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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 2

Q1 | ..................... are short term deposits of specific maturity similar to fixed deposits.
  • commercial paper
  • Interbank participation certificate
  • Repo
  • Certificate of deposit
Q2 | ..................... is an unsecured short term promissory note issued by creditworthycompanies?
  • commercial pape
  • interbank participation certificate
  • Repo
  • Certificate of deposit
Q3 | Discount and Finance House of India was set up in .....................
  • 1982
  • 1988
  • 1992
  • 1969
Q4 | Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee
  • Malegam
  • Malhotra
  • Vaghul
  • Narasimham
Q5 | ..................... has been set up mainly to provide a secondary market in Govt. Securities
  • DHFI
  • OTCEI
  • STCI
  • NSDL
Q6 | Right shares are offered to.....................
  • Debenture holders
  • Existing shareholders
  • List 2 contributories
  • Liquidators
Q7 | ..................... is the suitable method where small companies issue shares
  • public issue
  • placement
  • offer for sale
  • none of these
Q8 | ..................... is a process of admitting securities for trading on a recognised stock exchange.
  • Registration
  • filing
  • listing
  • admission
Q9 | ..................... is a preferential independent broker who deals in securities on his own behalf.
  • Jobber
  • sub broker
  • Remisiers
  • arbitragers
Q10 | The facility to carry forward a transaction from one settlement period to another is known as..................... transaction
  • Badla
  • arbitrage
  • cornering
  • trading inside
Q11 | The device adopted to make profit out of the differences in prices of a security in to differentmarkets is called.....................
  • Cornering
  • prise rigging
  • arbitrage
  • margin trading
Q12 | The central depositary ..................... the security on behalf of the investors
  • Hold
  • transfer
  • both a & b above
  • none of these
Q13 | ..................... of shares in the first step in the depository process
  • Registration
  • Listing
  • Rematting
  • immobilisation
Q14 | . ..................... is the link between the depository and the owner
  • Agent
  • Depository participant
  • Beneficiary
  • Broker
Q15 | ..................... issues does not bring in any fresh capital
  • equity
  • preference
  • debenture
  • bonus
Q16 | Prospectus is not issued in
  • public issue
  • private placement
  • right issue
  • none the above
Q17 | An issuer need not file an offer document in case of
  • public issue
  • preferential allotment
  • right issue
  • bought out deal
Q18 | An issuer can launch an IPO within.....................
  • 3 months
  • 6 months
  • 9 months
  • one year
Q19 | An issue of a minimum size of Rs. ..................... crore is a mega issue
  • 50
  • 100
  • 150
  • 300
Q20 | Financial institutions are also known as ........................
  • Financial organisation
  • Financial intermediaries
  • Financial system
  • Any of the above
Q21 | ........................ is the first development financial institution in India.
  • IDBI
  • ICICI
  • IFCI
  • RBI
Q22 | Management Development Institute (MDI) was set up by ........................
  • IDBI
  • ICICI
  • IFCI
  • SEBI
Q23 | IDBI was established in ........................
  • 1948
  • 1954
  • 1992
  • 1964
Q24 | ........................ is an apex institution to coordinate, supplement and integrate theactivities of all existing specialised financial institutions.
  • IFCI
  • IDBI
  • RBI
  • SEBI
Q25 | Hedging through futures contracts
  • increases risk of loss if prices fall
  • eliminates profit maximization potential
  • is considered to be speculative in nature
  • all of the above