Chapter: Indian Capital Market
1.

What is an Indian depository receipt?

A. A deposit account with a public sector bank.
B. It is a depository account with any of the depositories in India.
C. An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.
D. None of the above is correct.
Answer» A. A deposit account with a public sector bank.
2.

Capital market regulator is:

A. R B I
B. I R D A
C. N S E
D. B S E
Answer» D. B S E
3.

Which of the following organisations provides a guarantee to the exporters?

A. Exim Bank
B. Export Credit Guarantee Corporation (E C G C)
C. Director General Foreign Trade
D. Reserve Bank of India
Answer» B. Export Credit Guarantee Corporation (E C G C)
4.

The financial Market where debt and stocks are traded and maturity period is more than a year is classified as:

A. Shorter term Markets
B. Capital Markets
C. Counter Markets
D. Long-term Markets
Answer» B. Capital Markets
5.

The market in which new Securities are issued by the Corporations to raise funds are called:

A. Primary Markets
B. Secondary Markets
C. Gross Markets
D. Proceeds Markets
Answer» A. Primary Markets
6.

Which type of preference Shares can be converted into equity?

A. Redeemable Bonds
B. Convertible Bonds
C. Non- Convertible Bonds
D. All of the above
Answer» B. Convertible Bonds
7.

Which is not one of the development steps taken for Capital Market?

A. Open Outcry
B. Book Building
C. Establishing SEBI
D. Screen Based Trading
Answer» A. Open Outcry
8.

Which of the following is least risky:

A. Equity
B. Corporate Bonds
C. Treasury Bills
D. Certificate of Deposits
Answer» C. Treasury Bills
9.

Which security holders will receive arrears of the non- payment of dividends by the Company during the loss?

A. Cumulative Preference Share Holders
B. Non- Cumulative Preference Share Holders
C. Convertible Preference Share Holder
D. Ordinary Equity Holders
Answer» A. Cumulative Preference Share Holders
10.

What is the simple example of Stock Index in India:

A. NSE
B. Sensex
C. BSE
D. SEBI
Answer» B. Sensex
11.

The amount which is paid at the time of maturity of the bond is equal to:

A. Face Value
B. Yield
C. Coupon
D. Discounted Price
Answer» A. Face Value
12.

Which one of the following agencies in the Indian Capital market has authority to regulate the Mutual fund markets in India?

A. IRDA
B. SEBI
C. RBI
D. IBPS
Answer» C. RBI
13.

In capital market the major suppliers of trading Instruments are:

A. Government and corporations
B. Liquid Corporations
C. Instrumental Corporations
D. Manufacturing Corporations
Answer» A. Government and corporations
14.

In primary markets, the property of shares which made it easy to sell newly issued security is concerned as:

A. Increased Liquidity
B. Decreased Liquidity
C. Money Flow
D. Large Funds
Answer» A. Increased Liquidity
15.

The transaction costs of trading of financial Instruments in centralized market is classified as:

A. Flexible Costs
B. Low transaction Costs
C. High Transaction Costs
D. Constant Costs
Answer» B. Low transaction Costs
16.

In primary market, the first time issued shares to be publicly traded, in stock market is considered as:

A. Traded Offering
B. Public Markets
C. Issuance Offering
D. Initial Public Offering
Answer» D. Initial Public Offering
17.

The exchange markets and over the counter markets are considered as two types of:

A. Floating market
B. Risky market
C. Secondary market
D. Primary market
Answer» C. Secondary market
18.

The bonds that are backed by cash flow from project and are sold to finance particular project are classified as:

A. Finance Bonds
B. Revenue Bonds
C. Financing Bonds
D. Project Bonds
Answer» B. Revenue Bonds
19.

The Component of Capital Market are:

A. Equity Market
B. Debt Market
C. Derivative Market
D. All of the above
Answer» D. All of the above
20.

There are ___________ categories of Industrial Security Market.

A. 1
B. 2
C. 3
D. 4
Answer» B. 2
21.

Who controls the capital market in India?

A. SEBI
B. RBI
C. IRDA
D. NABARD
Answer» A. SEBI
22.

Which of the following words does not belong to the stock exchange?

A. KPO
B. NAV
C. NSE
D. IPO
Answer» A. KPO
23.

Which term most accurately describes selling shares at a higher price than the price at which they were bought?

A. Loss
B. Profit
C. Asset
D. Dividend
Answer» B. Profit
24.

How many companies are included in the SENSEX?

A. 50
B. 111
C. 30
D. None
Answer» C. 30
25.

Which of the following statements is true?

A. SEBI was established in 1988
B. The Harshad Mehta share scandal happened in 1992
C. Unit Trust of India was established in 1954
D. SEBI is not a constitutional body
Answer» C. Unit Trust of India was established in 1954
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