MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Financial ---------‐‐‐‐‐ are mainly used for hedging risk. |
| A. | derivatives |
| B. | speculators |
| C. | investors |
| D. | none of these |
| Answer» B. speculators | |
| 2. |
Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner. |
| A. | depository |
| B. | government |
| C. | corporate |
| D. | none of these |
| Answer» B. government | |
| 3. |
A depository is an institution which transfers the ownership of securities in ------------‐‐‐‐ mode. |
| A. | electronic |
| B. | artificial |
| C. | analytical |
| D. | none of these |
| Answer» B. artificial | |
| 4. |
The first stock exchange in India was started in -------------‐‐‐‐‐‐. |
| A. | 1875 |
| B. | 1885 |
| C. | 1895 |
| D. | 1865 |
| Answer» B. 1885 | |
| 5. |
Members of OTCEI are ---------‐‐‐‐ only. |
| A. | corporate |
| B. | derivatives |
| C. | speculators |
| D. | none of these |
| Answer» B. derivatives | |
| 6. |
As -------------‐‐ includes government securities. |
| A. | group b share |
| B. | group a share |
| C. | group g shares |
| D. | none of these |
| Answer» D. none of these | |
| 7. |
---------‐‐‐ 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 these75) -----------‐‐‐‐ are called non‐cleared securities. |
| A. | group b share |
| B. | group a share |
| C. | group g shares |
| D. | none of these |
| Answer» B. group a share | |
| 8. |
An option exercised at any time, it is termed as ---------‐‐‐‐‐‐‐‐‐. |
| A. | american option |
| B. | european option |
| C. | call options |
| D. | none of these |
| Answer» B. european option | |
| 9. |
Which of the following is considered as means off balance sheet financing? School of Distance EducationFinancial Markets Page 13 |
| A. | derivation |
| B. | equities |
| C. | debts |
| D. | none of these |
| Answer» B. equities | |
| 10. |
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» C. call options | |
| 11. |
Securities of -------------‐‐‐ companies are traded in secondary market. |
| A. | listed |
| B. | relisted |
| C. | unlisted |
| D. | none of these |
| Answer» B. relisted | |
| 12. |
-------------‐‐‐‐ is a number which measures the change in a set of values over a periodof time. |
| A. | index |
| B. | sample |
| C. | weightage |
| D. | none of these |
| Answer» B. sample | |
| 13. |
The electronic clearing and Depository system set up by the ---------‐‐‐‐‐‐‐‐. |
| A. | sgl |
| B. | shcil |
| C. | hcl |
| D. | none of these |
| Answer» C. hcl | |
| 14. |
--------------- is a barometer for market behaviour. |
| A. | investment |
| B. | index |
| C. | arbitrage |
| D. | none of these |
| Answer» C. arbitrage | |
| 15. |
------------‐ is a market where unlisted securities are dealing. |
| A. | grey market |
| B. | kerb market |
| C. | capital markets |
| D. | none of these |
| Answer» B. kerb market | |
| 16. |
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» B. open order | |
| 17. |
In the Indian stock exchange, a bull is known as ------------. |
| A. | badla |
| B. | tejiwala |
| C. | mandiwala |
| D. | none of these |
| Answer» C. mandiwala | |
| 18. |
A person who sells the shares with the expectation of buying them in future at areduced price. |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | none of these |
| Answer» C. stag | |
| 19. |
------------‐‐‐ is the person who buys securities with a view to sell them in future at aprofit. |
| A. | speculator |
| B. | issuer |
| C. | stock brokers |
| D. | none of these |
| Answer» B. issuer | |
| 20. |
--------‐‐‐‐‐‐ buy and sell securities on behalf of the investing public. |
| A. | arbitrage |
| B. | commission brokers |
| C. | stock broker |
| D. | none of these |
| Answer» C. stock broker | |
| 21. |
Member of stock exchanges is called ---------------‐‐. |
| A. | stock broker |
| B. | investor |
| C. | issuer |
| D. | none of these |
| Answer» B. investor | |
| 22. |
Speculators who neither buy nor sell securities in the market but still trade on themare called ----------‐‐. |
| A. | wolves |
| B. | stags |
| C. | bears |
| D. | none of these |
| Answer» C. bears | |
| 23. |
A person appointed by a stock broker to assist him in the business of securities tradingis called --------------‐. |
| A. | sub broker |
| B. | tarawaniwalas |
| C. | authorized clerk |
| D. | none of these |
| Answer» D. none of these | |
| 24. |
------------‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on hisown behalf. |
| A. | arbitrage |
| B. | jobber |
| C. | odd lots |
| D. | none of these |
| Answer» C. odd lots | |
| 25. |
Devise adopted to make profit out of the difference in prices of a security in twodifferent markets is called ------------------‐. |
| A. | arbitrage |
| B. | margin trading |
| C. | call option |
| D. | none of these |
| Answer» B. margin trading | |
| 26. |
The numbers of recognized stock exchanges in India is ----------. |
| A. | 20 |
| B. | 21 |
| C. | 22 |
| D. | 23 |
| Answer» C. 22 | |
| 27. |
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» B. stock index | |
| 28. |
Permanent removal of securities of a company from the stock exchange. |
| A. | de-listing |
| B. | re‐ listing |
| C. | listing |
| D. | none of these |
| Answer» B. re‐ listing | |
| 29. |
The Nifty consists of -----------------. |
| A. | 30 stocks |
| B. | 25 stocks |
| C. | 50 stocks |
| D. | 100 stocks |
| Answer» D. 100 stocks | |
| 30. |
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» B. provides weights to shares | |
| 31. |
Listing is mandatory for ------------------. |
| A. | trading in stock market |
| B. | marketing a new issue |
| C. | trading in international markets |
| D. | declaring dividend |
| Answer» B. marketing a new issue | |
| 32. |
Bulls and bears are -------------. |
| A. | ordinary investors |
| B. | government agencies |
| C. | speculators |
| D. | money lenders |
| Answer» D. money lenders | |
| 33. |
The base year of Nifty is -------------. |
| A. | 1992 |
| B. | 1978 |
| C. | 1987 |
| D. | 1995 |
| Answer» E. | |
| 34. |
SENSEX is the index of --------------------. |
| A. | bombay stock exchange |
| B. | national stock exchange |
| C. | cochin stock exchange |
| D. | none of these |
| Answer» B. national stock exchange | |
| 35. |
SEBI has ------------ regional offices. |
| A. | 3 |
| B. | 4 |
| C. | 5 |
| D. | 7 |
| Answer» C. 5 | |
| 36. |
The administrative head office of SEBI is at ------------. |
| A. | new delhi |
| B. | bombay |
| C. | kolkata |
| D. | chennai |
| Answer» C. kolkata | |
| 37. |
Who appoints the chairman of SEBI? School of Distance EducationFinancial Markets Page 8 |
| A. | central government |
| B. | stock exchanges |
| C. | brokers |
| D. | investors |
| Answer» B. stock exchanges | |
| 38. |
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» E. | |
| 39. |
The regulatory body for the securities market in India is ------------. |
| A. | rbi |
| B. | sebi |
| C. | irda |
| D. | stock exchanges |
| Answer» C. irda | |
| 40. |
SEBI Act was passed in -----------------. |
| A. | 1988 |
| B. | 1990 |
| C. | 1991 |
| D. | 1992 |
| Answer» E. | |
| 41. |
SEBI was established in the year----------------. |
| A. | 1992 |
| B. | 1988 |
| C. | 1990 |
| D. | 1989 |
| Answer» C. 1990 | |
| 42. |
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» E. | |
| 43. |
----------------- is also called zero coupon bond. |
| A. | trade bills |
| B. | call money |
| C. | treasury bills |
| D. | commercial papers |
| Answer» D. commercial papers | |
| 44. |
Stock exchange is known as ----------------- market for securities. |
| A. | primary market |
| B. | secondary market |
| C. | capital market |
| D. | none of the above |
| Answer» C. capital market | |
| 45. |
When securities are allotted to institutional investors & some selected individuals isreferred to as -----------------. |
| A. | initial public offer |
| B. | offer through prospectus |
| C. | private placement |
| D. | offer for sale |
| Answer» D. offer for sale | |
| 46. |
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» E. | |
| 47. |
----------------- is the organisations, institutions that provide long term funds. |
| A. | capital market |
| B. | money market |
| C. | primary market |
| D. | secondary market |
| Answer» B. money market | |
| 48. |
----------- is a link between savers & borrowers, helps to establish a link betweensavers & investors |
| A. | marketing |
| B. | financial market |
| C. | money market |
| D. | none of these |
| Answer» C. money market | |
| 49. |
T+2 settlement cycle in a stock exchange means, the trade is settled ------------ daysafter the trade |
| A. | 1 day |
| B. | same day as the trade |
| C. | 2 days |
| D. | 3 days |
| Answer» D. 3 days | |
| 50. |
Which instrument among these have historically shown to give the highest returnswhen invested over long periods? |
| A. | debentures |
| B. | bank deposit |
| C. | equity |
| D. | fixed deposit |
| Answer» D. fixed deposit | |