Online MCQ Assignment Answer

QN1: Formal merchant banking activity in India was originated in___.

a. 1967

b. 1968

c. 1969

d. 1961

Answer

Answer: c. 1969

QN2: Any change in flow of funds and the demand of them, is clearly reflected in

a. Money Market

b. Capital Marlet

c. Share Market

d. Insurance Market

Answer

Answer: a. Money Market

QN3: Lead merchant banker should advice the issuer to enter into — with a particular intermediary for the purpose of issue management.

a. Agreement

b. Petition

c. MOU

d. Writ

Answer

Answer: c. MOU

QN4: In India, merchant-banking activity was originated with the merchant banking division set up by the ___.

a. PNB

b. Grindlays Bank

c. SBI

d. RBI

Answer

Answer: b. Grindlays Bank

QN5: ___ operates in Inter-bank call money market.

a. Scheduled Banks

b. Private Banks

c. Public Banks

d. All

Answer

Answer: d. All

QN6: The number of lead merchant bankers may not exceed in case any issue of, issue size 200crore to 400crore.

a. 3

b. 4

c. 5

d. 6

Answer

Answer: c. 5

QN7: A merchant bank can help an organization specifically in promotional functions, —.

a. Sponsoring the Issue

b. Marketing

c. Both

d. None

Answer

Answer: c. Both

QN8: — is a financial intermediary who helps to mobilize and transfer capital from those who possess it to those who need it.

a. Venture Capital

b. Lease Finance

c. Merchant Banker

d. Hire Purchaser

Answer

Answer: a. Venture Capital

QN9: State Bank of India started merchant banking in ___

a. 1971

b. 1973

c. 1972

d. 1976

Answer

Answer: b. 1973

QN10: — is a long term risk capital to finance high technology projects which involve risk but at same time has strong potential for growth.

a. Lease Finance

b. Merchant Banker

c. Venture Capital

d. Hire Purchaser

Answer

Answer: c. Venture Capital

QN11: Secondary markets in treasury bills require involvement of ___ and ___

a. Brokers

b. Dealers

c. None

d. Both

Answer

Answer: d. Both

QN12: The first bank to set up a separate merchant banking division in India.

a. National & Grin days bank

b. PNB

c. SBI

d. HDFC

Answer

Answer: a. National & Grin days bank

QN13: The early growth of merchant banking in the country is assigned to th

a. FERA, 1973

b. FERA, 1975

c. FERA, 1979

d. None of these

Answer

Answer: a. FERA, 1973

QN14: Which of the following is not a fee-based financial service?

a. Lease Financing

b. Hire Purchase

c. Instalment

d. Advance

Answer

Answer: a. Lease Financing

QN15: Banks implement the RBI’s ___ policies.

a. Monetay

b. Credit

c. Both

d. None

Answer

Answer: c. Both

QN16: The term ‘Merchant Bank’ is used in:

a. US

b. India

c. Australia

d. UK

Answer

Answer: d. UK

QN17: — covers the entire range of services provided by a merchant banker.

a. Project Counselling

b. Corporate Counselling

c. Credit Ratings

d. Prospectus Issue

Answer

Answer: b. Corporate Counselling

QN18: Functions of financial services exclude —.

a. Leasing

b. Hire Purchase

c. Instalment

d. Collection of Taxes

Answer

Answer: d. Collection of Taxes

QN19: ___ is basically a savings and investment corporation.

a. LIC

b. UTI

c. HDFC

d. ICICI

Answer

Answer: b. UTI

QN20: Financial service companies exclude —.

a. Insurance Banks

b. Commercial Banks

c. Sole Propreitorship

d. Hire Purchaser

Answer

Answer: c. Sole Propreitorship

QN21: SFC, SIDC are … Lavelfinancial institutions?

a. Regional

b. National

c. State

d. Local

Answer

Answer: c. State

QN22: Financial services offered financing risk project e.g. Risk capital scheme of I F C I venture capital fund of I D F I etc. to provide —.

a. Venture Capital

b. Hire Purchase

c. Instalment

d. Advance

Answer

Answer: a. Venture Capital

QN23: Merchant bankers are

a. Merchants

b. Bankers

c. None

d. Both

Answer

Answer: c. None

QN24: Different enactments for raising funds from the capital market:

a. Companies Act

b. Income Tax Act

c. FERA, 1973

d. All

Answer

Answer: d. All

QN25: Categories of securities issue:

a. Public Issue

b. Right Issue

c. Private Placement

d. All

Answer

Answer: d. All

QN26: Category 1 merchant bankers can act as .

a. Advisor

b. Underwriter

c. Consultant

d. All

Answer

Answer: d. All

QN27: Merchant banker shall not associate with any business other than that of the securities market

a. TRUE

b. FALSE

c. None

d. All

Answer

Answer: a. TRUE

QN28: In simple terms, the management of issues for raising funds through various types of instruments by companies is known as …

a. Lead Management

b. Merchant Banking

c. Issue Management

d. Public Issue Management

Answer

Answer: c. Issue Management

QN29: The number of lead merchant bankers may not exceeds in case any issue of, issue size less than Rs.50crore,number of MBs —.

a. 1

b. 3

c. 2

d. 5

Answer

Answer: c. 2

QN30: Insurance is a —.

a. Instrument

b. Contract

c. Agreement

d. Ranking

Answer

Answer: c. Agreement

QN31: — is a method of renting assets.

a. Hire Purchase

b. Leasing

c. Hedge Finance

d. Credit Rating

Answer

Answer: b. Leasing

QN32: — is a financial intermediary who helps to mobilize and transfer capital from those who possess it to those who need it.

a. Hire Purchase

b. Leasing

c. Hedge Finance

d. Venture Capital

Answer

Answer: d. Venture Capital

QN33: The first nationalized bank in India to start a VCF —.

a. Canara

b. Dena

c. HDFC

d. PNB

Answer

Answer: a. Canara

QN34: The term ___ is defined as a central location for keeping securities on deposit.

a. Financial Services

b. Depository

c. Financial Markets

d. Financial Instruents

Answer

Answer: b. Depository

QN35: It is a process by which a demand for the securities proposed to be issued by a body corporate is elicited.

a. Book Building

b. Share Certificate

c. Promoter Issue

d. All

Answer

Answer: a. Book Building

QN36: The number of lead merchant bankers may not exceed in case any issue of, issue size 200crore to 400crore.

a. 3

b. 4

c. 5

d. 6

Answer

Answer: c. 5

QN37: The ___ is the apex organization in the Indian money market.

a. RBI (Reserve bank of India)

b. PNB

c. IOB

d. SBI

Answer

Answer: a. RBI (Reserve bank of India)

QN38: ___ is regarded as the fourth element of the financial system.

a. Financial Services

b. Financial Institutions

c. Financial Markets

d. Financial Instruents

Answer

Answer: a. Financial Services

QN39: Private placement covers:

a. Equity

b. Preference

c. Debentures

d. All

Answer

Answer: d. All

QN40: CRISIL has been promoted by …

a. ICICI

b. UTI

c. Both

d. None

Answer

Answer: c. Both