Get a Pen and Paper and write down your answers separately.
1. Which of these is a function of the stock exchange?
a. Role of an economic barometer
b. Valuation of securities
c. Encouraging investments and savings
d. All of the above
2. Which of these is the regulatory body for the capital markets in India?
a. National Bank for Agriculture and Rural Development (NABARD)
b. Securities and Exchange Board of India (SEBI)
c. Insurance Regulatory and Development Authority (IRDA)
d. Reserve Bank of India (RBI)
3. How many companies are a part of Sensex (Stock Exchange Sensitive Index)?
a. 20
b. 30
c. 50
d.100
4. Which of the following terms is not related to a stock exchange?
a. Knowledge Process Outsourcing (KPO)
b. Net Asset Value (NAV)
c. Initial Public Offering (IPO)
d. National Stock Exchange (NSE)
5. When was NIFTY (National Stock Exchange Fifty) established?
a. 1992
b. 1998
c. 1996
d. 1994
6. A contract between a buyer and a seller, entered on a particular date, regarding a transaction that they will fulfill at a later date, is known as ______.
a. Forward Contract
b. Future Contract
c. Fixed Contract
d. Derivative Contract
7. The first computerized stock exchange in India was ________
a. Bombay Stock Exchange (BSE)
b. Multi Commodity Exchange (MCX)
c. National Stock Exchange (NSE)
d. Over-the-Counter Exchange of India (OCTEI)
8. NIFTY and SENSEX are calculated based on ____________.
a. Free-Float capitalization
b. Market capitalisation
c. Authorised share capital
d. Paid-up capital
9. Which of these derivatives does not get traded in the Indian Stock Exchanges?
a. Forward rate agreements
b. Index options
c. Stock futures
d. Index futures
10. Which of the following options is not available in India?
a. Commodity futures
b. Index options
c. Index futures
d. Commodity options
11. Which of the following statements is valid for mutual funds in India?
a. Entry load is allowed
b. Exit load is not allowed
c. Exit load is allowed in some cases
d. Entry load is not allowed
12. The spot exchange rate is the exchange rate between two currencies for _______.
a. For future delivery
b. For delivery at a particular spot in the future
c. For immediate delivery
d. None of the above
13. Which of these markets allows the trading of securities with less than one year of maturity?
a. Global market
b. Money market
c. Capital market
d. Transaction market
14. The leading suppliers of trading instruments in capital markets are ______.
a. Private corporations
b. Government corporations
c. Manufacturing corporations
d. None of the above
15. The markets where the transactions are done through computers, and telephones, without any specific location, are known as ________.
a. Over-the-counter markets
b. Capital counter markets
c. Last counter markets
d. Future counter markets
16. The Securities and Exchange Board of India (SEBI) is not responsible for _________.
a. Ensuring fair practices by companies
b. Investor protection
c. Improving the earnings of shareholders
d. Promoting efficient services by brokers
17. Which term is apt to describe the payout made to shareholders representing their share in the company’s profits?
a. Dividend
b. Coupon
c. Interest
d. None of the above
18. In primary markets, the property of shares that make it easy to sell newly issued security is called __________.
a. Large funds
b. Increased liquidity
c.Decreased liquidity
d. Money flow
19. The markets where securities instruments are traded directly between buyer and seller are known as ______.
a. Secondary markets
b. Primary markets
c. Tertiary markets
d. None of the above
20. In which year did the Sensex cross the 5000-point mark for the first time?
a. 1991
b. 2002
c. 1999
d. 1996
21. The headquarters of the National Stock Exchange is situated in __________.
a. Mumbai
b. Kolkata
c. Chennai
d. Delhi
22. The promoter of the National Stock Exchange is __________
a. State Bank of India (SBI)
b. Life Insurance Company (LIC) and General Insurance Company (GIC)
c. Industrial Development Bank of India (IDBI)
d. All of the above
23. Which of these trading individuals have a license from the Securities Exchange Board of India (SEBI) to operate in commodity derivative and equity markets?
a. Brokers
b. Clearing members
c. Non Banking Financial Company (NBFC)
d. Both a and b
24. The financial body that has asked intermediaries and companies to make regulatory payments in digital mode is _________.
a. Reserve Bank of India (RBI)
b. Securities Exchange Board of India (SEBI)
c. Bombay Stock Exchange (BSE)
d. National Stock Exchange (NSE)
25. In which market can entities under probe for a severe violation, seek a settlement, if they compensate investors for their losses as per the Securities Exchange Board of India (SEBI) guidelines?
a. Capital market
b. Share market
c. Money market
d. None of the above
26. Which of the following statements is incorrect about the Securities Exchange Board of India (SEBI)?
a. It is a statutory body
b. It was given statutory powers by an ordinance in 1992
c. It is a non-statutory body
d. None of the above
27. Which of the following might be a reason for a stock market to lose value suddenly?
a. A terrorist attack
b. The bankruptcy of a big company
c. Fear of a global recession
d. All of the above
28. Which of the following is responsible for fluctuations in the Sensex?
a. Monetary policy
b.Fiscal policy
c. Political instability
d. All of the above
29. Over the life of a derivative contract, the value of the derivative _________
a. Increases
b. Decreases
c. fluctuates with the price of the so-called “underlying” value of the contract
d. None of the above
30. The forward exchange rate is the rate of exchange between two currencies that is __________
a. Prevailing today for immediate delivery
b. Would prevail at a future date
c. Prevailing today for future delivery
d. None of the above
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