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. |
The UTI was setup under an act of parliament in |
| A. | 1962 |
| B. | 1963 |
| C. | 1964 |
| D. | 1965 |
| Answer» D. 1965 | |
| 2. |
Money market instruments consist of |
| A. | CD’s |
| B. | CP’s |
| C. | MMMFS |
| D. | All of these |
| Answer» E. | |
| 3. |
The first SFC was established in |
| A. | Gujarat |
| B. | Punjab |
| C. | Haryana |
| D. | Uttar pradesh |
| Answer» C. Haryana | |
| 4. |
Process used by companies raising capital through IPO’s and FPO’s to aidprice and demand discovery |
| A. | ESOP |
| B. | Book building |
| C. | Bonus issue |
| D. | Euro issue |
| Answer» C. Bonus issue | |
| 5. |
SFC is created under an act in |
| A. | August 1952 |
| B. | September 1952 |
| C. | October 1952 |
| D. | November 1952 |
| Answer» B. September 1952 | |
| 6. |
-----is a form of protection against possible risk |
| A. | Banking |
| B. | Factoring |
| C. | Insurance |
| D. | Investment |
| Answer» D. Investment | |
| 7. |
--------pool resources from those who save and allocate them to variousinvestment opportunities |
| A. | Mutual funds |
| B. | LIC |
| C. | Banks |
| D. | RBI |
| Answer» B. LIC | |
| 8. |
---------bond is bought at a price below face value |
| A. | Coupon bond |
| B. | Floating rate bond |
| C. | Zero coupon bond |
| D. | PSU bond |
| Answer» D. PSU bond | |
| 9. |
Identify one which is not the segment in the debt market |
| A. | Primary market |
| B. | Capital market |
| C. | Secondary debt market |
| D. | Wholesale debt market segment. |
| Answer» C. Secondary debt market | |
| 10. |
Every scheduled bank is required to maintain a fixed percent of theirtime and demand deposit as |
| A. | SLR |
| B. | Bank rate |
| C. | CRR |
| D. | REPO |
| Answer» D. REPO | |
| 11. |
Failure of the opposite party to deliver the promised security |
| A. | Interest rate risk |
| B. | Default risk |
| C. | Counter party risk |
| D. | Price risk |
| Answer» D. Price risk | |
| 12. |
The initial share capital of NHB |
| A. | 100 crore |
| B. | 200 crore |
| C. | 50 crore |
| D. | 150 crore |
| Answer» B. 200 crore | |
| 13. |
In MMMFS the second and third ‘M’ consist of |
| A. | Money market |
| B. | Market mutual |
| C. | Mutual market |
| D. | Money mutual |
| Answer» C. Mutual market | |
| 14. |
-----is one that is available for subscription all through the year |
| A. | Open ended funds |
| B. | Close ended funds |
| C. | Stock fund |
| D. | Bond fund |
| Answer» B. Close ended funds | |
| 15. |
The authorised share capital of IFCI is Rs |
| A. | 50 crore |
| B. | 40 crore |
| C. | 30 crore |
| D. | 20 crore |
| Answer» E. | |
| 16. |
IFCI stands for |
| A. | Industrial finance corporation of India |
| B. | Industrial financial company of India |
| C. | Investment finance corporation of India |
| D. | Investment financial company of India |
| Answer» B. Industrial financial company of India | |
| 17. |
-----are instrument of short term borrowing by the govt of India, issuedas promissory notes under discount |
| A. | CD’S |
| B. | CP’S |
| C. | TB’S |
| D. | PC’S |
| Answer» D. PC’S | |
| 18. |
If a company issues additional securities, first it is offered to existingshare holders, it is known as |
| A. | Preferential right |
| B. | Right issue |
| C. | Private placement |
| D. | Underwriting |
| Answer» C. Private placement | |
| 19. |
ETF stands for |
| A. | Exchange traded funds |
| B. | Exchange traded facility |
| C. | Exchange traded forms |
| D. | Exchange traded finance. |
| Answer» B. Exchange traded facility | |
| 20. |
Companies are permitted to issue a new class of shares namednonvoting shares as per |
| A. | Sec 85 A |
| B. | Sec 84 A |
| C. | Sec 89 A |
| D. | Sec 86 A |
| Answer» E. | |
| 21. |
Long term loan market includes |
| A. | Term loan market |
| B. | Mortgage market |
| C. | Financial guarantee market |
| D. | All of these |
| Answer» E. | |
| 22. |
------ is an apex banking institution in the field of long term industrialfinance |
| A. | NABARD |
| B. | IDBI |
| C. | IFCI |
| D. | SIDBI |
| Answer» C. IFCI | |
| 23. |
-----is a dollar denominated form of equity ownership |
| A. | ADR |
| B. | GDR |
| C. | SDR |
| D. | USD |
| Answer» B. GDR | |
| 24. |
Identify one which is not the function of stock exchange |
| A. | Safety of funds |
| B. | Fair price determination |
| C. | Provide ready market |
| D. | Raising of capital |
| Answer» E. | |
| 25. |
In 2001 SEBI guidelines mandated a minimum level of public holding at----% for companies carrying out fresh IPO’s |
| A. | 23% |
| B. | 24% |
| C. | 25% |
| D. | 26% |
| Answer» D. 26% | |
| 26. |
A) a debenture is an acknowledgement of debt due by a company issued under a common seal B) bonus shares can be issued only out of free reserves built out of revenue profit or share premium collected in cash |
| A. | A is true B is false |
| B. | A is false B is true |
| C. | Both are true |
| D. | Both are false |
| Answer» D. Both are false | |
| 27. |
Kisan credit card is issued by |
| A. | RBI |
| B. | IDBI |
| C. | NABARD |
| D. | SIDBI |
| Answer» D. SIDBI | |
| 28. |
Indian companies are allowed to raise capital in the international marketthrough the issue of |
| A. | ADR |
| B. | GDR |
| C. | ADR & GDR |
| D. | None of these |
| Answer» D. None of these | |
| 29. |
A) NABARD is an apex development bank for agriculture and rural development B) NABARD has to perform dual function, the function of rbi and the function of ARDC |
| A. | Both are true |
| B. | Both are false |
| C. | A is true B is false |
| D. | A is false B is true |
| Answer» B. Both are false | |
| 30. |
The main source of guarantee in India are |
| A. | Personal guarantee |
| B. | Govt guarantee |
| C. | Institutional guarantee |
| D. | All of these |
| Answer» E. | |
| 31. |
---- is a short term usance promissory note with fixed maturity. |
| A. | CD’S |
| B. | CP’S |
| C. | TB’S |
| D. | PC’S |
| Answer» C. TB’S | |
| 32. |
NHB (national housing bank) established under the recommendation ofthe committee headed by |
| A. | Dr. Raguram rajan |
| B. | Dr. Narasimha rao |
| C. | Dr. Ranga rajan |
| D. | D. Subbarao |
| Answer» D. D. Subbarao | |
| 33. |
FERA was passed by the Govt of India in |
| A. | 1947 |
| B. | 1946 |
| C. | 1945 |
| D. | 1948 |
| Answer» B. 1946 | |
| 34. |
IBRD is also known as |
| A. | Reserve bank |
| B. | Scheduled bank |
| C. | Central bank |
| D. | World bank |
| Answer» E. | |
| 35. |
---------- is a receipt for a deposit of money with a bank or a financialinstitution |
| A. | CD’S |
| B. | CP’S |
| C. | TB’S |
| D. | PC’S |
| Answer» B. CP’S | |
| 36. |
---------is invest in shorter securities such as treasury bills |
| A. | Bond fund |
| B. | Money market funds |
| C. | Stock fund |
| D. | Equity funds |
| Answer» C. Stock fund | |
| 37. |
Identify public sector undertaking |
| A. | United India insurance |
| B. | HDFC life |
| C. | ICICI prudential |
| D. | Bharti Axa |
| Answer» B. HDFC life | |
| 38. |
Advantages of mutual funds include |
| A. | Liquidity |
| B. | Safety |
| C. | The diversification penalty |
| D. | A & B |
| Answer» E. | |
| 39. |
Market for short term funds usually for one year is called |
| A. | Capital market |
| B. | Money market |
| C. | Primary market |
| D. | Secondary market |
| Answer» C. Primary market | |
| 40. |
Income tax act was enacted in |
| A. | 1861 |
| B. | 1961 |
| C. | 1971 |
| D. | 1981 |
| Answer» C. 1971 | |
| 41. |
------is the first exchange for small companies |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | SEBI |
| Answer» D. SEBI | |
| 42. |
a bank that offers service to general public and to companies is called |
| A. | Reserve Bank |
| B. | Commercial bank |
| C. | Savings bank |
| D. | All of these |
| Answer» C. Savings bank | |
| 43. |
General insurance include |
| A. | Auto insurance |
| B. | Life insurance |
| C. | Both A& B |
| D. | None of these |
| Answer» B. Life insurance | |
| 44. |
Methods of floating capital from the primary markets are |
| A. | IPO |
| B. | Public issue |
| C. | New fund offer |
| D. | All the above |
| Answer» E. | |
| 45. |
At present India have two depositories namely |
| A. | NDSL & CSDL |
| B. | NSDL & CDSL |
| C. | SDNL & SDCL |
| D. | DLNS & SLCD |
| Answer» C. SDNL & SDCL | |
| 46. |
Expand NABARD |
| A. | National bank for agriculture and resource development |
| B. | National bank for agriculture and reconstruction and development |
| C. | National bank for agriculture and rural development |
| D. | Nationalized bank for agriculture and rural development |
| Answer» D. Nationalized bank for agriculture and rural development | |
| 47. |
------was founded in 1956 with the merger of 243 insurance companiesand provident societies |
| A. | LIC |
| B. | GIC |
| C. | RBI |
| D. | SBI |
| Answer» B. GIC | |
| 48. |
---------is the bankers bank |
| A. | Commercial bank |
| B. | RBI |
| C. | World bank |
| D. | IMF |
| Answer» C. World bank | |
| 49. |
Debentures can be issued |
| A. | at par |
| B. | at premium |
| C. | at discount |
| D. | All of these |
| Answer» E. | |
| 50. |
IDBI subsidiaries does not include |
| A. | ICMS |
| B. | IAML |
| C. | IMTCL |
| D. | IFCI |
| Answer» E. | |