Financial Markets and Services

A high credit rating implies __________ credit risk

• High

• Low

A major difference between leasing and borrowing is that in leasing, the ownership of the asset remains with the __________.

• Lessor

• Lessee

The Reserve Bank of India (RBI) is the regulator for the capital market.

• True

• False

Financial instruments can be broadly classified into __________ and __________ instruments.

• Money, Capital

• Debt, Equity

Money market instruments are typically used for long-term financing.

• True

• False

Merchant banks concept in India introduced by A) SBI B) PNB C) Grindlays Bank D) City bank

• A

• B

• C

• D

In a stock exchange, what does a "stock broker" do? A) Buys and sells stocks on behalf of clients B) Issues stocks to companies C) Regulates the market D) Conducts financial audits

• A

• B

• C

• D

Which of the following is not a reason for the need for debt securitization? A) Liquidity improvement

B) Risk transfer C) Interest rate control D) Capital adequacy compliance

• A

• B

• C

• D

Name the oldest stock exchange in India.

Name one credit rating agency