Deck 2: Financial Terminology and Institutions in India

Question 1

A) a debenture is an acknowledgement of debt due by a company issued under a common seal B) bonus shares can be issued only out of free reserves built out of revenue profit or share premium collected in cash

A)A is true B is false
B)A is false B is true
C)Both are true
D)Both are false

Answer 1

Both are true

Question 2

Process used by companies raising capital through IPO's and FPO's to aid price and demand discovery

A)ESOP
B)Book building
C)Bonus issue
D)Euro issue

Answer 2

Book building

Question 3

In the methods of marketing securities BOD stands for

A)Board of directors
B)Buy out deals
C)Bought out discount
D)Bought out deals

Answer 3

Bought out deals

Question 4

FDI stands for

A)Foreign Development Institution
B)Foreign Direct Investment
C)Financial Direct Investment
D)Foreign Development Investment

Question 5

Indian companies are allowed to raise capital in the international market through the issue of

A)ADR
B)GDR
C)ADR & GDR
D)None of these

Question 6

Bonds that are denominated in a currency other than that of the country in which they are issued

A)Drop lock bond
B)Euro bond
C)Straight debt bond
D)Convertible bond

Question 7

-----is a dollar denominated form of equity ownership

A)ADR
B)GDR
C)SDR
D)USD

Question 8

The apex authority of insurance industry

A)IBRD
B)IRDA
C)RBI
D)LIC

Question 9

GIC has its registered office and head quarters in

A)Luck now
B)Mumbai
C)Chennai
D)Maharashtra

Question 10

------was founded in 1956 with the merger of 243 insurance companies and provident societies

A)LIC
B)GIC
C)RBI
D)SBI

Question 11

IRDA act was passed in

A)1999
B)2000
C)2001
D)2002

Question 12

Identify public sector undertaking

A)United India insurance
B)HDFC life
C)ICICI prudential
D)Bharti Axa

Question 13

General insurance include

A)Auto insurance
B)Life insurance
C)Both A& B
D)None of these

Question 14

-----is a form of protection against possible risk

A)Banking
B)Factoring
C)Insurance
D)Investment

Question 15

A) BSE was the first to offer screen based trading all over India B) nse is the leading and the oldest stock exchange in India as well as in Asia.

A)A is true B is false
B)B is true A is false
C)Both are true
D)Both are false

Question 16

Stock exchange also referred as

A)Primary market
B)FOREX market
C)Secondary market
D)OTCEI

Question 17

Identify one which is not the function of stock exchange

A)Safety of funds
B)Fair price determination
C)Provide ready market
D)Raising of capital

Question 18

--------is a process through which any member-owned organisation becomes a shareholder-owned company

A)Delisting
B)Demutualization
C)Recapitalization
D)Demembership

Question 19

NSE indices includes

A)CNX MID CAP
B)CNX NIFTY JUNIOR
C)S&P CNX NIFTY
D)All of these

Question 20

BSE index is also called

A)SENSEX
B)NIFTY
C)NASDAQ
D)None of these

Question 21

------is the first exchange for small companies

A)BSE
B)NSE
C)OTCEI
D)SEBI

Question 22

Selling of a security that an investor does not own is called

A)Small selling
B)Short selling
C)Credit sale
D)None of these

Question 23

RBI was established in

A)1945
B)1935
C)1955
D)1949

Question 24

--------refers to a fixed number of units of the underlying asset that form part of a single F&O contract

A)Forward
B)Lot size
C)Lottery
D)Future

Question 25

At present India have two depositories namely

A)NDSL & CSDL
B)NSDL & CDSL
C)SDNL & SDCL
D)DLNS & SLCD