a period of economic contraction that is severe and last a long time
Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?
- a. Secondary market
- b. Primary market
- c. Financial markets.
- Money market
is the total money circulating at any one time in a country
Company listing shares on stock exchange for the first time
is the percentage of the civilian labor force that is unemployed
Full form of e-IPOs
- a. Electronic internet Public Offer
- b. Electronic Initial Private Offer
- c. Electronic Initial Prospectus Offer
- d. Electronic Initial Public Offer
What is the primary purpose of a hedge fund?
- - Maximizing returns for investors by employing various strategies to mitigate risk
- - Issuing government bonds
- - Managing personal savings accounts
- - Facilitating stock market transactions
set of values, ideas, attitudes, norms of behavior shared among members of an organization
What does IPO stand for in finance?
- correct - - Initial Public Offer
- correct - - Initial Public Offer
- - Initial Public Ownership
- - Initial Private Offering
- - Initial Public Offering
Profit returns received by shareholders of a business
What does the term "market anomaly" mean in finance?
- - A price or rate movement that differs from what would be expected under efficient market conditions
- - Buying and holding financial instruments for the long term
- - Selling financial instruments within the same trading day
- - Issuing government bonds
What does the term "market surveillance" mean in finance?
- - Monitoring and ensuring fair and efficient functioning of the financial markets
- - Buying and holding financial instruments for the long term
- - Selling financial instruments within the same trading day
- - Issuing government bonds
is the lowest stage of a business cycle and marks the end of a recession
What is the primary purpose of a stock exchange?
- - Facilitating the buying and selling of company shares or stocks
- - Facilitating the buying and selling of commodities
- - Issuing government bonds
- - Facilitating mergers and acquisitions
Firms that hold funds as deposits and make loans
What is a blue-chip stock?
- - A stock of a new company
- - A stock with high volatility
- - A stock of a well-established and financially sound company
- - A stock with low market capitalization
Savings, investment, and liquidity preferences
- Factors affecting demand for funds
Market where financial products like swaps and futures are traded
is characterized by a large number of businesses selling the same product at the same prices
What does the term "pump and dump" mean in finance?
- - A strategy to increase market liquidity
- - A scheme where the price of a security is artificially inflated, then sold off at a high price
- - A government bond trading strategy
- - A strategy to stabilize market prices
Market where borrowers in bond markets obtain funds
What is the purpose of a futures exchange in finance?
- - Facilitating stock market transactions
- - Regulating international trade agreements
- - Providing a platform for standardized futures contracts to be traded
- - Managing personal savings accounts
Percentage of borrowed funds that must be paid back in interest
What is the meaning of "capital markets" in finance?
- - Financial markets where long-term debt or equity securities are bought and sold
- - Markets for buying and selling commodities
- - Markets for short-term debt securities
- - Markets for foreign exchange
represents the cost of a loan and is expressed as a percent of the amount borrowed
An ideal Capital market is one
- a. Where finance is available at higher cost.
- b. Must provide insufficient information to investors.
- c. Where market operations are inconsistent.
- d. Which facilitates economic growth.
What is the purpose of a credit score in finance?
- - Facilitating stock market transactions
- - Managing personal savings accounts
- - Issuing government bonds
- - Assessing a person's creditworthiness for obtaining loans and credit
is a measure of worker's production in a specific amount of time, such as an hour, a day, or a week
the generation of children born between 1946 and 1964
Ease of converting asset into cash without affecting price
Allows consumers to purchase goods before full payment
An money market instruments issued on behalf of Central Government.
- a. Call Money
- b. Treasury Bill
- c. Commercial Paper
- d. Commercial Bill
is the general rise in prices throughout an economy
What is the role of the Depository Trust & Clearing Corporation (DTCC) in finance?
- - Regulating international trade agreements
- - Facilitating stock market transactions
- - Issuing government bonds
- - Providing clearing, settlement, and information services for equities, corporate and municipal bonds, government and mortgage-backed securities
younger members of generation Y
What is the role of a financial advisor?
- - Providing advice and guidance on financial matters, including investments, insurance, retirement, and tax planning
- - Facilitating stock market transactions
- - Issuing government bonds
- - Managing personal savings accounts
What does the term "market timing" mean in finance?
- - Attempting to predict the future movements of market prices to buy and sell securities at the most opportune times
- - Buying and holding financial instruments for the long term
- - Selling financial instruments within the same trading day
- - Issuing government bonds
15% of the population born between 1965 and 1976 also called baby bust
What is a bear market?
- - A market with a strong upward trend
- - A market with high volatility
- - A market characterized by a prolonged decline in stock prices
- - A market with low trading volumes
larger, younger and more diverse
- Generally the US population is becoming
What is the role of the International Monetary Fund (IMF) in finance?
- - Promoting international monetary cooperation and exchange rate stability, facilitating balanced trade, and providing resources to member countries
- - Regulating international trade agreements
- - Issuing government bonds
- - Managing personal savings accounts
Which market deals with the issuance of new securities to raise capital?
- - Equity market
- - Primary market
- - Secondary market
- - Money market
is a privately owned organization that serves its customers in order to earn a profit so that it can survive
is the tax spending decision made by the president and Congress
What does the term "market price" mean in finance?
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
- - The current price at which an asset or security can be bought or sold in the market
- - The total debt of a company
Sensex is the bench mark index of the NSE.
Price of money, cost of borrowing, and return for lending
What does the term "short selling" mean in finance?
- - Selling a security that the seller does not own, with the intention of buying it back later at a lower price
- - Selling a security and buying it back at the same price
- - Buying a security and selling it at a higher price
- - Exchanging a security for another security
What does the term "market correction" mean in finance?
- - A permanent decline in stock prices
- - A temporary decline in stock prices
- - A sudden increase in stock prices
- - A significant decline in stock prices following a period of sustained market growth
when developing marketing programs for new offerings, marketing may provide staff to serve as part of cross functional teams of specialist from all functional units
is a general decline in prices throughout an economy
a non governmental organization, that serves its customers but does not have profit as organizational goal
describes the ability to pay liabilities as they come due next year
Introduction of new financial services and products
the term used to identify an organizations long term course of action designed to deliver unique customer experience while achieving its goals
is a system and marketplace for buying and selling stocks
core, values, mission and organizational culture
- key elements of organizations foundation
is a policy that regulates the supply of money and interest rates by a central bank in an economy
What is the role of the Securities and Exchange Commission (SEC) in the United States?
- - Regulating and overseeing the securities industry and stock and options exchanges
- - Regulating the Federal Reserve
- - Issuing government bonds
- - Managing international trade agreements
the set of values, ideas and attitudes that are learned and shared among members of a group
Company issuing shares for the first time
What is the main function of an investment bank?
- - Managing personal savings accounts
- - Facilitating corporate finance, mergers, and acquisitions
- - Issuing government bonds
- - Setting interest rates for loans
Various products with different risk, return, and liquidity
is a market structure with one business that has completely control of a market's entire supply of goods or services
is how a market is organized based on the number of businesses competing for sales in an industry
What does the term "default" mean in finance?
- - Failure to fulfill a financial obligation or repayment of a debt
- - A successful financial investment
- - The total value of
- assets in a portfolio
- - The percentage of profits distributed to shareholders
Interest rate banks pay to borrow funds from other banks
Relating to the total amount of money in a country
What is the role of the Consumer Financial Protection Bureau (CFPB) in the United States?
- - Regulating international trade agreements
- - Protecting consumers in the financial sector by ensuring fair and transparent practices
- - Issuing government bonds
- - Managing personal savings accounts
is a period of significant decline in the total output, income, employment, and trade in an economy
What is the meaning of "market order" in finance?
- - An order to buy or sell a security immediately at the current market price
- - An order to buy or sell a security at a specific future date
- - An order to buy a security at a lower price than the current market price
- - An order to sell a security at a higher price than the current market price
western and southern states
- a major regional shift in the US population toward
a sudden drop in consumer income would be this environmental factor
What does the term "savings account" mean in finance?
- - A deposit account held at a financial institution that provides principal security and a modest interest rate
- - A type of government bond
- - A type of stock
- - A type of option
What is the role of a financial planner?
- - Managing personal savings accounts
- - Creating financial plans and advising clients on investments, retirement, and other financial goals
- - Facilitating stock market transactions
- - Issuing government bonds
What is the role of a stock index in finance?
- - Representing the overall performance of a specific group of stocks to give an indication of market trends
- - Facilitating stock market transactions
- - Issuing government bonds
- - Managing personal savings accounts
What does the term "401(k)" represent in finance?
- - The stock market index for technology companies
- - A tax-advantaged retirement savings plan offered by employers in the United States
- - A government bond
- - A type of mutual fund
What does the term "margin call" mean in finance?
- - A demand from a broker for additional funds or securities to cover a potential loss on a position
- - Buying and holding financial instruments for the long term
- - Selling financial instruments within the same trading day
- - Issuing government bonds
What does the term "p/e ratio" stand for in finance?
- - Portfolio to Equity Ratio
- - Portfolio Earnings Ratio
- - Price to Earnings Ratio
- - Profit to Earnings Ratio
is a measure of the average change in the prices paid by consumers for typical consumer goods and services over time
- consumer price index (CPI)
What is the role of a financial analyst?
- - Analyzing financial data and trends to provide investment advice
- - Managing personal savings accounts
- - Facilitating stock market transactions
- - Issuing government bonds
the 72 million americans born between 1977 and 1994, also called echo boom or boomlets
What is the meaning of the term "market capitalization"?
- - The total value of a company's outstanding shares of stock, calculated by multiplying the stock price by the number of shares
- - The net profit of a company
- - The total debt of a company
- - The dividends paid by a company
statement of financial position , provides a snapshot of a companies position at a certain time, investors use it to understand liquidity and solvency
What does the term "blue sky laws" mean in finance?
- - State regulations that aim to protect investors from securities fraud by requiring sellers to register their offerings and provide financial details
- - Federal regulations governing stock market transactions
- - International trade agreements for commodity trading
- - Rules governing hedge funds
Markets that bring together buyers and sellers of capital
Financial market is a market for creation and exchange of ............................
What does the term "market maker" mean in finance?
- - A firm or individual that provides liquidity to a market by buying or selling securities, typically acting as a middleman between buyers and sellers
- - Buying and holding financial instruments for the long term
- - Selling financial instruments within the same trading day
- - Issuing government bonds
What is the role of a custodian bank in finance?
- - Regulating international trade agreements
- - Safeguarding financial assets and executing transactions on behalf of institutional clients
- - Issuing government bonds
- - Managing personal savings accounts
Financial instrument of debt finance issued by entities
Prices that fluctuate based on supply and demand
Funds raised by selling off part of assets
A Bullish phase refers to a period of optimism
this generation is known as savvy and demanding group of consumers, who feel personally responsible for making a difference in the world, they also have extraordinary optimism about their potential for fame and fortune
What is the purpose of a stop order in finance?
- - Facilitating stock market transactions
- - Managing personal savings accounts
- - Triggering a market order to buy or sell an asset when its price reaches a specified level
- - Issuing government bonds
.Dematerialization is the process of holding securities in
- a) Paper mode
- b) Electronic mode
- b) Physical form
- d) Wallet
Role and functions of current institutions
- Regulations of financial markets
Instruments deals in capital market are
- a) call money
- b) Commercial Bill
- c) Zero Coupon Bard
- d) Equity Shares
Actions taken by central bank to manage money supply
What does the term "capital gain" mean in finance?
- - The interest earned on investments
- - The total value of assets in a portfolio
- - The profit made from the sale of an asset, like stocks or real estate, at a higher price than its purchase price
- - The total debt of a company
What is the purpose of a trading halt in finance?
- - Temporarily stopping trading in a security, usually due to significant news or events affecting the security
- - Facilitating stock market transactions
- - Regulating international trade agreements
- - Managing personal savings accounts
What is the meaning of the term "bonds" in finance?
- - Ownership shares of a company
- - Debt securities issued by governments or corporations
- - Options to buy a stock at a certain price
- - Commodities traded on the futures market
What does the term "market saturation" mean in finance?
- - The division of a market into smaller, distinct groups based on similar characteristics
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
- - A point where demand for a product or service is satisfied, and further sales do not yield significant revenue growth
is focusing on the production of specific goods so that more products can be produced with the same amount of labor
What does the term "capital adequacy" mean in finance?
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
- - Having enough capital to cover potential losses and meet regulatory requirements
- - The total debt of a company
marks the end of expansion and is the highest point in the business cycle
the total amount of money made in a year by one person
What does the term "futures contract" mean in finance?
- - An agreement to buy or sell an asset at a specified future date for a price agreed upon today
- - A government bond
- - A type of stock
- - A type of option
the term that links employees, shareholders, board of directors, suppliers, distributors, creditors, local communities, customers of an organization
What is the role of a financial regulator?
- - Overseeing and enforcing rules and regulations in the financial industry to ensure fair and transparent practices
- - Facilitating stock market transactions
- - Issuing government bonds
- - Managing personal savings accounts
Which financial instrument represents a debt owed by the issuer to the holder?
- - Bond
- - Stock
- - Derivative
- - Option
is the rate of change in prices calculated on a monthly or yearly basis
description of population according to selected characteristics such as age, gender, ethnicity
is a market structure with a small number of businesses selling the same or similar products
Variables that measure total economic activity for a nation
What does the term "market manipulation" mean in finance?
- - Illegally influencing the prices of stocks or commodities to create a false impression of market activity
- - Buying and holding financial instruments for the long term
- - Selling financial instruments within the same trading day
- - Issuing government bonds
increasing markets in China and India
What does the term "dividend" mean in finance?
- - The interest earned on investments
- - The total value of assets in a portfolio
- - A portion of a company's profits distributed to shareholders
- - The total debt of a company
Repayment of money owed with interest
in recent years many large firms have changed the title of the head marketing from vice president of marketing to this
Discourage consumption, investment, and trade
- Effects of high interest rates
What does the term "circuit breaker" mean in finance?
- - A mechanism that temporarily halts trading on an exchange to prevent significant market declines
- - A type of government bond
- - A type of stock
- - A type of option
is when a lower price is the main reason for customers to buy from one business over another
In the context of finance, what does "liquidity" refer to?
- - The ease with which an asset can be bought or sold without significantly affecting its price
- - The total value of assets a company holds
- - The amount of debt a company has
- - The stability of financial markets
Financial asset providing ownership in a business
What does ROI stand for in finance?
- - Rightful Owner Investment
- - Return on Investment
- - Reverse Outstanding Interest
- - Return of Income
What does the term "market sentiment" mean in finance?
- - The total value of assets in a portfolio
- - The overall attitude or feeling of investors towards a market, often influencing buying and selling decisions
- - The percentage of profits distributed to shareholders
- - The total debt of a company
If a company is already in liquidity crunch and flotation costs of the issue would be high. What kind of instrument will be appoints for the money market.
- a. Commercial Bills
- b. Commercial paper
- c. Treasury Bill
- d. COD
What is the role of a stockbroker in the financial market?
- - Facilitating buying and selling of securities on behalf of clients
- - Setting interest rates for loans
- - Auditing financial statements
- - Managing government budgets
What does the term "market risk" mean in finance?
- - The risk of losses due to adverse movements in market prices or factors affecting the entire market
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
- - The total debt of a company
are the fundamental passionate and enduring principals, that guide its conduct over time
all of the people in a nation who are capable of working and want to work are called
Registration of collecting investing schemes and Mutual funds is a Regulatory function of SEBI
The new issues market is also known as
- a. Money market
- b. Primary market
- c. Stock exchange
- d. Secondary market
What is the role of a venture capitalist?
- - Issuing government bonds
- - Facilitating stock market transactions
- - Providing capital to startups and small businesses in exchange for ownership equity or convertible debt
- - Managing personal savings accounts
Money market is the source of ............................ finance
What is the purpose of a financial derivative?
- - Managing risk and providing a tool for speculation
- - Issuing government bonds
- - Facilitating stock market transactions
- - Managing personal savings accounts
What is the purpose of a central clearinghouse in finance?
- - Facilitating and guaranteeing trades, reducing counterparty risk in financial markets
- - Regulating international trade agreements
- - Issuing government bonds
- - Managing personal savings accounts
What is the role of a financial ombudsman service?
- - Regulating international trade agreements
- - Resolving disputes between financial institutions and their customers
- - Issuing government bonds
- - Managing personal savings accounts
is a certificate of debt issued by an organization or government
is the market value of all final products produced in a country during a specific time period
- gross domestic product (GDP)
products that have high market share and high market growth rate
by understanding its core values an organization can take steps to define their mission statement, a declaration of organizations function in society, often identifying its customers, markets, products and technologies
Brings together people with temporary shortages and surpluses
is a competitive advantage based on factors other than price
What is the role of the World Bank in finance?
- - Providing financial and technical assistance to developing countries for development projects (e.g., infrastructure, healthcare)
- - Regulating international trade agreements
- - Issuing government bonds
- - Managing personal savings accounts
products that have low market share and low market growth rate
In finance, what does the acronym ETF stand for?
- - Equities Trading Fund
- - Equity Transfer Fee
- - Exchange-Traded Fund
- - Equity Transfer Form
Market where financial instruments are issued to raise money
What is the meaning of "market depth" in finance?
- - The ability of a market to sustain relatively large market orders without impacting the price
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
- - The total debt of a company
is the central bank of the United States, created by Congress in 1913
Treasury bill is also known as....................... bond.
What is the purpose of a stock split?
- - To increase the number of shares outstanding and lower the price per share
- - To decrease the number of shares outstanding and increase the price per share
- - To merge with another company
- - To issue government bonds
promote fair trade and competition among business
is a period when the economy is growing and the GDP is rising
alternating periods of expansion and contraction in the economy
What is the role of the Financial Industry Regulatory Authority (FINRA) in the United States?
- - Overseeing brokerage firms and their registered representatives to ensure fair and ethical practices
- - Regulating international trade agreements
- - Issuing government bonds
- - Managing personal savings accounts
Price of money, cost of borrowing and return for lending
What does the term "bull market" mean?
- - A market with declining stock prices
- - A market with a strong upward trend and rising investor confidence
- - A market with high volatility
- - A market with low trading volumes
What is the role of a credit union in finance?
- - Providing financial services to a specific group of members, often with a focus on community
- - Issuing government bonds
- - Facilitating stock market transactions
- - Managing international trade agreements
when two or more businesses work together to remove their competition, set prices, and control distribution
What is the role of a credit rating agency in finance?
- - Assessing the creditworthiness of borrowers and assigning credit ratings
- - Facilitating stock market transactions
- - Managing personal savings accounts
- - Issuing government bonds
Rate paid on call money is known as.................... rate.
What is the purpose of a credit default swap (CDS) in finance?
- - Providing insurance against the default of a borrower or debt issuer
- - Regulating international trade agreements
- - Issuing government bonds
- - Managing personal savings accounts
- **Question 73:
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What is the purpose of a credit rating in
- - Facilitating stock market transactions
- - Managing personal savings accounts
- - Issuing government bonds
- - Assessing the creditworthiness of individuals or entities to determine their ability to repay debt
Maturity period to call money is
- a. 1 to 15 days
- b. 15 to 90 days
- c. 15 to 1 years
- d. 1 to 30 days
occurs when two or more businesses in an industry agree to sell the same good or service at a set price
At present only two depositories are registered with SEBI .
The forces of demand and supply help to establish a.................. for the commodity as service in the financial market.
What does the term "market efficiency" mean in finance?
- - The total value of assets in a portfolio
- - The degree to which stock prices reflect all available information and adjust to new information quickly and accurately
- - The percentage of profits distributed to shareholders
- - The total debt of a company
What does the term "market volatility" refer to in finance?
- - The total value of assets in the market
- - The speed at which markets change
- - The ease of buying or selling in the market
- - The degree of variation in trading price series over time
What is the concept of "diversification" in finance?
- - The process of converting assets into cash
- - Spreading investments across various assets to reduce risk
- - Merging different financial institutions
- - Calculating the net worth of a company
Profits made by investors selling assets above purchase price
Stimulate consumption, investment, and trade
- Effects of low interest rates
Long-term loans used to buy property
What does the term "initial margin" mean in finance?
- - The initial investment made in the stock market
- - The minimum amount of funds required by a broker from an investor to open a margin account
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
Debt used by businesses to invest in operations
Total value of finished goods and services within a country
What does the term "bullion" refer to in finance?
- - Precious metals like gold or silver in bulk form, typically used for trading and investment
- - A type of government bond
- - A type of stock
- - A financial contract
Which term refers to the overall behavior of a stock market?
- - Dividends
- - Assets
- - Market sentiment
- - Liabilities
Range of interest rates set by central bank
- Policy interest rate corridor
is the activities involved in buying and selling goods on a large scale, such as state-wide or nation-wide commerce
Bonds issued to investors to raise money for the issuer
What is the function of a central bank in a country's financial system?
- - Regulating money supply, controlling interest rates, and ensuring financial stability
- - Managing personal savings accounts
- - Facilitating stock market transactions
- - Issuing government bonds
Channels through which interest rate changes impact the economy
Treasury bill is issued by
- (a) development financial institution
- (b) commercial bank
- ( c ) selected individuals
- ( d ) reserve bank of India
What is the role of the Federal Reserve in the United States?
- - Regulating the country's money supply and interest rates
- - Regulating the stock market
- - Issuing government bonds
- - Overseeing international trade agreements
What does "NASDAQ" stand for in the context of financial markets?
- - National Association of Securities Dealers Automated Quotations
- - National Association of Securities Dealers Automated Quotation System
- - New Automated Stock and Quotation
- - North American Stock Automated Quotes
gross, disposable, discretionary
- Components of consumer income
What is the role of an investment portfolio in finance?
- - A collection of various financial assets owned by an individual or institution
- - Facilitating stock market transactions
- - Issuing government bonds
- - Managing personal savings accounts
income used to by luxury items
What is the meaning of "market segmentation" in finance?
- - The division of a market into smaller, distinct groups based on similar characteristics
- - The total value of assets in a portfolio
- - The percentage of profits distributed to shareholders
- - The division of financial markets into different submarkets based on the types of financial instruments being traded
Buying assets with intention of reselling for higher price
What does the term "hedging" mean in finance?
- - Using financial instruments to offset potential losses from another investment
- - Investing in high-risk assets
- - Facilitating stock market transactions
- - Issuing government bonds
What does the term "commodities" refer to in finance?
- - Raw materials or primary agricultural products that can be bought and sold, such as gold or oil
- - Government bonds
- - Stocks of well-established companies
- - Options traded on the stock market
the reward to a business firm for the risk it undertakes in marketing its offerings
is the amount a borrower pays to a lender for a loan
is a large number of businesses selling similar, but not the same, products and at different prices (also known as imperfect competition)
What is the primary purpose of a financial market?
- - Facilitating the exchange of goods and services
- - Facilitating the exchange of financial assets
- - Regulating government policies
- - Enhancing international diplomacy
Individuals, businesses, and governments who borrow funds
What does the term "day trading" mean in finance?
- - Buying and selling financial instruments within the same trading day to profit from short-term price movements
- - Buying and holding financial instruments for the long term
- - Exchanging financial instruments with other traders
- - Issuing government bonds
statement of an accomplishment of a task to be achieved often by a specific time
What is the meaning of "interest rate" in finance?
- - The percentage of profits distributed to shareholders
- - The percentage charged or paid for the use of money, typically expressed as an annual percentage rate
- - The total value of assets in a portfolio
- - The total debt of a company
Net balance of cash moving into and out of a business
companies ability to pay liabilities
What is the key function of a futures market?
- - To facilitate the buying and selling of contracts for future delivery of commodities or financial instruments
- - To manage personal savings accounts
- - To issue government bonds
- - To regulate government policies
The maturity for money market instruments for a period of ..................................