тЖР Back to Financial Markets Class 10
This Class 10 Board Paper on Financial Markets presents a curated set of multiple-choice questions (MCQs) that cover key concepts such as securities, stock exchanges, mutual funds, derivatives, and regulatory bodies like SEBI.
Financial Markets Class 10 Board Paper MCQ
1. This financial asset is usually a debt instrument sold by companies or the government to raise funds for short-term or long-term projects.
a. Bonds
b. Debenture
c. Equity
d. Derivatives
2. Assertion a. : Securities are financial instruments issued to raise funds.
Reason (R) : The primary function of the securities markets is to enable the flow of capital from those that have it to those that need it.
a. Both a. and (R) are true and (R) is the correct explanation of a..
b. Both a. and () are true, but R is not the correct explanation of a..
c. a. is true, but (R) is false.
d. a. is false, but (R) is true.
3. Book building is basically a process used in IPO for efficient _ .
Show Answer тЯ╢4. NSE introduced a nationwide, on-line, fully-automated trading system where a member can punch into the computer the quantities of a security and the price at which he would like to transact, and the transaction is executed as soon as a matching sale or buy order from a counter party is found. This trading system is referred as:
a. Source Based Trading System (SBTS)
b. Screen Bound Trading System (SBTS)
c. Screen Based Trading System (SBTS)
d. Screen Based Trade System (SBTS)
5. Mr. Iyer is seller and Mr. Raj is the buyer of this contract. The predetermined quantity of rice to be sold is 500 kg and the price at which the rice will be sold is Rs. 20 per kg. Hence, the price of contract is Rs. 10,000 (500 x 20), which derives its value from the underlying тАУ rice. The contract will be future date тАУ two months from now. This will happen when the rice will be delivered to Mr. RajтАЩs warehouse and Mr. Iyer will receive ┬е 10,000. Identify this contract.
Show Answer тЯ╢6. These funds invest primarily in equity shares of companies in a particular business sector or industry
a. Growth Fund
b. Diversified Fund
c. Sector Fund
d. Index Fund
7. Interest is an amount charged to the borrower for the privilege of using __.
Show Answer тЯ╢8. Its regulatory jurisdiction extends over corporates in the issuance of capital and transfer of securities in addition to all intermediaries and persons associated with securities market. Which regulator is refered to here?
a. Reserve Bank of India (RBD
b. Securities Exchange Board of India (SEBI)
c. Registrar of Companies
d. Department of Company Affair
9. A listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document.
a. Rights Issue
b. IPO
c. Private Placements
d. Further Issue (FPO)
What is a Bonus share ?
Show Answer тЯ╢10. National Commodity and Derivatives Exchange Limited (NCDEX) is a national-level, technology-driven online commodity exchange with an independent Board of Directors and Professional management. In the context of this statement, define the Commodity Exchange.
Show Answer тЯ╢11. Which of the following is not a profitability ratio ?
a. Gross Profit Ratio
b. Net Profit Ratio
c. Debt-Equity Ratio
d. Return on Capital Ratio
12. It is a platform where buyers and sellers come together to trade financial tools during specific hours of any business day while adhering to SEBIтАЩs well-defined guidelines. Name the organisation.
Show Answer тЯ╢13. Most companies are usually started privately by their promoterтАШ(s). However, the promotersтАЩ capital and the borrowings from banks and financial institutions may not be sufficient for setting up or running the business over a long term. So companies invite the public to contribute towards the equity and issue shares to individual investors. The main objective(s) of primary market is/are
a. To raise funds
b. Issuance of New Securities
c. Capital Appreciation
d. Both a. and b.
14. _______are High Risk Investments.
Show Answer тЯ╢15. Statement-1 : Depository facilitates securities between accounts on the instruction of the account holder.
Statement-2 : Depository also holds funds in account.
a. Both Statement-1 and Statement-2 are true.
b. Both Statement-1 and Statement-2 are false.
c. Statement-1 is false, but Statement-2 is true.
d. Statement-1 is true, but Statement-2 is false.
16. As the price of a security gets higher and higher, some investors may feel the price is too high for them to buy, or small investors may feel it is unaffordable. Splitting the stock brings the share price down to a more тАЬattractiveтАЭ level. Which corporate action is this ?
a. Dividend Payment
b. Buyback of share
c. Bonus share
d. Stock splits
17. ________of a company is a record showing source of funds and their application of creating/building assets.
a. Balance Sheet
b. Income Statement
c. Profit and Loss Account
d. Share Capital
18. The various products in which investments may be done are financial products viz. fixed deposits in bank, buying shares in stock market, investing in Mutual Funds, etc. and non-financial products viz. purchase of land, gold, silver, etc. The non-financial products are also known as :
a. Financial Assets
b. Current Assets
c. Real Assets
d. Both a. and c.
19. The companies that issue their shares are called issuers and the process of issuing shares to public is known as _.
Show Answer тЯ╢20. Trading at the exchange offers investors, Which of the following is NOT true?
a. The best prices prevailing at time in the market
b. Lack of any counter party risk
c. Access to investor grievance and redressal mechanism
d. To do trading in the unlisted securities.
21. Assertion a.: The Depository has prescribed minimum balance.
Reason (R) : Investors can have zero balance in their demat account.
a. Both a. and (R) are true and (R) is correct explanation of a..
b. Both a. and (R) are true and (R) is not correct explanation of a..
c. a. is true, but (R) is false.
d. a. is false, but (R) is true.
22. In case one of parties to the dispute is not satisfied with the complaint resolution process provided by the exchange then the concerned party may avail the provided by the exchange.
a. Clearing Corporation
b. Arbitration
c. SEBI
d. Court
23. After distributing dividends, a part of the profit is retained by the company for meeting fund requirements in future. The retained profits accumulated over the years are called :
a. General Profit
b. Capital Gain
c. Reserves and Surplus
d. Net Profit
24. What is the full form of NSE
Show Answer тЯ╢25. What are liquid funds?
Show Answer тЯ╢26. Write the full form of SEBI
a. State Exchange Bank of India.
b. Stock Exchange Board of India.
c. Securities Exchange Board of India.
d. Sensex Exchange Board of India
27. ____ is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc.
Show Answer тЯ╢28. IPO Stands for:
Show Answer тЯ╢29. NEAT stands for
Show Answer тЯ╢30. What is Equity Share
Show Answer тЯ╢31. The minimum number of days for which a bid should remain open during book building?
a. 1 day
b. 2 days
c. 3 days
d. 4 days
32. ____________derivatives market trade contracts for which the underlying asset is commodity.
Show Answer тЯ╢33. Define the term NAV.
Show Answer тЯ╢34. Write any two sources of funds shown in the balance sheet.
Show Answer тЯ╢35. Debt-Equity Ratio reflects _____________ to finance the business.
Show Answer тЯ╢36. What is meant by тАШReal rate of return?
Show Answer тЯ╢37. тАЬIts regulatory jurisdiction covers corporates in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market.тАЭ
a. IRDA
b. SEBI
c. RBI
d. PFRDA
38. Minimum number of days for which a bid remains open during book building.
a. Three days
b. Five days
c. Seven days
d. Nine days
39. тАЬCRISIL is a credit rating agency in IndiaтАЭ. Which of the following is not a credit rating agency in India :
a. CARE
b. ICRA
c. FITCH
d. RBI
40. Commodity derivatives market trade contracts for which the underlying asset is __.
a. Interest
b. Currency
c. Stock
d. Commodity
41. Expand the term тАШETFтАЩ.
Show Answer тЯ╢42. __ are specialised form of mutual funds that invest in extremely short-term fixed income instruments.
a. Liquid Funds
b. Public Provident Funds
c. Growth Funds
d. Debts Funds
43. тАЬThe market which deals in securities previously issuedтАЭ is called __.
a. Primary Market
b. Debt Market
c. Secondary Market
d. Commodity Market
44. How can we find Market Capitalisation of a company?
Show Answer тЯ╢45. The trading system of NSE is called :
a. BOLT
b. NEAT
c. ODIN
d. FTEC
46. A buyer of an option pays for the right to exercise his option. Identify term used for this.
Show Answer тЯ╢47. What is the formula of P/E Ratio ?
a. Market price of a share / Earning per share.
b. Net profit / No. of outstanding share.
c. Net profit after tax / Total capital employed.
d. Net profit after tax / Net worth.
48. Give two examples of financial assets.
Show Answer тЯ╢49. тАЬIt accompanies the application form of public issues.тАЭ
a. Income Statement
b. Annual Report
c. Prospectus
d. Financial Report
50. Owners of these kinds of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before the dividend can be paid in respect of equity shares. They also enjoy priority over the equity shareholders in payment of surplus.
a. Preference shares
b. Bonus share
c. Right share
d. Equity share
51. What do you understand by тАШDematerialisationтАЩ?
Show Answer тЯ╢52. Amit holds 400 shares of X Ltd. Company decides to implement a stock spilt of 4 for 1. How many shares Mr. Amit will hold how many shares after this corporate action?
a. 400
b. 1600
c. 100
d. 800
53. Financial performance of the company and certain key financial parameters like Earning Per Share (EPS), P/E ratio, current size of equity etc. for arriving at the estimated future price. This is known as .
a. Industry Analysis
b. Corporate Analysis
c. Financial Analysis
d. Firm Analysis
54. тАЬIt is often the first banking product people use, which offers low interest.тАЭ
a. Fixed Deposit Account
b. Recurring Deposit Account
c. Current Deposit Account
d. Saving Bank Account
55. What do you understand by тАШGlobal Depository ReceiptsтАЩ?
Show Answer тЯ╢56. A bond giving investor the option to convert the bond into equity at a fixed conversion price is called
a. Convertible Bond
b. Zero Coupon Bond
c. Treasury Bills
d. Commercial Paper
57. Hold the fund in account.
a. Bank
b. Depository
c. Demat
d. Cash
58. Mention two examples of тАШCorporate ActionsтАЩ.
Show Answer тЯ╢59. A part of the profit is retained by the company for meeting fund requirements in future.
a. Dividend
b. Interest
c. Reserves and Surplus
d. Revenue
Disclaimer: We have taken an effort to provide you with the accurate handout of тАЬFinancial Markets Class 10 Board Paper MCQтАЬ. If you feel that there is any error or mistake, please contact me at anuraganand2017@gmail.com. The above CBSE study material present on our websites is for education purpose, not our copyrights.
All the above content and Screenshot are taken from Introduction to Financial Markets Class 10 NCERT Textbook, CBSE Sample Paper, CBSE Old Sample Paper, CBSE Board Paper and CBSE Support Material which is present in CBSEACADEMIC website, NCERT websiteThis Textbook and Support Material are legally copyright by Central Board of Secondary Education. We are only providing a medium and helping the students to improve the performances in the examination.
Images and content shown above are the property of individual organizations and are used here for reference purposes only. For more information, refer to the official CBSE textbooks available at cbseacademic.nic.in