Capital Market MCQ
What Is Capital Market MCQ
Capital market is referred to as a market where trading of financial securities like stocks, bonds, etc takes place between buyer and seller of those securities. The buyers and sellers of these markets are either individuals or institutions.
Following are some of the multiple choice questions on the capital market with answers that will help the students in developing their knowledge.
21 The first computerised online stock exchange in India was
A.NSE
B.OTCEI
C.BSE
D.MCX
ANSWER: a
22 Which of the following derivative is not traded on Indian Stock Market?
A. Index Options
B. Stock Futures
C. Index Futures
D. Forward Rate Agreements
ANSWER: d
23 Spot exchange rate is the rate of exchange between two currencies
A. for immediate delivery
B. for future delivery
C. for delivery at a particular spot in future
D. None of the above
ANSWER: a
24 Break-even of a Put option occurs when spot price is equal to
A. Strike price + Premium
B. Strike Price – Premium
C. Premium
D. None of the above
ANSWER: b
25 Before expiry date, the time value of a call option is
A. Strike Price – Spot Price
B. Spot Price – Strike Price
C. Market Premium – Intrinsic Value
D. Intrinsic Value
ANSWER: c
26 If Strike price is more than the spot price of the asset, the call option is known as
A. American Option
B. European Option
C. Out of Money Option
D. In the Money Option
ANSWER: c
27 Which of the following is not available in India?
A. Index Options
B. Index Futures
C. Commodity Options
D. Commodity Futures
ANSWER: c
28 Mr. X has to pay Rs 5,00,000 in three months time for the imports made by him. Correct hedging policy for him would be to
A. Buy a Rs Call Option
B. Sell a Rs Call Option
C. Buy a Rs Put Option
D. Sell a Rs Put Option
ANSWER: a
29 Which of the following is true for mutual funds in India?
A. Exit load is not allowed
B. Entry load is allowed
C. Entry load is not allowed
D. Exit load allowed is some cases
ANSWER: d
30 If the spot rate of $ in Mumbai is Rs. 45.50 and 1 month forward rate is Rs. 45.65, then which is correct for forward market?
A. That $ is at premium
B. That $ is at discount
C. Rupee is at premium
D. None of the above
ANSWER: a