Financial Markets

What type of instruments are traded in a Money Market?

• Call money

• Treasury bills

• Commercial bills

• All of the above

The expected rate of return of the money market is ______

• Very high

• Less

• Zero

• None of the above

A treasury bill is an instrument of:

• Dividend

• Short term debt

• Long term debt Interest

Treasury bills are also known as:

• Fixed interest Bonds

• Flat Rate Bonds

• Low-Interest Bonds

• Zero-Coupon Bonds

A capital market is ideal when:

• Financial institutions are sufficiently developed

• Finance is available at a reasonable cost

• Capital is most productively allocated

• All of these

Money market deals in _____________________

• Medium-term securities

• Short term Securities

• Long term Securities

• None of these

Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.

• Offer through prospectus

• Offer for sale

• Rights issue

• Private placement

PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.

• Private placement

• Offer through prospectus

• Offer for sale

• Rights issue

Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.

• Private placement

• Offer through prospectus

• Offer for sale

• All of the above

How many companies comprise the Bombay Stock Exchange 'Sensex'?

• 20

• 30

• 40

• 50