Merchant Banking & Financial Service (306 Fin)

20 Questions | Total Attempts: 47

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Merchant Banking & Financial Service (306 Fin)

By Dr Tanaji V Chavan


Questions and Answers
  • 1. 
    A market for relatively long-term (greater than one year original maturity) financial instruments (e.g., bonds and stocks) is known as the __________ market.
    • A. 

      Secondary

    • B. 

      Primary

    • C. 

      Tertiary

    • D. 

      Capital

  • 2. 
    Which of the following is a short-term option to buy a certain number of securities from the issuing corporation
    • A. 

      Right

    • B. 

      Red herring

    • C. 

      Initial public offering

    • D. 

      Letter stock

  • 3. 
    A temporary combination of investment banking firms formed to sell a new security issue, can be referred to as a (an) __________.
    • A. 

      Underwriting syndicate

    • B. 

      Red herring

    • C. 

      Registration statement

    • D. 

      Standby arrangement

  • 4. 
    Which of the following is privately placed common stock that cannot be immediately resold?
    • A. 

      Letter stock

    • B. 

      Red herring

    • C. 

      Initial public offering

    • D. 

      Right

  • 5. 
    The preliminary prospectus, which has a statement on its cover that the registration statement has not yet become effective, is referred to as a (an) __________.
    • A. 

      Red herring

    • B. 

      Registration statement

    • C. 

      Underwriting syndicate

    • D. 

      Standby arrangement

  • 6. 
    What is CRR?
    • A. 

      Cash Reserve Ratio

    • B. 

      Current Ratio Rate

    • C. 

      Credit Rating Record.

    • D. 

      Cash Review Report

  • 7. 
    Interest rates being charged by Banks in India has shown trend in recent years
    • A. 

      Falling

    • B. 

      Rising

    • C. 

      Stable

    • D. 

      Volatile

  • 8. 
    Gilt edged securities refer to
    • A. 

      Securities issued by first class companies

    • B. 

      Government Securities

    • C. 

      Securities issued by municipal corporations

    • D. 

      Securities issued by NBFCs.

  • 9. 
    Which of these is not a credit rating agency?
    • A. 

      Price water house

    • B. 

      Moody

    • C. 

      Standard & Poors

    • D. 

      ICRA

  • 10. 
    NABARD refinance for financing Self Help Groups is to the extent of
    • A. 

      75%

    • B. 

      25%

    • C. 

      50%

    • D. 

      100%

  • 11. 
    Full form of SLR is 
    • A. 

      Statutory Liquidity Ratio

    • B. 

      State Level Recovery

    • C. 

      Sundry Leverage Ratio

    • D. 

      State Liquidity Reserve

  • 12. 
    C. R. A. In banking parlance stands for
    • A. 

      Credit Risk Assessment

    • B. 

      Credit Rating Association

    • C. 

      Credit Rating Agency

    • D. 

      None of these

  • 13. 
    The full form of RBS is
    • A. 

      Risk Based Supervision

    • B. 

      Rating by System

    • C. 

      Role Based Supervision

    • D. 

      Rating Bank Security

  • 14. 
    What should be the method of valuation for advances against shares/debenutres/ bonds? you like?
    • A. 

      Market price

    • B. 

      Face value

    • C. 

      Book Value

    • D. 

      Average Value

  • 15. 
    Plastic Cards implanted with computer chip to the data is known as
    • A. 

      Smart Card

    • B. 

      SME Card

    • C. 

      Credit Card

    • D. 

      ATM Card

  • 16. 
    The VSAT communication network for banks and financial institutions launched by RBI is known as
    • A. 

      INEINET

    • B. 

      SWIFT

    • C. 

      SBI NET

    • D. 

      BANK NET

  • 17. 
    _____________is not a major cause of systematic (undiversified)risk 
    • A. 

      Company management change

    • B. 

      World energy supply

    • C. 

      A worldwide recession

    • D. 

      A world war

  • 18. 
    _______________is/are not a major cause of unsystematic risk
    • A. 

      Worldwide inflation

    • B. 

      Wildcat strikes

    • C. 

      New competitors

    • D. 

      New product management

  • 19. 
    A portfolio that incurs the smallest risk for a given level of return is called
    • A. 

      The efficient portfolio

    • B. 

      The market portfolio

    • C. 

      The efficient frontier

    • D. 

      The optimal portfolio

  • 20. 
    According to a study by Levy and Lerman, an investment in U. S. Bonds compared to internationally diversified bond portfolios is _________
    • A. 

      Less efficient

    • B. 

      More efficient

    • C. 

      About the same

    • D. 

      Relatively efficient

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