Buying and Trading Society
B. Software Based Trading Services
C. Selling and buying through screen
D. Screen Based Trading System
Answer» D. Screen Based Trading System
15.

Which is a mean to reduce the floating equity stock in the market?

A. Sell off
B. Negotiate
C. Buy Back
D. All of the above
Answer» C. Buy Back
16.

Which Stock Exchange of India was the first to grant permission to brokers for internet trading?

A. National Stock Exchange
B. Bombay Stock Exchange
C. Ahmedabad Stock Exchange
D. Kolkata Stock Exchange
Answer» A. National Stock Exchange
17.

Which Stock Exchange of India is based on the model of NASDAQ?

A. BSE
B. NSE
C. ASE
D. OTCEI
Answer» D. OTCEI
18.

At present securities are issued in which form?

A. Rematerialised
B. Dematerialized
C. Bank Credit
D. None of the Above
Answer» B. Dematerialized
19.

One of the features of Capital Market is ‘Ready and Continuous market’ which provides _____________ to the investors.

A. Safety
B. Long term Guarantee
C. Liquidity
D. None of the above
Answer» C. Liquidity
20.

In ____________ market fresh capital is raised.

A. Primary
B. Secondary
C. Intermediary
D. National
Answer» A. Primary
21.

Which is the market for financial assets that are close substitutes for money?

A. Monetary Market
B. Money Market
C. Capital Market
D. Currency Market
Answer» B. Money Market
22.

Return on Treasury Bills is ___________

A. Coupon Rate
B. Difference between Issue Price and Par Value
C. Negotiated
D. All of the above
Answer» B. Difference between Issue Price and Par Value
23.

Commercial Paper is generally issued by:

A. Reputed Corporates
B. Reputed and highly rated Corporates
C. RBI on behalf of the Central Government
D. None of the above
Answer» B. Reputed and highly rated Corporates
24.

Which Money Market instrument is a time deposit of specific maturity and issued in bearer form?

A. Commercial Paper
B. Commercial Bill
C. Certificate of Deposit
D. Call Money
Answer» C. Certificate of Deposit
25.

In which Money Market instrument default risk is absent?

A. Commercial Paper
B. Certificate of Deposit
C. Treasury Bills
D. Inter Corporate Deposits.
Answer» C. Treasury Bills
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