Financial Market Question Bank
Q. What do you mean by financial market?
Q. What do you mean by allocation function of financial market?
Q. What is the need of proper allocation of funds in the financial market?
Q. Write the major alternative methods of allocation of funds in financial market?
Q. What do you understand by financial intermediation?
Q. Who are the financial intermediaries?
Q. What types of financial transactions are undertaken by the financial market?
Q. Explain the main functions of financial market?
Q. Explain the types of financial markets with the help of a diagram.
Q. What is money market?
Q. What are the main features of money market?
Q. Who are the main constituents or participants on the money market?
Q. Explain various money market instruments.
Q. What are zero coupon bonds?
Q. What do understand by bridge financing?
Q. What is cash reserve ratio?
Q. What is call rate?
Q. What is capital market?
Q. What are the constituents of capital market?
Q. What is ideal capital market?
Q. What are the components of capital market?
Q. What is primary market?
Q. What are the features of primary market?
Q. What are the main methods used to raise funds in primary market?
Q. What do you mean by stock exchange or secondary market?
Q. How does secondary market help the existing and fresh investors?
Q. Distinguish between money market and capital market.
Q. Write the functions of stock exchange.
Q. Explain the trading procedure at stock exchange.
Q. Define demutualization, badla, listing in relation to stock exchange.
Q. What is share certificate?
Q. What do you understand by dematerialization of securities?
Q. Write a note on NSE (national stock exchange).
Financial Market Question Bank
Q. What is the main reason of establishment of SEBI?
Q. What is the role of SEBI?
Q. Explain the main objectives of setting up of SEBI?
Q. Write the regulatory, protective and developmental functions of SEBI.
Q. Discuss the organization structure of SEBI with the help of a diagram.
Q. Explain the purpose of committees set up under SEBI.
Q. What do you mean by Depositary and Depositary Participant?
Q. What do you mean by Demat Account?
Q. What are advantages of Demat Account?
Q. The directors of a company want to modernise its plant and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for the new public issue of shares. Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why?
Write the values followed or ignored in the following cases:
Q. A public Ltd. Co. achieved the minimum subscriptions by private placement. Whose interest has been ignored here?
Q. A fast food manufacturing foreign company plans to open chain of cheap fast-food centers near the schools in Delhi.
Q. A Company does window dressing in its financial statement to attract investors and creditors.
Q. Mr. Suraj has certain privileged information available about the company where he is working. He leaked that information to one of the relatives so that he can make some profits in the share market.
Q. A company wants to expand and raise funds by issuing shares to select individuals known to them closely and not going for public issue.
Financial Market Question Bank
MCQs based on CBSE Sample Papers
Read the following statements carefully:
Statement I: Secondary Market directly promotes capital formation.
Statement II: Capital market deals in medium and long term securities such as equity shares and debentures.
In the light of given statements, choose the correct alternative from the following:
- Both the statements are true.
- Both the statements are false.
- Statement I is true, Statement II is false.
- *Statement II is true, Statement I is false.
SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?
- *Regulatory function
- Development function
- Protective function
- Both 1 and 3
The allocative function of Financial market helps in ________
- Bringing transparency in trading procedure
- *Earning higher rate of return to household sector
- Better functioning of depository
- Determining the prices of securities
STATEMENT I: Electronic holdings can be converted into physical certificates with the process of dematerialization.
STATEMENT II: There is no danger of theft, loss or forgery of share certificates in dematerialization.
Choose the correct option from the following:
- Statement I is true and II is false
- *Statement II is true and I is false
- Both the statements are true
- Both the statements are false
__________ is a number assigned to each transaction by the stock exchange and is printed on the contract note.
- Client code number
- *Unique order code
- Permanent account number
- Depository participant number.
Which of the following statements is incorrect?
- Providing liquidity to securities is one of the functions of stock exchange
- Process of holding shares in electronic form is known as Dematerialization
- *Securities Exchange Board of India performs the regulatory function of controlling insider trading and imposing penalties for such practices.
- Capital market consists of Commercial banks, Development banks and stock exchange.
Arrange the steps involved in trading procedure at the stock exchange in correct sequence:
i) Settlement of order
ii) Opening of Demat Account
iii) Placing of order
iv) Execution of order
- a) (ii) ; (iv);( iii);(i)
- b) (ii) ;(i) ;(iii);(ii)
- c) (iii);(ii);( ii);(i)
- *d) (ii);(iii);(iv);(i)
Financial Market Question Bank
MCQs based on CBSE Question Papers
Question:
From the following, identify the one which is not a function of stock exchange:
- Providing liquidity and marketability to existing securities
- Spreading of equity cult
- Ensuring safety of transactions
- *Ensuring that there is no scope for speculation
Question:
In the __________ a securities account can be opened, all shares can be deposited in it. These can be withdrawn/sold at any time and instruction to deliver or receive shares on behalf of the investor can be given.
- Primary market
- Stock exchange
- Bank
- *Depository
MCQs to Revise Business Studies Class 12
Financial Market – Meaning and Types
Financial Market Keywords and Brief Notes
Check Your Understanding:
Activity 1
Activity 2