Question 1

&#34;D vs. P&#34; system for government securities market means&#10;A)Delivery and payment settlement&#10;B)Dividend and principal settlement&#10;C)Dollar and Pound settlement&#10;D)Delaying and postponement

Accepted Answer

"D vs. P" stands for Delivery versus Payment, a securities industry settlement method where payment for a security must be made when the security is delivered.

Question 2

Non banking financial institutions (NBFIs) are registered under&#10;A)RBI Act&#10;B)Banking Regulation Act&#10;C)Companies Act&#10;D)SEBI Act

Accepted Answer

Non-banking financial institutions (NBFIs) are registered under the Companies Act. They are regulated by the Reserve Bank of India (RBI) but are not registered under the RBI Act or the Banking Regulation Act.

Question 3

According to IFRS, the term financial asset includes&#10;A)Cash or Cash equivalent&#10;B)Equity shares&#10;C)Contractual right to receive cash&#10;D)All the above

Accepted Answer

All the options listed (Cash or Cash equivalent, Equity shares, Contractual right to receive cash) are considered financial assets according to IFRS.

Question 4

Which of the following is /are example of primary or direct financial instrument&#10;A)Fixed deposit receipt&#10;B)Insurance policies&#10;C)Mutual fund Unit&#10;D)Debentures

Accepted Answer

Debentures are a type of primary or direct financial instrument as they are issued directly by the company to raise funds from investors.

Question 5

Which of the following is /are example of Secondary or indirect financial instrument&#10;A)Equity shares&#10;B)Preference shares&#10;C)Post office saving deposit&#10;D)Bonds

Accepted Answer

Secondary or indirect financial instruments are those that are not directly issued by borrowers to lenders but rather represent an indirect claim on the borrower's assets. Post office saving deposits fall into this category as they represent a claim on the financial institution (in this case, the post office or government) rather than a direct claim on the assets of a specific company or entity, unlike equity shares, preference shares, and bonds, which are direct financial instruments.

Question 6

A Non Banking Financial Institution&#10;A)Can accept demand deposit&#10;B)Can issue cheques to customers&#10;C)Cannot accept fixed deposit&#10;D)Cannot accept demand deposit and cannot issue cheques

Accepted Answer

Non-Banking Financial Institutions (NBFIs) cannot accept demand deposits and cannot issue cheques drawn on themselves. This differentiates them from traditional banks, which can offer these services. NBFIs engage in lending and other financial activities but do not have the same authority as banks to accept demand deposits or issue cheques.

Question 7

Kerala State Financial Enterprises ltd (KSFE) is an example of&#10;A)Banking institution&#10;B)Investment institution&#10;C)NBFI&#10;D)State level development banks

Accepted Answer

KSFE (Kerala State Financial Enterprises Ltd) is an example of a Non-Banking Financial Institution (NBFI). Unlike banks, NBFIs do not have a full banking license and cannot accept deposits from the public.

Question 8

UTI, LIC etc are examples of&#10;A)Banking institution&#10;B)Investment institution&#10;C)NBFI&#10;D)Development banks

Accepted Answer

UTI (Unit Trust of India) and LIC (Life Insurance Corporation) are examples of investment institutions as they primarily deal with investments and insurance products.

Question 9

SFC is an example of&#10;A)Banking institution&#10;B)Investment institution&#10;C)NBFI&#10;D)Development Institution

Accepted Answer

SFC (State Financial Corporation) is a Development Institution that provides financial assistance to small and medium enterprises for industrial development.

Question 10

Which of the following is /are not regulatory institutions&#10;A)RBI&#10;B)SEBI&#10;C)IRDA&#10;D)IFCI

Accepted Answer

IFCI (Industrial Finance Corporation of India) is not a regulatory institution; it is a non-banking financial company in the public sector. In contrast, RBI (Reserve Bank of India), SEBI (Securities and Exchange Board of India), and IRDA (Insurance Regulatory and Development Authority) are regulatory institutions overseeing the banking, securities, and insurance sectors, respectively.

Question 11

Which of the following is not a negotiable instrument?&#10;A)ADR&#10;B)GDR&#10;C)FDR&#10;D)IDR

Accepted Answer

The answer of Which of the following is not a...

Question 12

'Follow on Public Offer' is also known as&#10;A)Further public offer&#10;B)Seasoned public offer&#10;C)Subsequent public offer&#10;D)All of these

Accepted Answer

The answer of 'Follow on Public Offer' is also known...

Question 13

In ---------------- , insurable interest is enough at the time of loss&#10;A)Fire insurance&#10;B)Life insurance&#10;C)Burglary insurance&#10;D)Marine insurance

Accepted Answer

The answer of In ---------------- , insurable interest is enough...

Question 14

_______ is a financial service which pooling risks of people&#10;A)Mutual fund&#10;B)Venture capital&#10;C)insurance&#10;D)all of these

Accepted Answer

The answer of _______ is a financial service which pooling...

Question 15

&#34;Native Stock and Share Brokers Association&#34; is the old name of............&#10;A)SEBI&#10;B)NSE&#10;C)BSE&#10;D)NASDAQ

Accepted Answer

The answer of &#34;Native Stock and Share Brokers Association&#34; is...

Deck 10: Financial Instruments, Institutions, and Regulations in Indias Securities Market