Financial Markets And Institutions Set 17
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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 17
Q1 | It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.
- Commercial bill
- Commercial papers
- Call money
- None of the above
Q2 | A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
- Expensive in comparison with banks who raise funds from these sources.
- Cheaper in comparison with banks who raise funds from these sources.
- Creates no effect on other sources.
- None of the above
Q3 | It is a short-term, negotiable, self-liquidating instrument which is used to finance thecredit sales of firms.
- Commercial bill
- Commercial papers
- Call money
- None of the above
Q4 | The capital market consists of
- Development banks
- Commercial banks
- Stock exchanges
- All of the above
Q5 | A company can raise capital through the primary market in the form of
- Equity shares
- Preference shares
- Debentures
- All of the above
Q6 | They can be issued to individuals, corporations and companies during periods of tightliquidity when the deposit growth of banks is slow but the demand for credit is high.
- Commercial papers
- Call money
- Commercial bill
- Certificate of deposit
Q7 | Which of the following participants represent capital market?
- Development banks
- Commercial banks
- Stock exchanges
- All of the above
Q8 | Under this method of floatation in primary market, a subscription is invited from generalpublic to invest in the securities of a company through the issue of advertisement.
- Private placement
- Offer through prospectus
- Offer for sale
- All of the above
Q9 | PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank in turn will offer the shares to general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
- Private placement
- Offer through prospectus
- Offer for sale
- Rights issue
Q10 | Jaykant is holding hundred shares of a company. He has been given a privilege offer to subscribe to a new issue of shares of the same company in proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
- Offer through prospectus
- Offer for sale
- Rights issue
- Private placement
Q11 | Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.
- Providing liquidity and marketability to existing securities.
- Safety of transaction.
- Pricing of security.
- Spreading of equity cult.
Q12 | Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.
- Providing scope for speculation.
- Providing liquidity and marketability to existing securities.
- Pricing of security.
- Spreading of equity cult.
Q13 | The process of holding shares in electronic form is known as
- Demutualisation
- Dematerialisation
- Speculation
- None of the above
Q14 | One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India
- Regulatory function
- Protective function
- Developmental function
- None of the above
Q15 | It acts like a bank and keeps securities in electronic form on behalf of the investor,
- Depository Participant
- Depository
- Stock exchange
- None of the above
Q16 | It serves as an intermediary between the investor and the depository who is authorised tomaintain the accounts of dematerialised shares.
- Depository Participant
- Depository
- Stock exchange
- None of the above
Q17 | It is a number assigned to each transaction by the stock exchange and is printed on thecontract note.
- PAN number
- Unique Order Code
- Contract Note
- None of the above
Q18 | Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange
- Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order
- Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order
- Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order
- Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order
Q19 | The mandatory detail that an investor has to provide to the broker at the time of opening ademat account is
- Date of birth and address
- PAN number
- Residential status (Indian/NRI)
- Bank account details.
Q20 | It is a legally enforceable document which is issued by a stock broker within 24 hours ofthe execution of a trade order.
- PAN number
- Unique Order Code
- Contract Note
- None of the above
Q21 | On this day, the exchange will deliver the share or make payment to the other broker,
- Pay-in day
- Pay-out day
- Transaction day
- None of the above
Q22 | When is a trade confirmation slip issued to the investor?
- On placing an order
- On execution of the order
- On settlement of the order
- None of the above
Q23 | After the trade has been executed, the broker issues a Contract Note to the investor within
- 52 hours
- 24 hours
- 48 hours
- 12 hours
Q24 | SEBI has constituted a committee under TK Viswanathan for ________.
- Fair market conduct
- Manufacturing market conduct
- Partial market conduct
- Both a and c
Q25 | SEBI has launched an online registration system for?
- REITs
- InvITs
- P-notes
- Only a and b