Functions of Stock Exchange - Topic 2

Select the correct option(s).

The rise in the share prices indicate ____________ cycle.

• recession

• boom

• barometer

Write a word or a term or a phrase.

The first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

(a)  

State whether true or false.

A stock exchange is a reliable barometer to measure the economic condition of a country.

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Answer explanation

Economic indicator or barometer measures the economic condition of a country. The fluctuations in the share prices indicate the peak or the recession cycle of the economy.

State whether true or false.

Bombay Stock Exchange is the oldest stock exchange in India.

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• 

State whether true or false.

NSE was founded in 1875.

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• 

State whether true or false.

Stock exchange protects the interest of investors.

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• 

Answer explanation

In the stock market, only the listed securities are traded. Therefore, it protects the interest of investors. All the companies listed have to follow the rules and regulations laid down by the stock exchange. This provides safety to the investors.

Complete the sentence.

The oldest Stock Exchange in India is the (a)   .

Complete the sentence.

The largest and most modern stock exchange in India is the (a)   .

Select the correct option(s).

The ________ is the first stock exchange to be recognised by the Indian Government under the Securities Contracts (Regulation) Act.

• BSE

• NSE

• OTCEI

Select the correct option(s).

The main index of NSE is ________.

• RIFTY

• FIFTY

• NIFTY