1. In economic, IPO stands for _______ ?

Inclusive Property Offer

Initial Public Offering

Indented Performance Objective

Inventory Performance Output

Answer: Initial Public Offering

Explanation:

IPO" stands for "initial public offering." When the news media report that a company is "going public," this means that company is making an initial public offering. This means that the company is offering its shares for sale to the public for the first time.


2. In which year was the first Exchange-traded Index Derivative Contract traded on the Bombay Stock Exchange (BSE) ?

2000

1994

1991

2004

Answer: 2000

Explanation:

BSE created history on June 9, 2000 by launching the first Exchange-traded Index Derivative Contract in India i.e. futures on the capital market benchmark index - the BSE Sensex.


3. Which central agency is responsible for the regulation of the Stock Market in India ?

RERA

NABARD

IRDA

SEBI

Answer: SEBI

Explanation:

The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India.


4. Which theory is used to make long-run predictions about exchange rates in a flexible exchange rate system ?

Purchasing Power Parity Theory

Balance of Payment Theory

Interest Rate Approach

Portfolio Balance Approach

Answer: Purchasing Power Parity Theory

Explanation:

The Purchasing Power Parity (PPP) theory is used to make long-run predictions about exchange rates in a flexible exchange rate system.


5. A/an ______ stock is the stock of a large, well-established and financially sound company that has operated for many years ?

Cyclical

Defensive

Blue-chip

Income

Answer: Blue-chip

Explanation:

Blue chip stocks are popular stocks to buy because they represent stable companies that often pay attractive dividends. There is no official definition for a blue chip stock, but in general they are large, well-established and financially sound companies that have operated for many years.


6. ____ is a situation of very low rate of interest in the economy where every economic agent expects the interest rate to rise in future and consequently bond prices to fall, causing ?

Paradox of thrift

Parametric shift

Revenue deficit

Liquidity trap

Answer: Liquidity trap

Explanation:

Liquidity Trap is a situation of very low rate of interest in the economy where every economic agent expects the interest rate to rise in future and consequently bond prices to fall, causing capital loss. Liquidity Trap is a contradictory economic situation in which interest rates are very low and saving rates are high, Rendering economic policy ineffective.