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This set of Financial Markets Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets Set 2
Q1 | ----------- is a link between savers & borrowers, helps to establish a link betweensavers & investors
- marketing
- financial market
- money market
- none of these
Q2 | Which of the following is the function of financial market?
- mobilization of savings
- price fixation
- provide liquidity to financial assets
- all of the above
Q3 | ----------------- is the organisations, institutions that provide long term funds.
- capital market
- money market
- primary market
- secondary market
Q4 | When securities are allotted to institutional investors & some selected individuals isreferred to as -----------------.
- initial public offer
- offer through prospectus
- private placement
- offer for sale
Q5 | Stock exchange is known as ----------------- market for securities.
- primary market
- secondary market
- capital market
- none of the above
Q6 | ----------------- is also called zero coupon bond.
- trade bills
- call money
- treasury bills
- commercial papers
Q7 | Which of the following are the instruments of money market?
- call money
- certificate of deposits
- trade bills
- all of the above
Q8 | SEBI was established in the year----------------.
- 1992
- 1988
- 1990
- 1989
Q9 | SEBI Act was passed in -----------------.
- 1988
- 1990
- 1991
- 1992
Q10 | The objectives of SEBI include -------------.
- to protect interests of inventors
- to regulate securities market
- to promote the development of the market
- all of the above
Q11 | The regulatory body for the securities market in India is ------------.
- rbi
- sebi
- irda
- stock exchanges
Q12 | Who appoints the chairman of SEBI?School of Distance EducationFinancial Markets Page 8
- central government
- stock exchanges
- brokers
- investors
Q13 | The administrative head office of SEBI is at ------------.
- new delhi
- bombay
- kolkata
- chennai
Q14 | SEBI has ------------ regional offices.
- 3
- 4
- 5
- 7
Q15 | SENSEX is the index of --------------------.
- bombay stock exchange
- national stock exchange
- cochin stock exchange
- none of these
Q16 | The base year of Nifty is -------------.
- 1992
- 1978
- 1987
- 1995
Q17 | Bulls and bears are -------------.
- ordinary investors
- government agencies
- speculators
- money lenders
Q18 | Listing is mandatory for ------------------.
- trading in stock market
- marketing a new issue
- trading in international markets
- declaring dividend
Q19 | A stock market index -------------.
- shows trends in the market
- provides weights to shares
- show the volume of trade in market
- shows transactions of shares
Q20 | Permanent removal of securities of a company from the stock exchange.
- de-listing
- re‐ listing
- listing
- none of these
Q21 | The Nifty consists of -----------------.
- 30 stocks
- 25 stocks
- 50 stocks
- 100 stocks
Q22 | A control system on excessive fluctuation in stock market prices is called-------------.
- circuit breaker
- stock index
- depository
- none of these
Q23 | The numbers of recognized stock exchanges in India is ----------.
- 20
- 21
- 22
- 23
Q24 | Devise adopted to make profit out of the difference in prices of a security in twodifferent markets is called ------------------‐.
- arbitrage
- margin trading
- call option
- none of these
Q25 | ------------‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on hisown behalf.
- arbitrage
- jobber
- odd lots
- none of these