Question 1

NASDAQ is

Accepted Answer

NASDAQ is an American stock exchange, known for its high concentration of technology companies.

Question 2

Group of speculators buy the securities and they will buy and sell securities themselves to push up the prices id termed as

Accepted Answer

Price rigging refers to the manipulation of the market by a group of speculators who buy and sell securities among themselves to artificially inflate or deflate the prices.

Question 3

---------- is a receipt for a deposit of money with a bank or a financial institution

Accepted Answer

CDs, or Certificates of Deposit, are receipts for deposits of money with a bank or financial institution, indicating that the depositor has lent money to the institution under agreed terms.

Question 4

---- is a short term usance promissory note with fixed maturity.

Accepted Answer

Commercial Paper (CP) is a short-term usance promissory note with fixed maturity, typically used by companies to finance their short-term liabilities.

Question 5

-----are instrument of short term borrowing by the govt of India, issued as promissory notes under discount

Accepted Answer

Treasury Bills (TB's) are short-term borrowing instruments issued by the Government of India. They are issued at a discount to face value, and their return to the investor is the difference between the purchase price and the face value, which is paid at maturity.

Question 6

Debentures can be issued

Accepted Answer

Debentures can be issued at par (face value), at a premium (above face value), or at a discount (below face value), depending on the financial strategy and market conditions.

Question 7

Failure of the opposite party to deliver the promised security

Accepted Answer

Counterparty risk refers to the risk of the other party in a financial transaction not fulfilling their obligations, such as failing to deliver a promised security.

Question 8

Securities and exchange board of India issue and listing of debt securities amendment regulations act was passed in

Accepted Answer

The answer of Securities and exchange board of India issue...

Question 9

Percentage rate of return paid on a stock in the form of dividends is called

Accepted Answer

The percentage rate of return paid on a stock in the form of dividends is called the "Yield." This measures the income, such as dividends, that an investment generates relative to its price.

Question 10

Income tax act was enacted in

Accepted Answer

The Income Tax Act was enacted in the year 1961 in India, replacing the earlier act of 1922. This act governs the taxation of income in India.

Question 11

IBRD is also known as

Accepted Answer

IBRD stands for International Bank for Reconstruction and Development, which is better known as the World Bank. It is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Question 12

Expand NABARD

Accepted Answer

NABARD stands for National Bank for Agriculture and Rural Development, which is an apex development finance institution in India.

Question 13

Identify one which is not the segment in the debt market

Accepted Answer

The capital market is a broad category that includes both the stock and bond markets, making it incorrect to classify it as a segment of the debt market specifically. The debt market is a component of the broader capital market, focusing on debt securities such as bonds and debentures.

Question 14

---------bond is bought at a price below face value

Accepted Answer

Zero coupon bonds are bought at a price below their face value because they do not pay periodic interest. Instead, investors receive the face value of the bond at maturity.

Question 15

Term lending institution include

Accepted Answer

IDBI (Industrial Development Bank of India) is a term lending institution that provides financial assistance for industrial development.

Question 16

SFC is created under an act in

Accepted Answer

The State Financial Corporations (SFC) were created under the State Financial Corporations Act, 1951, which came into effect in August 1952.

Question 17

------ is an apex banking institution in the field of long term industrial finance

Accepted Answer

IDBI (Industrial Development Bank of India) is an apex banking institution that provides long-term industrial finance.

Question 18

IDBI was converted in to banking company in

Accepted Answer

IDBI was converted into a banking company in 2004.

Question 19

IDBI subsidiaries does not include

Accepted Answer

IFCI is not a subsidiary of IDBI; it is a separate financial institution in India.

Question 20

IFCI stands for

Accepted Answer

IFCI stands for Industrial Finance Corporation of India, which is an Indian government-owned development finance institution to cater to the long-term finance needs of the industrial sector.

Quiz 3: Securities, Banking, and Finance in India