Question 1

Accommodation bills are also known as ..................... bills&#10;A)kite bills&#10;B)wind bills&#10;C)supply bill&#10;D)both a & b

Accepted Answer

Accommodation bills are also known as kite bills and wind bills. These terms refer to bills of exchange used without any actual goods or services transaction, primarily for financing purposes.

Question 2

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 3

..................... 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 4

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 5

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.

Question 6

..................... 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 7

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 8

..................... 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 investors, bypassing the public offering process. This method is more suitable for them due to its lower costs and regulatory requirements compared to a public issue.

Question 9

..................... 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 process through which a company's shares are admitted to trading on a recognized stock exchange.

Question 10

..................... 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

A Jobber, also known as a stock jobber, is a type of trader who buys and sells securities on their own account. Unlike brokers who act on behalf of clients, jobbers take positions in stocks or other securities with the aim of profiting from short-term price movements. They play a crucial role in providing liquidity to the markets.

Question 11

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

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

Question 12

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 13

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 14

..................... 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 15

. ..................... 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 16

..................... 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 17

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 18

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 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...

Deck 7: Bills, Securities, and Stock Market Operations