Practice Test

Which of the following terms is not used in Economics ?

The securities and Exchange Board of India (SEBI) has asked all FIIs to divulge the structure of their offshore entities. What purpose will it serve ?
1. To identify if there is any flow of funds from some questionable sources.
2. To know how much money FIIs are planning to invest in India in 2010-11.
3. To forecast the possibility of any financial crisis in near future.

"Mutual Funds reported exceptional performance in 2009-10" was the news in major financial news papers recently. What is Mutual Funds ?
(A) A type of collective investment scheme that pools money from many investor and invest it in stocks, bonds or other money market instruments.
(B) It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else.
(C) When several banks and finanacial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, powerplants etc. the common pool is know as Mutual Fund.