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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 |
251. |
A nation consists of ————— economic units. |
A. | 5 |
B. | 4 |
C. | 3 |
D. | 2 |
Answer» C. 3 |
252. |
————— functions as an intermediary between savers and investors. |
A. | economic system |
B. | financial system |
C. | monetary system |
D. | barter system |
Answer» B. financial system |
253. |
Financial markets are markets that deal in ————— assets and credit instruments. |
A. | fixed assets |
B. | financial assets |
C. | current assets |
D. | all of these |
Answer» B. financial assets |
254. |
————— 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 |
255. |
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 |
256. |
————— 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 |
257. |
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 |
258. |
————— 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 |
259. |
…………………… 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 |
260. |
Which of the following is a financial asset |
A. | gold |
B. | silver |
C. | share |
D. | Land |
Answer» C. share |
261. |
................... 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 |
262. |
..................... 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 |
263. |
..................... 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 |
264. |
..................... 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 |
265. |
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 |
266. |
..................... has been set up mainly to provide a secondary market in Govt. Securities |
A. | DHFI |
B. | OTCEI |
C. | STCI |
D. | NSDL |
Answer» C. STCI |
267. |
Right shares are offered to..................... |
A. | Debenture holders |
B. | Existing shareholders |
C. | List 2 contributories |
D. | Liquidators |
Answer» B. Existing shareholders |
268. |
..................... is a process of admitting securities for trading on a recognised stock exchange. |
A. | registration |
B. | filing |
C. | listing |
D. | admission |
Answer» C. listing |
269. |
..................... 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 |
270. |
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 |
271. |
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 |
272. |
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 |
273. |
........................ 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 |
274. |
ICICI was set up in ........................ |
A. | 1955 |
B. | 1964 |
C. | 1989 |
D. | 1935 |
Answer» A. 1955 |
275. |
........................ assists mainly to industrial undertakings in the private sector |
A. | IFCI |
B. | IDBI |
C. | ICICI |
D. | SEBI |
Answer» C. ICICI |
276. |
LIC was established in........................ |
A. | 1956 |
B. | 1964 |
C. | 1989 |
D. | 1935 |
Answer» A. 1956 |
277. |
The process of managing the sales ledger of a client by a financial service company is called |
A. | forfaiting |
B. | factoring |
C. | leasing |
D. | None of these. |
Answer» B. factoring |
278. |
In India, the company which actually deals with the corpus of the mutual fund is called |
A. | sponsor company |
B. | trustee company |
C. | asset management company |
D. | Mutual fund Company. |
Answer» C. asset management company |
279. |
........... is a product whose value is derived from the value of underlying asset |
A. | Repo |
B. | T-bills |
C. | G.sec |
D. | Derivatives |
Answer» D. Derivatives |
280. |
--------------is also known as “G.Secs” |
A. | Gold Traded Fund (GTF) |
B. | General Securities |
C. | Govt. Securities |
D. | Growth oriented fund |
Answer» C. Govt. Securities |
281. |
................ bonds permit the bond holder to invest the interest income again in host bonds |
A. | Deep discount bond |
B. | Junk bonds |
C. | Bearer bond |
D. | Bunny bonds |
Answer» D. Bunny bonds |
282. |
What you mean by “STRIPS” |
A. | Separate Trade Register of Initial Public Securities offer |
B. | Stock Trading Register of Interest and Principal Securities |
C. | Separate Trading of Registered Interest and Principal of Securities |
D. | Share Transfer and Registrar of Indian Public Securities issues |
Answer» C. Separate Trading of Registered Interest and Principal of Securities |
283. |
The idea of providing factoring services in India was first thought by —— |
A. | Vaghul committee |
B. | Malhotra Committee |
C. | Tanden Committee |
D. | None of these |
Answer» A. Vaghul committee |
284. |
---------- bills are drawn by contractors on the government departments for the goods supplied by them. |
A. | Usance bills |
B. | T-bills |
C. | Clean bills |
D. | Supply bills |
Answer» D. Supply bills |
285. |
The market which helps commercial banks to maintain their SLR requirement is |
A. | Call loan market |
B. | T-bills market |
C. | Acceptance market |
D. | Commercial bill market |
Answer» A. Call loan market |
286. |
The certificate which evidences an unsecured corporate debt of short term maturity |
A. | Certificate of Deposit |
B. | Commercial paper |
C. | Secured Premium Notes |
D. | Interbank participation Certificate |
Answer» B. Commercial paper |
287. |
-------- is a permission to quote securities officially on the trading floor of stock exchange |
A. | Origination |
B. | Underwriting |
C. | Distribution |
D. | Listing |
Answer» D. Listing |
288. |
The facility to carry forward a transaction from one settlement period to another is called --------- transaction |
A. | Hand delivery |
B. | Badla |
C. | Cornering |
D. | Arbitrage |
Answer» B. Badla |
289. |
The device adopted to make profit out of price differences in two different markets |
A. | Cornering |
B. | Wash sales |
C. | Rigging |
D. | Arbitrage |
Answer» D. Arbitrage |
290. |
A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is |
A. | Sub-broker |
B. | Commission broker |
C. | Authorised clerk |
D. | Remisiers |
Answer» C. Authorised clerk |
291. |
Speculator who neither buy nor sell securities in the market, but still trade on them are called |
A. | Wolves |
B. | Stag |
C. | Bull |
D. | Bear |
Answer» B. Stag |
292. |
The process of holding the entire supply of a particular security with a view to dictating terms is called |
A. | Cornering |
B. | Wash sales |
C. | Rigging |
D. | Arbitrage |
Answer» A. Cornering |
293. |
When purchases of securities are more than sales of securities, the market is called |
A. | Bullish |
B. | Bearish |
C. | Grey |
D. | Odd |
Answer» A. Bullish |
294. |
When sales of securities are more than purchases of securities, the market is called |
A. | Bullish |
B. | Bearish |
C. | Grey |
D. | Odd |
Answer» B. Bearish |
295. |
--------- is the charges paid by a bull speculator to the other party for obtaining carry over facility |
A. | Backwardation |
B. | Contango |
C. | Spread |
D. | Margin |
Answer» B. Contango |
296. |
--------- is the amount paid by bear to facilitate him to renew a bargain until next settlement date |
A. | Backwardation |
B. | Contango |
C. | Spread |
D. | Margin |
Answer» A. Backwardation |
297. |
Those who provides finance for carry forward transactions in securities is called |
A. | Tharawaniwalas |
B. | Tejiwalas |
C. | Mandiwalas |
D. | Badliwalas |
Answer» B. Tejiwalas |
298. |
The speculator who observes very fast the trends and changes in market is |
A. | Bull |
B. | Bear |
C. | Stag |
D. | Wolves |
Answer» D. Wolves |
299. |
------is the bear speculator who struggling to complete his commitments because of wrong foot |
A. | Bull |
B. | Lame duck |
C. | Stag |
D. | Wolves |
Answer» B. Lame duck |
300. |
An option (right) to purchase shares in future at predetermined price is called |
A. | Hedging |
B. | Put option |
C. | Push option |
D. | Call option |
Answer» D. Call option |
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