Banking Awareness Based on Primary Market | Daily Banking Awareness Quiz

Banking Awareness Based on Primary Market  | Daily Banking Awareness Quiz 

Banking Awareness is the most important subject in the mains examinations of bank and insurance exams.  Primary Market Quiz is a very vital topic of the Banking awareness section. Primary Market Quiz is a very scoring topic. We are providing  Primary Market quiz based on the banking awareness syllabus. This  Primary Market Quiz provided on our website can be helpful for different exams such as IBPS PO, SBI PO, RRB PO, IBPS clerk, SBI clerk. Primary Market Quiz on our website comes with analysis and explanation highlighting important areas of Banking awareness.

Q1. Many times, we read in newspapers that a company is planning to bring a public issue. What does it mean?
I. Shares of the company will be issued only through public sector organisations like banks/central financial institutions etc.
II. Shares of the company will be issued to general public only through primary market.
III. This means some stakeholders/promoters are willing to leave the company. Hence, they wish to sell their stock to the general public.
Select the correct answer using the codes given below
(a) Only I
(b) Only II
(c) Only III
(d) All of the above
(e) None of the above

Answer & Explanation
Ans.1.(b)
Exp.

Q2. A market where new securities are bought and sold for the first time is known as a __________ market.
(a)Primary
(b)Secondary
(c)Tertiary
(d)Capital
(e)None of these

Answer & Explanation
Ans.2.(a)
Exp.

Q3. Which securities law requires that public offerings be registered with the federal government before they are sold?
(a)Underwritten Rule 144a
(b) Blue Sky Laws
(c)Securities Exchange Act of 1933
(d)Securities Exchange Act of 1934
(e) None of these

Answer & Explanation
Ans.3.(c)
Exp.

Q4. SEBI allows retail investors to apply for shares of Initial Public Offerings without actual transfer of their funds from their accounts. What is this facility known as?
(a) IBA
(b) SEBI
(c) AMFI
(d) NSDL
(e) None of these

Answer & Explanation
Ans.4.(d)
Exp.

Q5. Which of the following is not a method a firm can use to publicly issue common stock?
(a)Private placement
(b)Firm commitment underwriting
(c)Shelf registration
(d)Best efforts offering
(e) None of these

Answer & Explanation
Ans.5.(a)
Exp.

Q6. Which of the following do not issue securities in the primary market?
(a)FIIs
(b)State Governments
(c)Companies
(d)All of these
(e)None of the above

Answer & Explanation
Ans.6.(a)
Exp.

Q7. A best efforts offering is sometimes used in connection with a …………….. of new, long-term securities.
(a)Private placement
(b)Privileged subscription
(c)Public issue
(d)All of the above
(e) None of these

Answer & Explanation
Ans.7.(c)
Exp.

Q8. In primary markets, the first time issued shares to be publicly traded, in stock markets is considered as
(a)Traded offering
(b)Public markets
(c)Issuance offering
(d)Initial public offering
(e) None of these

Answer & Explanation
Ans.8.(d)
Exp.

Q9. The additional debt instruments or equity instruments of publicly traded firm are included in the markets classified as
(a)Flow market
(b)Primary markets
(c)Secondary markets
(d)Funding markets
(e) None of these

Answer & Explanation
Ans.9.(b)
Exp.

Q10. The financial instruments of public markets include
(a)Transfer funds
(b)Bearer bonds
(c)Shares
(d)Bonds
(e) None of these

Answer & Explanation
Ans.10.(c)
Exp.

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