749 + Mcqs in Financial Markets Page 11 McqOptions

501.	Financial ---------‐‐‐‐‐ are mainly used for hedging risk.
A.	derivatives
B.	speculators
C.	investors
D.	none of these
Answer» B. speculators

Discussion

502.	Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner.
A.	depository
B.	government
C.	corporate
D.	none of these
Answer» B. government

Discussion

503.	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

Discussion

504.	The first stock exchange in India was started in -------------‐‐‐‐‐‐.
A.	1875
B.	1885
C.	1895
D.	1865
Answer» B. 1885

Discussion

505.	Members of OTCEI are ---------‐‐‐‐ only.
A.	corporate
B.	derivatives
C.	speculators
D.	none of these
Answer» B. derivatives

Discussion

506.	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

Discussion

507.	---------‐‐‐ 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

Discussion

508.	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

Discussion

509.	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

Discussion

510.	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

Discussion

511.	Securities of -------------‐‐‐ companies are traded in secondary market.
A.	listed
B.	relisted
C.	unlisted
D.	none of these
Answer» B. relisted

Discussion

512.	-------------‐‐‐‐ 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

Discussion

513.	The electronic clearing and Depository system set up by the ---------‐‐‐‐‐‐‐‐.
A.	sgl
B.	shcil
C.	hcl
D.	none of these
Answer» C. hcl

Discussion

514.	--------------- is a barometer for market behaviour.
A.	investment
B.	index
C.	arbitrage
D.	none of these
Answer» C. arbitrage

Discussion

515.	------------‐ 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

Discussion

516.	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

Discussion

517.	In the Indian stock exchange, a bull is known as ------------.
A.	badla
B.	tejiwala
C.	mandiwala
D.	none of these
Answer» C. mandiwala

Discussion

518.	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

Discussion

519.	------------‐‐‐ 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

Discussion

520.	--------‐‐‐‐‐‐ 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

Discussion

521.	Member of stock exchanges is called ---------------‐‐.
A.	stock broker
B.	investor
C.	issuer
D.	none of these
Answer» B. investor

Discussion

522.	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

Discussion

523.	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

Discussion

524.	------------‐‐‐‐‐‐‐ 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

Discussion

525.	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

Discussion

526.	The numbers of recognized stock exchanges in India is ----------.
A.	20
B.	21
C.	22
D.	23
Answer» C. 22

Discussion

527.	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

Discussion

528.	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

Discussion

529.	The Nifty consists of -----------------.
A.	30 stocks
B.	25 stocks
C.	50 stocks
D.	100 stocks
Answer» D. 100 stocks

Discussion

530.	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

Discussion

531.	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

Discussion

532.	Bulls and bears are -------------.
A.	ordinary investors
B.	government agencies
C.	speculators
D.	money lenders
Answer» D. money lenders

Discussion

533.	The base year of Nifty is -------------.
A.	1992
B.	1978
C.	1987
D.	1995
Answer» E.

Discussion

534.	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

Discussion

535.	SEBI has ------------ regional offices.
A.	3
B.	4
C.	5
D.	7
Answer» C. 5

Discussion

536.	The administrative head office of SEBI is at ------------.
A.	new delhi
B.	bombay
C.	kolkata
D.	chennai
Answer» C. kolkata

Discussion

537.	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

Discussion

538.	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.

Discussion

539.	The regulatory body for the securities market in India is ------------.
A.	rbi
B.	sebi
C.	irda
D.	stock exchanges
Answer» C. irda

Discussion

540.	SEBI Act was passed in -----------------.
A.	1988
B.	1990
C.	1991
D.	1992
Answer» E.

Discussion

541.	SEBI was established in the year----------------.
A.	1992
B.	1988
C.	1990
D.	1989
Answer» C. 1990

Discussion

542.	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.

Discussion

543.	----------------- is also called zero coupon bond.
A.	trade bills
B.	call money
C.	treasury bills
D.	commercial papers
Answer» D. commercial papers

Discussion

544.	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

Discussion

545.	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

Discussion

546.	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.

Discussion

547.	----------------- 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

Discussion

548.	----------- 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

Discussion

549.	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

Discussion

550.	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

Discussion

Explore topic-wise MCQs in Master of Arts in Economics (M.A. Economics).

Financial ---------‐‐‐‐‐ are mainly used for hedging risk.

Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner.

A depository is an institution which transfers the ownership of securities in ------------‐‐‐‐ mode.

The first stock exchange in India was started in -------------‐‐‐‐‐‐.

Members of OTCEI are ---------‐‐‐‐ only.

As -------------‐‐ includes government securities.

---------‐‐‐ 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.

An option exercised at any time, it is termed as ---------‐‐‐‐‐‐‐‐‐.

Which of the following is considered as means off balance sheet financing? School of Distance EducationFinancial Markets Page 13

An option exercised at the time of maturity it is termed as ----------‐‐‐‐‐‐‐‐‐.

Securities of -------------‐‐‐ companies are traded in secondary market.

-------------‐‐‐‐ is a number which measures the change in a set of values over a periodof time.

The electronic clearing and Depository system set up by the ---------‐‐‐‐‐‐‐‐.

--------------- is a barometer for market behaviour.

------------‐ is a market where unlisted securities are dealing.

An order for the purchase of securities of a fixed price is known as --------------‐‐‐‐.

In the Indian stock exchange, a bull is known as ------------.

A person who sells the shares with the expectation of buying them in future at areduced price.

------------‐‐‐ is the person who buys securities with a view to sell them in future at aprofit.

--------‐‐‐‐‐‐ buy and sell securities on behalf of the investing public.

Member of stock exchanges is called ---------------‐‐.

Speculators who neither buy nor sell securities in the market but still trade on themare called ----------‐‐.

A person appointed by a stock broker to assist him in the business of securities tradingis called --------------‐.

------------‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on hisown behalf.

Devise adopted to make profit out of the difference in prices of a security in twodifferent markets is called ------------------‐.

The numbers of recognized stock exchanges in India is ----------.

A control system on excessive fluctuation in stock market prices is called-------------.

Permanent removal of securities of a company from the stock exchange.

The Nifty consists of -----------------.

A stock market index -------------.

Listing is mandatory for ------------------.

Bulls and bears are -------------.

The base year of Nifty is -------------.

SENSEX is the index of --------------------.

SEBI has ------------ regional offices.

The administrative head office of SEBI is at ------------.

Who appoints the chairman of SEBI? School of Distance EducationFinancial Markets Page 8

The objectives of SEBI include -------------.

The regulatory body for the securities market in India is ------------.

SEBI Act was passed in -----------------.

SEBI was established in the year----------------.

Which of the following are the instruments of money market?

----------------- is also called zero coupon bond.

Stock exchange is known as ----------------- market for securities.

When securities are allotted to institutional investors & some selected individuals isreferred to as -----------------.

Which of the following is the function of financial market?

----------------- is the organisations, institutions that provide long term funds.

----------- is a link between savers & borrowers, helps to establish a link betweensavers & investors

T+2 settlement cycle in a stock exchange means, the trade is settled ------------ daysafter the trade

Which instrument among these have historically shown to give the highest returnswhen invested over long periods?