FINANCIAL MARKETS AND SERVICES

1.The following one is a financial asset: (a) Gold (b) Silver (c) Share (d) Land 2.Which one of the following is a cash asset? (a) (b) Share (c) Bond 3. Government bond is a: (a) (b) (c) (d) Short-term security Long-term security Medium term security Either short-term or long-term security. Deposit created out of loans

4. The NABARD was established in the year: (a) 1982 (b) 1985 (c) 1987 (d) 1989 5.STRIPS is associated with (a) (b) (c) Share (d) Stock 6.The foreign exchange dealings are controlled by (a) FERA (b) RBI (c) (d) FEMA Government of India Government security Debenture

7. Bills drawn and accepted payable after three months are called: (a) (b) (c) (d) Indigenous bills Usance bills Clean bills Supply bills

8.The market which helps commercial banks to maintain their SLR requirements is: (a) (b) (c) (d) Call loan market Discount market Acceptance market Commercial bill market

9.The certificate which evidences an unsecured corporate debt of short-term maturity is: (a) (b) (c) (d) Short-term loan certificate Certificate of deposit Inter-bank participation certificate Commercial paper

10.The major player in the Indian money market is: (a) (b) (c) (d) Co-operative banks Indigenous banks Commercial banks Reserve Bank of India

11. A treasury bill issued in favour of RBI alone is called: (a) (b) (c) (d) Ordinary treasury bill Regular treasury bill Special treasury bill Ad hoc bill.

12. The short-term deposit instrument issued by bank is called: (a) (b) (c) Commercial paper Certificate of deposit Inter-bank participation certificate

(d) Short-term deposit receipt

13. The unorganised sector of Indian money market is dominated by : (a) Commercial banks (b) (d) Chief funds Money lenders and indigenous bankers (c) Non-banking financial companies

14. The discount and finance house of India was established in the year: (a) 1988 (b) 1987 (c) 1994 (d) 1991 15. A promise to subscribe to a specified number of shares is called: (a) (b) (c) (d) Promised subscription Underwriting Origination Distribution

16 .Buying of securities in bulk and selling them in retail to the public in known as: (a) (b) (c) (d) Placement Offer for sale Rights issue Public issue

17. The method of issue suitable to first generation entreprenur is: (a) (b) (c) (d) Rights issue Public issue Placement Offer for sale

18. The document denoting the shares of a foreign company denominated in Indian currency is known as: (a) GDR (b) IDR (c) ADR (d) DDR.

19. The bonds that are sold at discount from maturity values are called: (a) (b) (c) (d) Option Bonds Bonds with warrants Deep Discount Bonds Zero Interest Bonds

20. A professional in issue management is: (a) Broker (b) (c) (d) Underwriter Merchant Banker Registrar

21. The intermediary who undertaken all activities connected with the new issue management is: (a) (b) (c) (d) Merchant banker Underwriter Co-ordinating banker Registar.

22. An order for the purchase of securities at a fixed price is known as: (a) (b) (c) (d) Limit order Open order Discretionary order Stop loss order.

23. Speculators who neither buy nor sell securities in the market, but still trade on them are called: (a) Wolves (b) Stags (c) (d) Bears. 24.The process of holding the entire supply of a particular security with a view to dictating terms is called: (a) (b) (c) (d) Wash sales Arbitrage Rigging the market Cornering. Lame Ducks

25.Under depository system, the allotment and credit of shares to the beneficiary amount should be completed within how many days from the date of closure of an issue? (a) 15 days (b) 7 days (c) 21 days (d) 30 days.