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... View Article
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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 fundamentally... 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... 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... 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... 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.... 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... 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... 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... View Article
Which of the following statements is not true with regard to call money?
(a) Its maturity period ranges from one day to fifteen days. (b) It is used for inter-bank transactions. (c) There... View Article
Which of the following statements is not true with regard to Commercial paper?
(a) It is a long-term unsecured promissory note with a fixed maturity period. (b) It is sold at a discount... View Article
Which of the following statements is not true with regard to Treasury bills?
(a) They are highly liquid and have assured yield (b) They are available for a minimum amount of ₹25,000 and... View Article
Which of the following statements is not true with regard to the money market?
(a) Deals in unsecured and short-term debt instruments. (b) It is situated at specific locations. (c) The instruments traded are... View Article
When does the earnings per share (EPS) rise with higher debt?
(a) When the rate of return on investment is higher than the rate of interest. (b) When the rate of... View Article
As the financial leverage of a company increases, it leads to ______.
(a) A decline in the cost of funds but an increase in the financial risk (b) Both an increase in... View Article
A higher financial leverage ratio indicates that _____.
(a) The dependency of the firm on the debt is more. (b) The proportion of equity in the total capital... View Article
Name the decision which affects both the profitability and the financial risk.
(a) Capital budgeting decision (b) All of the above (c) Capital structure decision (d) Financial planning decision Answer (c) Capital... View Article
Which of the following is not a source of borrowed funds?
(a) Debentures (b) Public deposits (c) Retained earnings (d) Loans from financial institutions Answer (c) Retained earnings Explanation: Retained earnings... View Article
Which of the following is not a part of owners’ funds?
(a) Reserves and surplus (b) Preference shares (c) Debentures (d) Equity shares Answer (c) Debentures Explanation: Debentures are a debt... View Article
Which of the following is not important to financial planning?
(a) It helps in coordinating various business functions. (b) It helps to reduce waste, duplication of efforts, and gaps in... View Article
