Deck 4: Stock Market and Financial Instruments in India

Question 1

What is the full form of ECB?

A)External Commercial Borrowings
B)External Commercial Bonds
C)Equity Capital Balance
D)None of the Above

Answer 1

External Commercial Borrowings

Question 2

For listed companies the prices are publically arrived at on the basis of demand and supply and hence stock exchange quotations reflect the real value of the security.

Answer 2

True

Question 3

SEBI started its actual functioning when…..

A)It was set up in 1988
B)RBI gave it a permission in 1989
C)SEBI Act was passed in 1992
D)It was registered

Answer 3

SEBI Act was passed in 1992

Question 4

Full Form of NEAT is

A)National Exchange for Automated Trading
B)National Equity Automated Trading
C)National Exchange for Analysis and Trading
D)None of the Above

Question 5

What is the full form of NSDL

A)National Stock Dealing Ltd.
B)National Securities Dealers Ltd.
C)National Securities Depository Ltd.
D)National Stock and Debt Ltd.

Question 6

Market making is a unique concept of which stock exchange of India?

A)NSE
B)BSE
C)ISE
D)OTCEI

Question 7

Capital Market in India plays a role in developing integration among:

A)Real Sector and Financial Sector
B)Long-term and Short-term interest costs
C)Equity and Debt Instruments
D)All of the above

Question 8

Sentence A - Through Rights issue fresh capital can be raised and Sentence B - Through a Bonus Issue Fresh capital can be raised.

A)Only Sentence A is true
B)Both Sentences A and B are true
C)Only Sentence of B is true
D)Both Sentences A and B are False

Question 9

Book Building is basically ____________ of shares.

A)An auction
B)A process of listing
C)Credit rating
D)None of the Above

Question 10

In the process of Book Building if the public portion gets oversubscribed,…..

A)The size of the Public Portion is raised
B)The allotment is made on a proportionate basis
C)The placement portion is cancelled
D)None of the above

Question 11

Stock Futures, Stock Options, Index Futures and Index Options are ___________

A)Bonds
B)Combination of Equity and Debt
C)Equity Derivatives
D)None of the Above

Question 12

Which Stock Exchange of India was set up with an objective to meet the current international standards of securities market?

A)BSE
B)ISE
C)OTCEI
D)NSE

Question 13

To provide a focal point for central bank (RBI) intervention for influencing liquidity and general level of interest rates in the economy is an important function of

A)Secondary Market
B)Money Market
C)Capital Market
D)Forex Market

Question 14

Indigenous bankers and money lenders are constituents of _____________

A)Organised Money Market
B)Organised Stock Market
C)Unorganised Money Market
D)None of the Above

Question 15

The purchase and sell of which of the following instrument is effected through Subsidiary General Ledger (SGL) account?

A)Treasury Bills
B)Options
C)Equity Shares
D)All of the Above

Question 16

Minimum Subscription amount of a Certificate of Deposit is ___________.

A)Rs. 25,000
B)Rs. 50,000
C)Rs. 1,00,000
D)Rs. 5,00,000

Question 17

Which instrument was introduced in year 1990 with a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowings?

A)Certificate of Deposit
B)Commercial Paper
C)Commercial Bill
D)None of the Above

Question 18

When money is lent for more than a day and up to 14 days it is called as __________

A)Demand Money
B)Call Money
C)Put Money
D)Notice Money

Question 19

What type of relationship is there between call rates and short-term money market instruments such as CDs and CPs?

A)Inverse
B)Direct
C)Negative
D)None of the Above

Question 20

_______________ is an important tool to finance credit sales?

A)Commercial Bill
B)Commercial Paper
C)Certificate of Deposit
D)None of the Above

Question 21

Which instrument involves high risk and high returnsand helps corporates in solving temporary capital crisis without many formalities?

A)Equity Shares
B)Term Loan
C)Inter-corporate Deposits
D)All of the Above

Question 22

Which of the following are money market instruments?

A)Treasury Bills
B)Commercial Bills
C)Call Money
D)All of the Above

Question 23

What is the full form of CRISIL?

A)Credit Rating and Investment Services of India Limited
B)Credit Rating Information Services of India Limited
C)Credit Rating Institution for Small Industries Limited
D)Credit Rating Information Sector of India Limited

Question 24

ICRA was incorporated in which year?

A)1990
B)1991
C)1992
D)1993