Quiznetik

Indian Financial System | Set 3

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

Correct : D. Call option