Financial Markets Set 4

Master of Arts in Economics (MA Economics)

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This set of Financial Markets Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets Set 4

Q1 | ------------‐ gives the option holder a right to buy an underlying asset at an exerciseprice in future.
  • call option
  • put option
  • call and put
  • none of these
Answer: put option
Q2 | Most of the speculative purchases are made on the basis of ---------‐‐‐‐‐‐‐‐‐.
  • margin trading
  • arbitrage
  • wash sale
  • none of these
Answer: margin trading
Q3 | The ratio of financial assets is ---------‐‐‐‐‐‐‐‐‐‐ of economic growth.
  • an indicator
  • the market value
  • the basis
  • the prestige value
Answer: an indicator
Q4 | Capital market is a market for ----------‐‐‐‐‐ capital.
  • long term capital
  • short term capital
  • working capital
  • fixed capital
Answer: long term capital
Q5 | SEBI stands for -----------‐‐‐‐‐‐‐.
  • securities exchange board of india
  • stock exchange board of india
  • securities and exchange board of india
  • stock earn board of india
Answer: securities and exchange board of india
Q6 | Equity shares are the ----------‐‐‐‐‐‐ shares of a limited company
  • voting
  • ordinary
  • limited
  • unlimited
Answer: ordinary
Q7 | Equity shares and preference shares are ownership securities, also known as ---------------‐‐.
  • debt capital
  • capital stock
  • fixed capital
  • capital issue
Answer: capital stock
Q8 | Bonds, debentures etc. are creditor ship securities, also known as -----------‐‐‐‐‐‐‐‐‐.
  • debt capital
  • capital stock
  • working capital
  • capital issue
Answer: debt capital
Q9 | Equity shares with detachable warrants will enable the warrant holder to apply forspecified number of ------------‐‐‐‐ at determined price.
  • preference shares
  • equity shares
  • bonds
  • debentures
Answer: equity shares
Q10 | -------------‐‐‐‐ issued by the central government or state governments are referred toas government securities.
  • instruments
  • securities
  • bonds
  • shares
Answer: securities
Q11 | Government securities are also called ------------‐‐‐‐‐‐‐ because of the safety andsecurity of investments made in them and regularity of return.
  • gift‐edged securities
  • long term securities
  • short term securities
  • investments
Answer: gift‐edged securities
Q12 | Government securities are issued through ---------‐‐‐‐ of RBI.
  • public debt office
  • sebi
  • dfhi
  • stock exchange
Answer: public debt office
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