Basic Stock Market Quiz Mock Test: Paper 3 - Making India Self Dependent

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Basic Stock Market Quiz Mock Test (Paper 3)

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Total number of questions: 30
Time allotted: 15 minutes
Pass Score: 45%
Certificate: Yes
Random questions: Yes
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1 / 30

1. What is the significance of the year 1991 in the history of the Indian stock market?

A) Launch of the Nifty 50 index

B) The first IPO of a major Indian company

C) Liberalization of the Indian economy

D) Introduction of online trading

2 / 30

2. Which major financial institution was responsible for setting up the National Stock Exchange (NSE) in India?

A) Punjab National Bank (PNB)

B) State Bank of India (SBI)

C) Reserve Bank of India (RBI)

D) Industrial Development Bank of India (IDBI)

3 / 30

3. What is the term for a measure of how much a stock's price has fluctuated over a given time period?

A) Volatility

B) Market capitalization

C) Dividend yield

D) Beta coefficient

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4. What is the role of a stock market index in investment analysis?

A) To track the performance of a group of stocks and provide a benchmark

B) To predict future stock prices

C) To determine the dividend yield of a stock

D) To analyze the debt-to-equity ratio of a company

5 / 30

5. What does the term "market capitalization" (market cap) of a company represent?

A) The total value of outstanding shares of the company's stock

B) The total revenue of the company

C) The total number of employees in the company

D) The total assets of the company

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6. What is the term for a financial instrument that gives the holder the right, but not the obligation, to buy or sell a specific stock at a predetermined price?

A) Mutual fund

B) Stock certificate

C) Option

D) Bond

7 / 30

7. What is the term for a type of investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities?

A) ETF (Exchange-Traded FunD.

B) Mutual fund

C) Hedge fund

D) Stock option

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8. What is the largest stock exchange in the world by market capitalization?

A) London Stock Exchange (LSE)

B) Nasdaq

C) Shanghai Stock Exchange (SSE)

D) New York Stock Exchange (NYSE)

9 / 30

9. What is the name for a type of order that becomes a market order when a specified price is reached or surpassed?

A) Market-on-close order

B) Trailing stop order

C) Stop order

D) Limit order

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10. What is the term for a measure of a company's financial health and profitability, calculated by dividing its net profit by the number of outstanding shares?

A) Earnings per share (EPS)

B) Dividend yield

C) Market capitalization

D) Price-to-earnings ratio (P/E ratio)

11 / 30

11. Which Indian stock exchange is known as the "Bombay Stock Exchange"?

A) BSE (Bombay Stock Exchange)

B) KSE (Kolkata Stock Exchange)

C) MSE (Madras Stock Exchange)

D) NSE (National Stock Exchange)

12 / 30

12. In which year was the National Stock Exchange (NSE) of India officially inaugurated and started trading?

A) 2000

B) 2010

C) 1992

D) 1980

13 / 30

13. In stock trading, what does "short selling" involve?

A) Investing in high-risk stocks

B) Selling borrowed shares with the hope of buying them back at a lower price

C) Trading stocks on weekends

D) Buying a stock with the expectation of long-term gains

14 / 30

14. Which Indian stock exchange introduced the concept of "Badla" trading, a carry-forward system that allowed investors to carry over their positions?

A) OTC Exchange of India

B) MCX (Multi Commodity Exchange)

C) NSE (National Stock Exchange)

D) BSE (Bombay Stock Exchange)

15 / 30

15. What is the primary purpose of a stock exchange?

A) To provide a platform for trading securities

B) To sell products directly to consumers

C) To regulate the fishing industry

D) To manufacture electronic devices

16 / 30

16. Who is known as the "Father of the Indian Stock Market" for his pioneering efforts in setting up the BSE?

A) Rakesh Jhunjhunwala

B) Dhirubhai Ambani

C) Jamsetji Tata

D) Premchand Roychand

17 / 30

17. Who was the first Indian woman to become the Chairperson of the Bombay Stock Exchange (BSE)?

A) Naina Lal Kidwai

B) Arundhati Bhattacharya

C) Renuka Ramnath

D) Chitra Ramkrishna

18 / 30

18. What is the term for the practice of buying a large number of shares of a stock with the expectation of making a quick profit and then selling them?

A) Long-term investing

B) Value investing

C) Day trading

D) Dividend investing

19 / 30

19. What is the primary goal of investing in stocks?

A) To make short-term profits

B) To preserve capital

C) To generate long-term wealth

D) To pay off debt

20 / 30

20. Which international stock market is known for its technology-focused companies such as Apple, Amazon, and Microsoft?

A) Tokyo Stock Exchange (TSE)

B) Frankfurt Stock Exchange (FWB.

C) Nasdaq

D) London Stock Exchange (LSE)

21 / 30

21. What is the term for the process of spreading investments across different sectors or industries to reduce risk?

A) Concentration

B) Arbitrage

C) Diversification

D) Speculation

22 / 30

22. What is the stock market term for a situation where there are more sellers than buyers, causing prices to fall?

A) Bid-ask spread

B) Dividend yield

C) Bear market

D) Bull market

23 / 30

23. What is the stock market term for a company's financial statement that shows revenues, expenses, and profits or losses over a specific period?

A) Dividend statement

B) Cash flow statement

C) Income statement

D) Balance sheet

24 / 30

24. What is the term for the process of buying additional shares of a stock at lower prices to reduce the average cost of investment?

A) Dollar-cost averaging

B) Stock splitting

C) Market timing

D) Risk management

25 / 30

25. In 1986, the BSE introduced an automated trading system that revolutionized stock trading in India. What was this system called?

A) NEAT (National Exchange for Automated Trading)

B) BOLT (BSE On-Line Trading)

C) SEBI (Securities and Exchange Board of India)

D) NIFTY (National Index for Trading Yield)

26 / 30

26. What is the role of a stock exchange specialist or market maker?

A) To organize stock exchange events

B) To facilitate trading by buying and selling securities on their own account

C) To provide legal advice to traders

D) To teach traditional Indian dance at stock exchange seminars

27 / 30

27. What event led to the temporary closure of the Indian stock markets for several days in 2001?

A) A nationwide strike by stockbrokers

B) A terrorist attack on the BSE building

C) A computer system malfunction

D) A major financial scandal

28 / 30

28. When was the Bombay Stock Exchange (BSE) established, making it one of the oldest stock exchanges in Asia?

A) 1875

B) 1956

C) 1947

D) 1901

29 / 30

29. What was the benchmark stock index of the Bombay Stock Exchange (BSE) before the introduction of the SENSEX?

A) BSE 200

B) BSE 30

C) BSE 100

D) BSE 500

30 / 30

30. In the context of stock market orders, what does "market-on-close" (MOC. mean?

A) An order for bulk purchases of stocks

B) An order to buy or sell at any price during market hours

C) An order executed at the end of the trading day at the closing price

D) An order to trade only on weekends

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