McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Union Public Service Commission (UPSC) .
| 201. |
In hire purchase depreciation can be claimed by the |
| A. | Hirer |
| B. | Vendor |
| C. | Financiers |
| D. | All of these |
| Answer» A. Hirer | |
| 202. |
A merchant bank can claim a charge ------- % as the commission for the whole issue |
| A. | 5% |
| B. | 2.5% |
| C. | 0.5% |
| D. | 0.25% |
| Answer» C. 0.5% | |
| 203. |
Which of the following is not a quantitative credit control tool of RBI? |
| A. | Bank rate |
| B. | Open market operation |
| C. | SLR |
| D. | Margin requirements |
| Answer» D. Margin requirements | |
| 204. |
Which of the following is a selective (qualitative) credit control method? |
| A. | Bank rate |
| B. | Open market operation |
| C. | Variable reserve ratio |
| D. | Credit rationing |
| Answer» D. Credit rationing | |
| 205. |
Currency notes of rupee one and other lower subsidiary coins are issued by |
| A. | RBI |
| B. | Commercial banks |
| C. | Ministry of Finance |
| D. | Bank Note press |
| Answer» C. Ministry of Finance | |
| 206. |
American Depository Receipts (ADRs) are issuing by |
| A. | Indian Company |
| B. | American company |
| C. | Overseas depository |
| D. | International exchange |
| Answer» C. Overseas depository | |
| 207. |
----------- is the process of converting security in electronic form into physical form |
| A. | Rematerialisation |
| B. | Dematerialisation |
| C. | Demutualisation |
| D. | Mutualisation |
| Answer» A. Rematerialisation | |
| 208. |
----------- is dealing in securities done by those who having access to price sensitive information. |
| A. | Margin trading |
| B. | Insider trading |
| C. | Price rigging |
| D. | Wash sales |
| Answer» B. Insider trading | |
| 209. |
--------- is a calculated move with an expectation to reap huge profit from market fluctuations |
| A. | Gambling |
| B. | Speculation |
| C. | Genuine investment |
| D. | None of the above |
| Answer» B. Speculation | |
| 210. |
---------- speculators are optimistic in nature |
| A. | Bull |
| B. | Bear |
| C. | Stag |
| D. | wolves |
| Answer» A. Bull | |
| 211. |
---------- speculators are Pessimistic in nature |
| A. | Bull |
| B. | Bear |
| C. | Stag |
| D. | Wolves |
| Answer» B. Bear | |
| 212. |
The scheme in which company can allot shares not more than 15% of the issue size, to the public in addition to the shares already offered- is called |
| A. | Right issue |
| B. | ESOPs |
| C. | Green shoe option |
| D. | Bonus issue |
| Answer» C. Green shoe option | |
| 213. |
The merchant banker coordinating a public issue is called as |
| A. | Syndicator |
| B. | Lead manager |
| C. | Post issue manager |
| D. | None of these |
| Answer» B. Lead manager | |
| 214. |
-------- is a shortened form of prospectus |
| A. | Red herring prospectus |
| B. | Abridged prospectus |
| C. | Statement in lieu of prospectus |
| D. | Shelf prospectus |
| Answer» B. Abridged prospectus | |
| 215. |
-------- is an offer document is used in public issue made under book building method. |
| A. | Red herring prospectus |
| B. | Abridged prospectus |
| C. | Statement in lieu of prospectus |
| D. | Shelf prospectus |
| Answer» A. Red herring prospectus | |
| 216. |
In technical sense, short sellers (bears) will be “squeezed” through |
| A. | Wash sales |
| B. | Cornering |
| C. | Rigging |
| D. | Arbitrage |
| Answer» B. Cornering | |
| 217. |
---------- is known as ‘Traffic in securities’ |
| A. | Wash sales |
| B. | Cornering |
| C. | Rigging |
| D. | Arbitrage |
| Answer» D. Arbitrage | |
| 218. |
A system of security trade in which one is allowed to invest in excess of his financial capacity by borrowing funds |
| A. | Margin trading |
| B. | Cornering |
| C. | Rigging |
| D. | Arbitrage |
| Answer» A. Margin trading | |
| 219. |
Which of the following speculative transactions are unfair and prohibited? |
| A. | Margin trading |
| B. | Option deals |
| C. | Rigging |
| D. | Arbitrage |
| Answer» C. Rigging | |
| 220. |
Which of the following is not a prohibited act in security market? |
| A. | Insider trading |
| B. | Price rigging |
| C. | Cornering |
| D. | Margin trading |
| Answer» D. Margin trading | |
| 221. |
------- is undertaken for making a dishonest claim for tax deduction. |
| A. | Wash sales |
| B. | Price rigging |
| C. | Cornering |
| D. | Margin trading |
| Answer» A. Wash sales | |
| 222. |
-------- means temporary halt of trade in stock exchanges whenever index moves upward or downward beyond the specified limits |
| A. | Laddering |
| B. | Cornering |
| C. | Circuit breaking |
| D. | Side by siding |
| Answer» C. Circuit breaking | |
| 223. |
Unsecured debentures are also known as........... |
| A. | Registered debentures |
| B. | Bearer debentures |
| C. | Naked debentures |
| D. | Collateral debentures |
| Answer» C. Naked debentures | |
| 224. |
Non-voting shares were introduced by Companies (Amendment) bills in the year |
| A. | 1997 |
| B. | 1999 |
| C. | 2000 |
| D. | 2002 |
| Answer» A. 1997 | |
| 225. |
in the case of -------- bonds, the value is inversely related to short term interest rates. |
| A. | Fixed rate bonds |
| B. | Inverse float bonds |
| C. | Perpetual bonds |
| D. | Option bonds |
| Answer» B. Inverse float bonds | |
| 226. |
“D vs. P” system for government securities market means |
| A. | Delivery and payment settlement |
| B. | Dividend and principal settlement |
| C. | Dollar and Pound settlement |
| D. | Delaying and postponement |
| Answer» A. Delivery and payment settlement | |
| 227. |
Non banking financial institutions (NBFIs) are registered under |
| A. | RBI Act |
| B. | Banking Regulation Act |
| C. | Companies Act |
| D. | SEBI Act |
| Answer» C. Companies Act | |
| 228. |
According to IFRS, the term financial asset includes |
| A. | Cash or Cash equivalent |
| B. | Equity shares |
| C. | Contractual right to receive cash |
| D. | All the above |
| Answer» D. All the above | |
| 229. |
Which of the following is /are example of primary or direct financial instrument |
| A. | Fixed deposit receipt |
| B. | Insurance policies |
| C. | Mutual fund Unit |
| D. | Debentures |
| Answer» D. Debentures | |
| 230. |
Which of the following is /are example of Secondary or indirect financial instrument |
| A. | Equity shares |
| B. | Preference shares |
| C. | Post office saving deposit |
| D. | Bonds |
| Answer» C. Post office saving deposit | |
| 231. |
A Non Banking Financial Institution |
| A. | Can accept demand deposit |
| B. | Can issue cheques to customers |
| C. | Cannot accept fixed deposit |
| D. | Cannot accept demand deposit and cannot issue cheques |
| Answer» D. Cannot accept demand deposit and cannot issue cheques | |
| 232. |
Kerala State Financial Enterprises ltd (KSFE) is an example of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | State level development banks |
| Answer» C. NBFI | |
| 233. |
UTI, LIC etc are examples of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | Development banks |
| Answer» B. Investment institution | |
| 234. |
SFC is an example of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | Development Institution |
| Answer» D. Development Institution | |
| 235. |
Which of the following is /are not regulatory institutions |
| A. | RBI |
| B. | SEBI |
| C. | IRDA |
| D. | IFCI |
| Answer» D. IFCI | |
| 236. |
Which of the following is not a negotiable instrument? |
| A. | ADR |
| B. | GDR |
| C. | FDR |
| D. | IDR |
| Answer» C. FDR | |
| 237. |
‘Follow on Public Offer’ is also known as |
| A. | Further public offer |
| B. | Seasoned public offer |
| C. | Subsequent public offer |
| D. | All of these |
| Answer» D. All of these | |
| 238. |
“Uberrimae Fidei” means |
| A. | Indemnity |
| B. | Insurable interest |
| C. | Good faith |
| D. | Mitigation of loss |
| Answer» C. Good faith | |
| 239. |
........... is the oldest insurance |
| A. | Fire insurance |
| B. | Life insurance |
| C. | Marine insurance |
| D. | Social insurance |
| Answer» C. Marine insurance | |
| 240. |
In ---------------- , insurable interest is enough at the time of loss |
| A. | Fire insurance |
| B. | Life insurance |
| C. | Burglary insurance |
| D. | Marine insurance |
| Answer» D. Marine insurance | |
| 241. |
In life insurance, instalment policy is also known as |
| A. | Annuity policy |
| B. | Endowment policy |
| C. | Whole life policy |
| D. | Lump sum policy |
| Answer» A. Annuity policy | |
| 242. |
In insurance, “Causa Proxima” means |
| A. | Utmost good faith |
| B. | Contribution |
| C. | Prevent the causes of loss |
| D. | Closely connected perils |
| Answer» D. Closely connected perils | |
| 243. |
_______ is a financial service which pooling risks of people |
| A. | Mutual fund |
| B. | Venture capital |
| C. | insurance |
| D. | all of these |
| Answer» C. insurance | |
| 244. |
In India Insurance business are regulated by |
| A. | IRBI |
| B. | RBI |
| C. | IRDA |
| D. | IRDP |
| Answer» C. IRDA | |
| 245. |
Except life insurance maximum term of other insurance is_______ |
| A. | 12 months |
| B. | 6 months |
| C. | 24 months |
| D. | 36 months |
| Answer» A. 12 months | |
| 246. |
Central office of Life Insurance Corporation of India is located at |
| A. | New Delhi |
| B. | Kolkata |
| C. | Mumbai |
| D. | Bangalore |
| Answer» A. New Delhi | |
| 247. |
There are........ associated companies of GIC |
| A. | 3 |
| B. | 4 |
| C. | 6 |
| D. | 5 |
| Answer» B. 4 | |
| 248. |
“Native Stock and Share Brokers Association” is the old name of............ |
| A. | SEBI |
| B. | NSE |
| C. | BSE |
| D. | NASDAQ |
| Answer» C. BSE | |
| 249. |
General insurance business nationalised in the year---------- |
| A. | 1956 |
| B. | 1972 |
| C. | 1969 |
| D. | 1982 |
| Answer» B. 1972 | |
| 250. |
Principle of Indemnity does not apply to---------- |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Life insurance |
| D. | None of these |
| Answer» C. Life insurance | |
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