1. Accommodation bills are also known as ..................... bills
Correct : D. both a & b
2. Adhoc treasury bills are issued in favour of the ..................... only
Correct : B. RBI
3. ..................... are short term deposits of specific maturity similar to fixed deposits.
Correct : D. Certificate of deposit
4. ..................... is an unsecured short term promissory note issued by creditworthy
companies?
Correct : A. commercial pape
5. Discount and Finance House of India was set up in .....................
Correct : B. 1988
6. Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee
Correct : C. Vaghul
7. ..................... has been set up mainly to provide a secondary market in Govt. Securities
Correct : C. STCI
8. Right shares are offered to.....................
Correct : B. Existing shareholders
9. ..................... is the suitable method where small companies issue shares
Correct : B. placement
10. ..................... is a process of admitting securities for trading on a recognised stock exchange.
Correct : C. listing
11. ..................... is a preferential independent broker who deals in securities on his own behalf.
Correct : A. Jobber
12. The facility to carry forward a transaction from one settlement period to another is known as
..................... transaction
Correct : A. Badla
13. The device adopted to make profit out of the differences in prices of a security in to different
markets is called.....................
Correct : C. arbitrage
14. The central depositary ..................... the security on behalf of the investors
Correct : C. both a & b above
15. ..................... of shares in the first step in the depository process
Correct : D. immobilisation
16. . ..................... is the link between the depository and the owner
Correct : B. Depository participant
17. ..................... issues does not bring in any fresh capital
Correct : D. bonus
18. Prospectus is not issued in
Correct : B. private placement
19. An issuer need not file an offer document in case of
Correct : B. preferential allotment
20. An issuer can launch an IPO within.....................
Correct : B. 6 months
21. An issue of a minimum size of Rs. ..................... crore is a mega issue
Correct : B. 100
22. Financial institutions are also known as ........................
Correct : B. Financial intermediaries
23. ........................ is the first development financial institution in India.
Correct : C. IFCI
24. Management Development Institute (MDI) was set up by ........................
Correct : C. IFCI
25. IDBI was established in ........................
Correct : D. 1964
26. ........................ is an apex institution to coordinate, supplement and integrate the
activities of all existing specialised financial institutions.
Correct : B. IDBI
27. Hedging through futures contracts
Correct : B. eliminates profit maximization potential
28. In what city are the two largest commodities exchanges?
Correct : A. Chicago
29. The financial futures market has evolved over recent time because of
Correct : D. all of the above
30. While hedging through interest rate futures reduces or eliminates the risk of loss, it also
Correct : C. eliminates the possibility of an abnormal gain.
31. Margin requirements on commodities contracts
Correct : C. typically, are 2 to 10 percent of the value of the contract.
32. Which of the following can be the underlying for a commodity derivative contract?
Correct : C. Gold
33. Daily mark to market settlement is done ------------
Correct : A. Till the date of contract expiry
34. ----------is the actual process of exchanging money and goods.
Correct : B. Settlement
35. -----------work at making profits by taking advantage of discrepancy between prices of the
same product across different markets.
Correct : A. Arbitragers
36. Commodity exchanges enable producers and consumer to hedge their -----------given the
uncertainty of the future.
Correct : D. price risk
37. Which of the following is not true about the national level exchanges?
Correct : C. Offers single commodity for trading
38. ----------- Exchanges provide real time, online, transparent and vibrant spot platform for
commodities.
Correct : A. Electronic Spot
39. ----------can only trade through their account or on account of their clients and however clear
their trade through PCMs/STCMs.
Correct : B. Trading Member
40. The minimum net worth requirement for PCM on the NCDEX is-----------.
Correct : C. 5000 Lakh
41. Members of commodity market can opt to meet the security deposit requirement by way of --
---------
Correct : D. All of the above
42. In the case of certain commodities like gold and silver, delivery is staggered over last ------ days of the contract.
Correct : C. Five
43. Unit of trading for Wheat at NCDEX is---------
Correct : D. 10 MT
44. At present how many national commodity exchanges are operating in India?
Correct : C. 6
45. Regulatory body of commodity market in India is-------------
Correct : A. FMC
46. Forward Market Commission (FMC) established in the year-----------
Correct : C. 1953
47. FMC merged with SEBI in the year------------
Correct : C. 2015
48. The year of establishment of National Multi- Commodity Exchange (NMCE) was---------
Correct : A. 2002
49. The Headquarters of NMCE is -------------
Correct : B. Ahmedabad
50. -----------is the world’s largest exchange in silver and gold
Correct : B. MCX
51. ---------------holds 86% market share of commodity exchange in India
Correct : B. MCX
52. Headquarters of Multi Commodity Exchange in India (MCX) is ----------
Correct : C. Mumbai
53. NCDEX stands for-------------------
Correct : B. National Commodity and Derivatives Exchange
54. In ------------ NSE and BSE launched trading in commodities.
Correct : C. 2018
55. The oldest Commodity market in India is---------
Correct : A. NMCE
56. In the year 2018 NMCE merged with -----------
Correct : C. ICEX
57. ACE Derivatives Exchange Ltd is the commodity exchange developed in---------
Correct : D. None of these
58. Which of the following statements is false?
Correct : B. Bond prices remain fixed over time.
59. Which of the following statements is true?
Correct : C. Bonds are usually less liquid than stocks.
60. Most bonds:
Correct : C. are interest-bearing obligations of governments or corporations.
61. Which of the following is not an advantage of investing in bonds?
Correct : A. Bonds have unlimited profit potential.
62. Which of the following is a capital market security?
Correct : C. Federal agency bonds.
63. Which of the following is a money market security?
Correct : A. Repurchase agreements.
64. Corporations borrow for the short term by issuing:
Correct : C. commercial paper.
65. What is used to quote the rates on Eurodollar deposits?
Correct : D. LIBOR.
66. Which of the following provides income that is fully exempt from taxation for the individual
investor?
Correct : A. Municipal bonds.
67. Which of the following is a residual claim on a firm’s assets?
Correct : B. Common stock.
68. Which of the following occurs four trading days before the date of record?
Correct : D. Ex-dividend date.
69. Which of the following types of assets is least risky?
Correct : A. Short-term corporate bonds
70. Which of the following types of assets offers the highest expected return?
Correct : A. Stocks.
71. Which of the following types of financial assets represents a creditor relationship with an
entity?
Correct : D. Bonds.
72. Which of the following sequences lists financial assets from least risky to most risky?
Correct : D. Bonds, stocks, derivatives.
73. Which of the following sequences lists financial assets from lowest expected return to
highest expected return?
Correct : A. Bonds, stocks, derivatives.
74. Which of the following types of assets represents ownership interest in a corporation?
Correct : B. Stocks.
75. Financial assets are also called:
Correct : A. securities.
76. If people are willing to lend at 7% when inflation is 2% and continue to lend the same
amounts when inflation is 4% and interest rates have risen to 8%, they are assumed to be subject to:
Correct : D. Money illusion
77. The reason that finding the present value of a future sum of money requires us to discount
it, is that:
Correct : D. Waiting deprives us of its use
78. If interest rates rise, the present value of any future earnings is bound to:
Correct : A. Fall
79. In the loanable fund’s theory of interest determination, an increase in the productivity of
capital equipment should lead to:
Correct : C. Higher interest rates
80. If savers decide to save more, ceteris paribus, the loanable funds theory predicts:
Correct : D. A reduction in interest rates and more investment
81. According to the Fisher hypothesis, the nominal rate of interest consists of:
Correct : C. A stable real rate plus a variable inflation premium
82. According to the liquidity preference theory of interest, an increase in uncertainty, other
things being equal, will:
Correct : D. Raise interest rates
83. The ability of central banks to influence short-term interest rates rests upon:
Correct : B. Their role as lenders of last resort
84. A central bank which sets the short-term rate of interest must:
Correct : B. Meet the resulting demand for reserves
85. According to --------- theory of interest, the rate of Interest is the price of credit which is
determined by the demand and supply for loanable funds.
Correct : A. Loanable Fund theory
86. According to ------- theory interest arises on account of the productivity of capital.
Correct : B. Productivity theory
87. The Time- Preference Theory of Interest was expounded by-----------
Correct : A. John Rae
88. ----------- defined Interest as “an index of the community’s preference for a dollar of
present over a dollar of future income.”
Correct : A. Fisher
89. According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital.
Correct : D. Classical theory
90. Loanable Fund theory is also known as-----------
Correct : B. Neo-classical theory
91. Neo- Classical theory of interest was expounded by------------
Correct : C. Knot Wicksel
92. According to Keynes, Interest is purely a ‘monetary phenomenon’.
Correct : C. JM Keynes
93. Who propounded liquidity preference theory of interest?
Correct : C. JM Keynes
94. ----------- is called as “Real Theory of Interest”
Correct : A. Classical theory
95. Technical consultancy Organisations were set up by........................
Correct : B. IDBI
96. ICICI was set up in ........................
Correct : A. 1955
97. ........................ assists mainly to industrial undertakings in the private sector
Correct : C. ICICI
98. LIC was established in........................
Correct : A. 1956
99. UTI was set up in the year ........................