69-Merchant Banking

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Merchant Banking for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. A merchant bank is a financial institution conducting money market activities and which of the following?

[A] Lending
[B] Underwriting and financial advice
[C] Investment service
[D] All of the above

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2. Formal merchant banking activity in India was originated in which of the following years?

[A] 1978
[B] 1969
[C] 1769
[D] 1987

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3. In India, merchant-banking activity was originated with the merchant banking division set up by which of the following?

[A] Grind lays bank
[B] Barclays bank
[C] Yes bank
[D] None of the above

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4. State Bank of India started merchant banking in whichof the following years?

[A] 1974
[B] 1978
[C] 1973
[D] 1980

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5. The early growth of merchant banking in the country is assigned to the which of the following?

[A] Foreign Exchange Regulation Act, 1973
[B] Securities Contracts Act
[C] Income-tax Act

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6. Which of the following is the developmental activities of merchant banking?

[A] Sources of funds forever
[B] Expanding industry and trade
[C] Leaving a widening gap unbridged between supply and demand of investible funds
[D] All of the above

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7. The term ‘Merchant Bank’ is used in whivh of the following countries?

[A] United States of America
[B] United Kingdom
[C] France
[D] India

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8. Which of the following is true about merchant bank?

[A] Underwrites securities for corporations
[B] Advice clients on mergers
[C] Involved in ownership of commercial ventures
[D] All of the above

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9. Issue management is an important function of which of the following?

[A] Public banker
[B] Lead banker
[C] Merchant banker
[D] Private banker

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10. ICICI started merchant banking in which of the following years?

[A] 1980
[B] 1978
[C] 1981
[D] 1974

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