MCQs on Financial Market | Primary and Secondary Market MCQs

[MCQs on Financial Market, Primary and Secondary Market MCQs, Financial Market MCQs, MCQs on Financial Market]

Banking MCQs
Multiple Choice Questions and Answers
MCQs on Financial Market

1. Primary market is also known as:

a) Capital Market

b) Money Market

c) Financial Market

d) New Issue Market

2. Secondary market is also known as:

a) New issue market

b) Money Market

c) Capital Market

d) Stock Exchange

3. Which of the following is not a component of financial market?

a) Capital Market

b) Money Market

c) Both a & b

d) None of the above

4. Financial assets include:

a) Shares

b) Debentures

c) Treasury bills & Commercial papers

d) All of the above

5. Who is the largest regulator of the Indian money market?

Ans: Reserve Bank of India

6. Which of the following is not a component of capital market?

a) Primary Market

b) Secondary Market

c) Both a & b

d) None of the above

7. Which of the following is not an instrument of money market?

a) Call money

b) Commercial papers

c) CDs and Bills of Exchanges

d) Securities of Companies

8. Which of the following are instruments of money market?

a) Shares

b) Debentures

c) ADRs and GDRs

d) All of the above

9. Who can invest in money market instruments?

a) Banks

b) Insurance Companies

c) Mutual funds

d) All of the above

10. Marketable securities are also known as:

a) Near money

b) Plastic money

c) Digital money

d) Crypto currency

11. Which of the following are the participants of money market?

a) RBI

b) Commercial banks

c) Non-bank financial institutions

d) All of the above

12. In which year NSE was established?

a) 1988

b) 1991

c) 1992

d) 1875

Hint: NSEI was formed in 1991 but recognized in 1992.

13. In which year BSE was established?

a) 1988

b) 1991

c) 1992

d) 1875

14. Which one the following is the oldest stock exchange of Asia?

a) NSE

b) BSE

c) China Stock Exchange

d) Hangsang

Hint: BSE is the oldest stock exchange of Asia and India. It was established in the year 1875.

15. In which year OTCEI was established?

a) 1988

b) 1991

c) 1990

d) 1875

16. Write the full form of NSEI, BSE and OTCEI.

Ans: NSEI – National stock exchange of India (Nifty)-Nov, 1992

BSE – Bombay Stock Exchange (Sensex) – 1875 (Oldest Stock exchange of India)

OTCEI – Over the Counter Exchange of India – October, 1990

17. How many stock exchanges are there in India?

a) Five

b) Eight

c) Nine

d) Twenty four

Hint: Presently there are eight active stock exchanges are in India.

18. Who is the regulator of Capital markets in India?

Ans: SEBI (Securities and Exchange Board of India)

19. Name the system where there is electronic book entry form of holding and transferring the securities.

Ans: Dematerialisation.

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Also Read:

1. HS 12 Banking Chapter wise Notes

2. AHSEC Class 12 Banking Question Papers From 2012 Till Date

3. AHSEC Class 12 Banking Solved Question Papers From 2012 Till Date

4. Banking Chapter wise MCQs

5. Class 12 Banking Important Questions and Question Bank

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20. What is ‘Demutualisation of securities?’

Ans: It separates the ownership and control of stock exchanges from trading rights.

21. Name the Benchmark index of BSE.

Ans: SENSEX. (It includes 30 companies)

22. Name the Benchmark index of NSE.

Ans: NIFTY (It includes 50 companies)

23. Stock exchange is called economic barometer.

Ans: True

24. Capital Market is the market for long term funds.

Ans: True

25. Money market is the market for short term funds? T/F

Ans: True