Capital Markets Practice Questions

In this section of Capital Markets Practice Questions, we will learn many questions and concepts from the topics like Capital Markets In India, Capital Markets Of The World and The Insurance Industry In India. Let us begin.

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Capital Markets Practice Questions

Capital Markets In India

Q1: What is an Indian depository receipt?     [B O B 2008]

A) A deposit account with a public sector bank.

B) It is a depository account with any of the depositories in India.

C) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.

D) It is an instrument in the form of deposit receipt issued by Indian depositories.

E) None of the above is correct.

Q2: Capital market regulator is:              [B O B 2008]

A) R B I                       B) I R D A                   C) N S E                D) B S E             E) S E B I

Q3: many times, we read about future trading in the newspapers. What is ‘future trading’?

I. It is nothing but a trade between any two stock exchanges, wherein it is decided to purchase the stocks of each other on a fixed price throughout the year.

II. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price.

III. Future trading is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for a given period of time.      [B O B 2008]

Select the correct answer using the codes given below:

A) Only I                    B) Only I I             C) Just option I I I              D) I I and I I I                 E) None of these

Q4: Which of the following is the regulator of the credit rating agencies in India?         [B O B 2008]

A) R B I                    B) The S B I               C) S I D B I             D) The S E B I           E) None of these

Find Your Answer Here

Q1: A), Q2: E), Q3: B), Q4: D)

Capital Markets Of The World

Q1: Which of the following organisations provides a guarantee to the exporters?

A) Exin Bank                    B) Export Credit Guarantee Corporation  (E C G C)          C) Director General Foreign Trade               D) Reserve Bank of India       E) Registrar of Companies

Q2: Which of the following organisations issues the rules of global trade? [Allahabad Bank 2011]

A) World Bank                B) World Trade Organisation    C) Foreign Echange Dealers’ Association              D) Directorate General of Foreign Trade                E) None of the above

Q3: What is cross-border exchange?     [Allahabad Bank 2011]

A) Trading of foreign currency in India.

B) The trading of the Indian rupee in exchange for other currencies/ goods.

C) Hawala transactions in Indian rupee.

D) Unauthorised remittance of the Indian rupee.

E) None of the above.

Q4: As per recent reports, many countries are planning to introduce ‘Tobin Tax’, the idea of which was given by a nobel prize winner economist James Tobin in 1978. Tobin Tax, if implemented, will be levied on which of the following?        [S B I 2010]

A) On the interest income of corporates earned through major investments.

B) All cash transactions.

C) Services availed specifically bu an elite group of people.

D) Foreign exchange transactions.

E) None of the above.

Q5: Which of the following economic concepts is ‘categorised on the basis of current account or capital account or both?                [R B I 2011]

A) The balance of payments                                  B) Value of the foodgrains stock of a country.

C) Gross National Product (G N P)              D) Gross National Income (G N I)

E) The total collection of direct taxes in the year

Find Your Answers Here

Q1: B), Q2: B), Q3: B), Q4: A), Q5: A)

Insurance Industry In India

Q1: Which of the following cannot be called as a debt instrument as referred to in financial transactions?      [Indian Overseas Bank 2009]

A) Certificate of deposit                        B) Bonds                C) Stocks                 D) Commercial papers               E) Loans

Q2: In one of his species, Pranab Mukherjee said that the government had no plans to dilute the roles of market regulators. This means, the role of which of the following will not be diluted?                    [Syndicate Bank 2010]

A) The Life Insurance Corporation of India (L I C)

B) Confederation of Indian Industry (C I I)

C) Federation of Chambers of Commerce and Industry (F I C C I)

D) Bureau of Indian Standards

E) Securities and Exchange Board of India (S E B I)

Q3: What is the full form of ‘U L I P’, the term which was in the news recently?       [Syndicate Bank 2010]

A) Universal Life and Investment Plan.

B) Unit Loan and Insurance Plan.

C) Universal Loan and Investment Plan.

D) Uniformly Loaded Investment Plan.

E) Unit Linked Insurance Plan.

Q4: Which of the following best dscribes the Securities and Exchange Board of India?

A) S E B I is the regulator for the capital markets.

B) S E B I protects the interest of investors.

C) S E B I is for ethical practices.

D) All of the above.

E) None of the above.

Find Your Answers Here

Q1: E), Q2: E), Q3: E), Q4: D)

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