Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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 B

Question 4

_______________ is an important tool to finance credit sales?

Accepted Answer

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

Question 5

SEBI started its actual functioning when…..

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

Which of the following are money market instruments?

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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 10

Indigenous bankers and money lenders are constituents of _____________

Accepted Answer

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

Question 11

What is the full form of ECB?

Accepted Answer

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

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

What is the full form of CRISIL?

Accepted Answer

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 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

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

Question 16

Minimum Subscription amount of a Certificate of Deposit is ___________.

Accepted Answer

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

Question 17

Full Form of NEAT is

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

What is the full form of NSDL

Accepted Answer

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

Exam 4: Stock Market and Financial Instruments in India