58-Capital Market Instruments

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Capital Market Instruments for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking and CAT / MBA entrance examinations of India

1. Which of the following is the regulator of the credit rating agencies in India?

[A] RBI
[B] SIDBI
[C] SBI
[D] SEBI

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2. Which of the following organisations issues the rules of global trade?

[A] World Bank
[B] Foreign Echange Dealers’ Association
[C] World Trade Organisation
[D] Directorate General of Foreign Trade

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3. What is cross-border exchange?

[A] Trading of foreign currency in India.
[B] Hawala transactions
[C] Unauthorised remittance of the Indian rupee.
[D] The trading of the Indian rupee in exchange for other currencies/ goods.

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4. Which of the following economic concepts is categorised on the basis of current account or capital account or both?

[A] Value of the foodgrains stock of a country.
[B] The balance of payments
[C] Gross National Product
[D] Gross National Income

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5. Which of the following cannot be called as a debt instrument as referred to in financial transactions?

[A] Bonds
[B] Stocks
[C] Commercial papers
[D] Loans

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6. Which of the following best describes the Securities and Exchange Board of India?

[A] SEBI is the regulator for the capital markets.
[B] SEBI protects the interest of investors.
[C] SEBI is for ethical practices.
[D] All of the above.

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7. For what kind of transactions, are demat accounts necessary ?

[A] For trading in shares of companies
[B] For having mobile banking facilities
[C] For taking retail loans from banks
[D] For non resident account

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8. Which of the following is not necessarily involved in an IPO process?

[A] Register of companies
[B] Underwriter
[C] Investment bank
[D] Registar of Issues

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9. What is ‘future trading’?

[A] a trade between any two stock exchanges
[B] an agreement between two parties to buy or sell an underlying asset in the future at a
[C] an agreement between stock exchanges that they will not trade the stocks of each other
[D] None of the above

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10. What is an Indian depository receipt?

[A] A deposit account with a public sector bank.
[B] A depository account with any of the depositories in India.
[C] An instrument in the form of depository receipt.
[D] An instrument in the form of deposit receipt issued by Indian depositories.

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