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Financial Markets Interview Questions & Answers - Learning Mode

Financial Markets Interview Questions & Answers - Learning Mode

Financial market is an organizes institutional structure or mechanism for creating and exchanging financial assets. A financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds,and commodities include precious metals or agricultural products. A financial market is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives.

Try Financial Markets Interview Questions & Answers - Exam Mode

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Financial Markets Interview Questions & Answers - Learning Mode
Try Financial Markets Interview Questions & Answers - Exam Mode
Question: What is the advantage of online trading on a Stock Exchange?

Answer: The biggest advantage of online trading is that they charge considerably lower brokerage for stock exchanging. The first benefit of online stock trading is cost. The second benefit of online stock trading is that you have full control. The third benefit of online stock trading is immediacy.
Question: What are the functions of Financial Market?

Answer: Intermediary functions
Transfer of resources
Enhancing income
Productive usage
Capital formation
Price determination
Price determination Source:
Question: What is Demat Account?

Answer: A Dematerialised account is opened by the investor while registering with an investment broker (or sub-broker). The Dematerialised account is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a account for the purpose of transacting shares. Source:
Question: Expand SEBI and state its meaning?

Answer: The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It is the designated regulatory body for the finance and investment markets in India. The board plays a vital role in maintaining stable and efficient financial and investment markets by creating and enforcing effective regulation in India's financial marketplace.
Question: What are Money Funds?

Answer: Pooled short-maturity, high-quality investments that buy money market securities on behalf of retail or institutional investors. Source:
Question: What is the Certificate of Deposit?

Answer: Time deposit, commonly offered to consumers by banks, thrift institutions, and credit unions.
Question: Give the relevant terms in Stock Exchange?

Answer: a) NSEI (National Stock Exchange of India)
b)NASDAQ (National Association of Securities Dealers Automated Quotations
c)Dow Jones Industrial Average
e)Spot delivery
f)Forward delivery
Question: State the trading procedure on a Stock Exchange?

Answer: a) Selection of a broker
b) Opening Demat Account
c) Placing the order
d) Executing the Order
e) Settlement
Question: Name the approved Stock Exchanges in India?

Answer: Ahmedabad Stock Exchange
Bangalore Stock Exchange
Bhubaneswar Stock Exchange
Bombay Stock Exchange
Calcutta Stock Exchange
Cochin Stock Exchange
Coimbatore Stock Exchange
Delhi Stock Exchange
Guwahati Stock Exchange
Hyderabad Stock Exchange

Question: What are Treasury Bills?

Answer: Short-term debt obligations of a national government that are issued to mature in three to twelve months. Source:
Question: What are the functions of SEBI?

Answer: 1) To protect the interests of investors through proper education and guidance as regards their investment in securities. For this, SEBI has made rules and regulation to be followed by the financial intermediaries such as brokers, issuing companies, etc.
2) To regulate and control the business on stock exchanges and other security markets.
3) To make registration and to regulate the functioning of intermediaries such as stock
brokers, sub-brokers, share transfer agents, merchant banker Source:
Question: Who is a Depository Participant?

Answer: A Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the sub section 1A of Section 12 of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after o Source:
Question: What are the Components of Financial Market?

Answer: Based on market levels-
a)Primary market
b)Secondary market
Based on security types-
a)Money market
b)Capital market
c)Derivative markets Source:
Question: State the difference between the components of Capital Market?

Answer: A primary market is a marketplace where investors and traders can buy a new issue of a security. For example, company ABC hires five underwriting firms to determine the financial details of its initial public offering (IPO).
The secondary market involves buying and selling securities between other investors, while the primary market involves investors buying the securities from the issuing companies. Investors and traders engage in market activity through different exchanges, such as the New Source:
Question: State the types Financial Markets?

Answer: Stock markets
Bond markets
Commodity markets
Money markets
Derivatives markets
Derivatives markets Source:
Question: Define Financial Markets?

Answer: A Financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural products.
Question: State the functions of Stock Exchange?

Answer: Marketability of Securities
Price Determination & Continuity
Mobilizing Surplus Savings
Barometer of the Economy
Mobility of Capital
Profit Sharing & Resource Allocation
Question: State the objectives of SEBI?

Answer: a) Development of Securities market
b) Protection of Interest of Investors
c) Regulation of Capital market Source:
Question: State the Money Market Instruments?

Answer: Certificate of deposit
Treasury bills
Money funds
Commercial paper
Question: What is a Commercial Paper?

Answer: Short term promissory notes issued by company at discount to face value and redeemed at face value. Source:

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Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
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