MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
. ..................... is the link between the depository and the owner |
| A. | Agent |
| B. | Depository participant |
| C. | Beneficiary |
| D. | Broker |
| Answer» C. Beneficiary | |
| 2. |
The NSDL established in |
| A. | August 1996 |
| B. | August 1998 |
| C. | January 1996 |
| D. | January 1998 |
| Answer» B. August 1998 | |
| 3. |
Which of the following is not an institutional credit rating agency in Indian financialsystem? |
| A. | CRISIL |
| B. | CIBIL |
| C. | CARE |
| D. | ICRA |
| Answer» C. CARE | |
| 4. |
Right shares are offered to..................... |
| A. | Debenture holders |
| B. | Existing shareholders |
| C. | List 2 contributories |
| D. | Liquidators |
| Answer» C. List 2 contributories | |
| 5. |
Zero Coupon Bond is also known as |
| A. | Deep discount bond |
| B. | Irredeemable bond |
| C. | Bearer bond |
| D. | Zero Interest bond |
| Answer» B. Irredeemable bond | |
| 6. |
Clearing and settlement operations of NSE are carried out by: |
| A. | NSDL |
| B. | NSCCL |
| C. | SBI |
| D. | CDSL |
| Answer» C. SBI | |
| 7. |
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» D. Private placement | |
| 8. |
------------- is also known as Remisiers and Half-commission man |
| A. | Sub-broker |
| B. | Commission broker |
| C. | Authorised clerk |
| D. | Jobbers |
| Answer» B. Commission broker | |
| 9. |
Which of the following instruments is not traded in a money market? |
| A. | Banker’s acceptances |
| B. | U.S. Treasury Bills |
| C. | Eurodollars |
| D. | Residential mortgages |
| Answer» E. | |
| 10. |
--------- is the charges paid by a bull speculator to the other party for obtaining carry overfacility |
| A. | Backwardation |
| B. | Contango |
| C. | Spread |
| D. | Margin |
| Answer» C. Spread | |
| 11. |
_______ is a link between savers & borrowers, helps to establish a link between savers &investors |
| A. | Marketing |
| B. | Financial market |
| C. | Money market |
| D. | None of these |
| Answer» C. Money market | |
| 12. |
When the lender and the borrower have different amounts of information regarding a transaction,__________ |
| A. | asymmetric information |
| B. | adverse selection |
| C. | moral hazard |
| D. | fraud |
| Answer» B. adverse selection | |
| 13. |
In Indian Capital market, ‘BOLT’ stands for |
| A. | Borrowing or Lending Trade |
| B. | Bombay Online Trading |
| C. | Bond or Loan Transaction |
| D. | None of these |
| Answer» C. Bond or Loan Transaction | |
| 14. |
Gold is -----------asset |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» C. Fictitious asset | |
| 15. |
Which among the following is correct regarding BPLR or bench mark prime lending rate? |
| A. | It is lowest interest rate below PLR charged by a bank from the best customer of the financial year |
| B. | It is highest interest rate above PLR charged by a bank from the any customer of the financial year |
| C. | Both (a) & (b) |
| D. | None of the above |
| Answer» B. It is highest interest rate above PLR charged by a bank from the any customer of the financial year | |
| 16. |
A type of bank account designed to compete with money market mutual funds, and having limited check-writing services, is known as: |
| A. | wholesale CDs |
| B. | demand deposit |
| C. | repurchase agreement |
| D. | NOW account |
| Answer» B. demand deposit | |
| 17. |
If the public debt can be financed without adding to inflation or causing interest ratesto rise, it is said to be: |
| A. | only a burden on future generations. |
| B. | following the golden rule of the public finances. |
| C. | in primary balance. |
| D. | sustainable |
| Answer» E. | |
| 18. |
Bill Market Scheme in India was introduced in the year |
| A. | 1972 |
| B. | 1952 |
| C. | 1969 |
| D. | 1982 |
| Answer» C. 1969 | |
| 19. |
-----------work at making profits by taking advantage of discrepancy between prices of thesame product across different markets. |
| A. | Arbitragers |
| B. | Speculators |
| C. | Exchange |
| D. | Hedgers |
| Answer» B. Speculators | |
| 20. |
Govt. bond is a |
| A. | short term security |
| B. | long term security |
| C. | medium term security |
| D. | Either a or b. |
| Answer» C. medium term security | |
| 21. |
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» D. Mutual fund Company. | |
| 22. |
Indian Banks Association (IBA) has a common networking system for sharing the ATM facilities in Mumbai, which is known as |
| A. | ATM Network |
| B. | Shared Payment Network System |
| C. | Cash Network |
| D. | None of these |
| Answer» C. Cash Network | |
| 23. |
Centralized exchanges: |
| A. | are electronic systems that bring buyers and sellers together for electronic execution. |
| B. | are markets where claims based on an underlying asset are traded for payment at a later date. |
| C. | are markets where financial claims are bought and sold for immediate cash payment. |
| D. | are secondary markets where buyers and sellers meet in the same location. |
| Answer» E. | |
| 24. |
........................ assists mainly to industrial undertakings in the private sector |
| A. | IFCI |
| B. | IDBI |
| C. | ICICI |
| D. | SEBI |
| Answer» D. SEBI | |
| 25. |
Type of financial security which have linked payoff to another issued security is classified as |
| A. | linked security |
| B. | derivative security |
| C. | payable security |
| D. | non-issuing security |
| Answer» C. payable security | |
| 26. |
Adhoc T-bills are always issued in favour of-------- |
| A. | State government |
| B. | Commercial banks |
| C. | Treasuries |
| D. | RBI |
| Answer» E. | |
| 27. |
----------is the actual process of exchanging money and goods. |
| A. | Transfer |
| B. | Settlement |
| C. | Netting |
| D. | Clearing |
| Answer» C. Netting | |
| 28. |
..................... of shares in the first step in the depository process |
| A. | Registration |
| B. | Listing |
| C. | Rematting |
| D. | immobilisation |
| Answer» E. | |
| 29. |
As a part of the capital adequacy requirement, the base minimum capital prescribed by SEBI: |
| A. | varies from exchange to exchange. |
| B. | is based on the recommendations of the Kaul committee. |
| C. | is based on the recommendations of the Justice Bhagwati Committee. |
| D. | is the same across members of all exchanges. |
| Answer» B. is based on the recommendations of the Kaul committee. | |
| 30. |
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» E. | |
| 31. |
Which of the following is a characteristic feature of venture capital firms? |
| A. | Developing a portfolio of companies. |
| B. | Holding debt in the firms that are funded. |
| C. | Allowing firms to use the funds as they see fit. |
| D. | Having a short-term investment horizon. |
| Answer» B. Holding debt in the firms that are funded. | |
| 32. |
Discount and Finance House of India was set up in ..................... |
| A. | 1982 |
| B. | 1988 |
| C. | 1992 |
| D. | 1969 |
| Answer» C. 1992 | |
| 33. |
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» B. arbitrage | |
| 34. |
Which of the following sequences lists financial assets from lowest expected return tohighest expected return? |
| A. | Bonds, stocks, derivatives. |
| B. | Bonds, derivatives, stocks. |
| C. | Stocks, bonds, derivatives. |
| D. | Derivatives, stocks, bonds. |
| Answer» B. Bonds, derivatives, stocks. | |
| 35. |
In the loanable fund’s theory of interest determination, an increase in the productivity ofcapital equipment should lead to: |
| A. | A reduction in the amount of saving |
| B. | More employment |
| C. | Higher interest rates |
| D. | Higher prices |
| Answer» D. Higher prices | |
| 36. |
..................... 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» D. Any of the above | |
| 37. |
The commercial paper issued with low interest rate thus the commercial paper is categorized as |
| A. | payables rating |
| B. | commercial rating |
| C. | poor credit rating |
| D. | better credit rating |
| Answer» E. | |
| 38. |
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» C. Contract Note | |
| 39. |
Every financial market has the following characteristic: |
| A. | It determines the level of interest rates. |
| B. | It allows common stock to be traded. |
| C. | It allows loans to be made. |
| D. | It channels funds from lenders-savers to borrowersspenders. |
| Answer» E. | |
| 40. |
The type of risk in which the value of liabilities and assets is affected by the exchange rate is classified a |
| A. | economic rates |
| B. | foreign exchange risk |
| C. | selling rate |
| D. | buying rates |
| Answer» C. selling rate | |
| 41. |
What is used to quote the rates on Eurodollar deposits? |
| A. | Discount rate. |
| B. | Federal funds rate. |
| C. | Repo rate. |
| D. | LIBOR. |
| Answer» E. | |
| 42. |
The largest depository institution at the end of 2001 was |
| A. | life insurance companies. |
| B. | pension funds. |
| C. | state retirement funds. |
| D. | none of the above. |
| Answer» E. | |
| 43. |
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» C. On settlement of the order | |
| 44. |
The internal rate of return is: |
| A. | the interest rate at which money is borrowed for investment. |
| B. | the interest that allows a profit. |
| C. | profit divided by investment amount. |
| D. | the interest rate that equates the present value of an investment with its cost. |
| Answer» E. | |
| 45. |
Who issues a treasury bill? |
| A. | Any nationalised bank |
| B. | Any private sector bank |
| C. | Reserve Bank of India |
| D. | All of the above |
| Answer» B. Any private sector bank | |
| 46. |
Merchant banks in India started in |
| A. | 1955 |
| B. | 1969 |
| C. | 1972 |
| D. | 1992 |
| Answer» C. 1972 | |
| 47. |
The real interest rate: |
| A. | is the nominal interest rate + inflation. |
| B. | greater than the nominal interest rate when inflation is greater than0. |
| C. | is the interest rate expressed in current dollar terms. |
| D. | is the inflation adjusted interest rate. |
| Answer» E. | |
| 48. |
Unit of trading for Wheat at NCDEX is--------- |
| A. | 1 MT |
| B. | 3 MT |
| C. | 1 kg |
| D. | 10 MT |
| Answer» E. | |
| 49. |
The allocated function is performed by |
| A. | Financial market |
| B. | Capital market |
| C. | Money market |
| D. | All of the above |
| Answer» E. | |
| 50. |
Suppose an investor purchases a 91 days Treasury bill with a face value of ₹2,00,000 for ₹1,92,000. By holding the bill until the maturity date, the investor receives ₹2,00,000. What is the amount of interest received by him? |
| A. | ₹8,000 |
| B. | ₹80,000 |
| C. | ₹3,92,000 |
| D. | ₹2,00,000 |
| Answer» C. ₹3,92,000 | |