• 1. 
    In the stock exchange, the bidding process flows from the demand and supply underlying each security.

  • True
  • False
  • 2. 
    A negotiable certificate evidencing indebtedness.

  • True
  • False
  • 3. 
    The buyer of these bonds receives only one payment, at the maturity of the bond.

  • zero-coupon bond
  • convertible bond
  • treasury bills
  • 4. 
    It is an instrument that entitles the holder to a proportionate equitable interest in the securities held by issuing firm or an entitlement to a pro rata share in a pledged revenue stream

  • Eurocommercial papers
  • Certificate of Participation
  • Loans
  • Certificates
  • 5. 
    These are the borrowers or deficit-units, who issue securities to raise funds for their business activities.

  • issuers
  • investors
  • intermediaries
  • 6. 
    Owners of these kinds of shares enjoy priority over the equity shareholders in payment of surplus.

  • participating preference shares
  • preference shares
  • cumulative preference shares
  • 7. 
    Have a fixed number of shares and are traded among investors on an exchange.

  • Close-end mutual funds
  • Mutual fund shares
  • Premium
  • Growth funds
  • 8. 
    Money added into a bank account.

  • withdraw
  • deposit
  • cash
  • cheque
  • 9. 
    These are the agents who match the needs of users and suppliers of funds for a commission.

  • issuers
  • investors
  • intermediaries
  • 10. 
    This is the market where securities are created.

  • primary market
  • secondary market
  • stock market
  • 11. 
    The holders of such shares are members of the company and have voting rights.

  • equity shares
  • rights shares
  • bonus shares
  • 12. 
    Capital Market is a market for

  • long term assets
  • short term assets
  • Medium term assets
  • none of the above
  • 13. 
    In the primary market, investors trade securities without the involvement of the issuing companies.

  • True
  • False
  • 14. 
    A schedule of how much consumers are willing and able to buy at a price

  • Needs
  • Wants
  • Supply
  • Demand
  • 15. 
    These are investment funds that pool funds from numerous investors and invest in money market instruments offered by investment companies.

  • Capital market mutual funds
  • Growth funds
  • Money market mutual funds
  • Balanced funds
  • 16. 
    Makes goods or provides services

  • Demand
  • Producer
  • Consumer
  • Wants
  • 17. 
    It is a receipt issued by a commercial bank for the deposit of money.

  • Negotiable certificate
  • Certificate of deposit
  • Confirmation letter
  • Time draft
  • 18. 
    Actions that are done for someone else

  • Needs
  • Wants
  • Services
  • Profit
  • 19. 
    A stock exchange permits the security prices to be determined by the competitive forces.

  • True
  • False
  • 20. 
    It is bank-issued time deposit that specifies an interest rate and maturity date and is negotiable.

  • Banker's acceptance
  • Time draft
  • Commercial letter
  • Negotiable certificate of deposit
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