1. A government security is generally issued in the form of
(a) Stock certificates
(b) Bearer bonds
(c) Promissory notes
(d) all
(e) none
2. Which of the following is not included in govt. securities?
(a) Promissory notes
(b) Debentures
(c) Bearer bonds
(d) all
(e) none
3. A bearer bond can be transferred by
(a) Endorsement
(b) Transfer deed
(c) Endorsement and deliver
(d) mere delivery and no other formalities are required
(e) none
4. Bankers are not supposed to grant advances against
(a) Third party shares
(b) Partly paid shares
(c) Preference shares
(d) Equity shares
(e)all
5. Certificate of deposit can be subscribed by
(a) individuals
(b) corporate companies
(c) Trusts, funds, association e.t.c
(d) ( a) and (b)
(e) all of (a) to (c)
6. The instrument of capital market are
(a) equity shares, preference shares, non-voting equity shares
(b) debentures (i.e. convertible, non-convertible, zero coupon bonds etc
(c) company fixed deposit
(d) units of mutual funds
(e) all
7. Capital market refers to all the facilities and institutions arrangements for
(a) borrowing
(b) lending
(c) medium and long term funds
(d) all
(e) none
8. Capital market is described as market for
(a) short term funds
(b) medium and long term funds
(c) Both (a) and (b)
(d) all
(e) none
9. Capital market can be divided into
(a) Industrial securities market
(b) Gilt edged market
(c) Personal securities market
(d) Both (a) and (b)
(e)none
10. Which of the following are the role functions of capital market?
(a) Mobilization of savings and acceleration of capital formation raising of long term capital
(b) Promotion of industrial growth
(c) Ready and continuous market for proper channelisation of funds
(d)Provision of variety
(e) all
11. The gilt-edged securities refer to
(a) Securities which gilters
(b) Securities or investment, where the risk is nominal or zero in regard to payment of principal and interest
(c) Shares of blue chip companies
(d) (b) and (c)
(e) None of the above
12. Who are the major players in the call money markets?
(a) Banks
(b) Insurance companies
(c) Development Financial Institutions
(d) Selected Mutual Funds
(e) All of the above
13. What is time limit for funds to be transacted in call money market?
(a) One day
(b) Twelve hours
(c) Morning 6’O’ clock to Evening 6’O’ clock O
(d) over night basis
(e) Two days
14. Who issues treasury bills?
(a) Reserve Bank of India, as the agent of the Central Government
(b) Any Govt. deptt. of State and Central
(c) Any Commercial Bank
(d) All of the above
(e) None of the above
15. Commercial paper is
(a) fully secured instrument
(b) unserved money market instrument
(c) partly secured paper
(d) All of the above
(e) None of the above
Answers:
1. d
2. b
3. e
4. b
5. e
6. e
7. d
8. b
9. d
10. b
11. b
12. e
13. d
14. a
15. b
(a) Stock certificates
(b) Bearer bonds
(c) Promissory notes
(d) all
(e) none
2. Which of the following is not included in govt. securities?
(a) Promissory notes
(b) Debentures
(c) Bearer bonds
(d) all
(e) none
3. A bearer bond can be transferred by
(a) Endorsement
(b) Transfer deed
(c) Endorsement and deliver
(d) mere delivery and no other formalities are required
(e) none
4. Bankers are not supposed to grant advances against
(a) Third party shares
(b) Partly paid shares
(c) Preference shares
(d) Equity shares
(e)all
5. Certificate of deposit can be subscribed by
(a) individuals
(b) corporate companies
(c) Trusts, funds, association e.t.c
(d) ( a) and (b)
(e) all of (a) to (c)
6. The instrument of capital market are
(a) equity shares, preference shares, non-voting equity shares
(b) debentures (i.e. convertible, non-convertible, zero coupon bonds etc
(c) company fixed deposit
(d) units of mutual funds
(e) all
7. Capital market refers to all the facilities and institutions arrangements for
(a) borrowing
(b) lending
(c) medium and long term funds
(d) all
(e) none
8. Capital market is described as market for
(a) short term funds
(b) medium and long term funds
(c) Both (a) and (b)
(d) all
(e) none
9. Capital market can be divided into
(a) Industrial securities market
(b) Gilt edged market
(c) Personal securities market
(d) Both (a) and (b)
(e)none
10. Which of the following are the role functions of capital market?
(a) Mobilization of savings and acceleration of capital formation raising of long term capital
(b) Promotion of industrial growth
(c) Ready and continuous market for proper channelisation of funds
(d)Provision of variety
(e) all
11. The gilt-edged securities refer to
(a) Securities which gilters
(b) Securities or investment, where the risk is nominal or zero in regard to payment of principal and interest
(c) Shares of blue chip companies
(d) (b) and (c)
(e) None of the above
12. Who are the major players in the call money markets?
(a) Banks
(b) Insurance companies
(c) Development Financial Institutions
(d) Selected Mutual Funds
(e) All of the above
13. What is time limit for funds to be transacted in call money market?
(a) One day
(b) Twelve hours
(c) Morning 6’O’ clock to Evening 6’O’ clock O
(d) over night basis
(e) Two days
14. Who issues treasury bills?
(a) Reserve Bank of India, as the agent of the Central Government
(b) Any Govt. deptt. of State and Central
(c) Any Commercial Bank
(d) All of the above
(e) None of the above
15. Commercial paper is
(a) fully secured instrument
(b) unserved money market instrument
(c) partly secured paper
(d) All of the above
(e) None of the above
Answers:
1. d
2. b
3. e
4. b
5. e
6. e
7. d
8. b
9. d
10. b
11. b
12. e
13. d
14. a
15. b