Tag: introduction to financial markets

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Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

REPO is?

  1. Repurchase agreement

  2. Reliance Petroleum

  3. Read and Process

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A repurchase agreement, or repo for short, is a type of short-term loan much used in the money markets, whereby the seller of a security agrees to buy it back at a specified price and time. The seller pays an interest rate, called the repo rate, when buying back the securities.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

The total number of Stock Exchanges in India is:

  1. $21$
  2. $20$
  3. $23$
  4. $22$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are a total of 21 stock exchanges in India, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) being the largest. Both offer stocks with volume and opportunity as India and the exchanges continue to grow and attract foreign investment.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

The Reserve Bank of India changes the cash reserve ratio from time.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Reserve Bank of India changes the cash reserve ratio from time- this is a true statement. Cash reserve ration is one of the quantitative methods of controlling credit creation capacity of the commercial bank. During inflation, Cash reserve ration is raise in order to reduce the money supply in an economy to check inflation and vice-versa.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

Paid dividends to common stockholders Rs 67, 600, 000 and common shares outstanding 55, 000, 000 then dividend per share will be _________.

  1. Rs 1.23

  2. Rs 0.81

  3. Rs 2.12

  4. Rs 2.78
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dividend per share is calculated by dividing total dividends paid by the number of common shares outstanding. Here, 67,600,000 / 55,000,000 equals approximately 1.229, which rounds to 1.23.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

A cheque is dishonored by______.

  1. non payment only.

  2. partial payment.

  3. both a & b.

  4. none of the above.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A cheque is dishonored by both non payment as well as partial payment. A cheque gets dishonored when the bank fails to pay the mentioned amount to payee. When the cheque deposited by anybody for collection or presented for payment gets refused by the bank, it is known as dishonor of cheque.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

State Bank of India was originally known as _________.

  1. Centurion Bank

  2. United Bank of India

  3. Imperial Bank

  4. None of the Above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

State Bank of India was originally known as Imperial Bank. Imperial Bank of India, 1955, was renamed on 30 April 1955 to the State Bank of India. Imperial Bank was established on 1921. Now, State Bank of India is one of the largest commercial banks of India.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

An endorsement is said to be Partial endorsement, if it satisfies which of the following conditions?

  1. If the endorser sings his name only

  2. If the endorser adds a direction to pay the amount mentioned in the instrument to the order of a specified person

  3. If the endorse restricts or excludes the right to further negotiate the instrument

  4. If the endorser purports to transfer to the endorsee only a part of the amount payable
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An endorsement is said to be Partial endorsement, if the endorser purports to transfer to the endorsee only a part of the amount payable. In simple terms, endorsement which allows transferring to the endorsee a part of the amount payable is known as partial endorsement.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

An entry strategy in which a firm maintains its production facilities within its home country and transfers its products for sale in foreign markets is known as _________.

  1. Exporting

  2. Licensing

  3. Franchising

  4. International management
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An entry strategy in which a firm maintains its production facilities within its home country and transfers its products for sale in foreign markets is known as exporting. Exporting can be defined as the act or process of sending goods and services to a foreign country for sale. Exporting helps to upgrade the rate of economic growth.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

The process by which allocation of funds is done is called ____.

  1. financial intermediation

  2. financial integration

  3. financial disinvestment

  4. financial leveraging
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The process by which allocation of funds is done is called financial intermediation. This process helps to channelize funds from the borrowers to lenders. Financial intermediation generally cause reduction in transaction cost. This process is mainly performed by the financial intermediaries, such as stockbroker, commercial bank, investment bank, etc.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

Certificates of deposit (CD) help to mobilize a large amount of money for short periods.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Certificates of deposit (CD) help to mobilize a large amount of money for short periods- this is a true statement. CDs are freelyy negotiable. It can be issued for a period of 91 days to 1 year. It is generally issued at a discount on the actual amount of deposits held.