Test: Financial Market- Assertion & Reason Type Questions - Commerce MCQ

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Controlling insider trading and imposing penalties for such practices is a protective function of SEBI.

Reason (R): Registration of collective investment schemes and Mutual Funds is a development function of SEBI.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Treasury Bills are issued by Central Government.

Reason (R): Treasury Bills are one of the safest money market instruments.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Government of India decided to setup a separate regulatory body known as Securities and Exchange Board of India.

Reason (R): SEBI was set up to prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Sale and lease back technique is a type of lease agreement.

Reason (R): It enables the lessee to improve their liquidity.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.

Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Exchanges of debentures and shares are done industrial securities market.

Reason (R): Exchanges of shares and debentures are divided in two markets: primary market and secondary market.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Stock exchange provides safety to dealings and investment.

Reason (R): Transactions on the stock exchange are conducted only amongst its members with adequate transparency.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Accounts of shareholders are in electronic forms which is called D-mat.

Reason (R): Now, sale and purchase of shares are in electronic forms.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Stock exchange is an unorganised market.

Reason (R): Stock exchange makes complete information available to public in regard to prices and volume of transactions taking place every day.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Sensex is measured by sensory index.

Reason (R): Currently 150 companies are listed in sensex.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Stock exchange contributes to economic growth.

Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.

Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A): Capital market is the biggest source for growth of an economy.

Reason (R): Capital market provides long-term funds to organised and unorganised sectors.