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.

31 Forward exchange rate is the rate of exchange between two currencies

A. prevailing today for future delivery

B. would prevail at a future date

C. prevailing today for immediate delivery

D. None of the above

ANSWER: a 

32 Which of the following is the benefit of Depositories?

A. Reduction in the share transfer time to the buyer

B. Reduced Risk of stolen, fake, forged shares

C. No Stamp duty on transfer of shares in dematerialized form

D. All of the above

ANSWER: d 

33 Which of the following is working as demutualized stock exchange since from beginning?

A.NSE

B.BSE

C.DSE

D.All of the above

ANSWER: a 

34 In primary markets, the property of shares which made it easy to sell newly issued security is considered as

1. increased liquidity
2. decreased liquidity
3. money flow
4. large funds

ANSWER: a 

35. The money market where debt and stocks are traded and maturity period is more than a year is classified as

1. shorter term markets
2. capital markets
3. counter markets
4. long-term markets

ANSWER: b 

36. The type of market in which securities with less than one year maturity are traded, is classified as

1. money market
2. capital market
3. transaction market
4. global market

ANSWER: a

37 In capital markets, the major suppliers of trading instruments are

1. government and corporations
2. liquid corporations
3. instrumental corporations
4. manufacturing corporations

ANSWER: a 

38: The markets in which transactions are done through computers and telephone without any specific location are classified as

1. past counter market
2. future counter market
3. over the counter markets
4. capital counter market

ANSWER: c 

39: The markets in which new securities are issued by the corporations to raise funds are called

1. primary markets
2. secondary markets
3. Gross markets
4. proceeds markets

Answer a 

40 The price of underlying asset is added into intrinsic value of option to calculate

1. forward price of option
2. exercise price of option
3. book value of option
4. spot price of option

Answer b