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
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