Question 1

Adhoc treasury bills are issued in favour of the ..................... only&#10;A)Treasury&#10;B)RBI&#10;C)Commercial banks&#10;D)State government

Accepted Answer

Adhoc treasury bills are issued in favor of the Reserve Bank of India (RBI) only. These are short-term instruments issued to meet the temporary mismatches in the government's cash flow.

Question 2

..................... are short term deposits of specific maturity similar to fixed deposits.&#10;A)commercial paper&#10;B)Interbank participation certificate&#10;C)Repo&#10;D)Certificate of deposit

Accepted Answer

Certificates of deposit are short-term deposits with a specific maturity, similar to fixed deposits, offered by banks.

Question 3

Discount and Finance House of India was set up in .....................&#10;A)1982&#10;B)1988&#10;C)1992&#10;D)1969

Accepted Answer

Discount and Finance House of India was set up in 1988 to facilitate liquidity in the money market.

Question 4

Discount and Finance House of India was set up in pursuance of the recommendations of .....................Committee&#10;A)Malegam&#10;B)Malhotra&#10;C)Vaghul&#10;D)Narasimham

Accepted Answer

The Discount and Finance House of India was set up following the recommendations of the Vaghul Committee. This committee was focused on money market reforms, and its recommendations led to the establishment of institutions like the Discount and Finance House of India to enhance the efficiency of the money market.

Question 5

..................... has been set up mainly to provide a secondary market in Govt. Securities&#10;A)DHFI&#10;B)OTCEI&#10;C)STCI&#10;D)NSDL

Accepted Answer

STCI (Securities Trading Corporation of India) has been primarily established to provide a secondary market for government securities, facilitating their trade after they are initially issued.

Question 6

Right shares are offered to.....................&#10;A)Debenture holders&#10;B)Existing shareholders&#10;C)List 2 contributories&#10;D)Liquidators

Accepted Answer

Right shares are offered to existing shareholders, allowing them to maintain their proportional ownership in the company by purchasing additional shares before they are offered to the public.

Question 7

..................... is the suitable method where small companies issue shares&#10;A)public issue&#10;B)placement&#10;C)offer for sale&#10;D)none of these

Accepted Answer

Placement is often used by smaller companies to issue shares directly to specific investors, such as institutional investors, bypassing the public offering process. This method can be more efficient and cost-effective for small companies.

Question 8

..................... is a process of admitting securities for trading on a recognised stock exchange.&#10;A)registration&#10;B)filing&#10;C)listing&#10;D)admission

Accepted Answer

Listing is the correct term for the process of admitting securities for trading on a recognized stock exchange. This involves meeting the exchange's requirements and is a necessary step for a company's shares to be bought and sold by the public on that exchange.

Question 9

..................... is a preferential independent broker who deals in securities on his own behalf.&#10;A)Jobber&#10;B)sub broker&#10;C)Remisiers&#10;D)Arbitragers

Accepted Answer

Jobbers, also known as market makers, trade securities on their own behalf and do not deal directly with the public or investors. They play a crucial role in providing liquidity to the markets by buying and selling securities from their own inventory.

Question 10

The facility to carry forward a transaction from one settlement period to another is known as ..................... transaction&#10;A)Badla&#10;B)arbitrage&#10;C)cornering&#10;D)trading inside

Accepted Answer

Badla is a mechanism that allows investors to carry forward their positions to the next settlement period. This is primarily used in the stock markets of India.

Question 11

The device adopted to make profit out of the differences in prices of a security in to different markets is called.....................&#10;A)cornering&#10;B)prise rigging&#10;C)arbitrage&#10;D)margin trading

Accepted Answer

The answer of The device adopted to make profit out...

Question 12

The central depositary ..................... the security on behalf of the investors&#10;A)hold&#10;B)transfer&#10;C)both a & b above&#10;D)none of these

Accepted Answer

The answer of The central depositary ..................... the security on...

Question 13

..................... of shares in the first step in the depository process&#10;A)Registration&#10;B)Listing&#10;C)Rematting&#10;D)Immobilisation

Accepted Answer

The answer of ..................... of shares in the first step...

Question 14

. ..................... is the link between the depository and the owner&#10;A)Agent&#10;B)Depository participant&#10;C)Beneficiary&#10;D)Broker

Accepted Answer

The answer of . ..................... is the link between the...

Question 15

..................... issues does not bring in any fresh capital&#10;A)equity&#10;B)preference&#10;C)debenture&#10;D)bonus

Accepted Answer

The answer of ..................... issues does not bring in any...

Question 16

Prospectus is not issued in&#10;A)public issue&#10;B)private placement&#10;C)right issue&#10;D)none the above

Accepted Answer

The answer of Prospectus is not issued in&#10;A)public issue&#10;B)private placement&#10;C)right...

Question 17

An issuer need not file an offer document in case of&#10;A)public issue&#10;B)preferential allotment&#10;C)right issue&#10;D)bought out deal

Accepted Answer

The answer of An issuer need not file an offer...

Question 18

An issuer can launch an IPO within.....................&#10;A)3 months&#10;B)6 months&#10;C)9 months&#10;D)one year

Accepted Answer

The answer of An issuer can launch an IPO within.....................&#10;A)3...

Question 19

An issue of a minimum size of Rs. ..................... crore is a mega issue&#10;A)50&#10;B)100&#10;C)150&#10;D)300

Accepted Answer

The answer of An issue of a minimum size of...

Question 20

Financial institutions are also known as ........................&#10;A)Financial organisation&#10;B)Financial intermediaries&#10;C)Financial system&#10;D)Any of the above

Accepted Answer

The answer of Financial institutions are also known as ........................&#10;A)Financial...

Question 21

Management Development Institute (MDI)was set up by ........................&#10;A)IDBI&#10;B)ICICI&#10;C)IFCI&#10;D)SEBI

Accepted Answer

The answer of Management Development Institute (MDI)was set up by...

Question 22

........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions.&#10;A)IFCI&#10;B)IDBI&#10;C)RBI&#10;D)SEBI

Accepted Answer

The answer of ........................ is an apex institution to coordinate,...

Deck 2: Financial Institutions and Securities-Related Terms