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Basics of Financial Market Test 45
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Basics of Financial Market Test 45
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  • Question 1/5
    1 / -0
    Capital Market is to regulate long-term debt and equity shares. What is the further division of Capital Market?
    Solutions
    There are two types of capital markets- primary and secondary.

    The difference between the primary capital market and the secondary capital market is that in the primary market, investors buy securities directly from the company issuing them.

    while in the secondary market, investors trade securities among themselves, and the company with the security being traded does usually not participate in the transaction.
  • Question 2/5
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    Which of the following is not a Money Market Instrument?

    Solutions

    Explanation: The money market is the arena in which financial institutions make available to a broad range of borrowers and investors the opportunity to buy and sell various forms of short-term securities. There is no physical "money market." Instead it is an informal network of banks and traders linked by telephones, fax machines, and computers. Money markets exist both in the United States and abroad.
    The short-term debts and securities sold on the money markets—which are known as money market instruments—have maturities ranging from one day to one year and are extremely liquid. Treasury bills, federal agency notes, certificates of deposit (CDs), eurodollar deposits, commercial paper, bankers' acceptances, and repurchase agreements are examples of instruments. The suppliers of funds for money market instruments are institutions and individuals with a preference for the highest liquidity and the lowest risk.

  • Question 3/5
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    Future and Spot Market are components of which of the following categories of Capital Market?
    Solutions
    Financial Markets:
    1) Capital Market:
    (a) Securities Market
    i. Primary Market – For IPOs, Rights and Bonus Shares issue.
    ii. Secondary Market – For Stock Exchange Trading etc.
    A) Spot Market
    B) Futures Market
    (b) Other Forms of lending & borrowing
    2) Money Market
  • Question 4/5
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    Gilt-edged market means ___.
    Solutions
    The gilt-edged market is the market in government securities or the securities guaranteed (as to both principal and interest) by the government. The former includes securities of the Government of India and of the state governments; the latter are securities issued by Local authorities (like city corporations, municipalities, and port trusts) and autonomous government undertakings like development banks, state electricity boards, etc.
  • Question 5/5
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    Which is oldest stock exchange in India?
    Solutions

    The Bombay Stock Exchange (BSE) is the 11th largest stock exchange in the world by market capitalisation as on 31st December 2012.

    •  It is a stock exchange located on Dalal Street, Mumbai, Maharashtra.
    •  It was established in 1875.
    • It is the India's oldest Stock Exchange, one of Asia's oldest stock exchange and one of India's leading exchange group.
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