Chapter-10-Financial Markets 

MCQ-Based Questions for CUET Business Studies Chapter-10-Financial Markets 

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Practice Questions for CUET Business Studies chapter-10-Financial Markets SET-1

Business Studies - MCQ on Financial Markets

Class XII

Q.1. The market for medium and long-term funds or securities is called

a. money market.

b. wholesale market.

c. retail market.

d. capital market.

Answer:

(d)

Explanation: In capital market, medium and long-term securities are traded.

Q.2. NSEI stands for

a. National Stock Exchange of India.

b. Nifty Stock Exchange of India.

c. New Stock Exchange of India.

d. Next Stock Exchange of India.

Answer:

(a)

Explanation: NSEI stands for National Stock Exchange of India. It was set up in 1992 and started its operations in 1994. It provides online trading facilities and electronic clearing and settlements. The companies having a paid-up capital of Rs 3 crores and above are eligible for listing in NSEI.

Q.3. The securities traded at NSEI are

a. capital market securities.

b. current market securities.

c. short-term securities.

d. capital market securities and money market securities.

Answer:

(d)

Explanation: NSEI trades capital as well as money market securities such as equity, debentures, T-bills commercial papers, etc.

Q.4. The other name for secondary market is

a. retail market.

b. wholesale broker market.

c. stock exchange.

d. money exchange.

Answer:

(c)

Explanation: Stock exchange deals with the sale of previously issued securities.

Q.5. OTCEI stands for

a. On the Court Exchange of India.

b. On the Cost Exchange of India.

c. Off the Court Exchange of India.

d. Over the Counter Exchange of India.

Answer:

(d)

Explanation: OTCEI stands for Over the Counter Exchange of India. It was established in 1992 and is a recognised stock exchange. The companies having a paid-up capital from Rs 30 lakhs upto Rs 25 crores are eligible for listing in OTCEI. A company listed in OTCEI is not allowed to be listed in any other stock exchange and the company listed in any other exchage cannot list in OTCEI.

Q.6. In stock exchange, trading means

a. buying commodities.

b. buying and selling securities.

c. selling goods.

d. receiving dividend and interest on securities.

Answer:

(b)

Explanation: Stock trading is the word used for trading securities.

Q.7. SEBI was constituted by

a. RBI.

b. NSEI.

c. capital market.

d. the Government of India.

Answer:

(d)

Explanation: The Government of India constituted SEBI in 1988 as an administrative body. It was made a statutory body in 1992 under Securities and Exchange Board of India Act 1992.

Q.8. The components of capital market are

a. primary and tertiary market.

b. secondary market and tertiary market.

c. primary and secondary market.

d. primary and new shares market.

Answer:

(c)

Explanation: The primary and secondary markets are collectively called capital market.

Q.9. Treasury bill is an instrument of

a. capital market.

b. money market.

c. primary market.

d. secondary market.

Answer:

(b)

Explanation: The RBI issues T-Bills on behalf of the Government of India. These are generally issued at a discount and repaid at par. These are issued for a period of 14 days to one year in the multiples of Rs 25,000.

Q.10. One of the advantages of capital market is that

a. they provide funds to investors.

b. they provide funds to the industry.

c. they reduce the savings of the investors.

d. they reduce the government sources of revenue.

Answer:

(b)

Explanation: Industrial houses and government can use the capital market as a source of funds required for asset building and public utilities. In this way, capital market helps in the economic growth of the country as a whole.

Q.11. From an investor’s point of view, capital market

a. is riskier than money market.

b. is safer than money market.

c. offers money for short-term.

d. is always profitable.

Answer:

(a)

Explanation: Capital market allows trading of long-term or medium term funds. Lending for long-term is riskier because the borrower may not remain financially sound for a long period of time.

Q.12. Capital market helps in

a. spending money.

b. building planning premises.

c. promoting savings.

d. designing organisation structure.

Answer:

(c)

Explanation: Capital market provides a platform to the investors of funds and the borrowers of funds to interact with each other directly or through intermediaries such as broker, underwriting firms, etc.

Q.13. When the company issues shares to a limited number of clients and not to the public, it is called

a. limited issue.

b. client issue.

c. private placement.

d. confidential placement.

Answer:

(c)

Explanation: Private placement means issuing securities to a limited number of clients, which make the issue less costly.

Q.14. When a trade bill is accepted by a bank, it becomes a

a. loan.

b. capital market instrument.

c. commercial bill.

d. currency.

Answer:

(c)

Explanation: Trade bills become commercial bills when they are accepted by a bank.

Q.15. The market for short-term funds is called

a. money market.

b. wholesale market.

c. retail market.

d. capital market.

Answer:

(a)

Explanation: In money market, short-term securities are traded.

Q.16. The interest paid on call money is termed as

a. interest on call money.

b. call rate.

c. call interest.

d. one-day interest.

Answer:

(b)

Explanation: The interest paid on call money by one bank to other is called call rate. It varies from day to day and even from hour to hour.

Q.17. Treasury bills are issued in the multiples of

a. Rs 1,000.

b. Rs 10,000.

c. Rs 25,000.

d. Rs 50,000.

Answer:

(c)

Explanation: T-bills are issued in the multiples of Rs 25,000, e.g., Rs 25,000, Rs 50,000, Rs 75,000 and so on.

Q.18. The highly organised financial market where shares, debentures and other securities are bought and sold is called

a. stock exchange.

b. primary market.

c. retail market.

d. money market.

Answer:

(a)

Explanation: Stock exchange is also called the secondary market because it facilitates trading of existing or already issued securities. We cannot purchase new securities from stock exchange.

Q.19. The main source of working capital for an enterprise is

a. capital market.

b. primary market.

c. money market.

d. secondary market.

Answer:

(c)

Explanation: Money market provides a platform to a company for raising money for day to day operations. A company can borrow from money market for a maximum period of one year.

Q.20. SENSEX stands for

a. Sensing Experts.

b. Sensitive Experts.

c. Sensitive Index.

d. Sensitive Exceptions.

Answer:

(c)

Explanation: Sensex word is used in relation to Bombay Stock Exchange. Sensex is the short form of Bombay Stock Exchange Sensitive Index or BSE SENSEX. SENSEX is composed of 30 of the largest and the most actively traded stocks on the Bombay Stock Exchange.

Q.21. A selected group of fifty shares of National Stock Exchange or NSE of India is called

a. NIFTY.

b. capitalisation.

c. SENSEX.

d. units.

Answer:

(a)

Explanation: NIFTY is a group of top fifty companies in NSE. It is also called NIFTY FIFTY.

Q.22. The full form of SEBI is

a. Shares Exchange Board of India.

b. Share Equity Board of India.

c. Stock Equity Basis of Investment.

d. Securities and Exchange Board of India.

Answer:

(d)

Explanation: The Securities and Exchange Board of India is the regulator for the securities market in India. It was originally set up as an administrative body in 1988 and acquired statutory form in 1992 with SEBI Act 1992. Its head office is situated in the city of Mumbai, Maharashtra. It has northern regional office at New Delhi, eastern regional office at Kolkata and southern regional office at Chennai.

Q.23. Call money is an instrument of

a. capital market.

b. primary market.

c. secondary market.

d. money market.

Answer:

(d)

Explanation: Call money refers to day to day surplus funds of banks. This money is borrowed by a bank, which has shortage of funds. Call money is borrowed for a few days and can be taken for a day only.

Q.24. The securities, which are bought and sold at stock exchange, are called

a. SENSEX.

b. unlisted securities.

c. listed securities.

d. NIFTY.

Answer:

(c)

Explanation: Listed securities are the securities that have been included for trading in stock exchange list.

Q.25. One of the advantages of capital market is that

a. it provides profitable investment options.

b. it helps in increasing the planning premised.

c. it reduces the availability of funds.

d. it helps to reduce the capital formation.

Answer:

(a)

Explanation: Capital market provides investment opportunities to investors. The investors can invest in securities of different growing organisations. If the organisation grows, the money of the investor also multiplies.

Q.26. Equity and preference shares, debentures, bonds, bills of exchange and commercial certificates are collectively called

a. shares.

b. investments.

c. securities.

d. loans.

Answer:

(c)

Explanation: These things are called securities. They are traded in stock exchange, which is why, they are also called securities market.

Q.27. Initial Public Offer(IPO), rights issue and preferential issue are the methods of issuing shares in

a. secondary market.

b. money market.

c. primary market.

d. wholesale market.

Answer:

(c)

Explanation: Primary market means selling securities for the first time and IPO, rights issue and preferential issue are meant for fresh issue of securities.

Q.28. The main object of setting up OTCEI was

a. to discourage investments.

b. to spend the money of investors.

c. to provide a nationwide investor base to small companies.

d. to assist large corporations in issuing prospectus.

Answer:

(c)

Explanation: OTCEI was set up to address the needs of small business organisations. It is termed as a second tier exchange for small investors.

Q.29. The other name for treasury bills is

a. call money.

b. commercial paper.

c. securities.

d. zero coupon bonds.

Answer:

(d)

Explanation: Treasury bills are also called zero coupon bonds.

Q.30. BSE stands for

a. Banker’s Stock Exchange.

b. Bilateral Stock Exchange.

c. Bombay Shares Exchange.

d. Bombay Stock Exchange.

Answer:

(d)

Explanation: BSE stands for Bombay Stock Exchange.

Q.31. In rights issue, the price of shares issued is

a. higher than the market price.

b. lower than the market price.

c. equal to market price.

d. nil.

Answer:

(b)

Explanation: Rights issue offers an advantage to the existing shareholders because the shares are priced at a lower price than the market price. The existing shareholders can either buy these shares or transfer them to someone else.

Q.32. Trade bills or bills of exchange are usually issued for

a. 30 days.

b. 90 days.

c. six months.

d. one year.

Answer:

(b)

Explanation: Trade bills are normally issued for 90 days. However, they can be issued for any duration as per the convenience of drawer and payer.

Q.33. The other name for CRR is

a. liquidity ratio.

b. current ratio.

c. cash ratio.

d. bank money ratio.

Answer:

(a)

Explanation: Cash reserve ratio is also called liquidity ratio because it helps to create enough money with the bank to meet the depositors’ daily cash demands.

Q.34. Capital market helps the investors by

a. reducing their investments.

b. reducing their interest or dividends.

c. providing them liquidity.

d. giving them overdraft.

Answer:

(c)

Explanation: Securities in the capital market can be sold or purchased at any time. In this way, these securities help in maintaining the liquidity, so that they can be converted into cash at any time.

Q.35. OTCEI facilitates trading in

a. money market securities.

b. capital market securities.

c. commercial papers.

d. call money and commercial bills.

Answer:

(b)

Explanation: Only long-term securities such as equity shares and debentures are traded in OTCEI.

Q.36. The other name for primary market is

a. second market.

b. first market.

c. new shares or new issue market.

d. old shares market.

Answer:

(c)

Explanation: Primary market deals with the first time issuing of shares, that is why, it is also called new shares market.

Q.37. IPO stands for

a. Internal Preferential Offer.

b. Initial Preferential Offer.

c. International Public Offer.

d. Initial Public Offer.

Answer:

(d)

Explanation: IPO means the first time sale of securities by an organisation to the public.

Q.38. The market in which securities are sold for the first time is called

a. money market.

b. primary market.

c. secondary market.

d. stock exchange.

Answer:

(b)

Explanation: The primary market deals with the issue of new securities. In this market, the enterprise directly issues securities to the investors.

Q.39. Two national level exchanges are

a. Bombay Stock Exchange and Chennai Stock Exchange.

b. OTCEI and NIFTY.

c. NSEI and OTCEI.

d. BSE and NSEI.

Answer:

(c)

Explanation: NSEI and OTCEI are national level exchanges.

Q.40. A member of stock exchange who is specialist in only one type of securities is called

a. broker.

b. bulls.

c. bears.

d. jobbers.

Answer:

(d)

Explanation: Jobber is a member of stock exchange. Unlike brokers, jobber doesn’t trade on behalf of others. Jobber buys and sells securities on his own behalf. He earns profits by selling securities at a higher price. Jobber is called Tarawaniwala in Mumbai Stock Exchange.

Q.41. The market for borrowing short-term funds is called

a. stock exchange.

b. IPO.

c. money market.

d. capital market.

Answer:

(c)

Explanation: Money market is used for borrowing short-term funds up to one year.

Q.42. One of the objectives of SEBI is

a. to facilitate the purchase of shares.

b. to facilitate sale of assets.

c. to prohibit fraudulent and unfair trade practices.

d. to prohibit share trading.

Answer:

(c)

Explanation: It is the responsibility of SEBI to check the unfair practices followed by companies.

Q.43. The physical location of the primary market is

a. located in the secondary market.

b. not fixed.

c. located in the stock exchange.

d. decided by the investors.

Answer:

(b)

Explanation: Securities are sold as per the direction of the issuing company.

Q.44. The offer of new shares by an existing company to its existing shareholders is called

a. reserve issue.

b. repetitive issue.

c. existing issue.

d. rights issue.

Answer:

(d)

Explanation: Rights issue means issuing shares to the existing shareholders in proportion to their existing shareholdings.

Q.45. Unsecured promissory note issued by a company as a money market instrument is called

a. commercial paper.

b. trade bill.

c. certificate of deposits.

d. Initial public offer.

Answer:

(a)

Explanation: Commercial papers are unsecured promissory notes, that is why, they are issued only by creditworthy firms.

Q.46. Capital market and money market are collectively called

a. financial market.

b. wholesale market.

c. assets market.

d. retail market.

Answer:

(a)

Explanation: Financial market includes both capital market and money market.

Q.47. Trade bill or bill of exchange is an instrument of money market. Trade bills

a. can be negotiated.

b. cannot be negotiated or transferred.

c. cannot be discounted.

d. cannot be endorsed.

Answer:

(a)

Explanation: Trade bills are negotiable instruments. They have legal validity and can be transferred for settling monetary claims.

Q.48. One of the objectives of SEBI is

a. to allow the sale of commodities in stock exchange.

b. to educate the investors.

c. to facilitate trading of industrial goods.

d. to ignore the frauds by investors.

Answer:

(b)

Explanation: SEBI informs the investors about the functioning of the stock market so that they are not cheated by fraudulent companies.

Q.49. Primary market is a type of

a. money market.

b. retail market.

c. capital market.

d. wholesale market.

Answer:

(c)

Explanation: Capital market can be classified as primary market or secondary market. Primary market is also called new issue market and secondary market is also called stock exchange.

Q.50. CRR stands for

a. call reversal rate.

b. cash reserve ratio.

c. cost rise rate.

d. cost rate reversal.

Answer:

(b)

Explanation: CRR stands for Cash Reserve Ratio. Call money is the instrument that a bank uses to maintain the minimum requirement of CRR. The object of maintaining minimum CRR is to maintain enough liquidity with the bank to meet customer withdrawal demands in time. If CRR is 10%, it means that the banks can lend Rs 90 to borrowers of the money in case it receives a deposit of Rs 100 from depositors.

Q.51. Treasury bills are issued for

a. one week only.

b. a day to two weeks only.

c. 14 days to 364 days.

d. two years.

Answer:

(c)

Explanation: T-bills are issued for a period ranging from 14 days to 364 days.

Q.52. Rajat wants to buy shares of Tata consultancy. The market where he would find these shares is

a. primary market.

b. secondary market.

c. commodity market.

d. money market.

Answer:

(b)

Explanation: As the organisation is an existing one, its shares can be purchased from secondary market.

Q.53. The speculators who expect a rise in the price of the securities in future and buy them at present so that they can sell them at higher prices in future are called

a. bears.

b. brokers.

c. bulls.

d. jobbers.

Answer:

(c)

Explanation: Such speculators are called bulls. They are called so because a bull always looks upwards. They are called Tejiwala in Mumbai stock exchange.

Q.54. ABC limited issues an IPO to raise funds for starting the business. The market in which ABC Ltd will raise funds is called

a. secondary market.

b. monetary market.

c. commodity market.

d. primary market.

Answer:

(d)

Explanation: If the company issues share for the first time, it will issue them in the primary sector.

Q.55. The physical location of the secondary market is

a. not fixed.

b. fixed at the stock exchange.

c. fixed at the office of the company.

d. fixed as per the directions of investor.

Answer:

(b)

Explanation: Securities are traded in the stock exchange in the second and subsequent time.

Q.56. Certificate of Deposits (CD) is an instrument of

a. capital market.

b. money market.

c. primary market.

d. secondary market.

Answer:

(b)

Explanation: CD is a type of fixed deposit but it is marketable or transferable. It is issued at a discount and is an unsecured negotiable instrument.

Q.57. One of the objectives of SEBI is

a. to ignore the malpractices being practiced by the companies.

b. to ignore the cheating being done by shareholders.

c. to promote good practices in the stock market.

d. to facilitate dealing of commodities in the share market.

Answer:

(c)

Explanation: SEBI frames rules, which help improve the environment of the market and affect good governance.

Q.58. Trade bill is an instrument of

a. capital market.

b. money market.

c. primary market.

d. secondary market.

Answer:

(b)

Explanation: These bills are drawn by one businessmen on another. These are normally drawn for a period of 90 days.

Q.59. The market, which deals in financial assets, is called

a. financial market.

b. retail market.

c. wholesale market.

d. main market.

Answer:

(a)

Explanation: Financial market deals in financial assets such as deposits, shares, and debentures, etc.

Q.60. A person who assumes high risks to achieve large capital gains often without regard for the safety of his invested principal is called a

a. speculator.

b. shareholder.

c. director.

d. liquidator.

Answer:

(a)

Explanation: A speculator is a person who takes risks in buying and selling of securities for earning high profits. The activity of speculator is called speculation.

Q.61. The payment for the transaction in OTCEI is to be made within

a. 7 days.

b. 15 days.

c. one month.

d. three months.

Answer:

(a)

Explanation: In OTCEI, the payment is to be made within 7 days of the transaction.

Q.62. The speculators who expect a fall in price in future and sell the securities at present so that they can buy them at lower prices in future are called

a. jobbers.

b. bears.

c. bulls.

d. brokers.

Answer:

(b)

Explanation: Such speculators who expect the prices of securities to fall are referred as bears. They are called so because a bear always looks downward on the ground. The term used for them in Mumbai Stock Exchange is Mandiwala.

Q.63. Commercial Papers (CP) are instruments of

a. money market.

b. capital market.

c. primary market.

d. secondary market.

Answer:

(a)

Explanation: Commercial paper is a money market instrument. It is an unsecured promissory note issued by companies.

Q.64. The supervisory body which regulates and promotes the securities market is called

a. OTCEI.

b. BSEI.

c. SEBI.

d. NSEI.

Answer:

(c)

Explanation: Securities and Exchange Board Of India looks after the trading in the securities market. It ensures that the regulations set up to protect the interests of companies and investors are followed strictly.

Q.65. Treasury bills are issued

a. at a discount.

b. at a premium.

c. at par.

d. free of charge.

Answer:

(a)

Explanation: T-bills are issued at a discount because no interest is charged on them. The difference between issue price and maturity amount of T-bill is considered as discount. For example, a treasury bill of 100 days and face value of Rs 1,00,000 issued at a price of Rs 94,000. This means that the borrower will receive Rs 94,000 at the time of borrowing and will pay Rs 1,00,000 to RBI on maturity after 100 days. In this way Rs. 6,000 can be considered as an interest for 100 days.

Q.66. The object of SEBI is to promote investor’s interests in

a. primary market only.

b. secondary market only.

c. primary and secondary market.

d. capital and monetary market.

Answer:

(d)

Explanation: SEBI promotes investors’ interests both in money market and capital market.

Q.67. A person who is a member of the stock exchange and buys and sells securities on behalf of outsiders is called

a. broker.

b. agent.

c. advisor.

d. official authority.

Answer:

(a)

Explanation: Brokers are the members of stock exchange who deals in all kinds of securities. Brokers charge commission or brokerage for their services from buyers and sellers of securities. A broker is licensed to buy securities on his behalf or on his customer’s behalf.

Q.68. A fast in and out speculator who is in a market to make a quick profit is called

a. broker.

b. jobber.

c. stag.

d. bear.

Answer:

(c)

Explanation: A stag does not buy shares for long or medium term investments. He is the one who applies for new shares and intends to sell them at once at a premium.

Q.69. In rights issue, shares are issued to the existing shareholders. This way of issuing shares is a

a. convenient way of raising money.

b. costly way of raising funds.

c. complicated way of raising money.

d. lengthy way of raising money.

Answer:

(a)

Explanation: In rights issue, the company doesn’t issue prospectus so in this way considerable time and money are saved.

Q.70. Secondary market makes the securities

a. increase in value.

b. decrease in value.

c. marketable.

d. non-negotiable.

Answer:

(c)

Explanation: It is the secondary market, which provides a platform to the existing shareholders to sell their securities.

It works as a mediator between buyers and sellers of existing securities.

Q.71. The issue of securities to the promoters of the company is called

a. promoters issue.

b. promoters allotment.

c. preferential issue.

d. preferential allotment.

Answer:

(c)

Explanation: Preferential issue is cheaper than public issue or IPO.

Q.72. One of the objectives of SEBI is

a. to prohibit the trading of securities.

b. to prohibit the practices, which are beneficial to investors.

c. to prescribe the procedure for issuing inventory.

d. to regulate the business of stock market.

Answer:

(d)

Explanation: SEBI formulates rules to make sure that trading of securities is done in a way that does not deceive investors or company.

Q.73. In NSEI, the payment for the transaction is to be made within

a. 7 days.

b. 15 days.

c. 30 days.

d. 90 days.

Answer:

(b)

Explanation: The payment for the transaction in NSEI is to be made within 15 days.

Q.74. Treasury bills are issued by

a. the Government of India.

b. The Reserve bank of India.

c. the Central Bank of India.

d. the Securities Exchange and Regulatory Board.

Answer:

(b)

Explanation: RBI issues T-bills.

Q.75. In secondary market or stock exchange, securities are sold by

a. employees of the organisation.

b. the organisation.

c. the investors.

d. by the government.

Answer:

(c)

Explanation: Secondary market involves selling again. The securities are first sold to the investors in primary market. These investors then sell these securities in the secondary market to earn profit or liquidate them in case of financial needs.

Q.76. The first step in buying and selling of securities in the stock market is

a. settling the payments.

b. finding the broker.

c. receiving the order from shareholders.

d. listing of a company.

Answer:

(d)

Explanation: The shares of only listed companies can be traded in a stock exchange. For trading in securities the first thing that a company needs to get done is to get it listed in stock exchange.

Business Studies - MCQ on Financial Market

Practice Questions for CUET Business Studies chapter-10-Financial Markets SET-3

Q.1. Which of the following market is for short-term funds

Capital Market

Money Market

Bothe of them

None of them.

Answer:

Money Market is a market for the short term funds.

Q.2. Capital Markets is meant for

Long term funds

Medium term funds

Short Term funds

Both (a) and (b)

Answer:

Exp: Capital Market is for Long term funds, Medium term funds.

Q.3. Which of the following is not a financial institute

UTI

IDBI

SBI

FCI

Answer:

Exp: FCI stands for Food Corporation of India.

Q.4. What is an Stock Exchange

A market where securities are only sold

A market where securities are only bought

A market where securities are bought and sold

None of these

Answer:

Exp: Stock Exchange is a market where existing securities are bought and sold.

Q.5. Expand NSEI

National Station Exchange of India

National Seed Experiment of India

National Stock Exchange of India

National Sales Enterprise of India

Answer:

NSEI stands for National Stock Exchange of India.

Q.6. In which year was SEBI setup

1989

1988

1979

1980

Answer:

SEBI was setup in 1988 to regulate the functions of the securities market.

Q.7. Which is a regulatory function of SEBI

It conducts enquiries of stock exchanges.

It prohibits insider training

It promotes to educate investors.

None of these

Answer:

SEBI conducts enquiries and the audits of stock exchanges.

Q.8. When was NSE setup

1989

1990

1991

1992

NSE was setup in 1992.

Q.9. Expand DFHI

Delhi Financial house of India

Discount Finance House of India

Discount for Higher Income

Discount for House hold Income

Answer:

Discount Finance House of India provides the ready market for money market instruments.

Q.10. In which of the following city/cities are Stock Exchange located

Pune

Delhi

Mumbai

All the above

Q.11. Which of the following is/are the functions of SEBI

Protective Functions

Development Functions

Regulatory Functions

All of the above.

Q.12. Screen based trading refers to

Electronic trading

Regular Trading

Narrow trading

None of these

Answer:

Exp: Screen based trading is done through the computer.

Q.13. In which year SEBI was granted legal status

1991

1992

1993

1994

Answer:

Exp: SEBI was granted legal status in May 1992.

Q.14. In how many days is the payment and delivery on NSE is completed

12 Days

15 Days

18 Days

20 Days

Answer:

Exp: It takes 15 days to complete the payment and delivery on NSE.

Q.15. The function of Stock Exchange to provide a ready and continuous market for the sale and purchase of securities is termed as

Liquidity function

Valuation

Safety of dealing

None of these

Answer:

Exp: Liquidity function of SEBI is to provide ready market for the sale and purchase of securities.

Q.16. The offer of new shares by a company to existing shareholders

Rights Issue

Preference Shares

Debentures

None of these

Answer:

Exp: Rights Issue is meant for existing shareholders.

Q.17. In which year was Securities Contracts (Regulation) Act started

1955

1956

1957

1958

Answer:

Exp:

Q.18. When was the first stock exchange in India set up

1870

1873

1875

1877

Answer:

Exp: First stock exchange was setup in 1875. It is now known as Bombay Stock Exchange.

Q.19. Expand OCTEI.

Over the Counter Exchange of India

Outstanding Credit of Exchange in India

Over Credit Exchange of India

None of these

Answer:

Exp: OCTEI is a part of three tier form of India securities Market.

Q.20. Which of the following is/are the function/s of tock Exchange

Providing Liquidity

Pricing of securities

Safety of transactions

All of the above

Answer:

Exp: Stock exchanges performs a number of functions.

Q.21. Bulls and Bears refers to

Animals

Market sentiments of investors

Stock market

None of these

Answer:

Exp: Bulls and Bears refers to Market sentiments of investors.

Q.22. Which of the following is another name for the Stock Market

BULLS

BEARS

BADLA

PENNY STOCKS

Answer:

Exp: BADLA is another name for the stock Markets.

Q.23. Bullish phase refers to

Period of optimism

Period of Pessimism

Both of them

None of these

Answer:

Exp: Bullish phase refers to period of optimism.

Q.24. Registration of brokers and sub-brokers is a _________function of SEBI.

Regulatory Function

Development Function

Protective Function

None of these

Answer:

Exp: Registration of brokers and sub-brokers is one of the regulatory functions of SEBI.

Q.25. To educate the investors is a __________ function of SEBI.

Regulatory Function

Development Function

Protective Function

None of these

Answer:

Exp: To educate the investors is one of the Development Functions of SEBI.

Q.26. What do we call a stock market trend that is neither bullish nor bearish

Flat Market

Stable Market

Chicken Market

None of these

Answer:

Exp: When market is flat it is called Chicken Market.

Q.27 How many Stock Exchange are there in India

21

22

23

24

Answer:

Exp: There are 23 stock Exchange in INDIA

Q.28 What is the popular name of 'Phiroze Jeejebhoy Towers'

Bombay Stock Exchange

National Stock Exchange

Calcutta Stock Exchange

None of these

Answer:

Exp: Bombay Stock Exchange is the name of 'Phiroze Jeejebhoy Towers'.