McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 51. |
Among the following items which does NOT represent the Application of Funds? |
| A. | Payment of Interim Dividend |
| B. | Payment of Supervisor’s Salary |
| C. | Issue of Share Capital |
| D. | Payment of Taxes |
| Answer» C. Issue of Share Capital | |
| 52. |
Until February 1973, which one of the following was prevalent in World Monetary System? |
| A. | Free Floating Exchange Rate System |
| B. | Adjustable Peg Exchange Rate System |
| C. | Bench marking Exchange Rate System |
| D. | None of the above |
| Answer» B. Adjustable Peg Exchange Rate System | |
| 53. |
Which one of the following is NOT referred to as ‘Major’ or ‘Hard’ Currency? |
| A. | US Dollar |
| B. | French Frank |
| C. | Euro |
| D. | India Rupee |
| Answer» D. India Rupee | |
| 54. |
Rs. 75.17/USD is which type of quotation? |
| A. | Indirect Quote |
| B. | Direct Quote |
| C. | Bilateral Quote |
| D. | Cross Quote |
| Answer» B. Direct Quote | |
| 55. |
In a two way foreign exchange quotation, the difference between ask and bid prices is called ____________. |
| A. | Difference |
| B. | Margin |
| C. | Spread |
| D. | None of the above |
| Answer» C. Spread | |
| 56. |
Below data is available: Spot Exchange Rate 6 Month’s Forward Rate Rs./USD 75.17 Rs. 75.00 So, the forward rate is at ___________________ |
| A. | Premium |
| B. | Discount |
| C. | At Par |
| D. | None of the above |
| Answer» B. Discount | |
| 57. |
From the data given below which option is true? Spot 1 month’s Forward Rs./GBP 94.85 94.95 |
| A. | 1 month’s forward is at 1.27% premium |
| B. | 1 month’s forward is at 0.11% premium |
| C. | 1 month’s forward is at 1.27% discount |
| D. | 1 month’s forward is at 0.11% discount |
| Answer» A. 1 month’s forward is at 1.27% premium | |
| 58. |
The rate of exchange of two currencies on the basis of exchange quotes of other pairs of currencies are derived when a quote of home currency (or desired currency) to any other currency is not available in the Foreign Exchange market is called ____________. |
| A. | Direct Quote |
| B. | Exchange Rate |
| C. | Cross Rate |
| D. | Dependent Rate |
| Answer» C. Cross Rate | |
| 59. |
Which of the below mentioned contract is a standardized contract? |
| A. | Futures Contract |
| B. | Forward Contract |
| C. | Both a and b |
| D. | None of the above |
| Answer» A. Futures Contract | |
| 60. |
An Option which can be exercised only on the maturity date is known as __________. |
| A. | Put Option |
| B. | American Option |
| C. | European Option |
| D. | Call Option |
| Answer» C. European Option | |
| 61. |
There is a close link between the interest rates in two countries and the forward rate premium or discount. The theory about this is : |
| A. | Purchasing Power Parity |
| B. | Expectations Theory |
| C. | Covered Interest Arbitrage and interest Rate Parity |
| D. | None of the above. |
| Answer» C. Covered Interest Arbitrage and interest Rate Parity | |
| 62. |
According to Fisher effect, the nominal rate is equal to the real interest rate plus an adjustment for ______________ |
| A. | FD Rate |
| B. | Spot Rate |
| C. | Inflation |
| D. | Premium |
| Answer» C. Inflation | |
| 63. |
The acquisition of existing firms or plants as a means of FDI is called ___________. |
| A. | Green Field Investments |
| B. | Dark Zone Investments |
| C. | Growing Zone Investments |
| D. | Brown Field Investments |
| Answer» D. Brown Field Investments | |
| 64. |
McDonald’s purchasing farms in India to grow potatoes is which type of FDI? |
| A. | Green Field |
| B. | Agriculture |
| C. | Vertical |
| D. | Horizontal |
| Answer» C. Vertical | |
| 65. |
When an American Company acquires a division or unit of Indian company, the US is said to be a ______________ Country. |
| A. | Sending |
| B. | Receiving |
| C. | Promoting |
| D. | None of the above |
| Answer» A. Sending | |
| 66. |
An act of buying currency in one market at a lower price and selling it in another at higher price resulting in equilibrium in exchange rates of different currencies is called _________________. |
| A. | Hedging |
| B. | Speculation |
| C. | Trading |
| D. | Arbitrage |
| Answer» D. Arbitrage | |
| 67. |
Which of these are considered as nerve centres of foreign exchange activity. |
| A. | London, New York and Tokyo |
| B. | London, New Jersey and Mumbai |
| C. | London, New York and Moscow |
| D. | London, New York and Delhi |
| Answer» A. London, New York and Tokyo | |
| 68. |
Who are key participants of Foreign Exchange Market? |
| A. | Importers & Exporters |
| B. | Traders and Foreign Exchange Brokers |
| C. | Speculators |
| D. | All of the above |
| Answer» D. All of the above | |
| 69. |
When the exposed position in a foreign currency is covered through borrowing or lending in the money market, it is called ______________. |
| A. | Borrowing-Lending technique |
| B. | Futures Contract |
| C. | Currency Swap |
| D. | Money Market Hedge |
| Answer» D. Money Market Hedge | |
| 70. |
An efficient Capital Market provides operational efficiency through… |
| A. | Simplified transaction procedure |
| B. | Lowering settlement timings |
| C. | Lowering transaction costs |
| D. | All of the above |
| Answer» D. All of the above | |
| 71. |
Full form of WDM segment is ……….. |
| A. | Wholesale Debt Market |
| B. | Wholesale Debenture Market |
| C. | Wholesale Demand Management |
| D. | Wholesale Deposit Market |
| Answer» A. Wholesale Debt Market | |
| 72. |
A facility of carrying forward the transaction from one settlement to another in BSE was called _______ |
| A. | Carry forward |
| B. | Badla |
| C. | Vayda |
| D. | Forward |
| Answer» B. Badla | |
| 73. |
For Book Building Process a merchant banker is appointed as a __________ |
| A. | Book Keeper |
| B. | Book Writer |
| C. | Book Runner |
| D. | None of the Above |
| Answer» C. Book Runner | |
| 74. |
Which one of the below is NOT a category of participant in the Primary Capital Market? |
| A. | Issuers of securities |
| B. | Investors in securities. |
| C. | Traders of securities |
| D. | Intermediaries |
| Answer» C. Traders of securities | |
| 75. |
Which of the below financial product / instrument cab be traded in the secondary market? |
| A. | Equity Shares |
| B. | Commercial Paper |
| C. | Bonds |
| D. | All of the above |
| Answer» D. All of the above | |
| 76. |
__________________ is a benchmark Indian Stock Market Index that represents the weighted average of 50 of the largest Indian Companies listed on the National Stock Exchange. |
| A. | SENSEX |
| B. | NIFTY |
| C. | SIFTY |
| D. | INDEX |
| Answer» B. NIFTY | |
| 77. |
What is the full form of ECB? |
| A. | External Commercial Borrowings |
| B. | External Commercial Bonds |
| C. | Equity Capital Balance |
| D. | None of the Above |
| Answer» A. External Commercial Borrowings | |
| 78. |
For listed companies the prices are publically arrived at on the basis of demand and supply and hence stock exchange quotations reflect the real value of the security. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 79. |
SEBI started its actual functioning when….. |
| A. | It was set up in 1988 |
| B. | RBI gave it a permission in 1989 |
| C. | SEBI Act was passed in 1992 |
| D. | It was registered |
| Answer» C. SEBI Act was passed in 1992 | |
| 80. |
Full Form of NEAT is |
| A. | National Exchange for Automated Trading |
| B. | National Equity Automated Trading |
| C. | National Exchange for Analysis and Trading |
| D. | None of the Above |
| Answer» A. National Exchange for Automated Trading | |
| 81. |
What is the full form of NSDL |
| A. | National Stock Dealing Ltd. |
| B. | National Securities Dealers Ltd. |
| C. | National Securities Depository Ltd. |
| D. | National Stock and Debt Ltd. |
| Answer» C. National Securities Depository Ltd. | |
| 82. |
Market making is a unique concept of which stock exchange of India? |
| A. | NSE |
| B. | BSE |
| C. | ISE |
| D. | OTCEI |
| Answer» D. OTCEI | |
| 83. |
Capital Market in India plays a role in developing integration among: |
| A. | Real Sector and Financial Sector |
| B. | Long-term and Short-term interest costs |
| C. | Equity and Debt Instruments |
| D. | All of the above |
| Answer» D. All of the above | |
| 84. |
Sentence A – Through Rights issue fresh capital can be raised and Sentence B – Through a Bonus Issue Fresh capital can be raised. |
| A. | Only Sentence A is true |
| B. | Both Sentences A and B are true |
| C. | Only Sentence of B is true |
| D. | Both Sentences A and B are False |
| Answer» A. Only Sentence A is true | |
| 85. |
Book Building is basically ____________ of shares. |
| A. | An auction |
| B. | A process of listing |
| C. | Credit rating |
| D. | None of the Above |
| Answer» A. An auction | |
| 86. |
In the process of Book Building if the public portion gets oversubscribed,….. |
| A. | The size of the Public Portion is raised |
| B. | The allotment is made on a proportionate basis |
| C. | The placement portion is cancelled |
| D. | None of the above |
| Answer» B. The allotment is made on a proportionate basis | |
| 87. |
Stock Futures, Stock Options, Index Futures and Index Options are ___________ |
| A. | Bonds |
| B. | Combination of Equity and Debt |
| C. | Equity Derivatives |
| D. | None of the Above |
| Answer» C. Equity Derivatives | |
| 88. |
Which Stock Exchange of India was set up with an objective to meet the current international standards of securities market? |
| A. | BSE |
| B. | ISE |
| C. | OTCEI |
| D. | NSE |
| Answer» D. NSE | |
| 89. |
To provide a focal point for central bank (RBI) intervention for influencing liquidity and general level of interest rates in the economy is an important function of |
| A. | Secondary Market |
| B. | Money Market |
| C. | Capital Market |
| D. | Forex Market |
| Answer» B. Money Market | |
| 90. |
Indigenous bankers and money lenders are constituents of _____________ |
| A. | Organised Money Market |
| B. | Organised Stock Market |
| C. | Unorganised Money Market |
| D. | None of the Above |
| Answer» C. Unorganised Money Market | |
| 91. |
The purchase and sell of which of the following instrument is effected through Subsidiary General Ledger (SGL) account? |
| A. | Treasury Bills |
| B. | Options |
| C. | Equity Shares |
| D. | All of the Above |
| Answer» A. Treasury Bills | |
| 92. |
Minimum Subscription amount of a Certificate of Deposit is ___________. |
| A. | Rs. 25,000 |
| B. | Rs. 50,000 |
| C. | Rs. 1,00,000 |
| D. | Rs. 5,00,000 |
| Answer» C. Rs. 1,00,000 | |
| 93. |
Which instrument was introduced in year 1990 with a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowings? |
| A. | Certificate of Deposit |
| B. | Commercial Paper |
| C. | Commercial Bill |
| D. | None of the Above |
| Answer» B. Commercial Paper | |
| 94. |
When money is lent for more than a day and up to 14 days it is called as __________ |
| A. | Demand Money |
| B. | Call Money |
| C. | Put Money |
| D. | Notice Money |
| Answer» D. Notice Money | |
| 95. |
What type of relationship is there between call rates and short-term money market instruments such as CDs and CPs? |
| A. | Inverse |
| B. | Direct |
| C. | Negative |
| D. | None of the Above |
| Answer» A. Inverse | |
| 96. |
_______________ is an important tool to finance credit sales? |
| A. | Commercial Bill |
| B. | Commercial Paper |
| C. | Certificate of Deposit |
| D. | None of the Above |
| Answer» A. Commercial Bill | |
| 97. |
Which instrument involves high risk and high returnsand helps corporates in solving temporary capital crisis without many formalities? |
| A. | Equity Shares |
| B. | Term Loan |
| C. | Inter-corporate Deposits |
| D. | All of the Above |
| Answer» C. Inter-corporate Deposits | |
| 98. |
Which of the following are money market instruments? |
| A. | Treasury Bills |
| B. | Commercial Bills |
| C. | Call Money |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 99. |
What is the full form of CRISIL? |
| A. | Credit Rating and Investment Services of India Limited |
| B. | Credit Rating Information Services of India Limited |
| C. | Credit Rating Institution for Small Industries Limited |
| D. | Credit Rating Information Sector of India Limited |
| Answer» B. Credit Rating Information Services of India Limited | |
| 100. |
ICRA was incorporated in which year? |
| A. | 1990 |
| B. | 1991 |
| C. | 1992 |
| D. | 1993 |
| Answer» B. 1991 | |
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