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410+ Financial Services Solved MCQs

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

Chapters

Chapter: Indian Financial System
1.

…………………..was the protector of funds and money in ancient Rome.

A. Juno Moneta
B. Henry Feyol
C. F.W.Taylor
D. None of these
Answer» A. Juno Moneta
2.

Money is matter of 4 function- A medium , a measure, a standard…………--.

A. Store
B. Bin-card
C. Commerce
D. Financial
Answer» A. Store
3.

Indian Financial System consists of financial market,…………….. and Financial intimidation.

A. financial instrument
B. services
C. underwriters
D. derivatives.
Answer» A. financial instrument
4.

------------------- are business organization that is mobilisers and depositors of savings and providing financial services.

A. Financial Institutions
B. head offices
C. Branches
D. none of these.
Answer» A. Financial Institutions
5.

………………………. are differ from Non-financial Business organization.

A. Financial Institutions
B. head offices
C. Branches
D. none of these.
Answer» A. Financial Institutions
6.

…………….. can be defined as the market in which financial assets are created or transferred.

A. Financial Market
B. financial service
C. Financial Instruments
D. head Offices.
Answer» A. Financial Market
7.

……………. this market is dominated by government, banks, and financial institutions.

A. money market
B. Capital Market
C. Organised Market
D. Unorganised
Answer» A. money market
8.

………………….market is also called as the security market.

A. Capital market
B. Money Market
C. Organised Market
D. Unorganised
Answer» A. Capital market
9.

………………….market deals with the multicurrency requirements.

A. Forex market
B. Money Market
C. Organised Market
D. Unorganised
Answer» A. Forex market
10.

……………….. bills are issued by central government.

A. Treasury Bills
B. Bills of Exchange
C. Dishonored bill
D. Unorganised
Answer» A. Treasury Bills
11.

Debt instruments are issued by corporate houses for raising short term financial resources from money market are called as ……………..

A. Commercial Paper
B. Certificate of deposits
C. . treasury bill
D. hybrid
Answer» A. Commercial Paper
12.

The markets which attracts funds in large volume and from all types of investors are called as …………

A. Broad financial market
B. Money Market
C. Organised
D. Unorganised
Answer» A. Broad financial market
13.

………………or liberalization aim at creating market oriented competitive financial system.

A. Financial Reforms
B. integration
C. financial repression
D. None of these
Answer» A. Financial Reforms
14.

………………appears to have an important role in the restructuring and liquidation of companies that are in distress.

A. Financial Intermediary
B. Financial Instruments
C. Organised Market
D. Firm’s Assets
Answer» A. Financial Intermediary
15.

…………….banker is any person who is engaged in the business of issue of management either by making arrangement regarding selling, buying, securities to manager.

A. Merchant
B. Money bankers
C. Non Banking Institutes
D. Unorganised
Answer» A. Merchant
16.

…………………..banking is the development of banking from commerce which frequently encountered a prolonged intermediate.

A. Merchant
B. Money bankers
C. Non Banking Institutes
D. Unauthorized
Answer» A. Merchant
17.

An outstanding development in this sphere was the conversion of the ……………

A. Industrial Finance Corporation
B. Non banking financial Institutes
C. Insurance Companies
D. None of the above
Answer» A. Industrial Finance Corporation
18.

DFIs stands for…………….

A. Development financial Institutes
B. Development of Banking institute
C. Development of financial Industries
D. Deputy Factor Service
Answer» A. Development financial Institutes
19.

The bonds issued by the DFIs were no longer eligible as…………….assets for banks.

A. SLR
B. NSE
C. IFCI
D. DFIs
Answer» A. SLR
20.

The factors which had adversely affected the profitability of the banking system were partly external is termed as ………………

A. macro –policy environment
B. staffing and branch spread
C. promoting savings
D. none of the above
Answer» A. macro –policy environment
21.

The factors which had adversely affected the profitability of the banking system were partly internal is termed as ………………

A. staffing and branch spread
B. macro –policy environment
C. promoting savings
D. none of the above
Answer» A. staffing and branch spread
22.

NBFCs Stands for

A. non banking financial corporations
B. Indian financial institutions
C. national banks factor corporation
D. none of the above
Answer» A. non banking financial corporations
23.

NBFCs are partly ………… and partly……………..

A. fees based and fund based
B. free and periodic
C. full fees and periodic
D. fund based and systematic
Answer» A. fees based and fund based
24.

…………….are emerging as the backbone of Indian Capital Market.

A. Mutual Fund
B. Investments
C. savings
D. Interests
Answer» A. Mutual Fund
25.

The present structure consists of domestic mutual funds sponsored by the ……………

A. UTI
B. LIC
C. NFCs
D. IFS
Answer» A. UTI
26.

……………..are encouraged, both in public and private sectors and they have been permitted to invest overseas.

A. Mutual Funds
B. Shares
C. Capital
D. Investments
Answer» A. Mutual Funds
27.

Secondary market represented an institutional mechanism was ………………

A. inadequate
B. incorrect
C. aggregate
D. exact
Answer» A. inadequate
28.

SEBI stands for ……………….

A. security exchange board of India
B. State Bank of India
C. sate electronic board of India
D. none of the above
Answer» A. security exchange board of India
29.

CDs stands for ………… and CPs stands for…………..

A. certificate of deposit & commercial paper
B. certify deputy manager & commercial bills
C. clear deposit & contract papers
D. contractual deposit & compact project
Answer» A. certificate of deposit & commercial paper
30.

…………………are appointed by the issuing companies in consultation with the merchant bankers.

A. underwriters
B. Mutual fund
C. Certificate of deposits’
D. treasury bills
Answer» A. underwriters
31.

Underwrites are appointed by the issuing companies in consultation with the …………………

A. merchant banks
B. Mutual fund
C. Certificate of deposits’
D. treasury bills
Answer» A. merchant banks
32.

In …………………this case the issue is underwritten by two or more underwriters jointly.

A. joint underwriting
B. sub underwriting
C. syndicate underwriting
D. firm underwriting
Answer» A. joint underwriting
33.

Under ………………..this case involves more than one underwriters.

A. sub underwriting
B. joint underwriting
C. syndicate underwriting
D. firm underwriting
Answer» A. sub underwriting
34.

……………..in this case underwriter agrees to take up a specified number of securities.

A. firm underwriting
B. sub underwriting
C. syndicate underwriting
D. joint underwriting
Answer» A. firm underwriting
35.

…………..is empowered to carry out the inspection of the bankers to the issue with a view to protecting the investors’ interest.

A. RBI
B. SBI
C. SEBI
D. Capital Market
Answer» A. RBI
36.

A ………….is a deed which is executed by the company in favour of the trustees named for the benefit of the debenture holder.

A. trust deed
B. Agreement
C. contract
D. none of above
Answer» A. trust deed
37.

A scheduled bank carrying on ……………..

A. commercial activity
B. financial activity
C. banking activity
D. none of the above
Answer» A. commercial activity
38.

………………is mandatory in order to act as debenture trustee.

A. . Certificate
B. agreement
C. contract
D. none of the above
Answer» A. . Certificate
Chapter: Introduction to Financial Markets
39.

In primary MARKETS the first time issued shares to be publicly traded, in stock market is considered as...

A. traded offering
B. public markets
C. initial public offering.
D. secondary market
Answer» C. initial public offering.
40.

The stock or shares that are also sold to investors without transacting through financial institution are classified as

A. direct transfer
B. indirect transfer
C. global transfer
D. home transfer
Answer» A. direct transfer
41.

The type of financial security which have linked payoff to another issued security is classified as –

A. linked security
B. derivative security
C. payable security.
D. receivables
Answer» B. derivative security
42.

In primary markets the property of shares which made it easy to sell newly issued security is considered as …

A. increased liquidity
B. decreased liquidity
C. money flow
D. Surplus
Answer» A. increased liquidity
43.

The money market where debt and stock are traded and maturity period is more than a year is classified as….

A. short term markets
B. capital markets
C. long term markets
D. money market
Answer» B. capital markets
44.

The example of derivative securities include.

A. swap contract
B. option contract
C. future contract
D. all of these
Answer» D. all of these
45.

In foreign financial markets , the growth is represented by the factors such as --

A. saving in foreign countries
B. investment opportunity
C. a & b
D. none of these
Answer» C. a & b
46.

The services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as----

A. business allocation
B. sector allocation
C. credit allocation
D. factor allocation
Answer» D. factor allocation
47.

The type of market in which securities with less than one year maturity are traded is classified as…

A. money market
B. capital market
C. global market
D. Stock exchange.
Answer» A. money market
48.

The type of structured market through which the funds flow with the help of financial instruments such as bond and stock is classified as –

A. financial market
B. funds market
C. flow market
D. capital market
Answer» A. financial market
49.

The process of selling and buying of stocks and bonds is classified as

A. S- trade
B. e trade
C. stock trade
D. none of these
Answer» B. e trade
50.

In capital markets the major suppliers of trading instruments are—

A. government and corporation
B. liquid corporation
C. instrumental corporation
D. Private Institutes
Answer» A. government and corporation

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