Quiznetik
Indian Banking and Financial System | Set 2
1. The market for extremely short period loan is called
A. Call loan market
B. short notice market
C. treasury bill market
D. commercial bill market
Correct : A. Call loan market
2. ---------- bills are drawn by contractors on the government departments for the goods supplied by them.
A. Usance bills
B. T-bills
C. Clean bills
D. Supply bills
Correct : D. Supply bills
3. ---------- is also known as ‘Industrial Paper”
A. Treasury bills
B. Commercial bills
C. Financial accommodation bills
D. Commercial paper
Correct : D. Commercial paper
4. Demand bills are also known as
A. Time bills
B. Sight bills
C. Kite bills
D. Wind bills
Correct : B. Sight bills
5. Usance bills are also known as
A. Time bills
B. Sight bills
C. Kite bills
D. Wind bills
Correct : A. Time bills
6. In India, indigenous bills popularly known as
A. Time bills
B. Hundis
C. Trade bills
D. Sight bills
Correct : B. Hundis
7. Which of the following are examples of Hundis in india
A. Shah jog
B. Namjog
C. Jokhani
D. All the above
Correct : D. All the above
8. Bills drawn and accepted payable after three months are called
A. Usance bills
B. T-bills
C. Clean bills
D. Supply bills
Correct : A. Usance bills
9. The market which helps commercial banks to maintain their SLR requirement is
A. Call loan market
B. T-bills market
C. Acceptance market
D. Commercial bill market
Correct : A. Call loan market
10. Bill Market Scheme in India was introduced in the year
A. 1972
B. 1952
C. 1969
D. 1982
Correct : B. 1952
11. Adhoc T-bills are always issued in favour of--------
A. State government
B. Commercial banks
C. Treasuries
D. RBI
Correct : D. RBI
12. The certificate which evidences an unsecured corporate debt of short term maturity
A. Certificate of Deposit
B. Commercial paper
C. Secured Premium Notes
D. Interbank participation Certificate
Correct : B. Commercial paper
13. Major players of Indian money market is
A. Central bank
B. Co-operative banks
C. Commercial banks
D. Indigenous banks
Correct : C. Commercial banks
14. -------- is the suitable method where small companies issue shares
A. Offer for sale
B. Private placement
C. Issue by prospectus
D. All the above
Correct : A. Offer for sale
15. Zero interest bonds are always issued
A. At premium
B. At discount
C. With detachable warrant
D. Any of the above
Correct : B. At discount
16. -------- is a guarantee for marketability of shares
A. Listing
B. Underwriting
C. Registration
D. Issue by prospectus
Correct : B. Underwriting
17. Which one of the following is /are not function of NIM
A. Origination
B. Underwriting
C. Distribution
D. Listing
Correct : D. Listing
18. BOLT was introduced by BSE in the year
A. 1990
B. 1995
C. 1992
D. 1999
Correct : B. 1995
19. -------- is a permission to quote securities officially on the trading floor of stock exchange
A. Origination
B. Underwriting
C. Distribution
D. Listing
Correct : D. Listing
20. The number of shares which are less than market lots are called
A. Grey lot
B. Odd lot
C. Tag lot
D. Tied lot
Correct : B. Odd lot
21. Rolling Settlement system was introduced by SEBI in the year
A. 1994
B. 1998
C. 1996
D. 1999
Correct : B. 1998
22. The facility to carry forward a transaction from one settlement period to another is called --------- transaction
A. Hand delivery
B. Badla
C. Cornering
D. Arbitrage
Correct : B. Badla
23. The device adopted to make profit out of price differences in two different markets
A. Cornering
B. Wash sales
C. Rigging
D. Arbitrage
Correct : D. Arbitrage
24. A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is
A. Sub-broker
B. Commission broker
C. Authorised clerk
D. Remisiers
Correct : C. Authorised clerk
25. ------------- is also known as Remisiers and Half-commission man
A. Sub-broker
B. Commission broker
C. Authorised clerk
D. Jobbers
Correct : A. Sub-broker
26. An order for the purchase of securities at a fixed price is known as
A. Limit order
B. Open order
C. Discretionary order
D. Stop loss order
Correct : A. Limit order
27. Speculator who neither buy nor sell securities in the market, but still trade on them are called
A. Wolve
B. Stag
C. Bull
D. Bear
Correct : B. Stag
28. The process of holding the entire supply of a particular security with a view to dictating terms is called
A. Cornering
B. Wash sales
C. Rigging
D. Arbitrage
Correct : A. Cornering
29. ------------ market deals in unlisted securities
A. Blue chip market
B. Bear market
C. Grey market
D. Bull market
Correct : C. Grey market
30. When purchases of securities are more than sales of securities, the market is called
A. Bullish
B. Bearish
C. Grey
D. Odd
Correct : A. Bullish
31. When sales of securities are more than purchases of securities, the market is called
A. Bullish
B. Bearish
C. Grey
D. Odd
Correct : B. Bearish
32. --------- is the charges paid by a bull speculator to the other party for obtaining carry over facility
A. Backwardation
B. Contango
C. Spread
D. Margin
Correct : B. Contango
33. --------- is the amount paid by bear to facilitate him to renew a bargain until next settlement date
A. Backwardation
B. Contango
C. Spread
D. Margin
Correct : A. Backwardation
34. -------- is the process of selling securities without owning them
A. Short selling
B. Long selling
C. Margin trading
D. Prise rigging
Correct : A. Short selling
35. Bull speculators are also known as
A. Tharawaniwalas
B. Tejiwalas
C. Mandiwalas
D. Badliwalas
Correct : B. Tejiwalas
36. Bear speculators are also known as
A. Tharawaniwalas
B. Tejiwalas
C. Mandiwalas
D. Badliwalas
Correct : C. Mandiwalas
37. Another name of jobber is
A. Tharawaniwalas
B. Tejiwalas
C. Mandiwalas
D. Badliwalas
Correct : A. Tharawaniwalas
38. Those who provides finance for carry forward transactions in securities is called
A. Tharawaniwalas
B. Tejiwalas
C. Mandiwalas
D. Badliwalas
Correct : B. Tejiwalas
39. The speculator who observes very fast the trends and changes in market is
A. Bull
B. Bear
C. Stag
D. Wolves
Correct : D. Wolves
40. ------is the bear speculator who struggling to complete his commitments because of wrong foot
A. Bull
B. Lame duck
C. Stag
D. Wolves
Correct : B. Lame duck
41. An option (right) to purchase shares in future at predetermined price is called
A. Hedging
B. Put option
C. Push option
D. Call option
Correct : D. Call option
42. An option (right) to sell shares in future at predetermined price is called
A. Hedging
B. Put option
C. Pull option
D. Call option
Correct : B. Put option
43. ---------- refers to the process of creating an artificial condition in market in order to push price of particular shares.
A. Cornering
B. Arbitrage
C. Option deal
D. Rigging
Correct : D. Rigging
44. An attempt to gaining short term profit from the price difference or movements of securities are called
A. Investment
B. Speculation
C. Hedging
D. All the above
Correct : B. Speculation
45. Companies (Amendment) bill-1999 restricts buy back of shares up to........... of the paid up capital
A. 50%
B. 20%
C. 25%
D. 60%
Correct : B. 20%
46. SIDBI is fully owned subsidiary of
A. IDBI
B. RBI
C. SEBI
D. IFCI
Correct : A. IDBI
47. “AMBI” stand for
A. Association of Management of Banks in India
B. Association of Merchant banks in India
C. Association of Modern Banks in India
D. Automated Mechanism for Borrowing and Investment
Correct : B. Association of Merchant banks in India
48. In listed securities, “Group A shares” are also known as
A. Specified shares
B. Cleared securities
C. Non- specified shares
D. Both a & b above
Correct : D. Both a & b above
49. In listed securities, “Group B shares” are also known as
A. Specified shares
B. Non-Cleared securities
C. Non- specified shares
D. Both b & c above
Correct : D. Both b & c above
50. Odd lot shares are coming under -------- of listed securities
A. Group A
B. Group B
C. Group C
D. Any of the above
Correct : C. Group C
51. ALBM (Automated Lending &Borrowing Mechanism) was introduced by
A. NSDL
B. SEBI
C. NSCCL
D. CDSL
Correct : C. NSCCL
52. under public issue of shares, reservation for permanent employees
A. 10%
B. 25%
C. 15%
D. 50%
Correct : A. 10%
53. The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956
A. Sec.75
B. Sec.79
C. Sec.81
D. Sec.91
Correct : C. Sec.81
54. ----------- is a method of cancellation of shares
A. Book building
B. Bonus issue
C. Buy back
D. Reissue
Correct : C. Buy back
55. Which of the following is / are method of Buy back of shares
A. Tender offers
B. Open offers
C. Dutch Auction
D. All the above
Correct : D. All the above
56. Over the Counter Exchange of India commenced operation in the year
A. 1988
B. 1992
C. 1995
D. 1989
Correct : B. 1992
57. Members of the OTCEI are---------- only
A. Individuals
B. Corporates
C. Financial institution
D. Banks
Correct : B. Corporates
58. The whole sale market segment for NSE is meant for
A. Corporate securities
B. Govt.securities
C. Securities of MNCs
D. Securities of Financial Institutions
Correct : B. Govt.securities
59. As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------
A. Discount
B. Premium
C. Par
D. any of the above
Correct : C. Par
60. National Stock Exchange (NSE) established in the year
A. 1990
B. 1992
C. 1995
D. 1999
Correct : B. 1992
61. Method of trading in NSE is
A. Floor based- Order driven
B. Screen based- Code driven
C. Screen based - Order driven
D. Floor based - Quote driven
Correct : C. Screen based - Order driven
62. Method of trading in OTCEI is
A. Floor based- Order driven
B. Screen based- Code driven
C. Screen based - Order driven
D. Floor based - Quote driven
Correct : B. Screen based- Code driven
63. -------- are eligible to list in OTCEI
A. Small companies
B. Large companies
C. Medium size companies
D. Small and Medium size companies which are not listed in any other stock exchange
Correct : D. Small and Medium size companies which are not listed in any other stock exchange
64. Discount and Finance House of India (DFHI) mainly deals in
A. Commercial bills
B. Corporate securities
C. Treasury bills
D. Commercial papers
Correct : C. Treasury bills
65. -------- of shares is the first step in depository process
A. Mutualisation
B. Mobilisation
C. Immobilisation
D. Rematerialisation
Correct : C. Immobilisation
66. In depository system, --------- is a link between depository and the owner.
A. Depository participant
B. Register and Transfer Agent
C. Issuer
D. Custodian.
Correct : A. Depository participant
67. “A central location for keeping securities on deposit” is
A. Stock exchange
B. Investment bank
C. Depository
D. Merchant banks
Correct : C. Depository
68. The group of shares which are not permitted for short selling are
A. A group
B. B group
C. T group
D. None of these
Correct : C. T group
69. --------- group includes shares of companies which have failed to comply with listing requirements
A. A group
B. B group
C. T group
D. Z group
Correct : D. Z group
70. In listed scrips, --------- group includes small cap stocks.
A. S group
B. TS group
C. T group
D. Z group
Correct : A. S group
71. Shares of well established and financially sound compnies,with very little investment risk and good history of earnings is known as
A. Alpha shares
B. Blue chip shares
C. Star stock
D. Beta stock
Correct : B. Blue chip shares
72. In a stock exchange where the ownership, management and trading are concentrated in a single group, it is called
A. Mutual exchange
B. Recognised exchange
C. Dominant exchange
D. Un -recognised exchange
Correct : A. Mutual exchange
73. In India, currently method of calculation of stock indexes is
A. Free float market capitalisation
B. Full float market capitalisation
C. Fixed float market capitalisation
D. Minimum float market capitalisation
Correct : A. Free float market capitalisation
74. Fully automated screen based trading system in NSE is known as
A. BOLT
B. ALBM
C. BLISS
D. NEAT
Correct : D. NEAT
75. The Chief promoter of National Securities Depository Limited (NSDL) is
A. NABARD
B. BSE
C. NSCCL
D. NSE
Correct : D. NSE
76. The Chief promoter of Central Depository Services Limited CDSL) is
A. NABARD
B. BSE
C. NSCCL
D. NSE
Correct : B. BSE
77. The third largest stock exchange in the world is
A. NSE
B. BSE
C. NASDAQ
D. USE (United Stock Exchange)
Correct : A. NSE
78. In the index “CNX Nifty”, C stands for
A. Central
B. Credit
C. CRISIL
D. Cumulative
Correct : C. CRISIL
79. The dollar version of Index of BSE is
A. Defty
B. Dollex
C. Both the above
D. None
Correct : B. Dollex
80. In BSE, T+2 rolling settlement began in the year
A. 2002
B. 2003
C. 2001
D. 1995
Correct : A. 2002
81. In settlement T+2, ‘T’ stands for
A. Trade time
B. Trade day
C. Trade terms
D. Time for settlement
Correct : B. Trade day
82. Which one of the following is an example of derivative?
A. Warrants
B. Baskets
C. Swaptions
D. All of these
Correct : D. All of these
83. The process in which illiquid assets are converted into marketable securities is known as
A. Mutualisation
B. Dematerialisation
C. Rematerialisation
D. Securitisation
Correct : D. Securitisation
84. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year
A. 1992
B. 2002
C. 2005
D. 2000
Correct : B. 2002
85. In security market, “ASBA” stands for
A. Application Supported by Blocked Amount
B. Automated Security Borrowing Arrangement
C. Active Securities Buying Agreement
D. Automatic Security Buying Assistance
Correct : A. Application Supported by Blocked Amount
86. In financial circle, the name “Dalal Street” is used synonyms to.........
A. BSE
B. NASDAQ
C. NSE
D. OTCEI
Correct : A. BSE
87. The name “Wall Street” is used to synonyms to..........
A. Bombay Stock Exchange
B. NASDAQ
C. National Stock Exchange
D. New York Stock Exchange
Correct : D. New York Stock Exchange
88. Credit rating indicates -------- of a company
A. Financial status
B. Overall efficiency
C. Management efficiency
D. All the above
Correct : A. Financial status
89. Credit rating is only a / an..............
A. Opinion
B. Recommendation
C. Suggestion
D. Advice
Correct : A. Opinion
90. Which of the following is not a credit rating agency?
A. CRISIL
B. ICRA
C. DCR India
D. None of these
Correct : D. None of these
91. At present, how many Non-scheduled banks are functioning in India
A. 2
B. 5
C. 1
D. 0
Correct : D. 0
92. Investment Information and Credit Rating Agency of India (IICRA) is a
A. Private company
B. Public company
C. Govt. Company
D. Statutory company
Correct : B. Public company
93. --------- variety of mutual fund is known as “Nest Eggs”
A. Balanced Funds
B. Fund of funds
C. Money Market Mutual fund
D. Growth oriented funds
Correct : B. Fund of funds
94. Generally mutual funds are of
A. High risk
B. Risk free
C. Low risk
D. Any of the above
Correct : C. Low risk
95. The corpus of funds and its duration is fixed in case of ------- fund
A. Open ended
B. Balanced
C. Close ended
D. Income fund
Correct : C. Close ended
96. The market performance of mutual fund can be judged on the basis of
A. Net asset value or intrinsic value
B. Capital appreciation
C. Regular / stable income
D. Any of these
Correct : D. Any of these
97. ----------- is the regulator of mutual funds in India
A. RBI
B. IRDA
C. SEBI
D. Both SEBI and GOI
Correct : D. Both SEBI and GOI
98. ------ is the venture capital assistance at the stage where the project started to fetch profit but not reached in its full efficiency
A. Start up capital
B. Mezzanine capital
C. Bridge capital
D. Seed capital
Correct : B. Mezzanine capital
99. In ----------leasing, the risk of obsolescence is assumed by the lessee
A. Financial lease
B. Operating lease
C. Both the above
D. None the above
Correct : A. Financial lease
100. ----------- is a tripartite lease arrangement
A. Financial lease
B. Operating lease
C. Leverage lease
D. Sale and lease back
Correct : C. Leverage lease