E-COMMERCE- FINANCIAL MARKET MCQS WITH ANSWERS

 E-COMMERCE-B. COM. SEMESTER-II

FINANCIAL MARKET MCQS WITH ANSWERS



1. After the trade has been executed, the broker issues a Contract Note to the investor within _____.


(a) 52 hours


(b) 24 hours


(c) 48 hours


(d) 12 hours


Answer (b) 24 hours


2. On this day, the exchange will deliver the share or make payment to the other broker, _____.


(a) Pay-in day


(b) Pay-out day


(c) Transaction day


(d) None of the above


Answer: (b) Pay-out day


3. The mandatory detail that an investor has to provide to the broker at the time of opening a Demat account is _____.


(a) Date of birth and address


(b) PAN number


(c) Residential status (Indian/NRI)


(d) Bank account details.


Answer: (b) PAN number


4. Identify the correct sequence of steps to be followed in the trading procedure at the Stock Exchange.


(a) Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order


(b) Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order


(c) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order


(d) Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order


Answer: (c) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order


5. It serves as an intermediary between the investor and the depository who is authorised to maintain the accounts of dematerialised shares.


(a) Depository participant


(b) Depository


(c) Stock exchange


(d) None of the above


Answer: (a) Depository participant


6. One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered sub-brokers. Identify the related function of the Securities and Exchange Board of India _____.


(a) Regulatory function


(b) Protective function


(c) Developmental function


(d) None of the above


Answer: (a) Regulatory function


7. Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange.


(a) Providing scope for speculation


(b) Providing liquidity and marketability to existing securities


(c) Pricing of security


(d) Spreading of the equity cult


Answer: (b) Providing liquidity and marketability to existing securities


8. Stock Exchange works as a mechanism for the valuation of securities through the forces of demand and supply. Identify the related function performed by the stock exchanges.


(a) Providing liquidity and marketability to existing securities


(b) Safety of transaction


(c) Pricing of security


(d) Spreading of the equity cult


Answer: (c) Pricing of security


9. Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.


(a) Private placement


(b) Offer through a prospectus


(c) Offer for sale


(d) All of the above


Answer: (b) Offer through a prospectus


10. They can be issued to individuals, corporations, and companies during periods of tight liquidity when the deposit growth of banks is slow, but the demand for credit is high.


(a) Commercial papers


(b) Call money


(c) Commercial bill


(d) Certificate of deposit


Answer: (d) Certificate of deposit


11. A company can raise capital through the primary market in the form of _____.


(a) Equity shares


(b) Preference shares


(c) Debentures


(d) All of the above


Answer: (d) All of the above


12. It is a short-term, negotiable, self-liquidating instrument that is used to finance the credit sales of firms.


(a) Commercial bill


(b) Commercial papers


(c) Call money


(d) None of the above


Answer: (a) Commercial bill


13. It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.


(a) Commercial bill


(b) Commercial papers


(c) Call money


(d) None of the above


Answer: (c) Call money


14. Who issues a treasury bill?


(a) Any nationalised bank


(b) Any private sector bank


(c) Reserve Bank of India


(d) All of the above


Answer: (c) Reserve Bank of India


15. It is a market for short-term funds that deals in monetary assets whose period of maturity is up to one year.


(a) Primary market


(b) Secondary market


(c) Capital market


(d) Money market


Answer: (d) Money market

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