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Merchant Banking

Total questions: 30

Worksheet time: 16mins

Name
Class
Date
1.

Merchant banking activities was originated with the merchant banking division set by

a)

yes bank

b)

Grinds bays bank

c)

none of the above

2.

The early growth of merchant banking in the country is assigned to the

a)

Foreign exchange regulations act 1973

b)

fema

c)

Income tax act

3.

State bank of india started merchant banking in _______ followed by icici in ________

a)

1980 , 1981

b)

1978 , 1980

c)

1973 , 1974

4.

Formal merchant banking activity in india was orginated in

a)

1969

b)

1963

c)

1974

5.

A merchant banking is a financial institutions conducting money market activities and a lending

a)

underwriting and financial advice

b)

Investment service

c)

All of above

6.

Lead of merchant banker should advice the issuer to enter into _______________ intermediary for the purpose of issue management.

a)

Agreement

b)

Arrangement

c)

Memorandam of association

7.

Category 1 of merchant banker can act as : ________

a)

All issue management functions

b)

Underwriter

c)

Consultant

8.

The lead merchant bankers under category shall accept a minimum underwriting of _____

a)

20%

b)

0.25%

c)

100%

d)

5%

9.

Merchant banks deal with funds raised through ______________ and capital market.

a)

Secondary Market

b)

Primary Market

c)

money market

d)

Securities market

10.

Merchant bankers are : ___________

a)

Merchant

b)

Banks

c)

Neither merchants nor banks

11.

A merchant bank can help an organization specifically in promotion functions

a)

Sponsoring the issue

b)

Marketing

c)

All of the above

12.

_____________ operates in inter bank call money market.

a)

Commercial Banks

b)

Central Bank (RBI)

c)

Co-operative Banks

d)

Financer house of India

13.

Find odd one : Authorization criteria of merchant bankers

a)

Professional competence

b)

All business performed

c)

Capital adequacy

14.

_______________ covers the entire range of services provided by a merchant banker.

a)

Cooperate counselling

b)

Project counselling

c)

Credit syndication

15.

Functional of financial services exclude : _______

a)

Mobilisation of savings

b)

Collection Tax

c)

Allocation of funds

16.

Financial services companies exclude : ________

a)

Sole proprietor

b)

Inurance companies

c)

Co-operative Banks

d)

commercial banks

17.

Issue management is an important function of _____________ and ___________

a)

Public manager and merchant banker

b)

Bank manager and lead manager

c)

Merchant banker and lead manager

d)

none of the above

18.

Role of merchant banking is Innovation.

a)

False

b)

True

19.

Merchant banks shall not associate with any business other than that of the securities market.

a)

True

b)

False

20.

Merchant bank is an organization that : ________

a)

Underwrites securities for cooperat

b)

Involved in owernship of commercial ventures

c)

All of the above

21.

______ is regarded as the fourth element of the financial system.

a)

Financial services

b)

Financial markets

c)

Financial institutions

d)

Financial instruments

22.

Which of the following is not a fee‐based financial service?

a)

Corporate counseling

b)

Lease financing

c)

Issue management

d)

Profit management

23.

NBFC is a company registered under _________.

a)

The RBI Act

b)

The Indian Contract Act

c)

The Companies Act, 1956

d)

Co-operative society Act

24.

RBI may collect from the merchant bankers an initial authorisation fee, an annual fee and renewal fee.

a)

True

b)

False

25.

Merchant banking in India has been given a specific direction by RBI Regulation.

a)

False

b)

True

26.

Central banking and merchant banking both involve the provision of financial service and advice.

a)

True

b)

False

27.

Responsibilities of merchant bankers.

a)

Legal aspect

b)

Banking policies

c)

To the investors

d)

Corporate dynamics

28.

Qualities of good merchant bankers.

a)

Entry restrictions

b)

Leadership

c)

Aggressive action

d)

Non-cooperative

e)

Attitude towards problem solving

29.

Merchant Bank can not provide loan to individuals and small business

a)

True

b)

False

30.

Find odd one: challenges faced by the merchant bankers in India.

a)

Entry restrictions

b)

Legal aspect

c)

Poor new issue market

d)

Banking policies

e)

SEBI guidelines