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WorksheetsINDIAN FINANCIAL SYSTEM
Total questions: 62
Worksheet time: 34mins
Indian Financial System includes
Financial Market
Financial Instruments
Financial Services
All of these
A regulatory body set up to control trading of financial securities
RBI
SEBI
SBI
None of these
Financial Market is classified into
Organized and unorganized market
Regulatory and non-regulatory market
Reformatory and non-reformatory market
Controlled and uncontrolled Market
Indian Banking with reforms after 1991 is which phase of Indian Financial System development
Phase 1
Phase 2
Phase 3
Phase 10
Which is/are the characteristic of Financial Instruments
Liquidity
Transferability
Maturity period
All of these
Source of providing funds for a particular activity is called
Finance
Business
Management
Economics
Indian Financial System is a link between
Borrowers and seekers of fund
Bank and agent
Businessman and RBI
Insurance and banking
True or False. Economic Development refers to how advanced an economy is.
True
False
A farmer would fall under which economic activity?
Quaternary
Tertiary
Secondary
Primary
A bank is a financial institution that offers both individuals and businesses a wide range of services to help them manage their money.
True
False
Money market deals with _____ instruments.
Long term
Medium term
Short term
All of the above
Nifty is the index of _______.
BSE
NSE
OTCEI
CSE
A financial security that generally has a longer
term than a bill, but a shorter term than a
bond.
Notes
Bills
Stocks
Bonds
Savings certificate entitling the bearer to
receive interest.
Certificate of Ownership
Certificate of Deposit
Savings Certificate
Certificate of Recognition
A short term debt obligation backed by govt.
with a maturity of less than 1 year.
Treasury Bill
Bills of Payment
Certificate of Savings
Certificate of Ownership
A short term debt instrument issued by a firm
that is guaranteed by a commercial bank.
Pre need Plan
Life Insurance Plan
Banker's Acceptance
Treasury Bills
Which of the following is NOT a benefit of using a check:
Proof of Payment
Delayed Deduction
Ease of Tracking
Debit Card Backup
Process where a paycheck is automatically deposited into your checking account.
Electronic Deposit
Manual Deposit
Direct Deposit
Check Cashing
What is the purpose of a bank? (You can choose more than one response on this one!)
hold your money
help you borrow money
pay you for using your money to help others
help you save your money
What are Federal Reserve Banks?
banks that make reservations for restaurants in your area
places that print dollars
places that make coins
banks that store money so that they can ship it to other banks that need it when they are running low
Which among the following is/are correct regarding Money Market?
Money Market is a market for short-term funds
Maturity in this market ranging from overnight to one year
The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
Maturity in this market is above one year
What is the maximum duration for which term money can be lent/borrowed?
1 day
15 days
30 days
1 year
The issuing authority of coins in India is (a)
Money market is use for.......................purpose
Short Term
Long Term
Security
stock
Who issues treasury bills( T-bills) in India
RBI
SBI
Govt. of India
all of above
Which among the following helps RBI to manage liquidity conditions in the economy with banks having an avenue to surplus funds or avail funds?
Repos
Reverse repos
Money market Mutual Funds
SLR
Which among the following coined the term ” Second generation Reforms” ?
World Bank
International Monetary Fund
Reserve bank of India
SBI
Commercial bills market is a part of
organised money market
unorganised money market
stock market
capital market
None of the above
Gilt-edged market deals in:
Worn currency notes
Bullion and Gold
Govt. securities
Corporate bonds
When failure of the financial system affects other systems such as insurance market or forex market, such risk is:
Liquidity Risk
Settlement Risk
Systemic Risk
Clearing Process Risk
Systematic Risk
The process in which the electronic holding of share replaces the paper securities:
Demutualisation
Rematerialisation
Electronic Shares
Dematerialisation
The market for short term financial assets/ instruments, that are close substitutes of money, is called:
Money Market
Capital Market
Forex Market
Financial Market
Which among the following is/are correct regarding Money Market?
Money Market is a market for short-term funds
Maturity in this market ranging from overnight to one year
The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
Maturity in this market is above one year
T-Bills are issued for =======days.
182
14
364
All of the above
What is the example of commercial paper?
Promissory Notes
Drafts
Cheque
Certificate of Deposit
All of the above
Which of the following is not the example of financial Institution?
RBI
Commercial banks
Cooperate Banks
None f the Above
Certificate of deposits in Indian Money Market emerged in--
1989
1990
1988
1995
What is/are the special characteristics of Indian Money Market?
Dichotomy
Seasonal Variation
Inter-call money market
all are correct
When RBI introduced the Deregulation of Interest rates?
1988
1990
1993
1999
Bill Market Scheme was launched in-----
1953
1952
1988
1950
The New Bill Market Scheme was launched in ----
1995
1975
1970
2000
Capital Market is a market for
long term assets
short term assets
Medium term assets
none of the above
The primary market is also called
New issue market
IPo
stock exchange
over the counter market
The return of a share holder is
Rate of interest
Dividend
Discount rate
Discount value
The instrument used in capital market is
Equity
Commercial paper
Treasury Bill
All the above
Statutory body governing the capital market
Commercial Banks
RBI
SEBI
IDBI
Professional independent brokers are called------------------
Broker
Hedger
Jobber
Budlawalas
Finance companies raise funds in the money market by selling
commercial paper
federal funds
negotiable certificates of deposits
Eurodollars
Compared to money market securities, capital market securities have
more liquidity
longer maturity
lower yields
less risk
Makes goods or provides services
Demand
Producer
Consumer
Wants
Who claims on profit first ?
Equity Share holders
Preference share holders
both
none of the above
CRISIL was established in ----
1992
1995
1988
1952
For transaction in security market PAN has been made mandatory since ------
2005
2007
2002
2000
