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.
| 201. |
According to the Fisher hypothesis, the nominal rate of interest consists of: |
| A. | A stable real rate plus a variable risk premium |
| B. | A real rate plus a liquidity premium plus a risk premium |
| C. | A stable real rate plus a variable inflation premium |
| D. | An inflation premium plus a liquidity premium |
| Answer» D. An inflation premium plus a liquidity premium | |
| 202. |
A company can raise capital through the primary market in the form of |
| A. | Equity shares |
| B. | Preference shares |
| C. | Debentures |
| D. | All of the above |
| Answer» E. | |
| 203. |
SENSEX is the index of |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | CSE |
| Answer» B. NSE | |
| 204. |
————— fund invests in highly liquid securities like commercial paper. |
| A. | Open ended fund |
| B. | Close ended fund |
| C. | Balanced fund |
| D. | MMMF |
| Answer» E. | |
| 205. |
Regulatory body of commodity market in India is------------- |
| A. | FMC |
| B. | NCX |
| C. | ICE |
| D. | ICRA |
| Answer» B. NCX | |
| 206. |
........... is a product whose value is derived from the value of underlying asset |
| A. | Repo |
| B. | T-bills |
| C. | G.sec |
| D. | Derivatives |
| Answer» E. | |
| 207. |
Which of the following are securities? |
| A. | A certificate of deposit |
| B. | A share of Texaco common stock |
| C. | A Treasury bill |
| D. | All of the above |
| Answer» E. | |
| 208. |
................... are drawn by contractors on the Govt. departments for the goods supplied to them |
| A. | treasury bills |
| B. | supply bill |
| C. | bill of lading |
| D. | documentary bill |
| Answer» C. bill of lading | |
| 209. |
Which of the following types of assets is least risky? |
| A. | Short-term corporate bonds |
| B. | Long-term corporate bonds. |
| C. | Stocks. |
| D. | Options and futures. |
| Answer» B. Long-term corporate bonds. | |
| 210. |
Using a supply and demand framework, what is likely to happen to share prices in general if the central bank raises interest rates in response to a fall in the exchange rate? |
| A. | The supply curve shifts to the left. |
| B. | No changes. |
| C. | Both curves shift inwa |
| Answer» C. Both curves shift inwa | |
| 211. |
UTI was set up in the year ........................ |
| A. | 1956 |
| B. | 1964 |
| C. | 1969 |
| D. | 1948 |
| Answer» C. 1969 | |
| 212. |
SEBI was established in —————. |
| A. | 1988 |
| B. | 1985 |
| C. | 1991 |
| D. | 1990 |
| Answer» B. 1985 | |
| 213. |
The market for extremely short period loan is called..................... |
| A. | call money market |
| B. | money at short notice |
| C. | T-bill market |
| D. | G-sec market |
| Answer» B. money at short notice | |
| 214. |
The first bank in India to start factoring business is |
| A. | Canara bank |
| B. | SBI |
| C. | Punjab National Bank |
| D. | Allahabad Bank. |
| Answer» C. Punjab National Bank | |
| 215. |
The market for extremely short period loan is called |
| A. | Call loan market |
| B. | short notice market |
| C. | treasury bill market |
| D. | commercial bill market |
| Answer» B. short notice market | |
| 216. |
In India, forfaiting services are offered by |
| A. | RBI |
| B. | SBI |
| C. | EXIM bank |
| D. | All the above |
| Answer» D. All the above | |
| 217. |
Which of the following is not a characteristic of a financial instrument? |
| A. | The financial instrument is always issued by a bank. |
| B. | A financial instrument is a written legal obligation of one party to transfer something of value, usually money. |
| C. | The transaction in a financial instrument is specified to take place at a future date. |
| D. | A financial instrument specifies certain conditions. |
| Answer» B. A financial instrument is a written legal obligation of one party to transfer something of value, usually money. | |
| 218. |
Which of the following are not investment intermediaries? |
| A. | A life insurance company |
| B. | A pension fund |
| C. | A mutual fund |
| D. | Only (A) and (B) of the above |
| Answer» E. | |
| 219. |
__________ is the organisations, institutions that provide long term funds. |
| A. | Capital market |
| B. | Money market |
| C. | Primary market |
| D. | Secondary market |
| Answer» B. Money market | |
| 220. |
It is a legally enforceable document which is issued by a stock broker within 24 hours ofthe execution of a trade order. |
| A. | PAN number |
| B. | Unique Order Code |
| C. | Contract Note |
| D. | None of the above |
| Answer» D. None of the above | |
| 221. |
Which of the following types of financial assets represents a creditor relationship with anentity? |
| A. | Stocks. |
| B. | Options. |
| C. | Futures. |
| D. | Bonds. |
| Answer» E. | |
| 222. |
Daily mark to market settlement is done ------------ |
| A. | Till the date of contract expiry |
| B. | As long as the contract makes a loss |
| C. | On the last day of week |
| D. | On the last trading day of the month |
| Answer» B. As long as the contract makes a loss | |
| 223. |
-------- is a guarantee for marketability of shares |
| A. | Listing |
| B. | Underwriting |
| C. | Registration |
| D. | Issue by prospectus |
| Answer» C. Registration | |
| 224. |
........................ is an apex institution to coordinate, supplement and integrate theactivities of all existing specialised financial institutions. |
| A. | IFCI |
| B. | IDBI |
| C. | RBI |
| D. | SEBI |
| Answer» C. RBI | |
| 225. |
___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds, orother securities. |
| A. | Government Securities |
| B. | Mutual Funds |
| C. | Derivatives |
| D. | Shares |
| Answer» C. Derivatives | |
| 226. |
Which of the following increases the value of a financial instrument? |
| A. | smaller payments. |
| B. | payments made further in the future. |
| C. | payments that are made when we need them. |
| D. | payments that are less likely to be made. |
| Answer» D. payments that are less likely to be made. | |
| 227. |
If intrinsic value of an option is $450 and price of an option is $560 then time value of anoption is |
| A. | $110 |
| B. | $1,010 |
| C. | $450.00 |
| D. | $560 |
| Answer» B. $1,010 | |
| 228. |
According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | Classical theory |
| Answer» E. | |
| 229. |
At present how many national commodity exchanges are operating in India? |
| A. | 8 |
| B. | 7 |
| C. | 6 |
| D. | 10 |
| Answer» D. 10 | |
| 230. |
While hedging through interest rate futures reduces or eliminates the risk of loss, it also |
| A. | is illegal in some cases. |
| B. | has not been accepted by most corporate financial managers. |
| C. | eliminates the possibility of an abnormal gain. |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 231. |
Gilt Edged Securities are |
| A. | Govt. Securities |
| B. | Company’s securities |
| C. | Any of the above |
| D. | None of these |
| Answer» B. Company’s securities | |
| 232. |
The declining profits made banks to undertake the business of: |
| A. | Merchant banking |
| B. | Mutual funds |
| C. | Venture capital |
| D. | all of the above |
| Answer» E. | |
| 233. |
Call money is a loan given for a period of |
| A. | 15 days |
| B. | 30 days |
| C. | 1 day |
| D. | 1 year |
| Answer» D. 1 year | |
| 234. |
Prospectus is not issued in |
| A. | public issue |
| B. | private placement |
| C. | right issue |
| D. | none the above |
| Answer» C. right issue | |
| 235. |
..................... is a preferential independent broker who deals in securities on his own behalf. |
| A. | Jobber |
| B. | sub broker |
| C. | Remisiers |
| D. | arbitragers |
| Answer» B. sub broker | |
| 236. |
NCDEX stands for------------------- |
| A. | National Commodity Development Exchange |
| B. | National Commodity and Derivatives Exchange |
| C. | Natural Commodity and Development Exchange |
| D. | None of these |
| Answer» C. Natural Commodity and Development Exchange | |
| 237. |
One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India |
| A. | Regulatory function |
| B. | Protective function |
| C. | Developmental function |
| D. | None of the above |
| Answer» B. Protective function | |
| 238. |
The difference between a primary market and a secondary market is |
| A. | primary market is the stock market and secondary market is the market for second hand sale of securities |
| B. | a primary market helps in long-term credit and secondary market offers short-term credit |
| C. | a primary market helps in the issue of new securities those which are offered for the first time and the secondary market is for second hand sale of securities listed on the stock exchange |
| D. | a primary market is the unorganized sector and the secondary market is the organized sector for sale and purchase of securities. |
| Answer» D. a primary market is the unorganized sector and the secondary market is the organized sector for sale and purchase of securities. | |
| 239. |
Which of the following in India is an exchange bank? |
| A. | ICICI bank |
| B. | CITI bank |
| C. | EXIM bank |
| D. | UCO bank |
| Answer» C. EXIM bank | |
| 240. |
Stock exchange is known as __________ market for securities. |
| A. | Primary market |
| B. | Secondary market |
| C. | Capital market |
| D. | None of the above |
| Answer» C. Capital market | |
| 241. |
An issue of a minimum size of Rs. ..................... crore is a mega issue |
| A. | 50 |
| B. | 100 |
| C. | 150 |
| D. | 300 |
| Answer» C. 150 | |
| 242. |
Which of the following is a financial asset |
| A. | Gold |
| B. | silver |
| C. | share |
| D. | Land. |
| Answer» D. Land. | |
| 243. |
The year of establishment of National Multi- Commodity Exchange (NMCE) was--------- |
| A. | 2002 |
| B. | 2003 |
| C. | 2004 |
| D. | 2005 |
| Answer» B. 2003 | |
| 244. |
After the trade has been executed, the broker issues a Contract Note to the investor within |
| A. | 52 hours |
| B. | 24 hours |
| C. | 48 hours |
| D. | 12 hours |
| Answer» C. 48 hours | |
| 245. |
Which financial body has asked intermediaries and companies to make regulatory payments in digital mode? |
| A. | SEBI |
| B. | RBI |
| C. | NSE |
| D. | BSE |
| Answer» B. RBI | |
| 246. |
When purchases of securities are more than sales of securities, the market is called |
| A. | Bullish |
| B. | Bearish |
| C. | Grey |
| D. | Odd |
| Answer» B. Bearish | |
| 247. |
Which of the following statements is not true with regard to Treasury bills? |
| A. | Are issued in the form of a promissory note. |
| B. | They are highly liquid and have assured yield |
| C. | They carry high risk of default. |
| D. | They are available for a minimum amount of ₹25,000 and in multiples thereof. |
| Answer» D. They are available for a minimum amount of ₹25,000 and in multiples thereof. | |
| 248. |
The government regulates financial markets for three main reasons: |
| A. | to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors. |
| B. | to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors. |
| C. | to ensure that financial intermediaries do not earn more than the normal rate of return, to ensure soundness of the financial system, and to improve control of monetary policy. |
| D. | to ensure soundness of financial intermediaries, to increase the information available to investors, and to prevent financial intermediaries from earning less than the normal rate of return. |
| Answer» B. to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors. | |
| 249. |
A typical venture capital firm has a ______ number of investors who eachcontribute a ______ amount of money to the fund. |
| A. | large; small |
| B. | small; large |
| C. | large; large |
| D. | small; small |
| Answer» C. large; large | |
| 250. |
The idea of providing factoring services in India was first thought by ————— |
| A. | Vaghul committee |
| B. | Malhotra Committee |
| C. | Tanden Committee |
| D. | None of these |
| Answer» B. Malhotra Committee | |