NISM XV Markets & Instruments — Practice Questions
Practice questions on securities markets and instruments for NISM Series XV — equity, debt, derivatives, mutual funds and market structure, with explanations.
57 questions on Markets & Instruments in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- Equity & debt instruments
- Derivatives basics
- Primary vs secondary markets
- Market participants
Free sample questions
1. _________ may generate both capital appreciation and also recurring income.
- A. Bonds
- B. Gold
- C. Equities
- D. Both Bonds and Equities ✅
Answer: D — Both Bonds and Equities
Why: Equities (Stocks) can provide capital appreciation (if the stock price goes up) and recurring income in the form of dividends. Bonds provide recurring income through interest payments, and in some cases, capital appreciation if bond prices rise due to falling interest rates or favorable market conditions. So, both instruments have the potential to offer capital gains and income, depending on market behavior and investment strategy.
2. ______ regulates the money market segment of securities market and is also the manager of Indian Government's borrowing program.
- A. Ministry of Finance
- B. RBI ✅
- C. SEBI
- D. Commerce Ministry
Answer: B — RBI
Why: Reserve Bank of India (RBI) is the central bank of the country which has the responsibility of administering the monetary policy. It regulates the money markets and is the manager of Government's borrowing programs.
💡 RBI = money-market regulator AND manager of govt's borrowing programme.
3. Which concern provides for maintenance of ownership records in a book entry form?
- A. Depository ✅
- B. Stock Exchange
- C. Bank
- D. Clearing Corporation
Answer: A — Depository
Why: Depositories hold securities of investors in electronic form and maintains the ownership records.
💡 Depository = holds ownership in book-entry (demat). DP is the depository's AGENT.
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