196
98.7k

430+ Financial Markets and Institutions Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) , Master of Business Administration (MBA) .

Chapters

More MCQs
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

Done Studing? Take A Test.

Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.