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80+ Financial Markets Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Arts in Economics (MA Economics) .

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) At the money (b) In the money (c) Out the money (d) None of these
75) -----------‐‐‐‐ are called non‐cleared securities.

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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