Introduction To Financial Services
Introduction To Financial Services
Introduction To Financial Services
Section A
Choose the correct answer. Each question carries 1 mark. 1x10 = (10 Marks)
1. Which one of the following is not a money market security?
a) Treasury bills b) National savings certificate
c) Certificate of deposit d) Commercial paper
2. UTI
a) is a Non-intermediary financial institution. b) is an Intermediary financial institution.
c) is a Regulatory institution. d) None of these
3. Which of the following carries out “Open Market Operations (OMO)”?
a) Ministry of Finance
b) Fixed Income Money Market Derivatives Association of India (FIMMDAI)
c) Securities Exchange Board of India (SEBI)
d) Reserve Bank of India (RBI)
4. What does letter “I” depicts in the acronym “SIP”?
a) Insurance b) Interest c) Installment d) Investment
5. The term “Demat” is mainly associated with which among the following sectors?
a) Information Technology b) Banking Sector c) Capital Market d) Healthcare
6. The charge on moveable assets without possession to be created is a charge known as
a) Lien b) Pledge c) Hypothecation d) Mortgage
7. Which of the following is not a “Credit Rating Agency” (CRA)?
a) Equifax b) CRISIL c) Experian d) Capital First
8. All Venture Capital Funds must be registered with
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory & Development Authority of India (IRDAI)
d) Association of Mutual Funds of India (AMFI)
9. The complete absorption of one company by another , wherein the acquiring firm retains its
identity and the acquired firm ceases to exists as a separate entity, is called a:
a) Merger b) Consolidation c) Tender off d) Spinoff
10. In the lease arrangement, the owner of the asset is:
a) The Lender b) The Lessee c) The Lessor d) The Equity Trustee
Section B
Answer any 5 questions. Each question carries 6 marks. (6x5=30 marks)
11. What do you understand by financial systems?
12. What are the characteristics of a liquid market?
13. What are the authorized activities of a merchant banker?
14. State the functions of the SEBI.
15. Give the name of main participants of money market.
16. What is meant by mutual funds?
17. Write notes on following items:
a. Hire purchase credit
b. Lease Finance
18. Distinguish between money market and capital market.
Section C
Answer any 3 questions. Each question carries 10 marks. (10x3=30 marks)
19. What are the different ways of classifying financial markets?
20. What are the important developments have taken place in the field of housing finance in India?
21. Compare the functions of merchant banking with the commercial banking in India.
22. What are the scopes and Objectives of venture capital funds? Categorize the important venture
capital funds and their schemes in India.