Financial Markets

In the parlance of economy/commerce, what is “gilt-edged” market?

• a) Gold and silver market

• b) Industrial securities market

• c) Market for safe (such as government) securities

• d) Market for software technology/ service products

A rise in “Sensex” means

• a) A rise in prices of shares of all companies registered with the Bombay Stock Exchange

• b) An overall rise in prices of shares of all companies registered with the National Stock Exchange

• c) An overall rise in prices of shares of group of companies registered with the Bombay Stock Exchange

• d) A rise in prices of shares of all companies belonging to a group of companies registered with the Bombay Stock Exchange

Consider the following statements:

1.Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange(BSE).

2.For calculating the Sensex, all the Sensex stocks are assigned proportional weightage.

3.Sensex became operational in 1978-79 with the base value of 100.

Which of the statements given above is/are correct?

• a) 2 only

• b) 1 and 3

• c) 2 and 3

• d) None of the above

Which of the statements given below is/are correct regarding “bear market”?

1.It refers to fall in the value of investments

2.Investors rush to buy stocks instead of selling 3.Unemployment levels may rise.

Select the correct answerfrom given below:

• a) 1 only

• b) 2 and 3 only

• c) 1 and 3 only

• d) 1, 2 and 3

Consider the following differences between private and public limited companies:

1.In a private limited company there is restriction on the number of members, whereas no such restriction is applicable on a public limited company.

2.A private limited company can be listed on a stock exchange, whereas a public limited company is always listed on a stock exchange.

3.A private limited company cannot issue debentures, whereas a public limited company can issue debentures.

Select the correct answer using the codes given below:

• a) 1 only

• b) 2 and 3 only

• c) 1 and 3 only

• d) 1 , 2, and 3

Which of the following are the instruments of Money Market?

• (a) Call money

• (b) Certificate of deposits

• (c) Trade bills

• (d) All of the above

Which of the following is the function of Financial Market?

• (a) Mobilization of savings

• (b) Price fixation

• (c) Provide liquidity to financial assets

• (d) All of the above

When securities are allotted to institutional investors & some selected individuals is referred to as ____.

• (a) Initial public offer

• (b) Offer through prospectus

• (c) Private placement

• (d) Offer for sale

Which of the following is the regulator of the credit rating agencies in India?

• A) R B I

• B) The S B I

• C) S I D B I

• D) The S E B I

• E) None of these

Which of the following cannot be called as a debt instrument as referred to in financial transactions?

• A) Certificate of deposit

• B) Bonds

• C) Stocks

• D) Commercial papers

• E) Loans