76. __________ is a benchmark Indian Stock Market Index that represents the weighted average of 50 of the largest Indian Companies listed on the National Stock Exchange.
SENSEX
NIFTY
SIFTY
INDEX
Answer.1. NIFTY
Explanation:
NIFTY is a benchmark Indian Stock Market Index that represents the weighted average of 50 of the largest Indian Companies listed on the National Stock Exchange.
77. What is the full form of ECB?
External Commercial Borrowings
External Commercial Bonds
Equity Capital Balance
None of the Above
Answer.1. External Commercial Borrowings
Explanation:
The full form of ECB is External Commercial Borrowings.
ECB, or External Commercial Borrowing as it is known in its extended form, is an instrument that helps Indian firms and organizations raise funds from outside India in foreign currencies.
78. For listed companies the prices are publicly arrived at on the basis of demand and supply and hence stock exchange quotations reflect the real value of the security.
True
False
Can’t Say
none
Answer.1. True
Explanation:
Fair Price for the Securities:- The prices are publicly arrived at on the basis of demand and supply; the stock exchange quotations are generally reflective of the real value of the security. Thus listing helps generate an independent valuation of the company by the market.
79. SEBI started its actual functioning when
It was set up in 1988
RBI gave it permission in 1989
SEBI Act was passed in 1992
It was registered
Answer.3. SEBI Act was passed in 1992
Explanation:
SEBI is a statutory body and a market regulator, which controls the securities market in India.
Securities and Exchange Board of India (SEBI) was first established in 1988 as a non-statutory body for regulating the securities market. It became an autonomous body on 30 January 1992 and was accorded statutory powers with the passing of the SEBI Act 1992 by the Indian Parliament.
80. Full Form of NEAT is
National Exchange for Automated Trading
National Equity Automated Trading
National Exchange for Analysis and Trading
None of the Above
Answer.1. National Exchange for Automated Trading
Explanation:
Full-Form of NEAT is National Exchange for Automated Trading. The National Exchange for Automated Trading (NEAT) is the NSE’s trading system.
The fully automated screen-based trading system provides trading, clearing, and settlement functionality. Orders in NEAT are executed on a price/time priority basis.
81. What is the full form of NSDL
National Stock Dealing Ltd
National Securities Dealers Ltd
National Securities Depository Ltd
National Stock and Debt Ltd
Answer.3. National Securities Depository Ltd
Explanation:
The full form of NSDL is National Securities Depository Ltd. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs.
82. Market making is a unique concept of which stock exchange of India?
NSE
BSE
ISE
OTCEI
Answer.4. OTCEI
Explanation:
Market making is a unique concept of OTCEI stock exchange of India.
The Over-The-Counter Exchange of India (OTCEI) is an electronic stock exchange based in India that consists of small- and medium-sized firms aiming to gain access to overseas capital markets, including electronic exchanges in the U.S. such as the NASDAQ.
83. Capital Market in India plays a role in developing integration among:
Real Sector and Financial Sector
Long-term and Short-term interest costs
Equity and Debt Instruments
All of the above
Answer.4. All of the above
Explanation:
The primary role of the capital market is to raise long-term funds for governments, banks, and corporations while providing a platform for the trading of securities.
Capital market leads to integration among real and financial sectors, equity and debt instruments, government and private sector, domestic and external funds, etc.
Capital Market in India plays a role in developing integration among
Real Sector and Financial Sector
Long-term and Short-term interest costs
Equity and Debt Instruments
84. Sentence A – Through a Rights issue, fresh capital can be raised and sentence B – Through a Bonus Issue Fresh capital can be raise
Only Sentence A is true
Both Sentences A and B are true
Only Sentence of B is true
Both Sentences A and B are False
Answer.1. Only Sentence A is true
Explanation:
When a company needs additional capital and keeps the voting rights of the existing shareholders proportionately balanced, the company issues Rights shares.
Bonus shares increase a company’s share capital but not its net assets.
Hence only the statement A is correct.
85. Book Building is basically _______ of shares.
An auction
A process of listing
Credit rating
None of the Above
Answer.1. An auction
Explanation:
Book Building is basically an auction of shares. It is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price.
86. In the process of Book Building if the public portion gets oversubscribed
The size of the Public Portion is raised
The allotment is made on a proportionate basis
The placement portion is canceled
None of the above
Answer.2. The allotment is made on a proportionate basis
Explanation:
In the process of Book Building if the public portion gets oversubscribed the allotment is made on a proportionate basis. The unsubscribed portion devolves upon the underwriters and they will be obliged to buy the remaining shares.
87. Stock Futures, Stock Options, Index Futures and Index Options are ________
Bonds
Combination of Equity and Debt
Equity Derivatives
None of the Above
Answer.3. Equity Derivatives
Explanation:
Stock Futures, Stock Options, Index Futures, and Index Options are Equity Derivatives.
An equity derivative is a financial instrument whose value is based on the equity movements of the underlying asset. For example, a stock option is an equity derivative, because its value is based on the price movements of the underlying stock.
88. Which Stock Exchange of India was set up with an objective to meet the current international standards of the securities market?
BSE
ISE
OTCEI
NSE
Answer.4. NSE
Explanation:
NSE Stock Exchange of India was set up with an objective to meet the current international standards of the securities market
Following are the objectives of NSE:
Establishing a nationwide trading facility for all types of securities.
Ensuring equal access to investors all over the country through an appropriate communication network.
Providing a fair, efficient, and transparent securities market using an electronic trading system.
89. To provide a focal point for central bank (RBI) intervention for influencing liquidity and general level of interest rates in the economy is an important function of
Secondary Market
Money Market
Capital Market
Forex Market
Answer.2. Money Market
Explanation:
To provide a focal point for central bank (RBI) intervention for influencing liquidity and general level of interest rates in the economy is an important function of the money market.
The money market should provide an equilibrating mechanism to even out the demand for and supply of short-term funds.
90. Indigenous bankers and money lenders are constituents of _______
Organized Money Market
Organized Stock Market
Unorganized Money Market
None of the Above
Answer.3. Unorganized Money Market
Explanation:
Indigenous bankers and money lenders are constituents of the unorganized Money Market.
The unorganized sector of the money market is largely made up of indigenous bankers, money lenders, traders, commission agents etc., some of whom combine money lending with trade and other activities.
