1. It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.
Correct : B. Commercial papers
2. A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
Correct : D. None of the above
3. It is a short-term, negotiable, self-liquidating instrument which is used to finance the
credit sales of firms.
Correct : A. Commercial bill
4. The capital market consists of
Correct : D. All of the above
5. A company can raise capital through the primary market in the form of
Correct : D. All of the above
6. They can be issued to individuals, corporations and companies during periods of tight
liquidity when the deposit growth of banks is slow but the demand for credit is high.
Correct : D. Certificate of deposit
7. Which of the following participants represent capital market?
Correct : D. All of the above
8. Under this method of floatation in primary market, a subscription is invited from general
public to invest in the securities of a company through the issue of advertisement.
Correct : B. Offer through prospectus
9. PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank in turn will offer the shares to general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
Correct : C. Offer for sale
10. Jaykant is holding hundred shares of a company. He has been given a privilege offer to subscribe to a new issue of shares of the same company in proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
Correct : C. Rights issue
11. Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.
Correct : C. Pricing of security.
12. Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the related function of the stock exchange.
Correct : B. Providing liquidity and marketability to existing securities.
13. The process of holding shares in electronic form is known as
Correct : B. Dematerialisation
14. One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered subbrokers. Identify the related function of Securities and Exchange Board of India
Correct : A. Regulatory function
15. It acts like a bank and keeps securities in electronic form on behalf of the investor,
Correct : B. Depository
16. It serves as an intermediary between the investor and the depository who is authorised to
maintain the accounts of dematerialised shares.
Correct : A. Depository Participant
17. It is a number assigned to each transaction by the stock exchange and is printed on the
contract note.
Correct : B. Unique Order Code
18. Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange
Correct : C. Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order
19. The mandatory detail that an investor has to provide to the broker at the time of opening a
demat account is
Correct : B. PAN number
20. It is a legally enforceable document which is issued by a stock broker within 24 hours of
the execution of a trade order.
Correct : C. Contract Note
21. On this day, the exchange will deliver the share or make payment to the other broker,
Correct : B. Pay-out day
22. When is a trade confirmation slip issued to the investor?
Correct : B. On execution of the order
23. After the trade has been executed, the broker issues a Contract Note to the investor within
Correct : B. 24 hours
24. SEBI has constituted a committee under TK Viswanathan for ________.
Correct : A. Fair market conduct
25. SEBI has launched an online registration system for?
Correct : D. Only a and b
26. Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?
Correct : D. Only a and b
27. What is the latest amendment to the FPI regulations by capital and commodities market regulator SEBI?
Correct : B. Barring Indians, NRIs, and entities beneficially owned by NRIs from being owners of participatory notes
28. SEBI has allowed celebs to endorse which products?
Correct : B. Mutual funds
29. SEBI announced plans to tighten regulations for which type of trading?
Correct : C. Algorithmic trading
30. Who has been appointed the new SEBI chief w.e.f March 1, 2017?
Correct : B. Ajay Tyagi
31. Which financial body has asked intermediaries and companies to make regulatory payments in digital mode?
Correct : A. SEBI
32. SEBI has relaxed investment rules for which funds?
Correct : A. Angel Funds
33. SEBI has proposed a set of changes to relax rules and rename the institutional trading platform as what?
Correct : A. High Tech Start Up & Other New Business Platform
34. ___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds, or
other securities.
Correct : B. Mutual Funds
35. The value of one unit of investment in Mutual fund is called the _______________.