McqMate
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) .
| 51. |
Which of the following was set up mainly for providing finance to private sector? |
| A. | IDBI |
| B. | IFCI |
| C. | ICICI |
| D. | all of these |
| Answer» C. ICICI | |
| 52. |
NABARD was set up in the year |
| A. | 1991 |
| B. | 1881 |
| C. | 1982 |
| D. | 1972 |
| Answer» C. 1982 | |
| 53. |
An example of a derivative security is ______. |
| A. | a common share of General Motors |
| B. | a call option on Mobil stock |
| C. | a commodity futures contract |
| D. | B and C |
| Answer» D. B and C | |
| 54. |
Interest rate in the money market funds are |
| A. | Determined by the RBI |
| B. | determined by the SBI |
| C. | Determined by the market forces |
| D. | none of these |
| Answer» C. Determined by the market forces | |
| 55. |
Money market include |
| A. | Only organized players |
| B. | only unorganized players |
| C. | both organized and unorganized players |
| Answer» C. both organized and unorganized players | |
| 56. |
Income – Expenses = -------------. |
| A. | Savings |
| B. | investment |
| C. | money |
| D. | none of these |
| Answer» A. Savings | |
| 57. |
------------- is postponement of current consumption |
| A. | money |
| B. | savings |
| C. | investments |
| D. | all of these |
| Answer» B. savings | |
| 58. |
-------------.means a number of securities/assets put together. |
| A. | Investment |
| B. | portfolio |
| C. | savings |
| D. | none of these |
| Answer» B. portfolio | |
| 59. |
SEC is a regulator of -------------. a) India b) Britain c) USA d) none of these 65. Fixed deposits mobilized by NBFCs are regulated by -------------. |
| A. | SEBI |
| B. | RBI |
| C. | IRDA |
| D. | Finance Ministry |
| Answer» C. IRDA | |
| 60. |
Debenture trading is ------------- in India. |
| A. | popular |
| B. | not popular |
| C. | prohibited |
| D. | none of these |
| Answer» B. not popular | |
| 61. |
Debt instruments which have a maturity of less than one year called -------------. |
| A. | Secondary market instruments |
| B. | money market instruments |
| C. | capital market instruments |
| D. | none of these |
| Answer» B. money market instruments | |
| 62. |
------------- is a vehicle to get entry into the asset classes. |
| A. | Capital market |
| B. | Mutual fund |
| C. | Debt market |
| D. | all of these |
| Answer» B. Mutual fund | |
| 63. |
-------------- creates high risk and is illegal. |
| A. | Speculation |
| B. | Gambling |
| C. | Investment |
| D. | all of these |
| Answer» B. Gambling | |
| 64. |
The pivotal position in the Indian money market is adorned by |
| A. | Commercial bank |
| B. | non banking financial companies |
| C. | RBI |
| D. | none of these |
| Answer» C. RBI | |
| 65. |
The rate at which RBI lends short term funds to bank is |
| A. | Reverse repo rate |
| B. | repo rate |
| C. | interest rate |
| D. | none of these |
| Answer» B. repo rate | |
| 66. |
The proportion of deposits that banks have to keep with RBI is |
| A. | CRR |
| B. | SLR |
| C. | PLR |
| D. | none of these |
| Answer» A. CRR | |
| 67. |
for issuing commercial papers |
| A. | Prior approval of RBI is not required |
| B. | Prior approval of RBI is required |
| C. | Prior approval of SEBI is required |
| D. | None of these |
| Answer» A. Prior approval of RBI is not required | |
| 68. |
For issuing commercial papers, |
| A. | Credit rating is a must |
| B. | credit rating is optional |
| C. | underwriting is a must |
| D. | None of these |
| Answer» A. Credit rating is a must | |
| 69. |
Money market instruments have a maturity of |
| A. | Less than one year |
| B. | Less than six months |
| C. | More than one year |
| D. | None of these |
| Answer» A. Less than one year | |
| 70. |
Debt market instruments have a maturity of |
| A. | Less than one year |
| B. | Less than six months |
| C. | More than one year |
| D. | None of these |
| Answer» C. More than one year | |
| 71. |
Irredeemable bond is also known as |
| A. | Fully convertible bond |
| B. | Perpetual bond |
| C. | Partially convertible bond |
| D. | None of these |
| Answer» B. Perpetual bond | |
| 72. |
Floating rate bonds carry |
| A. | Fixed rate of interest |
| B. | Varying rate of interest |
| C. | Zero rate of interest |
| D. | None of these |
| Answer» B. Varying rate of interest | |
| 73. |
Zero coupon bonds mean |
| A. | Fixed rate of interest |
| B. | Zero rate of interest |
| C. | Higher rate of interest |
| D. | None of these |
| Answer» B. Zero rate of interest | |
| 74. |
Callable bonds mean |
| A. | Subscriber has the right to demand money before the time |
| B. | Issue has the right to redeem before the time |
| C. | Investor can request for redemption any time |
| D. | None of these |
| Answer» B. Issue has the right to redeem before the time | |
| 75. |
If the credit quality of the issuer deteriorates, market expects |
| A. | Lesser rate of interest |
| B. | Higher rate of interest |
| C. | Zero rate of interest |
| D. | None of these |
| Answer» B. Higher rate of interest | |
| 76. |
When the risk perception is high, investor prefers to get the bond at |
| A. | Higher rate |
| B. | Reduced rate |
| C. | Par rate |
| D. | None of these |
| Answer» B. Reduced rate | |
| 77. |
If the maturity period of bond is more, investor prefers |
| A. | Lesser return |
| B. | Higher return |
| C. | Zero return |
| D. | None of these |
| Answer» B. Higher return | |
| 78. |
Par value means |
| A. | Value of the instrument traded in the market |
| B. | Value of the instrument at the time of issue |
| C. | Intrinsic value of the instrument |
| D. | None of these |
| Answer» B. Value of the instrument at the time of issue | |
| 79. |
Risk that a borrower may not pay interest/principal timely is |
| A. | Call risk |
| B. | Liquidity risk |
| C. | Default risk |
| D. | None of these |
| Answer» C. Default risk | |
| 80. |
Foreign currency appreciation will result in rupee receipts |
| A. | Lower |
| B. | Higher |
| C. | Unchanged |
| D. | None of these |
| Answer» B. Higher | |
| 81. |
CRISIL was established in |
| A. | 1987 |
| B. | 1991 |
| C. | 1994 |
| D. | None of these |
| Answer» A. 1987 | |
| 82. |
BBB rating indicates |
| A. | Adequate safety |
| B. | Reasonable safety |
| C. | Moderate safety |
| D. | None of these |
| Answer» C. Moderate safety | |
| 83. |
The tenure of commercial paper instrument is |
| A. | Minimum one year |
| B. | minimum five yare |
| C. | Minimum 15 days and maximum one year |
| D. | none of these |
| Answer» C. Minimum 15 days and maximum one year | |
| 84. |
Certificate of deposits are issued by |
| A. | RBI |
| B. | commercial banks |
| C. | SBI only |
| D. | none of these |
| Answer» B. commercial banks | |
| 85. |
Inter bank participation certificate is a |
| A. | money market instrument |
| B. | very popular instrument |
| C. | Instrument used by companies |
| D. | None of these |
| Answer» A. money market instrument | |
| 86. |
-----is a market where money is brought and sold |
| A. | Money market |
| B. | capital market |
| C. | share market |
| D. | none of these |
| Answer» A. Money market | |
| 87. |
Interest rate on money market funds are ------ |
| A. | Individual determined |
| B. | market determined |
| C. | RBI determined |
| D. | all of these |
| Answer» B. market determined | |
| 88. |
------occupies the pivotal position in the Indian money market |
| A. | RBI |
| B. | SEBI |
| C. | SBI |
| D. | none of these |
| Answer» A. RBI | |
| 89. |
---control s the money supply in a country |
| A. | RBI or central bank |
| B. | SEBI |
| C. | government |
| D. | all of these |
| Answer» A. RBI or central bank | |
| 90. |
----is the rate banks receive for depositing funds with the central bank |
| A. | reverse repo rate |
| B. | repo rate |
| C. | interest rate |
| D. | all of these |
| Answer» A. reverse repo rate | |
| 91. |
----------policy is taken by RBI |
| A. | Monetary policy |
| B. | fiscal policy |
| C. | both of them |
| D. | all of these |
| Answer» A. Monetary policy | |
| 92. |
Rate at which RBI lends to bank is |
| A. | Repo rate |
| B. | reverse repo |
| C. | interest arte |
| D. | bank rate |
| Answer» A. Repo rate | |
| 93. |
---------are unsecured promissory note issued by a well rated corporate |
| A. | commercial paper |
| B. | certificate of deposit |
| C. | commercial bill |
| D. | all of these |
| Answer» A. commercial paper | |
| 94. |
----is a must for issuing commercial paper |
| A. | good credit rating |
| B. | good bank balance |
| C. | goodwill |
| D. | all of these |
| Answer» A. good credit rating | |
| 95. |
which is not a constituent of money market |
| A. | Call money market |
| B. | discount houses |
| C. | share market |
| D. | acceptance market |
| Answer» C. share market | |
| 96. |
Money market provides fund for |
| A. | More than one year |
| B. | for a period of up to one year |
| C. | one week to about six weeks |
| D. | none of these |
| Answer» B. for a period of up to one year | |
| 97. |
Which is not a constituent of capital market? |
| A. | public finance institution |
| B. | stock exchange |
| C. | commercial bank |
| D. | unit trust of India |
| Answer» C. commercial bank | |
| 98. |
---------- is the other name for Zero Coupon bonds. |
| A. | bond , |
| B. | debenture , |
| C. | Deep discount bonds |
| D. | coupon bond |
| Answer» C. Deep discount bonds | |
| 99. |
Holders of fixed income securities are ---------- of the issuer. |
| A. | debtors |
| B. | Creditor |
| C. | issuer |
| D. | banker |
| Answer» B. Creditor | |
| 100. |
Bonds which are issued at a discount and repaid at a face value are called ----------. |
| A. | bond , |
| B. | debenture , |
| C. | Deep discount bonds |
| D. | Zero coupon bonds |
| Answer» D. Zero coupon bonds | |
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