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- 1. Multiple Choice
What type of instruments are traded in a Money Market?
Call money
Treasury bills
Commercial bills
All of the above
- 2. Multiple Choice
The expected rate of return of the money market is ______
Very high
Less
Zero
None of the above
- 3. Multiple Choice
A treasury bill is an instrument of:
Dividend
Short term debt
Long term debt Interest
- 4. Multiple Choice
Treasury bills are also known as:
Fixed interest Bonds
Flat Rate Bonds
Low-Interest Bonds
Zero-Coupon Bonds
- 5. Multiple Choice
A commercial bill is used to _____________
Finance the working capital requirements
Meet the short term debt
Meet the long term debt
Pay the interest
- 6. Multiple Choice
When a trade bill is accepted by a commercial bank, it is known as a _____
Commercial Bill
Call money
None of these
Certificate of deposit
- 7. Multiple Choice
A capital market is ideal when:
Financial institutions are sufficiently developed
Finance is available at a reasonable cost
Capital is most productively allocated
All of these
- 8. Multiple Choice
Money market deals in _____________________
Medium-term securities
Short term Securities
Long term Securities
None of these
- 9. Multiple Choice
Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
Offer through prospectus
Offer for sale
Rights issue
Private placement
- 10. Multiple Choice
On this day, the exchange will deliver the share or make payment to the other broker
Pay-in day
Pay-out day
Transaction day
None of the above
- 11. Multiple Choice
It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.
PAN number
Unique Order Code
Contract Note
None of the above
- 12. Multiple Choice
The process of holding shares in electronic form is known as
Demutualisation
Dematerialisation
Speculation
None of the above
- 13. Multiple Choice
PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
Private placement
Offer through prospectus
Offer for sale
Rights issue
- 14. Multiple Choice
Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.
Private placement
Offer through prospectus
Offer for sale
All of the above
- 15. Multiple Choice
A company can raise capital through the primary market in the form of
Equity shares
Preference shares
Debentures
All of the above
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