Capital Market One Mark Online Test

Capital Market One Mark Online Test (12th Standard Commerce)

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Capital market do not provide

A.Short term Funds B.Debenture Funds C.Equity Funds D.Long term Funds

When the NSEI was established

A.1990 B.1992 C.1998 D.1997

Primary market is a Market where securities are traded in the

A.First Time B.Second Time C.Three Time D.Several Times

Participants in the Capital Market includes

A.Individuals B.Corporate C.Financial Institutions D.All of the above

The _______ was set up by a premier financial institution to allow the trading of securities across the electronic counters throughout the country.

A.OTCEI B.Factoring C.Mutual Funds D.Venture Funds Institutions

Capital market is defined in the lesson as a market for borrowing and lending of

A.short-term funds required by the Government B.long-term capital funds required by business enterprises C.foreign currencies required by importers D.near money required by commercial banks

Who defined capital market as "a complex of institutions investment and practices with established links between the demand for and supply of different types of capital gains"?

A.Crowther B.Arun K. Datta C.Reserve Bank of India D.SEBI

The primary market is also called the

A.Old Issue Market B.Gilt-Edged Market C.New Issue Market D.Over-the-Counter Market

When an existing company offers additional securities first to its existing shareholders on a pre-emptive basis, it is called

A.Public issue B.Rights issue C.Private placement D.Factoring

Q10

Selling securities privately to a small group of investors is known as

A.Private placement B.Public issue C.Rights issue D.Venture capital

Q11

Match the following:
A. Public issue - 1. Old securities traded between investors
B. Rights issue - 2. Securities sold to a small group of investors
C. Private placement - 3. Securities sold to the general public
D. Secondary market - 4. Securities offered first to existing shareholders

A.A-3, B-4, C-2, D-1 B.A-4, B-3, C-1, D-2 C.A-3, B-2, C-4, D-1 D.A-2, B-4, C-3, D-1

Q12

The secondary market covers

A.development banks and commercial banks only B.stock exchange and over-the-counter market C.rights issue and private placement D.commodity market and foreign exchange market

Q13

Which of the following statements about the capital market are correct?
1. Its dealings are done through securities like shares and debentures, so it is called the securities market.
2. The price of securities is fixed by the Government.
3. Its participants include individuals, corporates, Government and banks.
4. It is confined to certain specific locations only.

A.1 and 2 only B.1 and 3 only C.2 and 4 only D.1, 3 and 4 only

Q14

In the evolution of the Indian capital market, the period between 1947 and 1973 marked

A.the emergence of SEBI as a regulator B.the development of infrastructure for the capital market C.the introduction of credit rating D.the setting up of NSDL

Q15

During 1980 to 1992, which emerged as a powerful instrument of resource mobilization in the primary market?

A.Treasury bill B.Debenture C.Commercial bill D.Certificate of deposit

Q16

Which body emerged as an effective regulator of the primary and secondary markets and protects small investors?

A.SHCIL B.OTCEI C.SEBI D.NSDL

Q17

Assertion (A): The stock exchange enables companies to raise permanent capital.
Reason (R): Investors can sell their securities on the stock exchange whenever they wish, while the permanent capital with the company remains unaffected.

A.Both A and R are true and R is the correct explanation of A B.Both A and R are true but R is not the correct explanation of A C.A is true but R is false D.A is false but R is true

Q18

According to the lesson, the liberalised Foreign Direct Investment (FDI) brings into the country foreign capital and also

A.foreign technology B.foreign currency notes C.foreign tax benefits D.foreign stock exchanges

Q19

Venture capital financing is a form of

A.debt financing for old projects B.equity financing for new and innovative project ideas C.short-term financing through treasury bills D.financing against account receivables

Q20

An arrangement whereby a financial institution provides financial accommodation on the basis of assignment or sale of account receivables is called

A.Mutual fund B.Factoring C.Private placement D.Rights issue

Q21

Canbank Factors Limited, a factoring institution operating in India, is a subsidiary of

A.State Bank of India B.Canara Bank C.IDBI D.LIC

Q22

Financial institutions that channel the savings of small investors into productive investments and give them a diversified portfolio are called

A.Factoring institutions B.Mutual funds C.Venture fund institutions D.Depositories

Q23

The National Securities Depositories Limited (NSDL) was set up in the year

A.1992 B.1996 C.1990 D.1998

Q24

Pick the odd one out. The scripless trading system of the National Clearance and Depository System (NCDS) comprises:

A.National Trade Comparison and Reporting System B.National Clearing System C.National Depository System D.National Credit Rating System

Q25

Which institution aims at serving as a central securities depository for transactions on stock exchanges and administers clearing functions at a national level?

A.OTCEI B.SHCIL C.NSEI D.SIDBI

Q26

The foreign exchange market, the largest and most liquid market in the world, has an average traded value of more than

A.$1 trillion per day B.$5 trillion per day C.$5 billion per day D.$50 trillion per year

Q27

Which of the following is a soft commodity?

A.Gold B.Oil C.Coffee D.Iron

Q28

The Gilt-Edged Market is the market for

A.new issues of private companies B.Government and semi-Government securities C.hard and soft commodities D.futures and options

Q29

Financial instruments such as futures contracts and options, whose value is derived from an underlying asset, are traded in the

A.Commodity market B.Derivatives market C.Gilt-edged market D.Primary market

Q30

The prevailing market price of a security and its relative yield guide people to channel their funds into a particular company, ensuring effective use of funds in the public interest. Which function of the capital market is this?

A.Ready and Continuous Market B.Proper Channelization of Funds C.Reliable Guide to Performance D.Easy Liquidity

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About this Capital Market test

This free online practice test covers Capital Market from the 12th Standard Commerce (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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