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Worksheets Name

Mcqs on Basics of stock market

Class
Total questions: 40
Worksheet time: 40mins
Date
Instructor name: vaishnavi bankar

1. The depository participant

a) is the link between the depositor and the b) All the above
investor

c) can offer depository services only after it gets d) A depository can be compared with bank,
proper registration from SEBI

2. two depositories of India.

a) National Share Depository Ltd and Central b) National Stock Depository Lenders and
Share Depository Ltd Central Stock Depository Lenders

c) National Securities Depository Ltd. and d) National Stock Depository Ltd. and Central
Central Depository Securities Ltd. Stock Depository Ltd.

3. a.A jobber is an independent dealer in securities. b.He is not allowed to deal with the public directly.
c. He works for commission. Which one is correct

a) a only b) None of the above

c) a,b and c d) a and b

4. India’s first national online stock market with segment for both debt and equity securities is

a) OTC Exchange of India b) National Stock exchange

c) Ahmedabad Stock Exchange d) Bombay Stock Exchange

5. NSE incorporated in a.) 1992 b.) was given recognition as stock exchange in April 1993 c.) started
operation in June 1994. d)NSE was set up by IDBI and other financial institutions e.) paid up equity
capital of Rs.25 crores. Which one is correct

a) a,b,c, d and e b) only a

c) a, b and c d) only d and e

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6. 10. When was Nifty established?

a) (b) 1965 b) (c) 1991

c) (d) 1996 d) (a) 1952

7. The New York Stock Exchange is called:

a) a. situational change b) b. nominal change

c) d. chemical change d) c. physical change

8. Bull is a speculator who purchases various types of shares. He purchases to sell them on higher
prices in future. He may sell the shares and securities before coming in possession. If the price falls
then he suffers a loss.

a) True b) False

9. Which of the following does financial services industry consist of? I. Telecommunication II. Insurance
III. Fund Management IV. Trusts

a) A. I and II b) C. I, II and III

c) D. II, III and IV d) B. III and IV

10. . Which of the following index is not matched correctly?

a) (a) SET: Thailand b) (c) NASDAQ: America

c) (b) JCI: Japan d) (d) TSEC: Taiwan

11. Which one is correct ?

a) Contango means to carry over dealing to the b) Contango is a commission paid to the stock
settlement which is a reward paid by the exchange by the broker
buyer to the broker to carry the dealing to the
next settlement,

c) None of the above d) Contango is a fine paid to SEBI

12. . Computers performs this function :

a) a. design trading b) b. system trading

c) c. file trading d) d. program trading

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13. . Which of the following cities does NOT have a formal stock exchange?

a) d) Hong Kong b) b) London

c) c) Monte Carlo d) a) Frankfurt

14. How many companies are included in the SENSEX?

a) 111 b) 50

c) 25 d) 30

15. NASDAQ means

a) National Association of Share Dealers b) National Association of Securities Dealers

Automated Quotation Automated Quotation

c) National Association of Stock Dealers d) National Authority of Stock Dealers

Automated Quotation Automated Quotation

16. Which one is true about National Stock exchange

a) B.The settlement cycle is T+3 b) A.There is screen based trading

c) C.The settlement cycle T+2 d) A AND B

17. Bear He is always in a position to dispose of securities which he does not possess. He makes profit
on each transaction. He sells the various securities for the objective of taking advantages of an
expected fall in prices.

a) True b) False

18. A fixed income security is also called:

a) b. basic value b) a. decided value

c) c. actual value d) d. fixed value

19. . Broker :- A.Broker is a person who transact business in securities on behalf of his clients
B.receives commission for his services. C.He deals between the jobbers and members.

a) A and C b) B only

c) A, B and C d) A only

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20. The short term financial instruments traded in money market is commonly called

a) C. Notes b) D. Commercial Papers

c) B. Shares d) A. Bonds

21. recognized stock exchanges which have to function under

a) the rules, by –laws and regulations approved b) the rules, by –laws and regulations approved
by the Central Government. by the Central and State Government

c) the rules, by –laws and regulations approved d) the rules, by –laws and regulations approved
by the State Government. by the Ministry of Corporate Affairs

22. 9. What is called "Blue Chip"?

a) (c) A multinational company b) (d) A company which is listed on a foreign

stock exchange

c) (a)Companies which are run by large d) (b) A company, whose share always provides
corporate houses profit

23. The estimated price of the stock market is at

a) c. 52 trillion dollars b) b. 51 trillion dollars

c) d. 53 trillion dollars d) a. 50 trillion dollars

24. Which of the following is responsible for the fluctuations in the Sensex?

a) (b) Monetary policy b) (a) Rain

c) (d) All of the above d) (c) Political instability

25. Which of the following is not a credit rating agency?

a) (d) CARE b) (c) NIKKEI

c) b) ICRA d) (a) CRISIL

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26. Foreign Institutional Investors means

a) a and b above b) b.They are eligible to make purchase shares

and convertible debentures issued by Indian
Companies under the Portfolio Investment
Scheme

c) None of the above d) a.Foreign Institutional Investors are an

institution established and incorporated
outside India, which proposes to make
investment in Indian Securities..

27. What is SP-500?

a) A crop of wheat b) The name of Mumbai-based office of SEBI

c) A scheme announced by the Government of d) A stock exchange of USA

India

28. Financial intermediation is the process that the financial intermediaries connect
________________ and _____________ by transferring funds from one side to another.

a) A. Banks and account holders b) B. Borrowers and lenders

c) C. Borrowers and securities firms d) D. Investors and lenders

29. .Backwardation:-

a) It is an interest which is paid by the sellers of b) It is a commission which is paid by the sellers
securities to the buyers who wants to of securities to the buyers who wants to
postpone transaction to the next account. postpone transaction to the next account.

c) It is a fee which is paid by the brokers to d) It is a fee which is paid by the brokers to
SEBI stock exchanges.

30. You bought a share for $10 and sold it for $12 after one year. You received share dividend $1
during the holding period. What was the rate of holding period return?

a) B. 20% b) A. 10%

c) C. 30% d) D. 40%

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31. “Stock Exchange is an association, organization or body of individuals, whether incorporated or not,
established for the purpose of assisting, regulating and controlling business in buying, selling and
dealing in securities.” is defined under

a) Securities Contact Regulation Act,1956 b) Shares Contact Regulation Act,1956

c) Securities and Debentures Contact d) Securities Contact Regulation Act,1955

Regulation Act,1956

32. Actual trades are based on

a) c. laissez faire b) a. free economy

c) b. auction market d) d. closed market

33. Which of the following statements is correct?

a) Nikkei is related to Singapore Stock b) BSE does not belong to sensex

Exchange

c) FTSE-100 is a stock exchange of London, d) Middex belongs to Japan

which monitors European market activities

34. 9. The FTSE 100 index is used to measure stock market performance in which country?

a) c) Germany b) d) Finland

c) b) United Kingdom d) a) France

35. What is the meaning of “financing” in the financial market?

a) D. Converting the assets into cash b) C. Sourcing funds

c) A. Advising an organization to raise charity d) B. Investing in the securities market

funds

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36. The capital markets consist of the primary market and secondary market. Which of the following
statements is TRUE regarding the differences between the two markets?

a) B. Existing securities are traded in the b) D. Existing securities are distributed to

primary market while new issues are investors in the primary market while new
distributed to investors in the secondary issues are traded in the secondary market
market.

c) C. New issues are traded in the primary d) A. New issues are distributed to investors in
market while existing securities are the primary market while existing securities
distributed in the secondary market. are traded in the secondary market.

37. Where is the New York Stock Exchange located?

a) b) Empire State Building b) c) Times Square

c) a) Broadway d) d) Wall Street

38. Which one is correct statement?

a) None of the above b) Stag He is also a speculator. He is the lone

purchases the shares of newly floated
company and shown himself a genuine
investor and becomes the shareholder of the
company

c) Stag He is a long term investor. He is the lone d) Stag He is also a speculator. He purchases
purchaser of the shares of newly floated the shares of newly floated company and
company and shown himself a genuine shown himself a genuine investor. He is not
investor and becomes the shareholder of the willing to become an actual shareholder of
company the company. He purchases the shares to
sell them above the par value to earn
premium. A stag also suffer a loss.

39. KOSPI is the index of which country?

a) (c) Singapore b) (b) South Korea

c) d) France d) (a) Japan

40. . Which of the following words does not belong to the stock exchange?

a) (b) NSE b) (d) KPO

c) (a) NAV d) (c) IPO

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Answer Keys

1. b) All the above 2. c) National Securities 3. d) a and b

Depository Ltd. and
Central Depository
Securities Ltd.

4. b) National Stock exchange 5. a) a,b,c, d and e 6. c) (d) 1996

7. d) c. physical change 8. a) True 9. c) D. II, III and IV

10. c) (b) JCI: Japan
11. a) Contango means to 12. d) d. program trading
carry over dealing to the
settlement which is a
reward paid by the
buyer to the broker to
carry the dealing to the
next settlement,

13. c) c) Monte Carlo 14. d) 30 15. b) National Association of

Securities Dealers
Automated Quotation

16. d) A AND B 17. a) True 18. c) c. actual value

19. c) A, B and C 20. b) D. Commercial Papers 21. a) the rules, by –laws and
regulations approved by
the Central
Government.

22. d) (b) A company, whose 23. b) b. 51 trillion dollars 24. c) (d) All of the above
share always provides
profit

25. b) (c) NIKKEI 26. a) a and b above 27. d) A stock exchange of

USA

28. b) B. Borrowers and 29. a) It is an interest which is 30. c) C. 30%

lenders paid by the sellers of
securities to the buyers
who wants to postpone
transaction to the next
account.

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31. a) Securities Contact 32. c) b. auction market 33. c) FTSE-100 is a stock

Regulation Act,1956 exchange of London,
which monitors
European market
activities

34. c) b) United Kingdom
35. b) C. Sourcing funds
36. d) A. New issues are
distributed to investors
in the primary market
while existing securities
are traded in the
secondary market.

37. d) d) Wall Street
38. d) Stag He is also a 39. b) (b) South Korea
speculator. He
purchases the shares of
newly floated company
and shown himself a
genuine investor. He is
not willing to become an
actual shareholder of
the company. He
purchases the shares to
sell them above the par
value to earn premium.
A stag also suffer a
loss.

40. b) (d) KPO

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