Which one of the following is not a function of financial market?
  • Mobilisation of savings
  • Price determination of securities
  • Floating of companies
  • Lowering transaction cost
Which one of the following is a money market instrument?
  • Unit of mutual fund
  • Debenture
  • Bond
  • Treasury bill
Primary and secondary markets develop simultaneously because they
  • complement each other.
  • complement with each other
  • control each other.
  • function independently.
Secondary market is in the form of
  • stock exchange.
  • money market
  • new issue market.
  • commercial exchange
SEBI is a regulator of
  • capital market.
  • money market
  • commodity market.
  • overseas market
___ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.
  • Treasury bill
  • Commercial paper
  • Certificate of deposit
  • Promissory note
___ is the market which helps existing investors to sell their securities.
  • Primary market
  • Secondary market
  • Capital market
  • Commodity market
___ is the institution which provides a platform for trading of existing securities having long-term maturity.
  • SEBI
  • WTO
  • Stock exchange
  • RBI
After the trade has been executed, the broker issues a Contract Note to the investor within
  • 52 hours
  • 24 hours
  • 48 hours
  • 12 hours
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
The mandatory detail that an investor has to provide to the broker at the time of opening a demat account is
  • Date of birth and address
  • PAN number
  • Residential status (Indian/NRI)
  • Bank account details.
It is a number assigned to each transaction by the stock exchange and is printed on the contract note.
  • PAN number
  • Unique Order Code
  • Contract Note
  • None of the above
It acts like a bank and keeps securities in electronic form on behalf of the investor,
  • Depository Participant
  • Depository
  • Stock exchange
  • None of the above
The process of holding shares in electronic form is known as
  • Demutualisation
  • Dematerialisation
  • Speculation
  • None of the above
Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.
  • Providing liquidity and marketability to existing securities.
  • Safety of transaction.
  • Pricing of security.
  • Spreading of equity cult.
PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank intum will offer the shares to 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
Which of the following participants represent capital market?
  • Development banks
  • Commercial banks
  • Stock exchanges
  • All of the above
A company can raise capital through the primary market in the form of
  • Equity shares
  • Preference shares
  • Debentures
  • All of the above
It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
  • Commercial bill
  • Commercial papers
  • Call money
  • None of the above
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