B Com Exam  >  B Com Tests  >  Interdisciplinary Issues in Indian Commerce  >  Test: Introduction to Indian Financial System - 1 - B Com MCQ

Test: Introduction to Indian Financial System - 1 - B Com MCQ


Test Description

10 Questions MCQ Test Interdisciplinary Issues in Indian Commerce - Test: Introduction to Indian Financial System - 1

Test: Introduction to Indian Financial System - 1 for B Com 2024 is part of Interdisciplinary Issues in Indian Commerce preparation. The Test: Introduction to Indian Financial System - 1 questions and answers have been prepared according to the B Com exam syllabus.The Test: Introduction to Indian Financial System - 1 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Introduction to Indian Financial System - 1 below.
Solutions of Test: Introduction to Indian Financial System - 1 questions in English are available as part of our Interdisciplinary Issues in Indian Commerce for B Com & Test: Introduction to Indian Financial System - 1 solutions in Hindi for Interdisciplinary Issues in Indian Commerce course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Introduction to Indian Financial System - 1 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Interdisciplinary Issues in Indian Commerce for B Com Exam | Download free PDF with solutions
Test: Introduction to Indian Financial System - 1 - Question 1

What is the primary goal of investing?

Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 1
The primary goal of investing is to make the most of the money you have by putting it to work in various investment vehicles, with the expectation of obtaining additional income or profit over time. This allows you to grow your wealth and achieve your financial goals. While spending on luxury items and experiences can be enjoyable, investing is about prioritizing your financial future over immediate desires.
Test: Introduction to Indian Financial System - 1 - Question 2

According to the provided text, what is the main purpose of savings?

Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 2
The main purpose of savings, as mentioned in the text, is to accumulate wealth for future financial security. Savings allow individuals to set aside money and create a financial cushion for emergencies or future financial goals.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Introduction to Indian Financial System - 1 - Question 3

What is the key characteristic of a shadow banking system?

Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 3
A key characteristic of a shadow banking system is that it operates without regulatory oversight. This means that it consists of financial intermediaries involved in credit creation but is not subject to the same level of government regulations as traditional banks.
Test: Introduction to Indian Financial System - 1 - Question 4
In the context of financial instruments, what is the primary difference between cash instruments and derivative instruments?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 4
The primary difference between cash instruments and derivative instruments is that cash instruments have fixed values, while derivative instruments have variable values. Cash instruments include assets like stocks and bonds, and their values are directly influenced by market conditions. Derivative instruments, on the other hand, derive their value from underlying assets, interest rates, or indices, and their values can fluctuate based on these factors.
Test: Introduction to Indian Financial System - 1 - Question 5
What is the role of financial institutions in the economy?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 5
Financial institutions play a crucial role in facilitating monetary transactions and the exchange of money within the economy. They provide services such as deposits, loans, investments, and currency exchange, which are essential for individuals and businesses to manage their finances and conduct economic activities.
Test: Introduction to Indian Financial System - 1 - Question 6
What is the main function of the global financial system?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 6
The main function of the global financial system is to facilitate the flow of credit across the global financial system. This system allows for the movement of capital between investors, lenders, and borrowers on a global scale, supporting economic activities and investments.
Test: Introduction to Indian Financial System - 1 - Question 7
Which financial instrument represents ownership of an asset?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 7
Stock options represent ownership of an asset. When you hold stock options, you have the right to buy or sell a specific quantity of shares of a company's stock at a predetermined price, giving you ownership or control over those shares.
Test: Introduction to Indian Financial System - 1 - Question 8
What are short-term debt-based financial instruments?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 8
Short-term debt-based financial instruments are financial instruments with maturities of one year or less. These instruments include items like T-bills and commercial paper, which are typically considered short-term investments.
Test: Introduction to Indian Financial System - 1 - Question 9
What is the role of the Federal Deposit Insurance Corporation (FDIC) in the United States?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 9
The role of the Federal Deposit Insurance Corporation (FDIC) in the United States is to provide insurance for financial assets, particularly deposits held by individuals and businesses in banks. The FDIC ensures that these deposits are protected up to certain limits, providing confidence and security to depositors.
Test: Introduction to Indian Financial System - 1 - Question 10
What are some examples of non-bank financial institutions mentioned in the text?
Detailed Solution for Test: Introduction to Indian Financial System - 1 - Question 10
Some examples of non-bank financial institutions mentioned in the text include hedge funds and insurance companies. These institutions offer financial services and products but are not traditional commercial banks or central banks.
49 videos|45 docs|14 tests
Information about Test: Introduction to Indian Financial System - 1 Page
In this test you can find the Exam questions for Test: Introduction to Indian Financial System - 1 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Introduction to Indian Financial System - 1, EduRev gives you an ample number of Online tests for practice
Download as PDF