The securities that are already issued are available for subsequent purchases and sales at:________.
Office of the registrar and transfer agent
Follow on public offer of the issuer
Stock exchanges where they are listed
Depositories where they are held
Q.5.
A company can raise capital through the primary market in the form of
Equity shares
Preference shares
Debentures
All of the above
Q.6.
PK Enterprises Limited has sold an entire lot of 5,00,equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹per share. Identify the method of floatation being described in the given lines.
Private placement
Offer through prospectus
Offer for sale
Rights issue
Q.7.
The reserves of a company rightfully belong to ____________.
Equity Shareholders
Institutional lenders
Promoters
Employees
Q.8.
Compared to money market securities, capital market securities have
more liquidity
longer maturity
lower yields
less risk
Q.9.
A spot transaction in the foreign exchange market involves the
exchange of exports and imports at a specified future date.
exchange of bank deposits at a specified future date.
immediate (within two days) exchange of exports and imports.
immediate (within two days) exchange of bank deposits.
Q.10.
Money market securities have all the following characteristics except they are not
short term
money
low risk
very liquid
Q.11.
A basic principle of finance is that the value of any investment is
the present value of all future net cash flows generated by the investment
the undiscounted sum of all future net cash flows generated by the investment
unrelated to the future net cash flows generated by the investment
unrelated to the degree of risk associated with the future net cash flows generated by the investment
Q.12.
The primary reason that individuals and firms choose to borrow long-term is to
reduce the risk that interest rates will fall before they pay off their debt
reduce the risk that interest rates will rise before they pay off their debt.
reduce monthly interest payments, as interest rates tend to be higher on short-term than long-term debt instruments
reduce total interest payments over the life of the debt
Q.13.
What kind of fund collects and invests income for later payments to eligible recipients?
pension fund
credit union fund
insurance fund
mutual fund
Q.14.
The process of holding shares in electronic form is known as
Demutualisation
Dematerialisation
Speculation
None of the above
Q.15.
Which type of financial organization is a nonprofit service cooperative
commercial bank
mutual fund
insurance company
credit union
Q.16.
What is the name of the fee paid for an insurance policy?
interest
pension
contribution
premium
Q.17.
What is the main advantage of a mutual fund for an investor?
Its price doesn't change much.
It offers diversity in investment.
It has a set maturity date.
It can be sold at a profit.
Q.18.
When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, the euro has ________ and the dollar has ________
appreciated; appreciated
depreciated; appreciated
appreciated; depreciated
depreciated; depreciated
Q.19.
If you buy a 30-day Treasury bill for 99.the discount yield on this security is closest to:
3%
3.0075%
3.0493%
3.0417%
Q.20.
_______ formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
equities
savings
bond
futures contract
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