Capital Market in India
Exam Duration: 45 Mins Total Questions : 30
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
Capital market regulator is
- (a)
RBI
- (b)
IRDA
- (c)
NSE
- (d)
BSE
- (e)
SEBI
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
Which of the following is the regulator of the credit rating agencies in India?
- (a)
RBI
- (b)
SBI
- (c)
SIDBI
- (d)
SEBI
- (e)
None of these
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
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
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
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
The availability or cash and other cash-like marketable instruments that are useful in purchases and investments are commonly known as
- (a)
cash crunch
- (b)
liquidity
- (c)
credit
- (d)
marketability
- (e)
None of these
In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as
- (a)
insider trading
- (b)
future trading
- (c)
foreign trading
- (d)
stock trading
- (e)
None of these
Many times, we read a term SEPA' in financial newspapers.What is the full form of the SEPA?
- (a)
Single Exchange Processing Agency
- (b)
Single Euro Payments Area
- (c)
Single Electronic Processing Agency
- (d)
Super Electronic Purchase Agency
- (e)
None of the above
Which of the following financial products are not much popular in India as they have been launched only recently?
- (a)
Development bonds
- (b)
Insurance policies
- (c)
Mutual funds
- (d)
Sovereign wealth funds
- (e)
All are very popular products in India
The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden.In financial sector, this type of phenomenon is known as
- (a)
probability risk
- (b)
market risk
- (c)
inflation risk
- (d)
credit risk
- (e)
None of these
What is the full form of 'ULIP', the term which was in the news recently?
- (a)
Universal Life and Investment Plan
- (b)
Unit Loan and Insurance Plan
- (c)
Universal Loan and Investment Plan
- (d)
Uniformly Loaded Investment Plan
- (e)
Unit Linked Insurance Plan
In one of his speeches, Pranab Mukherjee said that the government had no plans to dilute the roles of market regulators.This means, the role of which of the following will not be diluted?
- (a)
Life Insurance Corporation of India (LIC)
- (b)
Confederation of India Industry (CII)
- (c)
Federation of Chambers of Commerce and Industry(FICCI)
- (d)
Bureau of Indian Standards
- (e)
Securities and Exchange Board of India(SEBI)
Equity schemes managed strong NAV gains which boost their assets was a new in some financial newspapers.What is the full form of NAV used as in above headlines?
- (a)
Nill Accounting Variation
- (b)
Net Accounting Venture
- (c)
Net Asset Value
- (d)
New Asset Venture
- (e)
None of the above
As per the announcement made by the RBI, some stock exchanges in India are allowed to introduce Plain Vanilla Currency Option.The term Plain Vanilla Currency Option is associated with which of the following activities/operations?
- (a)
Dollar-Rupee exchange rate
- (b)
Floating of commercial papers
- (c)
Launch of new mutual funds
- (d)
Deciding the operating price of a share on a particular business day
- (e)
None of the above
According to the Securities and Insurance Laws(Amendment) bill 2010, who among the following will be the Vice Chairman of the Joint Commission to resolve differences among the financial regulators?
- (a)
Finance Minister, Gol
- (b)
Deputy Chairman, Planning Commission
- (c)
Chairman, SEBI
- (d)
Chairman, Central Vigilance Commission
- (e)
Governor, RBI
Many times, we read in newspapers that a company is planning to bring a public issue.What does it mean?
I.Shares of the company will be issued only through public sector organisations like banks/central financial institutions etc.
II.Shares of the company will be issued to the general public only through primary market.
III.This means some stakeholders/promoters are willing to leave the company.Hence, they wish to sell their stock to the general public.
Select the correct answer using the codes given below
- (a)
Only I
- (b)
Only II
- (c)
Only III
- (d)
All of the above
- (e)
None of the above
SEBI is a/an
- (a)
advisory body
- (b)
statutory body
- (c)
constitutional body
- (d)
non-statutory body
- (e)
registered as a society
Which of the following organisations/agencies has established a fund known as investor Protection Fund?
- (a)
RBI
- (b)
SIDBI
- (c)
Bombay Stock Exchange
- (d)
Ministry of Finance
- (e)
Ministry of Commerce and Industry
Mutual funds are regulated by
- (a)
Association of Mutual Funds of India(AMFI)
- (b)
Securities and Exchange Board of India (SEBI)
- (c)
Reserve Bank of India
- (d)
IRDA
- (e)
None of the above
Which of the following is not a component or India's securities market?
- (a)
Commodity futures
- (b)
Small savings in national saving certificates
- (c)
Government bonds
- (d)
Corporate equity
- (e)
Derivations on currency
Which of the following bodies promoted Securities Trading Corporation of India Limited (STCI) jointly with the public sector banks?
- (a)
SEBI
- (b)
ICICI Limited
- (c)
IDBI Limited
- (d)
RBI
- (e)
IRDA
Non-Convertable debentures are
- (a)
debt instruments which acquire equity 'status at the issues' option
- (b)
debt instruments which acquire equity status at the investor's option
- (c)
debt instruments which acquire equity status with the permission of Registrar of Companies
- (d)
debt instruments which acquire equity status on maturity
- (e)
debt instruments which retain their debt character and cannot acquire equity status
Which of the following stock exchanges in India, recently launched 'Carbon Index', so that investors can assess risks and opportunities associated with climate change?
- (a)
Delhi Stock Exchange
- (b)
National Stock Exchange
- (c)
Bombay Stock Exchange
- (d)
Kolkata Stock Exchange
- (e)
Ahmedabad Stock Exchange
Which of the following is the main advantage of 'ASBA' applicants for share allotment?
- (a)
They have got secured allotment of shares
- (b)
They have got certain preference to general applicants
- (c)
They need not remit the fund for allotment of shares, they will do so after shares are allotted to them
- (d)
Their deposit/OD account is not debited, only the funds are blocked for the same and they continue to avail interest till the shares are allotted to them?
- (e)
None of the above
Which of the following was the first mutual fund listed on the newly launched mutual fund platform on National Stock Exchange?
- (a)
UTI Mutual Fund
- (b)
SBI Mutual Fund
- (c)
LIC Mutual Fund
- (d)
Bank of Baroda Mutual Fund
- (e)
None of the above
SEBI allows retail investors to apply for shares of Initial Public Offerings without actual transfer of their funds from their accounts.What is this facility known as?
- (a)
Systematic transfer plans
- (b)
Systematic investment plans
- (c)
Hedge fund accounts
- (d)
ASBA
- (e)
None of the above
Which of the following best describes the Securities and Exchange Board of India?
- (a)
SEBI is the regulator for the capital markets
- (b)
SEBI protects the interest of investors
- (c)
SEBI is for ethical practises
- (d)
All of the above
- (e)
None of the above