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WorksheetsFinancial Market
Total questions: 26
Worksheet time: 12mins
.Dematerialization is the process of holding securities in
a) Paper mode
b) Electronic mode
b) Physical form
d) Wallet
Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?
a. Secondary market
b. Primary market
c. Financial markets.
Money market
If a company is already in liquidity crunch and flotation costs of the issue would be high. What kind of instrument will be appoints for the money market.
a. Commercial Bills
b. Commercial paper
c. Treasury Bill
d. COD
An money market instruments issued on behalf of Central Government.
a. Call Money
b. Treasury Bill
c. Commercial Paper
d. Commercial Bill
Maturity period to call money is
a. 1 to 15 days
b. 15 to 90 days
c. 15 to 1 years
d. 1 to 30 days
Instruments deals in capital market are
a) call money
b) Commercial Bill
c) Zero Coupon Bard
d) Equity Shares
The primary market is also called
New issue market
IPo
stock exchange
over the counter market
A person who buys or sells equities for his or her clients is a
Insurance agent
financial advisor
stockbroker
accountant
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 commercial bill is used to _____________
Finance the working capital requirements
Meet the short term debt
Meet the long term debt
Pay the interest
When a trade bill is accepted by a commercial bank, it is known as a _____
Commercial Bill
Call money
None of these
Certificate of deposit
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
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
It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.
PAN number
Unique Order Code
Contract Note
None of the above
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
A company can raise capital through the primary market in the form of
Equity shares
Preference shares
Debentures
All of the above
Who are the major investors in capital market
Individual Investors
Insurance companies
Government Agencies
Treasury Department
Regulator of Secondary market is
RBI
SEBI
IRDAI
PFRDA
The main characteristics of money market transactions which enables it to have active secondary market are:
Securities that trade in one year or less
Securities that are of large denomination
Securities that are very liquid
All above
It accepts deposits from individuals and organizations that have excess funds and provide loans to those who are in need. This financial institution is called _______.
investment banks
commercial banks
credit unions
insurance companies
