A market where existing securities are resold or traded is called ___________ market.
- Acommodity
- ✓secondary
- Cprimary
Answer: B.
View full solution →Question types
Financial Market question types
170 questions across 16 question groups — pick any mix to generate a Secretarial Practice paper with step-by-step answer keys.
170
Questions
16
Question groups
5
Question types
01
Select the correct answer from the options given below and rewrite the statement.
31 Q→02Give one word or phrase for the following sentence:
32 Q→03State whether the following statement is true or false.
15 Q→04Match the correct pairs
3 Q→05Explain the following term/concept in detail:
15 Q→06Study the following case/situations and express your opinion.
4 Q→07Distinguish between the following:
4 Q→08Answer in brife
7 Q→09Justify the following statement.
7 Q→10Answer the following questions
6 Q→11Find the odd one.
7 Q→12Complete the sentences.
18 Q→13Select the correct option from the bracket.
3 Q→14Answer in one sentence.
5 Q→15Attempt the following.
2 Q→16Correct the underlined words and rewrite the following sentences.
11 Q→Sample Questions
Financial Market questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Under ___________ the shares of a company are sold among the selected group of persons.
- ARight issue
- ✓Private placement
- CPublic issue
Answer: B.
View full solution →The market which is also known as the government securities market is ___________ market.
- APrimary
- BSecondary
- ✓Gilt-edged
Answer: C.
View full solution →The repurchase rate which is also known as the official bank rate is ___________ rate.
- ✓Repo
- BCredit
- CInterest
Answer: A.
View full solution →The liquidity is ___________ in case of commercial bills.
- ✓high
- Blow
- Cconstant
Answer: A.
View full solution →A marketplace where the existing securities are bought and sold.
The most popular method of raising long-term securities by offering them to the public by using a prospectus.
The equity shares of the companies are issued to the existing equity shareholders.
The market is utilized for raising fresh capital in the form of shares and debentures.
A market for government and semi-government securities.
Certificate of deposit is a part of the money market.
The financial market brings together borrowers and lenders.
MMMF is a part of the capital market.
Reverse Repo Rate is similar to Repo Rate.
Commercial bill is a common method to meet long term needs of industry.
| Group ‘A’ | Group ‘B’ |
| (1) Money Market | (a) Most common method to meet credit needs |
| (2) Commercial bills | (b) Primary Market |
| (3) Repo rate | (c) Interest |
| (4) Gilt-edged market | (d) Government securities market |
| (5) Secondary market | (e) Official bank rate |
| (f) Treasury bills | |
| (g) Financial market | |
| (h) Short term funds are borrowed and lent | |
| (i) Stock exchange | |
| (j) Fewer applications than expected |
| Group ‘A’ | Group ‘B’ |
| (1) Treasury bill | (a) Primary market |
| (2) Commercial bill | (b) Long term credit |
| (3) New Issue | (c) Mobilization of funds |
| (4) Stock Exchange | (d) Promissory note |
| (5) Financial Market | (e) Short term credit |
| (f) Secondary market | |
| (g) Central Government | |
| (h) Deals only with brokers | |
| (i) New banking institution | |
| (j) Mutual Fund |
Money Market Mutual Fund
Gilt-edged market
Reverse Repo Rate
Repo Rate
Government Securities
Government of India wants short-term finance to deal with the short-term deficit condition. Advice the government on the following. Question (a). Name of the instrument through which government can build up short-term finance? Question (b). What will be the minimum amount of investment in the Treasury bill? Question (c). Method of issue of Treasury bill.
1. M/s. Radheshyam company wants short-term loans (Borrowing) to meet its working capital needs. Hence as an expert advice M/s. Radheshyam on the following matters. Question (a). Can a company select a capital market to complete its working capital needs? Question (b). If a company selects the money market, the names of the instruments through which short-term finance can be build up? Question (c). Is completion of working capital needs important to Radhaeshyam Company?
Mr. X is the CFO (Chief Financial Officer) of PQR Co. Ltd. which is a reputed company in the field of construction business. Often Mr. X has to decide on investing surplus funds of the company for short durations. And at times, he also has to decide the sources from where he can raise funds for short durations.
Q1- Assume on behalf of the company Mr. X has Rs. 5 lakhs and wants to invest for a short period. Should he buy Equity shares of Certificate of Deposit?
Q2- The company has surplus funds and wants to invest it. However, he needs the money back in 4 months, so should he invest in Treasury Bills or Government Securities?
Q3- Can the company issue Certificate of Deposit?
Joy Ltd. Company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares.
Q1- Should d go to primary market or secondary market to issue its shares?
Q2- Should it offer its shares through public offer or rights issue?
Q3- What will be the issue of Equity shares by Joy Ltd. Company called IPO or FPO?
Repo Rate and Reverse Repo Rate
Commercial Bills and Treasury Bills
Money Market and Capital Market
Primary Market and Secondary Market
Write a note on Participants in the Money Market.
Explain constituents of Capital Market.
Write a note on the importance of the financial market.
Explain any 4 types of money market instruments.
State any four features of the capital market.
Capital Market facilitates the mobilization of funds.
Repo rate is known as the official bank Rate.
The gilt-edged market is known as the government securities market.
Primary Market is known as the New issue market.
Capital Market is useful for the corporate sector.
Explain constituents of the Indian capital market.
Explain the role and importance of the financial market in the development of an economy.
There are many participants in the money market.
State the features of the capital market.
State the instruments in the money market.
Preference share, Equity shares, commercial bill
Commercial paper, certificate of deposit, bondCommercial paper, certificate of deposit, bond
SEBI, RBI, SIDBI
Share, debenture, commercial paper
Treasury Bill, certificate of deposit, bond
Arrange in proper order :
Arrange the following securities on the basis of redemption:
(a) Preference shares
(b) Equity shares
(c) Debentures
Arrange in proper order :
Arrange the following instruments on the basis of ‘Year of the beginning’:
(a) Commercial papers
(b) Certificate of deposits
(c) Treasury bills
Arrange in proper order :
Arrange the given instruments by using minimum amount Criteria:
(a) Certificate of deposit
(b) Commercial paper
(c) Treasury Bill
Private companies deal their securities in ___________
Government security market is also called as ___________
| Group ‘A’ | Group ‘B’ |
| (1) …………………. | (a) Gilt-edged Market |
| (2) ………………… | (b) Repo Rate |
| (3) Commercial bills | (c) …………………… |
| (4) Money market | (d) ………………….. |
(Short term, most common method to meet credit needs, official bank rate, Government securities)
| Group ‘A’ | Group ‘B’ |
| (1) Financial Market | (a) …………………. |
| (2) Money Market | (b) ………………… |
| (3) …………………. | (c) Primary Market |
| (4) …………………. | (d) Commercial Paper |
| (5) Capital Market | (e) ………………… |
(Financial Securities, Short Term, Neiv issue, unsecured promissory note, long term)
| Group ‘A’ | Group ‘B’ |
| (1) …………………. | (a) Promissory note |
| (2) ………………… | (b) short term credit |
| (3) New Issue | (c) ………………. |
| (4) Stock Exchange | (d) ……………… |
(Commercial bill, Treasury bill, Secondary market, Primary market)
What is the Gilt-edged market?
What is commercial paper?
What is a Treasury bill?
What is a Secondary Market?
What is Repo Rate?
Explain important participants of the Indian Money Market.
Explain features of the Indian Money Market?
Primary Market the parties dealing in this market are the only investors.
In the primary market security price is fixed by Demand and supply.
Direct Investment took place in the secondary market.
Underwriters are the intermediary of the secondary market.
Trade Bills are unsecured negotiable promissory notes issued by Banks.
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