Multiple Choice Questions on Financial Markets and Institutions. We covered all the Multiple Choice Questions on Financial Markets and Institutions in this post for free so that you can practice well for the exam.
Install our MCQTUBE Android app from the Google Play Store and prepare for any competitive government exams for free.
These types of competitive MCQs appear in the exams like UPSC, State PCS, CDS, NDA, Assistant Commandant, SSC, Railway, Bank, Delhi Police, UPSSC, and other Competitive Examinations, etc. We created all the competitive exam MCQs into several small posts on our website for your convenience.
You will get their respective links in the related posts section provided below.
Related Posts:
MCQ on Financial Markets and Institutions for Students
Consider the following statements. I. The money market refers to the market for short-term requirements and deployment of funds. II. The coupon rate is the specified interest rate on a fixed maturity security, fixed at the time of issue. III. Call money is money lent for one day. Which of the statements given above is/are correct?
(a) I and II only
(b) II and III only
(c) I and III only
(d) All of these
Option d – All of these
Which of the following statements are true about T-Bills? I. 14 days T-bill is auctioned every Friday every week. II. 91 days T-bill is auctioned every Friday every week. III. 182 days T-bill and 364 days T-bill are auctioned every alternate Wednesday. IV. 182 days T-bill and 364 days T-bill are auctioned on a fortnight basis. Choose the right answer from the codes given below.
(a) I, II and III
(b) I and IV
(c) II and III
(d) I, II and IV
Option b – I and IV
Capital market means
(a) Share market
(b) Cash market
(c) Commodities market
(d) All of the above
Option a – Share market
Open Market Operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
(a) the sale or purchase of government securities.
(b) issuance of different types of bonds.
(c) auction of gold.
(d) to make available direct finance to borrowers.
Option d – to make available direct finance to borrowers
The capital market witnessed major reforms in the 1990s. Which of the following are the major reforms of the capital market? I. Set-up of the Investors Education and Protection Fund in 2001 under the purview of SEBI. II. The Insurance Regulatory and Development Authority was set up in 2000. III. The Multi-Commodity Exchange is set up. IV. Credit rating agencies were set up. Choose the correct answer using the codes given below.
(a) I, II and IV
(b) II and IV
(c) I and III
(d) I, II, III and IV
Option d – I, II, III and IV
(a) I, III, and IV
(b) II and III
(c) I and IV
(d) All of these
Option b – II and III
The SEBI was given statutory status in 1992 on the recommendation of
(a) the Chakraborty Commission
(b) the Chelliah Committee
(c) the Tendulkar Committee
(d) the Narasimham Committee
Option d – the Narasimham Committee
To prevent the recurrence of scams in the Indian Capital Market, the government has assigned regulatory powers to
(a) RBI
(b) SBI
(c) SEBI
(d) ICICI
Option c – SEBI
(a) Government of India
(b) Reserve Bank of India
(c) SEBI
(d) Stock Exchanges
Option c – SEBI
A market for a relatively long-term financial instrument is known as
(a) Secondary market
(b) Primary market
(c) Capital market
(d) All of these
Option c – Capital market
As compared to capital markets, money markets
(a) have smaller fluctuations in price.
(b) trade debt instruments with shorter terms.
(c) are usually more widely traded.
(d) All of the above
Option d – All of the above
The acronym SRO, being used in the capital market for various market participants, stands for which one of the following?
(a) Self Regulatory Organisations
(b) Small Revenue Operators
(c) Securities Roll-back Operators
(d) Securities Regulatory Organisations
Option a – Self Regulatory Organisations
Consider the following statements about the Indian Capital Market. I. Primary Market in India is mainly dealt with new issues and debentures. II. The primary Market in India is supervised by the Insurance Regulatory Development Authority. Which of the statement(s) given above is/are correct?
(a) Only I
(b) Only II
(c) Both I and II
(d) Neither I nor II
Option a – Only I
Consider the following statements. I. The capital account surplus of a country means the money is flowing into the country. II. The capital account deficit of a nation suggests that the nation is increasing its claims on foreign assets. Which of the statements given above is/are correct?
(a) Only I
(b) Only II
(c) Both I and II
(d) Neither I nor II
Option a – Only I
Consider the following statements. I. A scheme for attracting portfolios from Foreign Institutional Investors (Flls) in India was launched in 1992. II. A scheme to raise ADR/GDR/FCCBS issues from the international capital markets in India was initiated during 1992-1993. Which of the statements given above is/are correct?
(a) Only I
(b) Only Il
(c) Both I and II
(d) Neither I nor II
Option c – Both I and II
The market in which loans of money can be obtained is called
(a) Reserve market
(b) Institutional market
(c) Money market
(d) Exchange market
Option c – Money market
Which of the following statement is correct about daily volumes in the call money market?
(a) These volumes are usually lower than the volumes in the repo markets.
(b) These volumes are comparable with volumes in the ICD and CP markets.
(c) They register the largest transaction value after government securities.
(d) Call money markets record the highest daily transaction value amongst all segments of debt markets.
Option d – Call money markets record the highest daily transaction value amongst all segments of debt markets
(a) Indian money market
(b) Indian commodity market
(c) Indian currency market
(d) Indian equity market
Option a – Indian money market
In the context of the Indian economy, ‘Open Market Operations’ refers to
(a) borrowing by scheduled banks from the RBI.
(b) lending by commercial banks to industry and trade.
(c) purchase and sale of government securities by the RBI.
(d) None of the above
Option c – purchase and sale of government securities by the RBI
The purchase or sale of government securities by the Central Bank from the general public in the bond market, in a bid to increase or decrease the money supply in the economy, is referred to as
(a) Open Market Operations
(b) Rationing of Credit
(c) Variable Reserve Ratio
(d) Clear Money Policy
Option a – Open Market Operations
The financial market for securities with maturities of less than one year is known as
(a) Derivatives market
(b) Cash market
(c) Money market
(d) Rupee market
Option c – Money market
India’s financial system can be mainly divided into
(a) two categories
(b) three categories
(c) four categories
(d) five categories
Option a – two categories
Which one of the following is a specialized sub-market of the money market?
(a) Collateral loan market
(b) Discount market
(c) Bond market
(d) Acceptance of market
Option c – Bond market
India has a highly volatile part of the organized money market.
(a) Government Securities Market
(b) Trade Bill Market
(c) Soliciting Money Market
(d) Deposit Certificate Market
Option c – Soliciting Money Market
Which one of the following is correct about the Commercial Papers (CPs) in the Indian money market? ( Multiple Choice Questions on Financial Markets and Institutions )
(a) It is issued by Indian Commercial Bank.
(b) It is issued by companies with a net worth of more than 5 crores.
(c) It is issued by the Central Government.
(d) All of the above
Option b – It is issued by companies with a net worth of more than 5 crores
We covered all the multiple choice questions on financial markets and institutions above in this post for free so that you can practice well for the exam.
Check out the latest MCQ content by visiting our mcqtube website homepage.
Also, check out:
