QUIZ

a short-term money market which allows

for large financial institutions, such as
banks, mutual funds, and corporations, to
borrow and lend money
A. Money Market
B. Call Money Market
C. CAPITAL Market
D. GUILT EDGE Market
ANS. Option B
are unsecured, short-term debt issued by a
corporation, often times for the financing of
short-term liabilities and inventory.
a) Commercial bills
b) T bills
c) Bills of exchange
d) Invoices
ANS. OPTION A
is short-term debt backed by the government
with a maturity of under one year
a) Commercial bills
b) T bills
c) Bills of exchange
d) Invoices
ANS. OPTION B
 is a financial transaction and a type of
debtor finance in which a business sells its
accounts receivable (i.e., invoices) to a
third party at a discount

A. venture capital
B. merchant bank
C. Factoring
D.Leasing
ANS. Option C
QUES. The banks are required to
maintain a certain ratio between their
cash in the hand and totals assets. This
is called
A. Statutory Bank Ratio (SBR)
B. Statutory Liquid Ratio (SLR)
C. Central Bank Reserve (CBR)
D. Cash Reserve Ratio (CLR)
ANS. Option B
Gilt-edged market means
A.Bullion Market
B. Market of government securities
C. Market of guns
D. Market of pure metals
ANS. Option B
…………….. is external equity funding provided by
professionally managed pools of investor money .
 Mutual Fund
 Venture Capital
 Merchant Bankers
 Factoring

Answer option B
Merchant banker can be
a) Underwriter
b) Portfolio Manager
c) Bankers to Issue
d) All of the above.

ANS.OPTION D
A mutual fund is a collection of
_____________, owned by a group of
investors.
 (A) stocks and cash 
 (B) stocks, bonds, and other securities 
 bonds 
 (c) interests accrued on a stock

ANSWER OPTION B
 refers to the direct sale of newly
_____

issued securities to a small number of

investors through merchant bankers.
a) Private Placement
b) Preferential Issue
c) Book Building
d) Reverse Book Building
ANS. OPTION A
 In India, which one among the
following formulates the fiscal
policy?
A. Planning Commission
B. Ministry of Finance
C. Finance Commission
D. The Reserve Bank of India

ANS. Option B
 In the state of India, the State
Financial Corporation have given
assistance mainly to develop
A.Agricultural farms
B.Cottage Industry
C.Large-scale Industries
D.Medium and small-scale
Industries
ANS. Option D
  A preliminary prospectus is known as a
(A) golden parachute.
 
(B) red herring.
 
(C)blue sky.
 
(D) green shoe.

ANS. OPTION B
Financial intermediaries          .
(a) do not invest in new long-term securities
(b) include insurance companies and
pension funds
(c)include the national and regional stock
exchanges
(d) are usually underwriting syndicates

ANS. OPTION D
 Financial markets have the basic function of

A) bringing together people with funds to lend and people

who want to borrow funds.
B) assuring that the swings in the business cycle are less
pronounced.

C) assuring that governments need never resort to printing

money

D). both (A) and (B) of the

above

Answer: A
A mutual fund is not
A portfolio of stocks , bonds and other securities.
A company that manage investment portfolio
A pool of funds used to purchase securities on the
behalf of investors.
A collective investment vehicle .

Answer option B
Which of the following are primary
markets?
A) The New York Stock Exchange
B) The U.S. government bond market
C) The over-the-counter stock market
D) The options markets
E) None of the above

Answer: OPTION E
Short selling means
(A)Selling of less number of stocks
than the seller holds
(B)Selling of stocks in a short period
(C)Sale of stocks, which the seller
does not own at the time of selling
(D)None of these

ANS.OPTION C
Every financial market has the following
characteristic:
A) It determines the level of interest
rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-
savers to borrowers-spenders.
Answer: D
A long term liability of a company, municipality, or government
usually specified by a specific interest rate and
for a specific length of time is referred to as a ______________
 (A)coupon
 (B)bond
 (C)stock
(D) mutual fund

ANSWER OPTION B
 Bad debt cost is not borne by factor in
case of
(a) Pure Factoring,
(b) Without Recourse Factoring,
(c) With Recourse Factoring
(d) None of the above

ANSWER OPTION C
Deficit financing means that the
government borrows money from the
A.RBI
B. Local Bodies
C. Big Businessmen
D. IMF
ANS. Option A
Deficit financing leads to inflation in general,
but it can be checked if
A.Government expenditure leads to increase in
the aggregate supply in ratio of aggregate
demand
B. Only aggregate demand is increased
C. All the expenditure is denoted national debt
payment only
D. All of the above
ANS. Option D
Preferred shareholders' claims on assets and income
of a firm come          those of creditors          those of
common shareholders.
(a) before; and also before
 
(b) after; but before
 
(c)after; and also after
 
(d) equal to; and equal to

ANS. OPTION B
Intermediaries who are agents of investors and
match buyers with sellers of securities are called

A) investment bankers.
B) traders.
C) brokers.
D) dealers.
E) none of the above.

Answer: C
Merchant Banking has been
defined under
a) SEBI Rules, 1992
b) FEMA, 1999
c) FERA, 1973
d) Companies Act, 1956
ANS. OPTION A
Short-term finance is usually for a
period ranging up to
A.5 months
B.10 months
C.12 months
D.15 months
ANS. Option C
Central banking functions in India are
performed by the
I. Central Bank of India
II. Reserve Bank of India
III. State Bank of India
IV. Punjab National Bank
A.I,II
B. II
C. I
D. II,III
ANS. Option B
a method of financing of the fixed asset to
be purchased on future date
A) Factoring
B) Venture capital
C) Mutual fund
D) Hire purchase

Answer: D
a platform wherein the shares
of companies are traded among
investors
A.Primary market
B.NIM
C.SECONDARY MARKET
D.NEW ISSUE MARKET
ANS. Option C
is a company registered under the Companies Act, 1956 engaged in the
business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by Government or
local authority or other marketable securities of a like nature, leasing,
hire-purchase, insurance .

A) Factoring
B) Venture capital
C) Mutual fund
D) NBFC

Answer: D
are government owned scheduled
commercial banks of India that operate
at regional level in different states of
India.
a) RRB
b) PUBLIC SECTOR BANKS
c) PRIVATE SECTOR BANK
d) SBI
ANS. OPTION A
is a benchmark interest rate at which major global
banks lend to one another in the international interbank
market for short-term loans..
 (A)REPO
 (B)LIBOR
 (C)FED RATE
(D) REVERSE REPO

ANSWER OPTION B
   a customized contract between two
parties to buy or sell an asset at a
specified price on a future date. 
a) OPTION
(b) CALL OPTION
(c) FORWARD
(d) PUT OPTION

ANSWER OPTION C
   are financial contracts that give the
option buyer the right, but not the
obligation, to buy a stock, bond,
commodity,
a) OPTION
(b) CALL OPTION
(c) FORWARD
(d) PUT OPTION

ANSWER OPTION B
   is a contract giving the owner the right,
but not the obligation, to sell–or sell
short–a specified amount of an
underlying security
a) OPTION
(b) CALL OPTION
(c) FORWARD
(d) PUT OPTION

ANSWER OPTION D
   a contract between two or more parties whose value is
based on an agreed-upon underlying financial asset (like a
security) or set of assets (like an index). Common underlying
instruments include bonds, commodities, currencies, interest
rates, market indexes, and stocks. 
a) OPTION
(b) CALL OPTION
(c) DERIATIVES
(d) PUT OPTION

ANSWER OPTION C
is a form of private equity financing that is provided
to startups, early-stage, and emerging companies
that have been deemed to have high growth potential  
(A)LEASING
 (B)VENTURE CAPITAL
 (C) HIRE PURCHASE
(D) MUTUAL FUND

ANSWER OPTION B