Advertisements
Advertisements
प्रश्न
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 _________.
पर्याय
Treasury bills
Commercial bills
Commercial papers
उत्तर
When the trade bills are accepted by commercial banks it is known as Commercial bills.
APPEARS IN
संबंधित प्रश्न
Distinguish between money market and capital market.
The market where existing securities are resold or traded is called __________ market.
(a) commodity
(b) secondary
(c) primary
Today, 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 the 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 allocating 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 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
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.
What are the functions of Financial Market?
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.
PRIMARY MARKET SECONDARY MARKET
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.
Find the odd one.
Explain the following term/concept.
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.
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. |
Tractors Pvt. Ltd. producing 2,00,000 trucks and generating revenue of Rs. 2,000 crores annually, has recently acquired the world's second largest truck manufacturing company. After this acquisition, Tractors Pvt. Ltd. will become the world's largest truck manufacturer. For financing the acquisition, the company had to arrange about Rs. 1,00,000 crores through debt and equity. ______ function is being performed by the company for arranging the funds through debt and equity.
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. |
Match the various terms of Financial Markets Column - I with their respective Statements in Column - II
Column - I | Column - II | ||
a. | Financial market | i | It is also known as the Stock market |
b. | Primary market | ii | It is a market for creation and exchange of financial assets. |
c. | Secondary market | iii | It is also known as New issue market |
Correct the underlined word and rewrite the following:
IPO is offered to existing equity shareholders.
Distinguish between:
Primary Market and Secondary Market
The allocative function of Financial market helps in ______.