School of Distance Education

UNIVERSITY OF CALICUT

SCHOOL OF DISTANCE EDUCATION

BBA
(Specialization – Finance)

(2019 Admission Onwards)

VI Semester

FINANCIAL SERVICES
QUESTION BANK
1. allocates saving efficiently in an economy to ultimate users either for
investment in real assets or for consumption
a. Economic system c. Financial system
b. Banking system d. Market system

2. Which of the following is not a regulatory institutions in Indian financial system.

a. RBI c. SEBI
b. CIBIL d. IRDA
3. is regarded as a queen of Indian financial system.
a. SEBI c. Finance Ministry
b. RBI d. BSE

4. ————— represent claims for the payment of a sum of money sometimes in the
future and/or a periodic payment in the form of interest or dividend.
a. physical asset c. financial asset
b. fixed asset d. none of these

5. SEBI was established in —————.

a. 1988 c. 1991
b. 1985 d. 1990

6. RBI started functioning on —————.

a. 1-4-1935 c. 1-4-1882
b. 1-4-1948 d. 1-4-1945

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7. ‘Follow on Public Offer’ is also known as.
a. Further public offer c. Subsequent public offer
b. Seasoned public offer d. All of these

8. ————— has the statutory powers to regulate and promote the Indian capital market.
a. Registrar of issue c. SEBI
b. Merchant banks d. RBI

9. Any company making a public issue of value of more than Rs. ———— is required to
file a draft offer document with SEBI.
a. 100 lakh c. 50 lakh
b. 25 lakh d. 10 lakh

10. ————— Committee was constituted by SEBI for deciding about derivatives trading.
a. L.C.Gupta c. Vaghul
b. R. L. Gupta d. Malhotra

11. RBI is the lender of last resort for —————.

a. Central Government c. Stock markets
b. State Governments d. Commercial Banks

12. The market regulator of Indian Capital Market is ……………

a. DFHI c. SEBI
b. RBI d. STCI

13.….facilitate the transfer of funds from savers to the borrowers.

a. goods market c. financial market
b. money market d. consumer market
14.…..market is a market for old issues.
a. Money market c. Secondary market
b. Primary market d. All the above

15. Which of the following is a financial asset

a. gold c. share
b. silver d. Land.

16. Which of the following is a cash asset?

a. deposit created out of loans c. bond
b. share d. Post office certificate.

17. Govt. bond is a

a. short term security c. medium term security
b. long term security d. Either a or b.

18. Money market deals with ..................... instruments.

a. long term c. medium term
b. short term d. all of these.

19. The market for extremely short period loan is called.....................

a. call money market c. T-bill market
b. money at short notice d. G-sec market
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20.….acts as an intermediary between Govt. and money market

a. RBI c. Commercial banks
b. SEBI d. All the above

21.….are drawn by contractors on the Govt. departments for the goods supplied to
them
a. treasury bills c. bill of lading
b. supply bill d. documentary bill
22. According to SEBI guidelines.
a. all the new issues should be in c. all the B group shares should be
depository mode traded trough NSDL
b. all the A group shares should be d. All of the above are true
traded through NSDL
23.The sensex has ….stocks
a. 25 c. 50
b. 30 d. 40

24.….is a market for bankers’ acceptances

a. discount market c. Interbank participation market
b. CDs market d. Acceptance market

25. These are instruments, which give a fixed rate of interest for a fixed period of maturity
a. Debts c. Mutual funds
b. Equities d. Lease fund

26. An investor becomes the owner of a company to the extent of the capital invested by
a. Debts c. Mutual funds
b. Equities d. Lease fund

27.Stock mutual funds also sometimes called.

a. Open end fund c. Growth fund
b. Close end fund d. Equity fund

28. ..................... is an unsecured short term promissory note issued by creditworthy

companies?
a. commercial paper c. Repo
b. interbank participation certificate d. Certificate of deposit

29. Discount and Finance House of India was set up in .....................

a. 1982 c. 1992
b. 1988 d. 1969
30. Discount and Finance House of India was set up in pursuance of the recommendations of
.....................Committee
a. Malegam c. Vaghul
b. Malhotra d. Narasimham
31.has been set up mainly to provide a secondary market in Govt. Securities
a. DHFI c. STCI
b. OTCEI d. NSDL

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32. Right shares are offered to..................... c. List 2 contributories

a. Debenture holders d. Liquidators
b. Existing shareholders

33.….is the suitable method where small companies issue shares

a. public issue c. offer for sale
b. placement d. none of these

34. ..................... is a process of admitting securities for trading on a recognised stock

exchange.
a. registration c. listing
b. filing d. admission

35. ..................... is a preferential independent broker who deals in securities on his

ownbehalf.
a. Jobber c. Remisiers
b. sub broker d. Arbitragers

36. ....................................... The facility to carry forward a transaction from one

settlement period to another isknown as transaction
a. Badla c. cornering
b. arbitrage d. trading inside

37. The device adopted to make profit out of the differences in prices of a security in
to different markets is called.....................
a. cornering c. arbitrage
b. prise rigging d. margin trading

38. The central depositary ...................... the security on behalf of the investors
a. hold c. both a & b above
b. transfer d. none of these

39.…..of shares in the first step in the depository process

a. Registration c. Rematting
b. Listing d. Immobilisation

40.……is the link between the depository and the owner

a. Agent c. Beneficiary
b. Depository participant d. Broker

41.…..issues does not bring in any fresh capital

a. equity c. debenture
b. preference d. bonus

42. Prospectus is not issued in

a. public issue c. right issue
b. private placement d. none the above

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43. An issuer need not file an offer document in case of

a. public issue c. right issue
b. preferential allotment d. bought out deal

44. An issuer can launch an IPO within.....................

a. 3 months c. 9 months
b. 6 months d. one year

45. An issue of a minimum size of Rs. ...................... crore is a mega issue

a. 50 c. 150
b. 100 d. 300

46. Financial institutions are also known as ........................

a. Financial organisation c. Financial system
b. Financial intermediaries d. Any of the above

47............................ is the first development financial institution in India.

a. IDBI c. IFCI
b. ICICI d. RBI

48. This fund is one that is available for subscription all through the year.
a. Open end fund c. Close end fund
b. Growth fund d. Income fund

49. IDBI was established in ........................

a. 1948 c. 1992
b. 1954 d. 1964

50. ........................ is an apex institution to coordinate, supplement and integrate the

activities of all existing specialised financial institutions.
a. IFCI c. RBI
b. IDBI d. SEBI

51. Technical consultancy Organisations were set up by........................

a. IFCI c. RBI
b. IDBI d. SEBI
52. ICICI was set up in ........................
a. 1955 c. 1989
b. 1964 d. 1935
53............................. assists mainly to industrial undertakings in the private sector
a. IFCI c. ICICI
b. IDBI d. SEBI

54. LIC was established in........................ c. 1989

a. 1956 d. gcv1935
b. 1964
55. UTI was set up in the year ........................

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a. 1956 c. 1969
b. 1964 d. 1948

56. The first exchange was to set up in India

was in c. Chennai
a. Kolkata d. Delhi
b. Mumbai

57. In secondary market

a. Second hand securities are traded c. Right issues are traded
b. new securities are traded d. None of these

58. The markets which generally confined to the stock exchanges

a. Primary market c. Tertiary market
b. Secondary market d. All the above

59. .......... ---------is invest in shorter securities such as treasury bills

a. bond fund c. stock fund
b. money market fund d. equity fund

60. Which of the following gives long term finance?

a. IDBI c. IFCI
b. ICICI d. All the above

61. Which of the following is a fee based service

a. hire purchase c. capital issue management
b. Leasing d. Underwriting.

62. Find the odd one out

a. commercial paper c. certificate of deposit
b. share certificate d. Treasury bill.

63. The process of managing the sales ledger of a client by a financial service company is
called
a. forfaiting c. leasing
b. factoring d. None of these.

64. Mutual funds are very popular in

a. USA c. Japan
b. UK d. India
65. In India, the company which actually deals with the corpus of the mutual fund is called
a. sponsor company c. asset management company
b. trustee company d. Mutual fund Company.

66. The first bank in India to start factoring business is

a. Canara bank c. Punjab National Bank
b. SBI d. Allahabad Bank.
67. An asset with a physical value is called
a. Financial asset c. Fictitious asset
b. Non financial asset d. Fixed asset
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68. An asset which derives its value because of a contractual claim is

a. Financial asset c. Fictitious asset
b. Non financial asset d. Fixed asset

69. Gold is ----------- asset

a. Financial asset c. Fictitious asset
b. Non financial asset d. Intangible asset

70. Cash is --------------asset

a. Financial asset c. Fictitious asset
b. Non financial asset d. Intangible asset

71 ------------- is a whole sale market for short term debt instrument.

a. capital market c. money market
b. forex market d. any of the above

72. Money lent in the inter-bank market for 15 days or more is called -----------
a. Call money c. Money at short notice
b. Term money d. All the above

73. Which out the following is not a service provided by factor in factoring?
a. Management of recievables c. Collection of debts
b. Production of goods d. Maintaining
sales ledger
74. A merchant banker can claim a charge …..% as the commission for the whole issue
a. 10 c. 5
b. 2.5 d. 0.5
75. CBLO stands for
a. Collateralised Borrowing and Lending Obligation
b. Central Banks Lending Obligation
c. Commercial Bank and Lending Option
d. None of these

76. The NSDL established in

a. August 1996 c. January 1996
b. August 1998 d. January 1998

77. ….fund invests in highly liquid securities like commercial paper

a. Income fund c. Equity fund
b. Momey market fund d. Balanced fund

78. Merchant banks in India started in

a. 1955 c. 1972
b. 1969 d. 1992

79. Merchant banks concept in India introduced by

a. SBI c. ANZ Grindlays
b. PNB d. City bank

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80. SENSEX is the index of

a. BSE c. OTCEI
b. NSE d. CSE

81. NIFTY is the index of

a. BSE c. OTCEI
b. NSE d. CSE

82. The first Indian equity index is

a. Nifty c. Dollex
b. Sensex d. Defty

83.….is a product whose value is derived from the value of underlying asset
a. Repo c. G.sec
b. T-bills d. Derivatives

84. BOLT stands for

a. Borrowing or Lending Trade c. Bond or Loan Transaction
b. Bombay Online Trading d. None of these

85 -------------- is also known as “G.Secs”

a. Gold Traded Fund (GTF) c. Govt. Securities
b. General Securities d. Growth oriented fund

86. …….are negotiable instrument issued by an overseas depository

a. ADR c. IDR
b. GDR d. Any of the above

87. The company which sets up a mutual fund is called…

a. Fund company c. Originator
b. Sponsor d. Obligator

88. The maximum size of venture capital is Rs.

a. 1 crore c. 10 crore
b. 5 crore d. 2 crore

89. Venture capital is originated in ...........

a. India c. Britain
b. France d. USA

90. Which of the following is a fee based service

a. Hire purchase c. Capital issue management
b. Leasing d. Underwriting

91. Find the odd one

a. Commercial paper c. Cetificate of deposit
b. Share certificate d. Treasury bill

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92. ESOP stands for
a. Equity share option Plan c. Employee stock Option Plan
b. Equity shares Option premium d. Equity Stock Option Plan

93. QIPs Stands for

a. Quality investment Project c. Qualified Institutional Placement
b. Qualified investment Plan d. Qualitative Investment Premium

94. What you mean by “STRIPS”

a. Separate Trade Register of Initial Public Securities offer
b. Stock Trading Register of Interest and Principal Securities
c. Separate Trading of Registered Interest and Principal of Securities
d. Share Transfer and Registrar of Indian Public Securities issues

95. Gilt Edged Securities are

a. Govt. Securities c. Any of the above
b. Company’s securities d. None of these

96. In India, forfaiting services are offered by

a. RBI c. EXIM bank
b. SBI d. All the above

97. The small investors’ gateway to enter into big companies is —————
a. Equity shares c. Bonds
b. Preference shares d. Mutual fund

98. Money Market mutual fund is also known as---------------

a. Growth fund c. Income fund
b. Balanced fund d. Cash fund

99. ————— fund invests in highly liquid securities like commercial paper.
a. Open ended fund c. Balanced fund
b. Close ended fund d. MMMF

100. The idea of providing factoring services in India was first thought by —————
a. Vaghul committee c. Tanden Committee
b. Malhotra Committee d. None of these

101. In india, the company which deals with the corpus of mutual fund is called
a. Sponsor company c. Asset management company
b. Trustee company d. Mutual fund company

102. Trade debts have to be assigned in favour of the financing company under…..
a. Discounting c. Factoring
b. forfaiting d. All of these

103. Under factoring the factor acts in the capaacity of

a. A trustee c. An agent of his client
b. An administrator d. A holder for value

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104. The first bank in India to start factoring business

a. Canara Bank c. Punjab National Bank
b. SBI d. Allahabad Bank

105. The first Indian bank to start merchant banking division in India
a. UCO Bank c. SBI
b. Canara Bank d. ICICI

106. In India, indigenous bills popularly known as

a. Time bills c. Trade bills
b. Hundis d. Sight bills

107. Which of the following are examples of Hundis in india

a. Shah jog c. Jokhani
b. Namjog d. All the above

108. Generally , mutual funds are of

a. High risk c. Low risk
b. Risk free d. Any of the above

109. The market which helps commercial banks to maintain their SLR requirement is
a. Call loan market c. Acceptance market
b. T-bills market d. Commercial bill market

110. The corpus of funds and its duration is fixed in case of ….find
a. Income funs b. close ended c. open ended d. balanced

111. Equipment leasing is ------- financial service.

a. Fund based c. Fee based
b. Non-fund based d. None of the aobve

112. The certificate which evidences an unsecured corporate debt of short term maturity
a. Certificate of Deposit c. Secured Premium Notes
b. Commercial paper d. Interbank participation Certificate

113. Major players of Indian money market is

a. Central bank c. Commercial banks
b. Co-operative banks d. Indigenous banks
114 ---------is the suitable method where small companies issue shares
a. Offer for sale b. Issue by prospectus
a. Private placement c. All the above
115. Managing the capital issue is ….. financial srvice
a. Fund based c. Non fund based
b. Fee based d. Both b and c
116 ---------isreferred as both fund based and fee
based financial service c. Factoring
a. Hire purchase d. Underwriting
b. Leasing

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117. The majority shareholder in CRISIL is…..
a. Standard & Poors’ c. Fitch Ratings Inc.
b. Moody’s d. Dun & Brandstreet

118. BOLT was introduced by BSE in the year

a. 1990 c. 1992
b. 1995 d. 1999

119. -------- is a permission to quote securities officially on the trading floor of stock
exchange
a. Origination c. Distribution
b. Underwriting d. Listing

120. Which of the following is India’s first Credit Information Company?

a. SMERA c. CRISIL
b. CERSAI d. CIBIL

121. Rolling Settlement system was introduced by SEBI in the year

a. 1994 c. 1996
b. 1998 d. 1999

122. The facility to carry forward a transaction from one settlement period to another is called
--------- transaction
a. Hand delivery c. Cornering
b. Badla d. Arbitrage

123. The device adopted to make profit out of price differences in two different markets
a. Cornering c. Rigging
b. Wash sales d. Arbitrage

124. A person appointed by a stock broker to assist to him in the business of securities trading
at trading floor of stock exchanges is
a. Sub-broker c. Authorised clerk
b. Commission broker d. Remisiers

125 ------------- is also known as Remisiers and Half-commission man

a. Sub-broker c. Authorised clerk
b. Commission broker d. Jobbers

126. An order for the purchase of securities at a fixed price is known as

a. Limit order c. Discretionary order
b. Open order d. Stop loss order

127. Speculator who neither buy nor sell securities in the market, but still trade on them are
called
a. Wolves b. Stag c. Bull d. Bear

128. The process of holding the entire supply of a particular security with a view to dictating
terms is called
a. Cornering c. Rigging
b. Wash sales d. Arbitrage
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129 -------------market deals in unlisted securities
a. Blue chip market c. Grey market
b. Bear market d. Bull market

130. When purchases of securities are more than sales of securities, the market is called
a. Bullish c. Grey
b. Bearish d. Odd

131. When sales of securities are more than purchases of securities, the market is called
a. Bullish c. Grey
b. Bearish d. Odd

132. --------- is the charges paid by a bull speculator to the other party for obtaining carry
over facility
a. Backwardation c. Spread
b. Contango d. Margin

133. --------- is the amount paid by bear to facilitate him to renew a bargain until next
settlement date
a. Backwardation c. Spread
b. Contango d. Margin

134 ---------is the process of selling securities without owning them

a. Short selling c. Margin trading
b. Long selling d. Prise rigging

135. Bull speculators are also known as

a. Tharawaniwalas c. Mandiwalas
b. Tejiwalas d. Badliwalas

136. Bear speculators are also known as

a. Tharawaniwalas c. Mandiwalas
b. Tejiwalas d. Badliwalas

137. Another name of jobber is

a. Tharawaniwalas c. Mandiwalas
b. Tejiwalas d. Badliwalas

138. Those who provides finance for carry forward transactions in securities is called
a. Tharawaniwalas c. Mandiwalas
b. Tejiwalas d. Badliwalas

139. The speculator who observes very fast the trends and changes in market is
a. Bull c. Stag
b. Bear d. Wolves

140. ------is the bear speculator who struggling to complete his commitments because of
wrong foot
a. Bull c. Stag
b. Lame duck d. Wolves

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141. Which of the folowing is Asia’s first stock exchange?
a. SSE c. BSE
b. TSE d. NSE

142. Which of the following regulates credit rating agencies in Inia?

a. SEBI c. RBI
b. ICAI d. NSE

143. Financial markets can be classified as money market and ….. markets.
a. Secondary c. Securities
b. Capital d. Primary

144. Which of the following are role of investent banks?

a. Raising capital c. Help in day today functions of
b. Hiring of employees management
d. All the above

145. Depositories help investors hold securities in …..form

a. crude b. electronic c. physical d. depository

146. SIDBI is fully owned subsidiary of

a. IDBI c. SEBI
b. RBI d. IFCI

147. “AMBI” stand for

a. Association of Management of Banks in India
b. Association of Merchant banks in India
c. Association of Modern Banks in India
d. Automated Mechanism for Borrowing and Investment

148. In listed securities, “Group A shares” are also known as

a. Specified shares c. Non- specified shares
b. Cleared securities d. Both a & b above

149. In listed securities, “Group B shares” are also known as

a. Specified shares c. Non- specified shares
b. Non-Cleared securities d. Both b & c above

150. Odd lot shares are coming under --------- of listed securities
a. Group A c. Group C
b. Group B d. Any of the above

151. ALBM (Automated Lending &Borrowing Mechanism) was introduced by

a. NSDL c. NSCCL
b. SEBI d. CDSL

152. under public issue of shares, reservation for permanent employees

a. 10% c. 15%
b. 25% d. 50%

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153. The conditions to be satisfied by a public company for issuing Right shares are
specified in ------------- of Companies Act.1956
a. Sec.75 c. Sec.81
b. Sec.79 d. Sec.91

154 ------------is a method of cancellation of shares

a. Book building c. Buy back
b. Bonus issue d. Reissue

155. Which of the following is / are method of Buy back of shares

a. Tender offers c. Dutch Auction
b. Open offers d. All the above

156. Over the Counter Exchange of India commenced operation in the year
a. 1988 c. 1995
b. 1992 d. 1989

157. Members of the OTCEI are ---------- only

a. Individuals c. Financial institution
b. Corporates d. Banks

158. The whole sale market segment for NSE is meant for
a. Corporate securities c. Securities of MNCs
b. Govt.securities d. Securities of Financial Institutions

159. As per SEBI guidelines, a new company which has not completed 12 months
commercial productions has to issue shares at -------
a. Discount c. Par
b. Premium d. any of the above

160. National Stock Exchange (NSE) established in the year

a. 1990 c. 1995
b. 1992 d. 1999

161. Method of trading in NSE is

a. Floor based- Order driven c. Screen based - Order driven
b. Screen based- Code driven d. Floor based - Quote driven

162. The term ‐‐‐‐‐‐‐‐‐‐‐refers financial investment in a highly risky and growth
oriented venture with the objective of earning a high rate of return.
a. Venture capital c. Merchant banking
b. Leasing d. None of theses

163 ---------is a road towards a high growth economy.

a. Venture capital
b. Merchant banking
c. Leasing
d. None of these
164. Discount and Finance House of India (DFHI) mainly deals in
a. Commercial bills c. Treasury bills
b. Corporate securities d. Commercial papers
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165 ---------of shares is the first step in depository process
a. Mutualisation c. Immobilisation
b. Mobilisation d. Rematerialisation

166. In depository system, ----------is a link between depository and the owner.
a. Depository participant c. Issuer
b. Register and Transfer Agent d. Custodian.

167. High risk is an outstanding feature of

a. Mutual fund c. govt. securities
b. Debenture fund
d. V enture capital

168. The group of shares which are not permitted for short selling are
a. A group c. T group
b. B group d. None of these

169. The purpose of valuation is to assess the profitability & ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the venture
a. Accesibility c. Validity
b. Marketability d. None of these

170. Functions of financial services exclude…..

a. Mobilisation of savings c. Specialised services
b. Allocation of fund d. Collection of tax

171. . Role of merchant bankers ……….

a. Mobiliation of funds c. Innovation
b. Promotional function d. All of these

172. In a stock exchange where the ownership, management and trading are concentrated in a
single group, it is called
a. Mutual exchange c. Dominant exchange
b. Recognised exchange d. Un -recognised exchange

173. In India, currently method of calculation of stock indexes is

a. Free float market capitalisation
b. Full float market capitalisation
c. Fixed float market capitalisation
d. Minimum float market capitalisation

174. Fully automated screen based trading system in NSE is known as

a. BOLT c. BLISS
b. ALBM d. NEAT

175. The Chief promoter of National Securities Depository Limited (NSDL) is

a. NABARD c. NSCCL
b. BSE d. NSE

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176. The Chief promoter of Central Depository Services Limited CDSL) is
a. NABARD c. NSCCL
b. BSE d. NSE

177. ‐‐‐‐‐‐‐‐ is a financial intermediary who helps to mobilize and transfer capital from
those who possess it to those who need it
a. Lease finance c. hire purchase
b. Venture capital d. merchant banker

178. Merchant bankers are

a. Merchants c. Neither merchants nor banks
b. Bankers d. None of these

179. The dollar version of Index of BSE is

a. Defty c. Both the above
b. Dollex d. None

180. All type of activities which are of a financial nature are called
a. Financial market c. Primary market
b. Capital market d. financial services

181. In settlement T+2, ‘T’ stands for

a. Trade time c. Trade terms
b. Trade day d. Time for settlement

182. Find out odd one

a. Fund based services c. Modern services
b. Fee based services d. Purchase of raw materials

183. The process in which illiquid assets are converted into marketable securities is known as
a. Mutualisation c. Rematerialisation
b. Dematerialisation d. Securitisation

184. Asset based service also called

a. fee based c. fund based
b. interest based d. capital based

185. In security market, “ASBA” stands for

a. Application Supported by Blocked Amount
b. Automated Security Borrowing Arrangement
c. Active Securities Buying Agreement
d. Automatic Security Buying Assistance

186. In financial circle, the name “Dalal Street” is used synonyms to.........
a. BSE c. NSE
b. NASDAQ d. OTCEI

187. The name “Wall Street” is used to synonyms to..........

a. Bombay Stock Exchange c. National Stock Exchange
b. NASDAQ d. New York Stock Exchange

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188. Credit rating indicates -------- of a company
a. Financial status c. Management efficiency
b. Overall efficiency d. All the above

189. Credit rating is only a / an..............

a. Opinion c. Suggestion
b. Recommendation d. Advice

190. Which of the following is not a credit rating agency?

a. CRISIL c. DCR India
b. ICRA d. None of these

191. At present, how many Non-scheduled banks are functioning in India

a. 2 b. 5 c. 1 d. 0

192. Investment Information and Credit Rating Agency of India (IICRA) is a

a. Private company c. Govt. Company
b. Public company d. Statutory company

193 ----------variety of mutual fund is known as “Nest Eggs”

a. Balanced Funds c. Money Market Mutual fund
b. Fund of funds d. Growth oriented funds

194. Generally mutual funds are of

a. High risk c. Low risk
b. Risk free d. Any of the above

195. The corpus of funds and its duration is fixed in case of ------- fund
a. Open ended c. Close ended
b. Balanced d. Income fund

196. The market performance of mutual fund can be judged on the basis of
a. Net asset value or intrinsic value c. Regular / stable income
b. Capital appreciation d. Any of these

197 ……..is the regulator of mutual funds in India

a. RBI c. SEBI
b. IRDA d. Both SEBI and GOI

198 …..is the venture capital assistance at the stage where the project started to fetch profit
but not reached in its full efficiency
a. Start up capital c. Bridge capital
b. Mezzanine capital d. Seed capital

199. In---------- leasing, the risk of obsolescence is assumed by the lessee

a. Financial lease c. Both the above
b. Operating lease d. None the above

200 ------------is a tripartite lease arrangement

a. Financial lease c. Leverage lease
b. Operating lease d. Sale and lease back
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201. Which of the following is /are not regulatory institutions

a. RBI c. IRDA
b. SEBI d. IFCI

202. A merchant bank can claim a charge ------- % as the commission for the whole issue
a. 5% c. 0.5%
b. 2.5% d. 0.25%

203. UTI, LIC etc are examples of…….

a. Banking institution c. Investment institution
b. NBFI d. Development banks

204. Which of the following is /are example of Secondary or indirect financial instrument
a. Equity share c. Post office saving deposit
b. Preference shares d. Bond

205. Currency notes of rupee one and other lower subsidiary coins are issued by
a. RBI c. Ministry of Finance
b. Commercial banks d. Bank Note press

206. ….is basically a savings and investment corporation

a. UTI c. SBI
b. IDBI d. RBI

207 ------------is the process of converting security in electronic form into physical form
a. Rematerialisation c. Demutualisation
b. Dematerialisation d. Mutualisation

208. ----------- is dealing in securities done by those who having access to price sensitive
information.
a. Margin trading c. Price rigging
b. Insider trading d. Wash sales

209. --------- is a calculated move with an expectation to reap huge profit from market
fluctuations
a. Gambling c. Genuine investment
b. Speculation d. None of the above

210 Merchant bank is an organization that

a. Underwrites securities for corporations c. Involved in ownership of commercial ventures
b. Advice clients on mergers d. All of these

211 .Categories of securities issue:

a. Right issue c. Private placement
b. Public issue d. All of these

212. The scheme in which company can allot shares not more than 15% of the issue size, to
the public in addition to the shares already offered- is called
a. Right issue c. Green shoe option
b. ESOPs d. Bonus issue
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213. The merchant banker coordinating a public issue is called as
a. Syndicator c. Post issue manager
b. Lead manager d. None of these

214 ……is a shortened form of prospectus

a. Red herring prospectus
b. Abridged prospectus
c. Statement in lieu of prospectus
d. Shelf prospectus

215 ……is an offer document is used in public issue made under book building method.
a. Red herring prospectus c. Statement in lieu of prospectus
b. Abridged prospectus d. Shelf prospectus

216. In technical sense, short sellers (bears) will be “squeezed” through

a. Wash sales c. Rigging
b. Cornering d. Arbitrage

217 -----------is known as ‘Traffic in securities’

a. Wash sales c. Rigging
b. Cornering d. Arbitrage

218. A system of security trade in which one is allowed to invest in excess of his financial
capacity by borrowing funds
a. Margin trading c. Rigging
b. Cornering d. Arbitrage

219. Which of the following speculative transactions are unfair and prohibited?
a. Margin trading c. Rigging
b. Option deals d. Arbitrage
e.

220. Which of the following is not a prohibited act in security market?

a. Insider trading c. Cornering
b. Price rigging d. Margin trading

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ANSWER KEY
Q No Ans Q No Ans Q No Ans Q No Ans Q No Ans
1 C 37 C 73 B 109 A 145 B
2 B 38 C 74 D 110 B 146 A
3 B 39 D 75 A 111 A 147 B
4 C 40 B 76 A 112 B 148 D
5 A 41 D 77 B 113 C 149 D
6 A 42 B 78 B 114 A 150 C
7 D 43 B 79 C 115 D 151 C
8 C 44 B 80 A 116 D 152 A
9 C 45 B 81 B 117 A 153 C
10 A 46 B 82 B 118 B 154 C
11 D 47 C 83 D 119 D 155 D
12 C 48 A 84 B 120 B 156 B
13 C 49 D 85 C 121 B 157 B
14 C 50 B 86 D 122 B 158 B
15 C 51 B 87 B 123 D 159 C
16 A 52 A 88 C 124 C 160 B
17 B 53 C 89 D 125 A 161 C
18 B 54 A 90 C 126 A 162 A
19 A 55 B 91 B 127 B 163 A
20 A 56 B 92 C 128 A 164 C
21 B 57 A 93 C 129 C 165 C
22 A 58 B 94 C 130 A 166 A
23 B 59 B 95 A 131 B 167 B
24 D 60 D 96 C 132 B 168 C
25 A 61 C 97 D 133 A 169 C
26 B 62 B 98 C 134 A 170 D
27 D 63 B 99 D 135 B 171 D
28 A 64 A 100 A 136 C 172 A
29 B 65 C 101 A 137 A 173 A
30 C 66 B 102 C 138 B 174 D
31 C 67 B 103 D 139 D 175 D
32 B 68 A 104 B 140 B 176 B
33 B 69 B 105 C 141 C 177 B
34 C 70 A 106 B 142 C 178 C
35 A 71 C 107 D 143 B 179 B
36 A 72 B 108 C 144 A 180 D

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Q No Ans Q No Ans Q No Ans
181 B 196 D 211 D
182 D 197 D 212 C
183 D 198 B 213 B
184 D 199 A 214 B
185 A 200 C 215 A
186 A 201 D 216 B
187 D 202 C 217 D
188 A 203 D 218 A
189 A 204 C 219 C
190 D 205 C 220 D
191 D 206 A
192 B 207 A
193 B 208 B
194 C 209 B
195 C 210 D

Prepared by:
Dr P Siddeeque Melmuri
Assisant Professor
School of Distance Education
University of Calicut

©
Reserved

***************************************************************

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