Financial Markets Model Paper (1)

Model Question Paper
Course: Financial Markets
1. What is spending more than what one earns is?

a. Dissaving
b. Investment
c. Savings
d. Speculation
2. Which is not a feature of Investing?

a. Analysis
b. Discipline
c. Diversification
d. Speculating
3. What is the parameter on which the level of return is directly proportional??

a. Risk
b. Margin of safety
c. Export
d. Government Spending
4. Which agency is responsible for formulating the Fiscal Policy in India?

a. RBI
b. SEBI
c. IRDS
d. Finance Ministry, GOI
5. What funds does financial market provide?

a. GILT funds
b. Social security funds
c. Short term and long term funds
d. Unemployment benefit
6. Which market is designed to provide access to short term funds?

a. Money market
b. Capital Market
c. Stock market
d. Bank Market
7. Which market equity shares are actively available for continuous buying and selling?
a. Money market
b. Capital Market
c. Stock market
d. Debt Market
8. What Is the meaning of Capital Market?

a. Market in which securities are bought and sold
b. A financial market in which debt or equity-backed securities are bought
and sold
c. Entrepreneurs in one country copy an existing market.
d. A market structure is defined by a large number of small firms competing
against each other.
9. Bonds which are not guaranteed by any collaterals are called as?
a. Secured Bond
b. Unsecured Bond
c. Zero Coupon Bond
d. Deep Discount Bond
10. Which of the following reasons is not responsible for the ups and downs in the stock
market?
a. Rain
b. Monetary policy
c. Political instability
d. Inflation
11. What is BSE 500?

a. Crop
b. Mobile
c. Stock Index
d. Bus
12. Which from the given options is issued by the government on short term basis?
a. T Bills
b. Promissory Notes
c. Bills of exchange
d. Shares
13. 91-day Treasury Bills Face Value is Rs. 100, current market price is Rs. 99. What is
the yield for the T- Bills?
a. 5.05%
b. 4.05%
c. 3.00%
d. 2.00%
14. Who among the following is a formal lender in the financial system?
a. Friend
b. Relatives
c. Employers
d. Financial Institutions
15. What is considered as the safest bond available in market?

a. Housing loan Backed Bonds
b. Debentures
c. Income Bonds
d. Subordinated Bonds
16. What is the payment by the issuer of a Bond called?

a. Coupon
b. Par
c. Discount
d. Premium
17. What is the rate at which the Central Bank lends funds to Commercial banks called
as?
a. Reverse Repo
b. Repo Rate
c. CRR
d. SLR
18. What is the use of monetary policy?

a. Financial Market stability
b. Stock Market stability
c. Economic Growth
d. Price Stability
19. Which parameter does not affect the debt instrument?

a. Inflation
b. Interest rates
c. Credit worthiness of the issuer
d. Credit worthiness of the subscribers
20. What is a corporate money market instrument?

a. T Bills
b. Promissory Notes
c. Bills of exchange
d. Shares
21. What is meant by a convertible debenture?

a. Accumulated interest payable is converted into stocks
b. Interest is not paid when company is in loss
c. Interest is payable when in loss
d. Debentures can be converted into Equity shares at Maturity
22. What is a convertible instrument?

a. Accumulated interest payable is converted into stocks
b. Interest is not paid when company is in loss
c. Interest is payable when in loss
d. Instruments that can be converted into Equity Shares upon Maturity
23. What is risk of debenture?

a. No collateral
b. Collateral
c. Secured
d. Discount
24. Who regulates the current account of Banks?

a. Ministry of Finance
b. RBI
c. SBI
d. World Bank
25. Which type of risk determines the credit worthiness of the issuer?
a. Credit Risk
b. Liquidity Risk
c. Reinvestment Risk
d. Inflation Risk
26. What among the following is NOT Credit Rating Grade?

a. YYY
b. AAA
c. BB
d. BBB
27. How many credit rating agencies are there in india ?

a. 7
b. 5
c. 6
d. 8
28. What is irrelevant factor that affect the Financial Market?

a. Inflation
b. GDP
c. Unemployment
d. Trade Deficit
29. When was SEBI created?

a. 1986
b. 1988
c. 1972
d. 2002
30. Who are the main participants involved in an IPO process

a. Stockbrokers and bondholders
b. Venture capitalists and angel investors.
c. Founders and employees
d. Underwriters, issuers, and investors

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Model Question Paper

Course: Financial Markets

1. What is spending more than what one earns is?

2. Which is not a feature of Investing?

3. What is the parameter on which the level of return is directly proportional??

4. Which agency is responsible for formulating the Fiscal Policy in India?

5. What funds does financial market provide?

6. Which market is designed to provide access to short term funds?

8. What Is the meaning of Capital Market?

11. What is BSE 500?

15. What is considered as the safest bond available in market?

16. What is the payment by the issuer of a Bond called?

18. What is the use of monetary policy?

19. Which parameter does not affect the debt instrument?

20. What is a corporate money market instrument?

21. What is meant by a convertible debenture?

22. What is a convertible instrument?

23. What is risk of debenture?

24. Who regulates the current account of Banks?

26. What among the following is NOT Credit Rating Grade?

27. How many credit rating agencies are there in india ?

28. What is irrelevant factor that affect the Financial Market?

29. When was SEBI created?

30. Who are the main participants involved in an IPO process

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