1. The instrument of capital market are
(1) equity shares, preference shares, non-voting equity shares
(2) Debentures (i.e. convertible, non-convertible, zero coupon bonds e.t.c)
(3) company fixed deposit
(4) units of mutual funds
(5) all
2. Cash reserve ratio is maintained in the form of
(1) government securities
(2) balance with RBI
(3) balance with state bank of India
(4) all
(5) none
3. Which of the following would fall under the category of retail banking?
(1) Home Loans
(2) Credit Cards
(3) Personal Loans
(4) Car Loans
(5) All of these
4. ATM cards are issued to a person who maintains any of following accounts with the bank
(1) saving bank accounts
(2) current accounts
(3) term deposits
(4) loan or cash credit accounts
(5) either 1 or 2
5. Which of the following statements are correct about money market?
(1) The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend
(2) money market participants borrow and lend for short periods of time from several days to just under a year
(3) The core of the money market consists of banks bills, commercial paper, repurchase agreements, certificate of deposits and similar instruments
(4) all of the above
(5) none of the above
6. Who can issue commercial paper ?
(1) corporate
(2) Primary Dealers
(3) All-India Financial Institutions that have been permitted to raise short-term resources under the umbrella limit fixed by Reserve Bank of India
(4) all of the above
(5 none of the above
7. Primary market
(1) is the new issues market where companies issue new securities to the investors
(2) is the place where only primary dealers may transact business (3) signifies the market where only long-term bonds are traded
(4) comprises of stock exchanges, banks and financial institutions dealing in primary securities
(5) none of the above
8. Securities that have already been issued are traded in the
(1) primary market
(2) secondary market
(3) tertiary market
(4) global market
(5) regional market
9. Which of the following activity is undertaken by EXIM Bank?
(1) Export Credit
(2) Film Finance
(3) Financing under PMEGP
(4) SME and Agriculture Finance
(5) None of the above
10. Secondary market consists of
(1) all the stock exchanges (including Over the Counter Exchange of India and National Stock Exchange)
(2) Brokers, sub-brokers, share transfer agents
(3) Depositories/custodians, Depository Participants (Dps), financiers and investors
(4) all of the above
(5) none of these
Answers:
1. 5
2. 2
3. 5
4. 5
5. 4
6. 4
7. 1
8. 2
9. 1
10. 4