17 MAY 2021 | CAPF AC 2021 EXAM QUESTIONS

1) Question

The main difference between money market and capital market pertains to

Short-term vs. long-term borrowing of funds

Regulation vs. non-regulation

National vs. international character

All of the above

2) Question

Algorithmic trading in financial markets refers to

Any high frequency trading (HFT)

Automatic transaction orders generated using mathematical models

A trade happening outside of the conventional exchanges based on a pre-decided future contract

Any trading that does not obey the laws of spot trading

3) Question

Venture capitalists and Angel Investors invest in

Only debt-ridden ventures

Promising start-ups

Overseas companies that round-trip money

Corporate bonds issued by blue chip companies

4) Question

What kind of assets are permitted to be included in mutual funds (MFs)?

1) Equity

2) Debt bills issued by companies

3) Government bonds

Select the correct answer using the codes below.

1 only

2 and 3 only

1 and 3 only

1, 2 and 3

5) Question

Central Counterparty (CCP) is an entity that exists in European countries to

Facilitate trading done in derivatives and equities markets

Guard joint borders of European Union

Coordinate defence equipment related export production

Fund mining investments in Least Developed Countries (LDCs)