There are four important bond theorems, based on the interplay of its price and the market interest rate. Which of these has been correctly stated? 1 The price of a bond is inversely related to the change in interest rate. 2 The increase in the price of a bond when the interest rate goes down by a certain percentage, is greater than the decrease in its price when the interest rate goes up by the same percentage. 3 Longer the term to maturity of a bond, lower will be its price sensitivity. 4 Between two bonds of same maturity but different coupons, the bond with the lower coupon will experience more price sensitivity than the one with higher coupon.

Read the following features of Commercial Papers and find out which are True and which are false? 1 It is a money market instrument 2 It is an unsecured instrument issued in the form of a bill of exchange. 3 It is issued at a discount to face value 4 It has a definite maturity date decided at the time of issue itself.

Under Bills Re-discounting Scheme, interest is calculated on an which basis?

Which of the following is not covered under financial markets in India?

Domestic financial integration involves horizontal linkages of various segments, reflecting portfolio diversification by savers, investors and intermediaries. Under horizontal integration, market interest rates revolve around which rate?

The transition process of a stock exchange from a 'jointly owned' association to a 'shareholders-owned' company is known as?

In case of zero-coupon bonds, the difference between the ______and redemption price (face value) represents the return to the holder.

The borrowing or lending between eligible participants in the inter-bank money market for a period of one day is called call money. What is another name for this?

Some stages involved in international factoring are provided here under. What should be correct order starting from initiation of transaction? 1 The exporter delivers the goods to the importer and exporter produces the documents to the export factor. 2 Importer places order for purchase with the exporter and exporter requests the export factor for limit approval on the importer. 3 The export factor disburses funds to the exporter up to the prepayment amount decided and at the same time forwards the documents to the import factor. 4 The importer, on the due date of the invoice, pays the import factor, who in turn, remits this payment to the export factor.

Which of the following are the eligible securities for Repo transactions? 1) Securities issued by Central or a State Government, 2) listed corporate bonds and debentures, 3) Commercial Papers (CPs) and Certificate of Deposits (CDs)

In case of Small finance Banks the prudential limits for borrowing in Call and Notice Money is (i) ___% of capital funds, on a daily average basis in a reporting fortnight, and (ii) ___% of capital funds on any given day.

A mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document, is known as?

When the lessor borrows money to purchase an asset, and then lease that asset to the lessee, such lease is known as?

In case of a Follow-on public offering, the Red Herring Prospectus (RHP) can be filed with the ROC without the price band. In such a case, the floor price or the price band will be notified by way of an advertisement how many days prior to the opening of the issue?

There are two distinct groups of derivative contracts based on their market. These are 1) over-the-counter or OTC derivatives 2) __________

Which shares are issued by the companies to their shareholders free of cost by capitalisation of accumulated reserves from the profits earned in the earlier years or out of the share premium account?

There are 6 fundamental principles governing insurance products. These are: 1) Principle of utmost good faith, 2) Principle of ____, 3) Principle of indemnity, 4) Principle of _____, 5) Principle of contribution, 6) Principle of proximate cause. Fill in the blanks.

The FEDAI is an association of banks that are authorised to deal in foreign exchange markets in India which was established in the year 1958. What is the full form of FEDAI?

The Treasury Bill instrument is quoted at a discounted price to the par value of Rs.___

Out of the statements given below regarding depositories, which statement is correct? 1 The depository shall not render services directly to investors 2 Services are an agent, registered as participant, with SEBI. 3 The relationship between a depository and the participant is that of a debtor and creditor