In the era of Globalization, investors invest money to earn profit not only in their own country but also in other countries as well. To increase the awareness of general people about the security market; Jagran Josh made this set of 10 questions based on the capital market in India. We hope that this set will also be useful for the students preparing for competitive examinations.
1. Who controls the capital market in India?
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 statements is true?
(A) SEBI was established in 1988
(B) The Harshad Mehta share scandal happened in 1992
(C) Unit Trust of India was established in 1954
(D) SEBI is not a constitutional body
Explanation: Unit Trust of India was established in 1964.
3. Which of the following reasons is not responsible for the ups and downs in the Sensex?
(B) Monetary policy
(C) Political instability
(D) None of the following
Explanation: None of the following because every factor given in the option is attributed for ups and downs in the SENSEX.
4. Which country's index is KOSPI ?
(B) South Korea
Explanation: South Korea
5. Which of the following index is not matched correctly?
(A) SET : Thailand
(B) JCI :Japan
(C) NASDAQ : America
(D) TSEC :Taiwan
Explanation: JCI is an index of Indonesia.
6. How many companies are included in the SENSEX of India?
Explanation: The index of the Bombay Stock Exchange counts the fluctuation in the share prices of 30 companies.
7. Which of the following is not a credit rating agency?
Explanation: NIKKEI is stock exchange of Japan.
8. Which of the following TERM does not belong to the stock exchange?
Explanation: The KPO's full form is Knowledge Process Outsourcing. There is no direct link to the stock market.
9. 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.
Explanation: Making a change in Cash Reserve Ratio is the function of the Reserve Bank of India.
10. Which of the following statements is true?
(A) Secondary market is the market in which new securities are bought & sold
(B) CIBIL is the credit rating agency of India
(C) A blue chip company is called that which has bad credit rating in the market.
(D) SP500, FTSE 100 and MIDDEX are all credit rating agencies
Explanation: CIBIL is India's credit rating agency which has its headquarter in Mumbai.