Financial Markets Test

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Financial Markets Test - 21

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Weekly Quiz Competition

Question 1
1 / -0

The strategic objective of Bombay stock exchange are __________.

A
To promote, develop and maintain a well-regulated market for dealings in securities.

B
To safeguard the interest of members and the investing public having dealings on the exchange.

C
To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.

D
All of the above

Solution

BSE stands for Bombay Stock Exchange. BSE provides a host of services to capital market participants including risk management, clearing and settlement. It can be defined as a free-float market weighted stock exchange platform. The strategic objective of Bombay stock exchanges are:a) To promote, develop and maintain a well-regulated market for dealings in securities.
b) To safeguard the interest of members and the investing public having dealings on the exchange.
c) To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.
Question 2
1 / -0

BSE provides a host of services to capital market participants including ________.

A
risk management

B
clearing

C
settlement

D
all of the above

Solution

BSE provides a host of services to capital market participants including:
a) risk management
b) clearing
c) settlementBSE helps to promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities. It helps to maintain well regulated markets on securities.
Question 3
1 / -0

Which of the following is/are true about NSE?

A
The transactions and orders are entered only through code numbers.

B
There is no need for any stock exchange floor to transact.

C
It has its access throughout the country.

D
All of the above

Solution

Following are true about NSE:
a) The transactions and orders are entered only through code numbers.
b) There is no need for any stock exchange floor to transact.
c) It has its access throughout the country.
Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.In NSE, the trading rights are with the trading members who offer their services to the investorsNSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.
Question 4
1 / -0

The fully automated screen based trading system that it runs is called _______.

A
National Exchange for Automated Trading

B
State Exchange for Automated Trading

C
District Exchange for Automated Trading

D
None of the above

Solution

The fully automated screen based trading system that it runs is called National Exchange for Automated Trading. It is the first exchange in the world to use satellite communication technology for trading. It is a state of the art client server based application.
Question 5
1 / -0

NSE provides trading across sectors viz ______.

A
Equities

B
Derivatives

C
Debt

D
All of the above

Solution

NSE provids trading across sectors viz, equities, derivatives and debt. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network.
The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.In NSE, the trading rights are with the trading members who offer their services to the investors.
NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.
Question 6
1 / -0

Identify the function(s) of NSE from the following.

A
Providing a fair, efficient and transparent securities market to investors using electronic trading systems

B
Enabling shorter settlement cycles and book entry settlements systems

C
Meeting the current international standards of securities markets

D
All of the above

Solution

Functions of NSE are:
a) Providing a fair, efficient and transparent securities market to investors using electronic trading systems
b) Enabling shorter settlement cycles and book entry settlements systems
c) Meeting the current international standards of securities markets
Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.
Question 7
1 / -0

NSE employs a _______ mechanism where each trading day is considered as a trading period.

A
trading settlement

B
rolling settlement

C
settlement

D
none of the above

Solution

NSE employs a rolling settlement mechanism where each trading day is considered as a trading period. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSEI was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.
Question 8
1 / -0

Example of insider trading could be _______.

A
Calling for information form, undertaking inspection, conducting inquiries and audits of the stock exchange.

B
Some people manipulating the prices of securities for inflation or depressing the market price of securities.

C
Managers or Directors of a company may know that company will issue Bonus shares to its shareholders at a particular time and they purchase shares from market to make a profit with bonus issue.

D
All of the above

Solution

Example of insider trading could be- Managers or Directors of a company may know that company will issue Bonus shares to its shareholders at a particular time and they purchase shares from market to make a profit with bonus issue.Insider trading can be defined as an illegal trade practice in stock exchange. Insider trading is the trading of a public company's stock or other securities by individuals with access to information which are confidential.
Question 9
1 / -0

The SEBI was given a statutory status in the year _______.

A
1990

B
1991

C
1992

D
1993

Solution

The SEBI was given a statutory status in the year 1992. It was set up to regulate the functions of securities market. SEBI is a body corporate having a separate legal existence and perpetual succession. SEBI promotes orderly and healthy development in the stock exchange market.
Question 10
1 / -0

To be listed on NSEI, the minimum capital requirements for a company.

A
Rs. $$5$$ crores

B
Rs. $$3$$ crores

C
Rs. $$6$$ crores

D
Rs. $$1$$ crores

Solution

To be listed on NSEI, the minimum capital requirements for a company is Rs. 3 crores.

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Financial Markets Test - 21

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Financial Markets Test - 21

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SHARING IS CARING

Question 1

To promote, develop and maintain a well-regulated market for dealings in securities.

To safeguard the interest of members and the investing public having dealings on the exchange.

To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.

All of the above

Solution

Question 2

risk management

clearing

settlement

all of the above

Solution

Question 3

The transactions and orders are entered only through code numbers.

There is no need for any stock exchange floor to transact.

It has its access throughout the country.

All of the above

Solution

Question 4

National Exchange for Automated Trading

State Exchange for Automated Trading

District Exchange for Automated Trading

None of the above

Solution

Question 5

Equities

Derivatives

Debt

All of the above

Solution

Question 6

Providing a fair, efficient and transparent securities market to investors using electronic trading systems

Enabling shorter settlement cycles and book entry settlements systems

Meeting the current international standards of securities markets

All of the above

Solution

Question 7

trading settlement

rolling settlement

settlement

none of the above

Solution

Question 8

Calling for information form, undertaking inspection, conducting inquiries and audits of the stock exchange.

Some people manipulating the prices of securities for inflation or depressing the market price of securities.

Managers or Directors of a company may know that company will issue Bonus shares to its shareholders at a particular time and they purchase shares from market to make a profit with bonus issue.

All of the above

Solution

Question 9

1990

1991

1992

1993

Solution

Question 10

Rs. $$5$$ crores

Rs. $$3$$ crores

Rs. $$6$$ crores

Rs. $$1$$ crores

Solution

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