FC FMO

Indian financial system comprises of ___________

• scheduled commercial banks

• non-banking financial institutions

• Co-operative bank

• all of the above

Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange.

• Providing scope for speculation

• Providing liquidity and marketability to existing securities

• Pricing of security

• Spreading of the equity cult

Under this method 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

• (b) Offer through a prospectus

• (c) Offer for sale

• (d) All of the above

A company can raise capital through the primary market in the form of _____.

• equity shares

• debentures

• preference share

• all of the above

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

• Initial public offer

• Offer through prospectus

• Private placement

• Offer for sale

Stock exchange is known as __________ market for securities.

• primary market

• secondary market

• capital market

• none of the above

The price paid for the rental of borrowed funds (usually expressed as a percentage of the

rental of $100 per year) is commonly referred to as the

• inflation rate

• exchange rate

• interest rate

• all of the above

!Every financial market performs the following function

• (a) !It determines the level of interest rates.

• (b) !It allows common stock to be traded.

• (c) !It allows loans to be made.

• (d) !It channels funds from lenders-savers to borrowers-spenders.

Treasury Bill is used by the Government to raise short term funds for meeting temporary  Government revenues.

• TRUE

• FALSE

Mutual fund is a way of reducing your potential financial loss or hardship.

• TRUE

• FALSE