Introduction to Indian Financial System: Module 1 Quiz

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29 Questions

What is the main role of the Indian financial system?

Encouraging both savings and investment

Which statement best describes the function of financial institutions?

Converting risky investments into risk-free ones

What is the characteristic of Notice Money?

Loan granted for more than a day and for less than 14 days

Which institutions fall under the category of Non Banking Institutions?

Insurance, mutual funds, and brokerage companies

What does the financial system help in mobilizing and allocating?

Savings

What does Call Money refer to?

Loan granted for one day without collateral securities

Which type of financial instrument has a maturity period of less than a year?

Treasury Bills

What is the main characteristic of Commercial Paper?

It is an unsecured short-term debt instrument

Which market is designed to finance long-term investments for over a year?

Capital Market

What is the primary function of the Credit Market?

Granting short-term and long-term loans

Which service does Asset Management and Liability Management Companies provide?

Investment Services

What is the main characteristic of Term Money?

It has a maturity period of over 14 days

What does buying a Treasury Bill mean?

Lending money to the government

What is the main responsibility of equity research professionals?

Producing analyses and recommendations on investment opportunities

Which type of institutions do equity research professionals work for?

Investment banks, institutions, or independent organizations

What is the main purpose of equity research?

To provide investors with detailed financial analysis and recommendations

What does the Nitin Desai Committee focus on?

Venture capital recommendations

Which group of analysts and associates is involved in equity research?

Investment banking analysts and associates

What is the primary function of merchant banking?

Facilitating corporate finance activities and stock underwriting

What is the main function of sell-side equity research analysts?

Providing investment recommendations for their clients and the public

What is the primary focus of venture capital financing?

Supporting businesses with strong growth prospects

What is the role of buy-side equity research analysts?

Devising and performing primary research methods

What type of financing does venture capital provide to startup companies and small businesses?

Long-term growth potential funding

What is the result of the allocation of venture capital in a company?

Quick expansion of the borrowing business

What function do sell-side equity research analysts perform when interacting with institutional investors?

Communicating investment research and responding to requests

What is the main focus of buy-side equity research analysts' recommendations?

Investments for their own firm

What distinguishes venture capital financing from other forms of private equity?

Long-term growth potential funding for startups

What is the main function of buy-side equity research analysts in relation to research reports?

Assisting in writing research reports with findings

What do investors in venture capital aim to profit financially from?

Success of the borrowing business

Test your knowledge about the Indian financial system, including its role in economic development, savings and investment, financial institutions, markets, capital formation, and the provision of funds.

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