MCQOPTIONS
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MCQOPTIONS
This section includes 749 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 301. |
It serves as an intermediary between the investor and the depository who is authorised tomaintain the accounts of dematerialised shares. |
| A. | Depository Participant |
| B. | Depository |
| C. | Stock exchange |
| D. | None of the above |
| Answer» B. Depository | |
| 302. |
According to Keynes, Interest is purely a ‘monetary phenomenon’. |
| A. | Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» D. JB Clark | |
| 303. |
Financial instruments are used |
| A. | as a unit of account, as a store of value, and as a means of payment. |
| B. | as a unit of account, as a means of payment, and to transfer risk. |
| C. | as a store of value, as a means of payment, and to transfer risk. |
| D. | as a unit of account, as a store of value, and to transfer risk. |
| Answer» D. as a unit of account, as a store of value, and to transfer risk. | |
| 304. |
SEBI has relaxed investment rules for which funds? |
| A. | Angel Funds |
| B. | Mutual Funds |
| C. | Debt Funds |
| D. | None of the above |
| Answer» B. Mutual Funds | |
| 305. |
In what city are the two largest commodities exchanges? |
| A. | Chicago |
| B. | New York |
| C. | Kansas City |
| D. | Minneapolis |
| Answer» B. New York | |
| 306. |
Which one of the following is /are not function of NIM |
| A. | Origination |
| B. | Underwriting |
| C. | Distribution |
| D. | Listing |
| Answer» E. | |
| 307. |
..................... has been set up mainly to provide a secondary market in Govt. Securities |
| A. | DHFI |
| B. | OTCEI |
| C. | STCI |
| D. | NSDL |
| Answer» D. NSDL | |
| 308. |
Stocks or shares that are sold to investors without transacting through financial institutions are classified as |
| A. | direct transfer |
| B. | indirect transfer |
| C. | global transfer |
| D. | pension transfer |
| Answer» B. indirect transfer | |
| 309. |
BOLT was introduced by BSE in the year |
| A. | 1990 |
| B. | 1995 |
| C. | 1992 |
| D. | 1999 |
| Answer» C. 1992 | |
| 310. |
Which of the following types of assets represents ownership interest in a corporation? |
| A. | Bonds |
| B. | Stocks. |
| C. | Futures. |
| D. | Options. |
| Answer» C. Futures. | |
| 311. |
The present value of a coupon bond is: |
| A. | the present value of the coupon payments plus the future value of the principle payment. |
| B. | the sum of the coupon payments and the principle payment. |
| C. | the sum of the coupon payments. |
| D. | the present value of the coupon payments and the present value of the principle payment. |
| Answer» E. | |
| 312. |
Benefits of the merger between the NYSE and Paris-based Euronext, a pan European stock exchange include: |
| A. | lower costs and speedier transactions for international financial markets. |
| B. | foreign ownership of domestic assets. |
| C. | international consolidation of financial services. |
| D. | greater the uncertainty. |
| Answer» B. foreign ownership of domestic assets. | |
| 313. |
Which of the following is not an advantage of investing in bonds? |
| A. | Bonds have unlimited profit potential. |
| B. | Bond investments are relatively safe from large losses. |
| C. | Bonds are good sources of current income. |
| D. | Bondholders receive their payments before shareholders can be compensated. |
| Answer» B. Bond investments are relatively safe from large losses. | |
| 314. |
Merchant banks concept in India introduced by |
| A. | SBI |
| B. | PNB |
| C. | ANZ Grindlays |
| D. | City bank |
| Answer» D. City bank | |
| 315. |
Which of the following statements is not true with regard to Call money? |
| A. | It is short-term finance repayable on demand. |
| B. | Its maturity period ranges from one day to fifteen days. |
| C. | There is a direct relationship between call rates and other short-term money market instruments. |
| D. | It is used for inter-bank transactions. |
| Answer» D. It is used for inter-bank transactions. | |
| 316. |
Which of the following statements is/are correct? 1. NBFCs does not hold a banking license. 2. NBFC can issue Demand Drafts like banks. |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both |
| D. | None |
| Answer» B. Only 2 | |
| 317. |
The Time- Preference Theory of Interest was expounded by----------- |
| A. | John Rae |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» B. Alfred Marshall | |
| 318. |
When the borrower engages in activities that make it less likely that the loan will be repaid, is said to exist. |
| A. | asymmetric information |
| B. | adverse selection |
| C. | moral hazard |
| D. | fraud |
| Answer» D. fraud | |
| 319. |
Which of the following can be the underlying for a commodity derivative contract? |
| A. | Interest Rate |
| B. | Euro-Indian Rupee |
| C. | Gold |
| D. | NIFTY |
| Answer» D. NIFTY | |
| 320. |
In financial market, QIPs Stands for |
| A. | Quality investment Project |
| B. | Qualified investment Plan |
| C. | Qualified Institutional Placement |
| D. | Qualitative Investment Premium |
| Answer» D. Qualitative Investment Premium | |
| 321. |
Which of the following is a contractual savings institution? |
| A. | A life insurance company |
| B. | A credit union |
| C. | A savings and loan association |
| D. | A mutual fund |
| Answer» B. A credit union | |
| 322. |
Which one of the following is a regarded as classic venture capital? |
| A. | MBO finance |
| B. | Early stage |
| C. | Institutional |
| D. | Corporate |
| Answer» C. Institutional | |
| 323. |
The agreement which incurs the transaction between two parties and promise held that secondparty will sell security at specific maturity is classified as |
| A. | repurchasing commercial notes |
| B. | repurchase bills |
| C. | purchase agreement |
| D. | reverse repurchase agreement |
| Answer» E. | |
| 324. |
An asset with a physical value is called |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Fixed asset |
| Answer» C. Fictitious asset | |
| 325. |
Management Development Institute (MDI) was set up by ........................ |
| A. | IDBI |
| B. | ICICI |
| C. | IFCI |
| D. | SEBI |
| Answer» D. SEBI | |
| 326. |
---------- is also known as ‘Industrial Paper” |
| A. | Treasury bills |
| B. | Commercial bills |
| C. | Financial accommodation bills |
| D. | Commercial paper |
| Answer» E. | |
| 327. |
The oldest Commodity market in India is--------- |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» B. MCX | |
| 328. |
An asset which derives its value because of a contractual claim is |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Fixed asset |
| Answer» B. Non financial asset | |
| 329. |
A large number (about 25%) of long-term mutual funds are _____________ funds, buying securities in proportions similar to those of a major stock index. |
| A. | small cap |
| B. | large cap |
| C. | fixed income |
| D. | index |
| Answer» E. | |
| 330. |
The number of shares which are less than market lots are called |
| A. | Grey lot |
| B. | Odd lot |
| C. | Tag lot |
| D. | Tied lot |
| Answer» C. Tag lot | |
| 331. |
Under this method of floatation in primary market, a subscription is invited from generalpublic to invest in the securities of a company through the issue of advertisement. |
| A. | Private placement |
| B. | Offer through prospectus |
| C. | Offer for sale |
| D. | All of the above |
| Answer» C. Offer for sale | |
| 332. |
Aloan: |
| A. | is an asset for both the lender and the borrower. |
| B. | is an asset for the lender and a liability for the borrower. |
| C. | is a liability for the lender and an asset for the borrower |
| D. | is a liability for both the lender and the borrower. |
| Answer» C. is a liability for the lender and an asset for the borrower | |
| 333. |
The value of assets held by commercial banks in 2001 was $6.7 trillion dollars, making commercial banks the |
| A. | second most important sector of financial intermediaries after mutual funds. |
| B. | second most important sector of financial intermediaries after lifeinsurance companies. |
| C. | second most important sector of financial intermediaries after privatepension funds. |
| D. | largest sector of financial intermediaries. |
| Answer» E. | |
| 334. |
World bank is also known as........................ |
| A. | IMF |
| B. | ADB |
| C. | IBRD |
| D. | UNICEF |
| Answer» D. UNICEF | |
| 335. |
Retail banking means granting loans for: |
| A. | Construction of houses |
| B. | Purchases of consumer durables |
| C. | Educational purposes |
| D. | All of these |
| Answer» E. | |
| 336. |
According to ------- theory interest arises on account of the productivity of capital. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | Classical theory |
| Answer» C. Abstinence theory | |
| 337. |
ADR Stands for: |
| A. | Asset Depository Receipt |
| B. | Asian Depository Receipt |
| C. | American Depository Receipt |
| D. | Adjustable Depository Receipt |
| Answer» D. Adjustable Depository Receipt | |
| 338. |
..................... acts as an intermediary between Govt. and money market |
| A. | RBI |
| B. | SEBI |
| C. | Commercial banks |
| D. | All the above |
| Answer» B. SEBI | |
| 339. |
Zero interest bonds are always issued |
| A. | At premium |
| B. | At discount |
| C. | With detachable warrant |
| D. | Any of the above |
| Answer» C. With detachable warrant | |
| 340. |
The source of venture capital funding has |
| A. | shifted from wealthy individuals to pension funds and corporations. |
| B. | shifted from pension funds and corporations to wealthy individuals. |
| C. | decreased since 1990. |
| D. | none of the above. |
| Answer» B. shifted from pension funds and corporations to wealthy individuals. | |
| 341. |
Who has been appointed the new SEBI chief w.e.f March 1, 2017? |
| A. | UK Sinha |
| B. | Ajay Tyagi |
| C. | Brijesh Mishra |
| D. | None of the above |
| Answer» C. Brijesh Mishra | |
| 342. |
................known as Brettonwood twins |
| A. | IDBI and IFCI |
| B. | IDBI and UTI |
| C. | IBRD and IMF |
| D. | RBI and SEBI |
| Answer» D. RBI and SEBI | |
| 343. |
Which of the following provides income that is fully exempt from taxation for the individualinvestor? |
| A. | Municipal bonds. |
| B. | Preferred stocks. |
| C. | Treasury notes. |
| D. | Treasury bills. |
| Answer» B. Preferred stocks. | |
| 344. |
---------------holds 86% market share of commodity exchange in India |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» C. ICEX | |
| 345. |
In --------------- Securities share bond debentures are offered to the public for subscription for raising capital or fund. |
| A. | Prime Securities |
| B. | Public Securities |
| C. | Preferred Securities |
| D. | Primary Securities |
| Answer» B. Public Securities | |
| 346. |
_________ is a market for lending & borrowing of short term funds. |
| A. | Money market |
| B. | Primary market |
| C. | Capital market |
| D. | All of the above |
| Answer» B. Primary market | |
| 347. |
Which of the following is an advantage to investors of an open-end mutual fund? |
| A. | Once all the shares have been sold, the investor does not have to put in more money. |
| B. | The investors can sell their shares in the over-the-counter market with low transaction fees. |
| C. | The fund agrees to redeem shares at any time. |
| D. | The market value of the fund’s shares may be higher than the value of the assets held by the fund. |
| Answer» D. The market value of the fund’s shares may be higher than the value of the assets held by the fund. | |
| 348. |
SEBI has proposed a set of changes to relax rules and rename the institutional trading platform as what? |
| A. | High Tech Start Up & Other New Business Platform |
| B. | High Tech Incubation & Other New Business Platform |
| C. | High Tech Innovation % Other New Business Platform |
| D. | None of the above |
| Answer» B. High Tech Incubation & Other New Business Platform | |
| 349. |
-------------is a whole sale market for short term debt instrument. |
| A. | capital market |
| B. | forex market |
| C. | money market |
| D. | any of the above |
| Answer» D. any of the above | |
| 350. |
Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets? |
| A. | Clearing Members |
| B. | Brokers |
| C. | NBFCs |
| D. | Only a and b |
| Answer» E. | |