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The structure that is available in an economy to mobilize the capital from various surplus sectors of the economy and allocate and distribute the same to the various needy sectors is known as----------

• A.

Economic Environment

• B.

Financial Environment

• C.

Financial System

• D.

Financial Market

• E.

None

• 2.

The Active role played by the financial system in India helps the transformation of Savings into Investment & Consumption.

• 3.

The transformation of savings into investment and consumption is facilitated by the active role played by the financial system. True or false.

• 4.

Banks, Financial Institution mutual funds etc are examples of Financial Intermediaries.

• 5.

Financial market include Money Market, Debt Market, Forex Market and----

• 6.

Treasury bills are money market instrument.

• A.

True

• B.

False

• 7.

Certificate of Deposit is a money market instrument.

• A.

True

• B.

False

• 8.

Commercial paper is a money market instrument.

• A.

True

• B.

False

• 9.

Commercial paper is a money market instrument.

• A.

True

• B.

False

• 10.

Call money and Notice money are Money market instruments.

• A.

True

• B.

False

• 11.

G Securities issued by Central and State Government are instruments in Debt Market.

• A.

True

• B.

False

• 12.

Bonds issued by Financial Institution are instruments in the Debt markets.

• A.

True

• B.

False

• 13.

Registrars maintain a Register of share and debenture holders and process share and debenture allocation when issues are subscribed. Registers need approval from the Regulator. SEBI is the regulator.

• A.

True

• B.

False

• 14.

Bonds issued by Financial Institution are instruments in the Debt markets.

• A.

True

• B.

False

• 15.

Reserve Bank of India has two distinct roles one is Monetary Control including controlling inflation and other is -----------

• A.

True

• B.

False

• 16.

Reserve Bank of India is exercising Monetary Controlthrough 1) cashReserve Ratio, 2) Statutory Liquidity Ratio 3) REPO rate andBank Rate

• A.

True

• B.

False

• 17.

Central Bank (RBI) is the lender of the last resort to other Banks.

• A.

True

• B.

False

• 18.

It will not is responsible for ensuring an efficient payment & settlement system.

• A.

True

• B.

False

• 19.

Reserve Bank of India has supervision over 1) Commercial Bank 2) NBFC 3) Primary dealers 4) Financial institution.

• A.

True

• B.

False

• 20.

Capital Market Regulator in India is SEBI.

• A.

True:

• B.

False

• 21.

The standard rate at which RBI is prepared to buy or re discount bills of exchange or other eligible commercial papers from Banks is known as Bank Rate

• A.

True

• B.

False

• 22.

Central Bank (RBI) is the lender of the last resort to other Banks.

• A.

True

• B.

False

• 23.

Reserve Bank of India is Banker to Government.

• A.

True

• B.

False

• 24.

Reserve Bank of India is Banker to Government.

• A.

True

• B.

False

• 25.

No Bank can hold shares in a company as pledge or mortgage in excess of the limit of 30% of the paid-up capital of that company or 30% of the Bank's paid-up capital and reserve whichever is less. This is covered in