Financial Management Quiz

The objective of financial management is to

• Generate the maximum net profit

• Generate the maximum retained earnings

• Generate the maximum wealth for its shareholders

• Generate maximum funds for the firm at the least cost

Agency problem refers to conflict between

• Government and Management

• SEBI and RBI

• Management and Shareholders

• Big shareholders and minority shareholders

Which one of the following is NOT issued at discount to face value?

• Equity Share

• Commercial paper

• Certificate of deposit

• Treasury bills

Which of the following is true for Secondary Markets?

• Prices are determined by demand-supply match for security in the market

• Prices are decided by the SEBI

• Prices are decided by the lead merchant banker

• Prices are decided by the company

Which of the following is NOT the money market instrument?

• Certificate of deposit

• Treasury bills

• Debentures

• Call money

Which of the following provides liquidity to money market instruments by creating a secondary market where they can be traded?

• Discount and Finance House of India.

• National Securities Depository Limited.

• State Bank of India.

• Reserve Bank of India.

When two or more companies combine into one company, is called

• Acquisition

• Merger

• Takeover

• Hostile Combination

Which of the following product is NOT traded in derivatives market?

• Forward

• Mutual funds

• Futures

• Options

In terms of the maturity of assets issued, which of the following markets have the shortest maturity period?

• Call Money Market

• Commercial Paper Marke

• Treasury Bills Market

• Certificates of Deposit Market

Which of the following is the characteristics of the money market instruments?

• Long term maturity

• High liquidity

• Issued by the Governments only

• High risk and high return