Deck 2: Financial Institutions and Securities-Related Terms

Question 1

Adhoc treasury bills are issued in favour of the ..................... only

A)Treasury
B)RBI
C)Commercial banks
D)State government

Answer 1

RBI

Question 2

..................... 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 2

Certificate of deposit

Question 3

Discount and Finance House of India was set up in .....................

A)1982
B)1988
C)1992
D)1969

Answer 3

1988

Question 4

Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee

A)Malegam
B)Malhotra
C)Vaghul
D)Narasimham

Question 5

..................... has been set up mainly to provide a secondary market in Govt. Securities

A)DHFI
B)OTCEI
C)STCI
D)NSDL

Question 6

Right shares are offered to.....................

A)Debenture holders
B)Existing shareholders
C)List 2 contributories
D)Liquidators

Question 7

..................... is the suitable method where small companies issue shares

A)public issue
B)placement
C)offer for sale
D)none of these

Question 8

..................... is a process of admitting securities for trading on a recognised stock exchange.

A)registration
B)filing
C)listing
D)admission

Question 9

..................... is a preferential independent broker who deals in securities on his own behalf.

A)Jobber
B)sub broker
C)Remisiers
D)Arbitragers

Question 10

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

Question 11

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

Question 12

The central depositary ..................... the security on behalf of the investors

A)hold
B)transfer
C)both a & b above
D)none of these

Question 13

..................... of shares in the first step in the depository process

A)Registration
B)Listing
C)Rematting
D)Immobilisation

Question 14

. ..................... is the link between the depository and the owner

A)Agent
B)Depository participant
C)Beneficiary
D)Broker

Question 15

..................... issues does not bring in any fresh capital

A)equity
B)preference
C)debenture
D)bonus

Question 16

Prospectus is not issued in

A)public issue
B)private placement
C)right issue
D)none the above

Question 17

An issuer need not file an offer document in case of

A)public issue
B)preferential allotment
C)right issue
D)bought out deal

Question 18

An issuer can launch an IPO within.....................

A)3 months
B)6 months
C)9 months
D)one year

Question 19

An issue of a minimum size of Rs. ..................... crore is a mega issue

A)50
B)100
C)150
D)300

Question 20

Financial institutions are also known as ........................

A)Financial organisation
B)Financial intermediaries
C)Financial system
D)Any of the above

Question 21

Management Development Institute (MDI)was set up by ........................

A)IDBI
B)ICICI
C)IFCI
D)SEBI

Question 22

........................ 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