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प्रश्न
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.
पर्याय
Gold
Financial securities
Commodities
उत्तर
A financial market is a market in which people trade financial securities and derivatives at low transaction costs.
APPEARS IN
संबंधित प्रश्न
Distinguish between money market and capital market.
Bharat Express specialises in Courier Services. Its 'wide range of express package and parcel services' help business firms to make sure that the goods are made available to the customers at the right place and at the right time. A state with reason, whether the working capital requirements of 'Bharat Express' will be high or low
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.
Distinguish between the following.
Money market and Capital market.
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?
Answer the following question.
How does Financial Market facilitate the 'Price Discovery' of financial assets?
Money market is a market for lending and borrowing of funds for _________ term.
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.
Write a word or a term or a phrase which can substitute the following statement.
A market where people trade financial securities and derivatives at low transaction cost
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
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?
Answer in brief.
State any four functions of the financial market.
Answer the following question
State the features of capital 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.
What are the functions of a financial market?
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?
Which of the following statements is incorrect regarding Financial Markets?
Full form of IFCI
Match the pairs:
| Group 'A' | Group 'B' |
| (a) Investment in debenture | (1) Deals with acquisition and use of capital. |
| (b) Financial market | (2) Must inform the stock exchange about dividend declaration. |
| (c) Price of shares mentioned in the prospectus | (3) Trading of financial securities |
| (d) Corporate finance | (4) Safe and secure investment |
| (e) Listed company | (5) Must inform the government about dividend declaration |
| (6) Fixed price issue method | |
| (7) Risky investment | |
| (8) Trading of commodities. | |
| (9) Deals with acquisition and use of assets. | |
| (10) Book-Building Method. |
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.
