MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 12 Commerce Business Studies Financial Market Quiz 5 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Financial Market
Quiz 5
According to top rating agencies S&P; triple-A and double-A rating bonds are classified as an _______________.
Report Question
0%
extremely discounted
0%
extremely safe
0%
extremely risky
0%
extremely inflated
The identity of members is trading in NSE is withheld by the National stock exchange. Identify the advantage stated.
Report Question
0%
Wide coverage
0%
Transparency of NSE
0%
Effective matching of order in NSE
0%
Confidential trading in NSE
Explanation
The identity of members is trading in NSE is withheld by the National stock exchange. Advantage stated here is confidential trading in NSE. NSE or National Stock Exchange is the leading stock exchange of India. It is situated in Mumbai. NSE maintains the confidential information about trading in order to protect the interests of the investors and provides safety for the investment.
Settlement of transactions at NSE is explained in which of the following points?
Report Question
0%
The system helps by providing a perfect match with sensible interest rate and repayment period.
0%
Since trading in NSE is online, the matching of order in real-time makes it easy and ensures transactions are settled quickly and efficiently.
0%
Buy order and Sell orders are effectively and quickly matched with the help of the trading software.
0%
The opening and closing prices of stocks are available for the investors on screen in real-time.
Explanation
Since trading in NSE is online, the matching of order in real-time makes it easy and ensures transactions are settled quickly and efficiently- settlement at NSE is explained by this statement. NSE is the leading stock exchange in India, situated in Mumbai. Settlement can be defined as a process of actual exchange of money for the securities. It is done by the Clearing Member of NSE who has responsibiity to settle all deals executed by Trading member.
The lead manager coordinates all the activities among intermediaries connected with the e-IPOs.
Report Question
0%
True
0%
False
Explanation
The lead manager coordinates all the activities among intermediaries connected with the e-IPOs- this is a true statement. A company proposing to issue capital to the public through on-line system of stock exchange has to enter into an agreement with stock exchange. This is called an Initial Public Offer or IPO.
______ segment provides a trading platform for a wide range of fixed income securities that include
central government securities.
Report Question
0%
Capital Market
0%
Whole Sale Debt Market
0%
OTCEI
0%
Any of the above
Explanation
Whole Sale Debt Market segment provides a trading platform for a wide range of fixed income securities that include
central government securities. It gets regulated by the Ministry of Finance, Reserve Bank of India and Stock Exchange Board of India. It is a market where institutional investors participate in the trading of Government securities and Bonds.
This is where a company gets listed in a stock exchange. Identify the platform _______________.
Report Question
0%
Secondary Market
0%
Standard Market
0%
Primary Market
0%
Money Market
Explanation
The company gets listed in a stock exchange on the platform known as the primary market. The primary market is also known as the new issues market, which deals with new securities being issued for the first time.
Primary market directly contributes in capital formation because in primary market company goes directly to investors and utilize the funds for investment purpose.
Primary market does not include finance in the form of loan from financial institutions.
_____ is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market.
Report Question
0%
Index
0%
Stock list
0%
Price list
0%
Notation
Explanation
Index is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. Index can be defined as a statistical measure of change in a securities market. In simple terms, index is an measure of something related to finance.
The process of economic development is facilitated by the existence of a well functioning capital market.
Report Question
0%
True
0%
False
Explanation
The process of economic development is facilitated by the existence of a well functioning capital market- this is a true statement. The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.
Capital market can be defined as a market for long and medium term funds. It refers to the organizations or institutions which provide funds for more than one year time period.
The contents of the prospectus have to be in accordance with the provisions of the Companies Act and SEBI disclosure and investor protection guidelines.
Report Question
0%
True
0%
False
Explanation
The contents of the prospectus have to be in accordance with the provisions of the Companies Act and SEBI disclosure and investor protection guidelines- this is a true statement. Prospectus is required and to be filed up under Stock Exchange Board. It helps to give details about the company's background. It helps to protect the interests of the investors and provides security to the investment.
The capital market should also be efficient in respect of ______________.
Report Question
0%
minimizing transaction costs
0%
the information that it delivers
0%
allocating capital most productively
0%
all of the above
Explanation
A capital market can be defined as a market for long and medium-term funds. It refers to the organizations or institutions which provide funds for more than one year time period. The capital market should also be efficient in respect of:
a) minimizing transaction costs
b) the information that it delivers
c) allocating capital most productively.
Hence, D is the correct option.
The investors in Primary market are ______.
Report Question
0%
banks
0%
financial institutions
0%
insurance companies
0%
all of the above
Explanation
The investors in the Primary market are banks, financial institutions, and insurance companies. The primary market is also known as the new issues market, which deals with new securities being issued for the first time.
The primary market directly contributes to capital formation because in the primary market company goes directly to investors and utilize the funds for investment purpose. The primary market does not include finance in the form of loans from financial institutions.
Hence, D is the correct option.
In NSE, the trading rights are with the ______ who offer their services to the investors.
Report Question
0%
trading members
0%
RBI
0%
SEBI
0%
all of the above
Explanation
In NSE, the trading rights are with the trading members who offer their services to the investors. NSE is managed by professionals, who do not directly or indirectly trade on the exchange- this is a true statement. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSE was established by financial institutions, insurance companies and banks. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.
What are the objectives of Listing?
Report Question
0%
To provide ready marketability and liquidity of a companys securities.
0%
To provide free negotiability to stocks.
0%
To protect shareholders and investors interests.
0%
All of the above
Explanation
Listing means the admission of securities of a company to trading on a stock exchange. Objectives of listing are as follows:
a) To provide ready marketability and liquidity of a company;s securities.
b) To provide free negotiability to stocks.
c) To protect shareholders and investors interests.
NSE launched the capital market segment in _______.
Report Question
0%
November 1993
0%
November 1991
0%
November 1992
0%
November 1994
Explanation
NSE launched the capital market segment in November 1994. In NSE, the trading rights are with the trading members who offer their services to the investors. NSE is managed by professionals, who do not directly or indirectly trade on the exchange- this is a true statement. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSE was established by financial institutions, insurance companies and banks. NSE launched the futures and options segment in June 2000 for various derivative instruments.
Which of the following paved way to the establishment of SEBI?
Report Question
0%
Unofficial private placements
0%
Rigging of prices
0%
Unofficial premium on new issues
0%
All of the above
Explanation
The Securities and Exchange Board of India was established by the Government of India as an interim administrative body. SEBI is established in order to protect the interests of the investors and provide safety for investment. SEBI performs certain functions in order to promote and develop activities of the stock exchange and increase the business in the stock exchange. It also helps to regulate the business in the stock exchange. It has framed certain rules and regulations to regulate the intermediaries.
The following paved way to the establishment of SEBI:
a) Unofficial private placements
b)Rigging of prices
c) Unofficial premium on new issues
Hence, D is the correct option.
NSE ensures equal access for investors all over the country with the help of appropriate communication network.
Report Question
0%
True
0%
False
Explanation
NSE ensures equal access for investors all over the country with the help of an appropriate communication network- this is a true statement. The NSE was established by financial institutions, insurance companies, and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange. In NSE, the trading rights are with the trading members who offer their services to the investors. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.
Meeting international benchmarks
and standards is one of the objectives of NSE.
Report Question
0%
True
0%
False
Explanation
Meeting international benchmarks and standards is one of the objectives of NSE- this is a true statement. NSE ensures equal access for investors all over the country with the help of an appropriate communication network. The NSE was established by financial institutions, insurance companies, and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange. In NSE, the trading rights are with the trading members who offer their services to the investors. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.
The Securities and Exchange Board of India was established by the Government of India _____.
Report Question
0%
as a cooperative society
0%
as a banking authority
0%
as an interim administrative body
0%
none of the above
Explanation
The Securities and Exchange Board of India was established by the Government of India as an interim administrative body. SEBI is established in order to protect the interests of the investors and provide safety for investment.
SEBI performs certain functions in order to promote and develop activities of stock exchange and increase the business in stock exchange. It also helps to regulate the business in stock exchange. It has framed certain rules and regulations to regulate the intermediaries.
NSE launched the futures and options segment in ____ for various derivative instruments.
Report Question
0%
June 2000
0%
June 2001
0%
June 2010
0%
June 2005
Explanation
NSE launched the futures and options segment in June 2000 for various derivative instruments. In NSE, the trading rights are with the trading members who offer their services to the investors. NSE is managed by professionals, who do not directly or indirectly trade on the exchange- this is a true statement. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSE was established by financial institutions, insurance companies and banks. NSE launched the capital market segment in November 1994.
NSE is managed by professionals, who do not directly or indirectly trade on the exchange.
Report Question
0%
True
0%
False
Explanation
NSE is managed by professionals, who do not directly or indirectly trade on the exchange- this is a true statement. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of an appropriate communication network. The NSE was established by financial institutions, insurance companies, and banks.
_______ segment of NSE provides an efficient and transparent platform for trading in equity.
Report Question
0%
Whole Sale Debt Market
0%
Retail Sale Debt Market
0%
Capital Market
0%
Money Market
Explanation
Capital market segment of NSE provides an efficient and transparent platform for trading in equity. The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested. Capital market can be defined as a market for long and medium term funds. It refers to the organizations or institutions which provide funds for more than one year time period.
The NSEI was established by ______.
Report Question
0%
financial institutions
0%
insurance companies
0%
banks
0%
all of the above
Explanation
The NSEI was established by financial institutions, insurance companies, and banks. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of an appropriate communication network. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.
Hence, D is the correct option.
Primary procedure in trading on a Stock Exchange is _______.
Report Question
0%
opening 'Demat' Account with Depository
0%
placing the Order
0%
selection of a registered broker
0%
executing the Order
Explanation
Primary procedure in trading on a Stock Exchange is selection of a registered broker. The buying and selling of securities can only be done through SEBI registered brokers who are members of the stock exchange . The broker can be individual, partnership firms or corporate bodies.
_____ means actual transfer of securities.
Report Question
0%
Executing the Order
0%
Placing the Order
0%
Opening 'Demat' Account with Depository
0%
Settlement
Explanation
Settlement means actual transfer of securities. This is the last stage in the trading of securities done by the broker on behalf of their clients. Settlement can be done in two ways, namely, on-spot settlement and forward settlement.
Clearing and settlement operations of NSC is carried out by.
Report Question
0%
NSDL
0%
NSCCL
0%
SBI
0%
CDSL
Explanation
The clearing and settlement operations of NSE are carried out by NSCCL. NSCCL (National Securities Clearing Corporation Ltd.)
To get listed in a stock exchange, the company should have issued for public subscription at least the minimum prescribed percentage of its share capital (49 percent).
Report Question
0%
True
0%
False
Explanation
To get listed in a stock exchange, the company should have issued for public subscription at least the minimum prescribed percentage of its share capital(49%) - this is a true statement. Allotment of shares is done on a fair and reasonable manner. In order to get listed, the company must comply with certain terms and conditions. Basic function of stock exchange are providing Liquidity and Marketability to existing securities.
SEBI was to function under the overall administrative control of the _______ of the Government of India.
Report Question
0%
Ministry of Finance
0%
Ministry of Commerce
0%
Ministry of Company Affairs
0%
Ministry of Economy
Explanation
SEBI was to function under the overall administrative control of the Ministry of Finance of the Government of India. SEBI was established to regulate the activities of stock exchange and to protect the interest of investor and provide safety of investment. SEBI also helps to develop activities of stock exchange.
The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading
practices etc. Identify the function which explains this ___________ .
Report Question
0%
Pricing of Securities
0%
Spreading of Equity Cult
0%
Contributes to Economic Growth
0%
Safety of Transaction
Explanation
The stock exchange can play a vital role in ensuring wider share ownership by regulating new issue better trading practices etc- spreading of equity cult function of stock exchange is mentioned. Basic function of stock exchange are providing Liquidity and Marketability to existing securities. Stock exchange can be defined as an association, organization or body of individuals whether incorporated or not established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.
The objectives of the two advisory Committees formed by SEBI are _________.
Report Question
0%
To advise SEBI on issues related to the development of primary market in India.
0%
To advise SEBI on disclosure requirements for companies.
0%
To advice the board in matters relating to the development and regulation of the secondary market in the country.
0%
All of the above
Explanation
SEBI was established to regulate the activities of stock exchange and to protect the interest of investor and provide safety of investment. The objectives of the two advisory Committees formed by SEBI are as follows:
a) To advise SEBI on issues related to the development of primary market in India.
b) To advise SEBI on disclosure requirements for companies.
c) To advice the board in matters relating to the development and regulation of the secondary market in the country.
Identify the development function of SEBI.
Report Question
0%
Investor education.
0%
Promotion of fair practices and code of conduct of all SROs.
0%
Training of intermediaries
0%
All of the above
Explanation
Development functions are performed by the SEBI to promote and develop activities in the stock exchange and increase the business of the stock exchange. Development functions of SEBI include:
a) Investor education.
b) Promotion of fair practices and code of conduct of all SROs.
c) Training of intermediaries.
Hence, D is the correct option.
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 12 Commerce Business Studies Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page
