Practice Test

Q1) __________ helps in transfer of resources form those with idle or surplus resources to others who have a productive need for them. Show Answer

Q2) Securities market converts saving into __________ Show Answer

Q3) Entities providing the infrastructure for fair trading in securities market are known as Show Answer

Q4) Primary market and secondary market are two part of _________. Show Answer

Q5) Primary market is also known as Show Answer

Q6) Secondary market is also known as Show Answer

Q7) ___________ is used by issuer for raising fresh capital from the investors by making initial public offer (IPO) Show Answer

Q8) ___________ provides liquidity to financial instruments issued in primary market Show Answer

Q9) OTC refers to ___________ Show Answer

Q10) Which of the following is / are intermediaries in securities market? Show Answer

Q11) Who are the agents of depositories? Show Answer

Q12) In the securities market, who takes care that interests of investors are protected? Show Answer

Q13) Which of the following market regulator regulates securities industry? Show Answer

Q14) SEBI was established under SEBI Act ___________. Show Answer

Q15) ___________ is the central bank of India Show Answer

Q16) ___________ is responsible for administering the monetary policy. Show Answer

Q17) SRO refers to _________. Show Answer

Q18) SRO are empowered to establish their buy-lows and enforce the same. Show Answer

Q19) Equity segment of stock exchange allow trading in _________. Show Answer

Q20) Indian companies can raise foreign currency resources through issue of _________. Show Answer

Q21) Debentures which cannot be converted in the equity shares of the company are known as Show Answer

Q22) Debentures of a company of par value Rs 100 issued at Rs 80 is known as issued at ___________ Show Answer

Q23) An open-ended scheme does not have any fixed maturity period. Show Answer

Q24) Mutual funds invest in diversified manner so as to reduce the overall risk of portfolio. Show Answer

Q25) ___________ is a product whose value is derived from the value of one or more underlying asset. Show Answer

Q26) ___________ Market facilitates trading of commodities. Show Answer

Q27) ___________ are organizations that hold securities of investors in electronic form. Show Answer

Q28) Which of the following institution can be appointed as depository participant? Show Answer

Q29) During IPO those who invest less than ___________ Rupees are known as retail investors. Show Answer

Q30) ___________ is the process of converting securities held in physical form into holdings in book entry form Show Answer

Q31) ___________ is the process of conversion of securities in electronic form to their physical form. Show Answer

Q32) ISIN is a ___________ character alpha –numeric code that uniquely identifies a security, across the world Show Answer

Q33) Pledged securities can never be unpledged. Show Answer

Q34) ___________ allows investors to take loan against securities held by them. Show Answer

Q35) The difference between the bid and ask price is known as ___________. Show Answer

Q36) The markets give companies a benchmark for their valuation. Show Answer

Q37) Depository holds securities in electronic form? Show Answer

Q38) Securities of investors in electronic form are maintained in __________ account. Show Answer

Q39) A stock broker means a member of_______. Show Answer

Q40) FPO refers to __________ Show Answer

Q41) IPO refers to _________. Show Answer

Q42) OTC is a ________ market. Show Answer

Q43) The securities market allows people to do _________ with their savings than they would otherwise. Show Answer

Q44) Securities market also facilitates people to invest in the ________ ideas and talents in the economy. Show Answer

Q45) The securities market provides a market place for purchase and sale of securities and thereby ensures transferability of securities, which is the basis for the __________ system. Show Answer

Q46) The liquidity available to investors does not inconvenience the enterprises that originally issued the securities to raise funds. Show Answer

Q47) In the absence of the securities market, the additional savings would have been consumed otherwise. Show Answer

Q48) Indian securities market does not require market regulator. Show Answer

Q49) The orders of SEBI under the securities laws are appealable before _________. Show Answer

Q50) Reserve Bank of India (RBI) is the central bank of the country which has the responsibility of administering the _________ policy. Show Answer

Q51) The equity segment of the stock exchange allows trading in ___________ Show Answer

Q52) Debentures are instruments for raising _________ term debt. Show Answer

Q53) Convertible debentures will be converted into ______________. Show Answer

Q54) The government raises short term funds only. Show Answer

Q55) Government securities are issued by the central government only. Show Answer

Q56) For a derivate which of the following can be underlying? Show Answer

Q57) Mutual funds are financial intermediaries? Show Answer

Q58) Mutual fund issue __________ to investors. Show Answer

Q59) Which of the following is not a security? Show Answer

Q60) Securities market is a place where buyer and __________ of securities can enter into transactions to purchase and sell securities. Show Answer

Q61) Investors in securities market are Show Answer

Q62) Which of the following is not a benefit of active secondary market? Show Answer

Q63) In case of OTC transaction counter party risk exists. Show Answer

Q64) Which of the following is/are basic function of SEBI? Show Answer

Q65) Which of the following is / are functions of RBI? Show Answer

Q66) Which of the following is/are not a function of RBI? Show Answer

Q67) Debentures are instruments for raising ___________ debt. Show Answer

Q68) An ___________ Scheme offer the investors the option to buy unit from the fund at any time and sell the unit back to the fund at any time. Show Answer

Q69) Treasury bills are issued for ___________ period. Show Answer

Q70) Which of the following is not a purpose of issue of bonds by companies? Show Answer

Q71) Futures and forward contracts are one and the same. Show Answer

Q72) Currently how many depositories are there in India? Show Answer

Q73) Who is a member of stock exchange? Show Answer

Q74) All the transaction of fund pay-in /pay-out are carried out by ___________. Show Answer

Q75) Qualified Institutional buyers means ___________ Show Answer

Q76) Procedure of pledging securities in demat form is very inconvenient & time consuming. Show Answer

Q77) A minor can be a nominee. Show Answer

Q78) Mutual funds units can be dematerialized Show Answer

Q79) RBI acts as a banker to the ____________. Show Answer

Q80) In order to improve liquidity in the ADR/GDR market, RBI issued guidelines in ______ to permit two?way fungibility for ADRs/GDRs. Show Answer

Q81) Debentures in India are typically secured by____________. Show Answer

Q82) __________ are pure debt instruments. Show Answer

Q83) By _________, the account holder can stop unexpected debits or credits or both, creeping into the account. Show Answer

Q84) The freeze is not reflected in the Transaction Statement. Show Answer

Q85) An account holder cannot change the nominee. Show Answer

Q86) Primary market & secondary market are two separable and independent segment. Show Answer

Q87) Issue of securities open to selected group of people (less than 50) is termed as ___________. Show Answer

Q88) Who guarantees settlement of trades executed on stock exchange? Show Answer

Q89) Which of the following is not a plays in primary market? Show Answer

Q90) In case of depository receipt the receipt holder does not has right to receive dividend. Show Answer

Q91) ___________ entitles an investor to buy equity shares after a specified time period at a given price. Show Answer

Q92) Securities issued by government (Central / State) are known as ___________. Show Answer

Q93) ___________ gives the buyer the right but not obligation to buy the underlying asset. Show Answer

Q94) Currency options are available on only ___________ pair. Show Answer

Q95) Which of the following clearing member does not have any trading rights? Show Answer

Q96) Which of the following is not a function of custodian? Show Answer

Q97) In ISIN the first two letters denotes the ___________. Show Answer

Q98) ___________ is a legal change of ownership of securities on account of death. Show Answer

Q99) Which of the following is incorrect? Show Answer

Q100) Which of the following statements is NOT correct? Show Answer

Q101) A depository participant __________. Show Answer

Q102) RBI has authority to destroy currency. Show Answer

Q103) ___________ are the first level market regulators. Show Answer

Q104) A depository receipt is not a negotiable instrument. Show Answer

Q105) When a security is termed ________, it refers to the feature that allows an instrument to be replaced by another of a similar description. Show Answer

Q106) Warrants entitle an investor to buy _________ after a specified time period at a given price. Show Answer

Q107) Government bonds cannot be traded on OTC market. Show Answer

Q108) Government securities do not carry default risk. Show Answer

Q109) Market regulators are important to protect the interest of investors. Show Answer

Q110) The securities market has ________categories of participants. Show Answer