Deck 6: Banking Functions, Credit Rating Agencies, and Financial Markets: Exploring the Basics

Question 1

Which of the following is not a primary function of a Bank?

A)Granting Loans
B)Collecting Cheques/Drafts customers
C)Facilitating import of goods
D)Issuing Bank Drafts

Answer 1

Facilitating import of goods

Question 2

Which of the following is not an institutional credit rating agency in Indian financial system?

A)CRISIL
B)CIBIL
C)CARE
D)ICRA

Answer 2

CIBIL

Question 3

----- represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.

A)Physical asset
B)Fixed asset
C)Financial asset
D)All the above

Answer 3

Financial asset

Question 4

SEBI was established in -----.

A)1988
B)1985
C)1991
D)1990

Question 5

RBI started functioning on -----.

A)1-4-1935
B)1-4-1948
C)1-4-1882
D)1-4-1945

Question 6

National Housing bank is a fully owned subsidiary of -----.

A)HDFC
B)HSBC
C)RBI
D)HUDCO

Question 7

----- has the statutory powers to regulate and promote the Indian capital market.

A)Registrar of issue
B)Merchant banks
C)SEBI
D)RBI

Question 8

Any company making a public issue of value of more than Rs. ---- is required to file a draft offer document with SEBI.

A)100 lakh
B)25 lakh
C)50 lakh
D)10 lakh

Question 9

----- Committee was constituted by SEBI for deciding about derivatives trading.

A)L.C.Gupta
B)R. L. Gupta
C)Vaghul
D)Malhotra

Question 10

RBI is the lender of last resort for -----.

A)Central Government
B)State Governments
C)Stock markets
D)Commercial Banks

Question 11

The market regulator of Indian Capital Market is ……………

A)DFHI
B)RBI
C)SEBI
D)STCI

Question 12

……………………… market is a market for old issues.

A)Money market
B)Primary market
C)Secondary market
D)All the above

Question 13

Which of the following is a financial asset

A)Gold
B)silver
C)share
D)Land.

Question 14

Which of the following is a cash asset?

A)deposit created out of loans
B)share
C)bond
D)Post office certificate.

Question 15

Govt. bond is a

A)short term security
B)long term security
C)medium term security
D)Either a or b.

Question 16

Money market deals with ..................... instruments.

A)long term
B)short term
C)medium term
D)all of these.

Question 17

The market for extremely short period loan is called.....................

A)call money market
B)money at short notice
C)T-bill market
D)G-sec market

Question 18

..................... acts as an intermediary between Govt. and money market

A)RBI
B)SEBI
C)Commercial banks
D)All the above

Question 19

................... are drawn by contractors on the Govt. departments for the goods supplied to them

A)treasury bills
B)supply bill
C)bill of lading
D)documentary bill

Question 20

..................... are an important instrument of short term borrowing by the Govt.

A)National saving certificate
B)Bonds
C)Treasury bill
D)Any of the above

Question 21

..................... is a market for bankers' acceptances

A)discount market
B)CDs market
C)Interbank participation market
D)Acceptance market