01. The Unit Trust of India came into existence in 1964
02. Infrastructure bonds are termed as financial assets
03. National savings certificates, Indra Vikas Patras, Kisan Vikas Patras
are issued by Post office
04. Capital market is a market which deals with gilt edge securities
05. Regional Rural Banks fall within the supervisory purview of Reserve
Bank of India
06. IRDA is called as Insurance Regulatory Development Authority
07. IRDA with its headquarters at Hyderabad is the regulatory authority
for all insurance companies in India including the Life Insurance Corporation
of India
08. Mutual Funds fall within the supervisory purview of SEBI
09. SEBI means – Securities and Exchange Board of India
10. Export-Import Bank do not fall within the category of development
banks
11. Industrial Development Bank of India, Small Industries Development
Bank of India and Industrial Investment Bank of India, State Finance
Corporation are called as developments
12. The major financial instruments of corporate sector are shares,
debentures, public deposits and loan from institutions
13. Financial institutions promote savings, mobilize savings and allocate
savings among different users
14. The following are called primary securities – bills, bonds, shares and
book debts
15. New currency is not an example of primary security
16. Indian Financial System comprises of scheduled commercial banks, non
banking financial institutions, urban cooperative banks
17. The Bombay Stock Exchange was made functional as early as 1870
18. The Unit Trust of India come into existence in 1964
19. In July 1969, 14 commercial banks were nationalized
20. The government share in any nationalized bank is 51% or more
21. New Private banks are being given licences since 1993
22. The gilt edged market refers to the market for government securities
and semi government securities
23. First share market in India was established in Mumbai
24. Securities that have an original maturity that is greater than one
year traded in capital markets
25. The best known capital market securities are stocks and bonds
26. Securities that have an original maturity that is greater than one
year are not traded in money markets
27. Stocks and bonds are not money market securities
28. The primary issuers of capital market securities include – the central
and local governments and corporations
29. The characteristic of a capital instrument are – liquidity,
marketability, long maturity and liquidity premium
30. Treasury bill, negotiable certificate of deposit and commercial paper
are capital market instruments
31. Treasury bills are financial instruments initially sold by the
government to raise funds
32. Commercial Paper is a short term security issued by large and well
known companies to raise funds
33. A corporate convertible bond gives the holder the right to exchange
the bond for a specified number of the company’s common shares
34. Treasury bond is not a money market instrument
35. Money lent for 15 days or more in inter bank market is called as term
money
36. Money lent for one day is called as call money
37. Special interest rate on a fixed maturity security fixed at the time
of issue is called as coupon rate
38. Lending of scheduled commercial banks, on a fortnightly average basis,
should not exceed 25 percent of their capital fund
39. A short term credit investment created by a non financial firm and guaranteed
by a bank to make payment is called as bankers acceptance market
40. Money market securities are short term in nature having low risk and
very liquid
41. Money market instruments are characterized by the following namely –
they are usually sold in large denominations, have low default risk and mature
in one year or less
42. In the term repo, the term of the loan is greater than 30 days
43. All commercial banks do not deal for their customers in the secondary
market
44. Money markets are used extensively by businesses both to warehouse
surplus funds and to raise short term funds
45. The single most influential participant in the US money market is the
US treasury department
46. The money market in India consists of two sectors namely the organized
and the unorganized sectors.
47. Indigenous banks do not fall under unorganized sector
48. Money lent for one day in the money market is known as call money
49. Money lent for more than one day but less than 15 days in the money
market is known as notice money
50. Money lent for 15 days or more in inter-bank market is called as term
money
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