Question 1

Which of the following is the disadvantage of SEBI

Accepted Answer

A) Ease of Trading 
B) Tax saving 
C) Money Laundering 
D) All of them 
A) Ease of Trading 
B) Tax saving 
C) Money Laundering 
D) All of them A

Question 2

As a part of the capital adequacy requirement, the base minimum capital prescribed by SEBI:

Accepted Answer

A) varies from exchange to exchange. 
B) is based on the recommendations of the Kaul committee. 
C) is based on the recommendations of the Justice Bhagwati Committee. 
D) is the same across members of all exchanges. 
A) varies from exchange to exchange. 
B) is based on the recommendations of the Kaul committee. 
C) is based on the recommendations of the Justice Bhagwati Committee. 
D) is the same across members of all exchanges. A

Question 3

Financial markets serve which three purposes?

Accepted Answer

A) Financial markets allow-risk sharing, pool and communicate information, and offer stability. 
B) Financial markets allow risk sharing, offer stability, and offer liquidity. 
C) Financial markets offer stability, pool and communicate information, and offer liquidity. 
D) Financial markets allow-risk sharing, pool and communicate information, and offer liquidity. 
A) Financial markets allow-risk sharing, pool and communicate information, and offer stability. 
B) Financial markets allow risk sharing, offer stability, and offer liquidity. 
C) Financial markets offer stability, pool and communicate information, and offer liquidity. 
D) Financial markets allow-risk sharing, pool and communicate information, and offer liquidity. D

Question 4

At present, the apex institution with regard to rural credit is

Accepted Answer

A) RBI 
B) NABARD 
C) ARDC 
D) SBI 
A) RBI 
B) NABARD 
C) ARDC 
D) SBI

Question 5

SEBI signs MoUs with different country's financial jurisdictions who are not a signatory to the multilateral MoU of International Organization of Securities Commissions (IOSCO).

Accepted Answer

A) True 
B) False 
C) all 
D) none 
A) True 
B) False 
C) all 
D) none

Question 6

An example of financial instruments that are primarily used as stores of value is:

Accepted Answer

A) insurance contracts. 
B) home mortgages. 
C) options. 
D) futures contracts. 
A) insurance contracts. 
B) home mortgages. 
C) options. 
D) futures contracts.

Question 7

SEBI has not been vested with the following powers:

Accepted Answer

A) to approve by?laws of stock exchanges. 
B) to require the stock exchange to amend their by?laws. 
C) inspect the books of accounts and call for periodical returns from recognized stock exchanges. 
D) inspect the books of accounts of financial intermediaries. 
A) to approve by?laws of stock exchanges. 
B) to require the stock exchange to amend their by?laws. 
C) inspect the books of accounts and call for periodical returns from recognized stock exchanges. 
D) inspect the books of accounts of financial intermediaries.

Question 8

Clearing and settlement operations of NSE are carried out by:

Accepted Answer

A) NSDL 
B) NSCCL 
C) SBI 
D) CDSL 
A) NSDL 
B) NSCCL 
C) SBI 
D) CDSL

Question 9

Financial instruments are used

Accepted Answer

A) as a unit of account, as a store of value, and as a means of payment. 
B) as a unit of account, as a means of payment, and to transfer risk. 
C) as a store of value, as a means of payment, and to transfer risk. 
D) as a unit of account, as a store of value, and to transfer risk. 
A) as a unit of account, as a store of value, and as a means of payment. 
B) as a unit of account, as a means of payment, and to transfer risk. 
C) as a store of value, as a means of payment, and to transfer risk. 
D) as a unit of account, as a store of value, and to transfer risk.

Question 10

Benefits of the merger between the NYSE and Paris-based Euronext, a pan European stock exchange include:

Accepted Answer

A) lower costs and speedier transactions for international financial markets. 
B) foreign ownership of domestic assets. 
C) international consolidation of financial services. 
D) greater the uncertainty. 
A) lower costs and speedier transactions for international financial markets. 
B) foreign ownership of domestic assets. 
C) international consolidation of financial services. 
D) greater the uncertainty.

Question 11

Which of the following is not a function of SEBI:

Accepted Answer

A) Development of the Securities market 
B) Investor Protection 
C) Making the Rules and Regulation for the securities market 
D) Framing policies for central government operations 
A) Development of the Securities market 
B) Investor Protection 
C) Making the Rules and Regulation for the securities market 
D) Framing policies for central government operations

Question 12

Exchange banks specialize in:

Accepted Answer

A) Financing foreign trade 
B) Promoting foreign investment 
C) Financing domestic trade 
D) All the above 
A) Financing foreign trade 
B) Promoting foreign investment 
C) Financing domestic trade 
D) All the above

Question 13

The difference between a primary market and a secondary market is

Accepted Answer

A) primary market is the stock market and secondary market is the market for second hand sale of securities 
B) a primary market helps in long-term credit and secondary market offers short-term credit 
C) a primary market helps in the issue of new securities those which are offered for the first time and the secondary market is for second hand sale of securities listed on the stock exchange 
D) a primary market is the unorganized sector and the secondary market is the organized sector for sale and purchase of securities. 
A) primary market is the stock market and secondary market is the market for second hand sale of securities 
B) a primary market helps in long-term credit and secondary market offers short-term credit 
C) a primary market helps in the issue of new securities those which are offered for the first time and the secondary market is for second hand sale of securities listed on the stock exchange 
D) a primary market is the unorganized sector and the secondary market is the organized sector for sale and purchase of securities.

Question 14

The liquidity status of certificate of deposit which is more negotiable is considered as

Accepted Answer

A) certified liquidity 
B) term liquidity 
C) more liquid 
D) less liquid 
A) certified liquidity 
B) term liquidity 
C) more liquid 
D) less liquid

Question 15

The IDBI was started in

Accepted Answer

A) 1949 
B) 1964 
C) 1982 
D) 1962 
A) 1949 
B) 1964 
C) 1982 
D) 1962

Question 16

Which of the following in India is an exchange bank?

Accepted Answer

A) ICICI bank 
B) CITI bank 
C) EXIM bank 
D) UCO bank 
A) ICICI bank 
B) CITI bank 
C) EXIM bank 
D) UCO bank

Question 17

Two important characteristics of financial instruments are:

Accepted Answer

A) information communication and risk neutrality. 
B) risk neutrality and liquidity. 
C) standardization and information communication. 
D) liquidity and standardization. 
A) information communication and risk neutrality. 
B) risk neutrality and liquidity. 
C) standardization and information communication. 
D) liquidity and standardization.

Question 18

Which of the following increases the value of a financial instrument?

Accepted Answer

A) smaller payments. 
B) payments made further in the future. 
C) payments that are made when we need them. 
D) payments that are less likely to be made. 
A) smaller payments. 
B) payments made further in the future. 
C) payments that are made when we need them. 
D) payments that are less likely to be made.

Question 19

Which of the following is not a characteristic of a financial instrument?

Accepted Answer

A) The financial instrument is always issued by a bank. 
B) A financial instrument is a written legal obligation of one party to transfer something of value, usually money. 
C) The transaction in a financial instrument is specified to take place at a future date. 
D) A financial instrument specifies certain conditions. 
A) The financial instrument is always issued by a bank. 
B) A financial instrument is a written legal obligation of one party to transfer something of value, usually money. 
C) The transaction in a financial instrument is specified to take place at a future date. 
D) A financial instrument specifies certain conditions.

Question 20

SEBI operates to fulfill the needs of these three groups, choose the one which is not in those three:

Accepted Answer

A) the issuers of securities 
B) the police 
C) the investors 
D) the market intermediaries 
A) the issuers of securities 
B) the police 
C) the investors 
D) the market intermediaries

Which of the following is the disadvantage of SEBI

As a part of the capital adequacy requirement, the base minimum capital prescribed by SEBI:

Financial markets serve which three purposes?

At present, the apex institution with regard to rural credit is

SEBI signs MoUs with different country's financial jurisdictions who are not a signatory to the multilateral MoU of International Organization of Securities Commissions (IOSCO).

An example of financial instruments that are primarily used as stores of value is:

SEBI has not been vested with the following powers:

Clearing and settlement operations of NSE are carried out by:

Financial instruments are used

Benefits of the merger between the NYSE and Paris-based Euronext, a pan European stock exchange include:

Which of the following is not a function of SEBI:

Exchange banks specialize in:

The difference between a primary market and a secondary market is

The liquidity status of certificate of deposit which is more negotiable is considered as

The IDBI was started in

Which of the following in India is an exchange bank?

Two important characteristics of financial instruments are:

Which of the following increases the value of a financial instrument?

Which of the following is not a characteristic of a financial instrument?

SEBI operates to fulfill the needs of these three groups, choose the one which is not in those three:

Understanding Financial Systems and Regulations

Understanding Financial Markets and Institutions

Financial Markets and Instruments

Securities, Financing, and Investments: Exploring the World of Finance

Banking Functions, Credit Rating Agencies, and Financial Markets: Exploring the Basics

Bills, Securities, and Stock Market Operations

Financial Institutions and Commodity Markets: an Overview

Financial Concepts and Institutions

Exploring the Basics of Financial Markets and Securities

Understanding the Link Between Savers, Borrowers, and Investors: Exploring Financial Markets and Stock Exchange Functions

Filters

Exam 2: Understanding Financial Instruments and Market Functions

Which of the following is the disadvantage of SEBI

As a part of the capital adequacy requirement, the base minimum capital prescribed by SEBI:

Financial markets serve which three purposes?

At present, the apex institution with regard to rural credit is

SEBI signs MoUs with different country's financial jurisdictions who are not a signatory to the multilateral MoU of International Organization of Securities Commissions (IOSCO).

An example of financial instruments that are primarily used as stores of value is:

SEBI has not been vested with the following powers:

Clearing and settlement operations of NSE are carried out by:

Financial instruments are used

Benefits of the merger between the NYSE and Paris-based Euronext, a pan European stock exchange include:

Which of the following is not a function of SEBI:

Exchange banks specialize in:

The difference between a primary market and a secondary market is

The liquidity status of certificate of deposit which is more negotiable is considered as

The IDBI was started in

Which of the following in India is an exchange bank?

Two important characteristics of financial instruments are:

Which of the following increases the value of a financial instrument?

Which of the following is not a characteristic of a financial instrument?

SEBI operates to fulfill the needs of these three groups, choose the one which is not in those three:

Understanding Financial Systems and Regulations

Understanding Financial Markets and Institutions

Financial Markets and Instruments

Securities, Financing, and Investments: Exploring the World of Finance

Banking Functions, Credit Rating Agencies, and Financial Markets: Exploring the Basics

Bills, Securities, and Stock Market Operations

Financial Institutions and Commodity Markets: an Overview

Financial Concepts and Institutions

Exploring the Basics of Financial Markets and Securities

Understanding the Link Between Savers, Borrowers, and Investors: Exploring Financial Markets and Stock Exchange Functions

Filters