33. ................ bonds permit the bond holder to invest the interest income again in host bonds
Correct : D. Bunny bonds
34. ...............bonds are high risk and high yield bonds developed in USA
Correct : B. Junk bonds
35. In Capital market, ‘ESOP’ stands for
Correct : C. Employee stock Option Plan
36. In financial market, QIPs Stands for
Correct : C. Qualified Institutional Placement
37. What you mean by “STRIPS”
Correct : C. Separate Trading of Registered Interest and Principal of Securities
38. Gilt Edged Securities are
Correct : A. Govt. Securities
39. In India, forfaiting services are offered by
Correct : C. EXIM bank
40. The small investors’ gateway to enter into big companies is —————
Correct : D. Mutual fund
41. Money Market mutual fund is also known as---------------
Correct : C. Income fund
42. ————— fund invests in highly liquid securities like commercial paper.
Correct : D. MMMF
43. The idea of providing factoring services in India was first thought by —————
Correct : A. Vaghul committee
44. The market for extremely short period loan is called
Correct : A. Call loan market
45. ---------- bills are drawn by contractors on the government departments for the goods supplied
by them.
Correct : D. Supply bills
46. ---------- is also known as ‘Industrial Paper”
Correct : D. Commercial paper
47. Demand bills are also known as
Correct : B. Sight bills
48. Usance bills are also known as
Correct : A. Time bills
49. In India, indigenous bills popularly known as
Correct : B. Hundis
50. Which of the following are examples of Hundis in india
Correct : D. All the above
51. Bills drawn and accepted payable after three months are called
Correct : A. Usance bills
52. The market which helps commercial banks to maintain their SLR requirement is
Correct : A. Call loan market
53. Bill Market Scheme in India was introduced in the year
Correct : B. 1952
54. Adhoc T-bills are always issued in favour of--------
Correct : D. RBI
55. The certificate which evidences an unsecured corporate debt of short-term maturity
Correct : B. Commercial paper
56. Major players of Indian money market is
Correct : C. Commercial banks
57. -------- is the suitable method where small companies issue shares
Correct : A. Offer for sale
58. Zero interest bonds are always issued
Correct : B. At discount
59. -------- is a guarantee for marketability of shares
Correct : B. Underwriting
60. Which one of the following is /are not function of NIM
Correct : D. Listing
61. BOLT was introduced by BSE in the year
Correct : B. 1995
62. -------- is a permission to quote securities officially on the trading floor of stock exchange
Correct : D. Listing
63. The number of shares which are less than market lots are called
Correct : B. Odd lot
64. Rolling Settlement system was introduced by SEBI in the year
Correct : B. 1998
65. The facility to carry forward a transaction from one settlement period to another is called ---
------ transaction
Correct : B. Badla
66. The device adopted to make profit out of price differences in two different markets
Correct : D. Arbitrage
67. 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
68. ------------- is also known as Remisiers and Half-commission man
Correct : A. Sub-broker
69. An order for the purchase of securities at a fixed price is known as
Correct : A. Limit order
70. Speculator who neither buy nor sell securities in the market, but still trade on them are called
Correct : B. Stag
71. The process of holding the entire supply of a particular security with a view to dictating terms
is called
Correct : A. Cornering
72. ------------ market deals in unlisted securities
Correct : C. Grey market
73. When purchases of securities are more than sales of securities, the market is called
Correct : A. Bullish
74. When sales of securities are more than purchases of securities, the market is called
Correct : B. Bearish
75. --------- is the charges paid by a bull speculator to the other party for obtaining carry over
facility
Correct : B. Contango
76. _______ is a link between savers & borrowers, helps to establish a link between savers &
investors
Correct : B. Financial market
77. Which of the following is the function of financial market?
Correct : D. All of the above
78. __________ is the organisations, institutions that provide long term funds.
Correct : A. Capital market
79. When securities are allotted to institutional investors & some selected individuals is
referred to as _________.
Correct : C. Private placement
80. Stock exchange is known as __________ market for securities.
Correct : B. Secondary market
81. _________ is a market for lending & borrowing of short term funds.
Correct : A. Money market
82. ____________ is also called zero coupon bond.
Correct : C. Treasury bills
83. Which of the following are the instruments of money market?
Correct : A. Call money
84. The short term financial instruments traded in money market is commonly called
Correct : D. Commercial Paper
85. Which of the following statements is not true with regard to money market?
Correct : B. It is situated at specific locations.
86. Which of the following statements is not true with regard to Treasury bills?
Correct : C. They carry high risk of default.
87. Which of the following statements is not true with regard to Commercial paper?
Correct : A. Is a long-term unsecured promissory note with a fixed maturity period.
88. Which of the following statements is not true with regard to Call money?
Correct : C. There is a direct relationship between call rates and other short-term money market instruments.
89. Which of the following statements is not true with regard to capital market?
Correct : A. The funds are raised for a short period of time.
90. Which of the following statements is not true with regard to primary market?
Correct : A. Is also known as the old issues market.
91. Which of the following statements is not true with regard to stock exchange?
Correct : B. It curbs the marketability of the securities.
92. Which of the following is not a protective function of stock exchange?
Correct : C. Regulation of takeover bids by companies.
93. Raj Enterprises wishes to invest ₹1,10,000 in treasury bills. What is the maximum
number of treasury bills it can buy with this fund?
Correct : C. 4
94. Which of the following statements is true with regard to financial markets?
Correct : D. All of the above
95. The allocated function is performed by
Correct : D. All of the above
96. It is a market for short-term funds which deals in monetary assets whose period of
maturity is up to one year.
Correct : B. Secondary market
97. It is an instrument of short-term borrowing by the Government of India maturing in less
than one year.
Correct : C. Call money
98. Who issues a treasury bill?
Correct : A. Any nationalised bank
99. Suppose an investor purchases a 91 days Treasury bill with a face value of ₹2,00,000 for ₹1,92,000. By holding the bill until the maturity date, the investor receives ₹2,00,000. What is the amount of interest received by him?
Correct : B. ₹80,000
100. It is used as an alternative to bank borrowing for large and creditworthy companies,