Banking Quiz

1. Private placement coversa?
a) Shares
b) Preference shares
c) Debentures
d) All of the above

2. Equity funding is preferable especially when the project is________?
a) Fund intensive
b) Finance intensive
c) Capital intensive
d) Application intensive

3. The _______ has to manage the post-issue activities?
a) Merchant banker
b) Lead manager
c) Bank promoter
d) All of the above

4. It is a process by which a demand for the securities proposed to be issued by a body corporate is elicited?
a) Book building
b) Share certificate
c) Promoter issue
d) Circular

5. Financial services through the network of elements such as ________, serve the needs of individuals, institutions and Corporate?
a) Financial institutions
b) Financial markets
c) Financial instruments
d) All of the above

6. ______ is regarded as the fourth element of the financial system?
a) Financial services
b) Financial markets
c) Financial instruments
d) Financial institutions

7. Objectives of financial services?
a) Fund raising
b) Funds deployment
c) Specialized services and Regulation
d) Economic growth
e) All of the above

8. Chief characteristics of financial services?
a) Intangibility
b) Customer orientation
c) Inseparability
d) Dynamism
e) All of the above

9. Factors affecting assigned ratings?
a) The character and terms of the particular security being issued.
b) The probability that the issuer will default the security and the ability and willingness of the issuer to make timely payments
c) The degree of protection extended to investors if the securities are liquidated, reorganized, and/or if the organization declares bankruptcy.
d) All of the above

10. Identify the benefits of credit-rating to investors?
a) Safeguard against bankruptcy
b) Saving of resources
c) Credibility of issues
d) All of the above