Money and Banking (part – II)

'NIKKEI' (Nikkei 225) is a share price (stock market) index for the Tokyo Stock Exchange.

The S & P 500 or the Standard and poor 500 index, is a market capitalization -weighted index of the 500 leading publicly-traded companies in the United States.

The correctly matched pairs are as follows :

Hence, option (d) is the correct answer.

The correctly matched pairs are as follows :

Shcomp (Shanghai Stock Exchange Composite Index) is the index of Shanghai share market.

Brent Index is related to crude oil prices. It may refer to any or all of the components of the Brent Complex, a physically and financially traded oil market based around the North Sea of Northwest Europe. Hence, option (a) is the correct answer.

Market capitalization of Indian companies in 2007 exceeded its GDP (Gross Domestic Product) level. It reached an all- time high of 146.4% of GDP in December, 2007 and a record low of 23.0% in December, 2001. As per the CEIC Data, India's market capitalization accounted for 124.0% of its Nominal GDP in December 2023, compared with a percentage of 104.8% in the previous year.

Company issues dividends on subscribed capital because subscribed capital is that part of issued capital which is purchased by shareholders. Dividend means the portion of the profit received by the shareholders from the company's net profit. Therefore, dividend is a return on the share capital subscribed for and paid to its shareholders by a company.

A debenture is a medium to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest. Public limited company issues the debenture under the Company Act, 1956 and it is under the guidelines of the SBI. Hence, debenture holders of a company are its creditors.

Debentures are freely, transferable by the debenture holder by the company's agreement, while LIC Policy, Bank FD and Kisan Vikas Patra have fixed ownership, which cannot be changed .

Balance sheet is a snapshot of a company's financial condition at a specific time, usually at the close of an accounting period. A company's balance sheet comprises its assets (e.g. cash inventory etc. ), liabilities (e.g. debt, account payable etc.) and equity (e.g. share capital, retained earnings, reserves, etc.)