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----------