Question 1

------is the first exchange for small companies

Accepted Answer

OTCEI (Over The Counter Exchange of India) was established to provide small and medium-sized companies an avenue to access the capital markets for funding. It was designed to offer a more streamlined and less expensive process for these companies to go public compared to the larger exchanges.

Question 2

Selling of a security that an investor does not own is called

Accepted Answer

Short selling involves selling securities that the seller does not own at the time of the sale, typically borrowing them with the intention of buying them back later at a lower price to make a profit.

Question 3

RBI was established in

Accepted Answer

The Reserve Bank of India (RBI) was established on April 1, 1935, under the Reserve Bank of India Act, 1934.

Question 4

--------refers to a fixed number of units of the underlying asset that form part of a single F&O contract

Accepted Answer

Lot size refers to the fixed number of units of the underlying asset that are included in a single Futures & Options (F&O) contract. It specifies the minimum quantity of the asset that can be traded, which is standardized by the exchange.

Question 5

At present India have two depositories namely

Accepted Answer

India has two major depositories, the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL), which handle the dematerialization of securities in the country.

Quiz 2: Financial Terminology and Institutions in India

------is the first exchange for small companies

Selling of a security that an investor does not own is called

RBI was established in

--------refers to a fixed number of units of the underlying asset that form part of a single F&O contract

At present India have two depositories namely