Indian Capital Market MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Indian Capital Market, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Indian Capital Market MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Indian Capital Market mcq questions that explore various aspects of Indian Capital Market problems. Each MCQ is crafted to challenge your understanding of Indian Capital Market principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Indian Capital Market MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Indian Capital Market. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Indian Capital Market knowledge to the test? Let's get started with our carefully curated MCQs!

Indian Capital Market MCQs | Page 14 of 15

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Q131.
How is the financial market classified based on the maturity point of financial claims?

a.

Money Market and Capital Market

b.

Debt Market and Equity Market

c.

Cash Markets and Future Markets

d.

Exchange Traded Market and Over-the-counter market

Discuss
Answer: (a).Money Market and Capital Market Explanation:Financial markets are classified based on the maturity point of financial claims into Money Market (short-term) and Capital Market (long-term).
Q132.
What is the principal security representing ownership in a corporation?

a.

Bond

b.

Derivative

c.

Stock

d.

Preference Share

Discuss
Answer: (c).Stock Explanation:Stock (equity share) is one of the principal securities representing ownership in a corporation and signifies a claim on the corporation's assets and earnings.
Q133.
How is the value of equity share considered in various manners?

a.

Nominal Value, Market Value, and Face Value

b.

Market Value, Nominal Value, and Intrinsic Value

c.

Face Value, Book Value, and Market Value

d.

Par Value, Book Value, and Liquidating Value

Discuss
Answer: (d).Par Value, Book Value, and Liquidating Value Explanation:The value of equity share is considered in various manners, including Par Value, Book Value, and Liquidating Value.
Q134.
What does SEBI (Securities and Exchange Board of India) regulate in the Indian financial system?

a.

Real estate transactions

b.

Insurance companies

c.

Indian Capital market

d.

Agricultural commodities market

Discuss
Answer: (c).Indian Capital market Explanation:SEBI controls and regulates the Indian Capital market, ensuring fair and transparent practices.
Q135.
How are capital markets classified based on their functions?

a.

Long-term and Short-term markets

b.

Primary and Secondary markets

c.

Cash and Derivatives markets

d.

Equity and Debt markets

Discuss
Answer: (b).Primary and Secondary markets Explanation:Capital markets are classified into primary markets (new securities issuance) and secondary markets (trading existing securities).
Q136.
What does dematerialization in the context of securities refer to?

a.

Converting securities into physical certificates

b.

Substituting paper-form securities with book-entry securities

c.

Merging multiple securities into one

d.

Issuing securities to the public

Discuss
Answer: (b).Substituting paper-form securities with book-entry securities Explanation:Dematerialization involves substituting paper-form securities with book-entry securities.
Q137.
Which of the following is not a role of a stock exchange?

a.

Promoting Public Finance

b.

Providing Ready Market for purchase and sale of financial assets

c.

Enforcing corporate tax regulations

d.

Facilitating Foreign Funds

Discuss
Answer: (c).Enforcing corporate tax regulations Explanation:Stock exchanges facilitate various roles, but enforcing corporate tax regulations is not one of them.
Q138.
When was the Bombay Stock Exchange (BSE) established?

a.

1957

b.

1986

c.

1875

d.

1991

Discuss
Answer: (c).1875 Explanation:The Bombay Stock Exchange (BSE) Ltd. was established in 1875.
Q139.
What does a stock exchange provide by enabling capital mobility?

a.

Enhanced government regulation

b.

Access to international funds

c.

Restricted trading hours

d.

Fixed stock prices

Discuss
Answer: (b).Access to international funds Explanation:Enabling capital mobility allows access to international funds through the stock exchange.
Q140.
Who among the following is not considered a main player in the Capital Market?

a.

Corporates

b.

Retail Investors

c.

Foreign Exchange Dealers (FFI)

d.

Provident Funds and Pension Funds

Discuss
Answer: (c).Foreign Exchange Dealers (FFI) Explanation:While Financial Institutions (FFIs) are part of the main players, Foreign Exchange Dealers are not typically categorized in the Capital Market.
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