

McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
51. |
Capital market regulator is: |
A. | R B I |
B. | I R D A |
C. | N S E |
D. | B S E |
Answer» D. B S E |
52. |
Which of the following organisations provides a guarantee to the exporters? |
A. | Exim Bank |
B. | Export Credit Guarantee Corporation (E C G C) |
C. | Director General Foreign Trade |
D. | Reserve Bank of India |
Answer» B. Export Credit Guarantee Corporation (E C G C) |
53. |
The financial Market where debt and stocks are traded and maturity period is more than a year is classified as: |
A. | Shorter term Markets |
B. | Capital Markets |
C. | Counter Markets |
D. | Long-term Markets |
Answer» B. Capital Markets |
54. |
The market in which new Securities are issued by the Corporations to raise funds are called: |
A. | Primary Markets |
B. | Secondary Markets |
C. | Gross Markets |
D. | Proceeds Markets |
Answer» A. Primary Markets |
55. |
Which type of preference Shares can be converted into equity? |
A. | Redeemable Bonds |
B. | Convertible Bonds |
C. | Non- Convertible Bonds |
D. | All of the above |
Answer» B. Convertible Bonds |
56. |
Which is not one of the development steps taken for Capital Market? |
A. | Open Outcry |
B. | Book Building |
C. | Establishing SEBI |
D. | Screen Based Trading |
Answer» A. Open Outcry |
57. |
Which of the following is least risky: |
A. | Equity |
B. | Corporate Bonds |
C. | Treasury Bills |
D. | Certificate of Deposits |
Answer» C. Treasury Bills |
58. |
Which security holders will receive arrears of the non- payment of dividends by the Company during the loss? |
A. | Cumulative Preference Share Holders |
B. | Non- Cumulative Preference Share Holders |
C. | Convertible Preference Share Holder |
D. | Ordinary Equity Holders |
Answer» A. Cumulative Preference Share Holders |
59. |
What is the simple example of Stock Index in India: |
A. | NSE |
B. | Sensex |
C. | BSE |
D. | SEBI |
Answer» B. Sensex |
60. |
The amount which is paid at the time of maturity of the bond is equal to: |
A. | Face Value |
B. | Yield |
C. | Coupon |
D. | Discounted Price |
Answer» A. Face Value |
61. |
Which one of the following agencies in the Indian Capital market has authority to regulate the Mutual fund markets in India? |
A. | IRDA |
B. | SEBI |
C. | RBI |
D. | IBPS |
Answer» C. RBI |
62. |
In capital market the major suppliers of trading Instruments are: |
A. | Government and corporations |
B. | Liquid Corporations |
C. | Instrumental Corporations |
D. | Manufacturing Corporations |
Answer» A. Government and corporations |
63. |
In primary markets, the property of shares which made it easy to sell newly issued security is concerned as: |
A. | Increased Liquidity |
B. | Decreased Liquidity |
C. | Money Flow |
D. | Large Funds |
Answer» A. Increased Liquidity |
64. |
The transaction costs of trading of financial Instruments in centralized market is classified as: |
A. | Flexible Costs |
B. | Low transaction Costs |
C. | High Transaction Costs |
D. | Constant Costs |
Answer» B. Low transaction Costs |
65. |
In primary market, the first time issued shares to be publicly traded, in stock market is considered as: |
A. | Traded Offering |
B. | Public Markets |
C. | Issuance Offering |
D. | Initial Public Offering |
Answer» D. Initial Public Offering |
66. |
The exchange markets and over the counter markets are considered as two types of: |
A. | Floating market |
B. | Risky market |
C. | Secondary market |
D. | Primary market |
Answer» C. Secondary market |
67. |
The bonds that are backed by cash flow from project and are sold to finance particular project are classified as: |
A. | Finance Bonds |
B. | Revenue Bonds |
C. | Financing Bonds |
D. | Project Bonds |
Answer» B. Revenue Bonds |
68. |
The Component of Capital Market are: |
A. | Equity Market |
B. | Debt Market |
C. | Derivative Market |
D. | All of the above |
Answer» D. All of the above |
69. |
There are ___________ categories of Industrial Security Market. |
A. | 1 |
B. | 2 |
C. | 3 |
D. | 4 |
Answer» B. 2 |
70. |
Who controls the capital market in India? |
A. | SEBI |
B. | RBI |
C. | IRDA |
D. | NABARD |
Answer» A. SEBI |
71. |
Which of the following words does not belong to the stock exchange? |
A. | KPO |
B. | NAV |
C. | NSE |
D. | IPO |
Answer» A. KPO |
72. |
Which term most accurately describes selling shares at a higher price than the price at which they were bought? |
A. | Loss |
B. | Profit |
C. | Asset |
D. | Dividend |
Answer» B. Profit |
73. |
How many companies are included in the SENSEX? |
A. | 50 |
B. | 111 |
C. | 30 |
D. | None |
Answer» C. 30 |
74. |
Which of the following statements is true? |
A. | SEBI was established in 1988 |
B. | The Harshad Mehta share scandal happened in 1992 |
C. | Unit Trust of India was established in 1954 |
D. | SEBI is not a constitutional body |
Answer» C. Unit Trust of India was established in 1954 |
75. |
Maintaining a foreign currency account is helpful to |
A. | Avoid transaction cost. |
B. | Avoid exchange risk. |
C. | Avoid both transaction cost and exchange risk. |
D. | Avoid exchange risk and domestic currency depreciation |
Answer» C. Avoid both transaction cost and exchange risk. |
76. |
India’s foreign exchange rate system is? |
A. | Free float |
B. | Managed float |
C. | Fixed |
D. | Fixed target of band |
Answer» B. Managed float |
77. |
Hedging transaction is indicated by |
A. | Transactions in odd amounts |
B. | Presentation of documentary support |
C. | Frequency of such transactions |
D. | None of the above |
Answer» D. None of the above |
78. |
The acronym SWIFT stands for |
A. | Safety Width in Financial Transactions. |
B. | Society for Worldwide International Financial Telecommunication. |
C. | Society for Worldwide Interbank Financial Telecommunication. |
D. | Swift Worldwide Information for Financial Transaction. |
Answer» C. Society for Worldwide Interbank Financial Telecommunication. |
79. |
Indirect rate in foreign exchange means |
A. | The rate quoted with the units of home currency kept fixed. |
B. | The rate quoted with units of foreign currency kept fixed. |
C. | The rate quoted in terms of a third currency. |
D. | None of the above. |
Answer» A. The rate quoted with the units of home currency kept fixed. |
80. |
The exchange rate is |
A. | The price of one currency relative to gold. |
B. | The value of a currency relative to inflation. |
C. | The change in the value of money over time. |
D. | The price of one currency relative to another. |
Answer» D. The price of one currency relative to another. |
81. |
India is facing continuous deficit in its balance of payments. In the foreign exchange market rupee is expected to |
A. | Depreciate. |
B. | Appreciate. |
C. | Show no specific tendency. |
D. | Depreciate against currencies of the countries with positive balance of payment and appreciate |
Answer» A. Depreciate. |
82. |
The effect of speculation on exchange rate is |
A. | It causes violent fluctuations in exchange rate. |
B. | It aggravates the market trends. |
C. | Either or both of A and B. |
D. | Neither A nor B. |
Answer» C. Either or both of A and B. |
83. |
The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment. |
A. | Export of goods and services |
B. | Import of goods and services. |
C. | Export of goods and services and capital inflows. |
D. | Import of goods and services and capital outflows. |
Answer» C. Export of goods and services and capital inflows. |
84. |
If PPP holds |
A. | The nominal exchange rate will not change. |
B. | The real exchange rate will not change. |
C. | Both real and nominal exchange rates will not change. |
D. | Both real and nominal exchange will move together |
Answer» B. The real exchange rate will not change. |
85. |
A spot transaction in the foreign exchange market involves the |
A. | Exchange of exports and imports at a specified future date. |
B. | Exchange of bank deposits at a specified future date. |
C. | Immediate (within two days) exchange of exports and imports. |
D. | Immediate (within two days) exchange of bank deposits. |
Answer» D. Immediate (within two days) exchange of bank deposits. |
86. |
Forward exchange rates |
A. | Involve the immediate exchange of bank deposits. |
B. | Involve the exchange of bank deposits at some specified future date. |
C. | Involve the immediate exchange of imports and exports. |
D. | None of the above. |
Answer» B. Involve the exchange of bank deposits at some specified future date. |
87. |
When the value of the British pound changes from $1.50 to $1.25, the pound has ________ and the dollar has ________. |
A. | appreciated; appreciated |
B. | depreciated; appreciated |
C. | appreciated; depreciated |
D. | depreciated; depreciated |
Answer» B. depreciated; appreciated |
88. |
The foreign exchange market |
A. | Is organized as an over-the-counter market in which several hundred dealers stand ready to buy and sell deposits denominated in foreign currencies. |
B. | Is very competitive. |
C. | Functions no differently from a centralized market. |
D. | All of the above. |
Answer» D. All of the above. |
89. |
In the long run, ________ affect the exchange rate. |
A. | relative price levels |
B. | tariffs and quotas |
C. | productivity |
D. | All of the above. |
Answer» D. All of the above. |
90. |
Exchange rates are determined in |
A. | The money market. |
B. | The foreign exchange market. |
C. | The stock market. |
D. | The capital market. |
Answer» B. The foreign exchange market. |
91. |
The immediate (two-day) exchange of one currency for another is a |
A. | Forward transaction. |
B. | Spot transaction. |
C. | Money transaction. |
D. | Exchange transaction. |
Answer» B. Spot transaction. |
92. |
An agreement to exchange dollar bank deposits for euro bank deposits in one month is a |
A. | Spot transaction. |
B. | Future transaction. |
C. | Forward transaction. |
D. | Monthly transaction. |
Answer» C. Forward transaction. |
93. |
In the foreign exchange market, if the interest rate on foreign deposits increases, holding everything else constant, |
A. | The expected return schedule for foreign deposits shifts to the right. |
B. | The dollar depreciates. |
C. | The foreign currency appreciates. |
D. | All of the above. |
Answer» D. All of the above. |
94. |
Although market trades are said to involve the buying and selling of currencies, most trades involve the buying and selling of |
A. | Bank deposits denominated in different currencies. |
B. | SDRs. |
C. | Go |
Answer» A. Bank deposits denominated in different currencies. |
95. |
Higher tariffs and quotas cause a country’s currency to _____ in the _____ run. |
A. | depreciate; short |
B. | appreciate; short |
C. | depreciate; long |
D. | appreciate; long |
Answer» D. appreciate; long |
96. |
Lower tariffs and quotas cause a country’s currency to _____ in the _____ run. |
A. | depreciate; short |
B. | appreciate; short |
C. | depreciate; long |
D. | appreciate; long |
Answer» C. depreciate; long |
97. |
Anything that increases the demand for foreign goods relative to domestic goods tends to _____ the domestic currency because domestic goods will only continue to sell well if the value of the domestic currency is _____. |
A. | depreciate; lower |
B. | depreciate; higher |
C. | appreciate; lower |
D. | appreciate; higher |
Answer» A. depreciate; lower |
98. |
If a factor increases the demand for _____ goods relative to _____ goods, the domestic currency will appreciate. |
A. | foreign; domestic |
B. | foreign; foreign |
C. | domestic; domestic |
D. | domestic; foreign |
Answer» D. domestic; foreign |
99. |
An increase in productivity in a country will cause its currency to _____ because it can produce goods at a _____ price. |
A. | depreciate; lower |
B. | appreciate; lower |
C. | depreciate; higher |
D. | appreciate; higher |
Answer» B. appreciate; lower |
100. |
Which agency regulates and supervises NBFCs? |
A. | Finance Ministry |
B. | SEBI |
C. | RBI |
D. | Respective state government |
Answer» C. RBI |
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