MCQ Test
(Ch 1 and 2)
1. What is the full form of SEBI?
a. Security Exchange Board of India
b. Securities and Exchange Board of India
c. Stock and Exchange Batch of India
2. Which one of these is a physical asset?
a. Real Estate
b. Fixed Deposits
c. Equity
3. Which one of these investments offer lowest rate of interest?
a. Savings Bank Account
b. Fixed Deposits
c. Mutual Funds
4. Which one of these is not a long-term financial option available for
investments?
a. Post Office Savings Scheme
b. Public Provident Fund
c. Savings Bank Account
5. What is the full form of IPO?
a. Initial Public Offering
b. Institutional Public Offer
c. International Provident Fund
6. Which one of these is not a market participant?
a. Investor
b. Intermediaries
c. Depositories
7. What is the full form of DEA?
a. Department of Economic Affairs
b. Department of E Commerce Affairs
c. Department of Equity Allotment
8. What is the full form of DCA?
a. Department of Client Affairs
b. Department of Company Affairs
c. Department of Corporate Account
9. ……………….. is a contract wherein one party lends money to another on
pre-determined terms.
a. Share Certificate
b. Mutual Fund
c. Debt Instrument
10. Savings are linked to investments by a variety of intermediaries, through a
range of financial products called …………………….?
a. PPF
b. Insurance
c. Securities
11. ……………………… is the price at which a company’s shares are offered
initially in the primary market?
a. IPO
b. Market Price
c. Issue Price
12. Who decides the price of an issue?
a. Issuer
b. Merchant Banker
c. Both A and B
13. The prospectus is submitted to …………. for its approval?
a. RBI
b. SEBI
c. Merchant Banker
14. Which one of these is not an issue?
a. First Issue
b. Right Issue
c. Public issue
15. What is a Preferential Issue?
a. Issue of Securities to a selected group of people
b. Issue of Securities to existing share holders
c. Issue of shares to 50 or more people
16. The process of converting physical securities into electronic holdings is
called
a. Rematerialization
b. Dematerialization
c. Materialization
17. Can electronic securities be converted into physical certificates
a. Yes
b. No
18. What is the minimum number of days for which a bid should remain open
during book building
a. 1 day
b. 3 days
c. 5 days
19. An FD with bank is a
a. Short term investment
b. Long term investment
c. Both A and B
20. Gold is an example of which assets?
a. Physical assets
b. Financial assets
c. Short term assets
21.What is meant by Capital Appreciation?
a. Rise in the CMP of the share
b. Rise in the Book value of the share
c. Rise in the P/B ratio of the stock
22.SENSEX involves top ……… stocks in terms of Free Float Market
Capitalization.
a. 100
b. 50
c. 30
23.Dividend is usually given on ………………….
a. Book value
b. Current Market Value
c. Face Value
24.Which stock index has a more diversified sectorial distribution?
a. Nifty 50
b. SENSEX
25.Funds raised through loans or borrowings are …………………..
a. Borrowed Funds
b. Owner’s Equity
c. Share Capital
26.Expand ICICI
a. Industrial Credit and Investment Corporation of India
b. International Credit and Investment Corporation of India
c. Indian Credit and Investment Corporation of India
27.A Capital Market is a market for ………………….
a. Long term Capital
b. Short term Capital
c. Fixed Capital
28.Primary Market is also known as:
a. Capital Market
b. Money Market
c. New Issue Market
29.Secondary Market is also known as:
a. New Issue Market
b. Capital Market
c. Stock exchange
30.Which is the oldest stock exchange of Asia?
a. Hangsang
b. NSE
c. BSE
