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MCQs for Financial Markets
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MCQs for Financial Markets
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25 Questions

1. On this day, the exchange will deliver the share or make payment to the other broker,
2. Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.
3. The process of holding shares in electronic form is known as
4. Which of the following is not a protective function of stock exchange?
5. It serves as an intermediary between the investor and the depository who is authorised to maintain the accounts of dematerialised shares.
6. Which of the following statements is not true with regard to primary market?
7. Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.
8. It is used as an alternative to bank borrowing for large and creditworthy companies,
9. A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
10. Raj Enterprises wishes to invest ₹1,10,000 in treasury bills. What is the maximum number of treasury bills it can buy with this fund?
11. Jaykant is holding hundred shares of a company. He has been given a privilege offer to subscribe to a new issue of shares of the same company in proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
12. The allocated function is performed by
13. Which of the following statements is not true with regard to money market?
14. It is an instrument of short-term borrowing by the Government of India maturing in less than one year.
15. It is a legally enforceable document which is issued by a stock broker within 24 hours of the execution of a trade order.
16. PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank intum will offer the shares to general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
17. Which of the following statements is true with regard to financial markets?
18. It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.
19. After the trade has been executed, the broker issues a Contract Note to the investor within
20. Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.
21. The capital market consists of
22. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
23. Which of the following participants represent capital market?
24. A company can raise capital through the primary market in the form of
25. Who issues a treasury bill?