R R Mehta College of Science and C L Parikh College of Commerce Palanpur

B. Com Sem VI
Multiple Choice Based Questions for Online University Exam

Kuldeep Mathur
Associate Professor

1. How many companies are included in the SENSEX?

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7. The Share price is decided by:
(a) Stock Exchange Management
(b) Companies
(c) Buyers and sellers of the particular stocks
(d) Central government
8. The term Bullish indicates:
(a) Positive price action
(b) Negative price action
(c) Neutral price action
(d) None of these.
9. What is the expansion of SENSEX?
(a) Sensitive Index of Bombay Stock Exchange
(b) Sensitive Index of National Stock Exchange
(c) Stock Exchange of Indian Index
(d) Indian Stock Report of Companies
10. Indian Stock Markets Movements are influenced by:
(a) Global political factors
(b) Domestic political factors
(c) Global and domestic economic factors
(d) All of the above.
11. The process of issuing share to the public is called as:
(a) Right issue
(b) Bonus issue
(c) Initial Public Offer
(d) Company issue
12. The Stock Market trading time in India (NSE and BSE) is:
(a) 9:00 AM to 5:30 PM
(b) 10:00 AM to 4:30 PM
(c) 9:45 AM to 3:00 PM
(d) 9:15 AM to 3:30 PM
13. The first computerised online stock exchange in India was
(a) NSE
(b) BSE
(c) MCX

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 (d) Commodity
14. A rise in “Sensex” means:
(a) A rise in prices of shares of all companies registered with the Bombay Stock
Exchange
(b) An overall rise in prices of shares of all companies registered with the National
Stock Exchange
(c) An overall rise in prices of shares of group of companies registered with the
Bombay Stock Exchange
(d) All of the above.
15. Debenture holders of a company are its:
(a) Owners
(b) Creditors
(c) Debtors
(d) Directors
16. SEBI was established in the year:
(a) 1992
(b) 1988
(c) 1990
(d) 1989
17. The regulatory body for the securities market in India is:
(a) RBI
(b) IRDA
(c) Stock exchanges
(d) SEBI
18. Bull and ____________ are speculators.
(a) Jobber
(b) Bear
(c) Broker
(d) Share holders
19. ________ are called non‐cleared securities.
(a) Group B share
(b) Group A share
(c) Group G shares
(d) None of these
20. Rigging activity is carried on by the ______speculators.
(a) Bull

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 (b) Jobber
(c) Bear
(d) Broker
21. Stock broker means a member of a________.
(a) SEBI
(b) RBI
(c) SBI
(d) Stock exchange
22. What is DEMAT?
(a) An account that is used to hold shares and securities in electronic format.
(b) Dematerialization of liquidity
(c) Nodal agency to keep a watch on the movements of shares.
(d) Decentralized Members of Abroad Transactions.
23. An offer of securities to the public for the first time by an utilized issuer is called:
(a) FPO
(b) IPO
(c) DPO
(d) None of these
24. The process of artificially increasing or decreasing the price is known as:
(a) Price bond
(b) Price rigging
(c) Cover system
(d) None of these
25. How many companies are included in the SENSEX of India?
(a) 30
(b) 50
(c) 111
(d) 25
26. Which of the following is responsible for the fluctuations in the SENSEX?
(a) Rain, drought, floods
(b) Monetary policy
(c) Political instability
(d) All of the above
27. What is FII?

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 (a) Financial Investors Institute
(b) Foreign Investors in India
(c) Fair Investment in Industries
(d) Foreign Institutional Investors
28. The role of Business English is that:
(a) We can get more knowledge about the new business by learning the language
of Business English.
(b) We get more clients from developed countries.
(c) Our turnover rises in few months.
(d) We can avail financial assistance from abroad banks.
29. Which of the following is not a business English feature?
(a) Conciseness
(b) Clearness
(c) Hypocrisy
(d) Politeness
30. Through what ways good English skills can help you succeed in business?
(a) It shows your willingness to go beyond basic business standards.
(b) It will help you to communicate better with your colleagues.
(c) It is important for delivering presentations and speeches.
(d) All of the above.
31. The importance of the English language in business communication:
(a) All of the below.
(b) Doing Business on the Internet
(c) Doing Business Worldwide
(d) It’s Unifying
32. The benefits of learning Business English is/are:
(a) Learn Specific Business English Skills
(b) Focus on global current news and trends in business.
(c) Understand world economy and business theory.
(d) All of the above.
33. What should an invitation to tender include?
(a) Form of contract, contract conditions and amendments.
(b) Yearly turnover of the firm.
(c) List of partners in the firm.

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 (d) Last six months bank transaction statement of the firm.
34. An invitation to tender (ITT) is:
(a) To develop rapport between the government and the firm.
(b) The initial step in competitive tendering.
(c) To encourage a Public Private Partnership.
(d) The initial step in helping specific firm for personal interests.
35. Main types of tenders is/are:
(a) Selective tender
(b) Open tender
(c) Negotiated tender.
(d) All of the above.
36. When all of a sudden the prices of shares come down very sharply and rapidly, it
is called?
(a) Bull unloading
(b) Bear hammering
(c) Nose Dive
(d) Plummet
38. Selling the stock even at a loss by the bulls is known as _____ or bull unloading.
(a) Bull liquidation
(b) Bear hammering
(c) Hedging
(d) Reverse Rapo Rate
39. Repo rate is used by monetary authorities to control _______.
(a) Deflation
(b) Corruption
(c) Inflation
(d) Money laundering
40. A sustained increase in the general level of prices for goods and services is known
as:
(a) Inflation
(b) Deflation
(c) Spurt
(d) Market fluctuations
41. Liquidity crisis leads company to declare:

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 (a) Bankruptcy
(b) Insolvency
(c) Defaulter
(d) Legal procedure
42. Buying or selling of future contracts on a recognized exchange is known as:
(a) Future market
(b) Futures trading
(c) Future contract
(d) Future selling
43. Which of the following cannot be predicted and foreseen?
(a) Rate of interest
(b) Liquidity crisis
(c) Opening bell
(d) Dividend
44. The first ULIP was launched in India in __________by the largest mutual fund
Unit Trust of India:
(a) 1971
(b) 1988
(c) 1951
(d) 2005
45. ________also means the number of stocks traded on a stock exchange on the
particular day/s and within the particular period of time.
(a) Turnover
(b) Turnout
(c) Turndown
(d) Turnaround
46. Which of the following are types of auctions?
(a) Absolute Auction
(b) Multi-Parcel Auction
(c) Reserve Auction
(d) All of the above.
47. _______ is usually a process of buying and selling goods or services by offering
them up for bid, taking bids, and then selling the item to the highest bidder or
buying the item from the lowest bidder.

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 (a) Memorandum
(b) Auction
(c) Seizure
(d) Extortion
48. ________a dividend of subscription rights to buy additional securities in a
company made to the company's existing security holders.
(a) Central shares
(b) Left issues
(c) Right investments
(d) Right shares
49. _________ is the limit below which a stock price cannot trade on a particular
trading day.
(a) Upper circuit
(b) Lower circuit
(c) Upper and lower circuits
(d) None of the above,
50. In financial economics, a ______refers to an acute shortage of liquidity:
(a) Liquidity crisis
(b) Financial slowdown
(c) Liquidity opportunity
(d) Monetary assistance

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