Chapter Exam

Chapter 4 COMMERCE : Stock Exchanges & SEBI — Online MCQ Test

Q: Which of the following bodies is the regulator of the Indian stock market?

Answer: B. SEBI — The Securities and Exchange Board of India (SEBI) is the statutory regulatory body established to protect investors and regulate the securities market.

COMMERCE · CLASS 12 INTER II YEAR · Andhra State Board

Practice Chapter 4 COMMERCE : Stock Exchanges & SEBI with a free chapter-wise online MCQ test for Andhra State Board CLASS 12 INTER II YEAR COMMERCE. This chapter covers: This chapter details stock exchange functions. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 4 COMMERCE : Stock Exchanges & SEBI — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 12 INTER II YEAR COMMERCE — Chapter 4 COMMERCE : Stock Exchanges & SEBI, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the primary function of a Stock Exchange in the Indian financial market?

A. Providing a platform for buying and selling securities ✓
B. Directly lending money to industrial houses
C. Formulating monetary policy for the country
D. Issuing new currency notes

Answer: A. Providing a platform for buying and selling securities
A stock exchange provides a continuous market for the purchase and sale of existing securities, ensuring liquidity and price discovery.

Which of the following bodies is the regulator of the Indian stock market?

A. RBI
B. SEBI ✓
C. BSE
D. NSDL

Answer: B. SEBI
The Securities and Exchange Board of India (SEBI) is the statutory regulatory body established to protect investors and regulate the securities market.

Which of these is a major objective of SEBI in the Indian securities market?

A. Promoting insider trading
B. Preventing fraudulent and unfair trade practices ✓
C. Fixing share prices for all companies
D. Managing the national budget

Answer: B. Preventing fraudulent and unfair trade practices
Protecting the interests of investors and regulating the securities market to prevent unfair practices is the primary objective of SEBI.

Compare the Primary Market and Secondary Market: Which statement is accurate?

A. Primary market deals with new securities; secondary market with existing ones ✓
B. Primary market is for individuals; secondary is for institutions only
C. Secondary market transactions involve the issuing company directly
D. Primary market offers higher liquidity than the secondary market

Answer: A. Primary market deals with new securities; secondary market with existing ones
The primary market is for the issuance of new securities (IPO), while the secondary market is for trading existing ones.

Which of the following is the most accurate description of 'Dematerialization'?

A. The conversion of physical share certificates into electronic records ✓
B. The removal of a company from the stock exchange list
C. The process of declaring a company bankrupt
D. The mandatory issuance of shares to the promoters

Answer: A. The conversion of physical share certificates into electronic records
Dematerialization (Demat) is the process where physical share certificates are converted into digital form to facilitate easier and safer electronic trading.