Question 1

The market for extremely short period loan is called&#10;A)Call loan market&#10;B)short notice market&#10;C)treasury bill market&#10;D)commercial bill market

Accepted Answer

The market for extremely short period loans, often overnight loans, is known as the Call loan market. These loans are typically used by banks and other financial institutions to meet short-term funding needs.

Question 2

---------- bills are drawn by contractors on the government departments for the goods supplied by them.&#10;A)Usance bills&#10;B)T-bills&#10;C)Clean bills&#10;D)Supply bills

Accepted Answer

Supply bills are drawn by contractors on government departments for the goods supplied by them, reflecting the transaction and payment terms agreed upon.

Question 3

---------- is also known as 'Industrial Paper&#34;&#10;A)Treasury bills&#10;B)Commercial bills&#10;C)Financial accommodation bills&#10;D)Commercial paper

Accepted Answer

Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, inventories, and meeting other short-term liabilities. It is often referred to as "Industrial Paper" because it is a primary way for companies in the industrial sector to raise funds.

Question 4

Demand bills are also known as&#10;A)Time bills&#10;B)Sight bills&#10;C)Kite bills&#10;D)Wind bills

Accepted Answer

Demand bills are also known as Sight bills because they are payable on demand or on presentation to the drawee.

Question 5

Usance bills are also known as&#10;A)Time bills&#10;B)Sight bills&#10;C)Kite bills&#10;D)Wind bills

Accepted Answer

Usance bills are also known as Time bills because they are payable at a future date set out in the bill, rather than on demand or at sight.

Question 6

In India, indigenous bills popularly known as&#10;A)Time bills&#10;B)Hundis&#10;C)Trade bills&#10;D)Sight bills

Accepted Answer

Hundis are traditional financial instruments in India, used for trade and credit transactions. They are indigenous bills of exchange.

Question 7

Which of the following are examples of Hundis in india&#10;A)Shah jog&#10;B)Namjog&#10;C)Jokhani&#10;D)All the above

Accepted Answer

All the options listed, Shah jog, Namjog, and Jokhani, are examples of Hundis. Hundis are traditional Indian financial instruments used for trade and credit transactions.

Question 8

Bills drawn and accepted payable after three months are called&#10;A)Usance bills&#10;B)T-bills&#10;C)Clean bills&#10;D)Supply bills

Accepted Answer

Usance bills are bills of exchange that are payable after a specified period of time, which is more than sight (immediately) but typically within three to six months. They contrast with demand or sight bills, which are payable upon presentation.

Question 9

The market which helps commercial banks to maintain their SLR requirement is&#10;A)Call loan market&#10;B)T-bills market&#10;C)Acceptance market&#10;D)Commercial bill market

Accepted Answer

Call loan market is the market where commercial banks lend and borrow funds on a short-term basis, typically overnight or for a few days. This market helps banks to maintain their SLR requirement by providing them with a source of short-term liquidity.

Question 10

Bill Market Scheme in India was introduced in the year&#10;A)1972&#10;B)1952&#10;C)1969&#10;D)1982

Accepted Answer

The answer of Bill Market Scheme in India was introduced...

Question 11

Adhoc T-bills are always issued in favour of--------&#10;A)State government&#10;B)Commercial banks&#10;C)Treasuries&#10;D)RBI

Accepted Answer

The answer of Adhoc T-bills are always issued in favour...

Question 12

The certificate which evidences an unsecured corporate debt of short term maturity&#10;A)Certificate of Deposit&#10;B)Commercial paper&#10;C)Secured Premium Notes&#10;D)Interbank participation Certificate

Accepted Answer

The answer of The certificate which evidences an unsecured corporate...

Question 13

Major players of Indian money market is&#10;A)Central bank&#10;B)Co-operative banks&#10;C)Commercial banks&#10;D)Indigenous banks

Accepted Answer

The answer of Major players of Indian money market is&#10;A)Central...

Question 14

-------- is the suitable method where small companies issue shares&#10;A)Offer for sale&#10;B)Private placement&#10;C)Issue by prospectus&#10;D)All the above

Accepted Answer

The answer of -------- is the suitable method where small...

Question 15

Zero interest bonds are always issued&#10;A)At premium&#10;B)At discount&#10;C)With detachable warrant&#10;D)Any of the above

Accepted Answer

The answer of Zero interest bonds are always issued&#10;A)At premium&#10;B)At...

Question 16

-------- is a guarantee for marketability of shares&#10;A)Listing&#10;B)Underwriting&#10;C)Registration&#10;D)Issue by prospectus

Accepted Answer

The answer of -------- is a guarantee for marketability of...

Question 17

Which one of the following is /are not function of NIM&#10;A)Origination&#10;B)Underwriting&#10;C)Distribution&#10;D)Listing

Accepted Answer

The answer of Which one of the following is /are...

Question 18

BOLT was introduced by BSE in the year&#10;A)1990&#10;B)1995&#10;C)1992&#10;D)1999

Accepted Answer

The answer of BOLT was introduced by BSE in the...

Question 19

-------- is a permission to quote securities officially on the trading floor of stock exchange&#10;A)Origination&#10;B)Underwriting&#10;C)Distribution&#10;D)Listing

Accepted Answer

The answer of -------- is a permission to quote securities...

Question 20

The number of shares which are less than market lots are called&#10;A)Grey lot&#10;B)Odd lot&#10;C)Tag lot&#10;D)Tied lot

Accepted Answer

The answer of The number of shares which are less...

Question 21

Rolling Settlement system was introduced by SEBI in the year&#10;A)1994&#10;B)1998&#10;C)1996&#10;D)1999

Accepted Answer

The answer of Rolling Settlement system was introduced by SEBI...

Question 22

The facility to carry forward a transaction from one settlement period to another is called --------- transaction&#10;A)Hand delivery&#10;B)Badla&#10;C)Cornering&#10;D)Arbitrage

Accepted Answer

The answer of The facility to carry forward a transaction...

Question 23

The device adopted to make profit out of price differences in two different markets&#10;A)Cornering&#10;B)Wash sales&#10;C)Rigging&#10;D)Arbitrage

Accepted Answer

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

Question 24

A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is&#10;A)Sub-broker&#10;B)Commission broker&#10;C)Authorised clerk&#10;D)Remisiers

Accepted Answer

The answer of A person appointed by a stock broker...

Question 25

------------- is also known as Remisiers and Half-commission man&#10;A)Sub-broker&#10;B)Commission broker&#10;C)Authorised clerk&#10;D)Jobbers

Accepted Answer

The answer of ------------- is also known as Remisiers and...

Deck 5: Money Market and Securities Trading