MCQOPTIONS
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MCQOPTIONS
This section includes 749 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
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» C. Stock exchange | |
| 452. |
Consider the following statements 1. Chit Funds are type of NBFC 2. All NBFCs are ruled by RBI 3. RBI said any purchase of a stake of 26% or more in a company, or a change in more than 30% of its directors, would need the central bank's permission. Which of the above statements is/are correct? |
| A. | 1,2 |
| B. | 2,3 |
| C. | 1,3 |
| D. | All |
| Answer» D. All | |
| 453. |
NIFTY is the index of |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | CSE |
| Answer» C. OTCEI | |
| 454. |
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» C. Pricing of security. | |
| 455. |
-------- is the suitable method where small companies issue shares |
| A. | Offer for sale |
| B. | Private placement |
| C. | Issue by prospectus |
| D. | All the above |
| Answer» B. Private placement | |
| 456. |
World bank was set up in ........................ |
| A. | 1945 |
| B. | 1946 |
| C. | 1947 |
| D. | 1948 |
| Answer» B. 1946 | |
| 457. |
……………………… market is a market for old issues. |
| A. | Money market |
| B. | Primary market |
| C. | Secondary market |
| D. | All the above |
| Answer» D. All the above | |
| 458. |
..................... issues does not bring in any fresh capital |
| A. | equity |
| B. | preference |
| C. | debenture |
| D. | bonus |
| Answer» E. | |
| 459. |
Financial markets serve which three purposes? |
| A. | Financial markets allow-risk sharing, pool and communicate information, and offer stability. |
| B. | Financial markets allow risk sharing, offer stability, and offer liquidity. |
| C. | Financial markets offer stability, pool and communicate information, and offer liquidity. |
| D. | Financial markets allow-risk sharing, pool and communicate information, and offer liquidity. |
| Answer» E. | |
| 460. |
Which of the following markets is sometimes organized as an over-the-counter market? |
| A. | The stock markets |
| B. | The bond markets |
| C. | The foreign exchange markets |
| D. | all of the above |
| Answer» E. | |
| 461. |
Cash is --------------asset |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» B. Non financial asset | |
| 462. |
..................... are short term deposits of specific maturity similar to fixed deposits. |
| A. | commercial paper |
| B. | Interbank participation certificate |
| C. | Repo |
| D. | Certificate of deposit |
| Answer» E. | |
| 463. |
ACE Derivatives Exchange Ltd is the commodity exchange developed in--------- |
| A. | America |
| B. | Australia |
| C. | Afghanistan |
| D. | None of these |
| Answer» E. | |
| 464. |
The main sources of financing for businesses, in order of importance,are |
| A. | financial intermediaries, issuing bonds, issuing stocks. |
| B. | issuing bonds, issuing stocks, financial intermediaries. |
| C. | issuing stocks, issuing bonds, financial intermediaries. |
| D. | issuing stocks, financial intermediaries, issuing bonds. |
| Answer» B. issuing bonds, issuing stocks, financial intermediaries. | |
| 465. |
In Capital market, ‘ESOP’ stands for |
| A. | Equity share option Plan |
| B. | Equity shares Option premium |
| C. | Employee stock Option Plan |
| D. | Equity Stock Option Plan |
| Answer» D. Equity Stock Option Plan | |
| 466. |
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» D. Spreading of equity cult. | |
| 467. |
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» D. None of the above | |
| 468. |
The ability of central banks to influence short-term interest rates rests upon: |
| A. | Government policy |
| B. | Their role as lenders of last resort |
| C. | Their supervisory role |
| D. | Sales of government bonds |
| Answer» C. Their supervisory role | |
| 469. |
The Headquarters of NMCE is ------------- |
| A. | New Delhi |
| B. | Ahmedabad |
| C. | Mumbai |
| D. | Calcutta |
| Answer» C. Mumbai | |
| 470. |
RBI started functioning on —————. |
| A. | 1-4-1935 |
| B. | 1-4-1948 |
| C. | 1-4-1882 |
| D. | 1-4-1945 |
| Answer» B. 1-4-1948 | |
| 471. |
Debt markets: |
| A. | are markets for money. |
| B. | are markets for bonds, loans, and mortgages. |
| C. | are markets for stocks. |
| D. | are markets for either stocks or bonds. |
| Answer» C. are markets for stocks. | |
| 472. |
Speculator who neither buy nor sell securities in the market, but still trade on them are called |
| A. | Wolves |
| B. | Stag |
| C. | Bull |
| D. | Bear |
| Answer» C. Bull | |
| 473. |
In financial markets, lenders typically have inferior information about potential returns and risks associated with any investment project. This difference in information is called |
| A. | comparative informational disadvantage. |
| B. | asymmetric information |
| C. | variant information. |
| D. | caveatvenditor. |
| Answer» C. variant information. | |
| 474. |
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» B. Commercial papers | |
| 475. |
LIC was established in........................ |
| A. | 1956 |
| B. | 1964 |
| C. | 1989 |
| D. | gcv1935 |
| Answer» B. 1964 | |
| 476. |
RBI is the lender of last resort for —————. |
| A. | Central Government |
| B. | State Governments |
| C. | Stock markets |
| D. | Commercial Banks |
| Answer» E. | |
| 477. |
Which of the following are primary markets? |
| A. | The New York Stock Exchange |
| B. | The U.S. government bond market |
| C. | The over-the-counter stock market |
| D. | None of the above |
| Answer» E. | |
| 478. |
SEBI has not been vested with the following powers: |
| A. | to approve by−laws of stock exchanges. |
| B. | to require the stock exchange to amend their by−laws. |
| C. | inspect the books of accounts and call for periodical returns from recognized stock exchanges. |
| D. | inspect the books of accounts of financial intermediaries. |
| Answer» C. inspect the books of accounts and call for periodical returns from recognized stock exchanges. | |
| 479. |
The device adopted to make profit out of price differences in two different markets |
| A. | Cornering |
| B. | Wash sales |
| C. | Rigging |
| D. | Arbitrage |
| Answer» E. | |
| 480. |
The first mutual fund was established in the: |
| A. | 1890s |
| B. | 1920s |
| C. | 1940s |
| D. | 1960s |
| Answer» E. | |
| 481. |
At present, the apex institution with regard to rural credit is |
| A. | RBI |
| B. | NABARD |
| C. | ARDC |
| D. | SBI |
| Answer» C. ARDC | |
| 482. |
Which of the following statements about the characteristics of debt and equity are true? |
| A. | They can both be long-term financial instruments. |
| B. | They both involve a claim on the issuer’s income. |
| C. | They both enable a corporation to raise funds. |
| D. | All of the above |
| Answer» E. | |
| 483. |
Which of the following can be described as involving indirect finance? |
| A. | A bank buys a U.S. Treasury bill from one of its depositors. |
| B. | A corporation buys commercial paper issued by another corporation. |
| C. | A pension fund manager buys commercial paper in the primary market. |
| D. | Both (B) and (C) of the above. |
| Answer» B. A corporation buys commercial paper issued by another corporation. | |
| 484. |
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» C. Transaction day | |
| 485. |
Finance companies |
| A. | are money market intermediaries. |
| Answer» E. | |
| 486. |
Which of the following instruments are traded in a capital market? |
| A. | U.S. government agency securities |
| B. | Negotiable bank CDs |
| C. | Repurchase agreements |
| D. | Eurodollars |
| Answer» B. Negotiable bank CDs | |
| 487. |
Government securities are issued through ---------‐‐‐‐ of RBI. |
| A. | public debt office |
| B. | sebi |
| C. | dfhi |
| D. | stock exchange |
| Answer» B. sebi | |
| 488. |
Equity shares with detachable warrants will enable the warrant holder to apply forspecified number of ------------‐‐‐‐ at determined price. |
| A. | preference shares |
| B. | equity shares |
| C. | bonds |
| D. | debentures |
| Answer» C. bonds | |
| 489. |
Government securities are also called ------------‐‐‐‐‐‐‐ because of the safety andsecurity of investments made in them and regularity of return. |
| A. | gift‐edged securities |
| B. | long term securities |
| C. | short term securities |
| D. | investments |
| Answer» B. long term securities | |
| 490. |
-------------‐‐‐‐ issued by the central government or state governments are referred toas government securities. |
| A. | instruments |
| B. | securities |
| C. | bonds |
| D. | shares |
| Answer» C. bonds | |
| 491. |
Bonds, debentures etc. are creditor ship securities, also known as -----------‐‐‐‐‐‐‐‐‐. |
| A. | debt capital |
| B. | capital stock |
| C. | working capital |
| D. | capital issue |
| Answer» B. capital stock | |
| 492. |
Equity shares and preference shares are ownership securities, also known as ---------------‐‐. |
| A. | debt capital |
| B. | capital stock |
| C. | fixed capital |
| D. | capital issue |
| Answer» C. fixed capital | |
| 493. |
Equity shares are the ----------‐‐‐‐‐‐ shares of a limited company |
| A. | voting |
| B. | ordinary |
| C. | limited |
| D. | unlimited |
| Answer» C. limited | |
| 494. |
SEBI stands for -----------‐‐‐‐‐‐‐. |
| A. | securities exchange board of india |
| B. | stock exchange board of india |
| C. | securities and exchange board of india |
| D. | stock earn board of india |
| Answer» D. stock earn board of india | |
| 495. |
Capital market is a market for ----------‐‐‐‐‐ capital. |
| A. | long term capital |
| B. | short term capital |
| C. | working capital |
| D. | fixed capital |
| Answer» B. short term capital | |
| 496. |
The ratio of financial assets is ---------‐‐‐‐‐‐‐‐‐‐ of economic growth. |
| A. | an indicator |
| B. | the market value |
| C. | the basis |
| D. | the prestige value |
| Answer» B. the market value | |
| 497. |
Most of the speculative purchases are made on the basis of ---------‐‐‐‐‐‐‐‐‐. |
| A. | margin trading |
| B. | arbitrage |
| C. | wash sale |
| D. | none of these |
| Answer» B. arbitrage | |
| 498. |
------------‐ gives the option holder a right to buy an underlying asset at an exerciseprice in future. |
| A. | call option |
| B. | put option |
| C. | call and put |
| D. | none of these |
| Answer» C. call and put | |
| 499. |
Agreed price of --------------‐‐‐ contract is known as strike price. |
| A. | future |
| B. | option |
| C. | swap |
| D. | none of these |
| Answer» B. option | |
| 500. |
A combination of forwards by 2 counter‐parties with opposite but matching need iscalled ------------------. |
| A. | swap |
| B. | forward |
| C. | future |
| D. | none of these |
| Answer» B. forward | |