About this quiz
20 questions covering every section of the note.
This Lok Sewa practice set has 20 multiple-choice questions (Subject: Banking and Finance · For: Kharidar, Nayab Subba, Section Officer · Level: Easy). Take the quiz above first; after that, use the study list below to revise every question with its correct answer and a short explanation.
Study list: all 20 questions with answers and explanations
The market for long-term funds is the:
- A) Money market
- B) Capital market ✔
- C) Foreign exchange market
- D) Commodity market
Why: The capital market deals in long-term funds, such as shares and bonds, used for investment.
Treasury bills are traded in the:
- A) Money market ✔
- B) Capital market
- C) Secondary share market
- D) Real estate market
Why: Treasury bills are short-term government debt (under one year), so they are traded in the money market.
New securities issued for the first time are sold in the:
- A) Primary market ✔
- B) Secondary market
- C) Black market
- D) Commodity market
Why: The primary market is where new shares or bonds are sold for the first time, such as an IPO.
Existing shares are bought and sold in the:
- A) Primary market
- B) Secondary market ✔
- C) Money market
- D) Insurance market
Why: The secondary market is where investors trade existing shares, as on NEPSE.
Nepal's only stock exchange is:
- A) NEPSE ✔
- B) SEBON
- C) CDSC
- D) NRB
Why: NEPSE (Nepal Stock Exchange) is Nepal's only stock exchange, based in Kathmandu.
NEPSE was formed from the Securities Exchange Centre in:
- A) 2033 BS
- B) 2050 BS ✔
- C) 2063 BS
- D) 2073 BS
Why: The Securities Exchange Centre was converted into NEPSE in 2050 BS (1993).
The regulator of Nepal's securities market is:
- A) NEPSE
- B) SEBON ✔
- C) NRB
- D) Ministry of Industry
Why: SEBON (Securities Board of Nepal) regulates the securities market, brokers and public share issues.
SEBON works under the:
- A) Securities Act 2063 ✔
- B) BAFIA 2073
- C) Company Act 2063
- D) NRB Act 2058
Why: SEBON works under the Securities Act, 2063.
Which institution keeps shares in demat form?
- A) CDS and Clearing Limited ✔
- B) NEPSE
- C) SEBON
- D) Nepal Bank Limited
Why: CDS and Clearing Limited (CDSC) keeps shares in electronic (demat) form and settles trades.
Mero Share is run by:
- A) CDSC ✔
- B) NEPSE
- C) SEBON
- D) NRB
Why: Mero Share, the online system for IPO applications and demat accounts, is run by CDSC.
A company's first sale of shares to the public is a(n):
- A) FPO
- B) IPO ✔
- C) Bonus issue
- D) Right issue
Why: An IPO (Initial Public Offering) is a company's first sale of shares to the public.
Shares offered only to existing shareholders are:
- A) Right shares ✔
- B) Bonus shares
- C) IPO shares
- D) Preference shares
Why: Right shares are offered only to existing shareholders, in proportion to the shares they hold, usually at a set price.
Free extra shares given to shareholders are:
- A) Bonus shares ✔
- B) Right shares
- C) Debentures
- D) Bonds
Why: Bonus shares are free extra shares given from the company's profits or reserves.
A holder of a debenture is the company's:
- A) Owner
- B) Creditor ✔
- C) Director
- D) Auditor
Why: A debenture is a loan to the company, so its holder is a creditor who gets fixed interest, not an owner.
Ownership with voting rights comes from:
- A) Ordinary shares ✔
- B) Debentures
- C) Bonds
- D) Treasury bills
Why: Ordinary (equity) shares give ownership and voting rights in the company.
Preference shares usually get:
- A) Fixed dividend before ordinary shareholders ✔
- B) No dividend
- C) Voting control
- D) Interest like loans
Why: Preference shareholders get a fixed dividend before ordinary shareholders, but usually have no voting rights.
A fund that pools money from many investors is a:
- A) Mutual fund ✔
- B) Debenture
- C) Demat account
- D) Treasury bill
Why: A mutual fund pools money from many investors and invests it in shares and bonds, managed by experts.
A market where prices keep rising is a:
- A) Bear market
- B) Bull market ✔
- C) Flat market
- D) Black market
Why: A bull market is when share prices keep rising and investors are optimistic.
A market where prices keep falling is a:
- A) Bull market
- B) Bear market ✔
- C) Primary market
- D) Money market
Why: A bear market is when share prices keep falling and investors are pessimistic.
Part of profit paid to shareholders is a:
- A) Dividend ✔
- B) Premium
- C) Interest
- D) Tax
Why: A dividend is the part of profit a company pays to its shareholders, in cash or as bonus shares.