Marketing Finance

1.Which institutions do not carry or purchase and sell on their own account, but act simply as agents
for the buyers and sellers of the financial assets?
a. Investment bankers
b. Commercial banks
c. Cooperative banks
d. Brokers
2.In which sector, the operations would produce the real output of goods and services leading to real
incomes?
a. Real sector
b. Financial sector
c. Both
d. None
3.In the process of production, goods and services are produced and the total value of this output is
the __________________________.
a. Gross domestic product
b. Net domestic product
c. Balance of trade
d. None of these

4.Out of the following which is not a money market instrument?

a. Treasury bills
b. Commercial paper
c. Certificate of Deposits
d. Shares
5.What is the meaning of savings?
a. excess of income over expenditure
b. excess of expenditure over income
c. only income
d. only expenditure
6.“Rise in prices lead to depreciation of the value of rupee.” What is the phenomenon?
a. Deflation
b. Inflation
c. Consumerism
d. None of the above
7.Out of the following statement, which one is correct:
a. Investment is short-term and speculation is long-term
b. Investment is medium-term and speculation is long-term
c. Investment is long-term and speculation is short-term
 d. None
8.The market which facilitates the sell and purchase of existing shares is known as:
a. Money market
b. Stock market
c. New Issue Market
d. None
9.What do you mean by lead industry?
a. Industry with accelerated growth
b. Industry with declined growth
c. Industry with stagnant state
d. None
10. The market which is not regulated by RBI is known as:
a. Unorganized market
b. Organized market
c. Money market
d. All of the above
11. The instrument which are having duration maximum one year:
a. Money market instrument
b. Capital market instrument
c. Stock market instrument
d. None
12. _________________ has been set up as a specialized money market institution with the
objective of providing liquidity to money market instruments and to develop a secondary market.
a. IDBI
b. DFHI
c. ICICI
d. HDFC
13. _________________________________ are short-term deposit instruments issued by banks
and financial institutions to raise large sums of money.
a. Treasury bill
b. Certificates of deposits
c. Commercial paper
d. None

14. The minimum and maximum CRR as per the guideline.

a. 3% and 15%
b. 10% and 20%
c. 8% and 16%
d. 9% and 18%
15.Which department collects, compiles and analyzes the statistical information and data on banking
and financial matters in particular and of the economy in general.
a. Rural Planning and Credit Department (RPCD)
b. Department of Economic Analysis and Policy (DEAP)
c. Department of Statistical Analysis and Computer Services (DSACS)
d. None of the Above
16. Which Section of Reserve Bank of India Act, 1934 gives RBI the sole authority to issue note?
a. Section 24
b. Section 22
c. Section 20
d. Section 32
17. _______________________ is the minimum official rate at which the central bank rediscounts
first-class bills of exchange from the discount houses and commercial banks.
a. Cash Reserve Ratio
b. Bank Rate
c. SLR
d. Repo Rate
18. The minimum proportion of deposits that has to be kept by commercial banks with the Central
Bank is known as:
a. Cash Reserve Ratio
b. Bank Rate
c. SLR
d. Repo Rate
19.Banks have to maintain liquid assets in the form of excess cash, gold, treasury bills,
unencumbered government securities, etc. of a minimum of 25 per cent of total net demand and
time deposit liabilities, exclusive of the balances to be maintained with the RBI under the above
CRR provision. This is known as:
a. Cash Reserve Ratio
b. Bank Rate
c. SLR
d. Repo Rate

20.To be a good manager of capital market, the manager should have ________.
a. Theoretical knowledge
b. Practical knowledge
c. Theoretical and practical knowledge
d. None

21. For management of time, which procedure should a manager may follow?
a. Centralization of authority
b. Delegation of authority
 c. Both
d. None
22. The securities that are offered in a market to the investing public for the first time is known
as____________ market.
a. Stock market
b. Money market
c. New issue market
d. None

23. What does AAA refers?

a. High Safety
b. Highest Safety
c. Adequate Safety
d. Moderate Safety
e. None
24. CRISIL stands for
a. Credit Risk Information Services of Industrial Link
b. Credit Risk Information Services of India Ltd.
c. Credit Rating Information Services of India Ltd.
d. None

25. Insurance compensates losses

a. By replacing the original asset
b. To the fullest extent of lost income
c. Only to the extent of insured amount
d. All