Important Previous Year HSST Commerce Questions from Module 2 :-

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1. Take out financing is a kind of

A) Lease financing

B) Bank financing

C) Hire purchase financing

D) Merchant banking

2. The most appropriate definition of market is

A) The place where products are exchanged

B) The time when products are exchanged

C) Effective contact between the buyer and seller

D) The level of satisfaction of the seller

3. The NSS is better means of investment because of

A) Tax deferment

B) High rate of interest

C) Liquidity

D) None of these

4. IDBI bank is

A) Development bank in the Government sector

C) Commercial bank in the private sector

D) Development bank in the private sector

5. The relationship between equity capital and long term debt is known as

A) Capital gearing

B) Capital budgeting

C) Financial leverage

D) Trading on equity

6. The T-Bill futures are bought for a hedge during a period when

A) The interest rates cannot be predicted

B) The interest rates are likely to be stable

C) The interest rates are likely to come down

D) All of the above

7. Purchasing of shares with funds borrowed from broker is

A) Domestic trading

B) Margin trading

C) Option dealing

D) Foreign trading

8. The origin of merchant banking was in

B) 13th century

C) 14th century

D) 15th century

9. Hawthrone studies are related to which stage of organizational behavior evolution?

A) Industrial revolution

B) Scientific management

C) Functional management

D) None of these

10. Allocation of resource to the States is the primary duty of

A) The NITI Ayog

B) The Finance Commission

C) The RBI

D) The Pay Commission

11. LIC was established in…………..

Α. 1956

Β. 1964

C. 1989

D. 1935
 12. In India, the company which actually deals with the corpus of the mutual fund is
called

A. Sponsor company

B. Trustee company

C. Asset Management Company

D. Mutual fund Company.

13. The device adopted to make profit out of price differences in two different markets

A. Cornering

B. Wash sales

C. Rigging

D. Arbitrage

14. The small investors’ gateway to enter into big companies is

A. Equity shares

B. Preference shares

C. Bonds

D. Mutual fund

15. What you mean by “STRIPS”

A. separate trade register of initial public securities offer

C. separate trading of registered interest and principal of securities

D. share transfer and registrar of indian public securities issues

16. Perpetual bond is also known as

A. Deep discount bond

B. Irredeemable bond

C. Bearer bond

D. Registered bond

17. ---------- bonds are high risk and high yield bonds developed in USA

A. Deep discount bond

B. Junk bonds

C. Bearer bond

D. Bunny bonds

18. BOLT stands for

A. Borrowing or lending trade

B. Bombay online trading

C. Bond or loan transaction

D. None of these

19. SENSEX is the index of

B. NSE

C. OTCEI

D. CSE

20. The bill which doesn’t require acceptance is called

A. Treasury bills

C. Bill of lading

B. Supply bill

D. Documentary bill

21. The market for extremely short period loan is called…….

A. Call money market

B. Money at short notice

C. T-bill market

D. G-Sec market

22. Facilitate the transfer of funds from savers to the borrowers.

A. Goods market

B. Money market

C. Financial market

D. Consumer market
 23. …..market is a market for old issues

A. Money market

B. Primary market

C. Secondary market

D. All the above

23. ………is regarded as a queen of Indian financial system.

A. SEBI

B. RBI

C. Finance ministry

D. BSE

24. ……….allocates saving efficiently in an economy to ultimate users either for

A. Economic system

B. Banking system

C. Financial system

D. Market system

25. Speculator who neither buy nor sell securities in the market, but still trade on them
are called

A. Wolves
B. Stag

C. Bull

D. Bear

26. When purchases of securities are more than sales of securities, the market is called

A. Bullish

B. Bearish

C. Grey

D. Odd

27. The facility to carry forward a transaction from one settlement period to another is
called transaction

A. Hand delivery

B. Badla

C. Cornering

D. Arbitrage

28. The certificate which evidences an unsecured corporate debt of short term maturity

A. Certificate of Deposit

B. Commercial paper

C. Secured Premium Notes

D. Interbank participation Certificate

A. Sub-broker

B. Commission broker

C. Authorised clerk

D. Remisiers

30. ---- bills are drawn by contractors on the government departments for the goods
supplied by them.

A. Usance bills

B. T-bills

C. Clean bills

D. Supply bills

31. ……….is also known as “G.Secs”

A. Gold Traded Fund (GTF)

B. General Securities

C. Govt. Securities

D. Growth oriented fund

32. ……… is a product whose value is derived from the value of underlying asset

A. Repo
B. T-bills

C. G.sec

D. Derivatives

33. The process of managing the sales ledger of a client by a financial service company
is called

A. Forfaiting

B. Factoring

C. Leasing

D. None of these.

34. Bonds permit the bond holder to invest the interest income again in host bonds

A. Deep discount bond

C. Bearer bond

B. Junk bonds

D. Bunny bonds

35. The idea of providing factoring services in India was first thought by

A. Vaghul committee

C. Tanden Committee

B. Malhotra Committee

D. None of these