Q3.
The risk that a market may lack sufficient depth to facilitate efficient and inexpensive entry into and exit from the market.
Q4.
An example of the primary financial market is:
Q5.
A list of the three major markets in the Indian financial system would include:
Q6.
Money is defined as anything that is accepted for payment of debts or purchase of goods.
Q7.
Which is the most liquid form of financial asset?
Q8.
The risk that a participant may be unable to meet its payment obligation when they are due is:
Q9.
(I) The term ‘secondary market’ is used to describe all subsequent buying and selling of securities.
(II) The risk that a counter party will default its obligations in whole or in part is called funding risk.
Q10.
The equity market is commonly known as:
Q11.
Financial intermediaries exist because they match the needs of borrowers and lenders: They earn income by:
Q12.
The primary financial market deals with buying and selling existing securities.
Q13.
What are the functions of the financial system?
Q14.
If there is a significant number of active buyers and sellers in a market, the market is regarded as a shallow market.
Q15.
Disintermediation refer to the trend towards:
Q16.
(I) International investment enables a spread of risk by being in a mix of markets and currencies but introduces currency exposure.
(II) International investment facilitates participation in economics which may be growing faster than India’s economy.
Q17.
Indian shares are traded on overseas markets in the form of
Q18.
Debentures are equity securities, traded on the stock exchange.
Q19.
(I) A hybrid security is a security, which has characteristics of both equity and debt.
(II) A deep market offers the benefits of liquidity, without undue disturbance to the market price.
Q20.
Intermediation refers to the activities of financial intermediaries in assisting indirect flow of funds in the financial system.
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