Test your Knowledge about Investment Market, options and basics of Investment Banking
Ques. Which of the following is NOT a part of India’s Money Market?
(a) Bill Markets
(b) Call Money Market
(c) Gold Council
(d) Mutual Funds
Ques. ‘Stock Exchanges’ play a role in an economy which may be termed as __
(a) hardly useful
(b) useful but need strict regulation
(c) harmful to proper capital markets
(d) a gambling-where many investors get ruined a very Important segment to regulate inflation
Ques. Which of the following cannot be called a Debt Instrument as referred in financial transactions?
(a) Certificate of Deposits
(d) Commercial Papers
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Ques. Market information means
(a) Knowledge of companies
(b) Cross- country information
(c) Knowledge of related markets
(d) Selling to existing customers
Ques. What is ‘Misselling’ of Mutual Funds?
1. Misselling takes place when mutual funds are sold without telling the likely returns.
2. When agents sell the products without telling investors what are the risks involved in investing in mutual funds.
3. When agents invest somebody’s money in mutual funds without their knowledge, it is called mis-selling.
(a) Only 1
(b) Only 2
(c) Only 3
(d) All 1, 2 and 3
Question: In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as
(a) Insider trading
(b) Future trading
(c) Foreign trading
(d) Stock trading
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Ques. MCX is the index of which of the following stock exchanges?
(a) Hong Kong Stock Exchange
(b) Bombay Stock Exchange
(c) Crypto Exchange
(d) Multi Commodity Stock Exchange
Question: Which of the following types of accounts are known as ‘Demat Accounts’ ?
(a) Accounts which are Zero Balance Accounts.
(b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there.
(c) Accounts in which shares of various companies are traded in electronic form.
(d) Accounts which are operated through internet banking facility.
Question: Systematic Investment Plans (SIPs) are an investment option also operated in the mode of .
(a) Mutual Funds
(b) Small Savings Schemes in Post Office
(c) National Pension Fund
(d) National Saving Certificates
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Ques. What is the name of the system whereby a number of persons subscribe to an invested fund which becomes the property of the last survivor?
(a) Mutual fund
Question: Which of the following is the correct description of the Capital Market ? Capital Market comprises of—
(a) Stock Markets and Bond Markets
(b) Banks and Insurance Companies
(c) RBI and Nationalized Banks
(d) Stock Markets and Banks
(e) None of these
Question: Which of the following is not considered a money market instrument ?
(a) Treasury Bills
(b) Repurchase Agreement
(c) Commercial Paper
(d) Shares and Bonds
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Ques. Which of the following is not a criterion to select the Investment Bankers ?
(a) No professional memberships or incorporations are required
(b) General reputation in the market
(c) Good rapport with market intermediaries.
(d) Distribution network of the organisation
(e) None of these
Ques. The Indian Money market is the market in which funds are borrowed and lent
(a) Medium term
(d) All of these
Ques. The process of the total valuation of the financial assets of a company is technically known as
(a) Market capitalization
(b) Gross Domestic Product
(c) Net wealth of the country
(d) Gross Domestic Resources
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Question: The real return to the investor sometimes gets reduced due to sudden rise in the prices of the commodities. This phenomenon in financial market is known as ____
(a) Market risk
(b) Inflation risk
(c) Credit risk
(d) Diversification of funds
Question: What is the full form of FII?
(a) Final Investment in India
(b) Foreign Investment in India
(c) Formal Investment in India
(d) Foreign Institutional Investment
Question: Which of the following is the correct definition of “Hot Money” ?
1. This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence brings higher returns.
2. This is the fund which is provided by a bank in US $ at very short notice and at a very high rate of interest and for a longer period of repayment.
3. This is the fund which is pushed into market through Hawala or some other such illegal methods and sometimes referred also as Black Money.
(a) Only 1 is correct
(b) Both 1 and 2 are correct
(c) Only 3 is correct
(d) Both 1 and 3 are true
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Ques. The oldest Stock Exchange of Asia is
(a) Bombay Stock Exchange
(b) Calcutta Stock Exchange
(c) Tokyo Stock Exchange
(d) Dhaka Stock Exchange