Financial Services(Indian Finance System ) Questions and Answers

Question 1. ————— includes all activities involved in the transformation of savings into investment.
  1.    Financial system
  2.    Financial service
  3.    Economic system
  4.    Saving system
Explanation:-
Answer: Option B. -> Financial service


Question 2. Underwriting of shares by a financial intermediary is a kind of ————— activity.
  1.    Fee based
  2.    Fund based
  3.    Both of these
  4.    None of these
Explanation:-
Answer: Option B. -> Fund based


Question 3. ————— services are mainly provided to foreign investors.
  1.    Custodial services
  2.    Financial services
  3.    Factoring services
  4.    None of these
Explanation:-
Answer: Option A. -> Custodial services


Question 4. Term lending institutions are ————— market intermediaries.
  1.    Money market
  2.    Bill market
  3.    Capital market
  4.    None of these
Explanation:-
Answer: Option C. -> Capital market


Question 5. The minimum net worth for the first category of merchant banker is Rs. —————
  1.    2 crore
  2.    5 crore
  3.    1 crore
  4.    10 crore
Explanation:-
Answer: Option C. -> 1 crore


Question 6. A merchant banker can claim a charge —————% as the commission for the whole issue.
  1.    5
  2.    10
  3.    2.5
  4.    0.5
Explanation:-
Answer: Option D. -> 0.5


Question 7. ————— fund invests in highly liquid securities like commercial paper.
  1.    Equity fund
  2.    Balanced fund
  3.    Income fund
  4.    Money market mutual fund
Explanation:-
Answer: Option D. -> Money market mutual fund


Question 8. The company which sets up a mutual fund is called —————
  1.    Fund company
  2.    Sponsor
  3.    Originator
  4.    Obligator
Explanation:-
Answer: Option B. -> Sponsor


Question 9. The small investors’ gateway to enter into big companies is —————
  1.    Equity shares
  2.    Debentures
  3.    Preference shares
  4.    Mutual fund
Explanation:-
Answer: Option D. -> Mutual fund


Question 10. The process of selling trade debts of a client to a financial intermediary is called ———
  1.    Bill discounting
  2.    Factoring
  3.    Secularization
  4.    Materialization
Explanation:-
Answer: Option B. -> Factoring


© Lakshya_Education.com, All Right Reserved.
Contact Us services