Financial Institutions and Markets MCQs with Answers for various online assignment as well as exam purpose. You can study online for preparing your exam.
Financial Institutions and Markets Multiple choice question
Q1. allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption
a. Economic system
b. Banking system
c. Financial system
d. Market system
Answer:
Q2. Which of the following is not a regulatory institutions in Indian financial system.
a. RBI
b. CIBIL
c. SEBI
d. IRDA
Answer:
Q3. is regarded as a queen of Indian financial system.
a. SEBI
b. RBI
c. Finance Ministry
d. BSE
Answer:
Q4. —- 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. none of these
Answer:
Q5. SEBI was established in —-
a. 1988
b. 1985
c. 1991
d. 1990
Answer:
Q6. RBI started functioning on —-
a. 1-4-1935
b. 1-4-1948
c. 1-4-1882
d. 1-4-1945
Answer:
Q7. Financial derivatives include
a. Stocks
b. Bonds
c. Futures
d. None of the above
Answer:
Q8. —- has the statutory powers to regulate and promote the Indian capital market.
a. Registrar of issue
b. Merchant banks
c. SEBI
d. RBI
Answer:
Q9. Which of the following is not a financial derivative?
a. Options
b. Forward contracts
c. Stock
d. Futures
Answer:
Q10. —- Committee was constituted by SEBI for deciding about derivatives trading.
a. L.C.Gupta
b. R. L. Gupta
c. Vaghul
d. Malhotra
Answer:
Q11. RBI is the lender of last resort for —-
a. Central Government
b. State Governments
c. Stock markets
d. Commercial Banks
Answer:
Q12. The market regulator of Indian Capital Market is —-
a. DFHI
b. RBI
c. SEBI
d. STCI
Answer:
Q13.—-Facilitate the transfer of funds from savers to the borrowers.
a. goods market
b. money market
c. financial market
d. consumer market
Answer:
Q14. —-Market is a market for old issues.
a. Money market
b. Primary market
c. Secondary market
d. All the above
Answer:
Q15. Which of the following is a financial asset
a. gold
b. silver
c. share
d. Land.
Answer:
Q16. Which of the following is a cash asset?
a. deposit created out of loans
b. share
c. bond
d. Post office certificate.
Answer:
Q17. Govt. bond is a
a. short term security
b. long term security
c. medium term security
d. Either a or b.
Answer:
Q18. Money market deals with —- instruments.
a. long term
b. short term
c. medium term
d. all of these.
Answer:
Q19. 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
Answer:
Q20.—-acts as an intermediary between Govt. and money market
a. RBI
b. SEBI
c. Commercial banks
d. All the above
Answer:
Q21.—-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
Answer:
Q22. The bill which doesn’t require acceptance is called—-
a. treasury bills
b. supply bill
c. bill of lading
d. documentary bill
Answer:
Q23.—-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
Answer:
Q24.—-is a market for bankers’ acceptances
a. discount market
b. CDs market
c. Interbank participation market
d. Acceptance market
Answer:
Q25. Accommodation bills are also known as —- bills
a. kite bills
b. wind bills
c. supply bill
d. both a & b
Answer:
Q26. Adhoc treasury bills are issued in favour of the —- only
a. Treasury
b. RBI
c. Commercial banks
d. State government
Answer:
Q27.—-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:
Q28. —- is an unsecured short term promissory note issued by creditworthy companies?
a. commercial paper
b. interbank participation certificate
c. Repo
d. Certificate of deposit
Answer:
Q29. Discount and Finance House of India was set up in —-
a. 1982
b. 1988
c. 1992
d. 1969
Answer:
Q30. Discount and Finance House of India was set up in pursuance of the recommendations of—-Committee
a. Malegam
b. Malhotra
c. Vaghul
d. Narasimham
Answer:
Q31.—-has been set up mainly to provide a secondary market in Govt. Securities
a. DHFI
b. OTCEI
c. STCI
d. NSDL
Answer:
Q32. Right shares are offered to—-
a. Debenture holders
b. Existing shareholders
c. List 2 contributories
d. Liquidators
Answer:
Q33.—-is the suitable method where small companies issue shares
a. public issue
b. placement
c. offer for sale
d. none of these
Answer:
Q34. —- is a process of admitting securities for trading on a recognised stock exchange.
a. registration
b. filing
c. listing
d. admission
Answer:
Q35. —- is a preferential independent broker who deals in securities on his own behalf.
a. Jobber
b. sub broker
c. Remisiers
d. Arbitragers
Answer:
Q36. 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
Answer:
Q37. 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
Answer:
Q38. The central depositary —- the security on behalf of the investors
a. hold
b. transfer
c. both a & b above
d. none of these
Answer:
Q39.—-of shares in the first step in the depository process
a. Registration
b. Listing
c. Rematting
d. Immobilisation
Answer:
Q40.—-is the link between the depository and the owner
a. Agent
b. Depository participant
c. Beneficiary
d. Broker
Answer:
Q41.—-issues does not bring in any fresh capital
a. equity
b. preference
c. debenture
d. bonus
Answer:
Q42. Prospectus is not issued in
a. public issue
b. private placement
c. right issue
d. none the above
Answer:
Q43. An issuer need not file an offer document in case of
a. public issue
b. preferential allotment
c. right issue
d. bought out deal
Answer:
Q44. An issuer can launch an IPO within—-
a. 3 months
b. 6 months
c. 9 months
d. one year
Answer:
Q45. By hedging a portfolio, a bank manager
a. increases exchange rate risk
b. increases the probability of gains
c. reduces interest rate risk
d. increases reinvestment risk
Answer:
Q46. Financial institutions are also known as —-
a. Financial organisation
b. Financial intermediaries
c. Financial system
d. Any of the above
Answer:
Q47. —- is the first development financial institution in India.
a. IDBI
b. ICICI
c. IFCI
d. RBI
Answer:
Q48. Management Development Institute (MDI)was set up by —-
a. IDBI
b. ICICI
c. IFCI
d. SEBI
Answer:
Q49. IDBI was established in —-
a. 1948
b. 1954
c. 1992
d. 1964
Answer:
Q50. —- 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
Answer:
Q51. Technical consultancy Organisations were set up by—-
a. IFCI
b. IDBI
c. RBI
d. SEBI
Answer:
Q52. ICICI was set up in —-
a. 1955
b. 1964
c. 1989
d. 1935
Answer:
Q53. —- assists mainly to industrial undertakings in the private sector
a. IFCI
b. IDBI
c. ICICI
d. SEBI
Answer:
Q54. LIC was established in—-
a. 1956
b. 1964
c. 1989
d. gcv1935
Answer:
Q55. UTI was set up in the year —-
a. 1956
b. 1964
c. 1969
d. 1948
Answer:
Q56. —-known as Brettonwood twins
a. IDBI and IFCI
b. IDBI and UTI
c. IBRD and IMF
d. RBI and SEBI
Answer:
Q57. WorldA contract that requires the investor to buy securities on a future date is called
a. Short contract
b. Long contract
c. Hedge
d. Cross
Answer:
Q58. A contract that requires the investor to sell securities on a future date is called a
a. Short contract
b. Long contract
c. Hedge
d. Micro Hedge
Answer:
Q59. Futures markets have grown rapidly because futures
a. are standardized
b. have lower default risk
c. are liquid
d. All of the above
Answer:
Q60. Which of the following gives long term finance?
a. IDBI
b. ICICI
c. IFCI
d. All the above
Answer:
Q61. Which of the following is a fee based service
a. hire purchase
b. Leasing
c. capital issue management
d. Underwriting.
Answer:
Q62. Find the odd one out
a. commercial paper
b. share certificate
c. certificate of deposit
d. Treasury bill.
Answer:
Q63. The process of managing the sales ledger of a client by a financial service company is called
a. forfaiting
b. factoring
c. leasing
d. None of these.
Answer:
Q64. Mutual funds are very popular in
a. USA
b. UK
c. Japan
d. India
Answer:
Q65. In India, the company which actually deals with the corpus of the mutual fund is called
a. sponsor company
b. trustee company
c. asset management company
d. Mutual fund Company.
Answer:
Q66. If you sold a short contract on financial futures you hope interest rates
a. rise
b. fall
c. stable
d. fluctuate.
Answer:
Q67. An asset with a physical value is called
a. Financial asset
b. Non financial asset
c. Fictitious asset
d. Fixed asset
Answer:
Q68. An asset which derives its value because of a contractual claim is
a. Financial asset
b. Non financial asset
c. Fictitious asset
d. Fixed asset
Answer:
Q69. Gold is ——- asset
a. Financial asset
b. Non financial asset
c. Fictitious asset
d. Intangible asset
Answer:
Q70. Cash is ———- asset
a. Financial asset
b. Non financial asset
c. Fictitious asset
d. Intangible asset
Answer:
Q71. ——— is a whole sale market for short term debt instrument.
a. capital market
b. forex market
c. money market
d. any of the above
Answer:
Q72. Money lent in the inter-bank market for 15 days or more is called ——-
a. Call money
b. Term money
c. Money at short notice
d. All the above
Answer:
Q73. Call money is a loan given for a period of
a. 15 days
b. 30 days
c. 1 day
d. 1 year
Answer:
Q74. When money lent for more than a day but up to a fortnight is called
a. Call money
b. Term money e.
c. Money at short notice
d. None of the above
Answer:
Q75. CBLO stands for
a. Collateralised Borrowing and Lending Obligation
b. Central Banks Lending Obligation
c. Commercial Bank and Lending Option
d. None of these
Answer:
Q76. The NSDL established in
a. August 1996
b. August 1998
c. January 1996
d. January 1998
Answer:
Q77. In a private placement the maximum number of investors shall not exceed
a. 51
b. 49
c. 100
d. 25
Answer:
Q78. Merchant banks in India started in
a. 1955
b. 1969
c. 1972
d. 1992
Answer:
Q79. The number of futures contract outstanding is called
a. liquidity
b. volume
c. open interest
d. float
Answer:
Q80. SENSEX is the index of
a. BSE
b. NSE
c. OTCEI
d. CSE
Answer:
Q81. NIFTY is the index of
a. BSE
b. NSE
c. OTCEI
d. CSE
Answer:
Q82. The first Indian equity index is
a. Nifty
b. Sensex
c. Dollex
d. Defty
Answer:
Q83.is a product whose value is derived from the value of underlying asset
a. Repo
b. T-bills
c. G.sec
d. Derivatives
Answer:
Q84. BOLT stands for
a. Borrowing or Lending Trade
b. Bombay Online Trading
c. Bond or Loan Transaction
d. None of these
Answer:
Q85. ———- is also known as “G.Secs”
a. Gold Traded Fund (GTF)
b. General Securities
c. Govt. Securities
d. Growth oriented fund
Answer:
Q86. —-are negotiable instrument issued by an overseas depository
a. ADR
b. GDR
c. IDR
d. Any of the above
Answer:
Q87. Perpetual bond is also known as
a. Deep discount bond
b. Irredeemable bond
c. Bearer bond
d. Registered bond
Answer:
Q88. Zero Coupon Bond is also known as
a. Deep discount bond
b. Irredeemable bond
c. Bearer bond
d. Zero Interest bond
Answer:
Q89. Secured Premium Notes (SPN) always issued with—-
a. Premium
b. Discount
c. Detachable Warrant
d. Coupon
Answer:
Q90. —-bonds permit the bond holder to invest the interest income again in host bonds
a. Deep discount bond
b. Junk bonds
c. Bearer bond
d. Bunny bonds
Answer:
Q91. —-bonds are high risk and high yield bonds developed in USA
a. Deep discount bond
b. Junk bonds
c. Bearer bond
d. Bunny bonds
Answer:
Q92. ESOP stands for
a. Equity share option Plan
b. Equity shares Option premium
c. Employee stock Option Plan
d. Equity Stock Option Plan
Answer:
Q93. QIPs Stands for
a. Quality investment Project
b. Qualified investment Plan
c. Qualified Institutional Placement
d. Qualitative Investment Premium
Answer:
Q94. What you mean by “STRIPS”
a. Separate Trade Register of Initial Public Securities offer
b. Stock Trading Register of Interest and Principal Securities
c. Separate Trading of Registered Interest and Principal of Securities
d. Share Transfer and Registrar of Indian Public Securities issues
Answer:
Q95. Gilt Edged Securities are
a. Govt. Securities
b. Company’s securities
c. Any of the above
d. None of these
Answer:
Q96. F utures differ from forwards because they are
a. used to hedge portfolios
b. used to hedge individual securities
c. used in both financial and foreign exchange markets
d. a standardized contract
Answer:
Q97. The small investors’ gateway to enter into big companies is —-
a. Equity shares
b. Preference shares
c. Bonds
d. Mutual fund
Answer:
Q98. Money Market mutual fund is also known as———–
a. Growth fund
b. Balanced fund
c. Income fund
d. Cash fund
Answer:
Q99. The price specified on an option that the holder can buy or sell the underlying asset is called the
a. premium
b. Call
c. Strike price
d. Put
Answer:
Q100. The amount paid for an option is the
a. Strike price
b. Premium
c. Discount
d. Commission
Answer:
Q101. The market for extremely short period loan is called
a. Call loan market
b. short notice market
c. treasury bill market
d. commercial bill market
Answer:
Q102. —— bills are drawn by contractors on the government departments for the goods supplied by them.
a. Usance bills
b. T-bills
c. Clean bills
d. Supply bills
Answer:
Q103. ——-is also known as ‘Industrial Paper”
a. Treasury bills
b. Commercial bills
c. Financial accommodation bills
d. Commercial paper
Answer:
Q104. An option that can be exercised at any time up to maturity is called a(n)
a. Swap
b. Stock option
c. European option
d. American option
Answer:
Q105. Options on individual stocks are referred to as
a. Stock option
b. European option
c. American option
d. Individual option
Answer:
Q106. An option allowing the holder to buy an asset in the future is a
a. Put option
b. Call option
c. Swap
d. Premium
Answer:
Q107. A put option gives the seller
a. the right to sell the underlying security
b. the obligation to sell the underlying security
c.the right to buy the underlying security
d.the obligation to buy the underlying security
Answer:
Q108. An option allowing the owner to sell an asset at a future date is a
a. Put option
b. Call option
c. Swap
d. Forward contract
Answer:
Q109. The market which helps commercial banks to maintain their SLR requirement is
a. Call loan market
b. T-bills market
c. Acceptance market
d. Commercial bill market
Answer:
Q110. Bill Market Scheme in India was introduced in the year
a. 1972
b. 1952
c. 1969
d. 1982
Answer:
Q111. Adhoc T-bills are always issued in favour of—-
a. State government
b. Commercial banks
c. Treasuries
d. RBI
Answer:
Q112. The certificate which evidences an unsecured corporate debt of short term maturity
a. Certificate of Deposit
b. Commercial paper
c. Secured Premium Notes
d. Interbank participation Certificate
Answer:
Q113. Major players of Indian money market is
a. Central bank
b. Co-operative banks
c. Commercial banks
d. Indigenous banks
Answer:
Q114. —– is the suitable method where small companies issue shares
a. Offer for sale
a. Private placement
b. Issue by prospectus
c. All the above
Answer:
Q115. Zero interest bonds are always issued
a. At premium
b. At discount
c. With detachable warrant
d. Any of the above
Answer:
Q116. —– is a guarantee for marketability of shares
a. Listing
b. Underwriting
c. Registration
d. Issue by prospectus
Answer:
Q117. Which one of the following is /are not function of NIM
a. Origination
b. Underwriting
c. Distribution
d. Listing
Answer:
Q118. BOLT was introduced by BSE in the year
a. 1990
b. 1995
c. 1992
d. 1999
Answer:
Q119. —- is a permission to quote securities officially on the trading floor of stock exchange
a. Origination
b. Underwriting
c. Distribution
d. Listing
Answer:
Q120. The number of shares which are less than market lots are called
a. Grey lot
b. Odd lot
c. Tag lot
d. Tied lot
Answer:
Q121. Rolling Settlement system was introduced by SEBI in the year
a. 1994
b. 1998
c. 1996
d. 1999
Answer:
Q122. The facility to carry forward a transaction from one settlement period to another is called—– transaction
a. Hand delivery
b. Badla
c. Cornering
d. Arbitrage
Answer:
Q123. The device adopted to make profit out of price differences in two different markets
a. Cornering
b. Wash sales
c. Rigging
d. Arbitrage
Answer:
Q124. A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is
a. Sub-broker
b. Commission broker
c. Authorised clerk
d. Remisiers
Answer:
Q125. ——— is also known as Remisiers and Half-commission man
a. Sub-broker
b. Commission broker
c. Authorised clerk
d. Jobbers
Answer:
Q126. An order for the purchase of securities at a fixed price is known as
a. Limit order
b. Open order
c. Discretionary order
d. Stop loss order
Answer:
Q127. Speculator who neither buy nor sell securities in the market, but still trade on them are called
a. Wolves
b. Stag
c. Bull
d. Bear
Answer:
Q128. The process of holding the entire supply of a particular security with a view to dictating terms is called
a. Cornering
b. Wash sales
c. Rigging
d. Arbitrage
Answer:
Q129. ———market deals in unlisted securities
a. Blue chip market
b. Bear market
c. Grey market
d. Bull market
Answer:
Q130. When purchases of securities are more than sales of securities, the market is called
a. Bullish
b. Bearish
c. Grey
d. Odd
Answer:
Q131. When sales of securities are more than purchases of securities, the market is called
a. Bullish
b. Bearish
c. Grey
d. Odd
Answer:
Q132. —– is the charges paid by a bull speculator to the other party for obtaining carry over facility
a. Backwardation
b. Contango
c. Spread
d. Margin
Answer:
Q133. —– is the amount paid by bear to facilitate him to renew a bargain until next settlement date
a. Backwardation
b. Contango
c. Spread
d. Margin
Answer:
Q134. —– is the process of selling securities without owning them
a. Short selling
b. Long selling
c. Margin trading
d. Prise rigging
Answer:
Q135. Bull speculators are also known as
a. Tharawaniwalas
b. Tejiwalas
c. Mandiwalas
d. Badliwalas
Answer:
Q136. Bear speculators are also known as
a. Tharawaniwalas
b. Tejiwalas
c. Mandiwalas
d. Badliwalas
Answer:
Q137. Another name of jobber is
a. Tharawaniwalas
b. Tejiwalas
c. Mandiwalas
d. Badliwalas
Answer:
Q138. Those who provides finance for carry forward transactions in securities is called
a. Tharawaniwalas
b. Tejiwalas
c. Mandiwalas
d. Badliwalas
Answer:
Q139. The speculator who observes very fast the trends and changes in market is
a. Bull
b. Bear
c. Stag
d. Wolves
Answer:
Q140. ——is the bear speculator who struggling to complete his commitments because of wrong foot
a. Bull
b. Lame duck
c. Stag
d. Wolves
Answer:
Q141. An option (right) to purchase shares in future at predetermined price is called
a. Hedging
b. Put option
c. Push option
d. Call option
Answer:
Q142. An option (right) to sell shares in future at predetermined price is called
a. Hedging
b. Put option
c. Pull option
d. Call option
Answer:
Q143. —— refers to the process of creating an artificial condition in market in order to push price of particular shares.
a. Cornering
b. Arbitrage
c. Option deal
d. Rigging
Answer:
Q144. An attempt to gaining short term profit from the price difference or movements of securities are called
a. Investment
b. Speculation
c. Hedging
d. All the above
Answer:
Q145. Companies (Amendment) bill-1999 restricts buy back of shares up to—- of the paid up capital
a. 50%
b. 20%
c. 25%
d. 60%
Answer:
Q146. SIDBI is fully owned subsidiary of
a. IDBI
b. RBI
c. SEBI
d. IFCI
Answer:
Q147. “AMBI” stand for
a. Association of Management of Banks in India
b. Association of Merchant banks in India
c. Association of Modern Banks in India
d. Automated Mechanism for Borrowing and Investment
Answer:
Q148. In listed securities, “Group A shares” are also known as
a. Specified shares
b. Cleared securities
c. Non- specified shares
d. Both a & b above
Answer:
Q149. In listed securities, “Group B shares” are also known as
a. Specified shares
b. Non-Cleared securities
c. Non- specified shares
d. Both b & c above
Answer:
Q150. Odd lot shares are coming under —– of listed securities
a. Group A
b. Group B
c. Group C
d. Any of the above
Answer:
Q151. ALBM (Automated Lending &Borrowing Mechanism) was introduced by
a. NSDL
b. SEBI
c. NSCCL
d. CDSL
Answer:
Q152. under public issue of shares, reservation for permanent employees
a. 10%
b. 25%
c. 15%
d. 50%
Answer:
Q153. Hedging by buying an option
a. Limits gains
b. Limits loses
c. Limits gains and loses
d. Has no limits on loses
Answer:
Q154. ——–is a method of cancellation of shares
a. Book building
b. Bonus issue
c. Buy back
d. Reissue
Answer:
Q155. Which of the following is / are method of Buy back of shares
a. Tender offers
b. Open offers
c. Dutch Auction
d. All the above
Answer:
Q156. Over the Counter Exchange of India commenced operation in the year
a. 1988
b. 1992
c. 1995
d. 1989
Answer:
Q157. Members of the OTCEI are —— only
a. Individuals
b. Corporates
c. Financial institution
d. Banks
Answer:
Q158. The whole sale market segment for NSE is meant for
a. Corporate securities
b. Govt.securities
c. Securities of MNCs
d. Securities of Financial Institutions
Answer:
Q159. As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at ——-
a. Discount
b. Premium
c. Par
d. any of the above
Answer:
Q160. National Stock Exchange (NSE) established in the year
a. 1990
b. 1992
c. 1995
d. 1999
Answer:
Q161. Method of trading in NSE is
a. Floor based- Order driven
b. Screen based- Code driven
c. Screen based – Order driven
d. Floor based – Quote driven
Answer:
Q162. Method of trading in OTCEI is
a. Floor based- Order driven
b. Screen based- Code driven
c. Screen based – Order driven
d. Floor based – Quote driven
Answer:
Q163. —– are eligible to list in OTCEI
a. Small companies
b. Large companies
c. Medium size companies
d. Small and Medium size companies which are not listed in any other stock exchange
Answer:
Q164. Discount and Finance House of India (DFHI) mainly deals in
a. Commercial bills
b. Corporate securities
c. Treasury bills
d. Commercial papers
Answer:
Q165. —– of shares is the first step in depository process
a. Mutualisation
b. Mobilisation
c. Immobilisation
d. Rematerialisation
Answer:
Q166. In depository system, —— is a link between depository and the owner.
a. Depository participant
b. Register and Transfer Agent
c. Issuer
d. Custodian.
Answer:
Q167. “A central location for keeping securities on deposit” is
a. Stock exchange
b. Investment bank
d. Merchant banks
c. Depository
Answer:
Q168. The group of shares which are not permitted for short selling are
a. A group
b. B group
c. T group
d. None of these
Answer:
Q169. —– group includes shares of companies which have failed to comply with listing requirements
a. A group
b. B group
c. T group
d. Z group
Answer:
Q170. In listed scrips, —– group includes small cap stocks.
a. S group
b. TS group
c. T group
d. Z group
Answer:
Q171. Shares of well established and financially sound compnies,with very little investment risk and good history of earnings is known as
a. Alpha shares
b. Blue chip shares
c. Star stock
d. Beta stock
Answer:
Q172. In a stock exchange where the ownership, management and trading are concentrated in a single group, it is called
a. Mutual exchange
b. Recognised exchange
c. Dominant exchange
d. Un -recognised exchange
Answer:
Q173. In India, currently method of calculation of stock indexes is
a. Free float market capitalisation
b. Full float market capitalisation
c. Fixed float market capitalisation
d. Minimum float market capitalisation
Answer:
Q174. Fully automated screen based trading system in NSE is known as
a. BOLT
b. ALBM
c. BLISS
d. NEAT
Answer:
Q175. The Chief promoter of National Securities Depository Limited (NSDL) is
a. NABARD
b. BSE
c. NSCCL
d. NSE
Answer:
Q176. The Chief promoter of Central Depository Services Limited CDSL) is
a. NABARD
b. BSE
c. NSCCL
d. NSE
Answer:
Q177. The third largest stock exchange in the world is
a. NSE
b. BSE
c. NASDAQ
d. USE (United Stock Exchange)
Answer:
Q178. In the index “CNX Nifty”, C stands for
a. Central
b. Credit
c. CRISIL
d. Cumulative
Answer:
Q179. The dollar version of Index of BSE is
a. Defty
b. Dollex
c. Both the above
d. None
Answer:
Q180. In BSE, T+2 rolling settlement began in the year
a. 2002
b. 2003
c. 2001
d. 1995
Answer:
Q181. In settlement T+2, ‘T’ stands for
a. Trade time
b. Trade day
c. Trade terms
d. Time for settlement
Answer:
Q182. Which one of the following is an example of derivative?
a. Warrants
b. Baskets
c. Swaptions
d. All of these
Answer:
Q183. The process in which illiquid assets are converted into marketable securities is known as
a. Mutualisation
b. Dematerialisation
c. Rematerialisation
d. Securitisation
Answer:
Q184. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year
a. 1992
b. 2002
c. 2005
d. 2000
Answer:
Q185. In security market, “ASBA” stands for
a. Application Supported by Blocked Amount
b. Automated Security Borrowing Arrangement
c. Active Securities Buying Agreement
d. Automatic Security Buying Assistance
Answer:
Q186. In financial circle, the name “Dalal Street” is used synonyms to—-
a. BSE
b. NASDAQ
c. NSE
d. OTCEI
Answer:
Q187. The name “Wall Street” is used to synonyms to—-
a. Bombay Stock Exchange
b. NASDAQ
c. National Stock Exchange
d. New York Stock Exchange
Answer:
Q188. A person who agrees to buy an asset at a future date has gone
a. Lomg
b. Hedge
c. Short
d. None
Answer:
Q189. Elimination of riskless profit opportunities in the futures market is
a. Hedging
b. Speculation
c. Arbitrage
d.Underwriting
Answer:
Q190. If you sold a short contract on financial futures you hope interest rates
a. Rise
b. Fall
c. Stable
d. Fluctuate
Answer:
Q191. If you bought a long contract on financial futures you hope that interest rates
a. Rise
b. Fall
c. Stable
d. Fluctuat
Answer:
Q192. If you bought a long futures contract you hope that bond prices
a. Rise
b. Fall
c. Fluctuate
d. Stable
Answer:
Q193. If you sold a short futures contract you will hope that bond prices
a. Rise
b. Fall
c. Fluctuate
d. Stable
Answer:
Q194. The number of futures contracts outstanding is called
a. Liquidity
b. Volume
c. Flat
d. Open interest
Answer:
Q195. An option allowing the owner to sell an asset at a future date is a
a. Put option
b. Call option
c. Forward contract
d. Futures
Answer:
Q196. If you buy a put option on treasury futures at 115, and at expiration the market price is 110,
a. the call will be exercised
b. the put will be exercisedc. the call will not be exercised
d. the put will not be exercised
Answer:
Q197. is the regulator of mutual funds in India
a. RBI
b. IRDA
c. SEBI
d. Both SEBI and GOI
Answer:
Q198. If you buy a put option on treasury futures at 110, and at expiration the market price is 115,
a. the call will be exercised
b. the put will be exercised
c. the put will not be exercised
d. the call will not be exercised
Answer:
Q199. All other things held constant, premiums on options will increase when the
a. Exercise price increases.
b. volatility of the underlying asset increases
c. term to maturity decreases
d. futures price increases
Answer:
Q200 The main reason to buy an option on a futures contract rather than the futures contract is
a. to reduce transaction cost
b. to preserve the possibility for gains
c. to limit losses.
d. remove the possibility for gains
Answer:
Q201. In Standardized futures contracts exist for all of the following underlying assets except:
a. Stock index
b. Gold
c. Common stocks.
d. Bond
Answer:
Q202. Which of the following does the most to reduce default risk for futures contracts?
a. Marking to market
b. high liquidity
c. flexible delivery
d. credit check
Answer:
Q203. Which of the following is potentially obligated to sell an asset at a predetermined price?
a. A putl writer
b. A call writer
c. A call buyer
d. A put buyer
Answer:
Q204. A put option should always be exercised —- if it is deep in the money
a. early
b. never
c. at the beginning
d. a the end
Answer:
Q205. The rate of change of the option price with reference to the price of the underlying asset is
a. Theta
b. Rho
c. Delta
d. Gamma
Answer:
Q206. Hedging strategy
a. Removes losses
b. Helps to reduce risk
c. Helps to make excess profits
d. Is indepenedent of risk
Answer:
Q207. ——–is the process of converting security in electronic form into physical form
a. Rematerialisation
b. Dematerialisation
c. Demutualisation
d. Mutualisation
Answer:
Q208. ——- is dealing in securities done by those who having access to price sensitive information.
a. Margin trading
b. Insider trading
c. Price rigging
d. Wash sales
Answer:
Q209. —– is a calculated move with an expectation to reap huge profit from market fluctuations
a. Gambling
b. Speculation
c. Genuine investment
d. None of the above
Answer:
Q210. —-speculators are optimistic in nature
a. Bull
b. Bear
c. Stag
d. wolves
Answer:
Q211. —-speculators are Pessimistic in nature
a. Bull
b. Bear
c. Stag
d. Wolves
Answer:
Q212. The scheme in which company can allot shares not more than 15% of the issue size, to the public in addition to the shares already offered- is called
a. Right issue
b. ESOPs
c. Green shoe option
d. Bonus issue
Answer:
Q213. The merchant banker coordinating a public issue is called as
a. Syndicator
b. Lead manager
c. Post issue manager
d. None of these
Answer:
Q214. —-is a shortened form of prospectus
a. Red herring prospectus
b. Abridged prospectus
c. Statement in lieu of prospectus
d. Shelf prospectus
Answer:
Q215. —-is an offer document is used in public issue made under book building method.
a. Red herring prospectus
b. Abridged prospectus
c. Statement in lieu of prospectus
d. Shelf prospectus
Answer:
Q216. In technical sense, short sellers (bears) will be “squeezed” through
a. Wash sales
b. Cornering
c. Rigging
d. Arbitrage
Answer:
Q217. ——-is known as ‘Traffic in securities’
a. Wash sales
b. Cornering
c. Rigging
d. Arbitrage
Answer:
Q218. A system of security trade in which one is allowed to invest in excess of his financial capacity by borrowing funds
a. Margin trading
b. Cornering
c. Rigging
d. Arbitrage
Answer:
Q219. Which of the following speculative transactions are unfair and prohibited?
a. Margin trading
b. Option deals e.
c. Rigging
d. Arbitrage
Answer:
Q220. Which of the following is not a prohibited act in security market?
a. Insider trading
b. Price rigging
c. Cornering
d. Margin trading
Answer:
Q221. —- is undertaken for making a dishonest claim for tax deduction.
a. Wash sales
b. Price rigging
c. Cornering
d. Margin trading
Answer:
Q222. —- means temporary halt of trade in stock exchanges whenever index moves upward or downward beyond the specified limits
a. Laddering
b. Cornering
c. Circuit breaking
d. Side by siding
Answer:
Q223. Unsecured debentures are also known as—-
a. Registered debentures
b. Bearer debentures
c. Naked debentures
d. Collateral debentures
Answer:
Q224. A speculator with a bullish view on a security can
a. buy stock futures
b. buy index futures
c. sell stock futures
d. sell index futures
Answer:
Q225. In the case of —- bonds, the value is inversely related to short term interest rates.
a. Fixed rate bonds
b. Inverse float bonds
c. Perpetual bonds
d. Option bonds
Answer:
Q226. “D vs. P” system for government securities market means
a. Delivery and payment settlement
b. Dividend and principal settlement
c. Dollar and Pound settlement
d. Delaying and postponement
Answer:
Q227. Non banking financial institutions (NBFIs) are registered under
a. RBI Act
b. Banking Regulation Act
c. Companies Act
d. SEBI Act
Answer:
Q228. According to IFRS, the term financial asset includes
a. Cash or Cash equivalent
b. Equity shares
c. Contractual right to receive cash
d. All the above
Answer:
Q229. Which of the following is /are example of primary or direct financial instrument
a. Fixed deposit receipt
b. Insurance policies
c. Mutual fund Unit
d. Debentures
Answer:
Q230. Which of the following is /are example of Secondary or indirect financial instrument
a. Equity shares
b. Preference shares
c. Post office saving deposit
d. Bonds
Answer:
Q231. A Non Banking Financial Institution
a. Can accept demand deposit
b. Can issue cheques to customers
c. Cannot accept fixed deposit
d. Cannot accept demand deposit and cannot issue cheques
Answer:
Q232. Kerala State Financial Enterprises ltd (KSFE) is an example of
a. Banking institution
b. Investment institution
c. NBFI
d. State level development banks
Answer:
Q233. UTI, LIC etc are examples of
a. Banking institution
b. Investment institution
c. NBFI
d. Development banks
Answer:
Q234. SFC is an example of
a. Banking institution
b. Investment institution
c. NBFI
d. Development Institution
Answer:
Q235. Which of the following is /are not regulatory institutions
a. RBI
b. SEBI
c. IRDA
d. IFCI
Answer:
Q236. Which of the following is not a negotiable instrument?
a. ADR
b. GDR
c. FDR
d. IDR
Answer:
Q237. ‘Follow on Public Offer’ is also known as
a. Further public offer
b. Seasoned public offer
c. Subsequent public offer
d. All of these.
Answer: