WorksheetsFinancial Markets - MCQ Quiz
Total questions: 33
Worksheet time: 6mins
Which of the following is a function of the financial market?
Reduce population
Facilitate the flow of funds
Increase subsidies
Provide food security
The capital market deals in securities with maturity:
Less than 1 year
More than 1 year
Exactly 1 year
No maturity
The money market deals in:
Long-term instruments
Real estate
Short-term instruments
Derivatives only
Which of the following is a primary market instrument?
Treasury Bill
IPO
Commercial Paper
Certificate of Deposit
What is the minimum subscription required in an IPO?
50%
60%
75%
90%
Which of the following is not part of the capital market?
ESOP
FPO
OFS
Call Money
What is the purpose of a rights issue?
To reduce taxes
To issue free shares
To raise funds from existing shareholders
To pay dividends
Bonus shares are issued:
For free to shareholders
At a premium price
To promoters only
Only during losses
Sweat equity shares are issued to:
Shareholders
Directors and employees
Public investors
Banks only
Which is a feature of the secondary market?
New securities are issued
Only government bonds are sold
Already issued securities are traded
Trading only happens offline
The oldest stock exchange in India is:
NSE
MCX
BSE
NCDEX
Which stock exchange uses BOLT system?
NSE
MCX
OTCEI
BSE
In which year was NSE established?
1985
1992
2000
1875
What is the full form of FPO?
Final Public Offer
Fixed Price Option
Follow on Public Offer
Future Purchase Option
Which of the following issues shares through private placement?
Government companies
Public sector undertakings
Private companies
Stock exchanges
Commercial papers are:
Long-term debt instruments
Unsecured short-term instruments
Government securities
Shares
What is the minimum investment in a commercial paper?
1 lakh
2 lakh
5 lakh
10,000
Certificate of Deposits (CDs) are issued by:
RRBs
Mutual Funds
Commercial Banks
NBFCs only
Treasury bills are issued by:
SEBI
RBI on behalf of Govt. of India
NABARD
SBI
Which is not a stock exchange in India?
NSE
MCX
NYSE
BSE
What does MCX stand for?
Mutual Currency Exchange
Multi Commodity Exchange
Market Clearing Exchange
Multi Collateral Exchange
Which instrument is exchange-traded?
Call Money
OFS
OTC contracts
Futures
Which currency pair is not allowed in India?
USD/INR
GBP/USD
JPY/EUR
EUR/INR
Which of the following affects Forex rates?
Inflation
Political stability
Interest rates
All of the above
Which financial instrument is commonly used for hedging currency risk?
Equity shares
Real estate
Currency derivatives
Bonds
The OTC market refers to:
Online Trading Corporation
On-Time Clearance market
Over-the-Counter market
Open Trade Contract
What is the main feature of OTC derivatives?
Regulated by exchanges
Traded on stock market
Customized contracts between parties
Only for public sector companies
Which of the following is a currency pair traded in India?
EUR/JPY
USD/EUR
EUR/USD
USD/INR
The call money market is used for:
Long-term borrowing
Overnight funds
Fixed deposits
Share trading
The RBI Retail Direct Scheme allows individuals to invest in:
Mutual Funds
Derivatives
Government securities
Private equities
What is the primary purpose of a stock exchange?
To regulate interest rates
To provide loans to companies
To facilitate trading of existing securities
To issue new securities
Which of the following is a characteristic of a mutual fund?
It is a type of insurance
It pools money from multiple investors
It is only available to wealthy individuals
It guarantees fixed returns
What does the term 'liquidity' refer to in financial markets?
The profitability of an investment
The amount of debt a company has
The ability to convert assets into cash quickly
The duration of an investment
