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Financial Market Question Bank

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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:

  1. Providing liquidity and marketability to existing securities
  2. Spreading of equity cult
  3. Ensuring safety of transactions
  4. *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 These can be withdrawn/sold at any time and instruction to deliver or receive shares on behalf of the investor can be given.

  1. Primary market
  2. Stock exchange
  3. Bank
  4. *Depository

Question:

________ serves as an intermediary between the investor and the depository who is authorised to maintain the accounts of dematerialised shares.

  1. *Depository Participant
  2. National Securities Depository Limited
  3. Central Depository Services Limited
  4. Stock Exchange

Question:

Read the following statements: Assertion (A) and Reason (R).

Assertion: Holding shares in demat form is very convenient as it is just like a bank account.

Reason: Securities and Exchange Board of India (SEBI) has made it mandatory for the settlement procedures to take place in demat form.

Choose the correct alternative from the following:

  1. Assertion is false and Reason is true.
  2. Both Assertion and Reason are false.
  3. *Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion.
  4. Both Assertion and Reason are true and Reason is the correct explanation of Assertion.

Question:

The market where existing securities are traded is known as:

  1. Both Primary and Secondary Market
  2. Primary Market
  3. *Secondary Market
  4. Money Market

Question:

Simran, a first-time investor, was excited yet nervous about investing in the stock market as she felt it was risky. She sought guidance from her friend, Raman, who was an experienced investor. Raman assured Simran that it is safe to invest in the stock market as the membership of stock exchange is regulated by Securities and Exchange Board of India (SEBI). She also told Simran that SEBI performs various functions to protect the rights and interests of investors.

Which of the following functions mentioned by Raman is not a protective function of SEBI?

  1. Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging, etc.
  2. *Conducting research and publishing information useful to all market participants.
  3. Controlling insider trading and imposing penalties for such practices.
  4. Promotion of fair practices and code of conduct in the securities market.

MCQs to Revise Business Studies Class 12

Financial Market – Meaning and Types

Financial Market Keywords and Brief Notes

Pages: 1 2 3 4