Deck 1: Capital Market and Money Market in India

Question 1

Capital Market deals with __________

A)Short Term Funds
B)Medium and Long Term Funds
C)Both a and b
D)None of the Above

Answer 1

Medium and Long Term Funds

Question 2

In Secondary segment of Capital Market ____________

A)Fresh Capital is raised
B)Trading of outstanding securities is done
C)Both a & b
D)None of the above

Answer 2

Trading of outstanding securities is done

Question 3

Which of the following is a role of Capital Market?

A)Capital Formation
B)Promotion of Industrial Growth
C)Development of backward areas of the country
D)All of the Above

Answer 3

All of the Above

Question 4

Funds can be raised in Primary Market through

A)Public Issue by Prospectus
B)Private Placements
C)Rights Issues
D)All of the Above

Question 5

Primary Market is a market for :

A)New Issues
B)Outstanding Securities
C)Land Records
D)None of the above

Question 6

When an organization opts to convert private capital in to public capital, it is called _____________

A)Going Out
B)Being Open
C)Being Listed
D)Going Public

Question 7

Bonus Shares enable the company to restructure its capital.

Question 8

Which of the following enables issuers to reap benefits arising from price and demand discovery?

A)Public Issue by Prospectus
B)Book Building
C)Listing
D)None of the above

Question 9

Which one of the following is not a feature of a Stock Exchange?

A)Organised Market
B)Dealing only Through Authorised Members
C)Necessary to remain present physically for dealing
D)Necessary to obey Rules and Bye-laws

Question 10

SENSEX is an Index of which Stock Exchange?.

A)NSE
B)OTCEI
C)MCX
D)None of the above

Question 11

Inclusion of a security in the official list of a stock exchange is called _________ and for that the company has to apply with ___________.

A)Listing, Managing Committee of Stock Exchange
B)Enrollment, Managing Committee of Stock Exchange
C)Listing, Board of Directors of Stock Exchange
D)Registration, ROC

Question 12

____________ was set up, as a strong need was felt to protect the interest of investors and to have a systematic and organized working of the securities market in India.

A)Bombay Stock Exchange
B)National Stock Exchange
C)Over the Counter Exchange of India
D)Securities and Exchange Board of India

Question 13

Collateral value of eligible Listed Securities is considered on ….

A)Average market price
B)Marked to market basis
C)Reputation of the promoters
D)None of the above

Question 14

SBTS stands for

A)Securities Buying and Trading Society
B)Software Based Trading Services
C)Selling and buying through screen
D)Screen Based Trading System

Question 15

Which is a mean to reduce the floating equity stock in the market?

A)Sell off
B)Negotiate
C)Buy Back
D)All of the above

Question 16

Which Stock Exchange of India was the first to grant permission to brokers for internet trading?

A)National Stock Exchange
B)Bombay Stock Exchange
C)Ahmedabad Stock Exchange
D)Kolkata Stock Exchange

Question 17

Which Stock Exchange of India is based on the model of NASDAQ?

A)BSE
B)NSE
C)ASE
D)OTCEI

Question 18

At present securities are issued in which form?

A)Rematerialised
B)Dematerialized
C)Bank Credit
D)None of the Above

Question 19

One of the features of Capital Market is 'Ready and Continuous market' which provides _____________ to the investors.

A)Safety
B)Long term Guarantee
C)Liquidity
D)None of the above

Question 20

In ____________ market fresh capital is raised.

A)Primary
B)Secondary
C)Intermediary
D)National

Question 21

Which is the market for financial assets that are close substitutes for money?

A)Monetary Market
B)Money Market
C)Capital Market
D)Currency Market

Question 22

Return on Treasury Bills is ___________

A)Coupon Rate
B)Difference between Issue Price and Par Value
C)Negotiated
D)All of the above

Question 23

Commercial Paper is generally issued by:

A)Reputed Corporates
B)Reputed and highly rated Corporates
C)RBI on behalf of the Central Government
D)None of the above

Question 24

Which Money Market instrument is a time deposit of specific maturity and issued in bearer form?

A)Commercial Paper
B)Commercial Bill
C)Certificate of Deposit
D)Call Money

Question 25

In which Money Market instrument default risk is absent?

A)Commercial Paper
B)Certificate of Deposit
C)Treasury Bills
D)Inter Corporate Deposits.