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 9 of 15

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Q81.
Which index is considered India's most widely tracked stock market benchmark index, formerly known as SENSEX?

a.

NIFTY

b.

BSE-PSU Index

c.

S&P BSE SENSEX

d.

BSE-500 Index

Discuss
Answer: (c).S&P BSE SENSEX Explanation:S&P BSE SENSEX is India's most widely tracked stock market benchmark index.
Q82.
When did SSE shift all its indices to the free-float methodology (except BSE-PSU index)?

a.

2001

b.

1994

c.

2006

d.

1999

Discuss
Answer: (a).2001 Explanation:SSE shifted all its indices to the free-float methodology (except BSE-PSU index) in 2001.
Q83.
Which two major stock exchanges in the US have the largest market capitalization globally?

a.

NYSE and LSE

b.

NASDAQ and HKEX

c.

NYSE and NASDAQ

d.

BSE and TSE

Discuss
Answer: (c).NYSE and NASDAQ Explanation:The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ) have the largest market capitalization globally.
Q84.
What distinguishes the NYSE in terms of listing requirements for companies?

a.

Lenient requirements for small companies

b.

Strict requirements for large and financially strong companies

c.

No specific listing requirements

d.

Random listing requirements

Discuss
Answer: (b).Strict requirements for large and financially strong companies Explanation:The NYSE follows stringent listing requirements allowing only large and financially strong companies to get listed.
Q85.
Who provides and maintains the link between investors and the market in the NYSE?

a.

Specialists

b.

Brokers

c.

Corporates

d.

Governments

Discuss
Answer: (b).Brokers Explanation:Brokers in the NYSE provide and maintain the link between investors and the market.
Q86.
What do technical factors in the financial market primarily indicate?

a.

Guaranteed market movements

b.

Bullish market movements

c.

Bearish market movements

d.

Likely market movements without guarantees

Discuss
Answer: (d).Likely market movements without guarantees Explanation:Technical factors in the financial market indicate likely movements, but they don't guarantee them.
Q87.
Which of the following is NOT a player in the Capital Market?

a.

Mutual Funds

b.

Provident Funds and Pension Funds

c.

Retail Investors

d.

Retail Stores

Discuss
Answer: (d).Retail Stores Explanation:Retail Stores are not considered players in the Capital Market.
Q88.
Which of the following is NOT a function of SEBI (Securities and Exchange Board of India)?

a.

Registration of Fls

b.

Prohibition of Insider Trading

c.

Regulation of Telecommunication Industry

d.

Conducting Research

Discuss
Answer: (c).Regulation of Telecommunication Industry Explanation:SEBI's functions include the regulation of securities market, registration of FIs, prohibition of insider trading, and conducting research, among others. Telecommunication industry regulation is not within its scope.
Q89.
What is one of the risks associated with Debt Funds that investors need to understand?

a.

High returns with low risk

b.

Guaranteed returns

c.

NAV never falls

d.

Fall in NAV during market fluctuations

Discuss
Answer: (d).Fall in NAV during market fluctuations Explanation:Debt Funds are not entirely risk-free, and a common risk is the fall in Net Asset Value (NAV) during market fluctuations.
Q90.
How does investing in a Debt Fund differ from investing in a fixed deposit or bond?

a.

Debt Funds offer higher returns

b.

Fixed deposits have higher market risk

c.

Debt Funds have a fixed rate of return

d.

Fixed deposits offer simplicity and security

Discuss
Answer: (d).Fixed deposits offer simplicity and security Explanation:Investing in a fixed deposit provides simplicity and security, whereas Debt Funds involve market risk and are different from fixed deposits.
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