Financial Systems and Markets

A well organised financial system facilitates in:

• Lending and borrowing

• Raising capital

• Exchange of information

• All of the above

The Indian stock markets are an example of:

• Strong form efficient market

• Semi strong form efficient market

• Weak form efficient market

• None of the above

Financial assets are classified into:

• Securities

• Currencies

• Contracts

• Commodities

Financial Markets are classifies based on

• The timing of delivery of the assets

• Seller of the assets

• The maturity of the assets

• Types of assets traded

Notes are instruments that have a maturity of:

• Less than one year

• More than 10 years

• 10 years or less

• None of the above

Exchange traded funds (ETFs) is an example of:

• Plain vanilla instrument

• Pooled investment

• Both the options above

• None of the options above

A Futures contract is

• An agreement to trade the underlying asset in future at a price agreed upon today

• Standardized forward contract for which a clearinghouse guarantee the performance of all traders

• Allows the buyer to purchase/sell an underlying instrument at a set strike price before a specified date

• Agreement to exchange payments of a periodic cash flow that depend on future asset prices or interest rates

An example/s of a financial intermediary is:

• Investment banks

• Exchanges

• Brokers

• Investor

Which of the following entities play a role in securitization process:

• Mortgage lender

• Mortgage borrower

• Credit enhancement agency

• Issuer of the SPV

Which company is the world's largest hedge fund as on October 2023