Question 1

A company can raise capital through the primary market in the form of

Accepted Answer

A) Equity shares 
B) Preference shares 
C) Debentures 
D) All of the above 
A) Equity shares 
B) Preference shares 
C) Debentures 
D) All of the above

Question 2

Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?

Accepted Answer

A) SEBI 
B) RBI 
C) NSE 
D) BSE 
A) SEBI 
B) RBI 
C) NSE 
D) BSE

Question 3

Which of the following statements is not true with regard to Commercial paper?

Accepted Answer

A) Is a long-term unsecured promissory note with a fixed maturity period. 
B) It usually has a maturity period of 15 days to one year. 
C) It is sold at a discount and redeemed at par. 
D) Companies use this instrument for bridge financing. 
A) Is a long-term unsecured promissory note with a fixed maturity period. 
B) It usually has a maturity period of 15 days to one year. 
C) It is sold at a discount and redeemed at par. 
D) Companies use this instrument for bridge financing.

Question 4

Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.

Accepted Answer

A) Providing scope for speculation. 
B) Providing liquidity and marketability to existing securities. 
C) Pricing of security. 
D) Spreading of equity cult. 
A) Providing scope for speculation. 
B) Providing liquidity and marketability to existing securities. 
C) Pricing of security. 
D) Spreading of equity cult.

Question 5

The capital market consists of

Accepted Answer

A) Development banks 
B) Commercial banks 
C) Stock exchanges 
D) All of the above 
A) Development banks 
B) Commercial banks 
C) Stock exchanges 
D) All of the above

Question 6

The process of holding shares in electronic form is known as

Accepted Answer

A) Demutualisation 
B) Dematerialisation 
C) Speculation 
D) None of the above 
A) Demutualisation 
B) Dematerialisation 
C) Speculation 
D) None of the above

Question 7

It acts like a bank and keeps securities in electronic form on behalf of the investor,

Accepted Answer

A) Depository Participant 
B) Depository 
C) Stock exchange 
D) None of the above 
A) Depository Participant 
B) Depository 
C) Stock exchange 
D) None of the above

Question 8

Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.

Accepted Answer

A) Private placement 
B) Offer through prospectus 
C) Offer for sale 
D) All of the above 
A) Private placement 
B) Offer through prospectus 
C) Offer for sale 
D) All of the above

Question 9

The value of one unit of investment in Mutual fund is called the _______________.

Accepted Answer

A) Net Asset Value 
B) Issue value 
C) Market value 
D) Gross Asset value 
A) Net Asset Value 
B) Issue value 
C) Market value 
D) Gross Asset value

Question 10

Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange

Accepted Answer

A) Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order 
B) Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order 
C) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order 
D) Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order 
A) Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order 
B) Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order 
C) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order 
D) Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order

Question 11

_______ is a link between savers & borrowers, helps to establish a link between savers & investors

Accepted Answer

A) Marketing 
B) Financial market 
C) Money market 
D) None of these 
A) Marketing 
B) Financial market 
C) Money market 
D) None of these

Question 12

One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India

Accepted Answer

A) Regulatory function 
B) Protective function 
C) Developmental function 
D) None of the above 
A) Regulatory function 
B) Protective function 
C) Developmental function 
D) None of the above

Question 13

A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit

Accepted Answer

A) Expensive in comparison with banks who raise funds from these sources. 
B) Cheaper in comparison with banks who raise funds from these sources. 
C) Creates no effect on other sources. 
D) None of the above 
A) Expensive in comparison with banks who raise funds from these sources. 
B) Cheaper in comparison with banks who raise funds from these sources. 
C) Creates no effect on other sources. 
D) None of the above

Question 14

Raj Enterprises wishes to invest ?1,10,000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund?

Accepted Answer

A) 6 
B) 7 
C) 4 
D) 2 
A) 6 
B) 7 
C) 4 
D) 2

Question 15

It is an instrument of short-term borrowing by the Government of India maturing in less than one year.

Accepted Answer

A) Commercial bill 
B) Treasury bill 
C) Call money 
D) None of the above 
A) Commercial bill 
B) Treasury bill 
C) Call money 
D) None of the above

Question 16

Which of the following statements is not true with regard to Treasury bills?

Accepted Answer

A) Are issued in the form of a promissory note. 
B) They are highly liquid and have assured yield 
C) They carry high risk of default. 
D) They are available for a minimum amount of ?25,000 and in multiples thereof. 
A) Are issued in the form of a promissory note. 
B) They are highly liquid and have assured yield 
C) They carry high risk of default. 
D) They are available for a minimum amount of ?25,000 and in multiples thereof.

Question 17

Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?

Accepted Answer

A) Clearing Members 
B) Brokers 
C) NBFCs 
D) Only a and b 
A) Clearing Members 
B) Brokers 
C) NBFCs 
D) Only a and b

Question 18

It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.

Accepted Answer

A) Commercial bill 
B) Commercial papers 
C) Call money 
D) None of the above 
A) Commercial bill 
B) Commercial papers 
C) Call money 
D) None of the above

Question 19

Which of the following statements is not true with regard to money market?

Accepted Answer

A) It involves low market risk. 
B) It is situated at specific locations. 
C) Deals in unsecured and short-term debt instruments. 
D) The instruments traded are highly liquid. 
A) It involves low market risk. 
B) It is situated at specific locations. 
C) Deals in unsecured and short-term debt instruments. 
D) The instruments traded are highly liquid.

Question 20

They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.

Accepted Answer

A) Commercial papers 
B) Call money 
C) Commercial bill 
D) Certificate of deposit 
A) Commercial papers 
B) Call money 
C) Commercial bill 
D) Certificate of deposit

A company can raise capital through the primary market in the form of

Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?

Which of the following statements is not true with regard to Commercial paper?

Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.

The capital market consists of

The process of holding shares in electronic form is known as

It acts like a bank and keeps securities in electronic form on behalf of the investor,

Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.

The value of one unit of investment in Mutual fund is called the _______________.

Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange

_______ is a link between savers & borrowers, helps to establish a link between savers & investors

One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India

A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit

Raj Enterprises wishes to invest ?1,10,000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund?

It is an instrument of short-term borrowing by the Government of India maturing in less than one year.

Which of the following statements is not true with regard to Treasury bills?

Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?

It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.

Which of the following statements is not true with regard to money market?

They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.

Understanding Financial Systems and Regulations

Understanding Financial Instruments and Market Functions

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

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Exam 11: Understanding the Link Between Savers, Borrowers, and Investors: Exploring Financial Markets and Stock Exchange Functions

A company can raise capital through the primary market in the form of

Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?

Which of the following statements is not true with regard to Commercial paper?

Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.

The capital market consists of

The process of holding shares in electronic form is known as

It acts like a bank and keeps securities in electronic form on behalf of the investor,

Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.

The value of one unit of investment in Mutual fund is called the _______________.

Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange

_______ is a link between savers & borrowers, helps to establish a link between savers & investors

One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India

A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit

Raj Enterprises wishes to invest ?1,10,000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund?

It is an instrument of short-term borrowing by the Government of India maturing in less than one year.

Which of the following statements is not true with regard to Treasury bills?

Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?

It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.

Which of the following statements is not true with regard to money market?

They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.

Understanding Financial Systems and Regulations

Understanding Financial Instruments and Market Functions

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

Filters