MCQOPTIONS
Saved Bookmarks
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. |
Non-convertible debentures are [IBPS PO 2012] |
| A. | debt instruments which acquire equity 'status at the issuers' option |
| B. | debt instruments which acquire equity status at the investors option |
| C. | debt instruments which acquire equity status with the permission of Registrar of Companies |
| D. | debt instruments which acquire equity status on maturity |
| E. | debt instruments which retain their debt character and cannot acquire equity status |
| Answer» F. | |
| 2. |
Which of the following is not a component or India's securities market? [Andhra Bank 2011] |
| A. | Commodity futures |
| B. | Small savings in national saving certificates |
| C. | Government bonds |
| D. | Corporate equity |
| E. | Derivatives on currency |
| Answer» B. Small savings in national saving certificates | |
| 3. |
Money that a government has required to be accepted in settlement of debts is |
| A. | barter money |
| B. | commodity money |
| C. | legal tender |
| D. | currency value |
| E. | None of these |
| Answer» D. currency value | |
| 4. |
Which of the following bodies promoted Securities Trading Corporation of India Limited (STCI) jointly with the public sector banks? [Indian Overseas Bank 2011] |
| A. | SEBI |
| B. | ICICI Limited |
| C. | IDBI Limited |
| D. | RBI |
| E. | IRDA |
| Answer» E. IRDA | |
| 5. |
SEBI is a/an [Indian Overseas Bank 2011] |
| A. | advisory body |
| B. | statutory body |
| C. | constitutional body |
| D. | non-statutory body |
| E. | registered as a society |
| Answer» C. constitutional body | |
| 6. |
Many times, we read in newspapers that a company is planning to bring a public issue. What does it mean? [Syndicate Bank 2011] I. Shares of the company will be issued only through public sector organisations like banks/central financial institutions etc. II. Shares of the company will be issued to general public only through primary market. III. This means some stakeholders/promoters are willing to leave company. Hence, they wish to sell their stock to the general public. Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Only III |
| D. | All of these |
| E. | None of these |
| Answer» C. Only III | |
| 7. |
Many times, we read about future trading in newspapers. What is 'future trading'? I. It is nothing but a trade between any two stock exchanges, wherein it is decided to purchase the stocks of each other on a fixed price throughout the year. II. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price. III. It is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time. Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Only III |
| D. | II and III |
| E. | None of these |
| Answer» C. Only III | |
| 8. |
Choose the correct statements. I. Treasury bills are money market instruments. II. Commercial Bill is a short term, negotiable and self-liquidating instrument with low risk. III. Treasury bills are issued by the Central Government to secure short term loans. Codes |
| A. | Only II |
| B. | II and III |
| C. | I and II |
| D. | I, II and III |
| E. | I and III |
| Answer» E. I and III | |
| 9. |
Consider the following statements. I. Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia. II. BSE was established in 1875. III. BSE was corporatised and renamed BSE limited in 2005. Which is/are correct? |
| A. | Only III |
| B. | I and III |
| C. | II and III |
| D. | I and II |
| E. | I, II and III |
| Answer» F. | |
| 10. |
Choose the correct statements. I. The small coins of 50 paise is legal tender money. II. Legal tender money is enforced by law. III. Limited legal tender money is accepted only upon a certain limit. Codes |
| A. | Only II |
| B. | I and II |
| C. | I, II and III |
| D. | II and III |
| E. | None of these |
| Answer» D. II and III | |
| 11. |
Choose the correct statements. I. A reference rate is an accurate measure of the market price. II. NSE had developed MIBID and MIBOR for the overnight market. III. MIBID and MIBOR was launched in 2005. Codes |
| A. | I and II |
| B. | II and III |
| C. | I and III |
| D. | All of the above |
| E. | None of the above |
| Answer» E. None of the above | |
| 12. |
For issuing a commercial paper, a company should have credit rating of |
| A. | AAA |
| B. | P2 from CRISIS or equivalent |
| C. | P2 from any of rating agencies |
| D. | Not required any more |
| E. | None of the above |
| Answer» C. P2 from any of rating agencies | |
| 13. |
Who issues treasury bills? |
| A. | Reserve Bank of India, as the agent of the Central Government |
| B. | Any govt deptt. of State and Central |
| C. | Any commercial bank |
| D. | All of the above |
| E. | None of the above |
| Answer» B. Any govt deptt. of State and Central | |
| 14. |
Treasury bill is |
| A. | negotiable security |
| B. | non-negotiable security |
| C. | no security at all |
| D. | quasi-negotiable security |
| E. | None of the above |
| Answer» B. non-negotiable security | |
| 15. |
Interest is calculated on actual/365 days basis respect of the following products, except one |
| A. | Call money |
| B. | Notice money |
| C. | Term money |
| D. | Gol dared securities |
| E. | None of these |
| Answer» E. None of these | |
| 16. |
The money market in India consists of two sectors namely, the organised and the unorganised sector. Which of the following do not fall under unorganised sector? |
| A. | RBI, Commercial Banks and SBI |
| B. | LIC and GIC |
| C. | Unit Trust of India |
| D. | Indigenous Banks |
| E. | None of these |
| Answer» E. None of these | |
| 17. |
Money market instruments |
| A. | are usually sold in large denominations |
| B. | have low default risk |
| C. | mature in one year or less |
| D. | characterised by all of the above |
| E. | are characterised by a and b |
| Answer» E. are characterised by a and b | |
| 18. |
Which of the following statements about the money market are true? |
| A. | Not all Commercial Banks deal for their customers in the secondary market |
| B. | Money markets are used extensively by businesses both to warehouse surplus funds and to raise short term funds |
| C. | The single most influential participant in the US money market is the US Treasury Department |
| D. | All of the above are true |
| E. | a and b of the above are true |
| Answer» F. | |
| 19. |
Which one of the following is not a money market instrument? |
| A. | A Treasury bill |
| B. | A negotiable certificate of deposit |
| C. | Commercial paper |
| D. | Treasury bond |
| E. | Repo |
| Answer» E. Repo | |
| 20. |
Commercial paper is a short term security issued by to raise funds |
| A. | the Reserve Bank of India |
| B. | Commercial Banks |
| C. | large and well-known companies |
| D. | National Stock Exchange |
| E. | State and Local Government |
| Answer» D. National Stock Exchange | |
| 21. |
T-bills are financial instruments initially sold by to raise funds |
| A. | Commercial Banks |
| B. | the government |
| C. | corporations |
| D. | agencies of the State Government |
| E. | None of the above |
| Answer» C. corporations | |
| 22. |
What is the minimum denomination amount for a commercial paper? |
| A. | 5 lac |
| B. | 10 lac |
| C. | 25 lac |
| D. | 15 lac |
| E. | None of these |
| Answer» B. 10 lac | |
| 23. |
Which one of the following is a capital market Instrument? |
| A. | A Treasury bill |
| B. | A negotiable certificate of deposit |
| C. | Commercial paper |
| D. | All of the above |
| E. | None of the above |
| Answer» E. None of the above | |
| 24. |
The primary issuers of capital market securities include |
| A. | the Central Government |
| B. | the Local Government |
| C. | corporations |
| D. | the Central and Local Governments and corporations |
| E. | Local Government and corporations |
| Answer» E. Local Government and corporations | |
| 25. |
If the monetary standard based on gold, it is called |
| A. | gold standard |
| B. | silver standard |
| C. | double standard |
| D. | multi standard |
| E. | None of these |
| Answer» B. silver standard | |
| 26. |
First share market in India was established in |
| A. | Delhi |
| B. | Mumbai |
| C. | Kolkata |
| D. | Chennai |
| E. | None of these |
| Answer» C. Kolkata | |
| 27. |
Money lent for 15 days or more in Interbank market is called |
| A. | call money |
| B. | notice money |
| C. | term money |
| D. | All of these |
| E. | None of these |
| Answer» D. All of these | |
| 28. |
Specified interest rate on a fixed maturity security fixed at the time of issue is called |
| A. | market rate of interest |
| B. | call rate |
| C. | repo rate |
| D. | coupon rate |
| E. | discount rate |
| Answer» E. discount rate | |
| 29. |
What is the maturity period of treasury bills issued by Govt. of India? |
| A. | 14 and 91 days |
| B. | 91 and 182 days |
| C. | 14 and 182 days |
| D. | 91, 182 and 364 days |
| E. | None of these |
| Answer» E. None of these | |
| 30. |
A.......... is a type of transferable financial instrument traded on a local stock exchange of a country but represents a security issued by a foreign publicly listed company. |
| A. | depository receipt |
| B. | derivative |
| C. | option |
| D. | participatory notes |
| E. | None of these |
| Answer» B. derivative | |
| 31. |
In one of his speeches, Pranab Mukherjee said that the government had no plans to dilute the roles of market regulators. This means, the role of which of the following will not be diluted? |
| A. | Life Insurance Corporation of India (LIC) |
| B. | Confederation of Indian Industry (CII) |
| C. | Federation of Chambers of Commerce and Industry (FICCI) |
| D. | Bureau of Indian Standards |
| E. | Securities and Exchange Board of India (SEBI) |
| Answer» F. | |
| 32. |
Many a times, we read a term 'SEPA" in financial newspapers. What is the full form of the SEPA? |
| A. | Single Exchange Processing Agency |
| B. | Single Euro Payments Area |
| C. | Single Electronic Processing Agency |
| D. | Super Electronic Purchase Agency |
| E. | None of the above |
| Answer» C. Single Electronic Processing Agency | |
| 33. |
The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector, this type of phenomenon is known as |
| A. | probability risk |
| B. | market risk |
| C. | inflation risk |
| D. | credit risk |
| E. | None of the above |
| Answer» C. inflation risk | |
| 34. |
In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as |
| A. | insider trading |
| B. | future trading |
| C. | foreign trading |
| D. | stock trading |
| E. | None of these |
| Answer» B. future trading | |
| 35. |
The maturity period of a cash management bill can be |
| A. | less than 364 days |
| B. | less than 182 days |
| C. | less than 91 days |
| D. | any period at discretion of the Govt. |
| E. | None of the above |
| Answer» D. any period at discretion of the Govt. | |
| 36. |
Which of the following was the first mutual fund listed on the newly launched mutual fund platform on National Stock Exchange? |
| A. | UTI Mutual Fund |
| B. | SBI Mutual Fund |
| C. | LIC Mutual Fund |
| D. | Bank of Baroda Mutual Fund |
| E. | None of the above |
| Answer» B. SBI Mutual Fund | |
| 37. |
In India 'Commodities Derivatives Market' is regulated by...... [RBI Grade B 2016] |
| A. | PFRDA |
| B. | ECI |
| C. | IRDAI |
| D. | SEBI |
| E. | RBI |
| Answer» E. RBI | |
| 38. |
World's largest stock exchange [SBI Clerk 2016] |
| A. | New York Stock Exchange |
| B. | BSE |
| C. | NSE |
| D. | London Stock Exchange |
| E. | None of these |
| Answer» B. BSE | |
| 39. |
FMC merged with [SBI clerk 2016] |
| A. | SBI |
| B. | CRISIL |
| C. | RBI |
| D. | SEBI |
| E. | None of these |
| Answer» E. None of these | |
| 40. |
CRISIL is a [SBI Clerk 2016] |
| A. | credit rating agency |
| B. | banking super visionary agency |
| C. | payment system of India |
| D. | investment fund |
| E. | Small finance bank |
| Answer» B. banking super visionary agency | |
| 41. |
Maximum period for which a commercial paper can be issued is |
| A. | 3 months |
| B. | 6 months |
| C. | 1 yr |
| D. | 2 yr |
| E. | None of these |
| Answer» D. 2 yr | |
| 42. |
Commercial paper cm be issued |
| A. | by all corporates |
| B. | by all corporates with net worth of atleast Rs. 10 crore |
| C. | by all corporates with net worth of atleast Rs. 5 crore |
| D. | can be issued only by banks |
| E. | All of the above |
| Answer» D. can be issued only by banks | |
| 43. |
Which of the following is the only public sector company in the field of life insurance? |
| A. | General insurance company |
| B. | New India assurance company |
| C. | Oriental insurance company |
| D. | SBI Life Insurance Company |
| E. | Life Insurance Corporation of India |
| Answer» F. | |
| 44. |
Which of the following types of companies/organisations issue ULIP? |
| A. | Insurance companies |
| B. | Stock brokers |
| C. | Banks |
| D. | NABARD |
| E. | RBI |
| Answer» B. Stock brokers | |
| 45. |
Which of the following terms is not used in the world of finance, banking and insurance? |
| A. | Devaluation |
| B. | Amnesty |
| C. | Hard currency |
| D. | Preference share |
| E. | Sinking fund |
| Answer» C. Hard currency | |
| 46. |
Largest share in oriental insurance is of [SBI Clerk 2016] |
| A. | SEBI |
| B. | SBI |
| C. | RBI |
| D. | Union Government |
| E. | IRDAI |
| Answer» E. IRDAI | |
| 47. |
Which of the following company is the sale reinsurance company in India? [UBI PO 2016] |
| A. | Life Insurance Corporation of India |
| B. | ICICI Prudential Life Insurance Company |
| C. | National Insurance Company |
| D. | New India Assurance Company |
| E. | General Insurance Corporation |
| Answer» F. | |
| 48. |
Bancassurance is a relationship between bank and............ [SBI Clerk 2016] |
| A. | Education |
| B. | Insurance Company |
| C. | Employee |
| D. | Customer |
| E. | NABARD |
| Answer» C. Employee | |
| 49. |
A 'cover note' is the first legal document that is issued in lieu of [RBI Grade B 2015] |
| A. | an insurance policy |
| B. | a corporate share certificate |
| C. | home loan sanction |
| D. | a bank fixed deposit |
| E. | a mutual fund investment |
| Answer» B. a corporate share certificate | |
| 50. |
Which of the following is a mode for creating charge on Life Insurance Policies? [SBI PO 2014] |
| A. | Pledge |
| B. | Lien |
| C. | Assignment |
| D. | Hypothecation |
| E. | Equitable Mortgage |
| Answer» D. Hypothecation | |