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Stock Exchange works as a mechanism for the valuation of securities through the forces of demand and supply. Identify the related functions performed by the stock exchanges.

(a) Safety of transaction. (b) Spreading of the equity cult. (c) Pricing of security. (d) Providing liquidity and marketability to existing... View Article

Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.

(a) Offer for sale (b) Offer through a prospectus (c) Private placement (d) All of the above Answer (b) Offer through a prospectus... View Article

Which of the following participants represent the capital market?

(a) Commercial banks (b) Stock exchanges (c) Development banks (d) All of the above Answer (d) All of the above Explanation:A capital market... View Article

They can be issued to individuals, corporations, and companies during periods of tight liquidity when the deposit growth of banks is slow, but the demand for credit is high.

(a) Call money (b) Commercial bill (c) Commercial papers (d) Certificate of deposit Answer (d) Certificate of deposit Explanation: A... View Article

A company can raise capital through the primary market in the form of______.

(a) Preference shares (b) Debentures (c) Equity shares (d) All of the above Answer (d) All of the above Explanation: The primary market is... View Article

The capital market consists of _______.

(a) Commercial banks (b) Stock exchanges (c) Development banks (d) All of the above Answer (d) All of the above Explanation:A capital market... View Article

It is a short-term, negotiable, self-liquidating instrument that is used to finance the credit sales of firms.

(a) Commercial bill (b) Call money (c) None of the above (d) Commercial papers Answer (a) Commercial bill Explanation: The commercial bills... View Article

A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit.

(a) Creates no effect on other sources. (b) Cheaper in comparison with banks that raise funds from these sources. (c) None of the above (d)... View Article

It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.

(a) Commercial papers (b) None of the above (c) Call money (d) Commercial bill Answer (c) Call money Explanation: Call money is any sort of... View Article

It is used as an alternative to bank borrowing for large and creditworthy companies.

(a) Call money (b) Commercial papers (c) Commercial bill (d) None of the above Answer (b) Commercial papers Explanation: Commercial Paper is... View Article

Who issues a treasury bill?

(a) Any private sector bank (b) All of the options (c) Reserve Bank of India (d) Any nationalised bank Answer (c) Reserve Bank of India... View Article

It is an instrument of short-term borrowing by the Government of India maturing in less than one year.

(a) Call money (b) Treasury bill (c) Commercial bill (d) None of the above Answer (b) Treasury bill Explanation:Treasury bills are money... View Article

It is a market for short-term funds, which deals in monetary assets whose period of maturity is up to one year.

(a) Secondary market (b) Capital market (c) Primary market (d) Money market Answer (d) Money market Explanation:The money market... View Article

The allocated function is performed by

(a) Capital market (b) Money market (c) Financial market (d) All of the above Answer (d) All of the above Explanation: The allocation... View Article

Which of the following statements is true with regard to financial markets?

(a) They work as an intermediary between the savers and the investors by mobilising funds between them. (b) They allocate funds available for... View Article

Which of the following is not a protective function of the stock exchange?

(a) Controlling insider trading. (b) Promotion of fair practices and code of conduct in the securities market. (c) Regulation of takeover bids... View Article

Which of the following statements is not true with regard to the stock exchange?

(a) By providing a ready market, it extends liquidity to the securities. (b) It curbs the marketability of the securities. (c) It provides a... View Article

Which of the following statements is not true with regard to the capital market?

(a) The funds are raised for a short period of time. (b) It is classified into two types. (c) All of the above. (d) Both debt and equity funds... View Article

22 Nov 2021: The Hindu Analysis

UPSC Current Affairs Preparation: The Hindu Analysis Watch expert analysis of ‘The Hindu’ dated 22nd Nov 2021. Important news and views to boost... View Article

Which of the following statements is not true with regard to the primary market?

(a) It is also known as the old issues market. (b) It deals with new securities being issued for the first time. (c) It facilitates the... View Article

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