401. It is used as an alternative to bank borrowing for large and creditworthy companies,
A. Commercial bill
B. Commercial papers
C. Call money
D. None of the above
Answer
C. Call money
402. It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.
A. Commercial bill
B. Commercial papers
C. Call money
D. None of the above
Answer
B. Commercial papers
403. A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
A. Expensive in comparison with banks who raise funds from these sources.
B. Cheaper in comparison with banks who raise funds from these sources.
C. Creates no effect on other sources.
D. None of the above
Answer
D. None of the above
404. It is a short-term, negotiable, self-liquidating instrument which is used to finance thecredit sales of firms.
A. Commercial bill
B. Commercial papers
C. Call money
D. None of the above
Answer
A. Commercial bill
405. The capital market consists of
A. Development banks
B. Commercial banks
C. Stock exchanges
D. All of the above
Answer
D. All of the above
406. A company can raise capital through the primary market in the form of
A. Equity shares
B. Preference shares
C. Debentures
D. All of the above
Answer
D. All of the above
407. They can be issued to individuals, corporations and companies during periods of tightliquidity when the deposit growth of banks is slow but the demand for credit is high.
A. Commercial papers
B. Call money
C. Commercial bill
D. Certificate of deposit
Answer
D. Certificate of deposit
408. Which of the following participants represent capital market?
A. Development banks
B. Commercial banks
C. Stock exchanges
D. All of the above
Answer
D. All of the above
409. Under this method of floatation in primary market, a subscription is invited from generalpublic to invest in the securities of a company through the issue of advertisement.
A. Private placement
B. Offer through prospectus
C. Offer for sale
D. All of the above
Answer
B. Offer through prospectus
410. PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ Rs. 9 each to Prosperous Bank Private Limited. The bank in turn will offer the shares to general public for subscription @ Rs. 11 per share. Identify the method of floatation being described in the given lines.
A. Private placement
B. Offer through prospectus
C. Offer for sale
D. Rights issue
Answer
C. Offer for sale
411. Jaykant is holding hundred shares of a company. He has been given a privilege offer to subscribe to a new issue of shares of the same company in proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
A. Offer through prospectus
B. Offer for sale
C. Rights issue
D. Private placement
Answer
C. Rights issue
412. Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.
A. Providing liquidity and marketability to existing securities.
B. Safety of transaction.
C. Pricing of security.
D. Spreading of equity cult.
Answer
C. Pricing of security.
413. Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.
A. Providing scope for speculation.
B. Providing liquidity and marketability to existing securities.
C. Pricing of security.
D. Spreading of equity cult.
Answer
B. Providing liquidity and marketability to existing securities.
414. The process of holding shares in electronic form is known as
A. Demutualisation
B. Dematerialisation
C. Speculation
D. None of the above
Answer
B. Dematerialisation
415. One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India
A. Regulatory function
B. Protective function
C. Developmental function
D. None of the above
Answer
A. Regulatory function
416. It acts like a bank and keeps securities in electronic form on behalf of the investor,
A. Depository Participant
B. Depository
C. Stock exchange
D. None of the above
Answer
B. Depository
417. It serves as an intermediary between the investor and the depository who is authorised tomaintain the accounts of dematerialised shares.
A. Depository Participant
B. Depository
C. Stock exchange
D. None of the above
Answer
A. Depository Participant
418. It is a number assigned to each transaction by the stock exchange and is printed on thecontract note.
A. PAN number
B. Unique Order Code
C. Contract Note
D. None of the above
Answer
B. Unique Order Code
419. Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange
A. Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order
B. Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order
C. Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order
D. Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order
Answer
C. Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order
420. The mandatory detail that an investor has to provide to the broker at the time of opening ademat account is
A. Date of birth and address
B. PAN number
C. Residential status (Indian/NRI)
D. Bank account details.
Answer
B. PAN number
421. It is a legally enforceable document which is issued by a stock broker within 24 hours ofthe execution of a trade order.
A. PAN number
B. Unique Order Code
C. Contract Note
D. None of the above
Answer
C. Contract Note
422. On this day, the exchange will deliver the share or make payment to the other broker,
A. Pay-in day
B. Pay-out day
C. Transaction day
D. None of the above
Answer
B. Pay-out day
423. When is a trade confirmation slip issued to the investor?
A. On placing an order
B. On execution of the order
C. On settlement of the order
D. None of the above
Answer
B. On execution of the order
424. After the trade has been executed, the broker issues a Contract Note to the investor within
A. 52 hours
B. 24 hours
C. 48 hours
D. 12 hours
Answer
B. 24 hours
425. SEBI has constituted a committee under TK Viswanathan for ___
A. Fair market conduct
B. Manufacturing market conduct
C. Partial market conduct
D. Both a and c
Answer
A. Fair market conduct
426. SEBI has launched an online registration system for?
A. REITs
B. InvITs
C. P-notes
D. Only a and b
Answer
D. Only a and b
427. Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?
A. Clearing Members
B. Brokers
C. NBFCs
D. Only a and b
Answer
D. Only a and b
428. What is the latest amendment to the FPI regulations by capital and commodities market regulator SEBI?
A. Barring Indians, NRIs and entities beneficially owned by NRIs from trading
B. Barring Indians, NRIs, and entities beneficially owned by NRIs from being owners of participatory notes
C. Barring Indians and NRIs from FDI in India
D. None of the above
Answer
B. Barring Indians, NRIs, and entities beneficially owned by NRIs from being owners of participatory notes
429. SEBI has allowed celebs to endorse which products?
A. Stocks and shares
B. Mutual funds
C. Dividends
D. Insurance
Answer
B. Mutual funds
430. SEBI announced plans to tighten regulations for which type of trading?
A. Spot trading
B. Investor trading
C. Algorithmic trading
D. None of the above
Answer
C. Algorithmic trading
431. Who has been appointed the new SEBI chief w.e.f March 1, 2017?
A. UK Sinha
B. Ajay Tyagi
C. Brijesh Mishra
D. None of the above
Answer
B. Ajay Tyagi
432. Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?
A. SEBI
B. RBI
C. NSE
D. BSE
Answer
A. SEBI
433. SEBI has relaxed investment rules for which funds?
A. Angel Funds
B. Mutual Funds
C. Debt Funds
D. None of the above
Answer
A. Angel Funds
434. SEBI has proposed a set of changes to relax rules and rename the institutional trading platform as what?
A. High Tech Start Up & Other New Business Platform
B. High Tech Incubation & Other New Business Platform
C. High Tech Innovation % Other New Business Platform
D. None of the above
Answer
A. High Tech Start Up & Other New Business Platform
435. ___ is a type of investment vehicle consisting of a portfolio of stocks, bonds, orother securities.
A. Government Securities
B. Mutual Funds
C. Derivatives
D. Shares
Answer
B. Mutual Funds
436. The value of one unit of investment in Mutual fund is called the ___
A. Net Asset Value
B. Issue value
C. Market value
D. Gross Asset value
Answer
A. Net Asset Value
