Functions of Financial Market

Q.

What is the OTCEI?

Q.

Which of the following is a function of financial markets?

1. Facilitate price discovery

2. Provide liquidity to financing assets

3. Reduce the cost of transaction

4. All of the above

Q.

Explain the recent Capital Market reforms in India.

Q.

Explain the various segments of the NSE.

Q.

'Mobilisation of savings and channelling them into the most productive uses'- this is a function of financial markets. State true or false.

1. True

2. False

Q.

State the objectives of the NSE.

Q.

What are the functions of a financial market?

Q. "A financial market is for the creation and exchange of financial asssets." Which of the following are the functions of a financial market?

1. Providing liquidity to financial assets.
2. Facilitating price discovery.
3. Mobilisation of savings and channeling them into the most productive use.
4. All of the above.

Q.

What is the OTCEI?

Q.

NSE commenced futures trading in the year

(a) 1999

(b) 2000

(c) 2001

(d) 2002

Q.

Which of the following are two different ways of issuing securities in a primary market?

1. Primary placement

2. Offer for sale

3. Both A and B

4. None of the above

Q. is a place where financial assets are bought and sold.

1. Financial Market
2. Wholesale Market
3. Retail Market
4. Stock Exchange

Q.

What are the four components of business?

Q. What are the functions of financial markets?

Q.

State any four functions of financial market.

Q. Distinguish between capital market and money market.

Q.

Financial market plays an important role in the allocation of scarce Sources in an economy by performing many important functions. Explain any four such functions.

Q.

Mr. Sahil and Mr. Rajesh are promoting a new company. They are not able to decide on how to raise funds. Sahil is interested in a new issue through the prospectus, while Rajesh wants a rights issue. As a financial manager, suggest the appropriate step to Sahil and Rajesh.

1. Offer through Prospectus

2. Offer for Sale

3. Private Placement

4. Rights Issue

Q.

Sudha Lts. has sold 1 lakh equity shares of Rs.10 each at Rs.12 per share to an investment banker, who offered them to the public at Rs.20 each. Identify the method of floatation.

1. Offer through Prospectus

2. Offer for Sale

3. Right Issue

4. None of the above

Q. What do you mean by Money market and how is it different from capital market?

Q. What do you mean by financial market?

Q. "Money market instruments are more liquid than capital market instruments". Comment.

Q. Meeting international benchmarks and standards is one of the objectives of NSE.

1. True
2. False

Q. What is meant by 'Financial Market'?

Q. Explain any four functions of financial market.

Q. List the functions of a Stock Exchange and explain any two.

Q. OTCEI was set up to provide ________ and ________ companies an access to the capital market for raising finance in a cost effective manner.

1. small, medium
2. large, medium
3. small, large
4. none of the above

Q. Simultaneous purchase and sale of the same stock in two different markets is known as ______________.

1. badla
2. margin trading
3. basket trading
4. arbitrage

Q. State any one 'Development function' of Securities and Exchange Board of India.

Q.

Briefly explain the following functions of financial markets :

(i) Information dissemination

(ii) Mobilises savings

(iii) Provides liquidity