What Is EFT?

Correct Answer: Secondary market refers to market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange

Correct Answer: It is statement of balances of all the accounts in the ledger prepared to prove the arithmetical accuracy of the books of accounts A trial Balance is a list of Debit and Credit or a list of Debit & Credit Balance of all the ledger accounts prepared on any particular date

Correct Answer: Rupess is the currency of our country and only govt has the authority to issue indian currency it has been signed by ministry of finance, all other notes are bearer notes which are signed by governor no interference by RBI RBI has the right to print currency notes in the country except coins & 1 Re note which are issued by Govt Thus, it bears the sign of MoF

Correct Answer: Investment and asset are really close in meaning Investment is when you put your money in stock, bond or other financial instruments Whereas Asset is what you own generally reffered to land, proprietorship , factory, etc

Correct Answer: In business, a takeover is the purchase of one company by another

Correct Answer: Hedging is a tool to minimize the risks It is thus like an 'insurance' where one pays a premium but gets an assured amount in case of some uncertain event to the extent of the loss actually suffered on an equally opposite position for which the hedge was done Thus, hedger is different from arbitrageur and speculators, as the intention here is not to maximize the profit but to minimize the loss Eg In Capital Markets, suppose an investor has an equity portfolio of Rs 2 lacs and the portfolio consists of all the major stocks of NIFTY He thinks the market will improve in the long run but might go on a downside in the shortrun NIFTY today stands at 4300 To minimize the risk of downfall, he enters into an option contract by buying NIFTY-PUT of strike 4300 at a premium of, say, Rs 100 Thus, the actual amount paid is Rs 5,000(lot size of NIFTY is 50) Also, the number of NIFTY-PUTs to be bought will vary on the beta of the portfolio so as to completely hedge the positon

Correct Answer: A Treasury Bill (known as T-Bill) is an instrument of money market, used to finance short term requirements of Government of a country A T-Bill is issued at a rate lower than the Face value, and redeemed at Face value on maturity, this difference is the rate of interest on T-Bill This rate of interest is called Risk free Rate of the country

Correct Answer: Lender

Explanation:

Someone who receives money in exchange for a promise to pay it back later is called a borrower1, and the person making the loan is the lender.

Correct Answer: It helps you to balance your risk across different types of investments.

Correct Answer: Jumping inflation

Explanation:

Galloping inflation is also known as jumping inflation.

 

It refers to a type of inflation that occurs when the prices of goods and services increase at the two-digit or three-digit rate per annum.