CBSE Questions for Class 12 Commerce Business Studies Financial Market Quiz 3 - MCQExams.com

What type of instruments are traded in a Money Market?
  • Treasury bills
  • Commercial bills
  • Call money
  • All of these
At present only two depositories are registered with SEBI _____.
  • NSDL and HDFC
  • NSDL and CDSL
  • NSDL and ABSL
  • NEFT and TDS
The net liquidation value of a firm is the best indicator of its financial health. This is the proposal of ____________.
  • Beaver model
  • L C Gupta model
  • Wilcox model
  • Altman's Z score model
  • None of the above
Which of the following is a method of floatation?
  • Offer for sale
  • Offer through prospectus
  • Private Placement
  • All of these
What is the meaning of right issue?
  • Company offers new shares to its existing shareholders
  • Securities are not issued to existing shareholders at all
  • Company sells the securities to some selected institutions
  • None of these
Under Private Placement Company sells securities to some selected institutions. From the following identify such institution.
  • LIC
  • GIC
  • UTI
  • All of these
What is meant by Demat Account?
  • Demand Depository Account
  • Depository Participant Account
  • Development Market Account
  • Dematerialisation of of Securities
Deep financial market is ________________________.
  • The market which attracts funds in large volume
  • The market that attracts funds from all types of investors.
  • The underdevelopment market due to government regulations
  • The market that provides opportunities for sufficient orders at suitable interest rates below and above the market price.
  • The market that has easy effective interlinkages between its various parts and sub-parts.
Only institutional investors can participate in __________.
  • Foreign market
  • Loan market
  • Capital market
  • Money market
A capital market is ideal when:
  • Financial institutions are sufficiently developed
  • Capital is most productively allocated
  • Finance is available at reasonable cost
  • All of these
Money market deals in _____________________.
  • Short term Securities
  • Medium term securities
  • Long term Securities
  • None of these
The long-term investment of a firm involves __________________.
  • Irreversible investments
  • Investments which benefit the firm for number of years
  • All of the above
  • None of the above
The factors responsible for integration of financial markets are ___________________.
  • Increased cross penetration of foreign ownership.
  • Liberalization of regulations governing the financial markets
  • The development of new financial instruments
  • All of the above
  • Both (A) and (C) above
Giving excess protection to domestic markets, which have high entry barriers for foreign firms, over valuation of exchange indicates the adoption of _________ by the country?
  • Inward oriented strategy
  • Inflation control
  • Liberalization
  • Outwards oriented strategy
  • Export promotion strategy
The strategy of laying stress on domestic production which is usually adopted by developing countries is called as ________________.
  • Open economy strategy
  • Growth oriented strategy
  • Inward oriented strategy
  • Export substitution strategy
  • None of the above
The intermediary between the customers and suppliers who perform financing and debt collection services is called a ________.
  • Bank
  • Factor
  • Mutual fund
  • NBFC
  • Merchant Banker
An industrial company which has at the end of any financial year accumulated losses greater than its net worth is said to be _______________.
  • Bankrupt
  • Sick
  • Weak
  • Both (A) and (C) above
  • None of the above
Deregulation and globalization of the financial markets increase the volatility in ___________.
  • Internal rates
  • Exchange rates
  • Prices of financial assets
  • All of the above
  • Both (A) and (B) above
The statistical technique used by Altman to distinguish between a bankrupt and a non bankrupt firm is ______________.
  • Multiple Discriminant Analysis
  • Correlation
  • Joint Probability
  • Multiple Regression Analysis
  • Both (B) and (D) above
The settlement cycle in NSE is?
  • $$T+5$$
  • $$T+3$$
  • $$T+2$$
  • $$T+1$$
Investors are expected to open ____ with Depository Participants and deposit their share certificates for the purpose of converting them to the electronic format.
  • Remat Accounts
  • Demat Accounts
  • Deposit Accounts
  • Current Accounts
_________ is the process by which electronic shares of an investor are converted to physical certificates in the investor's account.
  • Rematerialization
  • Dematerialization
  • Materialization
  • None of above
Which of the following is not an objective of SEBI?
  • To protect the rights and interests of investors, particularly individual investors and to guide and educate them.
  • To regulate stock exchanges and the securities industry to promote their orderly functioning.
  • Establishing a nationwide trading facility for all types of securities.
  • To prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
Money market mutual funds ________.
  • enable individuals and small businesses to invest indirectly in money-market instruments
  • are available only to high net-worth individuals
  • are used in acquiring and placing mortgages
  • are mostly tradable on stock exchange
Which of the following is example of consumer's co-operative society?
  • Haryana handloom
  • Gujarat co-operative milk marketing federation
  • Apna bazar
  • Urban Cooperative banks
The money market is a market for __________ funds which deals in monetary assets whose period of maturity is upto one year.
  • short-term
  • long-term
  • medium-term
  • nano-term
A _________ is basically an instrument of short-term borrowing by the Government of India maturing in less than one year.
  • call money
  • treasury bill
  • commercial paper
  • certificate of deposit
Delhi is often described as a 'cosmopolitan' city. This means that it ____________
  • is the principal city
  • is a city of great wealth
  • is a city with a global reputation
  • is a city with an ethnically diverse population
A __________ is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
  • money market
  • treasury bill
  • certificate of deposit
  • commercial bill
Which of the following is/are a method of flotation in the primary market?
  • Offer through prospectus
  • Offer for sale
  • Private placement
  • All of the above
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