Money and Banking (part – II)

Total Questions: 268

141. The Head Office of National Stock Exchange of India is located at : [M.P.P.C.S. (Pre) 1996]

Correct Answer: (a) Mumbai
Note:

National Stock Exchange of India was established in November, 1992 on the recommendation of Manohar J. Pherwani Committee . The head office of NSE of India is located at Mumbai.

142. The promoter of National Stock Exchange of India is : [U.P.P.C.S. (Pre) 2013]

Correct Answer: (d) All of the above
Note:

National Stock Exchange of India was set up in November, 1992 on the recommendation of Manohar J. Pherwani Committee. The Promoters of NSE of India were IDBI, SBI IFCI, LIC, GIC, IDFC etc. At present (as on 31,03.2024), promote and promoter group shareholding in NSE of India is zero, while public shareholding and non promoter-non public shareholding are at 56.20% and 43.89% respectively.

143. Consider the following statements : [U.P.P.C.S. (Pre) 2005]

1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE).

2. For calculating the Sensex, all the stocks are assigned proportional weightage.

3. New York Stock Exchange is the oldest stock exchange in the world.

Which of the statement/s given above is/are correct ?

Correct Answer: (a) 2 only
Note:

Sensex is calculated using a 'Market Capitalization-Weighted' methodology. As per this methodology, the level of index at any point of time reflects the total market value of 30 component stocks relative to a base period. For calculating the Sensex, all the stocks are assigned proportional weightage. The Amsterdam Stock Exchange (ASE), which lays claim of being the oldest continuing stock market, has embarked upon a series of initiatives to win back trading lost to London. What began in the 17th century as dealings in shares of the United East India Company in coffee house along Bam Square and grew into the world's third largest market by 1940's the ASE is now finding itself struggling to hold onto its fifteenth ranking worldwide.

The New York Stock Exchange traces its origin to 1792, when 24 New York city stockbrokers and merchants signed the Buttonwood Agreement. This agreement set in motion the NYSE's unwavering commitment to investors and issuers.

144. A rise in 'SENSEX' means : [U.P.S.C (Pre) 2000]

(a) a rise in prices of shares of all companies registered with Bombay Stock Exchange

(b) a rise in prices of shares of all companies registered with National Stock Exchange

(c)an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange

(d) a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange

Correct Answer: (c) an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange
Note:

The BSE SENSEX is a free-float market- weighted stock market index of 30 well- established and financially sound companies listed on the Bombay Stock Exchange. A rise in 'SENSEX' means an overall rise in prices of shares of this group of 30 companies.

145. 'SENSEX' is the popular Index of Bombay Stock Exchange (BSE) . It is measured on the basis of how many blue chip companies listed in BSE ? [U.P.P.C.S. (Pre) 2021]

Correct Answer: (b) 30
Note:

The BSE SENSEX is a free-float market- weighted stock market index of 30 well- established and financially sound companies listed on the Bombay Stock Exchange. A rise in 'SENSEX' means an overall rise in prices of shares of this group of 30 companies.

146. 'BSE' Sensex' is an index to measure ups and down in the share market. The number of companies covered under the index are : [U.P.P.C.S. (Mains) 2005]

Correct Answer: (a) 30
Note:

The BSE SENSEX is a free-float market- weighted stock market index of 30 well- established and financially sound companies listed on the Bombay Stock Exchange. A rise in 'SENSEX' means an overall rise in prices of shares of this group of 30 companies.

147. As on March 2014, no. of companies BSE Green Index includes was : [U.P.P.C.S. (Mains) 2014]

Correct Answer: (d) 25
Note:

As on March 2014, the total number of companies BSE Greenex Index included was 25. At present, the number of companies is the same, that is 25. The BSE Greenex is designed to measure the performance of the top 25 'green' companies in terms of greenhouse gas (GHG) emissions, market cap and liquidity.

148. How many companies are included in BSE - GREENEX ? [U.P.P.C.S. (Pre) (Re-exam)]

Correct Answer: (a) 25
Note:

As on March 2014, the total number of companies BSE Greenex Index included was 25. At present, the number of companies is the same, that is 25. The BSE Greenx is designed to measure the performance of the top 25 'green' companies in terms of greenhouse gas (GHG) emissions, market cap and liquidity.

149. Among the following major stock exchanged of India, the exchange which recorded highest turnover during the years 2000-01 is : [U.P.S.C (Pre) 2002]

Correct Answer: (d) National Stock Exchange
Note:

The stock exchanged which recorded highest turnover during the year 2000-01 was National Stock Exchange (NSE). It had turnover of 8.39 lakh crore in 2000-01. At present too, NSE has the highest turnover in India's share markets.

150. The volatility in the Indian share market is due to : [R.A.S./R.T.S (Pre) 2013]

(A) Inflow and outflow of foreign funds
(B) Fluctuations in foreign capital markets
(C) Changes in the Monetary Policy

Which of the above mentioned causes are correct ?

Correct Answer: (c) A, B and C
Note:

The main reasons for the volatility in Indian share market are as follows :

1. Inflow and outflow of foreign funds.

2. Fluctuations in foreign capital markets.

3. Changes in monetary policy.

4. Availability of liquidity in the market

5. Political situations

6. Economic outlook

7. Corporate performance etc.