Class 12 Finance MCQ Chapter 10 New Issue Market (NIM) or Primary Market Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 10 New Issue Market (NIM) or Primary Market Question Answer and select need one. Class 12 Finance MCQ Chapter 10 New Issue Market (NIM) or Primary Market Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ Chapter 10 New Issue Market (NIM) or Primary Market
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.
New Issue Market (NIM) or Primary Market
Chapter: 10
| MCQ |
1. What is another name for the New Issue Market?
(i) Primary Market.
(ii) Secondary Market.
(iii) Money Market.
(iv) Stock Market.
Ans: (i) Primary Market.
2. The New Issue Market deals with which of the following?
(i) Old securities.
(ii) New securities.
(iii) Government bonds only.
(iv) Real estate.
Ans: (ii) New securities.
3. Who can raise capital in the New Issue Market?
(i) Only new companies.
(ii) Only existing companies.
(iii) Both new and existing companies.
(iv) Only government.
Ans: (iii) Both new and existing companies.
4. What is the primary function of the New Issue Market?
(i) Transfer of funds from savers to users.
(ii) Trading in old securities.
(iii) Money laundering.
(iv) Issuing currency.
Ans: (i) Transfer of funds from savers to users.
5. Which is NOT a function of the New Issue Market?
(i) Origination.
(ii) Underwriting.
(iii) Distribution.
(iv) Speculation.
Ans: (iv) Speculation.
6. Origination in NIM refers to:
(i) Issuing currency notes.
(ii) Investigation, analysis, and processing of new project proposals.
(iii) Trading old shares.
(iv) Collecting taxes.
Ans: (ii) Investigation, analysis, and processing of new project proposals.
7. Who performs the function of origination?
(i) Stock brokers.
(ii) Merchant bankers.
(iii) Company directors.
(iv) SEBI.
Ans: (ii) Merchant bankers.
8. Underwriting is:
(i) The printing of share certificates.
(ii) A guarantee for the success of an issue.
(iii) The process of auditing company accounts.
(iv) Selling only government securities.
Ans: (ii) A guarantee for the success of an issue.
9. Which is a method of underwriting?
(i) Standing behind the issue.
(ii) Direct purchase from investors.
(iii) Auctioning shares.
(iv) Lottery system.
Ans: (i) Standing behind the issue.
10. The sale of securities to ultimate investors is called:
(i) Underwriting.
(ii) Distribution.
(iii) Origination.
(iv) Evaluation.
Ans: (ii) Distribution.
11. Public issue of shares is done through:
(i) Private circulars.
(ii) Issue of prospectus.
(iii) Secret agreement.
(iv) Oral announcements.
Ans: (ii) Issue of prospectus.
12. Private placement is suitable for:
(i) Only government companies.
(ii) Small companies.
(iii) Foreign companies only.
(iv) Blue-chip companies only.
Ans: (ii) Small companies.
13. In the offer for sale method, shares are:
(i) Offered directly to public.
(ii) Sold outright to intermediaries who then sell to investors.
(iii) Sold in the black market.
(iv) Only auctioned.
Ans: (ii) Sold outright to intermediaries who then sell to investors.
14. Right issue means:
(i) Offering new shares to general public.
(ii) Offering new shares to existing shareholders at privileged price.
(iii) Selling shares through auction.
(iv) Government selling bonds.
Ans: (ii) Offering new shares to existing shareholders at privileged price.
15. Which is NOT an intermediary in NIM?
(i) Merchant bankers.
(ii) Stock exchanges.
(iii) Underwriters.
(iv) Registrars.
Ans: (ii) Stock exchanges.
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