Financial Markets Quiz - Session 1,2,3 M1

What is the primary function of a financial market?

• Increase taxes

• Facilitate savings only

• Allocate capital efficiently

• Set fiscal policies

Which of the following is an example of an equity market?

• Government bond auction

• Real estate transaction

• Bombay Stock Exchange (BSE)

• Commodity exchange

Which instrument gives ownership in a company?

• Bond

• Mutual Fund

• Preference Share

• Equity Share

What does IPO stand for?

• Internal Public Offer

• Initial Private Offering

• Initial Public Offering

• Internal Price Order

Which is not a characteristic of a well-functioning financial market?

• Liquidity

• Transparency

• Government monopoly

• Accessibility

Secondary markets deal with:

• Fresh issue of securities

• Trading existing securities

• Commodity trading

• Real estate

What role do stock exchanges play?

• Provide capital subsidies

• Ensure inflation control

• Facilitate trading of securities

• Print currency

Who regulates the equity markets in India?

• RBI

• SEBI

• IRDA

• NITI Aayog

Which market helps companies raise long-term capital?

• Derivative Market

• Primary Market

• Money Market

• Forex Market

Market capitalization is calculated as:

• Share Price ÷ Number of Shares

• Number of Shares × Share Price

• Total Assets ÷ Liabilities

• Profit × Growth Rate