IFM Class 10 Unit Two Securities MCQ | Introduction to Financial Market Important MCQ
This article will provide you with the IFM Class 10 Unit Two Securities MCQ. Introduction to Financial Market: Important MCQs can help you score more marks in your exams.
IFM Class 10 Unit Two Securities MCQ
Unit 2 – Securities | Class 10 IFM Important MCQs
- What is meant by a security?
a) A financial instrument representing ownership or debt
b) A savings account
c) A fixed deposit
d) A currency note
Answer: a) A financial instrument representing ownership or debt - Which of the following is an example of a security?
a) Shares
b) Bonds
c) Debentures
d) All of the above
Answer: d) All of the above - The market where securities are bought and sold is called:
a) Commodity Market
b) Securities Market
c) Foreign Exchange Market
d) Money Market
Answer: b) Securities Market - Which of the following is NOT a function of the securities market?
a) Mobilization of funds
b) Providing liquidity
c) Issuing currency notes
d) Price discovery
Answer: c) Issuing currency notes - Who regulates the securities market in India?
a) RBI
b) SEBI
c) IRDAI
d) NABARD
Answer: b) SEBI - The full form of SEBI is:
a) Securities Exchange Bureau of India
b) Securities and Exchange Board of India
c) Stock Exchange Bank of India
d) None of these
Answer: b) Securities and Exchange Board of India - SEBI was established in the year:
a) 1991
b) 1988
c) 1992
d) 1995
Answer: b) 1988 - Which of the following is a function of SEBI?
a) Regulating the stock exchanges
b) Protecting investor interests
c) Promoting fair trade practices
d) All of the above
Answer: d) All of the above - Who among the following are market participants?
a) Investors
b) Brokers
c) Depositories
d) All of these
Answer: d) All of these - The main objective of the securities market is to:
a) Provide short-term credit
b) Facilitate transfer of funds from savers to investors
c) Print new money
d) Control inflation
Answer: b) Facilitate transfer of funds from savers to investors - Which of the following is NOT a type of security?
a) Equity share
b) Debenture
c) Fixed Deposit Receipt
d) Preference share
Answer: c) Fixed Deposit Receipt - What does the term ‘equity’ represent?
a) Ownership in a company
b) Debt obligation
c) Fixed return instrument
d) None of these
Answer: a) Ownership in a company - Debt instruments represent:
a) Ownership of the company
b) Borrowed funds of the company
c) Preference shares
d) Savings of investors
Answer: b) Borrowed funds of the company - Which institution is known as the watchdog of the securities market?
a) NSE
b) BSE
c) SEBI
d) RBI
Answer: c) SEBI - The securities market has how many main segments?
a) One
b) Two
c) Three
d) Four
Answer: b) Two (Primary and Secondary Market) - What is the main function of the primary market?
a) Trading of existing securities
b) Issuance of new securities
c) Trading of derivatives
d) Redemption of bonds
Answer: b) Issuance of new securities - Which of the following is an example of a regulatory body?
a) NSE
b) BSE
c) SEBI
d) NSDL
Answer: c) SEBI - Market intermediaries act as:
a) Facilitators between investors and the market
b) Issuers of money
c) Government agencies
d) None of these
Answer: a) Facilitators between investors and the market - Which of the following is NOT a market participant?
a) Brokers
b) Depositories
c) RBI
d) Investors
Answer: c) RBI - Which of these statements about SEBI is true?
a) It protects investors from unfair practices
b) It regulates mutual funds
c) It ensures transparency in the market
d) All of these
Answer: d) All of these - The role of SEBI in the securities market is mainly to:
a) Regulate and develop the market
b) Issue currency
c) Fix interest rates
d) Manage government bonds only
Answer: a) Regulate and develop the market - The securities market helps in:
a) Wealth creation
b) Mobilizing savings
c) Providing liquidity
d) All of these
Answer: d) All of these - Which of the following is NOT regulated by SEBI?
a) Mutual funds
b) Stock exchanges
c) Commodity exchanges
d) Credit rating agencies
Answer: c) Commodity exchanges - What does SEBI ensure for investors?
a) Fixed returns
b) Fair and transparent trading environment
c) Free trading accounts
d) Guaranteed profits
Answer: b) Fair and transparent trading environment - Which activity is part of the securities market?
a) Buying and selling shares
b) Buying foreign currency
c) Issuing credit cards
d) Accepting bank deposits
Answer: a) Buying and selling shares - The securities market enables investors to:
a) Convert investments into cash easily
b) Avoid paying taxes
c) Earn guaranteed profits
d) Get free shares
Answer: a) Convert investments into cash easily - Who are intermediaries in the securities market?
a) Brokers
b) Sub-brokers
c) Depositories
d) All of these
Answer: d) All of these - The term ‘SEBI Representative’ refers to:
a) Investor
b) Market regulator’s official
c) Broker
d) Depository staff
Answer: b) Market regulator’s official - The securities market is important because:
a) It promotes savings and investment
b) It facilitates economic growth
c) It provides a platform for fund mobilization
d) All of the above
Answer: d) All of the above - Who among the following monitors insider trading?
a) SEBI
b) RBI
c) IRDAI
d) Finance Ministry
Answer: a) SEBI
