Capital Market(Commerce ) Questions and Answers

Question 1. Who is 'Madhabi Puri Buch' in SEBI?
  1.    Chairpersons
  2.    Part-time member
  3.    Whole time member
  4.    None of these
Explanation:-
Answer: Option A. -> Chairpersons

Question 2. In India, NIFTY and SENSEX are calculated on the basis of
  1.    Market Capitalization
  2.    Paid up Capital
  3.    Free-float Capitalization
  4.    Authorized Share Capital
Explanation:-
Answer: Option C. -> Free-float Capitalization

Question 3. The money market where debt and stocks are traded and maturity period is more than a year is known as
  1.    Long-term market
  2.    Counter market
  3.    Capital market
  4.    Shorter term market
Explanation:-
Answer: Option C. -> Capital market

Question 4. The capital market in India is controlled by?
  1.    RBI
  2.    NABARD
  3.    SEBI
  4.    IRDA
Explanation:-
Answer: Option C. -> SEBI

Question 5. It is an instrument that entitles the holder to a proportionate equitable interest in the securities held by issuing firm or an entitlement to a pro rata share in a pledged revenue stream
  1.    Eurocommercial papers
  2.    Certificate of Participation
  3.    Loans
  4.    Certificates
Explanation:-
Answer: Option B. -> Certificate of Participation

Question 6. Are direct borrowings of deficit units from surplus units like banks
  1.    Loans
  2.    Leases
  3.    Mortgages
  4.    Line of credit
Explanation:-
Answer: Option A. -> Loans

Question 7. Have a fixed number of shares and are traded among investors on an exchange
  1.    Close-end mutual funds
  2.    Mutual fund shares
  3.    Premium
  4.    Growth funds
Explanation:-
Answer: Option A. -> Close-end mutual funds

Question 8. Invest both in shares of stock and debt instruments combining the features of both the growth funds and the income funds
  1.    Balanced funds
  2.    Growth funds
  3.    Income funds
  4.    Money Market funds
Explanation:-
Answer: Option A. -> Balanced funds

Question 9. These are investment funds that pool funds from numerous investors and invest in money market instruments offered by investment companies
  1.    Capital market mutual funds
  2.    Growth funds
  3.    Money market mutual funds
  4.    Balanced funds
Explanation:-
Answer: Option C. -> Money market mutual funds

Question 10. Invest in a bank of securities that make up some market index as S & P 500 index of stocks
  1.    Balanced funds
  2.    Sector funds
  3.    Index funds
  4.    Growth funds
Explanation:-
Answer: Option C. -> Index funds