Top 350+ Solved Financial Markets and Institutions MCQ Questions Answer

From 16 to 30 of 387

Q. Which of the following is a cash asset?

a. deposit created out of loans

b. share

c. bond

d. Post office certificate.

  • a. deposit created out of loans

Q. Govt. bond is a

a. short term security

b. long term security

c. medium term security

d. Either a or b.

  • b. long term security

Q. Money market deals with ..................... instruments.

a. long term

b. short term

c. medium term

d. all of these.

  • b. short term

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

a. call money market

b. money at short notice

c. T-bill market

d. G-sec market

  • a. call money market

Q. ..................... acts as an intermediary between Govt. and money market

a. RBI

b. SEBI

c. Commercial banks

d. All the above

  • a. RBI

Q. ................... are drawn by contractors on the Govt. departments for the goods supplied to them

a. treasury bills

b. supply bill

c. bill of lading

d. documentary bill

  • b. supply bill

Q. ..................... are an important instrument of short term borrowing by the Govt.

a. National saving certificate

b. Bonds

c. Treasury bill

d. Any of the above

  • c. Treasury bill

Q. ..................... is a market for bankers’ acceptances

a. discount market

b. CDs market

c. Interbank participation market

d. Acceptance market

  • d. Acceptance market

Q. Accommodation bills are also known as ..................... bills

a. kite bills

b. wind bills

c. supply bill

d. both a & b

  • d. both a & b

Q. Adhoc treasury bills are issued in favour of the ..................... only

a. Treasury

b. RBI

c. Commercial banks

d. State government

  • b. RBI

Q. Financial intermediaries

a. exist because there are substantial information and transaction costs in the economy.

b. improve the lot of the small saver.

c. are involved in the process of indirect finance.

d. do all of the above.

  • d. do all of the above.

Q. The main sources of financing for businesses, in order of importance,are

a. financial intermediaries, issuing bonds, issuing stocks.

b. issuing bonds, issuing stocks, financial intermediaries.

c. issuing stocks, issuing bonds, financial intermediaries.

d. issuing stocks, financial intermediaries, issuing bonds.

  • a. financial intermediaries, issuing bonds, issuing stocks.

Q. In primary markets, the first time issued shares to be publicly traded in stock markets is considered as

a. traded offering

b. public markets

c. issuance offering

d. initial public offering

  • d. initial public offering

Q. The transaction cost of trading of financial instruments in centralized market is classified as

a. flexible costs

b. low transaction costs

c. high transaction costs

d. constant costs

  • b. low transaction costs
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