1.

the fee based activity of a financial intermediary is Capital issue management

2. The following one is a financial asset share

3. The component of a capital market is government securities market

4. The money market instrument is certificate of deposit

5. The major player in the Indian money market is commercial banks

6. The process off managing the sales ledger of a client by a financial service company is called
Factoring

7. Loan syndication refers to assistance rendered by merchant banks to get mainly term loans for
projects.

8. Government bond is a long-term security

9. CRISIL Stands for credit rating and information services of India

10. Investor protection is the major responsibility of SEBI

11The important goal of the financial service industry is to mobilize and allocate savings

12Underwriting of shares by a financial intermediary is a kind of fund based activity.

13.custodial services are mainly provided to foreign investors.

14.Deep discount bonds are sold at a large discount to their nominal value.

15.To regulate the securities market and to protect the investor’s interest SEBI has been created by the
government of India

16.The minimum net worth for the first category of merchant banker is 1 CRORE

17.A merchant banker can claim a charge 0.5 % as the commission for the whole issue.

18.Merchant banks deal with funds raised through money market and capital market

19.The lead merchant banker under category I shall accept a minimum underwriting of 5.5 % of total
underwriting commitment or 25 lacs whichever is less.

20.Brokers to the issue accept applications along with subscriptions through their designated branches.

21. Financial Market can be defined as the market in which financial assets are created or
transferred. As against a real transaction that involves exchange of money for real goods or
services, a financial transaction involves creation or transfer of a financial asset..
22. The capital market is designed to finance the long-term investments. The transactions taking
place in this market will be for periods over a year.
23. securitization
The process through which an issuer creates a financial instrument by combining other financial
assets and then marketing different tiers of the repackaged instruments to investors. The process can
encompass any type of financial asset and promotes liquidity in the marketplace.

A securitization is a financial transaction in which assets are pooled and securities

representing interests in the pool are issued. An example would be a financing company that
has issued a large number of auto loans and wants to raise cash so it can issue more loans.
One solution would be to sell off its existing loans, but there isn't a liquid secondary market
for individual auto loans. Instead, the firm pools a large number of its loans and sells interests
in the pool to investors. For the financing company, this raises capital and gets the loans off
its balance sheet, so it can issue new loans. For investors, it creates a liquid investment in
a diversified pool of auto loans, which may be an attractive alternative to a corporate bond or
other fixed income investment. The ultimate debtors—the car owners—need not be aware of
the transaction. They continue making payments on their loans, but now those payments flow
to the new investors as opposed to the financing company.

24.new product deveploment

NDP is a process which designed to develop, test and consider the viability of products
which are new to the market in order to ensure the Growth or survival of the organisation.

25.Financial Engineering
Financial engineering is a process that utilizes existing financialinstruments to create a new and
enhanced product of some type. Just about any combination of financial instruments and products can
be used in financial engineering. The process may involve a simple union between two products, or
make use of several different products to create a new product that provides benefits that none of the
other instruments could manage on their own.

26.Derivative security
Afinancialsecurity, such as anoptionor future, whosecharacteristicsandvaluedepend on the
characteristics and value of anunderlying security.
A derivative security, also known as a derivative stock, is afinancial instrument whose price is dependent on
one or a number of underlying financial assets. In itself, the derivative security is no more than an agreement
between two contracted parties to buy or sell an asset at a fixed price on or before a date of expiration. The
value of the security is dictated by the value of the underlying asset, which is usually a stock, a commodity, a
bond, currency,interest rates or markets indexes. Derivative securities usually are valued by using a version of
the Black-Scholes Option Pricing Model.

27.Classify the financial services.

There are different types of financial services like lending money for different purposes,
insurances, depository services, mortgage services, investment services, credit rating services
and many more. The different types of financial services company jointly create one of the
largest industries of the world.
Financial services are basically deal with merchant banks, credit card companies, consumer
finance companies, stock brokerages or with the management of money. In the term of
earning, financial services are the largest industry in the world that represents 20 percent of
the market capitalization.

28.financial instruments
Financial instruments are legal documents that embody monetary value. There are a number of
different types of documents that are properly identified as a financial instrument. Under the broad
heading of a financial instrument, some would be classified as cash instruments or derivative
instruments.

29.merchant banking
Merchant banks invest their own capital in client companies and provide fee-based advice services for mergers and
acquisitions, among other services they provide.

Merchant banking practices take care of the needs of commercial international finance, stock underwriting, and long-term
company loans. This type of bank primarily works with other merchant banks and financial institutions with its prominent
role being that of stock underwriting, and the bank works in the realm of private equity where securities of a company are
not available for public trading.

Of the most common private equity investment strategies, these include venture capital, leveraged buyouts, distressed
investments, growth capital, and mezzanine capital. Leveraged buyouts generally obtain majority control over existing or
mature firms, whereas growth capital and venture gains invest in younger or emerging corporations without obtaining the
majority of control.

30. Money market

The money market is a component of the financial markets for assets involved in short-term
borrowing and lending with original maturities of one year or shorter time frames. Trading in
the money markets involvesTreasury bills, commercial paper, bankers' acceptances,
certificates of deposit, federal funds, and short-lived mortgage- and asset-backed securities.
[1]
It provides liquidity funding for the global financial system.
A segment of the financial market in which financial instruments with high liquidity and very short maturities
are traded. The money market is used by participants as a means for borrowing and lending in the short term,
from several days to just under a year. Money market securities consist of negotiable certificates of deposit
(CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and
repurchase agreements (repos).