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. |
Members of commodity market can opt to meet the security deposit requirement by way of ----------- |
| A. | Cash |
| B. | Bank Guarantee |
| C. | Fixed Deposit Receipts |
| D. | All of the above |
| Answer» E. | |
| 2. |
Which of the following statements about financial markets and securities are true? |
| A. | Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the |
| B. | New York Stock Exchange. |
| C. | A corporation acquires new funds only when its securities are sold in the primary market. |
| D. | Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid. |
| Answer» E. | |
| 3. |
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» D. None of the above | |
| 4. |
...............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» C. Bearer bond | |
| 5. |
National Housing bank is a fully owned subsidiary of —————. |
| A. | HDFC |
| B. | HSBC |
| C. | RBI |
| D. | HUDCO |
| Answer» D. HUDCO | |
| 6. |
Intermediaries who are agents of investors and match buyers with sellers of securities are called |
| A. | investment bankers. |
| B. | traders |
| C. | brokers |
| D. | dealers. |
| Answer» E. | |
| 7. |
----------- is called as “Real Theory of Interest” |
| A. | Classical theory |
| B. | Neo-classical theory |
| C. | Demand and Supply theory |
| D. | Productivity theory |
| Answer» B. Neo-classical theory | |
| 8. |
In the year 2018 NMCE merged with ----------- |
| A. | UCX |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» D. NCDEX | |
| 9. |
Which of the following is a capital market security? |
| A. | Treasury bills. |
| B. | Federal funds. |
| C. | Federal agency bonds. |
| D. | Eurodollars. |
| Answer» D. Eurodollars. | |
| 10. |
When securities are allotted to institutional investors & some selected individuals isreferred to as _________. |
| A. | Initial public offer |
| B. | Offer through prospectus |
| C. | Private placement |
| D. | Offer for sale |
| Answer» D. Offer for sale | |
| 11. |
A bond whose coupon rate is below the current market rate of interest will have a price: |
| A. | more than its maturity value of Rs.100. |
| B. | less than its maturity value. |
| C. | equal to its maturity value |
| D. | none |
| Answer» D. none | |
| 12. |
FMC merged with SEBI in the year------------ |
| A. | 1994 |
| B. | 2008 |
| C. | 2015 |
| D. | 2016 |
| Answer» D. 2016 | |
| 13. |
When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _ is said to exist. |
| A. | asymmetric information |
| B. | adverse selection |
| C. | moral hazard |
| D. | fraud |
| Answer» C. moral hazard | |
| 14. |
The reason that finding the present value of a future sum of money requires us to discountit, is that: |
| A. | Inflation will reduce its purchasing power |
| B. | We can’t be certain of receiving it |
| C. | We don’t know when we shall receive it |
| D. | Waiting deprives us of its use |
| Answer» E. | |
| 15. |
Which of the following are long-term financial instruments? |
| A. | A negotiable certificate of deposit |
| B. | A banker’s acceptance |
| C. | A U.S. Treasury bond |
| D. | A U.S. Treasury bill |
| Answer» D. A U.S. Treasury bill | |
| 16. |
Bills drawn and accepted payable after three months are called |
| A. | Usance bills |
| B. | T-bills |
| C. | Clean bills |
| D. | Supply bills |
| Answer» B. T-bills | |
| 17. |
In ------------ NSE and BSE launched trading in commodities. |
| A. | 2016 |
| B. | 2017 |
| C. | 2018 |
| D. | 2015 |
| Answer» D. 2015 | |
| 18. |
…………………… facilitate the transfer of funds from savers to the borrowers. |
| A. | goods market |
| B. | money market |
| C. | financial market |
| D. | consumer market |
| Answer» D. consumer market | |
| 19. |
In a private placement the maximum number of investors shall not exceed |
| A. | 51 |
| B. | 49 |
| C. | 100 |
| D. | 25 |
| Answer» C. 100 | |
| 20. |
Adhoc treasury bills are issued in favour of the ..................... only |
| A. | Treasury |
| B. | RBI |
| C. | Commercial banks |
| D. | State government |
| Answer» C. Commercial banks | |
| 21. |
The function of a financial system is to |
| A. | establish a link between savers and investors |
| B. | link commercial banks with the Central Bank of a country |
| C. | create regulators for influencing the intermediaries |
| D. | help traders and moneylenders in the capital market |
| Answer» B. link commercial banks with the Central Bank of a country | |
| 22. |
Statutory regulation is likely to create larger compliance costs than self-regulation because: |
| A. | self-regulation does not involve lawyers and the courts. |
| B. | consumers are better able to assess risk under self-regulation. |
| C. | statutory regulators are often over-cautious. |
| D. | statutory regulation is controlled by consumers. |
| Answer» D. statutory regulation is controlled by consumers. | |
| 23. |
The capital market consists of |
| A. | Development banks |
| B. | Commercial banks |
| C. | Stock exchanges |
| D. | All of the above |
| Answer» E. | |
| 24. |
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» B. Manufacturing market conduct | |
| 25. |
Another name used for a bank income statement is: |
| A. | report of income |
| B. | statement of retained earnings |
| C. | overhead efficiency report |
| D. | report of condition |
| Answer» E. | |
| 26. |
--------------is also known as “G.Secs” |
| A. | Gold Traded Fund (GTF) |
| B. | General Securities |
| C. | Govt. Securities |
| D. | Growth oriented fund |
| Answer» D. Growth oriented fund | |
| 27. |
The market regulator of Indian Capital Market is …………… |
| A. | DFHI |
| B. | RBI |
| C. | SEBI |
| D. | STCI |
| Answer» D. STCI | |
| 28. |
SEBI operates to fulfill the needs of these three groups, choose the one which is not in those three: |
| A. | the issuers of securities |
| B. | the police |
| C. | the investors |
| D. | the market intermediaries |
| Answer» C. the investors | |
| 29. |
Financial markets have the basic function of |
| A. | bringing together people with funds to lend and people who want to borrow funds. |
| B. | assuring that the swings in the business cycle are less pronounced. assuring that governments need never resort to printing money. |
| C. | both (A) and (B) of the above. |
| D. | both (B) and (C) of the above. |
| Answer» B. assuring that the swings in the business cycle are less pronounced. assuring that governments need never resort to printing money. | |
| 30. |
In India, indigenous bills popularly known as |
| A. | Time bills |
| B. | Hundis |
| C. | Trade bills |
| D. | Sight bills |
| Answer» C. Trade bills | |
| 31. |
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» C. Residential status (Indian/NRI) | |
| 32. |
Which of the following statements is not true with regard to Commercial paper? |
| A. | Is a long-term unsecured promissory note with a fixed maturity period. |
| B. | It usually has a maturity period of 15 days to one year. |
| C. | It is sold at a discount and redeemed at par. |
| D. | Companies use this instrument for bridge financing. |
| Answer» B. It usually has a maturity period of 15 days to one year. | |
| 33. |
The process of holding the entire supply of a particular security with a view to dictating termsis called |
| A. | Cornering |
| B. | Wash sales |
| C. | Rigging |
| D. | Arbitrage |
| Answer» B. Wash sales | |
| 34. |
Who propounded liquidity preference theory of interest? |
| A. | Prof.Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» D. JB Clark | |
| 35. |
SEBI signs MoUs with different country’s financial jurisdictions who are not a signatory to the multilateral MoU of International Organization of Securities Commissions (IOSCO). |
| A. | True |
| B. | False |
| C. | all |
| D. | none |
| Answer» C. all | |
| 36. |
........................ is the first development financial institution in India. |
| A. | IDBI |
| B. | ICICI |
| C. | IFCI |
| D. | RBI |
| Answer» D. RBI | |
| 37. |
When sales of securities are more than purchases of securities, the market is called |
| A. | Bullish |
| B. | Bearish |
| C. | Grey |
| D. | Odd |
| Answer» C. Grey | |
| 38. |
Which of the following is not a function of SEBI: |
| A. | Development of the Securities market |
| B. | Investor Protection |
| C. | Making the Rules and Regulation for the securities market |
| D. | Framing policies for central government operations |
| Answer» C. Making the Rules and Regulation for the securities market | |
| 39. |
Demand bills are also known as |
| A. | Time bills |
| B. | Sight bills |
| C. | Kite bills |
| D. | Wind bills |
| Answer» C. Kite bills | |
| 40. |
————— has the statutory powers to regulate and promote the Indian capital market. |
| A. | Registrar of issue |
| B. | Merchant banks |
| C. | SEBI |
| D. | RBI |
| Answer» D. RBI | |
| 41. |
Transaction cost of trading of financial instruments in centralized market is classified as |
| A. | flexible costs |
| B. | low transaction costs |
| C. | high transaction costs |
| D. | constant costs |
| Answer» C. high transaction costs | |
| 42. |
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» E. | |
| 43. |
................ 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» E. | |
| 44. |
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» C. right issue | |
| 45. |
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» C. Barring Indians and NRIs from FDI in India | |
| 46. |
Debt and equity markets: |
| A. | are markets where financial claims are bought and sold for immediate cash payments. |
| B. | are decentralized secondary markets where dealers stand ready to buy and sell securities electronically. |
| C. | are markets where newly issued securities are so |
| Answer» B. are decentralized secondary markets where dealers stand ready to buy and sell securities electronically. | |
| 47. |
————— Committee was constituted by SEBI for deciding about derivatives trading. |
| A. | L.C.Gupta |
| B. | R. L. Gupta |
| C. | Vaghul |
| D. | Malhotra |
| Answer» B. R. L. Gupta | |
| 48. |
Money Market mutual fund is also known as--------------- |
| A. | Growth fund |
| B. | Balanced fund |
| C. | Income fund |
| D. | Cash fund |
| Answer» D. Cash fund | |
| 49. |
IMF commenced financial operation on........................ |
| A. | 1945 |
| B. | 1946 |
| C. | 1947 |
| D. | 1948 |
| Answer» D. 1948 | |
| 50. |
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» C. leasing | |