..................... are short term deposits of specific maturity similar to fixed deposits.

interbank participation certificate

The certificate which evidences an unsecured corporate debt of short term maturity

Interbank participation Certificate

77 + Mcqs in Indian Financial System in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.
A.	physical asset
B.	fixed asset
C.	financial asset
D.	none of these
Answer» D. none of these

Discussion

2.	___________ allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption
A.	economic system
B.	banking system
C.	financial system
D.	market system
Answer» D. market system

Discussion

3.	Any company making a public issue of value of more than Rs. is required to file a draft offer document with SEBI.
A.	100 lakh
B.	25 lakh
C.	50 lakh
D.	10 lakh
Answer» D. 10 lakh

Discussion

4.	................... 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

Discussion

5.	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

Discussion

6.	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

Discussion

7.	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

Discussion

8.	The scheme in which company can allot shares not more than 15% of the issue size, to the public in addition to the shares already offered- is called
A.	right issue
B.	esops
C.	green shoe option
D.	bonus issue
Answer» D. bonus issue

Discussion

9.	The device adopted to make profit out of the differences in prices of a security in to different markets is called.....................
A.	cornering
B.	prise rigging
C.	arbitrage
D.	margin trading
Answer» D. margin trading

Discussion

10.	The process of holding the entire supply of a particular security with a view to dictating terms is called
A.	cornering
B.	wash sales
C.	rigging
D.	arbitrage
Answer» B. wash sales

Discussion

11.	Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year
A.	1992
B.	2002
C.	2005
D.	2000
Answer» C. 2005

Discussion

12.	As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------
A.	discount
B.	premium
C.	par
D.	any of the above
Answer» D. any of the above

Discussion

13.	As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------
A.	Discount
B.	Premium
C.	Par
D.	any of the above
Answer» D. any of the above

Discussion

14.	Those option which can be exercised only on the expiration date is known as------ option
A.	American
B.	Double
C.	European
D.	Swaption
Answer» D. Swaption

Discussion

15.	Those who provides finance for carry forward transactions in securities is called
A.	Tharawaniwalas
B.	Tejiwalas
C.	Mandiwalas
D.	Badliwalas
Answer» C. Mandiwalas

Discussion

16.	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

Discussion

17.	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

Discussion

18.	Maximum time limit for the allotment of shares or refund order in case of public issue is
A.	15 days of closure of issue
B.	30 days of closure of issue
C.	45 days of closure of issue
D.	60 days of closure of issue
Answer» C. 45 days of closure of issue

Discussion

19.	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.

Discussion

20.	The process of holding the entire supply of a particular security with a view to dictating terms is called
A.	Cornering
B.	Wash sales
C.	Rigging
D.	Arbitrage
Answer» B. Wash sales

Discussion

21.	Financial markets are markets that deal in assets and credit instruments.
A.	fixed assets
B.	financial assets
C.	current assets
D.	all of these
Answer» C. current assets

Discussion

22.	An attempt to gaining short term profit from the price difference or movements of securities are called
A.	investment
B.	speculation
C.	hedging
D.	all the above
Answer» C. hedging

Discussion

23.	A system of security trade in which one is allowed to invest in excess of his financial capacity by borrowing funds
A.	Margin trading
B.	Cornering
C.	Rigging
D.	Arbitrage
Answer» B. Cornering

Discussion

24.	The security trade which takes place outside the trading floor of stock exchange or beyond the business hours are known as
A.	Option deals
B.	Bought out deals
C.	Buy out deals
D.	Grey market deals
Answer» E.

Discussion

25.	..................... are an important instrument of short term borrowing by the Govt.
A.	National saving certificate
B.	Bonds
C.	Treasury bill
D.	Any of the above
Answer» D. Any of the above

Discussion

26.	................ 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.

Discussion

27.	The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956
A.	sec.75
B.	sec.79
C.	sec.81
D.	sec.91
Answer» D. sec.91

Discussion

28.	An option (right) to purchase shares in future at predetermined price is called
A.	Hedging
B.	Put option
C.	Push option
D.	Call option
Answer» E.

Discussion

29.	The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956
A.	Sec.75
B.	S
C.	79 c. Sec.81
D.	Sec.91
Answer» D. Sec.91

Discussion

30.	Companies (Amendment) bill-1999 restricts buy back of shares up to........... of the paid up capital
A.	50%
B.	20%
C.	25%
D.	60%
Answer» C. 25%

Discussion

31.	........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions.
A.	IFCI
B.	IDBI
C.	RBI
D.	SEBI
Answer» C. RBI

Discussion

32.	Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee
A.	Malegam
B.	Malhotra
C.	Vaghul
D.	Narasimham
Answer» D. Narasimham

Discussion

33.	..................... is a process of admitting securities for trading on a recognised stock exchange.
A.	registration
B.	filing
C.	listing
D.	admission
Answer» D. admission

Discussion

34.	..................... 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.

Discussion

35.	A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is
A.	sub-broker
B.	commission broker
C.	authorised clerk
D.	remisiers
Answer» D. remisiers

Discussion

36.	A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is
A.	Sub-broker
B.	Commission broker
C.	Authorised clerk
D.	Remisiers
Answer» D. Remisiers

Discussion

37.	The certificate which evidences an unsecured corporate debt of short term maturity
A.	Certificate of Deposit
B.	Commercial paper
C.	Secured Premium Notes
D.	Interbank participation Certificate
Answer» C. Secured Premium Notes

Discussion

38.	in the case of -------- bonds, the value is inversely related to short term interest rates.
A.	Fixed rate bonds
B.	Inverse float bonds
C.	Perpetual bonds
D.	Option bonds
Answer» C. Perpetual bonds

Discussion

39.	Shares of well established and financially sound compnies,with very little investment risk and good history of earnings is known as
A.	Alpha shares
B.	Blue chip shares
C.	Star stock
D.	Beta stock
Answer» C. Star stock

Discussion

40.	The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction
A.	Badla
B.	arbitrage
C.	cornering
D.	trading inside
Answer» B. arbitrage

Discussion

41.	The facility to carry forward a transaction from one settlement period to another is called --------- transaction
A.	hand delivery
B.	badla
C.	cornering
D.	arbitrage
Answer» C. cornering

Discussion

42.	The facility to carry forward a transaction from one settlement period to another is called --------- transaction
A.	Hand delivery
B.	Badla
C.	Cornering
D.	Arbitrage
Answer» C. Cornering

Discussion

43.	The market which helps commercial banks to maintain their SLR requirement is
A.	Call loan market
B.	T-bills market
C.	Acceptance market
D.	Commercial bill market
Answer» B. T-bills market

Discussion

44.	The process in which illiquid assets are converted into marketable securities is known as
A.	Mutualisation
B.	Dematerialisation
C.	Rematerialisation
D.	Securitisation
Answer» E.

Discussion

45.	........... 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.

Discussion

46.	The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction
A.	badla
B.	arbitrage
C.	cornering
D.	trading inside
Answer» B. arbitrage

Discussion

47.	A merchant bank can claim a charge ------- % as the commission for the whole issue
A.	5%
B.	2.5%
C.	0.5%
D.	0.25%
Answer» D. 0.25%

Discussion

48.	represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.
A.	physical asset
B.	fixed asset
C.	financial asset
D.	none of these
Answer» D. none of these

Discussion

49.	Which of the following is /are example of Secondary or indirect financial instrument
A.	Equity shares
B.	Preference shares
C.	Post office saving deposit
D.	Bonds
Answer» D. Bonds

Discussion

50.	Which of the following is /are example of primary or direct financial instrument
A.	Fixed deposit receipt
B.	Insurance policies
C.	Mutual fund Unit
D.	Debentures
Answer» E.

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.

___________ allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption

Any company making a public issue of value of more than Rs. is required to file a draft offer document with SEBI.

................... are drawn by contractors on the Govt. departments for the goods supplied to them

The process of managing the sales ledger of a client by a financial service company is called

The process of managing the sales ledger of a client by a financial service company is called

When purchases of securities are more than sales of securities, the market is called

The scheme in which company can allot shares not more than 15% of the issue size, to the public in addition to the shares already offered- is called

The device adopted to make profit out of the differences in prices of a security in to different markets is called.....................

The process of holding the entire supply of a particular security with a view to dictating terms is called

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year

As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------

As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------

Those option which can be exercised only on the expiration date is known as------ option

Those who provides finance for carry forward transactions in securities is called

Speculator who neither buy nor sell securities in the market, but still trade on them are called

Speculator who neither buy nor sell securities in the market, but still trade on them are called

Maximum time limit for the allotment of shares or refund order in case of public issue is

The device adopted to make profit out of price differences in two different markets

The process of holding the entire supply of a particular security with a view to dictating terms is called

Financial markets are markets that deal in assets and credit instruments.

An attempt to gaining short term profit from the price difference or movements of securities are called

A system of security trade in which one is allowed to invest in excess of his financial capacity by borrowing funds

The security trade which takes place outside the trading floor of stock exchange or beyond the business hours are known as

..................... are an important instrument of short term borrowing by the Govt.

................ bonds permit the bond holder to invest the interest income again in host bonds

The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956

An option (right) to purchase shares in future at predetermined price is called

The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956

Companies (Amendment) bill-1999 restricts buy back of shares up to........... of the paid up capital

........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions.

Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee

..................... is a process of admitting securities for trading on a recognised stock exchange.

..................... are short term deposits of specific maturity similar to fixed deposits.

A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is

A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is

The certificate which evidences an unsecured corporate debt of short term maturity

in the case of -------- bonds, the value is inversely related to short term interest rates.

Shares of well established and financially sound compnies,with very little investment risk and good history of earnings is known as

The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction

The facility to carry forward a transaction from one settlement period to another is called --------- transaction

The facility to carry forward a transaction from one settlement period to another is called --------- transaction

The market which helps commercial banks to maintain their SLR requirement is

The process in which illiquid assets are converted into marketable securities is known as

........... is a product whose value is derived from the value of underlying asset

The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction

A merchant bank can claim a charge ------- % as the commission for the whole issue

represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend.

Which of the following is /are example of Secondary or indirect financial instrument

Which of the following is /are example of primary or direct financial instrument