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 5 of 15

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Q41.
As of May 2014, what is the total market capitalization commanded by the companies listed on BSE?

a.

USD 5350 Billion

b.

USD 1.51 Trillion

c.

USD 13.21 Lakh Crores

d.

USD 3.44 Billion

Discuss
Answer: (b).USD 1.51 Trillion Explanation:The companies listed on BSE command a total market capitalization of USD 1.51 Trillion as of May 2014.
Q42.
How many companies are listed on BSE as of May 2014?

a.

5000 companies

b.

5350 companies

c.

13.21 lakh companies

d.

1.44 lakh companies

Discuss
Answer: (b).5350 companies Explanation:As of May 2014, more than 5350 companies are listed on BSE, making it one of the world's top exchanges in terms of listed members.
Q43.
What characterizes the status of the debt market in India?

a.

Highly active with a large volume of corporate bonds traded

b.

Almost non-existent with a focus on Government bonds

c.

Dominated by primary dealers

d.

Primary auction market for corporate bonds

Discuss
Answer: (b).Almost non-existent with a focus on Government bonds Explanation:The debt market is almost non-existent in India, with a large volume of Government bonds traded.
Q44.
What type of funds primarily invest in the shares of well-established companies?

a.

Mid/Small-cap Funds

b.

Equity-oriented Funds

c.

Debt Funds

d.

Hybrid Funds

Discuss
Answer: (b).Equity-oriented Funds Explanation:Equity-oriented funds primarily invest in the shares of well-established companies.
Q45.
What characterizes Mid/Small-cap Funds in the context of mutual funds?

a.

Low risk and low return

b.

High risk and high return

c.

Focus on government securities

d.

Stable and predictable returns

Discuss
Answer: (b).High risk and high return Explanation:Mid/Small-cap Funds target companies with market capitalization lower than that of large-cap companies, making them high risk and high return oriented.
Q46.
When were mutual funds opened to the private sector in India?

a.

1987

b.

1992

c.

1995

d.

1988

Discuss
Answer: (b).1992 Explanation:Mutual funds were opened to the private sector in 1992.
Q47.
Who broke the monopoly of the Unit Trust of India (UTI) in the mutual fund business in 1987?

a.

Private sector companies

b.

Banks

c.

Securities and Exchange Board of India (SEBI)

d.

Government agencies

Discuss
Answer: (b).Banks Explanation:In 1987, banks were allowed to enter the mutual fund business, breaking the monopoly of the Unit Trust of India (UTI).
Q48.
What trading process was used in Indian markets before 1995?

a.

Screen-based trading

b.

Electronic settlement

c.

Open outcry

d.

Limit order book

Discuss
Answer: (c).Open outcry Explanation:Before 1995, markets in India used open outcry, a trading process in which traders shouted and hand signaled from within a pit.
Q49.
What major policy initiated by SEBI in 1993 led to the shift of all exchanges to screen-based trading?

a.

Capital Issues Control Act

b.

Insider Trading Act

c.

SEBI Act

d.

Automation of stock trading

Discuss
Answer: (d).Automation of stock trading Explanation:The shift to screen-based trading was motivated primarily by the need for greater transparency and initiated by SEBI in 1993.
Q50.
What does dematerialization refer to in the context of securities?

a.

Physical possession of securities

b.

Substitution of paper-form securities by book-entry securities

c.

Central Securities Depository

d.

Intermediated securities

Discuss
Answer: (b).Substitution of paper-form securities by book-entry securities Explanation:Dematerialization refers to the substitution of paper-form securities by book-entry securities.
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