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This set of Indian Financial System Multiple Choice Questions & Answers (MCQs) focuses on Indian Financial System Set 12

Q1 | LIC was established in........................
  • 1956
  • 1964
  • 1989
  • 1935
Q2 | The process of managing the sales ledger of a client by a financial servicecompany is called
  • forfaiting
  • factoring
  • leasing
  • None of these.
Q3 | In India, the company which actually deals with the corpus of the mutualfund is called
  • sponsor company
  • trustee company
  • asset management company
  • Mutual fund Company.
Q4 | ........... is a product whose value is derived from the value of underlyingasset
  • Repo
  • T-bills
  • G.sec
  • Derivatives
Q5 | --------------is also known as “G.Secs”
  • Gold Traded Fund (GTF)
  • General Securities
  • Govt. Securities
  • Growth oriented fund
Q6 | ................ bonds permit the bond holder to invest the interest incomeagain in host bonds
  • Deep discount bond
  • Junk bonds
  • Bearer bond
  • Bunny bonds
Q7 | What you mean by “STRIPS”
  • Separate Trade Register of Initial Public Securities offer
  • Stock Trading Register of Interest and Principal Securities
  • Separate Trading of Registered Interest and Principal of Securities
  • Share Transfer and Registrar of Indian Public Securities issues
Q8 | The idea of providing factoring services in India was first thought by ——
  • Vaghul committee
  • Malhotra Committee
  • Tanden Committee
  • None of these
Q9 | ---------- bills are drawn by contractors on the government departmentsfor the goods supplied by them.
  • Usance bills
  • T-bills
  • Clean bills
  • Supply bills
Q10 | The market which helps commercial banks to maintain their SLRrequirement is
  • Call loan market
  • T-bills market
  • Acceptance market
  • Commercial bill market
Q11 | The certificate which evidences an unsecured corporate debt of short termmaturity
  • Certificate of Deposit
  • Commercial paper
  • Secured Premium Notes
  • Interbank participation Certificate
Q12 | -------- is a permission to quote securities officially on the trading floor ofstock exchange
  • Origination
  • Underwriting
  • Distribution
  • Listing
Q13 | The facility to carry forward a transaction from one settlement period toanother is called --------- transaction
  • Hand delivery
  • Badla
  • Cornering
  • Arbitrage
Q14 | The device adopted to make profit out of price differences in two differentmarkets
  • Cornering
  • Wash sales
  • Rigging
  • Arbitrage
Q15 | A person appointed by a stock broker to assist to him in the business ofsecurities trading at trading floor of stock exchanges is
  • Sub-broker
  • Commission broker
  • Authorised clerk
  • Remisiers
Q16 | Speculator who neither buy nor sell securities in the market, but stilltrade on them are called
  • Wolves
  • Stag
  • Bull
  • Bear
Q17 | The process of holding the entire supply of a particular security with aview to dictating terms is called
  • Cornering
  • Wash sales
  • Rigging
  • Arbitrage
Q18 | When purchases of securities are more than sales of securities, themarket is called
  • Bullish
  • Bearish
  • Grey
  • Odd
Q19 | When sales of securities are more than purchases of securities, themarket is called
  • Bullish
  • Bearish
  • Grey
  • Odd
Q20 | --------- is the charges paid by a bull speculator to the other party forobtaining carry over facility
  • Backwardation
  • Contango
  • Spread
  • Margin
Q21 | --------- is the amount paid by bear to facilitate him to renew a bargainuntil next settlement date
  • Backwardation
  • Contango
  • Spread
  • Margin
Q22 | Those who provides finance for carry forward transactions in securities iscalled
  • Tharawaniwalas
  • Tejiwalas
  • Mandiwalas
  • Badliwalas
Q23 | The speculator who observes very fast the trends and changes in marketis
  • Bull
  • Bear
  • Stag
  • Wolves
Q24 | ------is the bear speculator who struggling to complete his commitmentsbecause of wrong foot
  • Bull
  • Lame duck
  • Stag
  • Wolves
Q25 | An option (right) to purchase shares in future at predetermined price iscalled
  • Hedging
  • Put option
  • Push option
  • Call option