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Advanced Wealth Management Course (IIBF) - Paper 1
Part I: Ch 2:Participants in the Indian Fin System
Q1.
Which of the following has an intermediary correctly paired with the financial market in which it usually operates?
Q2.
Life insurance companies are required to maintain policyholder assets in statutory assets.
Q3.
Which of the following statements is the most accurate?
Q4.
An intermediary serves as an agent between lenders and borrowers; once they are brought together, the lender acquires a direct financial claim on the borrower.
Q5.
(I) Fund managers have specialist skills in investing large pools of money. (II) In direct financing, the lender is bearing all the risk, although they may offset this to an extent by taking a charge over the borrower’s assets.
Q6.
The cost of intermediation is the fee charged by the intermediary through the imposition of interest rates and other charges.
Q7.
(I) Financial intermediaries are able to match lenders directly with borrowers. (II) The distinction between the wholesale and retail market is linked to the size and nature of the transaction.
Q8.
_____________ usually underwrite equity issues.
Q9.
____________ handles the issue of Government securities and also performs open market operations in securities.
Q10.
(I) In India, the financial system is based mainly on indirect funds flow. (II) RBI is empowered to provide emergency liquidity support in the event of threats to the stability of the financial system.
Q11.
_______________, which specializes in providing financial services to the wholesale market.
Q12.
Which of the following investment option/s available to the retail investor.
Q13.
Acquisitions are currently administered by
Q14.
Liquid mutual funds have given retail investors access to wholesale interest rates by pooling investor’s fund.
Q15.
(I) The role of the financial intermediary in foreign exchange dealing is to pool the risk of adverse exchange movements. (II) Funds at call in general pay a higher rate than funds committed for a specific term.

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