CUET Business Studies MCQs Unit X Financial Markets

Question: Primary and Secondary Markets

a. Compete with each other

b. Complement each other

c. Function independently

d. Control each other

Answer: B

Question: Treasury Bills are basically

a. An instrument to borrow short term funds

b. An instrument to borrow long term funds

c. An instrument of capital market

d. None of the above.

Answer: A

Question: Which of the following is the method of collecting capital?

a. Public offer

b. Offer for sale

c. Private Placement

d. All of the above

Answer: C

Question: Total number of stock exchanges in India are

a. 25

b. 21

c. 22

d. 23

Answer: A

Question: Educating the investor is the ____________ function of SEBI.

a. Protective

b. Regulatory

c. Both the a and b

d. Developmental.

Answer: A

Question:  Which of the following takes advantage of the internal trading?

a. All shareholders

b. All Debenture holders

c. People having secret information of the company

d. All the employees

Answer: C

Question: The settlement cycle in NSE is

a. T+5

b. T+3

c. T+2

d. T+1

Answer: C

Question: Certain instruments of money market is short self-liquidating & used to finance credit sales name the instruments:

a. Call Money

b. Certificate of Deposit

c. Commercial Bill

d. Treasury Bill

Answer: C

Question: National Stock Exchange in India was recognized as stock exchange in the year.

a. 1992

b. 1993

c. 1994

d. 1995

Answer: B

Question: Which of the following falls in the category of Zero Coupon Bond?

a. Treasury Bill

b. Commercial Paper

c. Certificate of Deposit

d. Commercial Bill

Answer: A

Question: Point of view lays stress upon customer’s welfare.

(a) Production

(b) Product

(c) Marketing

(d) Social Marketing

Answer: D

Question: Assertion (A) Selling is the heart of marketing.
Reason (R) Marketing is wider in scope than selling which includes selling as its essential part.
Alternatives

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

(c) Assertion (A) is true, but Reason (R) is false

(d) Assertion (A) is false, but Reason (R) is true

Answer: A

Question: ……………. covers all the activities required to physically move the goods from manufacturers to customers.

(a) Place mix

(b) Price mix

(c) Product mix

(d) Promotion mix

Answer: A

Question: Which of the following is a sales promotion activity?

(a) Rebate

(b) Discount

(c) Product Combination

(d) All the above

Answer: D

Question:  Under which philosophy of marketing, efforts are made to bring down the cost of production to the minimum?

(a) Production concept

(b) Product concept

(c) Marketing concept

(d) Selling concept

Answer: A

Question:  ‘Products are not purchased but sold’, with which point of view is this statement associated?

(a) Product

(b) Sale

(c) Production

(d) Marketing

Answer: B

Question:  Marketing mix does not include

(a) Product

(b) Place

(c) Promotion

(d) People

Answer: D

Question:  Mansi, a shoe manufacturer for school students, decided to maximize profits by producing and distributing shoes on a large-scale and thus reducing the average cost of production. Identify the marketing management philosophy adopted by Mansi.

(a) Product concept

(b) Production concept

(c) Selling concept

(d) Marketing concept

Answer: B

Question: Nitin is very particular to get his hair cut from Cutting Zone saloon of East Delhi.
Which type of service is it?

(a) Speciality service

(b) General service

(c) Common service

(d) All of these

Answer: A

Question: Assertion (A) Low initial price is regarded as the principal means for entering into mass market for some new products.
Reason (R) Firms generally enter into production of new products with having excess capacity of the plant.
Alternatives

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

(c) Assertion (A) is true, but Reason (R) is false

(d) Assertion (A) is false, but Reason (R) is true

Answer: A

Question: Sales promotion is helpful in making effective.

(a) Advertisement

(b) Personal selling

(c) Both the above

(d) Publicity

Answer: C

Question: Under which concept the companies push for the betterment of the quality of their products in their efforts for marketing?

(a) Production concept

(b) Product concept

(c) Marketing concept

(d) Selling concept

Answer: B

Question:  Which of the following is the function of marketing?

(a) Promotion

(b) Physical Distribution

(c) Transport

(d) All the above

Answer: D

Question:  Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District forum under the Consumer Protection Act and got the relief. Identify the important aspect neglected by the marketer in the above case.

(a) Packaging

(b) Branding

(c) labelling

(d) Pricing

Answer: C

Question: If a manufacturer achieves a break through by developing a car engine, which can run on both petrol and diesel, and this news is covered by television or radio or newspaper in the form of news item, it would be termed as

(a) Publicity

(b) Advertising

(c) Sales promotion

(d) Personal selling

Answer: A

Question: PepsiCo offers ` 5 to the customer on return of empty bottle. Identify the technique used by PepsiCo.

(a) Discount

(b) Refund

(c) Quantity gift

(d) Usable benefit

Answer: B

Question:  Customer’s satisfaction alone can ensure success. Which marketing concept holds this view?

(a) Production concept

(b) Product concept

(c) Marketing concept

(d) Selling concept

Answer: C

Question:  The collection of utilities is known as .

(a) Purchaser

(b) Seller

(c) Product

(d) Market

Answer: C

Question:  Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design. Identify the marketing management philosophy adopted by Nisha.

(a) Product concept

(b) Production concept.

(c) Selling concept

(d) Marketing concept

Answer: A

Question: Identify the process of classification of products into different groups, on the basis of some of its important characteristics.

(a) Standardisation

(b) Grading

(c) Product mix

(d) Grouping

Answer: B

Question: Develop relationship.

(a) Publicity

(b) Advertisement

(c) Sales Promotion

(d) Public relation

Answer: D

Question:  Which of the following is the example of Dunlop?

(a) Branding

(b) Brand

(c) Brand Name

(d) Brand Mark

Answer: C

Question:  Mr. Rajiv, the sales executive of ABC Ltd. possess good marketing techniques, his techniques involve oral presentation of message, convincing the customer with face to face interaction, etc. Name the element of marketing mix under which the above technique fall:

(a) Promotion

(b) Product

(c) Price

(d) Place

Answer: A

Question: Which of the following act as a silent salesman?

(a) Product

(b) Price

(c) Packaging

(d) Promotion

Answer: C

Question:  Which of the following is a factor of marketing mix?

(a) Product

(b) Price

(c) Promotion

(d) All the above

Answer: D

Question:  Selling goods by producer to consumer involves which channel?

(a) One level

(b) Two level

(c) Three level

(d) Zero level

Answer: D

Question: Which of the following does not come under controllable factors?

(a) Price decisions

(b) Packaging decisions

(c) Physical distribution decisions

(d) Taxation

Answer: D

Question:  Is objection to advertisement.

(a) Undermines social values

(b) Decrease in price

(c) Knowledge on various products

(d) Improvement in Quality of Product

Answer: A

Question: …………. refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output.

(a) Standardisation

(b) Grading

(c) Assorting

(d) Sorting

Answer: A

Question:  Cardbox of Shaving Cream is the example of?

(a) Primary Packaging

(b) Secondary Packaging

 c) Transport Packaging

(d) None of the above

Answer: B

Question: Primary and secondary markets
(a) compete with each other
(b) complement each other
(c) function independently
(d) control each other

Answer: B

Question: Mr A, an existing shareholder of a company is offered the ‘right’ to buy new shares in proportion to the number of shares, he already possess. This kind of issue is known as
(a) offer through sale
(b) e-IPOs
(c) private placement
(d) rights issue

Answer: D

Question: NSE commenced future trading in the year
(a) 1999
(b) 2000
(c) 2001
(d) 2002

Answer: B

Question: Treasury bill is basically
(a) an instrument to borrow short-term funds
(b) an instrument to borrow long-term funds
(c) an instrument of capital market
(d) None of the above

Answer: A

Question: In which of the following aspects, money market is different from capital market?
(a) Participants
(b) Tenure of securities traded
(c) Liquidity of securities traded
(d) All of the above

Answer: D

Question: Funds raised through commercial paper are used to meet the f loatation costs are known as
(a) equity financing
(b) bridge financing
(c) debt financing
(d) None of these

Answer: B

Question: Which of following is/are depository participants?
(a) ICICI bank
(b) Angel broking
(c) SBI bank
(d) All of these

Answer: D

Question: Mr B has purchased treasury bills of face value of Rs 1,00,000 at Rs 96,000. At the time of maturity, he will get Rs 1,00,000. How much interest is received by him?
(a) Rs 10,000
(b) Rs 4,000
(c) Nil
(d) None of these

Answer: B

Question: ABC Ltd. a reputed industrial machines manufacturer, need Rs 20 crore as additional capital to expand their business. Mr Kunal, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The finance manager, Mr Amit, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive. The proposal was accepted.
Name the method through which the company decided to raise additional capital.
(a) Right issue
(b) e-IPOs
(c) Offer for sale
(d) Private placement

Answer: C

Question: Which of the following is a depository formed for the purpose of ensuring free transferability of securities in India?
(a) NSDL
(b) RBI
(c) SEBI
(d) None of these

Answer: A

Question: Clearing and settlement operations of NSE are carried out by
(a) NSDL
(b) NSCCL
(c) SBI
(d) CDSL

Answer: B

Question: Stock exchange helps in
(a) providing liquidity to existing securities
(b) contributing to economic growth
(c) pricing of securities
(d) All of the above

Answer: D

Question: According to ………, “stock exchange means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying and selling of securities”.
(a) Securities Contracts Regulation Act, 1956
(b) Securities and Exchange Board of India Act, 1992
(c) Reserve Bank of India Act, 1934
(d) The Banking Regulation Act, 1949

Answer: A

Question: .………. is manipulating the market price of shares by increasing or decreasing their prices.
(a) Price rigging
(b) Insider trading
(c) Private placement
(d) Fluctuation

Answer: A

Question: What can be the method of f loating new issues in the primary market?
(a) Offer through prospectus
(b) Private placement
(c) Rights issue
(d) All of the above

Answer: D

Question: Which market helps in channelising surplus funds into the most productive uses?
(a) Financial market
(b) Wholesale market
(c) Retail market
(d) None of these

Answer: A

Question: SEBI was established on …….. and its headquarter is situated at ……… .
(a) 12th April, 1988, Mumbai
(b) 12th April 1990, Mumbai
(c) 12th May, 1988, Delhi
(d) 12th May, 1990, Delhi

Answer: A

Question: The National Stock Exchange of India was recognised as stock exchange in the year
(a) 1992
(b) 1993
(c) 1994
(d) 1995

Answer: A

Question: Under which of the following methods, securities are not issued directly to the public, but are offered through intermediaries like issuing houses or stock brokers?
(a) Offer through prospectus
(b) Offer for sale
(c) Private placement
(d) e-IPO

Answer: B

Question: IM Ltd. issued prospectus for subscription of its shares for Rs 100 crores. The issue was oversubscribed. Later, SEBI inspected the prospectus and found some misleading statement about management of company. Identify the function performed by SEBI.
(a) Regulatory
(b) Protective
(c) Development
(d) Both (a) and (b)

Answer: B

Question: In case of public issue of shares, in order to save company from undersubscription, the issue may be
(a) insured
(b) rigged
(c) underwritten
(d) All of these

Answer: C

Question: Allotment of securities by a company to institutional investors and selected individuals is known as
(a) public offer
(b) private offer
(c) private placement
(d) offer through prospectus

Answer: C

Question: Which of these is not a money market participant?
(a) RBI
(b) Commercial banks
(c) Large corporate houses
(d) Stock exchange

Answer: D

Question: In case of an e-IPO, who co-ordinates with all the intermediaries connected with the issue?
(a) Issuing house
(b) Managing director
(c) Chief financial officer
(d) Lead manager

Answer: D

Question: MD of Perk Ltd., Paul suggested that since the economy is buoyant, the company should invest in ……… market to take advantage of economy.
(a) primary market
(b) secondary market
(c) money market
(d) capital market

Answer: D

Question: WWW Ltd. is a large and creditworthy company. It recently raised capital through an instrument which is alternative to bank borrowings. What could be the instrument?
(a) Call money
(b) Treasury bills
(c) Commercial paper
(d) Certificate of deposits

Answer: C

Question: The settlement cycle in NSE is
(a) T+5
(b) T+3
(c) T+2
(d) T+1

Answer: C

Question: ……….. is a market for the purchase and sale of existing securities.
(a) Primary market
(b) Money market
(c) Secondary market
(d) Retail market

Answer: C

Question:Question: Directors of FM Ltd. want to issue shares to accumulate funds to modernise its plant and machines. Considering the huge expenditure involved in f loatation, the company decided to sell its shares to Yes Bank, an institutional investor. Which method of f loatation is considered by Bharat Ltd.?
(a) Offer for sale
(b) Offer through prospectus
(c) Rights issue
(d) Private placement

Answer: D

Question: “The securities in this financial market yield low rate of return”. Which market is highlighted here?
(a) Secondary market
(b) Primary market
(c) Money market
(d) Capital market

Answer: C