0801 FM (CFA550) - Question Paper Financial Markets...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Question Paper Financial Markets (CFA550): January 2008 Answer all 76 questions. Marks are indicated against each question. Total Marks : 100 1. The required amount of successful bids by a primary dealer who participated in the bidding for T-Bills is Rs.600 crore. The commitment to aggregative bidding would be (a) Rs.1,200 crore (b) Rs.1,500 crore (c) Rs.1,600 crore (d) Rs.1,800 crore (e) Rs.2,000 crore. (1 mark) <Answer> 2. Which of the following statements is/are true with respect to Public Deposits? I. A company for meeting its short-term requirements of funds, may accept or renew deposits for less than 3 months. II. Any unsecured loan brought in by promoters in pursuance to any stipulation by financial institutions is considered as public deposit. III. Any deposit repayable on demand or on notice can be accepted by a company. IV. The maximum maturity period for the deposits cannot exceed 60 months. (a) Only (I) above (b) Only (III) above (c) Both (I) and (IV) above (d) Both (II) and (III) above (e) (I), (III) and (IV) above. (1 mark) <Answer> 3. An investor invested in the deposit of a company at an interest rate of 10% p.a. for a period of 3 years. On the expiry of 2 nd year, he demands premature withdrawal of his deposit. The interest rate for 2-year maturity deposit is 8.5% p.a. The interest rate payable to him on the said deposit would be (a) 6.50% p.a. (b) 7.50% p.a. (c) 8.00% p.a (d) 9.00% p.a. (e) 10.00% p.a. (1 mark) <Answer> 4. Which of the following statements is/are not true with respect to Government dated securities? I. These securities are issued at discount. II. These securities provide higher liquidity. III. These instruments facilitate implementation of the fiscal policy of the government. (a) Only (I) above (b) Only (III) above (c) Both (I) and (II) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above. (1 mark) <Answer> 5. Which of the following statements is/are true with respect to call rates? I. In the money market call rates are quoted on the annualized basis. II. The rate of interest on call money is calculated on daily basis. III. Low call rates indicate tightness of liquidity in the financial system. IV. Call rate is influenced by forces of supply of and demand for funds. (a) Only (II) above (b) Only (IV) above (c) Both (I) and (II) above (d) (I), (II) and (IV) above (e) All (I), (II), (III) and (IV) above. (1 mark) <Answer>
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 6. A 364-Day T-bill with face value of Rs.100 is trading in the market at annual yield of 7.34%. The purchase price of T-bill is (a) Rs.92.23 (b) Rs.92.64 (c) Rs.92.85 (d) Rs.93.18 (e) Rs.93.56. (1 mark) <Answer> 7. Carbon Ltd. issued 1000 commercial papers maturing after10 months having the face value of Rs.1,00,000 at Rs.98,500 each. The stamp duty payable by the company on such issue is (a) Rs. 50,000 (b) Rs.1,00,000 (c) Rs.1,50,000 (d) Rs.2,00,000 (e) Rs.5,00,000. (1 mark) <Answer> 8. Catholic Ltd. has accepted the public deposits of Rs.1,56,65,000 payable at the end of 27 months. It has the aggregate paid up capital and free reserves of Rs.10,00,00,000. The maximum amount of brokerage payable for soliciting the above deposits is (a) Rs.1,56,650 (b) Rs.2,34,975 (c) Rs.3,13,300 (d) Rs.3,91,625 (e) Rs.2,56,650.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 24

0801 FM (CFA550) - Question Paper Financial Markets...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online