Financial Markets Test

Result

Financial Markets Test - 16

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Weekly Quiz Competition

Question 1
1 / -0

We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, please consider the following.
Which statement is more suitable for this statement ?

A
FDI brings in the latest technology

B
FDI does not involve large outflow

C
FDI improves efficiency of the economy

D
None of the above

Solution

We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, FDI brings in latest technology is the more suitable for this statement. Foreign Direct Investment plays a crucial role in growth dynamics of an economy.It serves the interest of the foreign investors as well as look after the long-term financial interest of the investors.
Question 2
1 / -0

________ registered brokers have to be appointed for the purpose of accepting applications and placing orders with the company.

A
OTCEI

B
NSE

C
SEBI

D
Both (b) and (c)
Solution
- A company proposing to issue capital to the public through the online system of the stock exchange has to enter into an agreement with the stock exchange. This is called an Initial Public Offer (IPO).
- SEBI registered brokers have to be appointed for the purpose of accepting applications and placing orders with the company.
Question 3
1 / -0

All of the following are essentials of a valid acceptance of an instrument, except _____.

A
must be conditional.

B
signed by drawee or his agent.

C
accepted must appear on the holder.

D
accepted of valid Acceptance.
Question 4
1 / -0

According to Negotiable Act, $$1881$$, which of the following refers to a promissory note, bill of exchange or cheque payable either to order or to bearer?

A
Agreement

B
Contract

C
Negotiable Instrument

D
Act

Solution

According to Negotiable Act, 1881 a “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.
A negotiable instrument may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees.
Question 5
1 / -0

A person is considered the holder of Negotiable Instruments if _________.

A
his name appears on an instrument

B
he is in possession of the bearer instrument

C
he is entitled to receive or recover the amount due on the instrument

D
all of the above.
Solution
According to the Negotiable Instruments Act, 1881,
The “holder” of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction.
An individual thus becomes the holder of the instrument if
his name appear on an instrument
he is possession of bearer instrument.
he is entitled to receive or recover the amount due on the instrument
Question 6
1 / -0

In which year did India register a 5-year low growth in FDI?

A
2017-18

B
2013-15

C
2015-17

D
2010-12

Solution

Foreign direct investment (FDI) in India is petering out with the inflows growth rate recording a five-year low of 3 per cent at USD 44.85 billion in 2017-18 according to the latest data of the Department of Industrial Policy and Promotion (DIPP).
According to experts, it is critical to revive investments in home country and further improve ease of doing business in the country to attract foreign investors.
Question 7
1 / -0

The __________ market is also known as the new issues market, which deals with new securities being issued for the first time.

A
capital

B
money

C
primary

D
secondary

Solution

The primary market is also known as the new issues market, which deals with new securities being issued for the first time. Primary market directly contributes in capital formation because in primary market company goes directly to investors and utilize the funds for investment purpose. Primary market does not include finance in the form of loan from financial institutions.
Question 8
1 / -0

'If you want to gauge economic status of a country, analyse the status of its capital market'. This statement is pertaining to ________.

A
monetary policy

B
capital policy

C
stock exchange

D
None of the above

Solution

'If you want to gauge economic status of a country, analyze the status of its capital market'. This statement is pertaining to stock exchange.Stock exchange has a provision to list the securities for trading. This is a service given to corporate sector. Stock exchange leads to capital formation as prices of securities with a variable return continue to increase over a long term Stock exchange provides services like, wide dissemination of prices of securities.
Question 9
1 / -0

The strategy used to minimize the risk and maximize the return on an investment is called ____________.

A
hedge

B
index

C
bid

D
offer

Solution

A hedge is an investment to reduce the risk of adverse price movements. A hedge is the strategy used to minimize the risk and maximize the return on an investment. It consists of taking an offsetting position in a related security.
Question 10
1 / -0

Which strategy involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels?

A
Product Development

B
Market Penetration

C
Diversification

D
Market Development

Solution

Product development strategy involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels. It helps in the process of expansion of the existing business. Product development strategy can be defined as a process of bringing a new innovation to consumers from concept to testing through distribution.

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Re-Attempt Weekly Quiz Competition

Financial Markets Test - 16

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Financial Markets Test - 16

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SHARING IS CARING

Question 1

FDI brings in the latest technology

FDI does not involve large outflow

FDI improves efficiency of the economy

None of the above

Solution

Question 2

OTCEI

NSE

SEBI

Both (b) and (c)

Solution

Question 3

must be conditional.

signed by drawee or his agent.

accepted must appear on the holder.

accepted of valid Acceptance.

Question 4

Agreement

Contract

Negotiable Instrument

Act

Solution

Question 5

his name appears on an instrument

he is in possession of the bearer instrument

he is entitled to receive or recover the amount due on the instrument

all of the above.

Solution

Question 6

2017-18

2013-15

2015-17

2010-12

Solution

Question 7

capital

money

primary

secondary

Solution

Question 8

monetary policy

capital policy

stock exchange

None of the above

Solution

Question 9

hedge

index

bid

offer

Solution

Question 10

Product Development

Market Penetration

Diversification

Market Development

Solution

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