All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Indian Economy  >  Test: Money Market and Capital Market structure in India- 2 - B Com MCQ

Test: Money Market and Capital Market structure in India- 2 - B Com MCQ


Test Description

10 Questions MCQ Test Indian Economy - Test: Money Market and Capital Market structure in India- 2

Test: Money Market and Capital Market structure in India- 2 for B Com 2024 is part of Indian Economy preparation. The Test: Money Market and Capital Market structure in India- 2 questions and answers have been prepared according to the B Com exam syllabus.The Test: Money Market and Capital Market structure in India- 2 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Money Market and Capital Market structure in India- 2 below.
Solutions of Test: Money Market and Capital Market structure in India- 2 questions in English are available as part of our Indian Economy for B Com & Test: Money Market and Capital Market structure in India- 2 solutions in Hindi for Indian Economy course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Money Market and Capital Market structure in India- 2 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Indian Economy for B Com Exam | Download free PDF with solutions
Test: Money Market and Capital Market structure in India- 2 - Question 1
Save

What is the primary function of the new issue market?

Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 1
The primary function of the new issue market, also known as the primary market, is to promote savings and investments in new corporate enterprises or the expansion, diversification, growth, or modernization of existing ones. This market facilitates the transfer of funds from investors to entrepreneurs who are setting up new businesses or seeking to enhance their existing ones. It plays a crucial role in channeling savings into long-term investments, contributing to the economic growth and industrial development of a country.
Test: Money Market and Capital Market structure in India- 2 - Question 2
Save

Which of the following securities are traded in the secondary market?

Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 2

The secondary market is where existing securities are bought and sold. This includes securities that have been previously issued and are already in circulation. Debentures, which are debt instruments issued by established companies, are an example of securities traded in the secondary market. This market provides liquidity to investors by allowing them to sell their holdings when needed.

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Money Market and Capital Market structure in India- 2 - Question 3
Save

Which institution was established to provide liquidity and further develop secondary market instruments in India?

Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 3
Discount and Finance House of India (DFHI) was established in 1988 with the aim of providing more liquidity to the market and further developing secondary market instruments. It played a role in enhancing the trading of securities and fostering the growth of the Indian capital market.
Test: Money Market and Capital Market structure in India- 2 - Question 4
Save
Which financial institution is responsible for promoting and supporting small industries in India?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 4
The National Small Industries Corporation (NSIC) is the financial institution responsible for promoting and supporting small industries in India. It provides various services and financial assistance to help small businesses thrive and contribute to the economy.
Test: Money Market and Capital Market structure in India- 2 - Question 5
Save
Which market allows for the purchase and sale of existing securities like shares and debentures?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 5
The secondary market is where existing securities like shares and debentures are purchased and sold. It provides a platform for investors to trade these securities, offering liquidity and allowing for price discovery based on market demand and supply.
Test: Money Market and Capital Market structure in India- 2 - Question 6
Save
What is the purpose of financial institutions in the Indian capital market?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 6
Financial institutions in the Indian capital market play a vital role in providing medium and long-term loans to businesses for industrial growth and development. These institutions assist in promoting new companies, expanding existing ones, and meeting financial requirements during economic challenges. They contribute significantly to the growth and development of industries in the country.
Test: Money Market and Capital Market structure in India- 2 - Question 7
Save
Which committee's recommendations led to the introduction of liquidity adjustment facility in India?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 7
The introduction of the Liquidity Adjustment Facility (LAF) in India was based on the recommendations of the Narsimham Committee. LAF is a tool used by the Reserve Bank of India (RBI) to manage liquidity and interest rates in the financial system.
Test: Money Market and Capital Market structure in India- 2 - Question 8
Save
What is the main objective of the Industrial Finance Corporation of India (IFCI)?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 8
The main objective of the Industrial Finance Corporation of India (IFCI) is to promote and provide financial assistance to industrial projects in the country. It plays a crucial role in supporting the growth and development of industries by offering medium and long-term loans.
Test: Money Market and Capital Market structure in India- 2 - Question 9
Save
Which institution was established to regulate and control the business of buying and selling securities in an organized manner?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 9
A stock exchange is an institution established to regulate and control the business of buying and selling securities in an organized manner. It provides a platform for investors to trade securities like shares and debentures.
Test: Money Market and Capital Market structure in India- 2 - Question 10
Save
Which market is also known as the primary market and involves the issuance of new securities?
Detailed Solution for Test: Money Market and Capital Market structure in India- 2 - Question 10
The market that is also known as the primary market and involves the issuance of new securities, such as shares and bonds, is the new issue market. This market allows companies to raise capital by offering new securities to investors for the first time.
46 videos|48 docs|23 tests
Join Course
Information about Test: Money Market and Capital Market structure in India- 2 Page
In this test you can find the Exam questions for Test: Money Market and Capital Market structure in India- 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Money Market and Capital Market structure in India- 2, EduRev gives you an ample number of Online tests for practice
46 videos|48 docs|23 tests
Join Course
Download as PDF

Important Questions for Money Market and Capital Market structure in India- 2

Find all the important questions for Money Market and Capital Market structure in India- 2 at EduRev.Get fully prepared for Money Market and Capital Market structure in India- 2 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Money Market and Capital Market structure in India- 2 syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Money Market and Capital Market structure in India- 2 resources.

Money Market and Capital Market structure in India- 2 MCQs with Answers

Prepare for the Money Market and Capital Market structure in India- 2 within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Money Market and Capital Market structure in India- 2 Indian Economy

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Money Market and Capital Market structure in India- 2 with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup