Correct : 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?
Correct : B. treasury bills
3. The benchmark stock market index of India is --------------
Correct : D. the nse nifty 50
4. Which of the following is TRUE about Primary Markets?
Correct : 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 ------------.
Correct : D. all of the above
6. The holders of which instrument are members of the company and have voting rights?
Correct : D. equity
7. How can an investor acquire equity shares?
Correct : B. through the primary market or secondary market
8. Which of the following is not true about ADR?
Correct : 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.
Correct : D. dematerializations
10. Which of the following is not true of Demat account?
Correct : 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)?
Correct : A. an etf is like a bank deposit.
12. Buying and selling of shares can be done through a --------------
Correct : 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 -----------------.
Correct : B. current liabilities and provisions
14. Equity shares have mostly ----------------- all other forms of investments in the long
term.
Correct : C. underperformed
15. Which of the following problems have been eliminated by Depositories?
Correct : D. all of the above
16. Which is/are the ways by which companies can raise foreign currency resources?
Correct : D. all of the above
17. Which of the following has voting rights in a company?
Correct : A. equity shareholders
18. What is an Index?
Correct : D. all of the above
19. Listing of securities means -----------------.
Correct : 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 ----------------.
Correct : D. all of the above
21. Which instrument among these have historically shown to give the highest returns
when invested over long periods?
Correct : C. equity
22. Which of the following is true about mutual fund?
Correct : D. none of the above.
23. T+2 settlement cycle in a stock exchange means, the trade is settled ------------ days
after the trade
Correct : C. 2 days
24. As Who are the participants in the Securities Market?
Correct : D. all of the above
25. The safer the debt instrument, the ----------------- is the rate of interest.
Correct : A. lower school of distance education
26. ----------- is a link between savers & borrowers, helps to establish a link between
savers & investors
Correct : B. financial market
27. Which of the following is the function of financial market?
Correct : D. all of the above
28. ----------------- is the organisations, institutions that provide long term funds.
Correct : A. capital market
29. When securities are allotted to institutional investors & some selected individuals is
referred to as -----------------.
Correct : C. private placement
30. Stock exchange is known as ----------------- market for securities.
Correct : B. secondary market
31. ----------------- is also called zero coupon bond.
Correct : C. treasury bills
32. Which of the following are the instruments of money market?
Correct : D. all of the above
33. SEBI was established in the year----------------.
Correct : B. 1988
34. SEBI Act was passed in -----------------.
Correct : D. 1992
35. The objectives of SEBI include -------------.
Correct : D. all of the above
36. The regulatory body for the securities market in India is ------------.
Correct : B. sebi
37. Who appoints the chairman of SEBI?
Correct : A. central government
38. The administrative head office of SEBI is at ------------.
Correct : B. bombay
39. SEBI has ------------ regional offices.
Correct : B. 4
40. SENSEX is the index of --------------------.
Correct : A. bombay stock exchange
41. The base year of Nifty is -------------.
Correct : D. 1995
42. Bulls and bears are -------------.
Correct : C. speculators
43. Listing is mandatory for ------------------.
Correct : A. trading in stock market
44. A stock market index -------------.
Correct : A. shows trends in the market
45. Permanent removal of securities of a company from the stock exchange.
Correct : A. de-listing
46. The Nifty consists of -----------------.
Correct : C. 50 stocks
47. A control system on excessive fluctuation in stock market prices is called-------------.
Correct : A. circuit breaker
48. The numbers of recognized stock exchanges in India is ----------.
Correct : B. 21
49. Devise adopted to make profit out of the difference in prices of a security in two
different markets is called ------------------‐.
Correct : A. arbitrage
50. ------------‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on his
own behalf.
Correct : B. jobber
51. A person appointed by a stock broker to assist him in the business of securities trading
is called --------------‐.
Correct : C. authorized clerk
52. Speculators who neither buy nor sell securities in the market but still trade on them
are called ----------‐‐.
Correct : B. stags
53. Member of stock exchanges is called ---------------‐‐.
Correct : A. stock broker
54. --------‐‐‐‐‐‐ buy and sell securities on behalf of the investing public.
Correct : B. commission brokers
55. ------------‐‐‐ is the person who buys securities with a view to sell them in future at a
profit.
Correct : A. speculator
56. A person who sells the shares with the expectation of buying them in future at a
reduced price.
Correct : B. bear
57. In the Indian stock exchange, a bull is known as ------------.
Correct : B. tejiwala
58. An order for the purchase of securities of a fixed price is known as --------------‐‐‐‐.
Correct : A. limit order
59. The electronic clearing and Depository system set up by the ---------‐‐‐‐‐‐‐‐.
Correct : B. shcil
60. ------------‐ is a market where unlisted securities are dealing.
Correct : A. grey market
61. --------------- is a barometer for market behaviour.
Correct : B. index
62. -------------‐‐‐‐ is a number which measures the change in a set of values over a period
of time.
Correct : A. index
63. Securities of -------------‐‐‐ companies are traded in secondary market.
Correct : A. listed
64. Which of the following is considered as means off balance sheet financing?
Correct : A. derivation
65. An option exercised at the time of maturity it is termed as ----------‐‐‐‐‐‐‐‐‐.
Correct : B. european option
66. An option exercised at any time, it is termed as ---------‐‐‐‐‐‐‐‐‐.
Correct : 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.
Correct : A. group b share
68. As -------------‐‐ includes government securities.
Correct : C. group g shares
69. Members of OTCEI are ---------‐‐‐‐ only.
Correct : A. corporate
70. The first stock exchange in India was started in -------------‐‐‐‐‐‐.
Correct : A. 1875
71. A depository is an institution which transfers the ownership of securities in ------------
‐‐‐‐ mode.
Correct : A. electronic
72. Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner.
Correct : A. depository
73. Financial ---------‐‐‐‐‐ are mainly used for hedging risk.
Correct : A. derivatives
74. A combination of forwards by 2 counter‐parties with opposite but matching need is
called ------------------.
Correct : A. swap
75. Agreed price of --------------‐‐‐ contract is known as strike price.
Correct : A. future
76. ------------‐ gives the option holder a right to buy an underlying asset at an exercise
price in future.
Correct : B. put option
77. Most of the speculative purchases are made on the basis of ---------‐‐‐‐‐‐‐‐‐.
Correct : A. margin trading
78. The ratio of financial assets is ---------‐‐‐‐‐‐‐‐‐‐ of economic growth.
Correct : A. an indicator
79. Capital market is a market for ----------‐‐‐‐‐ capital.
Correct : A. long term capital
80. SEBI stands for -----------‐‐‐‐‐‐‐.
Correct : C. securities and exchange board of india
81. Equity shares are the ----------‐‐‐‐‐‐ shares of a limited company
Correct : B. ordinary
82. Equity shares and preference shares are ownership securities, also known as -----------
----‐‐.
Correct : B. capital stock
83. Bonds, debentures etc. are creditor ship securities, also known as -----------‐‐‐‐‐‐‐‐‐.
Correct : A. debt capital
84. Equity shares with detachable warrants will enable the warrant holder to apply for
specified number of ------------‐‐‐‐ at determined price.
Correct : B. equity shares
85. -------------‐‐‐‐ issued by the central government or state governments are referred to
as government securities.
Correct : B. securities
86. Government securities are also called ------------‐‐‐‐‐‐‐ because of the safety and
security of investments made in them and regularity of return.
Correct : A. gift‐edged securities
87. Government securities are issued through ---------‐‐‐‐ of RBI.