πŸ“Š Financial Markets
Q. Which of the following has voting rights in a company?
  • (A) equity shareholders
  • (B) creditors
  • (C) debenture holders
  • (D) preference shareholders
πŸ’¬ Discuss
βœ… Correct Answer: (A) equity shareholders
πŸ“Š Financial Markets
Q. Which is/are the ways by which companies can raise foreign currency resources?
  • (A) american depository share
  • (B) global depository receipts
  • (C) euro issues
  • (D) all of the above
πŸ’¬ Discuss
βœ… Correct Answer: (D) all of the above
πŸ“Š Financial Markets
Q. Which of the following problems have been eliminated by Depositories?
  • (A) reduction in the share transfer time to the buyer.
  • (B) risk of stolen, fake, forged shares.
  • (C) stamp duty on transfer of shares in dematerialized form.
  • (D) all of the above
πŸ’¬ Discuss
βœ… Correct Answer: (D) all of the above
πŸ“Š Financial Markets
Q. Equity shares have mostly ----------------- all other forms of investments in the long term.
  • (A) remained neutral when compared to
  • (B) outperformed
  • (C) underperformed
  • (D) given negative returns when compared to
πŸ’¬ Discuss
βœ… Correct Answer: (C) underperformed
πŸ“Š Financial Markets
Q. In the balance sheet of a company, amounts due to the suppliers of goods and services brought on credit, will reflect under the head -----------------.
  • (A) loans and advances
  • (B) current liabilities and provisions
  • (C) miscellaneous expenditure school of distance education financial markets page 4
  • (D) contingent liabilities
πŸ’¬ Discuss
βœ… Correct Answer: (B) current liabilities and provisions
πŸ“Š Financial Markets
Q. Buying and selling of shares can be done through a --------------
  • (A) depository
  • (B) bank
  • (C) stock exchange
  • (D) finance company
πŸ’¬ Discuss
βœ… Correct Answer: (C) stock exchange
πŸ“Š Financial Markets
Q. Which of the following is not true about Exchange Traded Funds (ETF)?
  • (A) an etf is like a bank deposit.
  • (B) an etf represents a basket of stocks that reflect an index such as the nifty.
  • (C) an etf\s price changes throughout the day, fluctuating with supply and demand.
  • (D) by owning an etf, you get the diversification of an index fund plus the flexibilityof a stock.
πŸ’¬ Discuss
βœ… Correct Answer: (A) an etf is like a bank deposit.
πŸ“Š Financial Markets
Q. Which of the following is not true of Demat account?
  • (A) one is not restricted to having account with only one dp.
  • (B) one does not need to keep any minimum balance of securities in a demat accountwith a dp.
  • (C) one cannot open more than one account with the same dp.
  • (D) one can dematerialise and hold investments such as debt instruments, mutualfund units, government securities etc. in a single demat account.
πŸ’¬ Discuss
βœ… Correct Answer: (C) one cannot open more than one account with the same dp.
πŸ“Š Financial Markets
Q. --------------- is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form.
  • (A) materialisation
  • (B) rematerialisation
  • (C) conversion
  • (D) dematerializations
πŸ’¬ Discuss
βœ… Correct Answer: (D) dematerializations
πŸ“Š Financial Markets
Q. Which of the following is not true about ADR?
  • (A) an adr is a u.s. dollar denominated form of equity ownership in a non-u.s. company.
  • (B) adrs may be used in public or private markets inside or outside us.
  • (C) adrs do not eliminate the currency risk associated with an investment in a nonu.s. company.
  • (D) adr represents the foreign shares of the company held on deposit by a custodian bank in the company\s home country. ad
πŸ’¬ Discuss
βœ… Correct Answer: (B) adrs may be used in public or private markets inside or outside us.