ECONOMY MCQS SET 102

ECONOMY MCQS SET 102

1011) Consider the following statements
Full convertibility of the rupee may mean
1. Its free float with other international currencies.
2. Its direct exchange with any other international currency at any prescribed place inside and outside the country.
3. It acts just like any other national currency.
Which of the statements given above is/are correct?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) Only 2
Correct Answer: 1 and 2
   
1012) Which of the following is the correct definition of the term 'Commercial Paper'?
A) It is nothing but the popular name of the judicial stamp papers used to register financial transactions.
B) It is one of the instrument through which corporate raise debts from the market.
C) It is the name of the 'Certificate of Deposits' provided by the bank to all its retail customers.
D) All of the above
Correct Answer: It is one of the instrument through which corporate raise debts from the market.
   
1013) Consider the following statements
1. American depositary receipts are securities of a non US company that trade in the US financial markets.
2. ADR is a negotiable security that represents securities of companies that is foreign to the market on which the DR trades.
Which of the statements 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   
1014) In the parlance of financial investment, the term bear denotes
A) an investor, who feels that the price of a particular security is going to fall.
B) an investor, who expects the price of a particular share to rise.
C) a shareholder, who has an interest in a company, financially or otherwise.
D) any lender, whether by making a loan or buying a bond.
Correct Answer: an investor, who feels that the price of a particular security is going to fall.
   
1015) Which one of the following market is primarily related with the S&P CNX?
A) Primary market
B) Secondary market
C) Commodity market
D) None of the above
Correct Answer: Secondary market
1016) The financial sector Legislative Reforms Commission report submitted recently, among others, contained which of the following proposals ?
1. All regulators will have an empowered Board, the role of each of the members has been defined.
2. The commission envisages an important process of judicial review of the regulations.
3. The draft code does not mention about executive powers
Select the correct answer using the codes given below.
A) 1 and 2
B) Only 2
C) 1 and 3
D) 1, 2 and 3
Correct Answer: Only 2
   
1017) With reference to State Financial Corporations, consider the following functions
1. It guarantees the loans raised by the Industrial concerned payable in 20-years.
2. It underwrites the stocks, shares, bonds or debentures in the Indian Capital Market.
3. It subscribes directly to the shares or stocks of any companies having limited liability.
Which of the functions given above is/are correct?
A) 1 and 2
B) Only 2
C) 2 and 3
D) All of these
Correct Answer: All of these
   
1018) Match the following
List I      List II
Publishers      Publication
A. Ministry of Industry      1. Report on Currency and Finance
B. Central Statistical Organisation      2. Economic Survey
C. Reserve Bank of India      3. Wholesale Price Index
D. Ministry of Finance      4. National Accounts Statistics
Below the Codes are given in A B C D order
A) 2 4 3 1
B) 3 4 1 2
C) 4 3 1 2
D) 4 1 3 2
Correct Answer: 3 4 1 2
   
1019) Consider the following statements
1. Individuals, trusts and non-profit making organisations are not eligible to raise External Commercial Borrowings (ECBs)
2. ECB for investment in the real sector especially infrastructure sector in India is allowed under the Automatic Route.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 2
   
1020) Which one of the following functions is the major function of the Industrial Reconstruction Bank of India?
A) Revival of sick industrial units
B) Construction and establishment of new heavy industries
C) Repurchase of the stocks and debentures from the general public
D) Both 'a' and 'b'
Correct Answer: Both 'a' and 'b'