Unit 1

1 marks

 ___________ is a link between savers & borrowers helps to establish a link

1 between savers. &investors.(CO1-KI). (A) Marketing. (B)Financial market (C)
Money market (D) None of these.

Which of the following is the function of financial market?(CO1-KI)
2 (A)Mobilization of savings (B)Price fixation(C)Provide liquidity to financial
assets (D)All of the above.

__________ is the organisations, institutions that provide long term funds.(CO1-
3 KI)
(A)Capital market (B)Money market. (C)Primary market. (D)Secondary market.

When securities are allotted to institutional investors & some selected individuals
is
4 referred to as _________.(CO1-KI)
(A)Initial public offer (B)Offer through prospectus (C)Private placement.(D)Offer
for sale.


5 Stock exchange is known as __________ market for securities. (CO1-KI)

(A)Primary market (B)Secondary market(C)Capital market (D)None of the above.

_________ is a market for lending & borrowing of short term funds.(CO1-KI)
6
(A) Money market (B) Primary market (C) Capital market (D) All of the above.
3 marks


1 Discuss the meaning of new issue markets. (CO1-K2)

2 Explain the advantages of Underwriting. (CO1-K2)

3 State the Merchant Banking. (CO1-K2)

4 What are the Objectives of a Money market? (CO1-K2)

5 Explain the characteristics of Commercial Paper. (CO1-K2)

5 marks
 

1 Differentiate between money market and capital market. (CO1-K2)

2 Explain the classification of financial markets. (CO1-K2).

3 Discuss the structure of Indian Financial System. (CO1-K2)


4. State the functions of merchant banker .(CO1-K2)

5 Explain the difference between new issue market and stock exchange. (CO1-
K2
Unit 2

1 marks

1 ____________ is also called zero coupon bond. (CO2-K1)

(A) Trade bills (B) Call money (C) Treasury bills (D) Commercial Papers.


2 Which of the following are the instruments of money market? (CO2-K1)

(A) Call money (B) Certificate of deposits (C) Trade bills (D) All of the above.

The short term financial instruments traded in money market is commonly
3 called____________(CO2-K1).
(A) Call money (B) Certificate of deposits(C) Trade bills (D) Commercial Paper.

Which of the following statements is not true with regard to money market?
(CO2-K1)
4 (A) It involves low market risk.(B) It is situated at specific locations.(C) Deals in
unsecured and short-term debt instruments.(D) The instruments traded are highly
liquid.

Which of the following statements is not true with regard to Commercial paper?
(CO2-K1)
5 (A) Is a long-term unsecured promissory note with a fixed maturity period.(B) It
usually has a maturity period of 15 days to one year.(C) It is sold at a discount and
redeemed at par.(D) Companies use this instrument for bridge financing.
3 marks

1 State the drawbacks of Listing. (CO2-K2)


2 State the Secondary markets. (CO2-K2)

3 Discuss the Venture Capital. (CO2-K2)

4 Explain the role of merchant bankers in India. (CO2-K2)

5 What are the forms of Underwriting? (CO2-K1)

5 marks

1 Discuss the various methods of new issue of shares. (CO2-K2)

2 Explain the functions of Commercial banks. (CO2-K2)

3 Describe the relationship between primary markets and secondary markets. (CO2-
K2)


4 Discuss the methods of floating new issues of shares. (CO2-K2)

5 Discuss the methods of floating new issues of shares. (CO2-K2)