Tag: introduction to financial markets

Questions Related to introduction to financial markets

Which banking company is known worldwide for its credit cards _______________.

business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

  1. Axis Bank

  2. ICICI Bank

  3. HDFC Bank

  4. American Express

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Correct Option: A
Explanation:

Axis Bank is known worldwide for its credit cards. Axis Bank is the third largest private sector bank in India. It offers a spectrum of financial serivces for personal and corporate banking. Head office of Axis Bank is situated in Mumbai.

To examine the productivity, a banker chooses the following criteria:

business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

  1. Labour efficiency

  2. Capital efficiency

  3. Fixed assets efficiency

  4. All the above

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Correct Option: D

Reasons for capital fight are __________________.

business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

  1. Unstable political and economic climate

  2. Fear of war, terrorism etc.

  3. High inflation in home countries

  4. Attractiveness of foreign financial systems

  5. All of the above

Show answer
Correct Option: E
Explanation:

Some of the reasons for capital flight are expected return on investment is higher abroad,unstable political and economic climate, fear of war, terrorism, etc. tax structure of local governments, high inflation in home country and attractiveness  of foreign financial system.

A Yankee bond is__________________________________.

business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

  1. A dollar denominated bond issued for global market by a non-US entity.

  2. A dollar denominated bond issued in the US by a non-US entity.

  3. A dollar denominated bond issued by a US resident to non-US investors.

  4. All of (A), (B) and (C) above

  5. None of the above

Show answer
Correct Option: B
Explanation:

Yankee bonds are US dollar denominated Bonds issued by foreign borrowers, (Usually foreign governments or entitles supranational ad highly rated corporate borrowers) in the US bond markets.

Which of the following is the banker's bank _________.

business organisation capital market concept of financial market introduction to financial markets meaning and definition of financial market

  1. SIDBI

  2. EXIM bank

  3. IDBI

  4. RBI

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Correct Option: D
Explanation:
In India, Reserve Bank Of India or RBI is known as the banker's bank. It is so called because it acts as a bank for all the commercial banks in India. RBI holds their cash reserves, lends them short -term funds and provides them the central clearing and remittances facilities.