Financial Markets And Institutions Set 14
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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 14
Q1 | The demand for heavy loans can cause
- excess funds for banks
- deficiencies for banks
- organized reservation
- competitive reservations
Q2 | In primary markets, first time issued shares to be publicly traded in stock markets is considered as
- traded offering
- public markets
- issuance offering
- initial public offering
Q3 | Transaction cost of trading of financial instruments in centralized market is classified as
- flexible costs
- low transaction costs
- high transaction costs
- constant costs
Q4 | Stocks or shares that are sold to investors without transacting through financial institutions are classified as
- direct transfer
- indirect transfer
- global transfer
- pension transfer
Q5 | Type of financial security which have linked payoff to another issued security is classified as
- linked security
- derivative security
- payable security
- non-issuing security
Q6 | In primary markets, property of shares which made it easy to sell newly issued security isconsidered as
- increased liquidity
- decreased liquidity
- money flow
- large funds
Q7 | Liquidity status of certificate of deposit which is more negotiable is considered as
- certified liquidity
- term liquidity
- more liquid
- less liquid
Q8 | Commercial paper issued with low interest rate thus commercial paper are categorized as
- payables rating
- commercial rating
- poor credit rating
- better credit rating
Q9 | Maximum maturity days of holding commercial paper are
- 170 days
- 270 days
- 120 days
- 5 days
Q10 | In borrowing and lending of federal funds, federal funds rate is result of function between
- assets and liability
- cost and marketing
- supply and demand
- income and expense
Q11 | A "hybrid" fund is one that:
- invests in both bonds and stocks
- started as a closed-end investment company, but changed to a mutual fund
- has different "loads" for different classes of investors in the fund
- can serve as an investment vehicle, but also provides check-writing privileges.
Q12 | The first mutual fund was established in the:
- 1890s
- 1920s
- 1940s
- 1960s
Q13 | A mutual fund that invests solely in stocks would be categorized as a/an:
- bond fund
- fixed income fund
- money market fund
- equity fund
Q14 | A large number (about 25%) of long-term mutual funds are _____________ funds, buying securities in proportions similar to those of a major stock index.
- small cap
- large cap
- fixed income
- index
Q15 | The bulk of the nation's money supply is created within the private banking system and is sometimes called:
- inside money
- net money
- base money
- outside money
Q16 | A type of bank account designed to compete with money market mutual funds, and having limited check-writing services, is known as:
- wholesale CDs
- demand deposit
- repurchase agreement
- NOW account
Q17 | __________would encompass fees received by the bank, but not revenues comingfrom interest charges on loans.
- Net interest margin
- Spread
- Non interest income
- Non interest expense
Q18 | Another name used for a bank income statement is:
- report of income
- statement of retained earnings
- overhead efficiency report
- report of condition
Q19 | Which of the following is an advantage to investors of an open-end mutual fund?
- Once all the shares have been sold, the investor does not have to put in more money.
- The investors can sell their shares in the over-the-counter market with low transaction fees.
- The fund agrees to redeem shares at any time.
- The market value of the fund’s shares may be higher than the value of the assets held by the fund.
Q20 | In --------------- Securities share bond debentures are offered to the public for subscription for raising capital or fund.
- Prime Securities
- Public Securities
- Preferred Securities
- Primary Securities
Q21 | The agreement which incurs the transaction between two parties and promise held that secondparty will sell security at specific maturity is classified as
- repurchasing commercial notes
- repurchase bills
- purchase agreement
- reverse repurchase agreement
Q22 | Which among the following was set up by RBI in 1988 jointly with public sector banks and all India Financial Institutions to develop the money market & provide liquidity to money market instruments as sequel to Vaghul Working Group recommendations?
- Discount and Finance House of India Ltd (DFHI)
- Central Depository Services (India) Limited (CDSL)
- Financial Intelligence Unit India (FIU-I
Q23 | Which among the following is correct regarding BPLR or bench mark prime lending rate?
- It is lowest interest rate below PLR charged by a bank from the best customer of the financial year
- It is highest interest rate above PLR charged by a bank from the any customer of the financial year
- Both (a) & (b)
- None of the above
Q24 | Which among the following coined the term “Second generation Reforms”?
- World Bank
- International Monetary Fund
- Reserve bank of India
- SBI
Q25 | The commercial paper issued with low interest rate thus the commercial paper are categorized as
- payables rating
- commercial rating
- poor credit rating
- better credit rating