2. In Secondary segment of Capital Market ____________
Correct : B. Trading of outstanding securities is done
3. Which of the following is a role of Capital Market?
Correct : D. All of the Above
4. Funds can be raised in Primary Market through
Correct : D. All of the Above
5. Primary Market is a market for :
Correct : A. New Issues
6. When an organization opts to convert private capital in to public capital, it is called
_____________
Correct : D. Going Public
7. Bonus Shares enable the company to restructure its capital.
Correct : A. True
8. Which of the following enables issuers to reap benefits arising from price and demand
discovery?
Correct : B. Book Building
9. Which one of the following is not a feature of a Stock Exchange?
Correct : C. Necessary to remain present physically for dealing
10. SENSEX is an Index of which Stock Exchange?.
Correct : D. None of the above
11. Inclusion of a security in the official list of a stock exchange is called _________ and for
that the company has to apply with ___________.
Correct : A. Listing, Managing Committee of Stock Exchange
12. ____________ was set up, as a strong need was felt to protect the interest of investors
and to have a systematic and organized working of the securities market in India.
Correct : D. Securities and Exchange Board of India
13. Collateral value of eligible Listed Securities is considered on ….
Correct : B. Marked to market basis
14. SBTS stands for
Correct : D. Screen Based Trading System
15. Which is a mean to reduce the floating equity stock in the market?
Correct : C. Buy Back
16. Which Stock Exchange of India was the first to grant permission to brokers for internet
trading?
Correct : A. National Stock Exchange
17. Which Stock Exchange of India is based on the model of NASDAQ?
Correct : D. OTCEI
18. At present securities are issued in which form?
Correct : B. Dematerialized
19. One of the features of Capital Market is ‘Ready and Continuous market’ which provides
_____________ to the investors.
Correct : C. Liquidity
20. In ____________ market fresh capital is raised.
Correct : A. Primary
21. Which is the market for financial assets that are close substitutes for money?
Correct : B. Money Market
22. Return on Treasury Bills is ___________
Correct : B. Difference between Issue Price and Par Value
23. Commercial Paper is generally issued by:
Correct : B. Reputed and highly rated Corporates
24. Which Money Market instrument is a time deposit of specific maturity and issued in
bearer form?
Correct : C. Certificate of Deposit
25. In which Money Market instrument default risk is absent?
Correct : C. Treasury Bills
26. Which of the following is considered to be the key segment of Indian Money Market?
Correct : A. Call Money
27. Which of the following is an important tool to finance credit sales?
Correct : A. Commercial Bill
28. Credit Rating performs the function of credit risk evaluation reflecting the borrower’s
expected capability to repay the debt as per terms of issue.
Correct : A. True
29. Credit Rating is beneficial to :
Correct : D. All of the above
30. First Credit Rating Agency of India is ____________.
Correct : A. CRISIL
31. CARE stands for :
Correct : C. Credit Analysis and Research Limited
32. Which of the following is not a part of rating methodology?
Correct : D. Subscriber Evaluation
33. ICRA was promoted by _____________ jointly with other leading investment
institutions, commercial banks and financial service companies.
Correct : B. IFCI
34. CRISIL was set up in which year?
Correct : A. 1988
35. A statement demonstrating the movement of funds into and out of the business during
the course of accounting period is known as ___________
Correct : B. Fund Flow Statement
36. Analysis of funds is rightly called an Analysis of __________
Correct : A. Working Capital
37. Which of the following rules stands true while preparation of Schedule of changes in working
capital?
1) An increase in current assets increases working capital.
2) An increase in current assets decreases working capital.
3) An increase in current liabilities decreases working capital.
4) An increase in current liabilities increases working capital
Correct : A. 1 and 3
38. Among the following items, which represents the source of fund?
Correct : D. All of the above
39. Fund Flow Statement is also known as:
Correct : D. All of the above
40. Which of the following are sources of funds? 1.Issue of Bonus Shares 2.Issue of Shares against the purchase of Fixed Assets 3. Conversion of Debentures into Shares 4.Conversion of Loans into Shares
Correct : D. None of the above
41. Which of the following statements is true? 1. If the amount of good will increases during current year, the difference is treated as purchase of goodwill. 2. If the amount of good will decreases during current year, It will treated as written off.
Correct : C. Both 1 and 2
42. Which of the following are treated as long term investments?
Correct : D. All of the above
43. The balance of fixed assets of Breej Ltd. at the end of 2018 and 2019 were Rs 5,70,800 and Rs 6,15,300. During the year 2019 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.
Correct : A. Rs. 1,04,500
44. For Ram Industries, the balance of property has beenRs 20,000 and Rs 17,000 in 2018 and 2019 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2019. Determine sale proceeds forproperty.
Correct : B. Rs. 10,000
45. For Meghal Industries Ltd. opening balance for Provision for Taxation is Rs. 18,000 and closing balance is Rs. 15,000. During the year Taxed paid wereRs. 10,000. What is the current year’s Provision for Taxation made from the profit?
Correct : C. Rs. 7,000
46. Which of the following are Non-current Assets?
Correct : A. Land, Building and Plant
47. Which of the following are Current Liabilities?
Correct : D. All of the Above
48. When a part of the Fixed Assets is sold during the year, the Profit on sale is shown on
the credit side of which Account?
Correct : A. Adjusted Profit and Loss Account
49. The Funds Flow and Cash Flow statements fail to give a clear idea about profitability of
the company.
Correct : A. True
50. Among the following items which item is shown on the debit side of Adjusted Profit and
Loss Account?
Correct : D. All of the Above
51. Among the following items which does NOT represent the Application of Funds?
Correct : C. Issue of Share Capital
52. Until February 1973, which one of the following was prevalent in World Monetary
System?
Correct : B. Adjustable Peg Exchange Rate System
53. Which one of the following is NOT referred to as ‘Major’ or ‘Hard’ Currency?
Correct : D. India Rupee
54. Rs. 75.17/USD is which type of quotation?
Correct : B. Direct Quote
55. In a two way foreign exchange quotation, the difference between ask and bid prices is
called ____________.
Correct : C. Spread
56. Below data is available: Spot Exchange Rate 6 Month’s Forward Rate Rs./USD 75.17 Rs. 75.00 So, the forward rate is at ___________________
Correct : B. Discount
57. From the data given below which option is true?
Spot 1 month’s Forward Rs./GBP 94.85 94.95
Correct : A. 1 month’s forward is at 1.27% premium
58. The rate of exchange of two currencies on the basis of exchange quotes of other pairs of currencies are derived when a quote of home currency (or desired currency) to any other currency is not available in the Foreign Exchange market is called ____________.
Correct : C. Cross Rate
59. Which of the below mentioned contract is a standardized contract?
Correct : A. Futures Contract
60. An Option which can be exercised only on the maturity date is known as __________.
Correct : C. European Option
61. There is a close link between the interest rates in two countries and the forward rate
premium or discount. The theory about this is :
Correct : C. Covered Interest Arbitrage and interest Rate Parity
62. According to Fisher effect, the nominal rate is equal to the real interest rate plus an
adjustment for ______________
Correct : C. Inflation
63. The acquisition of existing firms or plants as a means of FDI is called ___________.
Correct : D. Brown Field Investments
64. McDonald’s purchasing farms in India to grow potatoes is which type of FDI?
Correct : C. Vertical
65. When an American Company acquires a division or unit of Indian company, the US is
said to be a ______________ Country.
Correct : A. Sending
66. An act of buying currency in one market at a lower price and selling it in another at higher price resulting in equilibrium in exchange rates of different currencies is called _________________.
Correct : D. Arbitrage
67. Which of these are considered as nerve centres of foreign exchange activity.
Correct : A. London, New York and Tokyo
68. Who are key participants of Foreign Exchange Market?
Correct : D. All of the above
69. When the exposed position in a foreign currency is covered through borrowing or
lending in the money market, it is called ______________.
Correct : D. Money Market Hedge
70. An efficient Capital Market provides operational efficiency through…
Correct : D. All of the above
71. Full form of WDM segment is ………..
Correct : A. Wholesale Debt Market
72. A facility of carrying forward the transaction from one settlement to another in BSE was
called _______
Correct : B. Badla
73. For Book Building Process a merchant banker is appointed as a __________
Correct : C. Book Runner
74. Which one of the below is NOT a category of participant in the Primary Capital Market?
Correct : C. Traders of securities
75. Which of the below financial product / instrument cab be traded in the secondary
market?
Correct : D. All of the above
76. __________________ is a benchmark Indian Stock Market Index that represents the weighted average of 50 of the largest Indian Companies listed on the National Stock Exchange.
Correct : B. NIFTY
77. What is the full form of ECB?
Correct : A. External Commercial Borrowings
78. For listed companies the prices are publically arrived at on the basis of demand and supply and hence stock exchange quotations reflect the real value of the security.
Correct : A. True
79. SEBI started its actual functioning when…..
Correct : C. SEBI Act was passed in 1992
80. Full Form of NEAT is
Correct : A. National Exchange for Automated Trading
81. What is the full form of NSDL
Correct : C. National Securities Depository Ltd.
82. Market making is a unique concept of which stock exchange of India?
Correct : D. OTCEI
83. Capital Market in India plays a role in developing integration among:
Correct : D. All of the above
84. Sentence A – Through Rights issue fresh capital can be raised and
Sentence B – Through a Bonus Issue Fresh capital can be raised.
Correct : A. Only Sentence A is true
85. Book Building is basically ____________ of shares.
Correct : A. An auction
86. In the process of Book Building if the public portion gets oversubscribed,…..
Correct : B. The allotment is made on a proportionate basis
87. Stock Futures, Stock Options, Index Futures and Index Options are ___________
Correct : C. Equity Derivatives
88. Which Stock Exchange of India was set up with an objective to meet the current
international standards of securities market?
Correct : D. NSE
89. To provide a focal point for central bank (RBI) intervention for influencing liquidity and
general level of interest rates in the economy is an important function of
Correct : B. Money Market
90. Indigenous bankers and money lenders are constituents of _____________
Correct : C. Unorganised Money Market
91. The purchase and sell of which of the following instrument is effected through
Subsidiary General Ledger (SGL) account?
Correct : A. Treasury Bills
92. Minimum Subscription amount of a Certificate of Deposit is ___________.
Correct : C. Rs. 1,00,000
93. Which instrument was introduced in year 1990 with a view to enable highly rated
corporate borrowers to diversify their sources of short-term borrowings?
Correct : B. Commercial Paper
94. When money is lent for more than a day and up to 14 days it is called as __________
Correct : D. Notice Money
95. What type of relationship is there between call rates and short-term money market
instruments such as CDs and CPs?
Correct : A. Inverse
96. _______________ is an important tool to finance credit sales?
Correct : A. Commercial Bill
97. Which instrument involves high risk and high returnsand helps corporates in solving
temporary capital crisis without many formalities?
Correct : C. Inter-corporate Deposits
98. Which of the following are money market instruments?
Correct : D. All of the Above
99. What is the full form of CRISIL?
Correct : B. Credit Rating Information Services of India Limited