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प्रश्न
Select the correct answer from the options given below and rewrite the statement.
____________ is the market for borrowing and lending long term capital required by business enterprises.
पर्याय
Money Market
Capital Market
Gold Market
उत्तर
Capital Market is the market for borrowing and lending long term capital required by business enterprises.
APPEARS IN
संबंधित प्रश्न
Distinguish between Primarymarket and Secondary Market.
State the functions performed by financial market.
These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded every day. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.
1) Name the function being performed by the market in the above case.
2) Also. explain briefly three other functions performed by this market.
The financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions.’ Explain any three such functions
A market where short term funds are borrowed and lent.
State, with reasons, whether the following statements are True or False
The financial market contributes towards the nation's economic growth and development.
Match the pairs :
| Group "A" | Group "B" | ||
| 1. | Private placement | a. | Recurring Deposit |
| 2. | N.S.D.L | b. | Dividend |
| 3. | Overdraft facility | c. | Evidence of deposit |
| 4. | Deposit receipt | d. | Interest |
| 5. | Returns on share | e. | Depository out of India |
| f. | A public company collecting capital privately |
||
| g. | Depository in India | ||
| h. | Evidence of ownership | ||
| i. | A private company collecting capital privately |
||
| j. | Current account |
Write a word or a term or a phrase which can substitute the following statement :
A definite promise in writing from a buyer for paying the amount on a specific Date.
What is financial market? And what is its role?
PRIMARY MARKET SECONDARY MARKET
Answer the following question.
What is meant by the 'Allocative Function' of Financial Markets?
Select the correct answer from the options given below and rewrite the statement.
A financial market is a market in which people trade _____________ and derivatives at low transaction costs.
Select the correct answer from the options given below and rewrite the statement.
When the trade bills are accepted by commercial banks it is known as _________.
Money market is a market for lending and borrowing of funds for _________ term.
State whether the following statement is true or false
A Financial Market is a market in which people trade financial securities and derivatives at high transaction costs.
Find the odd one.
Answer in one sentence.
What is financial market
Explain the following term/concept.
Capital market
Study the following case/situation and express your opinion.
Mr. X is the CFO ( Chief Financial Officer ) of PQR Co. Ltd. which is a reputed company in the field of construction business. Often Mr. X has to decide on investing surplus funds of the company for short durations. And at times, he also has to decide the sources from where he can raise funds for short durations.
- Assume on behalf of the company Mr. X has Rs. 5 lakhs and wants to invest for a short period. Should he buy Equity shares or a Certificate of Deposit?
- The company has surplus funds and wants to invest it. However, he needs the money back in 4 months, so should he invest in Treasury Bills or Government Securities?
- Can the company issue a Certificate of Deposit?
Distinguish between the following.
Primary market and Secondary market
Answer in brief.
State any four functions of the financial market.
Vansh Limited is a large and reputed company which manufactures ventilators. After the outbreak of ‘COVID-19’ in 2020 the company witnessed an increase in revenue by 40%. It has plans to further increase its production capacity and also start production of PPE kits, sanitisers and masks in 2022. The Finance manager of the Company Mr. Rajiv feels confident about the future of the company and its liquidity position. Discuss the meaning of Dividend Decision and in the light of the above statement explain any two factors which should be considered by ‘Vansh Limited’ while formulating the dividend policy of the company.
In order to get feedback about its recently launched immunity-boosting ayurvedic medicine, Atulya Limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya Limited.
Match the FUNCTIONS of Financial Markets in Column I with their correct MEANING in Column II
| Column I | Column II | ||
| (a) | Allocated Function | (i) | Establish a price for the financial asset through interaction between house-holds and business firms. |
| (b) | Facilitating Price Discovery | (ii) | Easy purchase and sale of financial assets. |
| (c) | Financial Assets Liquidity | (iii) | Mobilization of savings and channelising them into the most productive use. |
______ is short-term finance repayable on demand, with a maturity period of one day to fifteen days.
Which of the following statements is false regarding financial market?
Full form of IFCI
What is meant by the financial market?
Study the following case/situation and express your opinion.
| Jack & Jones, a newly incorporated organization wants to raise capital for the first time by issuing equity shares. |
- Should it go for Primary Market or the Secondary Market?
- What will be the issue of equity shares by Jack & Jones called?
Correct the underlined word and rewrite the following:
IPO is offered to existing equity shareholders.
______ market where the company trades shares for the first time.
