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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