Quiz on Fundamentals of Trading in Stocks and Currencies

What is the primary objective of the Indian Financial System?

• To promote foreign investments

• To control inflation

• To facilitate the exchange of funds

• To regulate the stock market

Which of the following is NOT a component of the Money Market?

• Certificates of Deposit

• Treasury Bills

• Commercial Papers

• Corporate Bonds

What does IPO stand for in the context of the primary market?

• International Public Offering

• Interim Public Offering

• Initial Private Offering

• Initial Public Offering

Which of the following is a feature of the Secondary Market?

• Securities are traded after initial offering

• It is a market for short-term funds

• Only government securities are traded

• New issues are sold

What is the role of SEBI?

• To regulate the securities market

• To manage foreign exchange

• To provide loans to businesses

• To issue currency

Which of the following is a type of derivative?

• Option

• Bond

• Mutual Fund

• Stock

What is the primary function of the Reserve Bank of India?

• To issue shares

• To regulate the banking sector

• To provide loans to individuals

• To manage foreign investments

Which market is known for trading short-term funds?

• Forex Market

• Derivatives Market

• Money Market

• Capital Market

What does the term 'liquidity' refer to in financial markets?

• The ability to convert assets into cash quickly

• The amount of money in circulation

• The level of interest rates

• The total value of investments

Which of the following is a method of issuing new shares?

• Private Placement

• All of the above

• Public Issue

• Rights Issue