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100+ Financial Markets and Services Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Finance (B.Com Finance) .

1.

---------- is a set of complex or closely connected or intermixed institutions, agents, practices, markets claims etc. In an economy.

A. Financial intermediary
B. Financial company
C. Financial system
D. None of these
Answer» C. Financial system
2.

Bonds, bearer debenture, government securities are the example for

A. Non marketable asset
B. Marketable asset
C. Primary asset
D. Secondary asset
Answer» B. Marketable asset
3.

--------is a money assets consist of coins and currency notes and created money.

A. Cash asset
B. Stock asset
C. Debt asset
D. Primary asset
Answer» A. Cash asset
4.

Market for short term funds usually for one year is called

A. Capital market
B. Money market
C. Primary market
D. Secondary market
Answer» B. Money market
5.

-----------is a place where foreign moneys are bought and sold

A. Money market
B. Financial mortgage market
C. FOREX market
D. Capital market
Answer» C. FOREX market
6.

Those persons who do not accept deposit form the public, but merely lend their own funds

A. Bankers
B. Borrowers
C. Agents
D. Money lenders
Answer» D. Money lenders
7.

FERA was passed by the Govt of India in

A. 1947
B. 1946
C. 1945
D. 1948
Answer» A. 1947
8.

LAF ( liquidity adjustment facility) was introduced by RBI during

A. July 2000
B. June 2000
C. June 2001
D. July 2001
Answer» B. June 2000
9.

Banking regulation act was passed in

A. 1939
B. 1949
C. 1945
D. 1935
Answer» B. 1949
10.

To facilitate multiple rediscounting and reduce paper movements RBI introduce

A. DUPN
B. SUPN
C. CURN
D. DURN
Answer» A. DUPN
11.

------is an amount borrowed or lent on demand for a very short period

A. Call money
B. Notice money
C. Both A&B
D. None of these
Answer» C. Both A&B
12.

RBI issue ------day treasury bills in 1977

A. 14
B. 40
C. 344
D. 91
Answer» A. 14
13.

Money market instruments consist of

A. CD’s
B. CP’s
C. MMMFS
D. All of these
Answer» D. All of these
14.

In MMMFS the second and third ‘M’ consist of

A. Money market
B. Market mutual
C. Mutual market
D. Money mutual
Answer» B. Market mutual
15.

The market for industrial securities is termed as

A. Long term loan market
B. Govt securities market
C. Money market
D. None of these
Answer» D. None of these
16.

SEBI was established in

A. 4th April 1982
B. 4th April 1992
C. 4th June 1992
D. 4th June 1993
Answer» B. 4th April 1992
17.

The markets which generally confined to the stock exchanges

A. Primary market
B. Secondary market
C. Tertiary market
D. All of these
Answer» B. Secondary market
18.

Government securities market also called

A. Industrial securities
B. Guilt edged securities
C. MM securities
D. Capital securities
Answer» B. Guilt edged securities
19.

Long term loan market includes

A. Term loan market
B. Mortgage market
C. Financial guarantee market
D. All of these
Answer» D. All of these
20.

BSE’s online trading system is called

A. COLT
B. DOLT
C. BOLT
D. ROLT
Answer» C. BOLT
21.

ETF stands for

A. Exchange traded funds
B. Exchange traded facility
C. Exchange traded forms
D. Exchange traded finance.
Answer» A. Exchange traded funds
22.

--------is an equity linked debt security

A. ADR
B. GDR
C. Euro issues
D. FCCB
Answer» D. FCCB
23.

Companies are permitted to issue a new class of shares named nonvoting shares as per

A. Sec 85 A
B. Sec 84 A
C. Sec 89 A
D. Sec 86 A
Answer» D. Sec 86 A
24.

In 2001 SEBI guidelines mandated a minimum level of public holding at ----% for companies carrying out fresh IPO’s

A. 23%
B. 24%
C. 25%
D. 26%
Answer» C. 25%
25.

--------pool resources from those who save and allocate them to various investment opportunities

A. Mutual funds
B. LIC
C. Banks
D. RBI
Answer» A. Mutual funds
26.

A) a debenture is an acknowledgement of debt due by a company issued under a common seal B) bonus shares can be issued only out of free reserves built out of revenue profit or share premium collected in cash

A. A is true B is false
B. A is false B is true
C. Both are true
D. Both are false
Answer» C. Both are true
27.

Process used by companies raising capital through IPO’s and FPO’s to aid price and demand discovery

A. ESOP
B. Book building
C. Bonus issue
D. Euro issue
Answer» B. Book building
28.

In the methods of marketing securities BOD stands for

A. Board of directors
B. Buy out deals
C. Bought out discount
D. Bought out deals
Answer» D. Bought out deals
29.

FDI stands for

A. Foreign Development Institution
B. Foreign Direct Investment
C. Financial Direct Investment
D. Foreign Development Investment
Answer» B. Foreign Direct Investment
30.

Indian companies are allowed to raise capital in the international market through the issue of

A. ADR
B. GDR
C. ADR & GDR
D. None of these
Answer» C. ADR & GDR
31.

Bonds that are denominated in a currency other than that of the country in which they are issued

A. Drop lock bond
B. Euro bond
C. Straight debt bond
D. Convertible bond
Answer» B. Euro bond
32.

-----is a dollar denominated form of equity ownership

A. ADR
B. GDR
C. SDR
D. USD
Answer» A. ADR
33.

The apex authority of insurance industry

A. IBRD
B. IRDA
C. RBI
D. LIC
Answer» B. IRDA
34.

GIC has its registered office and head quarters in

A. Luck now
B. Mumbai
C. Chennai
D. Maharashtra
Answer» B. Mumbai
35.

------was founded in 1956 with the merger of 243 insurance companies and provident societies

A. LIC
B. GIC
C. RBI
D. SBI
Answer» A. LIC
36.

IRDA act was passed in

A. 1999
B. 2000
C. 2001
D. 2002
Answer» B. 2000
37.

Identify public sector undertaking

A. United India insurance
B. HDFC life
C. ICICI prudential
D. Bharti Axa
Answer» A. United India insurance
38.

General insurance include

A. Auto insurance
B. Life insurance
C. Both A& B
D. None of these
Answer» A. Auto insurance
39.

-----is a form of protection against possible risk

A. Banking
B. Factoring
C. Insurance
D. Investment
Answer» C. Insurance
40.

A) BSE was the first to offer screen based trading all over India B) nse is the leading and the oldest stock exchange in India as well as in Asia.

A. A is true B is false
B. B is true A is false
C. Both are true
D. Both are false
Answer» D. Both are false
41.

Stock exchange also referred as

A. Primary market
B. FOREX market
C. Secondary market
D. OTCEI
Answer» C. Secondary market
42.

Identify one which is not the function of stock exchange

A. Safety of funds
B. Fair price determination
C. Provide ready market
D. Raising of capital
Answer» D. Raising of capital
43.

--------is a process through which any member-owned organisation becomes a shareholder-owned company

A. Delisting
B. Demutualization
C. Recapitalization
D. Demembership
Answer» B. Demutualization
44.

NSE indices includes

A. CNX MID CAP
B. CNX NIFTY JUNIOR
C. S&P CNX NIFTY
D. All of these
Answer» D. All of these
45.

BSE index is also called

A. SENSEX
B. NIFTY
C. NASDAQ
D. None of these
Answer» A. SENSEX
46.

------is the first exchange for small companies

A. BSE
B. NSE
C. OTCEI
D. SEBI
Answer» C. OTCEI
47.

Selling of a security that an investor does not own is called

A. Small selling
B. Short selling
C. Credit sale
D. None of these
Answer» B. Short selling
48.

RBI was established in

A. 1945
B. 1935
C. 1955
D. 1949
Answer» B. 1935
49.

--------refers to a fixed number of units of the underlying asset that form part of a single F&O contract

A. Forward
B. Lot size
C. Lottery
D. Future
Answer» B. Lot size
50.

At present India have two depositories namely

A. NDSL & CSDL
B. NSDL & CDSL
C. SDNL & SDCL
D. DLNS & SLCD
Answer» B. NSDL & CDSL

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