ECONOMY MCQS SET 101

ECONOMY MCQS SET 101

1001) Consider the following statements
1. A credit default swap is referred to as a credit derivative contract, where the purchaser of the swap makes payments up until maturity date of a contract.
2. Payments are made to the mediator and then the mediator deals with the seller.
Select the correct answer using the codes given below
A) Only 1
B) Only 2
C) Both 1 and 2
D) None of them
Correct Answer: Only 1
   
1002) Which of the following statements is relation to Bombay Stock Exchange, is correct?
A) It is the oldest exchange of India.
B) It is known by the name of Dalal Street.
C) It's share index Is known by the name of SENSEX.
D) All of the above
Correct Answer: All of the above
   
1003) With reference to Industrial Finance Corporation of India (IFCI), consider the following functions
1. IFCI guarantees the loans raised by the industrial concerns in the Indian capital market.
2. IFCI subscribes to the debentures floated the industrial concerns.
Which of the functions given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2   
1004) Bolivar is monetary unit of
A) Venezuela
B) Bolivia
C) Brazil
D) Belarus
Correct Answer: Venezuela
   
1005) Select the correct one/ones about the debenture holders of a company using the codes given below
1. They are like shareholders of the company.
2. They are creditors to the company.
3. They are called in the company's Annual General Meetings.
Codes
A) Only 1
B) Only 2
C) 2 and 3
D) 1 and 3
Correct Answer: Only 1

1006) Commercial paper is a source of credit of which one of the following?
A) Corporate Industry
B) Small Scale Industry
C) Commercial Bank
D) Foreign Bank
Correct Answer: Corporate Industry
   
1007) Which of the following are the functions of IRDAI?
1. Settlement of Insurance claim
2. Surrender value of policy holders
3. Creation of management information system
4. Code of conduct of insurance intermediaries
Choose the right answer using the codes given below
A) 1, 2 and 4
B) 1 and 4
C) 2 and 4
D) 1, 2, 3 and 4
Correct Answer: 1, 2, 3 and 4
   
1008) Which of the following is true about the distinction between money market and capital market?
1. Money market deals long term funds and capital market deals short-term funds.
2. Money market deals in securities like treasury bills, commercial papers etc and capital market deals with securities like shares, debentures etc.
3. Money market participants are Commercial Banks, NBFs etc and capital market participants are stock brokers, individual investors etc.
4. Money market is regulated by SEBI and capital market is regulated by RBI.
A) 1, 3 and 4
B) 2 and 3
C) 1 and 4
D) All of these
Correct Answer: 2 and 3
   
1009) Consider the following statements
1. LIBOR is the primary benchmark for short-term interest rates around the world.
2. Euribor is the usual reference rates for the euro which is compiled by the European Banking Federation.
Which of the statements given above is/are correct?
A) Only 2
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
1010) The acronym SRO, being used in the capital market for various market participants, stands for which one of the followings?
A) Self Regulatory Organisations
B) Small Revenue Operators
C) Securities Roll back Operators
D) Securities Regulatory Organisations
Correct Answer: Self Regulatory Organisations