Financial Markets And Institutions Set 1

Master of Commerce (M.com),

Master of Business Administration (MBA)

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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 1

Q1 | Which of the following is not a primary function of a Bank?
  • Granting Loans
  • Collecting Cheques/Drafts customers
  • Facilitating import of goods
  • Issuing Bank Drafts
Answer: Facilitating import of goods
Q2 | Which of the following is not an institutional credit rating agency in Indian financialsystem?
  • CRISIL
  • CIBIL
  • CARE
  • ICRA
Answer: CIBIL
Q3 | ___________ is regarded as “Hybrid securities”.
  • Equity shares
  • . Preference shares
  • Debentures
  • Treasury bills
Answer: . Preference shares
Q4 | ————— represent claims for the payment of a sum of money sometimes in the futureand/or a periodic payment in the form of interest or dividend.
  • Physical asset
  • Fixed asset
  • Financial asset
  • All the above
Answer: Financial asset
Q5 | SEBI was established in —————.
  • 1988
  • 1985
  • 1991
  • 1990
Answer: 1988
Q6 | RBI started functioning on —————.
  • 1-4-1935
  • 1-4-1948
  • 1-4-1882
  • 1-4-1945
Answer: 1-4-1935
Q7 | National Housing bank is a fully owned subsidiary of —————.
  • HDFC
  • HSBC
  • RBI
  • HUDCO
Answer: RBI
Q8 | ————— has the statutory powers to regulate and promote the Indian capital market.
  • Registrar of issue
  • Merchant banks
  • SEBI
  • RBI
Answer: SEBI
Q9 | Any company making a public issue of value of more than Rs. ———— is required to file adraft offer document with SEBI.
  • 100 lakh
  • 25 lakh
  • 50 lakh
  • 10 lakh
Answer: 50 lakh
Q10 | ————— Committee was constituted by SEBI for deciding about derivatives trading.
  • L.C.Gupta
  • R. L. Gupta
  • Vaghul
  • Malhotra
Answer: L.C.Gupta
Q11 | RBI is the lender of last resort for —————.
  • Central Government
  • State Governments
  • Stock markets
  • Commercial Banks
Answer: Commercial Banks
Q12 | The market regulator of Indian Capital Market is ……………
  • DFHI
  • RBI
  • SEBI
  • STCI
Answer: SEBI
Q13 | …………………… facilitate the transfer of funds from savers to the borrowers.
  • goods market
  • money market
  • financial market
  • consumer market
Answer: financial market
Q14 | ……………………… market is a market for old issues.
  • Money market
  • Primary market
  • Secondary market
  • All the above
Answer: Secondary market
Q15 | Which of the following is a financial asset
  • Gold
  • silver
  • share
  • Land.
Answer: share
Q16 | Which of the following is a cash asset?
  • deposit created out of loans
  • share
  • bond
  • Post office certificate.
Answer: deposit created out of loans
Q17 | Govt. bond is a
  • short term security
  • long term security
  • medium term security
  • Either a or b.
Answer: long term security
Q18 | Money market deals with ..................... instruments.
  • long term
  • short term
  • medium term
  • all of these.
Answer: short term
Q19 | The market for extremely short period loan is called.....................
  • call money market
  • money at short notice
  • T-bill market
  • G-sec market
Answer: call money market
Q20 | ..................... acts as an intermediary between Govt. and money market
  • RBI
  • SEBI
  • Commercial banks
  • All the above
Answer: RBI
Q21 | ................... are drawn by contractors on the Govt. departments for the goods supplied to them
  • treasury bills
  • supply bill
  • bill of lading
  • documentary bill
Answer: supply bill
Q22 | ..................... are an important instrument of short term borrowing by the Govt.
  • National saving certificate
  • Bonds
  • Treasury bill
  • Any of the above
Answer: Treasury bill
Q23 | ..................... is a market for bankers’ acceptances
  • discount market
  • CDs market
  • Interbank participation market
  • Acceptance market
Answer: Acceptance market
Q24 | Accommodation bills are also known as ..................... bills
  • kite bills
  • wind bills
  • supply bill
  • both a & b
Answer: both a & b
Q25 | Adhoc treasury bills are issued in favour of the ..................... only
  • Treasury
  • RBI
  • Commercial banks
  • State government
Answer: RBI
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