MCQ on FINANCIAL MARKETS AND OPERATIONS Multiple Choice Questions with answer C-1

FINANCIAL MARKETS AND OPERATIONS Multiple Choice Questions:

1.	SEBI was established in the year----------------		.
(a) 1992		(b) 1988	(c) 1990	(d) 1989
2.	SEBI Act was passed in ‐‐‐‐‐‐‐‐‐‐‐‐.
(a) 1988		(b) 1990	(c) 1991	(d) 1992
3.	The objectives of SEBI include -------------		.

(a) To protect the interests of inventors

(b) To regulate the securities market

(d) All of the above

4.	The regulatory body for the securities market in India is ------------					.
(a) RBI		(b) SEBI	(c) IRDA			(d) Stock exchanges
5.	Who appoints the chairman of SEBI?
(a) Central government			(b) Stock exchanges		(c) Brokers		(d) Investors
6.	The administrative head office of SEBI is at			------------	.
(a) New Delhi		(b) Bombay			(c) Kolkata		(d) Chennai
7.	SEBI has ------------	regional offices.
(a) 3		(b) 4	(c) 5		(d) 7
8.	The present chairman of SEBI is ---------------			.
(a) Ajay Tyagi		(b) U.K. Sinha		(c) C.B. Bhave			(d) Vijay C Kelkar
9.	SEBI Ombudsman was introduced in --------------			.
(a) 2000		(b) 2002	(c) 2003	(d) 2005
10.	SENSEX is the index of --------------------		.
(a) Bombay stock exchange			(b) National stock exchange			(c) Cochin stock exchange
	(d) None of these
11.	The base year of Nifty is -------------		.
	(a) 1992	(b) 1978	(c) 1987		(d) 1995
12.	Bulls and bears are -------------		.
	(a) Ordinary investors (b) Government agencies				c) Speculators		(d) Money lenders
13.	A depository is ------------------		.

(a) An electronic transfer through dematerialization

(b) A fixed deposit in a bank

(d) Surveillance on price manipulation

14.	Listing is mandatory for ------------------				.
(a) Trading		in	stock	market		(b)		Marketing	a	new	issue
	(c) Trading in international markets					(d) Declaring dividend
15.	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
16.	A lame duck is a ---------------		.
(a) bull who does not keep his				promise		(b)	bear	who cannot keep his commitments
(c) cautious speculator						(d) premium hunter
17.	Which of the following is a global stock market index?
(a) OTCEI index		(b) Nifty			(c) Sensex				(d) FTSE100
18.	Which of the following is not a global stock market index?
	(a) DJIA	(b) S&P 500 index				(c) MCSI index			(d) S& P CNX.
19.	S&P CNX was introduced in ---------------				.
(a) 1996		(b) 1998			(c) 1986			(d) None of these
20.	The base year of BSE Sensex is --------------					.
(a) 1978‐79		(b) 1979‐80			(c) 1977‐78			(d) None of these
21.	The base year of CNX nifty junior is ----------------						.
	(a) 1997	(b) 1996			(c) 1999			(d) 1995
22.	The number of scrip’s included in nifty junior is --------------							.
(a) 40		(b) 50			(c) 30			(d) 100
23.	CDSL is established in ----------------				.
(a) 2000		(b) 1999			(c) 1998			(d) 1997
24.	Depositories Act is enacted in			-----------------		.
(a) 1993		(b) 1998			(c) 1997			(d) 1996
25.	The present rolling settlements cycle T+2 is introduced in ---------------								.
(a) 2003		(b) 2001			(c) 2000			(d) 2008

26. Group A consists of -----------------.

(a) Cleared securities (B) Non‐ Cleared securities (c) Government securities (d) None of these. 27. Permanent removal of securities of a company from the stock exchange.

(A) De-listing		(b) Re‐ listing		(c) Listing		(d) None of these
28.	The Nifty consists of -----------------			.
(a) 30 stocks			(b) 25 stocks	(c) 50 stocks		(d) 100 stocks
29.	A control system on excessive fluctuation in stock market prices is called-------------							.
(a) Circuit breaker			(b) Stock index	(c) Depository		(d) None of these
30.	The numbers of recognized stock exchanges in India is					----------.
(a) 20			(b) 21	(c) 22		(d) 23
31.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the market where the existing securities of companies are traded.
(a) Primary market			(b) Secondary market		(c) Money market		(d) None of these
32.	‐‐‐‐‐‐‐‐‐‐‐‐ is the process of admitting securities for trading on a recognized stock exchange.
(a) Issuing			(b) Investing	(c) Listing		(d) None of these

33. Devise adopted to make profit out of the difference in prices of a security in two different markets is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Arbitrage (b) Margin trading (c) Call option (d) None of these 34. The number of store which is less than the standard unit is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Arbitrage (b) Margin trading (c) Odd lots (d) None of these

35. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a professional independent broker who deals in securities on his own

behalf.

(a) Arbitrage (b) Jobber (c) Odd lots (d) None of these

36. A person appointed by a stock broker to assist him in the business of securities trading is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Sub broker (b) Tarawaniwalas (c) Authorized clerk (d) None of these

37. Speculators who neither buy nor sell securities in the market but still trade on them are called

‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Wolves (b) Stags (c) Bears (d) None of these

38. The process of hedging the entire supply of a particular security with a view to dictating term is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Wash sale (b) Arbitrage (c) Cornering (d) None of these

39. Under depository system the allotment and credit of shares to the beneficiary amount should be completed within how many days from the date of an issue?

(a) 15 days	(b) 21 days		(c) 7 days	(d) 14 days
40. Member of stock exchanges is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Stock broker	(b) Investor	(c) Issuer		(d) None of these
41. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ buy and sell securities on behalf of the investing public.
(a) Arbitrage	(b) Commission brokers		(c) Stock broker	(d) None of these

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

(a) Speculator (b) Issuer (c) Stock brokers (d) None of these

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

(a) Bull			(b) Bear		(c) Stag		(d) None of these
44.	In the Indian stock exchange a bull is known as ------------.
(a) Badla		(b) Tejiwala			(c) Mandiwala		(d) None of these
45.	Risk involved in gambling is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
	(a) High		(b) Low		(c) Very high		(d) None of these
46.	The process of artificially increasing or decreasing the price is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Price bond			(b) Price rigging		(c) Cover system		(d) None of these
47.	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
48.	The electronic clearing and Depository system set up by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) SGL		(b) SHCIL		(c) HCL		(d) None of these
49.	National stock exchange operations are divided into ‐‐‐‐‐‐‐‐‐‐‐ and capital market segment.
	(a) Whole sale debt market			(b) Money market		(c) Secondary market (d) None of these
50.	‐‐‐‐‐‐‐‐‐‐‐‐‐ is a market where unlisted securities are dealing.
	(a) Grey market		(b) Kerb market			(c) Capital markets		(d) None of these
51.	‐‐‐‐‐‐‐‐‐‐‐‐‐ is a barometer for market behavior.
	(a) Investment		(b) Index			(c) Arbitrage		(d) None of these
52.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a number which measures the change in a set of values over a period of
	time.
(a) Index			(b) Sample		(c) Weightage		(d) None of these

53.	Securities of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ companies are traded in secondary market.
(a) Listed		(b) Relisted		(c) Unlisted			(d) None of these
54.	Which of the following is considered as means off balance sheet financing?
(a) Derivation		(b) Equities		(c) Debts			(d) None of these
55.	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
56.	An option exercised at any time, it is termed as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) American option			(b) European option				(c) Call options	(d) None of these
57.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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 these
58.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are called non‐cleared securities.
(a) Group B share			(b) Group A share			(c) Group G shares		(d) None of these
59.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐ includes government securities.
(a) Group B share			(b) Group A share			(c) Group G shares		(d) None of these
60.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐ includes fixed income securities.
(a) Group A share		(b) Group B share			(c) Group F shares			(d) Group G shares
61.	---------------- consists of scrips which are traded on trade to trade basis for market
	surveillance reasons.
	(a) Group S share		(b) Group T shares			(c) Group F shares		(d) Group G shares
62.	--------------- represents scrips forming part of the BSE Indonext segment.
	(a) Group S share		(b) Group T shares			(c) Group F shares		(d) Group G shares
63.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the first depository in India.
(a) Central depository services India Ltd.							(b) National securities depository Ltd.
(c) State of India depository services Ltd.							(d) None of these
64.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the second depository in India.
(a)	Central depository		services	India	Ltd.		(b) National securities		depository Ltd.
(c) State of India depository services Ltd.						(d) None of these
65.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ means eliminating the paper certificates and maintaining records in the form
	of electronic entries only.
	(a) Dematerialization		(b) Depository				(c) Stock market index		(d) None of these
66.	A speculator expert’s rise in price of a share is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Bull (b) Bear (c) Stag (d) Lame duck

67. A new index called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is developed by NSE.

(a) S&P CNX nifty (b) BSE 200 & DOLLEX 200 (c) BSEI PO Index (d) None of these 68. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the process of converting physical paper share into demat share.

(a) Dematerialization			(b) Depository			(c) Dematerialization		(d) None of these
69.	QIP stands for	------------	.
(a)	Qualified	institutional		placement		(b)	Qualified	industrial	placement
(c) Qualified investment placement						(d) None of these
70.	Futures and option are		-------------	.
	(a) Derivatives	(b) Speculators				(c) Money lenders		(d) Ordinary investors
71.	An offer document prepared for the purpose of QIP is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Placement document			(b) Speculation		(c) Dematerialization			(d) None of these

72. --------------- deals with creation of new and improved financial products through innovative design or repackaging of existing financial instruments.

(a) Financial intermediation (b) Financial engineering						(c) Financial instrumentation (d) None of
the above
73.	Bull and ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are speculators.
(a) Bear		(b) Cow	(c) Lion		(d) None of these
74.	Computers are linked by satellite through ‐‐‐‐‐‐‐‐‐‐‐ in NSE.
(a) VAST			(b) SGL	(c) SHCIL			(d) None of these
75.	Members of OTCEI are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ only.
(a) Corporate			(b) Derivatives		(c) Speculators		(d) None of these
76.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a market for dealing in unlisted securities.
	(a) Grey market		(b) Kerb market		(c) Capital market			(d) None of these
77.	The first stock exchange in India was started in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) 1875			(b) 1885		(c) 1895			(d) 1865
78.	A depository is an institution which transfers the ownership of securities in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
	mode.
(a) Electronic (b) Artificial				(c) Analytical		(d) None of these
79.	Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner.
(a) Depository			(b) Government		(c) Corporate			(d) None of these

80.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐ system reduces time for transfer for transfer of securities.
(a) Depository		(b) government	(c) Investment	(d) None of these
81.	Depository system leads to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Scrip less system		(b) Online system	(c) Offline system	(d) None of these
82.	An instrument which derives its value from an asset backing it is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) Derivatives		(b) Depository	(c) Documentation	(d) None of these
83.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ contracts are not at all standardized.
(a) Forward		(b) Option	(c) Swap	(d) None of these

84. The trader who promises to buy in ‐‐‐‐‐‐‐‐‐‐‐ contract is said to be in ‘long position’.

(a) Forward (b) Option (c) Swap (d) None of these

85. In ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ contract the seller is referred to as a ‘writer’.

(a) Forward (b) Option (c) Swap (d) None of these

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

(a) Derivatives (b) Speculators (c) Investors (d) None of these

87. A combination of forwards by 2 counter‐parties with opposite but matching need is called

‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Swap	(b) Forward	(c) Future	(d) None of these
88. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ contracts are standardized.
(a) Future	(b) Forward	(c) Swap	(d) None of these
89. Agreed price of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ contract is known as strike price.
(a) Future	(b) Option	(c) Swap	(d) None of these

90. The pre‐ determined price at which an underlying asset has to be bought or sold is an option contract is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Exercise price (b)Agreed price (c) Strike price (d) None of these

91. ‐‐‐‐‐‐‐‐‐‐‐‐‐ gives the option holder a right to buy an underlying asset at an exercise price in

future.

(a) Call option (b) Put option (c) Call and put (d) None of these

92. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a contract for temporary exchange of obligation that each party has under its respective contract.

(a) Swap (b) Forward (b) Option (d) None of these 93. OTCEI stands for Over the Counter ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of India.

(a) Exchange (b) Expand (c) Extent (c) None of these

94. CDSL stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a)	Central Depository Services Ltd. (b) Central Derivatives Services Ltd. (c) Central
Derivatives System Ltd (d) Central Deposit System Ltd
95. National securities depository Ltd incorporated on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
(a) December 12, 1995			(b) December 21, 1995		(c) December 21 1985
(d) None of these
96. ‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ means the worth of shareholding.
(a) Market capitalization			(b) market creation (c) market specification		(d) none of these
97. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ measured in dollar term.
(a) S&P CNX nifty		(b)BSE SENSEX		(c) BSE 200 and DOLLEX 200 (d) none of these
98. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ was introduced in Jan 1986.
(a) BSE SENSEX		(b)S &P CNX nifty		(c) BSE 200 and DOLLEX	(d) none of these

99. ‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to permanent removal of securities of a listed company from a stock

exchange.

(a) Compulsory de listing (b) Voluntary delisting (c) Listing (d) Relisting

100. In ‐‐‐‐‐‐‐-------, a listed company decides on its own to permanently remove its securities from a stock exchange.

(a) Compulsory delisting (b) Voluntary delisting (c) Relisting (d) Listing

101. Most of the speculative purchases are made on the basis of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Margin trading (b) Arbitrage (c) Wash sale (d) none of these

102. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the fictitious transaction.

(a) Margin trading (b) Arbitrage (c) Wash sale (d) none of these

103. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ means artificially pushing up the market price of a particular security.

(A) Rigging (b) Cornering (c) Margin trading (d) none of these

104. Rigging activity is carried on by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ speculators.

(a) Bull (b) Swap (c) Bear (d) Lame duck

105. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is highly specialized and skilled speculative activity.

(a) Margin trading (b) Arbitrage (c) Wash sale (d) none of these

106. National securities clearing corporation Ltd. established in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

107. National securities clearing corporation Ltd established in ‐‐‐‐‐‐‐‐‐‐.

108. National Securities Depository Ltd established in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

109. OTCEI was incorporated in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

110. The number of de‐organized stock exchanges in India.

(a) 4 (b) 5 (c) 6 (d) None of these

111. National stock exchange of India situated at ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Bangalore (b) Hyderabad (c) Bombay (d) None of these

112. All activities related to finance and organized into a system called ‐‐‐‐----‐‐‐‐‐‐‐‐.

(a) Capital market (b) Money market (c) Financial system (d) open market

113. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is termed as the lifeblood of a firm.

(a) Employee (b) Finance (c) Management (d) Technology

114. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to the activity of transforming savings into investment.

(a) Resource development (b) Capital formation (c) Credit syndication (d) None of these

115. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be defined as activities, benefits and satisfactions connected with the sale of money that offer to users and customers, financial related value.

(a) Money market (b) Stock exchange (c) Financial services (d) Financial management

116. The ratio of financial assets is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of economic growth.

(a) an indicator (b) the market value (c) the basis (d) the prestige value

117. Capital market is a market for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital.

(a) Long term capital (b) Short term capital (c) Working capital (d) Fixed capital

118. SEBI stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Securities Exchange Board of India (b) Stock Exchange Board of India (c) Securities and Exchange Board of India (d) Stock Earn Board of India

119. Equity shares are the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ shares of a limited company

(a) Voting (b) Ordinary (c) Limited (d) Unlimited

120. Equity shares and preference shares are ownership securities, also known as

‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Debt capital (b) Capital stock (c) Fixed capital (d) Capital issue

121. Bonds, debentures etc. are creditor ship securities, also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Debt capital (b) Capital stock (c) Working capital (d) Capital issue

122. Equity shares with detachable warrants will enable the warrant holder to apply for specified number of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ at determined price.

(a)Preference shares (b) Equity shares (c) Bonds (d) Debentures

123. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are equity shares issued by the company to employees or directors at a discount or for consideration other than cash.

(a) Derivatives (b) Securitized instruments (c) Sweat equity shares (d) detachable warrants

124. The companies Act (Sec. 85) describes preference shares as those which carry a ‐‐‐‐‐‐‐‐‐

right to payment of dividend during the life time of the company.

(a) Dividend (b) Interest (c) Preferential (d) Priority

125. Convertible preference shares can be converted to equity shares at the option of the holder, so these shares are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Conversion of preference shares (b) Quasi equity shares (c) fully convertible preference shares (d) Participating preference shares

126. Debenture is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ instrument issued by the company with a promise to pay interest and repay the principal on maturity.

(a) Credit (b) Debt (c) Cash (d) Negotiable

127. Government bonds are fixed income debt instruments issued by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

to finance their capital requirements or developments projects.

128. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ issued by the central government or state governments are referred to as government securities.

(a) Instruments (b) Securities (c) Bonds (d) Shares

129. Government securities are also called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ because of the safety and security of investments made in them and regularity of return.

(a) Gift‐edged securities (b) Long term securities (c) Short term securities (d) Investments

130. Government securities are issued through ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of RBI.

(a) Public debt office (b) SEBI (c) DFHI (d) Stock exchange

131. ‐‐‐‐‐‐‐‐‐‐‐‐ issued by a foreign entity, such as bank or company, but is issued and traded in the United States and denominated in U.S. dollars.

(a) Bonds (b) GDR (c) IDR (d) Yankee bonds

132. RBI established ‐‐‐‐‐‐‐‐‐‐‐‐‐ in 1988 to perform the money market operations on its behalf.

(a) SEBI (b) RBI office (c) DFHI (d) SBI

133. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a unsecured promissory note issued with a fixed maturity, by a company, and approved by RBI, maturity from 7 days to one year, issued at a discount on the face value.

(a) Certificate of Deposits (b) Treasury bill (c) Commercial Bills (d) Commercial papers

134. A repurchase agreement, the repurchase price will be greater than the original sale price, the difference effectively representing interest, known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Interest rate (b) Repo rate (c) Repo charge (d) Repo commission

135. SGL stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Subsidiary General Ledger (b) Sub General Ledger (c) Subsidiary General Loan (d) Subsidiary g‐loan.

136. SEBI was given a statutory status in the year of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ by an act of parliament.

137. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the trading of securities of a company by individuals who are in some way connected with the company and has to non‐public price sensitive information about the company.

(a) Speculative trading (b) Hedging (c) Insider trading (d) Internal trading

138. MAPIN stands for Market Participant ---------------.

(a) Individual Number (b) Identification (c) Institutions (d) None of these

139. NBFCs stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Non Banking Fund Company (b) Non-Banking Financial Companies (c) Non Banking Finance Council (d) None of these

140. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an independent body to assist the regulators in framing and administering regulating in the capital market. E.g. Finance industry development council.

(a) SNO (b) SRO (c) RBI (d) SEBI

141. Origination, underwriting and distribution are the 3 main services of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

market.

(a) Capital market (b) Secondary market (c) SEBI (d) Primary market

142. IPO stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Initial Public Offer (b) Initial Public Offering (c) Individual Public offer (d) none of these

143. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ means an option of alloting equity shares in excess of the equity shares offered in the public issue as a post‐listing price stabilising mechanism.

(a) GSP (b) SRO (c) Green shoe option (d) None of these

144. Bonus issue is the issue of shares to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ out of the free reserves of the company.

(a) Existing shareholders (b) New shareholders (c) None of these (d) All of them

145. ESOP stands for‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Employers Stock Option Plan(b) Employees Stock Option Plan (c) Employees Stock Option Premium (d) Employees Stock Ownership Plan

146. Underwriters charge a commission for their service which is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Commission (b) Penalty (c) Underwriting charge (d) Underwriting commission

147. Stock broker means a member of a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) SEBI (b) RBI (c) SBI (d) Stock exchange

148. Net Tangible assets means all net assets excluding ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ assets.

(a)Tangible assets (b) Intangible assets (c) Total assets (d) None of these

149. Market makers are intermediaries appointed by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ to sell or buy its securities at any time as per agreed contract.

(a) RBI (b) Stock exchange (c) Company (d) None of these

150. QIB stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Qualified Institutional Buyer (b) Qualified Institutional Bonds (c) Qualified Information for Buyers (d) All of these

151. Shares can be distributed through outright sale by companies to select group of persons, this is known as ---------------.

(a) Public issue (b) Private placement (c) Institutions (d) Underwriting

152. Market for borrowing and lending short term funds is called ---------------.

(a) Money market (b) Capital market (c) Derivative market (d) Forex market

153. Who controls money market?

(a) RBI (b) SBI (c) DFHI (d) SIDBI

154. Which of the following markets help RBI in implementing its monetary policies?

(a) Money market (b) Capital market (c) Forex market (d) Debt market

155. Which of the following debt instrument is issued by large credit worthy companies as a means for financing their working capital needs?

(a) CP (b) CD (c) IBPC (d) Commercial bills

156. Money market deals with:

(a) Short term funds (b) Long term funds (c) Ownership funds (d) Credit rating

157. What is the minimum issue size of commercial papers?

(a) 10 lakh (b) 5 Lakh (c) 5crore (d) 2 lakh

158. Certificate of deposits were introduced in the Indian market in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

159. The maturity period of CDs issued by banks varies from -------------.

(a) 7 days to 1 year (b) 7 days to 3 years (c) 1 day to 1 year (d) 1 and 3 years

160. An instrument to fund the short term needs of banks through inter‐bank participation.

(a) CDs (b) Inter Bank Repo (c) CPs (d) IBPCs

161. The CRISIL rating needed for corporates to issue a commercial paper.

(a) CRISIL P-1 (b) CRISIL P-2 (c) CRISIL P-3 (d) None of these

162. An important money market is instrument by the government to bridge the deficit between the revenue and expenditure in the budget.

(a) T‐bills (b) Bonds (c) CDs (d) CPs

163. A loan for very short period is called --------------.

(a) Call loans (b) cash loans (c) T‐bills (d) None of these

164. A market for borrowing / lending of funds for a period of one day to 14 days.

(a) Term money market (b) Call money market (c) Commercial bills market (d) None of these

165. GSO stands for ----------.

(a) Golden shoe option (b) Green shoe option (c) Green stock option (d) None of these

166. Issue of equity shares to QIBs on private placement basis is called --------------.

(a) Qualified institutions placement (b) Preferential placement (c) Initial public offer (d) None of these

167. Issue of shares to the existing shareholders out of the free reserves of the company is called -----------------.

(a) Bonus issue (b) Right issue (c) ESOP (d) SWEAT equity

168. A pricing mechanism for new issues based on assessment of market demand.

(a) Book buiding (b) Green shoe option (c) Fixed price issue (d) None of these

169. QIP stands for ------------------.

(a) Qualified Institutional Placement

(b) Qualified Investment Placement

170. Public issue means IPO and ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) ESOP (b) Rights issue (c) Bonus issue (d) FPO

171. FPO and IPO can be either a fresh issue or ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

(a) Offer for sale (b) Offer of sale (c) Private placement (d) None of these

172. According to Companies Act, an issue becomes public if it is an allotment to more than

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ persons.

(a) 49 (b) 51 (c) 50 (d) None of these

173. An offer of securities to the public for the first time by an utilized issuer is called ---------.

(a) FPO (b) IPO (c) DPO (d) None of these

174. A fresh issue or offer for sale of securities made by a listed company to the public is called -------------.

(a) FPO (b) IPO (c) DPO (d) None of these

175. A market for borrowing and lending funds for a period exceeding 14 days.

(a) Term money market (b) Call money market(c) Commercial bill market (d) None of these

176. An offer document in case of a public issue is --------------.

(a) Prospectus (b) Red herring prospectus (c) Letter of offer (d) None of these

177. A prospectus which does not have details of either price or number of shares offer or the amount of issue.

(a) Red herring prospectus (b) Statement in lieu of prospectus (c) Shelf prospectus (d) None of these

178. An investor who applies or bids for securities for a value not more than Rs.2 lakh.

(a) Retail individual investor (b) Qualified institutional buyer (c) Non‐ institutional investor (d) None of these

179. Which of the following is not a QIB?

(a) Mutual funds (b) Foreign institutional investors (c) Retail individual investor (d) Scheduled commercial banks

180.	The time limit for allotting securities from the date of closure of the issue is							--------------.
(a) 15 days			(b) 30 days	(c) 45 days		(d) None of these
181.	In case of a book built issue, the allocation to retail investor should not be -----------							.
(a) Less than 35%			(b) More than 35%	(c) Less than 10%		(d) None of these
182.	A security used by RBI to adjust liquidity in the financial system is called --------------							.
(a) REPO			(b) CDs	(c) CPs		(d) TBs
183.	An unsecured loan extended by one corporate to another is called						-------------	.
(a) IBPCs		(b) Commercial bills			(c) CDs	(d) ICDs
184.	Bonds issue at a discount and redeemed prior to its maturity is called -----------------							.
(a) Mortage bonds			(b) Zero coupon bonds		(c) Convertible bonds		(d) None of these
185.	A bond that can be redeemed prior to its maturity is called ---------------						.
(a) Callable bonds (b) Option bonds					(c) Step‐up bonds (d) Non‐callable bonds

186. Bonds where interest rate is a fixed percentage over the whole sale price index is called

---------------.

(a) Capital index bonds (b) Fixed rate bonds (c) Step‐down bonds (d) None of these

187. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be referred to as merchant bankers to Government of India.

(a) Primary dealers		(b) RBI	(c) Satellite dealers		(d) None of these
188.	The equity shares issued by a company to its employees or directors are called ------------					.
(a) SWEAT Equity		(b) Non-voting shares		(c) Equity shares	(d) Preference shares
189.	MMMF stands for ---------------		.
(a) Money Market Mutual Funds				(b) Monetary Market Mutual Funds
(c) Money Medium Mutual Funds				(d) None of these

190. Sale of securities together with an agreement by the seller to buy back the securities at a later date.

(a) REPOs (b) CBLO (c) ICDs (d) CDs.

191. Insider trading means -------------.

(a) Purchase of securities by owners of the company

(b) Taking advantage of internal price sensitive information for trading

(d) Investors sell their financial paper to relatives of the firms.

192. The fraudulent and unfair trade practices relating to securities market regulation in 2003

was passed to prohibit --------------------.

(a) Insider trading practices

(b) Brokers from illegal trading

(d) Manipulation of prices and misleading statements.

193. -------------- mutual fund investment instruments deal with units that are purchased or

redeemed throughout the year.

(a) Open ended (b) Close ended (c) Income fund (d) Growth fund

194. -------------- mutual fund investment instruments deal with units that can be purchased

during initial period only and redeemed on a specific maturity date.

(a) Open ended (b) Close ended (c) Income fund (d) Growth fund

195. Purchase or redemption of open ended mutual funds are done at persisting ----------------.

(a) Market Value (b) Net Asset Value (c) Investment Value (d) None of these

196. The mutual fund scheme that provides capital appreciation through investing their money

majorly in equity stocks is called ---------------.

(a) Growth fund (b) Income fund (c) Liquid fund (d) Fund of fund

197. The mutual fund scheme in which the investor investing their money majorly in fixed

income instruments such as debentures, bonds etc. is called --------------.

(b) Growth fund (b) Income fund (c) Liquid fund (d) Fund of fund

198. ELSS stands for ---------------.

(a) Enterprise Linked Saving Scheme

(b) Equity Linked Savings Scheme

(d) Entrepreneurs Linking Savings System

199. Equity Linked Savings Scheme has a minimum lock in period of -----------------. (a) 1 year (b) 2 years (c) 3 years (d) 5 years 200. The regulatory body of mutual funds in India is ---------------. (a) RBI (b) SEBI (c) IRDA (d) Government

ANSWERS:

1. 1988

2. 1992

3. All of the above

4. SEBI

5. Central Govt.

6. Bombay

7. 4

8. Ajay Tyagi

9. 2003

10. Bombay stock exchange

11. 1995

12. Speculators

13. An electronic transfer through dematerialization

14. Trading in stock market

15. Shows trends in market

16. is a bear who cannot keep his commitment

17. FTSE 100

18. S&P CNX nifty

19. 1996

20. 1978‐79

21. 1996

22. 50

23. 1999

24. 1996

25. 2003

26. Cleared securities

27. Delisting

28. 50 stocks

29. Circuit breaker

30. 21

31. Secondary market

32. listing

33. Arbitrage

34. oddlots

35. jobber

36. Authorised clerk

37. Stags

38. Cornering

39. 21 days

40. stock broker

41. commission brokers

42. Speculator

43. Bear

44. Tejiwala

45. very high

46. Price rigging

47. Limit order

48. SHCIL

49. wholesale

50. Grey market

51. Index

52. Index

53. Listed

54. Derivaries

55. European option

56. American option

57. At the money

58. Group B shares

59. Group G shares

60. Group F shares

61. Group T shares

62. Group S share

63. National securities depository Ltd.

64. Central depository services India Ltd.

65. Dematerialization

66. Bull

67. S&P CNX nifty

68. Dematerialization

69. Qualified institutional placement

70. Derivation

71. Placement document

72. Financial engineering

73. Bear

74. VSAT

75. Corporates

76. Grey market

77. 1875

78. Electronic mode

79. Depository

80. Depository

81. Scrip less system

82. Derivatives

83. forward

84. forward

85. option

86. Derivation

87. SWAP

88. Future

89. future

90. Exercise price

91. put option

92. Swaps

93. Exchange

94. Central depository services Ltd.

95. December 12, 1995

96. market capitalization

97. C&P CNX nifty

98. BSE SENSEX

99. Compulsory delisting

100.Voluntrydelisting

101.Margin trading

102.Wash sale

103.Rigging

104.Bull

105.Arbitrageurs

106.1994

107.1995

108.1996

109.1990

110.4

111.Bombay

112.Financial system

113.Finance

114.Capital formation

115.Financial services

116.an indicator

117.longterm capital

118. Securities and Exchange Board of India

119.ordinary

120.Capital Stock

121.debt capital

122.equity shares

123.sweet equity shares

124.preferential

125.quasi equity shares

126.debt

127.government

128.securities

129.Gift‐edged securities

130.Public debt office

131.Yankee bonds

132.DFHI

133.Commercial papers

134.Repo rate

135.Subsidiary General Ledger

136.1992

137. Insider trading

138.Identification

139. Non-Banking Financial Companies

140.SRO

141.Primary market

142.Initial Public Offering

143.Green shoe option

144.Existing shareholders

145.Employees Stock Option Plan

146.Underwriting commission

147.Stock exchange

148.Intangible assets

149.Stock exchange

150.Qualified Institutional Buyer

151.Private placement

152.Money market

153.RBI

154.Money market

155.CP

156.Short term funds

157.Rs. 5 lakh

158.1989

159.7 days to 1 year

160.IBPCs

161.CRISIL P-2

162.T‐Bills

163.Call loans

164.Call money market

165.Green Shoe Option

166.Qualified Institutions placement

167. Bonus Issue

168.Book Building

169.Qualified Institutional Placement

170.FPO

171.Offer for sale

172..5

173.IPO

174.FPO

175.Term money market

176. Prospectus

177.Statement in lieu of prospectus

178.Retail Individual Investor

179.Retail Individual Investor

180.30 days

181.more than 35%

182.TBs

183. ICDs

184.Zero Coupon bond

185.Callable bonds

186.Capital Indexed bonds

187.Primary Dealers

188.SWEAT Equity

189.Money Market Mutual Funds

190.REPOs

191. Taking advantage of internal price sensitive information for trading

192.Manipulation of prices and misleading statements

193. Open ended

194.Close ended

195.Net Asset Value

196.Growth fund

197.Income fund

198.Equity Linked Savings Scheme

199.3 years

200.SEBI

3 Comments

Especia associate llp said…

Thanks For Sharing. Especia Associates llp is one of leading ESOP Advisory Firm. Especia Associates provide ESOP Advisory. Especia assists companies with their Employee Stock Option Schemes and equity-linked compensation plans by providing extensive and comprehensive advice. Our service offering includes conceptualization, structuring, documentation, legal and regulatory compliance, and reporting for all aspects of the Employee Stock Option Plan. if you need ESOP Advisory Services call at 9310165114 or visit us ESOP Advisory Services

April 5, 2022 at 12:01 PM