Financial Markets Test

Result

Financial Markets Test - 14

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

The factors responsible for integration of financial markets are ___________________.

A
Increased cross penetration of foreign ownership.

B
Liberalization of regulations governing the financial markets

C
The development of new financial instruments

D
All of the above

E
Both (A) and (C) above

Solution

Integration of financial markets involves the freedom and opportunity to raise funds from and to invest anywhere in the world, through any type of instrument. All the given factors are responsible for Integration of financial markets.
Question 2
1 / -0

Giving excess protection to domestic markets, which have high entry barriers for foreign firms, over valuation of exchange indicates the adoption of _________ by the country?

A
Inward oriented strategy

B
Inflation control

C
Liberalization

D
Outwards oriented strategy

E
Export promotion strategy

Solution

The strategy adopted by the developing countries to strengthen the domestic industries by an providing lot of protection to domestic industry in the form of heavy tarrifs/ restrictions on imports is called the inward oriented strategy.
Question 3
1 / -0

The strategy of laying stress on domestic production which is usually adopted by developing countries is called as ________________.

A
Open economy strategy

B
Growth oriented strategy

C
Inward oriented strategy

D
Export substitution strategy

E
None of the above

Solution

The strategy adopted by the developing countries to strengthen the domestic industries by an providing lot of protection to domestic industry in the form of heavy tarrifs/ restrictions on imports is called the inward oriented strategy. Thus the main feature of the inward oriented strategy is to lay stress on domestic production.
Question 4
1 / -0

The intermediary between the customers and suppliers who perform financing and debt collection services is called a ________.

A
Bank

B
Factor

C
Mutual fund

D
NBFC

E
Merchant Banker

Solution

Factoring is a financial service under which the factor undertakes collection, accounting and management of the client's debt. Thus the factor is an intermediary between the supplier and the customers who performs financing and debt collection services.
Question 5
1 / -0

An industrial company which has at the end of any financial year accumulated losses greater than its net worth is said to be _______________.

A
Bankrupt

B
Sick

C
Weak

D
Both (A) and (C) above

E
None of the above

Solution

Sick industrial company is company registered for not less than five years which has to the end of any financial year, accumulated losses equals to or exceeding its entire net worth.
Question 6
1 / -0

Deregulation and globalization of the financial markets increase the volatility in ___________.

A
Internal rates

B
Exchange rates

C
Prices of financial assets

D
All of the above

E
Both (A) and (B) above

Solution

The most important and visible effect of globalization and integration of financial markets is the increase in volatility in:
1. Interest rates
2. Exchange rates &
3. Prices of financial assets change quite frequently in response to various changes taking place in different segments of the financial markets all over the world.
Question 7
1 / -0

The statistical technique used by Altman to distinguish between a bankrupt and a non bankrupt firm is ______________.

A
Multiple Discriminant Analysis

B
Correlation

C
Joint Probability

D
Multiple Regression Analysis

E
Both (B) and (D) above

Solution

Multiple discriminant Analysis (MDA) is the statistical technique that is used to distinguish between bankrupt and non bankrupt firms.
Question 8
1 / -0

According to traditional approach the average cost of capital ________________________________.

A
Remains constant up to a degree of leverage and rise sharply thereafter with even increase in leverage

B
Rises constantly with increase in leverage

C
Decreases up to a certain point, remains unchanged for moderate increase in leverage and rises beyond a certain point

D
Decreases at an increasing rate with increase in leverage

E
Increase up to certain point remains constant for moderate decrease in leverage and decreases beyond a certain point.

Solution

According to the traditional approach the average cost of capital K$$_0$$ as a consequence of a behaviour of K$$_e$$ and K$$_d$$, decreases up to a certain point remains more or less unchanged for moderate increases in leverage thereafter and rises beyond a certain point.
Question 9
1 / -0

The net liquidation value of a firm is the best indicator of its financial health. This is the proposal of ____________.

A
Beaver model

B
L C Gupta model

C
Wilcox model

D
Altman's Z score model

E
None of the above

Solution

Wilcox proposed that the net liquidation value of the firm is the best indicator of its financial health. The net liquidation value can be obtained by the difference in liquidation value of a firms assets and the liquidation value of its liabilities.
Question 10
1 / -0

Investors are expected to open ____ with Depository Participants and deposit their share certificates for the purpose of converting them to the electronic format.

A
Remat Accounts

B
Demat Accounts

C
Deposit Accounts

D
Current Accounts

Solution

Investors are expected to open demat account with Depository Participants and deposit their share certificates for the purpose of converting them to the electronic format. Demat account can be defined as an account to buy and sell of listed securities in electronic form, that is, through internet. It is opened by an investor through depository participant. It reduces paper work.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Financial Markets Test - 14

Result

Financial Markets Test - 14

Score

-

Rank

-

SHARING IS CARING

Question 1

Increased cross penetration of foreign ownership.

Liberalization of regulations governing the financial markets

The development of new financial instruments

All of the above

Both (A) and (C) above

Solution

Question 2

Inward oriented strategy

Inflation control

Liberalization

Outwards oriented strategy

Export promotion strategy

Solution

Question 3

Open economy strategy

Growth oriented strategy

Inward oriented strategy

Export substitution strategy

None of the above

Solution

Question 4

Bank

Factor

Mutual fund

NBFC

Merchant Banker

Solution

Question 5

Bankrupt

Sick

Weak

Both (A) and (C) above

None of the above

Solution

Question 6

Internal rates

Exchange rates

Prices of financial assets

All of the above

Both (A) and (B) above

Solution

Question 7

Multiple Discriminant Analysis

Correlation

Joint Probability

Multiple Regression Analysis

Both (B) and (D) above

Solution

Question 8

Remains constant up to a degree of leverage and rise sharply thereafter with even increase in leverage

Rises constantly with increase in leverage

Decreases up to a certain point, remains unchanged for moderate increase in leverage and rises beyond a certain point

Decreases at an increasing rate with increase in leverage

Increase up to certain point remains constant for moderate decrease in leverage and decreases beyond a certain point.

Solution

Question 9

Beaver model

L C Gupta model

Wilcox model

Altman's Z score model

None of the above

Solution

Question 10

Remat Accounts

Demat Accounts

Deposit Accounts

Current Accounts

Solution

User

Question Analysis

My Perfomance