1. Financial system allows transfer of funds between_. (Page No.

1)
(a) Savers and borrowers
(b) Savers and lenders
(c) Individuals and corporations
(d) Lenders and individuals
(e) Borrowers and corporations

2. Financial system converts_. (Page No. 1).

(a) Investments into savings
(b) Savings into investments
(c) Investments into shareholders funds
(d) Cash into capital
(e) All of these

3. Which of the following is not a function function of financial system ?(page no. 1)
(a) It assists in choosing the projects to finance and routinely evaluates how well they are performing.
(b) It offers a means of payment for the exchange of products and services.
(c) It offers a method for resource transfer across geographical borders.
(d) It offers a method for monitoring and limiting the risk associated with allocating credit and
mobilising savings.
(e) It assists private sector banks to reduce the credit rating ratio

4. The financial system encourage the capital formation by_. (Page no. 1)
(a) combining the supply of savings and the demand for investable funds
(b) offering comprehensive information to market participants
(c) reducing transaction costs and raising returns
(d) acting as middlemen between borrowers and savers
(e) Reducing the foreign exchange rate

5. Which of the following is not a component of Financial system ? (Page no 1)

(a) Financial institutions
(b) Financial Borrowings
(c) Financial Markets
(d) Financial Instruments
(e) Financial Services.

6. Full form of PFRDA is (page no 1)

(a) Pension Fund Regulatory and Development Authority
(b) Provision Fund Regulatory and Development Authority
(c) Pension Fund Research and Development Authority
(d) Provision Fund Research and Development Authority
(e) None of the above.

7. Full form of SEBI is (page no. 1)

(a) Stock Exchange Board of India
(b) Security and Exchange Board of India
(c) Securities Exchange Board of India
(d) Stock Exchange Bank of India
(e) Securities and Exchange Bank of India

8. Full form of NABARD is (page no. 1)

(a) National Bank for Agricultural Research and Development
(b) National Bank for Administrative Research and Development
(c) National Bank for Agriculture and Rural development
(d) National Bank for Agriculture and Road Department
(e) National Bank for Agriculture and Rural Department

9. Which of the following is not a function of Financial Markets ?(page no 2)

(a) It helps in facilitation, creation and allocation of credit and liquidity.
(b) They serve as intermediaries for channelising of savings.
(c) They assist process of balanced economic growth.
(d) It also provides financial convenience.
(e) It provides personal loans to individuals at negligible intrest rates.

10. Full form of CRISIL (page no 2)

(a) Credit Rating Information Services of India Limited
(b) Creditors Report Information Services of India Limited
(c) Currency Rating Informatics Services of India Limited
(d) Current Report Insurance Services of India Limited
(e) Capital Repurchase Insurance Services of India Limited

11. In addition to India CRISIL became operational in which countries ? (Page no 2)

(a) UK, USA, UAE, China, Hong Kong, and Australia
(b) UK, USA, Poland, China, Hong Kong, and Argentina
(c) UK, USA, Pakistan, China, South Korea, and Australia
(d) UK, USA, Russia, China, South Korea, and Japan
(e) UK, USA, Poland, Russia, Japan, and Argentina

12. Full form of ICRA (page no 2)

(a) Investment and Credit Rating Agency of India
(b) Investment Information and Credit Rating Agency of India
(c) Information of Credit Rating Agency of India
(d) Investment and Credit Rating Agency of India
(e) Indian Coucil of Credit Rating Analysis.

13. When was the ICRA established ? (page no 2)

(a) 1990
(b) 1989
(c) 1991
(d) 1992
 (e) None of the above

14. Full form of CARE (page no. 2)

(a) Credit Analysis and Research Limited
(b) Credit Analysis and Return Exchange Limited
(c) Credit Analysis and Repurchase Limited
(d) Credit rating Agency and Regulatory Exchange Limited
(e) Cooperative Agency for Regulations and Exchange Limited

15. CARE offers bank loan ratings in which of the following categories (page no 2)
(a) long-term and medium-term debt instruments
(b) medium-term and short-term debt instruments
(c) long-term and short-term debt instruments
(d) long-term debt instruments
(e) Short-term debt instruments

16. Acuite Ratings & Research was previously known as. (Page no 2)
(a) SMSEA Ratings Limited
(b) SMRA Ratings Limited
(c) SMESRA limited
(d) SAMER Limited
(e) SMERA Ratings Limited

17. Acuite Ratings & Research has two parts namely (page no 2)
(a) Acuite Ratings and SME Ratings
(b) Bond Ratings and SME Ratings
(c) Bond Ratings and Acuite Ratings
(d) Bond Ratings and MSME Ratings
(e) Acuite Ratings and MSME Ratings

18. Acuite Ratings & Research was established in (page no 2)

(a) 2011
(b) 2009
(c) 2008
(d) 2007
(e) None of these

19. Brickwork Ratings India Private Limited was formed in (page no 2)

(a) 2009
(b) 2007
(c) 2010
(d) 2008
(e) None of these

20. Brickwork Ratings India Private Limited is accredited by (page no 2)

 (a) The SEBI
(b) The RBI
(c) CARE
(d) ICRA
(e) NSIC

21. India Ratings and Research Pvt. Ltd was established in (page no 2)
(a) 1993
(b) 1994
(c) 1995
(d) 1998
(e) None of these

22. The headquarters of India Ratings and Research Pvt. Ltd is in (page no 3)
(a) Mumbai
(b) Ahemdabad
(c) Delhi
(d) Kolkata
(e) Bengaluru

23. India Ratings and Research Pvt. Ltd was formerly known as (page no. 2)
(a) Bose Ratings India Pvt. Ltd.
(b) Fitch Ratings India Pvt. Ltd.
(c) Faruq Ratings India Pvt. Ltd.
(d) Marshall Ratings India Pvt. Ltd.
(e) Dilotte Ratings India Pvt. Ltd.

24. Infometrics Valuation and Rating Pvt. Ltd was formed in (page no 3)
(a) 1988
(b) 1987
(c) 1986
(d) 1978
(e) 1982

25. Infometrics Valuation and Rating Pvt. Ltd offers an unbiased assessment and evaluation of the
creditworthiness of (page no 3)
(a) Banks, NBFCs, SMUs and large corporates.
(b) Only Banks and NBFCs
(c) Only small and medium scale units
(d) Only non-banking financial companies
(e) None of these

26. An IPO involves a change in the ownership of a company from (page no. 3).
 (a) Public to private
(b) Private to public
(c) Company to individuals
(d) All of the above
(e) None of these

27. Which of the following is not a correct different between IPO and FPO (Page no. 3)
(a) IPO is first sale of shares while FPO is additional share sale
(b) FPO is first sale of shares while IPO is additional share sale
(c) In IPO price is fixed for the share sale while in FPO price is determined by the market.
(d) In IPO the issuer company gets listed in the exchanges for the first time while FPO belonging to a
company is already listed in the exchanges.
(e) All are correct.

28. Which of the following is not an example of primary market

(a) IPO
(b) Private placements
(c) Preferential allotments
(d) BSE
(e) Both (b) and (c)

29. Which of the following is also known as "New Issue Market" ? (Page no 3)
(a) Commodity Market
(b) Secondary Market
(c) Money Market
(d) Primary Market
(e) None of these

30. Which of the following is not a feature of primary Market ? (Page no 3)

(a) This is the market for new long-term capital.
(b) It issues the securities which are issued by the company directly to investors.
(c) This market trades securities which are already issued in an initial private or public
offering.
(d) The primary market plays the crucial role in facilitating capital formation in the economy.
(e) It does not include certain other sources of new long-term external finance, such as loans from
financial institutions.

31. MCX Stock Exchange was recognised by SEBI under which act ? (Page no 4)
(a) Section 4 of the Securities Contracts (Regulation) Act, 1956
(b) Section 14 of the Securities Contracts (Regulation) Act, 1956
(c) Section 31 of the Securities and Exchange Board of India Act, 1992
(d) Section 19 of the Reserve Bank of India Act, 1949
(e) Section 11 of the Securities and Exchange Board of India Act, 1992
32. MCX-SX started its operations in Currency Futures in the Currency Derivatives segment on (page no.
4)
(a) October 7, 2008
(b) August 14, 2007
(c) June 25, 2007
(d) September 13, 2008
(e) May 1, 2006

33. Bombay Stock Exchange (BSE) was established in (page no 4)

(a) 1870
(b) 1992
(c) 1946
(d) 1895
(e) 1875

34. Which is Asia's first Stock Exchange (page no 4)

(a) National Stock Exchange
(b) Bombay Stock Exchange
(c) MCX Stock Exchange
(d) Sanghai Stock Exchange
(e) Hong Kong Stock Exchange

35. As of January 2013, the companies listed on BSE Ltd command a total market capitalization of (page
no 4)
(a) USD 1.32 Trillion
(b) USD 132 Billion
(c) USD 13.2 Billion
(d) USD 13.2 Trillion
(e) USD 1.32 Billion

36. India's most widely tracked stock market benchmark index is the (page no 5)
(a) NSE Nifty 50
(b) S&P CNX Nifty
(c) S&P BSE SENSEX
(d) EUREX
(e) NEAT

37. Under which act National Stock Exchange (NSE) was recognised ? (Page no 5)
(a) the Securities and Exchange Board of India Act, April 1992
(b) the Securities Contracts (Regulation) Act, April 1993
(c) the Securities Contracts (Regulation) Act, June 1994
(d) the Securities and Exchange Board of India Act, June 1990
(e) the the Securities and Exchange Regulations of India Act, April 1992
38. Full form of NEAT (page no 5)
(a) National Exchange for Agreement Trading
(b) National Equity Arrangment Training
(c) National Exchange Association for Trading
(d) National Exchange for Automated Trading
(e) Non-Banking Enterprise for Automation Trading

39. Treasury Bills are issued by the (page no 7)

(a) Central Government
(b) State Government
(c) Corporate Companies
(d) Commercial Banks
(e) All of the above

40. The length of Call Money might be as short as (page no 7)

(a) 14 days
(b) 7 days
(c) 1 day
(d) 91 days
(e) 31 days

41. The duration of Call Money might be (page no 7)

(a) Two weeks
(b) Less than two weeks
(c) More than two weeks
(d) Two weeks or more
(e) Two weeks or less

42. Which of the following organisations are not allowed to engage in the call/notice money market as
both lenders and borrowers ? (Page no 8)
(a) Scheduled Commercial Banks
(b) Regional Rural Banks
(c) Co-operative Banks
(d) Primary Dealers
(e) Both (b) & (d)

43. Commercial were introduced in India in (page no 8)

(a) 1990
(b) 1989
(c) 1997
(d) 1992
(e) 1995
44. Generally the maturity period of a Commercial Bill is (page no 8)
(a) One month
(b) One year
(c) Three months
(d) Six months
(e) More than one year

45. Repo was introduced in (page no 8)

(a) January 1990
(b) March 1996
(c) November 1997
(d) May 1989
(e) December 1992

46. Repo transactions are affected between (page no 8)

(a) Banks and other Financial institutions
(b) Banks and corporate Companies
(c) Banks and individuals
(d) Other Financial institutions and companies
(e) Individuals and Other Financial institutions

47. Banker's Acceptance have maturities ranging from (page no 9)

(a) 30 to 120 days
(b) 30 to 180 days
(c) 90 to 180 days
(d) 30 to 90 days
(e) 30 to 360 days

48. The RBI Act of 1934's Section 17(5) permits the central bank to make loans to the (page no 9)
(a) Federal government
(b) State governments
(c) Commercial Banks
(d) Both (a) & (b)
(e) All of the above

49. The main application of bills of exchange is in (page no 9)

(a) international trade
(b) Business transactions
(c) Loan repayment
(d) Commodity Market
(e) All of the above

50. Which of the following is not an element of bills of exchange ? (Page no 9)

(a) Title
(b) Amount
 (c) Product description
(d) Identification Number
(e) Signature

51. This party pays the amount stated on the bill of exchange to the payee
A) Drawee
B) Drawer
C) Payee
D) Payer
E) None of these

52. This party is paid the amount specified on the bill of exchange by the drawee
A) Drawer
B) Payee
C) Drawee
D) Payer
E) None of these

53. This party requires the drawee to pay a third party

A) Drawer
B) Payee
C) Drawee
D) Payer
E) None of these

54. On the front of the document, the phrase "bill of exchange" is mentioned.
A) Amount
B) Payee
C) Title
D) Signature
E) Identification number

55. The whole sum due, represented both quantitatively and verbally.
A) Payee
B) Signature
C) Title
D) Amount
E) Identification number

56. Indicates the party to be paid's name

A) Payee
B) Signature
C) Title
D) Amount
E) Identification number

57. The bill should contain a unique _______________.

A. Amount
B. Payee
C. Title
D. Signature
E. Identification number

58. A short-term Investment strategy developed by a non-financial company and supported

by a bank guarantee.
A. Means Advances
B. Ways Advances
C. Banker's Acceptance
D. Repo Repo transactions
E. None of these

59. The RBI ________________________ permits the central bank to make loans to the
federal government and state governments as long as they are repaid "not later than three
months from the date of the advance."
A. Act of 1944's Section 12(5)
B. Act of 1933's Section 17(3)
C.
D. Act of 1930's Section 15(7)
E. Act of 1934's Section 17(5)

60. Which of the following statements is false ?

A) The interest rate on WMA is the RBI's repo rate, which is basically the rate at which
it lends short-term money to banks.
B) The interest on such overdraft is 1 percentage points above the repo rate, which
now works out to 4.6%.
C) Reverse or Repo Repo transactions are only permitted between RBI-approved parties
and only between RBI-approved securities.
D) Both B and C
E) None of these.