1. In hire purchase depreciation can be claimed by the
Correct : A. hirer
2. A merchant bank can claim a charge ------- % as the commission for the whole issue
Correct : C. 0.5%
3. Which of the following is not a quantitative credit control tool of RBI?
Correct : D. margin requirements
4. Which of the following is a selective (qualitative) credit control method?
Correct : D. credit rationing
5. Currency notes of rupee one and other lower subsidiary coins are issued by
Correct : C. ministry of finance
6. American Depository Receipts (ADRs) are issuing by
Correct : C. overseas depository
7. ----------- is the process of converting security in electronic form into physical form
Correct : A. rematerialisation
8. ----------- is dealing in securities done by those who having access to price sensitive
information.
Correct : B. insider trading
9. --------- is a calculated move with an expectation to reap huge profit from market
fluctuations
Correct : B. speculation
10. ---------- speculators are optimistic in nature
Correct : A. bull
11. ---------- speculators are Pessimistic in nature
Correct : B. bear
12. 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
Correct : C. green shoe option
13. The merchant banker coordinating a public issue is called as
Correct : B. lead manager
14. -------- is a shortened form of prospectus
Correct : B. abridged prospectus
15. -------- is an offer document is used in public issue made under book building method.
Correct : A. red herring prospectus
16. In technical sense, short sellers (bears) will be “squeezed” through
Correct : B. cornering
17. ---------- is known as ‘Traffic in securities’
Correct : D. arbitrage
18. A system of security trade in which one is allowed to invest in excess of his financial
capacity by borrowing funds
Correct : A. margin trading
19. Which of the following speculative transactions are unfair and prohibited?
Correct : C. rigging
20. Which of the following is not a prohibited act in security market?
Correct : D. margin trading
21. ------- is undertaken for making a dishonest claim for tax deduction.
Correct : A. wash sales
22. -------- means temporary halt of trade in stock exchanges whenever index moves
upward or downward beyond the specified limits
Correct : C. circuit breaking
23. Unsecured debentures are also known as...........
Correct : C. naked debentures
24. Non-voting shares were introduced by Companies (Amendment) bills in the year
Correct : A. 1997
25. in the case of -------- bonds, the value is inversely related to short term interest rates.
Correct : B. inverse float bonds
26. “D vs. P” system for government securities market means
Correct : A. delivery and payment settlement
27. Non banking financial institutions (NBFIs) are registered under
Correct : C. companies act
28. According to IFRS, the term financial asset includes
Correct : D. all the above
29. Which of the following is /are example of primary or direct financial instrument
Correct : D. debentures
30. Which of the following is /are example of Secondary or indirect financial instrument
Correct : C. post office saving deposit
31. A Non Banking Financial Institution
Correct : D. cannot accept demand deposit and cannot issue cheques
32. Kerala State Financial Enterprises ltd (KSFE) is an example of
Correct : C. nbfi
33. UTI, LIC etc are examples of
Correct : B. investment institution
34. SFC is an example of
Correct : D. development institution
35. Which of the following is /are not regulatory institutions
Correct : D. ifci
36. Which of the following is not a negotiable instrument?
Correct : C. fdr
37. ‘Follow on Public Offer’ is also known as
Correct : D. all of these
38. “Uberrimae Fidei” means
Correct : C. good faith
39. ........... is the oldest insurance
Correct : C. marine insurance
40. In ---------------- , insurable interest is enough at the time of loss
Correct : D. marine insurance
41. In life insurance, instalment policy is also known as
Correct : A. annuity policy
42. In insurance, “Causa Proxima” means
Correct : D. closely connected perils
43. _______ is a financial service which pooling risks of people
Correct : C. insurance
44. In India Insurance business are regulated by
Correct : C. irda
45. Except life insurance maximum term of other insurance is_______
Correct : A. 12 months
46. Central office of Life Insurance Corporation of India is located at
Correct : A. new delhi
47. There are........ associated companies of GIC
Correct : B. 4
48. “Native Stock and Share Brokers Association” is the old name of............
Correct : C. bse
49. General insurance business nationalised in the year----------
Correct : B. 1972
50. Principle of Indemnity does not apply to----------
Correct : C. life insurance
51. A nation consists of ————— economic units.
Correct : C. 3
52. ————— functions as an intermediary between savers and investors.
Correct : B. financial system
53. Financial markets are markets that deal in ————— assets and credit
instruments.
Correct : B. financial assets
54. ————— 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.
Correct : C. financial asset
55. RBI started functioning on —————.
Correct : A. 1-4-1935
56. ————— has the statutory powers to regulate and promote the Indian
capital market.
Correct : C. SEBI
57. Any company making a public issue of value of more than Rs. ———— is
required to file a draft offer document with SEBI.
Correct : C. 50 lakh
58. ————— Committee was constituted by SEBI for deciding about
derivatives trading.
Correct : A. L.C.Gupta
59. …………………… facilitate the transfer of funds from savers to the
borrowers.
Correct : C. financial market
60. Which of the following is a financial asset
Correct : C. share
61. ................... are drawn by contractors on the Govt. departments for the
goods supplied to them
Correct : B. supply bill
62. ..................... are an important instrument of short term borrowing by
the Govt.
Correct : C. Treasury bill
63. ..................... are short term deposits of specific maturity similar to fixed
deposits.
Correct : D. Certificate of deposit
64. ..................... is an unsecured short term promissory note issued by
creditworthy companies?
Correct : A. commercial paper
65. Discount and Finance House of India was set up in pursuance of the
recommendations of .....................Committee
Correct : C. Vaghul
66. ..................... has been set up mainly to provide a secondary market in
Govt. Securities
Correct : C. STCI
67. Right shares are offered to.....................
Correct : B. Existing shareholders
68. ..................... is a process of admitting securities for trading on a
recognised stock exchange.
Correct : C. listing
69. ..................... is a preferential independent broker who deals in securities
on his own behalf.
Correct : A. Jobber
70. The facility to carry forward a transaction from one settlement period to
another is known as ..................... transaction
Correct : A. Badla
71. The device adopted to make profit out of the differences in prices of a
security in to different markets is called.....................
Correct : C. arbitrage
72. The central depositary ..................... the security on behalf of the
investors
Correct : C. both a & b above
73. ........................ is an apex institution to coordinate, supplement and
integrate the activities of all existing specialised financial institutions.
Correct : B. IDBI
74. ICICI was set up in ........................
Correct : A. 1955
75. ........................ assists mainly to industrial undertakings in the private
sector
Correct : C. ICICI
76. LIC was established in........................
Correct : A. 1956
77. The process of managing the sales ledger of a client by a financial service
company is called
Correct : B. factoring
78. In India, the company which actually deals with the corpus of the mutual
fund is called
Correct : C. asset management company
79. ........... is a product whose value is derived from the value of underlying
asset
Correct : D. Derivatives
80. --------------is also known as “G.Secs”
Correct : C. Govt. Securities
81. ................ bonds permit the bond holder to invest the interest income
again in host bonds
Correct : D. Bunny bonds
82. What you mean by “STRIPS”
Correct : C. Separate Trading of Registered Interest and Principal of Securities
83. The idea of providing factoring services in India was first thought by ——
Correct : A. Vaghul committee
84. ---------- bills are drawn by contractors on the government departments
for the goods supplied by them.
Correct : D. Supply bills
85. The market which helps commercial banks to maintain their SLR
requirement is
Correct : A. Call loan market
86. The certificate which evidences an unsecured corporate debt of short term
maturity
Correct : B. Commercial paper
87. -------- is a permission to quote securities officially on the trading floor of
stock exchange
Correct : D. Listing
88. The facility to carry forward a transaction from one settlement period to
another is called --------- transaction
Correct : B. Badla
89. The device adopted to make profit out of price differences in two different
markets
Correct : D. Arbitrage
90. A person appointed by a stock broker to assist to him in the business of
securities trading at trading floor of stock exchanges is
Correct : C. Authorised clerk
91. Speculator who neither buy nor sell securities in the market, but still
trade on them are called
Correct : B. Stag
92. The process of holding the entire supply of a particular security with a
view to dictating terms is called
Correct : A. Cornering
93. When purchases of securities are more than sales of securities, the
market is called
Correct : A. Bullish
94. When sales of securities are more than purchases of securities, the
market is called
Correct : B. Bearish
95. --------- is the charges paid by a bull speculator to the other party for
obtaining carry over facility
Correct : B. Contango
96. --------- is the amount paid by bear to facilitate him to renew a bargain
until next settlement date
Correct : A. Backwardation
97. Those who provides finance for carry forward transactions in securities is
called
Correct : B. Tejiwalas
98. The speculator who observes very fast the trends and changes in market
is
Correct : D. Wolves
99. ------is the bear speculator who struggling to complete his commitments
because of wrong foot
Correct : B. Lame duck
100. An option (right) to purchase shares in future at predetermined price is
called