Top 50+ Solved Financial Markets MCQ Questions Answer
Q. Which short-term (up to one year) instrument is issued by government as a means offinancing it’s cash requirements?
a. adrs
b. treasury bills
c. equity
d. gdrs
Q. The benchmark stock market index of India is --------------
a. s&p 500
b. nikkei 225
c. dow jones
d. the nse nifty 50
Q. Which of the following is TRUE about Primary Markets?
a. primary market is the place where public can buy and sell securities from oneanother.
b. primary markets refer to the mobilization of funds from the public by corporatesthrough the issue of shares / debentures.
c. primary markets are places where only short-term instruments are traded.
d. primary markets are markets where commodities are sol
Q. Money market mutual funds can invest in ------------.
a. treasury bills
b. certificate of deposits
c. commercial paper
d. all of the above
Q. The holders of which instrument are members of the company and have voting rights?
a. commercial paper
b. treasury bill
c. debenture
d. equity
Q. How can an investor acquire equity shares?
a. secondary market only
b. through the primary market or secondary market
c. money market
d. primary market only
Q. Which of the following is not true about ADR?
a. an adr is a u.s. dollar denominated form of equity ownership in a non-u.s. company.
b. adrs may be used in public or private markets inside or outside us.
c. adrs do not eliminate the currency risk associated with an investment in a nonu.s. company.
d. adr represents the foreign shares of the company held on deposit by a custodian bank in the company\s home country. ad
Q. --------------- is the process by which physical certificates of an investor are convertedto an equivalent number of securities in electronic form.
a. materialisation
b. rematerialisation
c. conversion
d. dematerializations
Q. Which of the following is not true of Demat account?
a. one is not restricted to having account with only one dp.
b. one does not need to keep any minimum balance of securities in a demat accountwith a dp.
c. one cannot open more than one account with the same dp.
d. one can dematerialise and hold investments such as debt instruments, mutualfund units, government securities etc. in a single demat account.
Q. Which of the following is not true about Exchange Traded Funds (ETF)?
a. an etf is like a bank deposit.
b. an etf represents a basket of stocks that reflect an index such as the nifty.
c. an etf\s price changes throughout the day, fluctuating with supply and demand.
d. by owning an etf, you get the diversification of an index fund plus the flexibilityof a stock.
Q. Buying and selling of shares can be done through a --------------
a. depository
b. bank
c. stock exchange
d. finance company
Q. In the balance sheet of a company, amounts due to the suppliers of goods and services brought on credit, will reflect under the head -----------------.
a. loans and advances
b. current liabilities and provisions
c. miscellaneous expenditure school of distance education financial markets page 4
d. contingent liabilities
Q. Equity shares have mostly ----------------- all other forms of investments in the longterm.
a. remained neutral when compared to
b. outperformed
c. underperformed
d. given negative returns when compared to
Q. Which of the following problems have been eliminated by Depositories?
a. reduction in the share transfer time to the buyer.
b. risk of stolen, fake, forged shares.
c. stamp duty on transfer of shares in dematerialized form.
d. all of the above
Q. Which is/are the ways by which companies can raise foreign currency resources?
a. american depository share
b. global depository receipts
c. euro issues
d. all of the above