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
C. Facilitating import of goods
2. Which of the following is not an institutional credit rating agency in Indian financialsystem?
A. CRISIL
B. CIBIL
C. CARE
D. ICRA
Answer
B. CIBIL
3. ___ is regarded as “Hybrid securities”.
A. Equity shares
B. Preference shares
C. Debentures
D. Treasury bills
Answer
B. Preference shares
4. ___ represent claims for the payment of a sum of money sometimes in the futureand/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
C. Financial asset
5. SEBI was established in —————.
A. 1988
B. 1985
C. 1991
D. 1990
Answer
A. 1988
6. RBI started functioning on —————.
A. 1-4-1935
B. 1-4-1948
C. 1-4-1882
D. 1-4-1945
Answer
A. 1-4-1935
7. National Housing bank is a fully owned subsidiary of —————.
A. HDFC
B. HSBC
C. RBI
D. HUDCO
Answer
C. RBI
8. ___ has the statutory powers to regulate and promote the Indian capital market.
A. Registrar of issue
B. Merchant banks
C. SEBI
D. RBI
Answer
C. SEBI
9. Any company making a public issue of value of more than Rs. ———— is required to file adraft offer document with SEBI.
A. 100 lakh
B. 25 lakh
C. 50 lakh
D. 10 lakh
Answer
C. 50 lakh
10. ___ Committee was constituted by SEBI for deciding about derivatives trading.
A. L.C.Gupta
B. R. L. Gupta
C. Vaghul
D. Malhotra
Answer
A. L.C.Gupta
11. RBI is the lender of last resort for —————.
A. Central Government
B. State Governments
C. Stock markets
D. Commercial Banks
Answer
D. Commercial Banks
12. The market regulator of Indian Capital Market is ___
A. DFHI
B. RBI
C. SEBI
D. STCI
Answer
C. SEBI
13. ___ facilitate the transfer of funds from savers to the borrowers.
A. goods market
B. money market
C. financial market
D. consumer market
Answer
C. financial market
14. ___ market is a market for old issues.
A. Money market
B. Primary market
C. Secondary market
D. All the above
Answer
C. Secondary market
15. Which of the following is a financial asset
A. Gold
B. silver
C. share
D. Land.
Answer
C. share
16. Which of the following is a cash asset?
A. deposit created out of loans
B. share
C. bond
D. Post office certificate.
Answer
A. deposit created out of loans
17. Govt. bond is a
A. short term security
B. long term security
C. medium term security
D. Either a or b.
Answer
B. long term security
18. Money market deals with ___ instruments.
A. long term
B. short term
C. medium term
D. all of these.
Answer
B. short term
19. 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
A. call money market
20. ___ acts as an intermediary between Govt. and money market
A. RBI
B. SEBI
C. Commercial banks
D. All the above
Answer
A. RBI
21. ___ 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
B. supply bill
22. ___ 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
C. Treasury bill
23. ___ is a market for bankers’ acceptances
A. discount market
B. CDs market
C. Interbank participation market
D. Acceptance market
Answer
D. Acceptance market
24. Accommodation bills are also known as ___ bills
A. kite bills
B. wind bills
C. supply bill
D. both a & b
Answer
D. both a & b
25. Adhoc treasury bills are issued in favour of the ___ only
A. Treasury
B. RBI
C. Commercial banks
D. State government
Answer
B. RBI
26. ___ 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
D. Certificate of deposit
27. ___ is an unsecured short term promissory note issued by creditworthycompanies?
A. commercial pape
B. interbank participation certificate
C. Repo
D. Certificate of deposit
Answer
A. commercial pape
28. Discount and Finance House of India was set up in ___
A. 1982
B. 1988
C. 1992
D. 1969
Answer
B. 1988
29. 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
C. Vaghul
30. ___ has been set up mainly to provide a secondary market in Govt. Securities
A. DHFI
B. OTCEI
C. STCI
D. NSDL
Answer
C. STCI
31. Right shares are offered to ___
A. Debenture holders
B. Existing shareholders
C. List 2 contributories
D. Liquidators
Answer
B. Existing shareholders
32. ___ is the suitable method where small companies issue shares
A. public issue
B. placement
C. offer for sale
D. none of these
Answer
B. placement
33. ___ is a process of admitting securities for trading on a recognised stock exchange.
A. Registration
B. filing
C. listing
D. admission
Answer
C. listing
34. ___ is a preferential independent broker who deals in securities on his own behalf.
A. Jobber
B. sub broker
C. Remisiers
D. arbitragers
Answer
A. Jobber
35. 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
A. Badla
36. The device adopted to make profit out of the differences in prices of a security in to differentmarkets is called ___
A. Cornering
B. prise rigging
C. arbitrage
D. margin trading
Answer
C. arbitrage
37. The central depositary ___ the security on behalf of the investors
A. Hold
B. transfer
C. both a & b above
D. none of these
Answer
C. both a & b above
38. ___ of shares in the first step in the depository process
A. Registration
B. Listing
C. Rematting
D. immobilisation
Answer
D. immobilisation
39. ___ is the link between the depository and the owner
A. Agent
B. Depository participant
C. Beneficiary
D. Broker
Answer
B. Depository participant
40. ___ issues does not bring in any fresh capital
A. equity
B. preference
C. debenture
D. bonus
Answer
D. bonus
