📘 NISM Research Analyst Mock Test – Chapter 2

Multiple Choice Questions (MCQs)


1. Which of the following is NOT a function of the securities market?

a) Facilitating liquidity
b) Price discovery
c) Providing long-term loans directly to investors
d) Channelizing savings


Answer: c) Providing long-term loans directly to investors


2. The primary market deals with:

a) Fresh issue of securities
b) Buying and selling of existing securities
c) Commodity trading
d) Currency trading


Answer: a) Fresh issue of securities


3. A secondary market is also known as:

a) New issue market
b) Stock exchange
c) Over-the-counter market only
d) Debt restructuring market


Answer: b) Stock exchange


4. Who regulates the Indian securities market?

a) RBI
b) SEBI
c) IRDAI
d) Ministry of Finance


Answer: b) SEBI


5. Which of the following is a money market instrument?

a) Treasury Bills
b) Corporate Bonds
c) Preference Shares
d) Equity Shares


Answer: a) Treasury Bills


6. A company raises long-term funds through:

a) Call money market
b) Capital market
c) Treasury auction
d) Currency derivatives


Answer: b) Capital market


7. Which instrument represents ownership in a company?

a) Bonds
b) Commercial Paper
c) Equity Shares
d) Debentures


Answer: c) Equity Shares


8. What is the major role of stock exchanges?

a) Issue new shares
b) Provide trading platform for existing securities
c) Approve IPO documents
d) Prepare company balance sheets


Answer: b) Provide trading platform for existing securities


9. Which intermediary ensures the settlement of securities?

a) Registrar & Transfer Agent
b) Depository
c) Broker
d) Merchant Banker


Answer: b) Depository


10. The term “liquidity” refers to:

a) Ability to earn profits
b) Ability to convert assets into cash quickly
c) Risk-free investment
d) Market downturn


Answer: b) Ability to convert assets into cash quickly

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