Banking Awareness - Capital Market in India

Buy Federal Bank Clerk Practice test pack

Question - 1

What is an Indian depository receipt?

  • A A deposit account with a public sector bank
  • B A depository account with any of the depositories in India
  • C An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
  • D An instrument in the form of deposit receipt issued by Indian depositories
  • E None of the above

Question - 2

Capital market regulator is

  • A RBI
  • B IRDA
  • C NSE
  • D BSE
  • E SEBI

Question - 3

Many times, we read about future trading in newspapers.What is 'future trading'?
I. It is nothing but a trade between any two stock exchanges, wherein it is decided to purchase the stocks of each other on a fixed price throughout the year
II. It is an agreement between two parties to buy or sell an underlying asser in the future at a predetermined price.
III. It is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time
Select the correct answer using the codes given below.

  • A Only 1
  • B Only II
  • C Only III
  • D II and III
  • E None of these

Question - 4

Which of the following is the regulator of the credit rating agencies in India?

  • A RBI
  • B SBI
  • D SEBI
  • E None of these

Question - 5

Which of the following cannot be called as a debit instrument as referred in financial transactions?

  • A Certificate of deposits
  • B Bonds
  • C Stocks
  • D Commercial papers
  • E Loans

Question - 6

When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment the process is termed as

  • A mis-selling
  • B undertaking
  • C misappropriation of funds
  • D cross-selling
  • E None of above

Question - 7

The stock market index of London, stock market is referred as

  • A sensex
  • B footsie
  • C nifty
  • D bullish
  • E None of these

Question - 8

Which is the first Indian company to be listed on NASDAQ?

  • A Reliance
  • B TCS
  • C HCL
  • D Infosys
  • E None of these

Question - 9

In the capital market, the term arbitrage is used with reference to

  • A purchase of securities to cover the sale
  • B sale of securities to reduce the loss on purchase
  • C simultaneous purchase and sale of securities to make profits from price
  • D variation in different markets
  • E All of the above

Question - 10

Which of the following organisations is known as the market regulator in India?

  • A IBA
  • B SEBI
  • C AMFI
  • D NSDL
  • E None of these