Practice Test

Q1) The market which provides short term fund is______ Show Answer

Q2) _____ are the debt instruments which are issued by corporate house for raising short term financial resources from the money market. Show Answer

Q3) ___ is the most common method to meet credit need of trade & industry Show Answer

Q4) ____ are issued by the government on discount for a fixed period not exceeding one year, containing a promise to pay the amount stated to the bearer of the instrument. Show Answer

Q5) ______ is a market for borrowing and lending long term capital required by business enterprise Show Answer

Q6) The market which is also known as the government securities market is _____ market. Show Answer

Q7) A market where existing securities are traded is called _____ market. Show Answer

Q8) The repurchase rate which is also known as official bank rate is ____ rate Show Answer

Q9) Money market facilitates mobilization of funds Show Answer

Q10) Repo rate is known as the official bank rate Show Answer

Q11) The financial market does not contribute towards the nation?s growth and development. Show Answer

Q12) Commercial bill is a common method to meet long term needs of an industry Show Answer

Q13) The gilt edged market is also known as the government securities market Show Answer

Q14) Commercial market consists of financial market. Show Answer

Q15) Primary market is known as New Issue market Show Answer

Q16) Stock exchange provides ready market for sale & purchase of gold & silver. Show Answer

Q17) The investors lend money to the borrowers through a market called as _______ market. Show Answer

Q18) The financial market acts as an ______ between investors and borrowers Show Answer

Q19) Financial market helps in transforming _______ into capital Show Answer

Q20) The maximum period for which the fund are traded in the money market is ________. Show Answer

Q21) _____ is the most important participant in the money market. Show Answer

Q22) ________ Government is a borrower in the money market, through the issue of treasury bills. Show Answer

Q23) Bills of Exchange is also called as _______ bills Show Answer

Q24) Commmercial ________ is an unsecured promissory note issued by highly rated companies. Show Answer

Q25) The ______ market is a core of a country's financial system as it helps in mobilisation of resources Show Answer

Q26) _______ Market is a market for long term debt and equity shares, as per SEBI. Show Answer

Q27) _______ is a regulator of capital markets. Show Answer

Q28) Under _____ Investors can directly buy the securities from the issuing company. Show Answer

Q29) In ______ market, companies sell their shares, debentures, etc for the first time to raise fresh capital. Show Answer

Q30) ________ market is most commonly known as Stock Market or Stock Exchange. Show Answer

Q31) In ______ market, Government and Semi - government securities are traded. Show Answer

Q32) Financial market helps in mobilisation of savings and convert in into investments. Show Answer

Q33) Financial Markets allows unproductive use of the funds. Show Answer

Q34) Both investors and industries needs each other. Show Answer

Q35) The instruments like commercial paper, liquid and treasury bills, etc are traded in capital market. Show Answer

Q36) SEBI is the most important participant in the money market. Show Answer

Q37) The T - Bills are issued through RBI. Show Answer

Q38) NBFCs use their surplus funds to invest in government securities, bonds, etc. Show Answer

Q39) T - Bills are also called as Trade Bills. Show Answer

Q40) Capital market also includes private placement of debt and equity and stock exchange Show Answer

Q41) RBI is a regulator of Capital Markets. Show Answer

Q42) The main function of primary market is to facilitate capital information Show Answer

Q43) The securities are traded between investors in primary market. Show Answer

Q44) The businessmen, corporates, governments etc. which may need funds are called as __________. Show Answer

Q45) A financial market is a market in which people trade __________ and derivatives at low transaction costs. Show Answer

Q46) Financial market allows lenders to earn interest or dividend on surplus funds, leading to the enhancement of individual and __________ income. Show Answer

Q47) Money market is a market for lending and borrowing of funds for __________ term. Show Answer

Q48) Returns on investments done in a money market are __________. Show Answer

Q49) Central Government is a borrower in the money market through the issue of __________. Show Answer

Q50) Trade bills have short term maturity period generally of __________ days. Show Answer

Q51) When the trade bills are accented by commercial banks it is known as __________. Show Answer

Q52) __________ agreements have maturity ranging from 24 hours to several months. Show Answer

Q53) Securities that can be transferred are called __________ securities. Show Answer

Q54) __________ markets stand at greater risk but, offer high returns on investments. Show Answer

Q55) __________ refers to the process of offering shares of company to public for first time. Show Answer

Q56) Secondary market is more commonly known as the __________ market. Show Answer

Q57) A Financial market is a market in which people trade financial securities and derivatives at high transaction costs. Show Answer

Q58) Money market is the market for the long term funds. Show Answer

Q59) Money market has no geographical area. Show Answer

Q60) Treasury bills are issued by commercial banks. Show Answer

Q61) Life insurance companies are the usual lenders in the money market. Show Answer

Q62) NBFCs never invest their surplus funds in government securities, bonds etc. Show Answer

Q63) Commercial paper is a secured promissory note. Show Answer

Q64) Commercial banks can rediscount the commercial bills any number of times till the maturity of the bill. Show Answer

Q65) CDs may have the maximum maturity of 3 years if they are issued by non financial institutions. Show Answer

Q66) Capital market is the market for the long term funds. Show Answer

Q67) The two types of industrial securities market are primary market and money market. Show Answer

Q68) Primary market is also known as new issue market Show Answer

Q69) Under private placement, company offers Its securities to a selected group of persons identified by Board except qualified institutional buyers and employees. Show Answer

Q70) Secondary market is commonly known as stock market. Show Answer

Q71) There is no fresh issue in the secondary market. Show Answer