McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Union Public Service Commission (UPSC) .
| 1. |
___________ allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption |
| A. | Economic system |
| B. | Banking system |
| C. | Financial system |
| D. | Market system |
| Answer» C. Financial system | |
| 2. |
Which of the following is not a regulatory institutions in Indian financial system. |
| A. | RBI |
| B. | CIBIL |
| C. | SEBI |
| D. | IRDA |
| Answer» B. CIBIL | |
| 3. |
___________ is regarded as a queen of Indian financial system. |
| A. | SEBI |
| B. | RBI |
| C. | Finance Ministry |
| D. | BSE |
| Answer» B. RBI | |
| 4. |
————— represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend. |
| A. | physical asset |
| B. | fixed asset |
| C. | financial asset |
| D. | none of these |
| Answer» C. financial asset | |
| 5. |
SEBI was established in —————. |
| A. | 1988 |
| B. | 1985 |
| C. | 1991 |
| D. | 1990 |
| Answer» A. 1988 | |
| 6. |
RBI started functioning on —————. |
| A. | 1-4-1935 |
| B. | 1-4-1948 |
| C. | 1-4-1882 |
| D. | 1-4-1945 |
| Answer» A. 1-4-1935 | |
| 7. |
National Housing bank is a fully owned subsidiary of —————. |
| A. | HDFC |
| B. | HSBC |
| C. | RBI |
| D. | HUDCO |
| Answer» C. RBI | |
| 8. |
————— has the statutory powers to regulate and promote the Indian capital market. |
| A. | Registrar of issue |
| B. | Merchant banks |
| C. | SEBI |
| D. | RBI |
| Answer» C. SEBI | |
| 9. |
Any company making a public issue of value of more than Rs. ———— is required to file a draft offer document with SEBI. |
| A. | 100 lakh |
| B. | 25 lakh |
| C. | 50 lakh |
| D. | 10 lakh |
| Answer» C. 50 lakh | |
| 10. |
————— Committee was constituted by SEBI for deciding about derivatives trading. |
| A. | L.C.Gupta |
| B. | R. L. Gupta |
| C. | Vaghul |
| D. | Malhotra |
| Answer» A. L.C.Gupta | |
| 11. |
RBI is the lender of last resort for —————. |
| A. | Central Government |
| B. | State Governments |
| C. | Stock markets |
| D. | Commercial Banks |
| Answer» D. Commercial Banks | |
| 12. |
The market regulator of Indian Capital Market is …………… |
| A. | DFHI |
| B. | RBI |
| C. | SEBI |
| D. | STCI |
| Answer» C. SEBI | |
| 13. |
…………………… facilitate the transfer of funds from savers to the borrowers. |
| A. | goods market |
| B. | money market |
| C. | financial market |
| D. | consumer market |
| Answer» C. financial market | |
| 14. |
……………………… market is a market for old issues. |
| A. | Money market |
| B. | Primary market |
| C. | Secondary market |
| D. | All the above |
| Answer» C. Secondary market | |
| 15. |
Which of the following is a financial asset |
| A. | gold |
| B. | silver |
| C. | share |
| D. | Land. |
| Answer» C. share | |
| 16. |
Which of the following is a cash asset? |
| A. | deposit created out of loans |
| B. | share |
| C. | bond |
| D. | Post office certificate. |
| Answer» A. deposit created out of loans | |
| 17. |
Govt. bond is a |
| A. | short term security |
| B. | long term security |
| C. | medium term security |
| D. | Either a or b. |
| Answer» B. long term security | |
| 18. |
Money market deals with ..................... instruments. |
| A. | long term |
| B. | short term |
| C. | medium term |
| D. | all of these. |
| Answer» B. short term | |
| 19. |
The market for extremely short period loan is called..................... |
| A. | call money market |
| B. | money at short notice |
| C. | T-bill market |
| D. | G-sec market |
| Answer» A. call money market | |
| 20. |
..................... acts as an intermediary between Govt. and money market |
| A. | RBI |
| B. | SEBI |
| C. | Commercial banks |
| D. | All the above |
| Answer» A. RBI | |
| 21. |
................... are drawn by contractors on the Govt. departments for the goods supplied to them |
| A. | treasury bills |
| B. | supply bill |
| C. | bill of lading |
| D. | documentary bill |
| Answer» B. supply bill | |
| 22. |
The bill which doesn’t require acceptance is called..................... |
| A. | treasury bills |
| B. | supply bill |
| C. | bill of lading |
| D. | documentary bill |
| Answer» A. treasury bills | |
| 23. |
..................... are an important instrument of short term borrowing by the Govt. |
| A. | National saving certificate |
| B. | Bonds |
| C. | Treasury bill |
| D. | Any of the above |
| Answer» C. Treasury bill | |
| 24. |
..................... is a market for bankers’ acceptances |
| A. | discount market |
| B. | CDs market |
| C. | Interbank participation market |
| D. | Acceptance market |
| Answer» D. Acceptance market | |
| 25. |
Accommodation bills are also known as ..................... bills |
| A. | kite bills |
| B. | wind bills |
| C. | supply bill |
| D. | both a & b |
| Answer» D. both a & b | |
| 26. |
Adhoc treasury bills are issued in favour of the ..................... only |
| A. | Treasury |
| B. | RBI |
| C. | Commercial banks |
| D. | State government |
| Answer» B. RBI | |
| 27. |
..................... are short term deposits of specific maturity similar to fixed deposits. |
| A. | commercial paper |
| B. | Interbank participation certificate |
| C. | Repo |
| D. | Certificate of deposit |
| Answer» D. Certificate of deposit | |
| 28. |
..................... is an unsecured short term promissory note issued by creditworthy companies? |
| A. | commercial paper |
| B. | interbank participation certificate |
| C. | Repo |
| D. | Certificate of deposit |
| Answer» A. commercial paper | |
| 29. |
Discount and Finance House of India was set up in ..................... |
| A. | 1982 |
| B. | 1988 |
| C. | 1992 |
| D. | 1969 |
| Answer» B. 1988 | |
| 30. |
Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee |
| A. | Malegam |
| B. | Malhotra |
| C. | Vaghul |
| D. | Narasimham |
| Answer» C. Vaghul | |
| 31. |
..................... has been set up mainly to provide a secondary market in Govt. Securities |
| A. | DHFI |
| B. | OTCEI |
| C. | STCI |
| D. | NSDL |
| Answer» C. STCI | |
| 32. |
Right shares are offered to..................... |
| A. | Debenture holders |
| B. | Existing shareholders |
| C. | List 2 contributories |
| D. | Liquidators |
| Answer» B. Existing shareholders | |
| 33. |
..................... is the suitable method where small companies issue shares |
| A. | public issue |
| B. | placement |
| C. | offer for sale |
| D. | none of these |
| Answer» B. placement | |
| 34. |
..................... is a process of admitting securities for trading on a recognised stock exchange. |
| A. | registration |
| B. | filing |
| C. | listing |
| D. | admission |
| Answer» C. listing | |
| 35. |
..................... is a preferential independent broker who deals in securities on his own behalf. |
| A. | Jobber |
| B. | sub broker |
| C. | Remisiers |
| D. | Arbitragers |
| Answer» A. Jobber | |
| 36. |
The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction |
| A. | Badla |
| B. | arbitrage |
| C. | cornering |
| D. | trading inside |
| Answer» A. Badla | |
| 37. |
The device adopted to make profit out of the differences in prices of a security in to different markets is called..................... |
| A. | cornering |
| B. | prise rigging |
| C. | arbitrage |
| D. | margin trading |
| Answer» C. arbitrage | |
| 38. |
The central depositary ..................... the security on behalf of the investors |
| A. | hold |
| B. | transfer |
| C. | both a & b above |
| D. | none of these |
| Answer» C. both a & b above | |
| 39. |
..................... of shares in the first step in the depository process |
| A. | Registration |
| B. | Listing |
| C. | Rematting |
| D. | Immobilisation |
| Answer» D. Immobilisation | |
| 40. |
. ..................... is the link between the depository and the owner |
| A. | Agent |
| B. | Depository participant |
| C. | Beneficiary |
| D. | Broker |
| Answer» B. Depository participant | |
| 41. |
..................... issues does not bring in any fresh capital |
| A. | equity |
| B. | preference |
| C. | debenture |
| D. | bonus |
| Answer» D. bonus | |
| 42. |
Prospectus is not issued in |
| A. | public issue |
| B. | private placement |
| C. | right issue |
| D. | none the above |
| Answer» B. private placement | |
| 43. |
An issuer need not file an offer document in case of |
| A. | public issue |
| B. | preferential allotment |
| C. | right issue |
| D. | bought out deal |
| Answer» B. preferential allotment | |
| 44. |
An issuer can launch an IPO within..................... |
| A. | 3 months |
| B. | 6 months |
| C. | 9 months |
| D. | one year |
| Answer» B. 6 months | |
| 45. |
An issue of a minimum size of Rs. ..................... crore is a mega issue |
| A. | 50 |
| B. | 100 |
| C. | 150 |
| D. | 300 |
| Answer» B. 100 | |
| 46. |
Financial institutions are also known as ........................ |
| A. | Financial organisation |
| B. | Financial intermediaries |
| C. | Financial system |
| D. | Any of the above |
| Answer» B. Financial intermediaries | |
| 47. |
........................ is the first development financial institution in India. |
| A. | IDBI |
| B. | ICICI |
| C. | IFCI |
| D. | RBI |
| Answer» C. IFCI | |
| 48. |
Management Development Institute (MDI)was set up by ........................ |
| A. | IDBI |
| B. | ICICI |
| C. | IFCI |
| D. | SEBI |
| Answer» C. IFCI | |
| 49. |
IDBI was established in ........................ |
| A. | 1948 |
| B. | 1954 |
| C. | 1992 |
| D. | 1964 |
| Answer» D. 1964 | |
| 50. |
........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions. |
| A. | IFCI |
| B. | IDBI |
| C. | RBI |
| D. | SEBI |
| Answer» B. IDBI | |
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