Financial Services MCQs

Multiple Choice Questions 51 Pages

Savitribai Phule Pune University

Bachelor of Business Administration

PLB

Contributed by

Parvez Lal Banik

Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

UNIT I – INDIAN FINANCIAL SYAYTEM : An Overview

Q.1. Fill in the blanks with correct option.

1.The word money is derived from…….Latin word.
a. Moneta
b. gratia
c. caveat
d. ergo

2. …………………..was the protector of funds and money in ancient Rome.
a. Juno Moneta
b. Henry Feyol
c. F.W.Taylor
d. None of these

3. Money is matter of 4 function- A medium , a measure, a standard…………--.
a. Store
b. Bin-card
c. Commerce
d. Financial

4. Indian Financial System consists of financial market,…………….. and
Financial intimidation.
a. financial instrument
b. services
c. underwriters
d. derivatives.

Page 1
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

5. ------------------- are business organization that is mobilisers and depositors
of savings and providing financial services.
a. Financial Institutions
b. head offices
c. Branches
d. none of these.

6. ………………………. are differ from Non-financial Business organization.
a. Financial Institutions
b. head offices
c. Branches
d. none of these.

7…………….. can be defined as the market in which financial assets are
created or transferred.
a. Financial Market
b. financial service
c. Financial Instruments
d. head Offices.

8. ……………. this market is dominated by government, banks, and financial
institutions.
a. money market
b. Capital Market
c. Organised Market
d. Unorganised

9 ………………….market is also called as the security market.
a. Capital market
Page 2
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

b. Money Market
c. Organised Market
d. Unorganised

10………………….market deals with the multicurrency requirements.
a. Forex market
b. Money Market
c. Organised Market
d. Unorganised

11……………….. bills are issued by central government.
a. Treasury Bills
b. Bills of Exchange
c. Dishonored bill
d. Unorganised

12. Debt instruments are issued by corporate houses for raising short term
financial resources from money market are called as ……………..
a. Commercial Paper
b. Certificate of deposits
c.. treasury bill
d. hybrid

13. Services are offered by finance companies are called as …………….
a. Financial Services
b. social service
c. Acceptance
d. Depositary Service

Page 3
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

14. Financial services serve the needs of individuals institutions and corporate
bodies through the ……….. ………….
a. Network of Element
b. Money Market
c. Financial Services
d. Unorganised

15. The price in the financial market is called as ……………
a. Rate of Interest
b. Money Market
c. Price Stability
d. Equal price

16. The markets which attracts funds in large volume and from all types of
investors are called as …………
a. Broad financial market
b. Money Market
c. Organised
d. Unorganised

17. ………………or liberalization aim at creating market oriented competitive
financial system.
a. Financial Reforms
b. integration
c. financial repression
d. None of these

Page 4
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

18………………appears to have an important role in the restructuring and
liquidation of companies that are in distress.
a. Financial Intermediary
b. Financial Instruments
c. Organised Market
d. Firm’s Assets

19……………. banker is any person who is engaged in the business of issue of
management either by making arrangement regarding selling, buying,
securities to manager.
a. Merchant
b. Money bankers
c. Non Banking Institutes
d. Unorganised

20…………………..banking is the development of banking from commerce which
frequently encountered a prolonged intermediate.
a. Merchant
b. Money bankers
c. Non Banking Institutes
d. Unauthorized

21.An outstanding development in this sphere was the conversion of the
……………
a. Industrial Finance Corporation
b. Non banking financial Institutes
c. Insurance Companies
d. None of the above

Page 5
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

22. DFIs stands for…………….
a. Development financial Institutes
b. Development of Banking institute
c. Development of financial Industries
d. Deputy Factor Service

23. The bonds issued by the DFIs were no longer eligible as…………….assets for
banks.
a.SLR
b. NSE
c. IFCI
d. DFIs

24. The factors which had adversely affected the profitability of the banking
system were partly external is termed as ………………
a. macro –policy environment
b. staffing and branch spread
c. promoting savings
d. none of the above

25. The factors which had adversely affected the profitability of the banking
system were partly internal is termed as ………………
a. staffing and branch spread
b. macro –policy environment
c. promoting savings
d. none of the above

26. NBFCs Stands for
a. non banking financial corporations
Page 6
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

b. Indian financial institutions
c. national banks factor corporation
d. none of the above

27. NBFCs are partly ………… and partly……………..
a. fees based and fund based
b. free and periodic
c. full fees and periodic
d. fund based and systematic

28. …………….are emerging as the backbone of Indian Capital Market.
a. Mutual Fund
b. Investments
c. savings
d. Interests

29. The present structure consists of domestic mutual funds sponsored by the
……………
a. UTI
b. LIC
c. NFCs
d. IFS

30……………..are encouraged, both in public and private sectors and they have
been permitted to invest overseas.
a. Mutual Funds
b. Shares
c. Capital
d. Investments
Page 7
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

31. Secondary market represented an institutional mechanism was ………………
a. inadequate
b. incorrect
c. aggregate
d. exact

32. SEBI stands for ……………….
a. security exchange board of India
b. State Bank of India
c. sate electronic board of India
d. none of the above

33. CDs stands for ………… and CPs stands for…………..
a. certificate of deposit & commercial paper
b. certify deputy manager & commercial bills
c. clear deposit & contract papers
d. contractual deposit & compact project

34. …………………are appointed by the issuing companies in consultation with
the merchant bankers.
a. underwriters
b. Mutual fund
c. Certificate of deposits’
d. treasury bills

35. Underwrites are appointed by the issuing companies in consultation with
the …………………
a. merchant banks
b. Mutual fund
Page 8
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

c. Certificate of deposits’
d. treasury bills

36. In …………………this case the issue is underwritten by two or more
underwriters jointly.
a. joint underwriting
b. sub underwriting
c. syndicate underwriting
d. firm underwriting

37. Under ………………..this case involves more than one underwriters.
a. sub underwriting
b. joint underwriting
c. syndicate underwriting
d. firm underwriting

38. ……………..in this case underwriter agrees to take up a specified number of
securities.
a. firm underwriting
b. sub underwriting
c. syndicate underwriting
d. joint underwriting

39. …………..is empowered to carry out the inspection of the bankers to the
issue with a view to protecting the investors’ interest.
a. RBI
b. SBI
c. SEBI
d. Capital Market
Page 9
Dnyansagar Arts And Commerce College, Balewadi,Pune – 45

Subject- Financial Services Sem- VI, 2013 pattern Sub.code- 605 Class: T.Y.BBA
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

40. A ………….is a deed which is executed by the company in favour of the
trustees named for the benefit of the debenture holder.
a. trust deed
b. Agreement
c. contract
d. none of above

41. A scheduled bank carrying on ……………..
a. commercial activity
b. financial activity
c. banking activity
d. none of the above

42………………is mandatory in order to act as debenture trustee.
a.. Certificate
b. agreement
c. contract
d. none of the above

Answers -
1-a
2 a
3 a
4. a
5.a
6.a
7.a
8.a
9.a
10.a
11.a
12.a
13 .a
14 .a
15 .a
16. a
17. a
18. a
19. a
20. a
21. a
22. a
23. a
24.a
25. a
26. a
27. a
28. a
29. a
30. a
31. a
32. a
33. a
34. a
35. a
36. a
37. a
38. a
39. a
40. a
41. a
42. a

Page 10

Financial Services MCQs

Financial Services MCQs

Download this file to view remaining 41 pages