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Financial Services Revision

Total questions: 78

Worksheet time: 40mins

Name
Class
Date
1.
What are businesses that provide financial services?
a)
online banking
b)
depository institutions
c)
interest rate
d)
checking account
2.

In primary markets, first time issued shares to be publicly traded, in stock markets is considered as

a)

traded offering

b)

public markets

c)

issuance offering

d)

initial public offering

3.

Exchange markets and over counter markets are considered as two types of

a)

floating market

b)

risky market

c)

secondary market

d)

primary market

4.

Stocks or shares that are sold to investors without transacting through financial institutions are classified as

a)

direct transfer

b)

indirect transfer

c)

global transfer

d)

pension transfer

5.

Which is the first commercial bank in India to launch a mutual fund?

a)

SBI

b)

HDFC

c)

Canara Bank

d)

Bank of India

6.

Which of the following organization is the regulator of mutual funds in India

a)

CRISIL

b)

SEBI

c)

RBI

d)

AMFI

7.

What is an Indian depository receipt?

a)

A deposit account with a public sector bank.

b)

It is a depository account with any of the depositories in India.

c)

An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.

d)

It is an instrument in the form of deposit receipt issued by Indian depositories.

8.

Which of the following cannot be called as a debt instrument as referred to in financial transactions?

a)

Certificate of deposit

b)

Bonds

c)

Stocks

d)

Loans

9.

The following are participants in the securities markets ______.

a)

lead Manager

b)

underwriters

c)

Debenture Trustees

d)

Venture Capital Funds

e)

all of the above

10.

______ deals with issue, allotment and transfer of securities and various

aspects relating to company management.

a)

Companies Act, 1956

b)

Depositories Act, 1996

c)

Capital Issues (Control) Act, 1947

d)

None of the above

11.

______ is a clearing member but not a trading member

a)

clearing members

b)

self clearing member

c)

clearing member

d)

custodian

12.

speculator is a person ___________________

a)

who evaluates the performance of the company

b)

who uses his own funds only

c)

who is willing to take high risk for high returns

d)

who considers heresays and market behaviours

13.

Treasury bills are traded in the __________.

a)

money market.

b)

capital market.

c)

government market.

d)

regulated market.

14.

Which of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?


a)

Demat account.

b)

Federal Depository Insurance Corporation

c)

Securities Exchange Commission.

d)

Depository Trust Company.

15.

. All new issues being offered for public sale are registered with_________________.

a)

SEBI

b)

New Issue Market

c)

Maloney act 1936

d)

securities investor protection act of 1970

16.

____________ is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk

a)

Investment

b)

speculation

c)

Gambling

d)

Arbitrage

17.

4. Buying low and selling high, making a large capital gain is associated with ________

a)

Investment

b)

speculation

c)

Gambling

d)

Arbitrage

18.

How many companies are included in the SENSEX of India?

a)

30

b)

50

c)

111

d)

25

19.

Which of the following is not a credit rating agency?

a)

CRISIL

b)

CARE

c)

NIKKEI

d)

ICRA

20.

The first computerised online stock exchange in India was

a)

NSE

b)

OTCEI

c)

BSE

d)

MCX

21.

Indian financial system comprises of..... sector.

a)

Banking and non-banking

b)

Formal and informal

c)

Organised and unorganised

d)

None of these

22.

Which of the following is not a financial service?

a)

Depositories

b)

Custodial

c)

Credit Rating

d)

Initial Public Offering

23.

The company which sets up mutual fund are sponsors

a)

True

b)

False

24.

Bank deposits are non-marketable securities.

a)

True

b)

False

25.

In Right Issue, shares are issued to

a)

General public

b)

Existing shareholders

c)

Institutes only

d)

None of the above

26.

Secondary market is also known as

a)

Primary market

b)

New Issue Market

c)

Financial Market

d)

Stock Exchange

27.

Conversion of physical form of share certificate into an electronic entry is called

a)

Exchange Mechanism

b)

Conversion

c)

Dematerialisation

d)

Rematerialisation

28.

SEBI protects the interest of

a)

Investor

b)

Companies

c)

Brokers

d)

None of the above

29.

The Apex Body who controls the Capital Market of our country is

a)

RBI

b)

SBI

c)

SEBI

d)

None of the above

30.

1. A phenomenon that represents the coexistence of inflation and unemployment in a

a)

stagflation

b)

inflation

c)

deflation

d)

reflation

31.

Which of the following is not a financial firm?

a)

Brokers and merchant bankers

b)

Underwriters and custodians

c)

Banks and financial institutions

d)

Registrars and transfer agents

32.

1. which of the following is an active player in the financial product?

a)

households

b)

business and financial firms

c)

Government

d)

All the above

33.

Which bank account is often used by businessman?

a)

Savings account

b)

Current account

c)

Recurring account

d)

Fixed deposit account

34.

What does demat stands for?

a)

Dematerialised

b)

Demutualised

c)

Dematerialising

35.

___________ is a good indicator of the stock market behaviour.

a)

Reliance

b)

TISCO

c)

Infosys

d)

Nifty index

36.

Which regulatory body governs Mutual Funds in India?

a)

Securities Exchange Board of India

b)

Reserve Bank of India

c)

Forward Market Commission

37.

What is the full form of IMPS?

a)

Immediate Payment Service

b)

Inter-mobile Payment Service

c)

Indian Mobile Payment Service

38.

What is the full form of EMI?

a)

Equated Monthly Installment

b)

Equal Monthly Instalment

c)

Equal Monetary Installment

d)

Equal Money Installment

39.

Whenever RBI does open market operations, actually it tries to regulate which of the following?

a)

Liquidity

b)

Inflation

c)

Bank’s borrowing power

d)

Bank’s Lending Power

40.

What does ETF stands for?

a)

Exchange Traded Fund

b)

Electronic Traded Fund

c)

Exchange Trade fund

d)

Electronic Trading Facility

41.

What is the full form of ATM?

a)

Automated Teller Machine

b)

Automatic Teller Machine

c)

Automatic Telling Machine

d)

Any Time Money

42.

What is the full form of SIP?

a)

Systematic Investment Planning

b)

Stock Investment Planning

c)

Systematic Interest planning

d)

Simple Investment Planning

43.

Money market is the source of ............................ finance

a)

short term

b)

Long term

c)

Medium term

d)

None of the above

44.

At present only two depositories are registered with SEBI .

a)

True

b)

False

45.

Full form of e-IPOs

a)

a. Electronic internet Public Offer

b)

b. Electronic Initial Private Offer

c)

c. Electronic Initial Prospectus Offer

d)

d. Electronic Initial Public Offer

46.

.Dematerialization is the process of holding securities in

a)

a) Paper mode

b)

b) Electronic mode

c)

b) Physical form

d)

d) Wallet

47.

Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?

a)

a. Secondary market

b)

b. Primary market

c)

c. Financial markets.

d)

Money market

48.

What is a Financial Institution?

a)

A financial institution gives people cards

b)

It is an ATM

c)

A financial institution gives people money

d)

A financial institution provides financial services for its customers, including storing their money, managing payments and providing loans

49.

What kind of services do banks offer to customers?

a)

Current Account

b)

Bill Payments or money transfers

c)

Credit Cards

d)

Weekly phone-calls to discuss your bank statement

e)

Foreign Exchange Services

50.

Which of the following is the motivation for merger or acquisition?

a)

Improving target management

b)

Combining complementary resources

c)

Creating value through restructuring and breakups

d)

All of the above

51.

Which of the following methods can be used to assess whether the acquiring company is paying more for the target?

a)

Analyzing premium offered to target shareholders

b)

Analyzing value of the target to the acquirer

c)

All of the above

d)

None of the above

52.
Occurs when a firm acquires former suppliers or customers
a)
Horizontal Merger
b)
Vertical Merger
c)
Product Extension Merger
d)
Market Extension Merger
53.
The acquisition of a former competitor
a)
Vertical Merger
b)
Horizontal Merger
c)
Market Extension Merger
d)
Conglomerate Merger
54.
A firm gains access to complementary products through an acquisition.
a)
Friendly Acquisition
b)
Conglomerate Merger
c)
Market Extension Merger
d)
Product Extension Merger
55.
A firm gains access to complementary markets through an acquisition
a)
Hostile Takeover
b)
Acquisition Premium
c)
Market Extension Merger
d)
Vertical Merger
56.
There is no strategic relatedness between a bidding and a target firm
a)
Conglomerate Merger
b)
Tender offer
c)
Acquisition
d)
Horizontal Merger
57.
In agency problems, there are two ways that mergers and acquisitions benefit managers. Those are...
a)
Diversify Human Capital and Increase Size
b)
Increase Competitive Advantage and Competitive Parity
c)
Increase Profits and Economic Value
d)
None of the above
58.
When one of the bidding firms knows some "extra value" in acquiring the target firm, and other competing firms are unaware of such value is known as...
a)
Imperfectly Competitive Market for Corporate Control
b)
Valuable, Rare, Private Economies of Scope
c)
Valuable, Rare, Costly to Imitate Economies of Scope
d)
Perfectly Competitive Market for Corporate Control
59.
Which type of challenge is the hardest to overcome in a merger?
a)
Strategic
b)
Functional
c)
Cultural
d)
Operational
60.

A merger between Fiat and Tata motors would be what type of merger?

a)

Vertical merger

b)

Horizontal merger

c)

Conglomerate merger

d)

Mixed Conglomerate merger

61.

when acquisition is done through coercive means,it is engaging in which type of acquisition?

a)

Reverse acquisition

b)

Hostile acquisition

c)

Back flip acquisition

d)

None of these

62.

When is the term 'consolidation' is used in the process of combination?

a)

when the firms are of similar size.

b)

when the firms are of different size.

c)

when the firm operates in two different markets.

d)

All of these

63.

A private company acquiring a Public company is which type of acquisition?

a)

Hostile acquisition

b)

Reverse acquisition

c)

Back flip acquisition

d)

Friendly acquisition

64.

which one among the followings are the reasons for mergers and acquisitions?

a)

Synergy

b)

Access to fund

c)

Entry in to new market

d)

All of these

65.

The joining together of two or more companies or organizations to form one larger one

a)

Mergers

b)

Acquisitions

66.

One firm buys another

a)

Mergers

b)

Acquisitions

67.

Benefits of Mergers and Acquisitions

a)

The necessity of one culture to adapt to another to form an organization

b)

Having greater market power and larger consumer base

c)

Disagreements between firms

68.

Limitations of Mergers and Acquisitions

a)

Lowering cost per unit

b)

Diversification

c)

Original owners losing some degree of control

69.

Two toy companies decide to merge because they believe they will be able to develop more ideas for new toys and produce and sell them faster, at lower costs.

a)

Horizontal

b)

Vertical

c)

Conglomerate

70.

A major producer of automobiles buys a large rental car company.

a)

Horizontal

b)

Vertical

c)

Conglomerate

71.

A life insurance company merges with a major telecommunications company.

a)

Horizontal

b)

Vertical

c)

Conglomerate

72.

A large producer of business and personal computers buys a company that produces computers for the home market.

a)

Horizontal

b)

Vertical

c)

Conglomerate

73.

A commercial bank buys a credit union.

a)

Horizontal

b)

Vertical

c)

Conglomerate

74.

A corporation that specializes in computer operating systems merges with a company that produces software for word processing and spreadsheets.

a)

Horizontal

b)

Vertical

c)

Conglomerate

75.

A cable television company merges with a company that uses satellite dish technology to provide television service to consumers.

a)

Horizontal

b)

Vertical

c)

Conglomerate

76.

An automobile manufacturer that buys a baseball team.

a)

Horizontal

b)

Vertical

c)

Conglomerate

77.

A cable television super station buys a motion picture corporation that owns thousands of classic movies.

a)

Horizontal

b)

Vertical

c)

Conglomerate

78.

All the pizza companies in your community are brought up by one person.

a)

Horizontal

b)

Vertical

c)

Conglomerate

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