McqMate
| 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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