Deck 10: Exploring the Basics of Financial Markets and Securities

Question 1

........... is a product whose value is derived from the value of underlying asset

A)Repo
B)T-bills
C)G.sec
D)Derivatives

Answer 1

Derivatives

Question 2

In Indian Capital market, 'BOLT' stands for

A)Borrowing or Lending Trade
B)Bombay Online Trading
C)Bond or Loan Transaction
D)None of these

Answer 2

Bombay Online Trading

Question 3

--------------is also known as "G.Secs"

A)Gold Traded Fund (GTF)
B)General Securities
C)Govt. Securities
D)Growth oriented fund

Answer 3

Govt. Securities

Question 4

.................. are negotiable instrument issued by an overseas depository

A)ADR
B)GDR
C)IDR
D)Any of the above

Question 5

Perpetual bond is also known as

A)Deep discount bond
B)Irredeemable bond
C)Bearer bond
D)Registered bond

Question 6

Zero Coupon Bond is also known as

A)Deep discount bond
B)Irredeemable bond
C)Bearer bond
D)Zero Interest bond

Question 7

Secured Premium Notes (SPN) always issued with...........

A)Premium
B)Discount
C)Detachable Warrant
D)Coupon

Question 8

................ bonds permit the bond holder to invest the interest income again in host bonds

A)Deep discount bond
B)Junk bonds
C)Bearer bond
D)Bunny bonds

Question 9

...............bonds are high risk and high yield bonds developed in USA

A)Deep discount bond
B)Junk bonds
C)Bearer bond
D)Bunny bonds

Question 10

In financial market, QIPs Stands for

A)Quality investment Project
B)Qualified investment Plan
C)Qualified Institutional Placement
D)Qualitative Investment Premium

Question 11

What you mean by "STRIPS"

A)Separate Trade Register of Initial Public Securities offer
B)Stock Trading Register of Interest and Principal Securities
C)Separate Trading of Registered Interest and Principal of Securities
D)Share Transfer and Registrar of Indian Public Securities issues

Question 12

Gilt Edged Securities are

A)Govt. Securities
B)Company's securities
C)Any of the above
D)None of these

Question 13

In India, forfaiting services are offered by

A)RBI
B)SBI
C)EXIM bank
D)All the above

Question 14

The small investors' gateway to enter into big companies is -----

A)Equity shares
B)Preference shares
C)Bonds
D)Mutual fund

Question 15

Money Market mutual fund is also known as---------------

A)Growth fund
B)Balanced fund
C)Income fund
D)Cash fund

Question 16

----- fund invests in highly liquid securities like commercial paper.

A)Open ended fund
B)Close ended fund
C)Balanced fund
D)MMMF

Question 17

The idea of providing factoring services in India was first thought by -----

A)Vaghul committee
B)Malhotra Committee
C)Tanden Committee
D)None of these

Question 18

The market for extremely short period loan is called

A)Call loan market
B)short notice market
C)treasury bill market
D)commercial bill market

Question 19

---------- bills are drawn by contractors on the government departments for the goods supplied by them.

A)Usance bills
B)T-bills
C)Clean bills
D)Supply bills

Question 20

---------- is also known as 'Industrial Paper"

A)Treasury bills
B)Commercial bills
C)Financial accommodation bills
D)Commercial paper

Question 21

Demand bills are also known as

A)Time bills
B)Sight bills
C)Kite bills
D)Wind bills

Question 22

Usance bills are also known as

A)Time bills
B)Sight bills
C)Kite bills
D)Wind bills

Question 23

In India, indigenous bills popularly known as

A)Time bills
B)Hundis
C)Trade bills
D)Sight bills

Question 24

Which of the following are examples of Hundis in india

A)Shah jog
B)Namjog
C)Jokhani
D)All the above

Question 25

Bills drawn and accepted payable after three months are called

A)Usance bills
B)T-bills
C)Clean bills
D)Supply bills

Question 26

The market which helps commercial banks to maintain their SLR requirement is

A)Call loan market
B)T-bills market
C)Acceptance market
D)Commercial bill market

Question 27

Bill Market Scheme in India was introduced in the year

A)1972
B)1952
C)1969
D)1982

Question 28

Adhoc T-bills are always issued in favour of--------

A)State government
B)Commercial banks
C)Treasuries
D)RBI

Question 29

The certificate which evidences an unsecured corporate debt of short-term maturity

A)Certificate of Deposit
B)Commercial paper
C)Secured Premium Notes
D)Interbank participation Certificate

Question 30

Major players of Indian money market is

A)Central bank
B)Co-operative banks
C)Commercial banks
D)Indigenous banks

Question 31

-------- is the suitable method where small companies issue shares

A)Offer for sale
B)Private placement
C)Issue by prospectus
D)All the above

Question 32

Zero interest bonds are always issued

A)At premium
B)At discount
C)With detachable warrant
D)Any of the above

Question 33

-------- is a guarantee for marketability of shares

A)Listing
B)Underwriting
C)Registration
D)Issue by prospectus

Question 34

BOLT was introduced by BSE in the year

A)1990
B)1995
C)1992
D)1999

Question 35

-------- is a permission to quote securities officially on the trading floor of stock exchange

A)Origination
B)Underwriting
C)Distribution
D)Listing

Question 36

The number of shares which are less than market lots are called

A)Grey lot
B)Odd lot
C)Tag lot
D)Tied lot

Question 37

Rolling Settlement system was introduced by SEBI in the year

A)1994
B)1998
C)1996
D)1999

Question 38

The facility to carry forward a transaction from one settlement period to another is called --- ------ transaction

A)Hand delivery
B)Badla
C)Cornering
D)Arbitrage

Question 39

The device adopted to make profit out of price differences in two different markets

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

Question 40

A person appointed by a stock broker to assist to him in the business of securities trading at trading floor of stock exchanges is

A)Sub-broker
B)Commission broker
C)Authorised clerk
D)Remisiers

Question 41

------------- is also known as Remisiers and Half-commission man

A)Sub-broker
B)Commission broker
C)Authorised clerk
D)Jobbers

Question 42

An order for the purchase of securities at a fixed price is known as

A)Limit order
B)Open order
C)Discretionary order
D)Stop loss order

Question 43

Speculator who neither buy nor sell securities in the market, but still trade on them are called

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

Question 44

The process of holding the entire supply of a particular security with a view to dictating terms is called

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

Question 45

------------ market deals in unlisted securities

A)Blue chip market
B)Bear market
C)Grey market
D)Bull market

Question 46

When purchases of securities are more than sales of securities, the market is called

A)Bullish
B)Bearish
C)Grey
D)Odd

Question 47

When sales of securities are more than purchases of securities, the market is called

A)Bullish
B)Bearish
C)Grey
D)Odd

Question 48

--------- is the charges paid by a bull speculator to the other party for obtaining carry over facility

A)Backwardation
B)Contango
C)Spread
D)Margin