McqMate
| 1. |
Which of the following is true? |
| A. | the initial public issues are made in primary market whereas all subsequent issuesare made in the secondary markets. |
| B. | primary markets are legal whereas secondary markets are not. |
| C. | primary markets deal in shares whereas secondary markets are meant fordebentures. |
| D. | corporates raise resources directly from the investors through the primary market,whereas in the secondary markets, investors buy and sell securities from one another. |
| Answer» D. corporates raise resources directly from the investors through the primary market,whereas in the secondary markets, investors buy and sell securities from one another. | |
| 2. |
Which short-term (up to one year) instrument is issued by government as a means offinancing it’s cash requirements? |
| A. | adrs |
| B. | treasury bills |
| C. | equity |
| D. | gdrs |
| Answer» B. treasury bills | |
| 3. |
The benchmark stock market index of India is -------------- |
| A. | s&p 500 |
| B. | nikkei 225 |
| C. | dow jones |
| D. | the nse nifty 50 |
| Answer» D. the nse nifty 50 | |
| 4. |
Which of the following is TRUE about Primary Markets? |
| A. | primary market is the place where public can buy and sell securities from oneanother. |
| B. | primary markets refer to the mobilization of funds from the public by corporatesthrough the issue of shares / debentures. |
| C. | primary markets are places where only short-term instruments are traded. |
| D. | primary markets are markets where commodities are sold. |
| Answer» B. primary markets refer to the mobilization of funds from the public by corporatesthrough the issue of shares / debentures. | |
| 5. |
Money market mutual funds can invest in ------------. |
| A. | treasury bills |
| B. | certificate of deposits |
| C. | commercial paper |
| D. | all of the above |
| Answer» D. all of the above | |
| 6. |
The holders of which instrument are members of the company and have voting rights? |
| A. | commercial paper |
| B. | treasury bill |
| C. | debenture |
| D. | equity |
| Answer» D. equity | |
| 7. |
How can an investor acquire equity shares? |
| A. | secondary market only |
| B. | through the primary market or secondary market |
| C. | money market |
| D. | primary market only |
| Answer» B. through the primary market or secondary market | |
| 8. |
Which of the following is not true about ADR? |
| A. | an adr is a u.s. dollar denominated form of equity ownership in a non-u.s. company. |
| B. | adrs may be used in public or private markets inside or outside us. |
| C. | adrs do not eliminate the currency risk associated with an investment in a nonu.s. company. |
| D. | adr represents the foreign shares of the company held on deposit by a custodian bank in the company\s home country. ad |
| Answer» B. adrs may be used in public or private markets inside or outside us. | |
| 9. |
--------------- is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form. |
| A. | materialisation |
| B. | rematerialisation |
| C. | conversion |
| D. | dematerializations |
| Answer» D. dematerializations | |
| 10. |
Which of the following is not true of Demat account? |
| A. | one is not restricted to having account with only one dp. |
| B. | one does not need to keep any minimum balance of securities in a demat accountwith a dp. |
| C. | one cannot open more than one account with the same dp. |
| D. | one can dematerialise and hold investments such as debt instruments, mutualfund units, government securities etc. in a single demat account. |
| Answer» C. one cannot open more than one account with the same dp. | |
| 11. |
Which of the following is not true about Exchange Traded Funds (ETF)? |
| A. | an etf is like a bank deposit. |
| B. | an etf represents a basket of stocks that reflect an index such as the nifty. |
| C. | an etf\s price changes throughout the day, fluctuating with supply and demand. |
| D. | by owning an etf, you get the diversification of an index fund plus the flexibilityof a stock. |
| Answer» A. an etf is like a bank deposit. | |
| 12. |
Buying and selling of shares can be done through a -------------- |
| A. | depository |
| B. | bank |
| C. | stock exchange |
| D. | finance company |
| Answer» C. stock exchange | |
| 13. |
In the balance sheet of a company, amounts due to the suppliers of goods and services brought on credit, will reflect under the head -----------------. |
| A. | loans and advances |
| B. | current liabilities and provisions |
| C. | miscellaneous expenditure school of distance education financial markets page 4 |
| D. | contingent liabilities |
| Answer» B. current liabilities and provisions | |
| 14. |
Equity shares have mostly ----------------- all other forms of investments in the long term. |
| A. | remained neutral when compared to |
| B. | outperformed |
| C. | underperformed |
| D. | given negative returns when compared to |
| Answer» C. underperformed | |
| 15. |
Which of the following problems have been eliminated by Depositories? |
| A. | reduction in the share transfer time to the buyer. |
| B. | risk of stolen, fake, forged shares. |
| C. | stamp duty on transfer of shares in dematerialized form. |
| D. | all of the above |
| Answer» D. all of the above | |
| 16. |
Which is/are the ways by which companies can raise foreign currency resources? |
| A. | american depository share |
| B. | global depository receipts |
| C. | euro issues |
| D. | all of the above |
| Answer» D. all of the above | |
| 17. |
Which of the following has voting rights in a company? |
| A. | equity shareholders |
| B. | creditors |
| C. | debenture holders |
| D. | preference shareholders |
| Answer» A. equity shareholders | |
| 18. |
What is an Index? |
| A. | a basket of shares |
| B. | an indicator of market movement. |
| C. | an indicator of the economic conditions of the country. |
| D. | all of the above |
| Answer» D. all of the above | |
| 19. |
Listing of securities means -----------------. |
| A. | admission of securities of an issuer to trading privileges without a formal agreement with the stock exchange |
| B. | admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement school of distance education financial markets page 5 |
| C. | admission of securities of an issuer to clearing privileges on a stock exchange without a formal agreement |
| D. | admission of securities of an issuer to clearing privileges on a stock exchange |
| Answer» B. admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement school of distance education financial markets page 5 | |
| 20. |
Nifty index is used in ----------------. |
| A. | derivatives |
| B. | index funds |
| C. | exchange traded funds (etfs) |
| D. | all of the above |
| Answer» D. all of the above | |
| 21. |
Which instrument among these have historically shown to give the highest returns when invested over long periods? |
| A. | debentures |
| B. | bank deposit |
| C. | equity |
| D. | fixed deposit |
| Answer» C. equity | |
| 22. |
Which of the following is true about mutual fund? |
| A. | mutual funds are risk-free investments. |
| B. | mutual funds assure fixed returns. |
| C. | in mutual funds the target investors are the high-net-worth investors. |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 23. |
T+2 settlement cycle in a stock exchange means, the trade is settled ------------ days after the trade |
| A. | 1 day |
| B. | same day as the trade |
| C. | 2 days |
| D. | 3 days |
| Answer» C. 2 days | |
| 24. |
As Who are the participants in the Securities Market? |
| A. | investor |
| B. | intermediaries, such as merchant bankers, brokers etc. |
| C. | issuers, i.e., companies who issue shares |
| D. | all of the above |
| Answer» D. all of the above | |
| 25. |
The safer the debt instrument, the ----------------- is the rate of interest. |
| A. | lower school of distance education |
| B. | higher |
| C. | safety of debt instrument will not have any impact on the interest rate |
| D. | none of the above |
| Answer» A. lower school of distance education | |
| 26. |
----------- is a link between savers & borrowers, helps to establish a link between savers & investors |
| A. | marketing |
| B. | financial market |
| C. | money market |
| D. | none of these |
| Answer» B. financial market | |
| 27. |
Which of the following is the function of financial market? |
| A. | mobilization of savings |
| B. | price fixation |
| C. | provide liquidity to financial assets |
| D. | all of the above |
| Answer» D. all of the above | |
| 28. |
----------------- is the organisations, institutions that provide long term funds. |
| A. | capital market |
| B. | money market |
| C. | primary market |
| D. | secondary market |
| Answer» A. capital market | |
| 29. |
When securities are allotted to institutional investors & some selected individuals is referred to as -----------------. |
| A. | initial public offer |
| B. | offer through prospectus |
| C. | private placement |
| D. | offer for sale |
| Answer» C. private placement | |
| 30. |
Stock exchange is known as ----------------- market for securities. |
| A. | primary market |
| B. | secondary market |
| C. | capital market |
| D. | none of the above |
| Answer» B. secondary market | |
| 31. |
----------------- is also called zero coupon bond. |
| A. | trade bills |
| B. | call money |
| C. | treasury bills |
| D. | commercial papers |
| Answer» C. treasury bills | |
| 32. |
Which of the following are the instruments of money market? |
| A. | call money |
| B. | certificate of deposits |
| C. | trade bills |
| D. | all of the above |
| Answer» D. all of the above | |
| 33. |
SEBI was established in the year----------------. |
| A. | 1992 |
| B. | 1988 |
| C. | 1990 |
| D. | 1989 |
| Answer» B. 1988 | |
| 34. |
SEBI Act was passed in -----------------. |
| A. | 1988 |
| B. | 1990 |
| C. | 1991 |
| D. | 1992 |
| Answer» D. 1992 | |
| 35. |
The objectives of SEBI include -------------. |
| A. | to protect interests of inventors |
| B. | to regulate securities market |
| C. | to promote the development of the market |
| D. | all of the above |
| Answer» D. all of the above | |
| 36. |
The regulatory body for the securities market in India is ------------. |
| A. | rbi |
| B. | sebi |
| C. | irda |
| D. | stock exchanges |
| Answer» B. sebi | |
| 37. |
Who appoints the chairman of SEBI? |
| A. | central government |
| B. | stock exchanges |
| C. | brokers |
| D. | investors |
| Answer» A. central government | |
| 38. |
The administrative head office of SEBI is at ------------. |
| A. | new delhi |
| B. | bombay |
| C. | kolkata |
| D. | chennai |
| Answer» B. bombay | |
| 39. |
SEBI has ------------ regional offices. |
| A. | 3 |
| B. | 4 |
| C. | 5 |
| D. | 7 |
| Answer» B. 4 | |
| 40. |
SENSEX is the index of --------------------. |
| A. | bombay stock exchange |
| B. | national stock exchange |
| C. | cochin stock exchange |
| D. | none of these |
| Answer» A. bombay stock exchange | |
| 41. |
The base year of Nifty is -------------. |
| A. | 1992 |
| B. | 1978 |
| C. | 1987 |
| D. | 1995 |
| Answer» D. 1995 | |
| 42. |
Bulls and bears are -------------. |
| A. | ordinary investors |
| B. | government agencies |
| C. | speculators |
| D. | money lenders |
| Answer» C. speculators | |
| 43. |
Listing is mandatory for ------------------. |
| A. | trading in stock market |
| B. | marketing a new issue |
| C. | trading in international markets |
| D. | declaring dividend |
| Answer» A. trading in stock market | |
| 44. |
A stock market index -------------. |
| A. | shows trends in the market |
| B. | provides weights to shares |
| C. | show the volume of trade in market |
| D. | shows transactions of shares |
| Answer» A. shows trends in the market | |
| 45. |
Permanent removal of securities of a company from the stock exchange. |
| A. | de-listing |
| B. | re‐ listing |
| C. | listing |
| D. | none of these |
| Answer» A. de-listing | |
| 46. |
The Nifty consists of -----------------. |
| A. | 30 stocks |
| B. | 25 stocks |
| C. | 50 stocks |
| D. | 100 stocks |
| Answer» C. 50 stocks | |
| 47. |
A control system on excessive fluctuation in stock market prices is called-------------. |
| A. | circuit breaker |
| B. | stock index |
| C. | depository |
| D. | none of these |
| Answer» A. circuit breaker | |
| 48. |
The numbers of recognized stock exchanges in India is ----------. |
| A. | 20 |
| B. | 21 |
| C. | 22 |
| D. | 23 |
| Answer» D. 23 | |
| 49. |
Devise adopted to make profit out of the difference in prices of a security in two different markets is called ------------------‐. |
| A. | arbitrage |
| B. | margin trading |
| C. | call option |
| D. | none of these |
| Answer» A. arbitrage | |
| 50. |
------------‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on his own behalf. |
| A. | arbitrage |
| B. | jobber |
| C. | odd lots |
| D. | none of these |
| Answer» B. jobber | |
| 51. |
A person appointed by a stock broker to assist him in the business of securities trading is called --------------‐. |
| A. | sub broker |
| B. | tarawaniwalas |
| C. | authorized clerk |
| D. | none of these |
| Answer» C. authorized clerk | |
| 52. |
Speculators who neither buy nor sell securities in the market but still trade on them are called ----------‐‐. |
| A. | wolves |
| B. | stags |
| C. | bears |
| D. | none of these |
| Answer» B. stags | |
| 53. |
Member of stock exchanges is called ---------------‐‐. |
| A. | stock broker |
| B. | investor |
| C. | issuer |
| D. | none of these |
| Answer» A. stock broker | |
| 54. |
--------‐‐‐‐‐‐ buy and sell securities on behalf of the investing public. |
| A. | arbitrage |
| B. | commission brokers |
| C. | stock broker |
| D. | none of these |
| Answer» B. commission brokers | |
| 55. |
------------‐‐‐ is the person who buys securities with a view to sell them in future at a profit. |
| A. | speculator |
| B. | issuer |
| C. | stock brokers |
| D. | none of these |
| Answer» A. speculator | |
| 56. |
A person who sells the shares with the expectation of buying them in future at a reduced price. |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | none of these |
| Answer» B. bear | |
| 57. |
In the Indian stock exchange, a bull is known as ------------. |
| A. | badla |
| B. | tejiwala |
| C. | mandiwala |
| D. | none of these |
| Answer» B. tejiwala | |
| 58. |
An order for the purchase of securities of a fixed price is known as --------------‐‐‐‐. |
| A. | limit order |
| B. | open order |
| C. | stop loss order |
| D. | none of these |
| Answer» A. limit order | |
| 59. |
The electronic clearing and Depository system set up by the ---------‐‐‐‐‐‐‐‐. |
| A. | sgl |
| B. | shcil |
| C. | hcl |
| D. | none of these |
| Answer» B. shcil | |
| 60. |
------------‐ is a market where unlisted securities are dealing. |
| A. | grey market |
| B. | kerb market |
| C. | capital markets |
| D. | none of these |
| Answer» A. grey market | |
| 61. |
--------------- is a barometer for market behaviour. |
| A. | investment |
| B. | index |
| C. | arbitrage |
| D. | none of these |
| Answer» B. index | |
| 62. |
-------------‐‐‐‐ is a number which measures the change in a set of values over a period of time. |
| A. | index |
| B. | sample |
| C. | weightage |
| D. | none of these |
| Answer» A. index | |
| 63. |
Securities of -------------‐‐‐ companies are traded in secondary market. |
| A. | listed |
| B. | relisted |
| C. | unlisted |
| D. | none of these |
| Answer» A. listed | |
| 64. |
Which of the following is considered as means off balance sheet financing? |
| A. | derivation |
| B. | equities |
| C. | debts |
| D. | none of these |
| Answer» A. derivation | |
| 65. |
An option exercised at the time of maturity it is termed as ----------‐‐‐‐‐‐‐‐‐. |
| A. | american option |
| B. | european option |
| C. | call options |
| D. | none of these |
| Answer» B. european option | |
| 66. |
An option exercised at any time, it is termed as ---------‐‐‐‐‐‐‐‐‐. |
| A. | american option |
| B. | european option |
| C. | call options |
| D. | none of these |
| Answer» A. american option | |
| 67. |
---------‐‐‐ options are contract where exercise price is equal to spot price.
|
| A. | group b share |
| B. | group a share |
| C. | group g shares |
| D. | none of these |
| Answer» A. group b share | |
| 68. |
As -------------‐‐ includes government securities. |
| A. | group b share |
| B. | group a share |
| C. | group g shares |
| D. | none of these |
| Answer» C. group g shares | |
| 69. |
Members of OTCEI are ---------‐‐‐‐ only. |
| A. | corporate |
| B. | derivatives |
| C. | speculators |
| D. | none of these |
| Answer» A. corporate | |
| 70. |
The first stock exchange in India was started in -------------‐‐‐‐‐‐. |
| A. | 1875 |
| B. | 1885 |
| C. | 1895 |
| D. | 1865 |
| Answer» A. 1875 | |
| 71. |
A depository is an institution which transfers the ownership of securities in ------------ ‐‐‐‐ mode. |
| A. | electronic |
| B. | artificial |
| C. | analytical |
| D. | none of these |
| Answer» A. electronic | |
| 72. |
Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner. |
| A. | depository |
| B. | government |
| C. | corporate |
| D. | none of these |
| Answer» A. depository | |
| 73. |
Financial ---------‐‐‐‐‐ are mainly used for hedging risk. |
| A. | derivatives |
| B. | speculators |
| C. | investors |
| D. | none of these |
| Answer» A. derivatives | |
| 74. |
A combination of forwards by 2 counter‐parties with opposite but matching need is called ------------------. |
| A. | swap |
| B. | forward |
| C. | future |
| D. | none of these |
| Answer» A. swap | |
| 75. |
Agreed price of --------------‐‐‐ contract is known as strike price. |
| A. | future |
| B. | option |
| C. | swap |
| D. | none of these |
| Answer» A. future | |
| 76. |
------------‐ gives the option holder a right to buy an underlying asset at an exercise price in future. |
| A. | call option |
| B. | put option |
| C. | call and put |
| D. | none of these |
| Answer» B. put option | |
| 77. |
Most of the speculative purchases are made on the basis of ---------‐‐‐‐‐‐‐‐‐. |
| A. | margin trading |
| B. | arbitrage |
| C. | wash sale |
| D. | none of these |
| Answer» A. margin trading | |
| 78. |
The ratio of financial assets is ---------‐‐‐‐‐‐‐‐‐‐ of economic growth. |
| A. | an indicator |
| B. | the market value |
| C. | the basis |
| D. | the prestige value |
| Answer» A. an indicator | |
| 79. |
Capital market is a market for ----------‐‐‐‐‐ capital. |
| A. | long term capital |
| B. | short term capital |
| C. | working capital |
| D. | fixed capital |
| Answer» A. long term capital | |
| 80. |
SEBI stands for -----------‐‐‐‐‐‐‐. |
| A. | securities exchange board of india |
| B. | stock exchange board of india |
| C. | securities and exchange board of india |
| D. | stock earn board of india |
| Answer» C. securities and exchange board of india | |
| 81. |
Equity shares are the ----------‐‐‐‐‐‐ shares of a limited company |
| A. | voting |
| B. | ordinary |
| C. | limited |
| D. | unlimited |
| Answer» B. ordinary | |
| 82. |
Equity shares and preference shares are ownership securities, also known as ----------- ----‐‐. |
| A. | debt capital |
| B. | capital stock |
| C. | fixed capital |
| D. | capital issue |
| Answer» B. capital stock | |
| 83. |
Bonds, debentures etc. are creditor ship securities, also known as -----------‐‐‐‐‐‐‐‐‐. |
| A. | debt capital |
| B. | capital stock |
| C. | working capital |
| D. | capital issue |
| Answer» A. debt capital | |
| 84. |
Equity shares with detachable warrants will enable the warrant holder to apply for specified number of ------------‐‐‐‐ at determined price. |
| A. | preference shares |
| B. | equity shares |
| C. | bonds |
| D. | debentures |
| Answer» B. equity shares | |
| 85. |
-------------‐‐‐‐ issued by the central government or state governments are referred to as government securities. |
| A. | instruments |
| B. | securities |
| C. | bonds |
| D. | shares |
| Answer» B. securities | |
| 86. |
Government securities are also called ------------‐‐‐‐‐‐‐ because of the safety and security of investments made in them and regularity of return. |
| A. | gift‐edged securities |
| B. | long term securities |
| C. | short term securities |
| D. | investments |
| Answer» A. gift‐edged securities | |
| 87. |
Government securities are issued through ---------‐‐‐‐ of RBI. |
| A. | public debt office |
| B. | sebi |
| C. | dfhi |
| D. | stock exchange |
| Answer» A. public debt office | |
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