CUET Business Studies: Business StudiesFinancial Markets. Free, no login required.

Money Market Instruments do not Include :

(A) Treasury Bill

(B) Certificate of Deposit

(C) Commercial Bill

(D) Equity Shares

(E) Preference Shares

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Match List - I with List - II.

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In the world of Financial market, IPO stand for :

Rohit has 500 shares of Ruchi Soya Ltd. Ruchi Soya further issued 1,00,000 equity shares and offered Rohit to buy 1 more equity share for every 5 shares held by him. Identify the method of floatation

Beneficial owner account with a depository participant for holding and transfer of securities is also known as _____.

Capital market consists of

A. Development Bank

B. Financial Institutions

C. Stock Exchange

D. Treasury Bills

E. Call Money

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SEBI is an interim administrative body to promote orderly and healthy growth of securities market

Find out the correct statements about SEBI

A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market

B. The act of Parliament that governs SEBI is SEBI Act, 1994

C. The basic purpose of SEBI is to form new enterprises

D. SEBI doesn't protect the rights and interest of investors

E. SEBI is a separate regulatory body

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Match list I with list II

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Which one of the following is NOT the function of Financial Market ?

Name the intermediary who is authorised to maintain the accounts of dematerialised shares :

Name the money market instrument, used by large and credit worthy companies to raise the short term funds at lower rates of interest than market rates.

In order to raise share capital, ABC Ltd., is issuing shares and giving privilege to the existing shareholders to subscribe to the new issue of shares according to the terms of conditions of the company. Identify the method of floatation used by the company.

"Financial Markets help to save time, efforts and money of both buyers and sellers of financial assets". Identify the function of financial markets being highlighted in the statement.

From the following identify the functions of stock exchange which facilitate the spread of coducive climate for share ownership.

A. Regulation of takeover bids by Companies

B. Pricing of Securities

C. Safety of Transactions

D. Training of intermediaries of the securities market

E. Spreading of equity cult

Match the List I with List II

The process of holding securities in an electronic form is known by a specific term. Identify the term.

Name the money market investment used by Commercial banks to meet their cash Reserve Ratio requirement.

This is a privilege given to existing stakeholders to subscribe to a new issue of shares on pro-rata basis-

During the period of Diwali, people prefer to keep money at home and hence do not deposit money in the bank. There are also frequent withdrawals from the ATM in the form of cash. Due to this, banks all over the country may face the problem of low liquid cash. Identify the money market instrument that the bank can use to solve their financial problem.

Anek Ltd. Issued a public offer to raise Rs. 70 lakh equity from primary market. In the process of floating the issue, it incurred certain expenses like brokerage, commission, printing of application, advertising etc. Identify the money market instrument that can be used for financing this cost.

Match List I with List II

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Which of the following statement is/are correct regarding function of Stock Exchange?

A. Providing liquidity and market ability to existing securities.

B. Training of intermediaries.

C. Undertaking steps of investor protection.

D. Promotion of fair practices and code of conduct in securities market.

E. Regulation of takeover bids by companies.

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Match the items of List I with the correct items of List II

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Which of the following statement is/are false about Financial market?

A. Investment in capital market requires huge financial outlay.

B. Money market has no physical location.

C. The primary market is known as new issue market.

D. Money market instruments are riskier both with respect to returns and principal repayments.

E. Financial market consists of capital market and secondary market only.

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Shriniwas has 2,500 equity shares of K.C.L. company. He wants to sell these shares. Identify the market which he should approach.

An investor has purchased a 91 days treasury bill with a face value of Rs. 50,000 for Rs. 45,000. He held the bill till maturity date and received Rs. 50,000. The difference of Rs. 5,000 represents

Treasury Bills are issued by

Identify the objective of SEBI from the following:

A. To protect the rights and interests of investors

B. To regulate stock market and the securities industry to promote their orderly functions.

C. Registration of brokers

D. To prevent trading malpractices and achieve a balance between self regulation by securities industry and its statutory regulation

E. Calling for information by undertaking inspection

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Name the market for financial securities which is also known as 'New Issue Market'

"Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues" - which function of stock exchange is highlighted by the given statement?