Tag: concepts and functions of 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

The intermediary between the customers and suppliers who perform financing and debt collection services is called a ________.

  1. Bank

  2. Factor

  3. Mutual fund

  4. NBFC

  5. Merchant Banker
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Factoring is a financial service under which the factor undertakes collection, accounting and management of the client's debt. Thus the factor is an intermediary between the supplier and the customers who performs financing and debt collection services.

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 industrial company which has at the end of any financial year accumulated losses greater than its net worth is said to be _______________.

  1. Bankrupt

  2. Sick

  3. Weak

  4. Both (A) and (C) above

  5. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Sick industrial company is company registered for not less than five years which has to the end of any financial year, accumulated losses equals to or exceeding its entire net worth.

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

Deregulation and globalization of the financial markets increase the volatility in ___________.

  1. Internal rates

  2. Exchange rates

  3. Prices of financial assets

  4. All of the above

  5. Both (A) and (B) above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The most important and visible effect of globalization and integration of financial markets is the increase in volatility in:
1. Interest rates
2. Exchange rates &
3. Prices of financial assets change quite frequently in response to various changes taking place in different segments of the financial markets  all over the world.

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 strategy of laying stress on domestic production which is usually adopted by developing countries is called as ________________.

  1. Open economy strategy

  2. Growth oriented strategy

  3. Inward oriented strategy

  4. Export substitution strategy

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The strategy adopted by the developing countries to strengthen the domestic industries by an providing lot of protection to domestic industry in the form of heavy tarrifs/ restrictions on imports is called the inward oriented strategy. Thus the main feature of the inward oriented strategy is to lay stress on domestic production.

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

Delhi is often described as a 'cosmopolitan' city. This means that it ____________

  1. is the principal city

  2. is a city of great wealth

  3. is a city with a global reputation

  4. is a city with an ethnically diverse population
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A cosmopolitan city is a city that has a high diversity of population with the high number of population with a better life style than a village which suggests that it is a city of great wealth too.

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

Which of the following is example of consumer's co-operative society?

  1. Haryana handloom

  2. Gujarat co-operative milk marketing federation

  3. Apna bazar

  4. Urban Cooperative banks
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Apna bazar is an example of consumer's co-operative society. A consumer cooperative can be defined as a cooperative business owned by its customers for their mutual benefit. This type of cooperative business is service oriented rather than pecuniary profit.

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

Which strategy involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels?

  1. Product Development

  2. Market Penetration

  3. Diversification

  4. Market Development
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Product development strategy involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels. It helps in the process of expansion of the existing business. Product development strategy can be defined as a process of bringing a new innovation to consumers from concept to testing through distribution.