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 6 of 15

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Q51.
How are dematerialized securities often referred to?

a.

Central Securities Depository

b.

Physical securities

c.

Intermediated securities

d.

Book-entry securities

Discuss
Answer: (c).Intermediated securities Explanation:Dematerialized securities are often referred to as intermediated securities.
Q52.
When did dematerialization of securities start for listed companies in the US and the European Union?

a.

1970s

b.

1980s

c.

1990s

d.

1960s

Discuss
Answer: (d).1960s Explanation:Dematerialization of securities started in the 1960s for listed companies in the US and then in the European Union.
Q53.
How are shares and securities held in India currently?

a.

Physical possession

b.

Through intermediaries

c.

In a Dematerialized account

d.

Via Central Securities Depository

Discuss
Answer: (c).In a Dematerialized account Explanation:In India, shares and securities are now held electronically in a Dematerialized account.
Q54.
What is one of the benefits of a demat account in terms of securities transfer?

a.

Delayed transfer of securities

b.

Immediate transfer of securities

c.

Transfer with stamp duty

d.

Transfer with odd lot problem

Discuss
Answer: (b).Immediate transfer of securities Explanation:One of the benefits of a demat account is the immediate transfer of securities.
Q55.
What risk associated with physical certificates is mostly eliminated by demat accounts?

a.

Market risk

b.

Credit risk

c.

Bad delivery, fake securities, and theft

d.

Interest rate risk

Discuss
Answer: (c).Bad delivery, fake securities, and theft Explanation:Demat accounts eliminate risks associated with physical certificates such as bad delivery, fake securities, delays, and thefts.
Q56.
Why is there no "odd lot" problem in demat accounts?

a.

Because odd lots are not allowed

b.

Because odd lots are automatically sold

c.

Because even one share can be sold

d.

Because odd lots are sold separately

Discuss
Answer: (c).Because even one share can be sold Explanation:Demat accounts eliminate the "odd lot" problem, as even one share can be sold.
Q57.
What is a benefit of recording a change in address with a Depository Participant (DP)?

a.

Reduced transaction cost

b.

Automatic credit into demat account

c.

Reduced paperwork

d.

Corresponding with each company separately

Discuss
Answer: (d).Corresponding with each company separately Explanation:Recording a change in address with a DP gets registered with all companies, eliminating the need to correspond with each of them separately.
Q58.
When did the National Stock Exchange (NSE) start trading equity?

a.

June 1994

b.

November 1994

c.

March 1995

d.

April 1996

Discuss
Answer: (b).November 1994 Explanation:NSE started trading equity in November 1994.
Q59.
What is the primary role of a stock exchange in promoting economic development?

a.

Providing ready market for securities

b.

Enabling book-building path and process

c.

Facilitating foreign funds

d.

Fostering economic development through structured capital formation

Discuss
Answer: (d).Fostering economic development through structured capital formation Explanation:The primary role of a stock exchange is fostering economic development through structured capital formation.
Q60.
In the secondary market, how are securities exchanged between investors?

a.

Directly issued by the company

b.

Sold by existing investors to other investors

c.

Bought from the primary market

d.

Transferred by the company

Discuss
Answer: (b).Sold by existing investors to other investors Explanation:In the secondary market, securities are sold by existing investors to other investors.
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