Practice Test

Q1) Which of the following is not a part of the unorganised sector of the Indian money market? Show Answer

Q2) Which of the following statements regarding call money market is not correct? Show Answer

Q3) Which of the following is not a characteristic of Indian money market? Show Answer

Q4) Which of the following statements regarding gilt- edged market is not correct? Show Answer

Q5) Which of the following statement regarding S.E.B.I. is not correct? Show Answer

Q6) Which of the following is not a characteristic of a forward contract? Show Answer

Q7) In call money market, loans are given for a period of : Show Answer

Q8) Rolling settlement period in India introduced by N.S.E is : Show Answer

Q9) Indigenous bankers are part of the organised sector of Indian money market. Show Answer

Q10) Call money rate is the most appropriate indicator of liquidity position in the money market. Show Answer

Q11) Borrowing and lending transactions inthe call / notice money market are carried out for 3 months Show Answer

Q12) There is close integration between organised and unorganised sector of money market in India. Show Answer

Q13) The Commercial paper is a long term instrument of raising fund by corporate. Show Answer

Q14) Certificates of deposits are negotiable & tradable in the short term money market Show Answer

Q15) The Treasury bill market in India is very much underdeveloped. Show Answer

Q16) The money market in India is adequately diversified in the recent years. Show Answer

Q17) Money Market Mutual Funds enable individual investors to participate in money market. Show Answer

Q18) Capital Market plays a significant role in country's industrial development Show Answer

Q19) Primary market deals in securities already issued or existing or outstanding. Show Answer

Q20) Secondary market significantly contributes in country's economic growth. Show Answer

Q21) Credit Rating Agencies are passive participants in the capital market. Show Answer

Q22) SEBI has allowed the companies to determine par value of shares issued by them. Show Answer

Q23) Money market is a market for lending and borrowing of long term funds Show Answer

Q24) Money market covers money and financial assets that are close subsitutes of money Show Answer

Q25) Money market is a single market Show Answer

Q26) Money market is a retail market for short debt instruments Show Answer

Q27) RBI plays a role of merchant banker to the government Show Answer

Q28) Capital Market has a crucial significance to the capital formation Show Answer

Q29) Adequate capital formation is dispensable for speedy economic development Show Answer

Q30) The capital market does not encourages savings Show Answer

Q31) Financial intermediaries help in mobilising savings and supplying funds to the capital market Show Answer

Q32) Merchant banks in India mange and underwrites new issues Show Answer

Q33) Diversification increses the risk of investment Show Answer

Q34) Mutual Funds are a channel for getting rich quickly Show Answer

Q35) Investments of large amount of funds by mutual funds bring in benefits of economies of scale Show Answer

Q36) Mutual funds investors can easily encash their investment Show Answer

Q37) Mutual fund investors have the option of transferring their holdings from one scheme to other Show Answer

Q38) Derivatives increases Risk Show Answer

Q39) Derivatives increases liquidity in the market Show Answer

Q40) Derivatives increases transaction cost Show Answer

Q41) Derivatives smoothen price fluctuations Show Answer

Q42) Future contracts are non transferable Show Answer

Q43) Future contracts are most important instruments Show Answer

Q44) Most commodity exchanges in the world, trade in industrial products Show Answer

Q45) Money market has to provide facility for adjusting liquidity to Show Answer

Q46) Gilt edged securities refer to Show Answer

Q47) E.P.S. in share market stands for Show Answer

Q48) Which of the following is not an organized sector in India? Show Answer

Q49) C.R.A. in banking parlance stands for Show Answer

Q50) The period for call money is _________. Show Answer

Q51) Certificates of deposits are issued by: Show Answer

Q52) Which of the following is not a part of the organized sector of the Indian money market? Show Answer

Q53) Industrial Securities Market is a market for shares and debentures of- Show Answer

Q54) Money market deals with long term monetary transactions. Show Answer

Q55) Money market promotes economic growth. Show Answer

Q56) Fall in interest rate cause the rate causes the bond prices also to fall. Show Answer

Q57) Credit rating agencies determine interest rates on debt securities. Show Answer

Q58) Capital market deals with long term monetary transactions. Show Answer

Q59) A fall in interest rates reduces the demand for bonds in the secondary market. Show Answer

Q60) There exist too many interest rates in the Indian money market. Show Answer

Q61) Increasing Government borrowings will raise interests rates. Show Answer

Q62) Capital market also provides a valuable source of external finance. Show Answer

Q63) Capital market does not provide an effective source of investment in the economy. Show Answer