Indian Financial System Set 9
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This set of Indian Financial System Multiple Choice Questions & Answers (MCQs) focuses on Indian Financial System Set 9
Q1 | In hire purchase depreciation can be claimed by the
- hirer
- vendor
- financiers
- all of these
Q2 | A merchant bank can claim a charge ------- % as the commission for the whole issue
- 5%
- 2.5%
- 0.5%
- 0.25%
Q3 | Which of the following is not a quantitative credit control tool of RBI?
- bank rate
- open market operation
- slr
- margin requirements
Q4 | Which of the following is a selective (qualitative) credit control method?
- bank rate
- open market operation
- variable reserve ratio
- credit rationing
Q5 | Currency notes of rupee one and other lower subsidiary coins are issued by
- rbi
- commercial banks
- ministry of finance
- bank note press
Q6 | American Depository Receipts (ADRs) are issuing by
- indian company
- american company
- overseas depository
- international exchange
Q7 | ----------- is the process of converting security in electronic form into physical form
- rematerialisation
- dematerialisation
- demutualisation
- mutualisation
Q8 | ----------- is dealing in securities done by those who having access to price sensitiveinformation.
- margin trading
- insider trading
- price rigging
- wash sales
Q9 | --------- is a calculated move with an expectation to reap huge profit from marketfluctuations
- gambling
- speculation
- genuine investment
- none of the above
Q10 | ---------- speculators are optimistic in nature
- bull
- bear
- stag
- wolves
Q11 | ---------- speculators are Pessimistic in nature
- bull
- bear
- stag
- wolves
Q12 | The scheme in which company can allot shares not more than 15% of the issue size, tothe public in addition to the shares already offered- is called
- right issue
- esops
- green shoe option
- bonus issue
Q13 | The merchant banker coordinating a public issue is called as
- syndicator
- lead manager
- post issue manager
- none of these
Q14 | -------- is a shortened form of prospectus
- red herring prospectus
- abridged prospectus
- statement in lieu of prospectus
- shelf prospectus
Q15 | -------- is an offer document is used in public issue made under book building method.
- red herring prospectus
- abridged prospectus
- statement in lieu of prospectus
- shelf prospectus
Q16 | In technical sense, short sellers (bears) will be “squeezed” through
- wash sales
- cornering
- rigging
- arbitrage
Q17 | ---------- is known as ‘Traffic in securities’
- wash sales
- cornering
- rigging
- arbitrage
Q18 | A system of security trade in which one is allowed to invest in excess of his financialcapacity by borrowing funds
- margin trading
- cornering
- rigging
- arbitrage
Q19 | Which of the following speculative transactions are unfair and prohibited?
- margin trading
- option deals
- rigging
- arbitrage
Q20 | Which of the following is not a prohibited act in security market?
- insider trading
- price rigging
- cornering
- margin trading
Q21 | ------- is undertaken for making a dishonest claim for tax deduction.
- wash sales
- price rigging
- cornering
- margin trading
Q22 | -------- means temporary halt of trade in stock exchanges whenever index movesupward or downward beyond the specified limits
- laddering
- cornering
- circuit breaking
- side by siding
Q23 | Unsecured debentures are also known as...........
- registered debentures
- bearer debentures
- naked debentures
- collateral debentures
Q24 | Non-voting shares were introduced by Companies (Amendment) bills in the year
- 1997
- 1999
- 2000
- 2002
Q25 | in the case of -------- bonds, the value is inversely related to short term interest rates.
- fixed rate bonds
- inverse float bonds
- perpetual bonds
- option bonds