Deck 9: Financial Institutions and Services: Part B

Question 1

In hire purchase depreciation can be claimed by the

A)Hirer
B)Vendor
C)Financiers
D)All of these

Answer 1

Hirer

Question 2

A merchant bank can claim a charge ------- % as the commission for the whole issue

A)5%
B)2.5%
C)0.5%
D)0.25%

Answer 2

0.5%

Question 3

Which of the following is a selective (qualitative) credit control method?

A)Bank rate
B)Open market operation
C)Variable reserve ratio
D)Credit rationing

Answer 3

Credit rationing

Question 4

Currency notes of rupee one and other lower subsidiary coins are issued by

A)RBI
B)Commercial banks
C)Ministry of Finance
D)Bank Note press

Question 5

American Depository Receipts (ADRs) are issuing by

A)Indian Company
B)American company
C)Overseas depository
D)International exchange

Question 6

----------- is the process of converting security in electronic form into physical form

A)Rematerialisation
B)Dematerialisation
C)Demutualisation
D)Mutualisation

Question 7

----------- is dealing in securities done by those who having access to price sensitive information.

A)Margin trading
B)Insider trading
C)Price rigging
D)Wash sales

Question 8

--------- is a calculated move with an expectation to reap huge profit from market fluctuations

A)Gambling
B)Speculation
C)Genuine investment
D)None of the above

Question 9

---------- speculators are optimistic in nature

A)Bull
B)Bear
C)Stag
D)wolves

Question 10

---------- speculators are Pessimistic in nature

A)Bull
B)Bear
C)Stag
D)Wolves

Question 11

The scheme in which company can allot shares not more than 15% of the issue size, to the public in addition to the shares already offered- is called

A)Right issue
B)ESOPs
C)Green shoe option
D)Bonus issue

Question 12

The merchant banker coordinating a public issue is called as

A)Syndicator
B)Lead manager
C)Post issue manager
D)None of these

Question 13

-------- is a shortened form of prospectus

A)Red herring prospectus
B)Abridged prospectus
C)Statement in lieu of prospectus
D)Shelf prospectus

Question 14

-------- is an offer document is used in public issue made under book building method.

A)Red herring prospectus
B)Abridged prospectus
C)Statement in lieu of prospectus
D)Shelf prospectus

Question 15

In technical sense, short sellers (bears) will be "squeezed" through

A)Wash sales
B)Cornering
C)Rigging
D)Arbitrage

Question 16

---------- is known as 'Traffic in securities'

A)Wash sales
B)Cornering
C)Rigging
D)Arbitrage

Question 17

A system of security trade in which one is allowed to invest in excess of his financial capacity by borrowing funds

A)Margin trading
B)Cornering
C)Rigging
D)Arbitrage

Question 18

Which of the following speculative transactions are unfair and prohibited?

A)Margin trading
B)Option deals
C)Rigging
D)Arbitrage

Question 19

Which of the following is not a prohibited act in security market?

A)Insider trading
B)Price rigging
C)Cornering
D)Margin trading

Question 20

------- is undertaken for making a dishonest claim for tax deduction.

A)Wash sales
B)Price rigging
C)Cornering
D)Margin trading

Question 21

-------- means temporary halt of trade in stock exchanges whenever index moves upward or downward beyond the specified limits

A)Laddering
B)Cornering
C)Circuit breaking
D)Side by siding

Question 22

Unsecured debentures are also known as...........

A)Registered debentures
B)Bearer debentures
C)Naked debentures
D)Collateral debentures

Question 23

Non-voting shares were introduced by Companies (Amendment) bills in the year

A)1997
B)1999
C)2000
D)2002

Question 24

in the case of -------- bonds, the value is inversely related to short term interest rates.

A)Fixed rate bonds
B)Inverse float bonds
C)Perpetual bonds
D)Option bonds