Banking And Financial Institutions - Study Mode

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[#721] Which of the following organisation promotes trade?

(A) STC

(B) MMTC

(C) ECGC

(D) All of these

Correct Answer

(D) All of these

[#722] Which of the following are the different functions that are performed by the financial markets? 1. Determination of the prices where financial markets help in price discovery of various financial instruments. 2. Mobilization of the funds 3. Providing an opportunity to different investors to buy or sell their respective financial instrument at the fair value that is prevailing in market. 4. Providing the various types of information to traders that help in decision making. 5. The sharing of the risk with investors.

(A) 2, 3 and 5

(B) 1, 2 and 3

(C) 3 and 4

(D) 1, 2, 3, 4 and 5

Correct Answer

(D) 1, 2, 3, 4 and 5

[#723] Match the items of List-I with those of List-II and select the correct option: List-I List-II a. High levered fund 1. Market risk b. Increase in bank rate 2. Purchasing power risk c. Inflation 3. Financial risk d. Political instability 4. Interest rate risk

(A) a-3, b-1, c-2, d-4

(B) a-1, b-3, c-4, d-2

(C) a-3, b-4, c-2, d-1

(D) a-2, b-3, c-1, d-4

Correct Answer

(C) a-3, b-4, c-2, d-1

[#724] Bank rate is also known as

(A) discount rate

(B) penalty rate

(C) interest rate

(D) None of these

Correct Answer

(A) discount rate

[#725] Which of the following is the risk of default on a debt that may arise from a borrower failing to make required payments?

(A) Market Risk

(B) Credit Risk

(C) Operational Risk

(D) Forex Risk

Correct Answer

(A) Market Risk