Indian Financial Market MCQ Part 1 - CSEET

1 Who controls the capital market in India?

(A) SEBI

(B) RBI

(C) IRDA

(D) NABARD

Answer A

Explanation: Capital market in India is an important part of the financial system. The Indian Securities and Exchange Board (SEBI) regulates the capital market in India.

2 Which of the following reasons is not responsible for the ups and downs in the Sensex?

(A) Rain

(B) Monetary policy

(C) Political instability

(D) None of the following

Answer D

Explanation: None of the following because every factor given are reasons for ups and downs in the SENSEX.

3 How many companies are included in the SENSEX – the index of BSE?

(A) 30

(B) 50

(C) 111

(D) 25

Answer A

4) When was SEBI constituted?

(a) April, 1988

(b) March, 1982

(c) July, 1992

(d) Dec. 1974

Ans. A

5. Which of the following statement is NOT correct about the SEBI?

(a) At present it is a non statutory body

(b) At present it is a statutory body

(c) It got statutory powers by an ordinance in 1992

(d) SEBI is managed by 6 members

Ans. a

9. Which of the following words does not belong to the stock exchange?

(a) NAV

(b) NSE

(c) IPO

(d) KPO

Answer d

10. Which of the following statements is correct?

(a) FTSE-100 is a stock exchange of London, which monitors European market activities

(b) Nikkei is related to Singapore Stock Exchange

(c) MIDDEX belongs to Japan

(d) BSE does not belong to SENSEX

Answer a

Explanation: FTSE-100 is a stock exchange of London, which monitors the activities of the European security market.

11 Which of the following is not function of SEBI?

(A) Protecting the interests of investors

(B) Registration of share brokers

(C) Change in the cash Reserve Ratio

(D) Allow Foreign Institutional Investors (FII) to invest in the securities market.

Answer D

Explanation: Making a change in Cash Reserve Ratio is the function of the Reserve Bank of India.