Question 1

SENSEX is an Index of which Stock Exchange?.

Accepted Answer

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

Question 2

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

Accepted Answer

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 A

Question 3

Collateral value of eligible Listed Securities is considered on ….

Accepted Answer

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

Question 4

Primary Market is a market for :

Accepted Answer

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

Question 5

Return on Treasury Bills is ___________

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

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

Accepted Answer

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 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

In which Money Market instrument default risk is absent?

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

In Secondary segment of Capital Market ____________

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

SBTS stands for

Accepted Answer

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

Question 15

Commercial Paper is generally issued by:

Accepted Answer

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

Question 16

Bonus Shares enable the company to restructure its capital.

Accepted Answer

A) True 
 B)False

Question 17

Funds can be raised in Primary Market through

Accepted Answer

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

Question 18

Which of the following is a role of Capital Market?

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

In ____________ market fresh capital is raised.

Accepted Answer

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

Exam 1: Capital Market and Money Market in India