financial markets & services

8/2/2019 Financial Markets & Services

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FINANCIAL MARKETS AND SERVICES

1.The following one is a financial asset:

(a) Gold

(b) Silver

(c) Share(d) Land

2.Which one of the following is a cash asset?

(a) Deposit created out of loans

(b) Share

(c) Bond

3. Government bond is a:

(a) Short-term security(b) Long-term security

(c) Medium term security

(d) Either short-term or long-term security.

4. The NABARD was established in the year:

(a) 1982

(b) 1985

(c) 1987

(d) 1989

5.STRIPS is associated with

(a) Government security

(b) Debenture

(c) Share

(d) Stock

6.The foreign exchange dealings are controlled by

(a) FERA

(b) RBI

(c) Government of India

(d) FEMA


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7. Bills drawn and accepted payable after three months are called:

(a) Indigenous bills

(b) Usance bills

(c) Clean bills

(d) Supply bills

8.The market which helps commercial banks to maintain their SLR requirements is:

(a) Call loan market

(b) Discount market

(c) Acceptance market

(d) Commercial bill market

9.The certificate which evidences an unsecured corporate debt of short-term maturity is:

(a) Short-term loan certificate(b) Certificate of deposit

(c) Inter-bank participation certificate

(d) Commercial paper

10.The major player in the Indian money market is:

(a) Co-operative banks

(b) Indigenous banks

(c) Commercial banks

(d) Reserve Bank of India

11. A treasury bill issued in favour of RBI alone is called:

(a) Ordinary treasury bill

(b) Regular treasury bill

(c) Special treasury bill

(d) Ad hocbill.

12. The short-term deposit instrument issued by bank is called:

(a) Commercial paper

(b) Certificate of deposit

(c) Inter-bank participation certificate

(d) Short-term deposit receipt


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13. The unorganised sector of Indian money market is dominated by :

(a) Commercial banks

(b) Chief funds

(c) Non-banking financial companies

(d) Money lenders and indigenous bankers

14. The discount and finance house of India was established in the year:

(a) 1988

(b) 1987

(c) 1994

(d) 1991

15. A promise to subscribe to a specified number of shares is called:

(a) Promised subscription

(b) Underwriting

(c) Origination

(d) Distribution

16 .Buying of securities in bulk and selling them in retail to the public in known as:

(a) Placement

(b) Offer for sale

(c) Rights issue

(d) Public issue

17. The method of issue suitable to first generation entreprenur is:

(a) Rights issue

(b) Public issue

(c) Placement

(d) Offer for sale

18. The document denoting the shares of a foreign company denominated in Indian

currency is known as:(a) GDR

(b) IDR

(c) ADR

(d) DDR.


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19. The bonds that are sold at discount from maturity values are called:

(a) Option Bonds

(b) Bonds with warrants

(c) Deep Discount Bonds

(d) Zero Interest Bonds

20. A professional in issue management is:

(a) Broker

(b) Underwriter

(c) Merchant Banker

(d) Registrar

21. The intermediary who undertaken all activities connected with the new issue

management is:(a) Merchant banker

(b) Underwriter

(c) Co-ordinating banker

(d) Registar.

22. An order for the purchase of securities at a fixed price is known as:

(a) Limit order

(b) Open order

(c) Discretionary order

(d) Stop loss order.

23. Speculators who neither buy nor sell securities in the market, but still trade on them are called:

(a) Wolves

(b) Stags

(c) Lame Ducks

(d) Bears.

24.The process of holding the entire supply of a particular security with a view to dictating terms is

called:

(a) Wash sales

(b) Arbitrage

(c) Rigging the market

(d) Cornering.


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25.Under depository system, the allotment and credit of shares to the beneficiary amount should be

completed within how many days from the date of closure of an issue?

(a) 15 days

(b) 7 days

(c) 21 days

(d) 30 days.

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