Fundamentals of Investment MCQs [set-3]
51. Which of the following was set up mainly for providing finance to private
sector?
A. IDBI
B. IFCI
C. ICICI
D. all of these
Answer: C
52. NABARD was set up in the year
A. 1991
B. 1881
o m
C. 1982
. c
D. 1972 te
Answer: C a
q M
c
53. An example of a derivative security is ______.
M
A. a common share of General Motors
B. a call option on Mobil stock
C. a commodity futures contract
D. B and C
Answer: D
54. Interest rate in the money market funds are
A. Determined by the RBI
B. determined by the SBI
C. Determined by the market forces
D. none of these
Answer: C
55. Money market include
A. Only organized players
B. only unorganized players
C. both organized and unorganized players
Answer: C
56. Income – Expenses = -------------.
A. Savings
B. investment
C. money
D. none of these
Answer: A
57. ------------- is postponement of current consumption
A. money
B. savings
C. investments
D. all of these
Answer: B
58. -------------.means a number of securities/assets put together.
A. Investment
B. portfolio
C. savings
D. none of these
Answer: B
59. SEC is a regulator of -------------. a) India b) Britain c) USA d) none of these 65.
Fixed deposits mobilized by NBFCs are regulated by -------------.
A. SEBI
B. RBI
C. IRDA
D. Finance Ministry
Answer: C
60. Debenture trading is ------------- in India.
A. popular
B. not popular
C. prohibited
D. none of these
Answer: B
Download more sets at McqMate.com
61. Debt instruments which have a maturity of less than one year called -------------.
A. Secondary market instruments
B. money market instruments
C. capital market instruments
D. none of these
Answer: B
62. ------------- is a vehicle to get entry into the asset classes.
A. Capital market
B. Mutual fund
C. Debt market
D. all of these
Answer: B
63. -------------- creates high risk and is illegal.
A. Speculation
B. Gambling
C. Investment
D. all of these
Answer: B
64. The pivotal position in the Indian money market is adorned by
A. Commercial bank
B. non banking financial companies
C. RBI
D. none of these
Answer: C
65. The rate at which RBI lends short term funds to bank is
A. Reverse repo rate
B. repo rate
C. interest rate
D. none of these
Answer: B
66. The proportion of deposits that banks have to keep with RBI is
A. CRR
Download more sets at McqMate.com
B. SLR
C. PLR
D. none of these
Answer: A
67. for issuing commercial papers
A. Prior approval of RBI is not required
B. Prior approval of RBI is required
C. Prior approval of SEBI is required
D. None of these
Answer: A
68. For issuing commercial papers,
A. Credit rating is a must
B. credit rating is optional
C. underwriting is a must
D. None of these
Answer: A
69. Money market instruments have a maturity of
A. Less than one year
B. Less than six months
C. More than one year
D. None of these
Answer: A
70. Debt market instruments have a maturity of
A. Less than one year
B. Less than six months
C. More than one year
D. None of these
Answer: C
71. Irredeemable bond is also known as
A. Fully convertible bond
B. Perpetual bond
C. Partially convertible bond
Download more sets at McqMate.com
D. None of these
Answer: B
72. Floating rate bonds carry
A. Fixed rate of interest
B. Varying rate of interest
C. Zero rate of interest
D. None of these
Answer: B
73. Zero coupon bonds mean
A. Fixed rate of interest
B. Zero rate of interest
C. Higher rate of interest
D. None of these
Answer: B
74. Callable bonds mean
A. Subscriber has the right to demand money before the time
B. Issue has the right to redeem before the time
C. Investor can request for redemption any time
D. None of these
Answer: B
75. If the credit quality of the issuer deteriorates, market expects
A. Lesser rate of interest
B. Higher rate of interest
C. Zero rate of interest
D. None of these
Answer: B
Download more sets at McqMate.com
