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The National Stock Exchange (NSE) is one of the largest and most important stock markets in India. It was started in 1992 and has played a big role in making the Indian financial market better. The NSE gives people a place to buy and sell different financial things, like stocks, bonds, and derivatives. It helps companies get money by letting them list their shares for the public to trade.
Understanding the NSE is key for anyone interested in finance and investing. To help you learn more about this important place, we have made an NSE Quiz. This quiz has multiple-choice questions that cover important facts and ideas related to the NSE. Whether you are a student, a new investor, or just curious about the stock market, this quiz is a fun way to test what you know and learn something new!
The quiz includes GK Questions on NSE that will test your general knowledge about the exchange. Take the NSE Quiz to see how much you know about this crucial part of the Indian financial system!
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GK Questions on NSE and Quiz with Answers
Ques: What does NSE stand for?
A) National Stock Exchange
B) New Stock Exchange
C) National Securities Exchange
D) None of the above
Ans: A) National Stock Exchange
Explanation: NSE is the acronym for National Stock Exchange, which is one of the leading stock exchanges in India.
Ques: When was NSE established?
A) 1992
B) 1990
C) 1995
D) 1988
Ans: A) 1992
Explanation: The National Stock Exchange was established in 1992 to provide a modern, fully automated screen-based trading system.
Ques: What is the primary index of NSE called?
A) Sensex
B) Nifty 50
C) NSE 100
D) BSE 30
Ans: B) Nifty 50
Explanation: The primary index of NSE is called Nifty 50, which consists of 50 diversified stocks.
Ques: Who regulates the NSE?
A) SEBI
B) RBI
C) Government of India
D) IRDA
Ans: A) SEBI
Explanation: The Securities and Exchange Board of India (SEBI) regulates the NSE.
Also Check – GK Questions on Sensex with Answers
Ques: Which of the following is a key feature of NSE?
A) Physical trading
B) Screen-based trading
C) Floor trading
D) Telephone-based trading
Ans: B) Screen-based trading
Explanation: NSE introduced a modern, fully automated screen-based electronic trading system.
Ques: Which city is the headquarters of NSE located in?
A) Delhi
B) Mumbai
C) Kolkata
D) Bangalore
Ans: B) Mumbai
Explanation: NSE is headquartered in Mumbai, the financial capital of India.
Ques: What is the full form of NIFTY?
A) National Index Fifty
B) National and Financial Index
C) National Fifty
D) None of the above
Ans: A) National Index Fifty
Explanation: NIFTY stands for National Index Fifty, representing the top 50 companies listed on NSE.
Ques: Who is eligible to trade on NSE?
A) Only individual investors
B) Only institutional investors
C) Both individual and institutional investors
D) Only foreign investors
Ans: C) Both individual and institutional investors
Explanation: Both individual and institutional investors can trade on NSE.
Ques: What is a stock ticker symbol?
A) A short code used to represent a stock
B) The full name of a stock
C) A number assigned to a stock
D) A type of bond
Ans: A) A short code used to represent a stock
Explanation: A stock ticker symbol is a unique series of letters assigned to a security for trading purposes.
Ques: Which sector has the highest representation in Nifty 50?
A) Information Technology
B) Financial Services
C) Pharmaceuticals
D) Energy
Ans: B) Financial Services
Explanation: Financial services have the highest representation in the Nifty 50 index.
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Ques: What is the role of a depository in the NSE?
A) To provide banking services
B) To hold securities in electronic form
C) To issue physical certificates
D) To manage trading floors
Ans: B) To hold securities in electronic form
Explanation: A depository holds securities like shares, debentures, bonds, and mutual funds in electronic form.
Ques: Which of the following is an example of a derivative instrument traded on NSE?
A) Shares
B) Bonds
C) Futures and Options
D) Mutual Funds
Ans: C) Futures and Options
Explanation: Futures and options are derivative instruments traded on NSE.
Ques: What does IPO stand for?
A) Initial Private Offering
B) Initial Public Offering
C) Initial Purchase Offer
D) Internal Public Offering
Ans: B) Initial Public Offering
Explanation: IPO stands for Initial Public Offering, which is the process by which a company offers shares to the public for the first time.
Ques: Which committee was responsible for the establishment of NSE?
A) J.R.D. Tata Committee
B) Narasimham Committee
C) Malhotra Committee
D) Godbole Committee
Ans: B) Narasimham Committee
Explanation: The Narasimham Committee was responsible for the establishment of NSE as part of financial sector reforms in India.
Also Read – GK Questions and Answers on Nifty 50
Ques: What is the circuit breaker mechanism in stock exchanges?
A) A method to stop trading for a period
B) A tool to measure market capitalization
C) A type of stock market analysis
D) A system to track foreign investments
Ans: A) A method to stop trading for a period
Explanation: The circuit breaker mechanism is used to halt trading on stock exchanges to curb panic selling.
Ques: What is a Demat account?
A) A bank account for trading
B) An account for holding shares in electronic form
C) A type of loan account
D) A mutual fund investment account
Ans: B) An account for holding shares in electronic form
Explanation: A Demat account is used to hold shares and securities in electronic form.
Ques: Who appoints the chairman of NSE?
A) SEBI
B) RBI
C) Government of India
D) Board of Directors of NSE
Ans: D) Board of Directors of NSE
Explanation: The chairman of NSE is appointed by the Board of Directors of NSE.
Ques: Which year did NSE start its operations?
A) 1994
B) 1992
C) 1995
D) 1996
Ans: A) 1994
Explanation: NSE started its operations in 1994, two years after its establishment.
Ques: What is the role of a broker in NSE?
A) To lend money to investors
B) To facilitate buying and selling of securities
C) To provide banking services
D) To manage company accounts
Ans: B) To facilitate buying and selling of securities
Explanation: Brokers act as intermediaries between investors and the stock exchange, facilitating the trading of securities.
Ques: Which of the following is NOT a segment in NSE?
A) Equity
B) Derivatives
C) Commodities
D) Insurance
Ans: D) Insurance
Explanation: NSE operates segments such as equity, derivatives, and commodities, but not insurance.
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Ques: What is a blue-chip stock?
A) A low-priced stock
B) A stock with a high dividend yield
C) A stock from a well-established and financially sound company
D) A stock with a high price-earnings ratio
Ans: C) A stock from a well-established and financially sound company
Explanation: Blue-chip stocks are shares of large, well-established, and financially sound companies with a history of reliable performance.
Ques: What is a stock exchange?
A) A place where bonds are traded
B) A place where commodities are traded
C) A market for buying and selling shares
D) A bank for storing shares
Ans: C) A market for buying and selling shares
Explanation: A stock exchange is a market where securities such as stocks and bonds are bought and sold.
Ques: Which entity operates the clearing and settlement system for NSE?
A) SEBI
B) NSDL
C) NCL
D) RBI
Ans: C) NCL
Explanation: The NSE Clearing Limited (NCL) operates the clearing and settlement system for NSE.
Ques: What is the full form of NSDL?
A) National Securities Depository Limited
B) National Stock Depository Limited
C) National Share Depository Limited
D) National System Depository Limited
Ans: A) National Securities Depository Limited
Explanation: NSDL stands for National Securities Depository Limited, which provides depository services in India.
Ques: Which index is known as the barometer of the Indian stock market?
A) BSE 30
B) Nifty 50
C) NSE 100
D) Sensex
Ans: D) Sensex
Explanation: Sensex, comprising 30 stocks from the Bombay Stock Exchange (BSE), is considered the barometer of the Indian stock market.
Ques: What is market capitalization?
A) The total value of a company’s outstanding shares
B) The number of shares a company has
C) The profit earned by a company
D) The total debt of a company
Ans: A) The total value of a company’s outstanding shares
Explanation: Market capitalization is calculated by multiplying the current share price by the total number of outstanding shares.
Ques: What is the primary purpose of an IPO?
A) To distribute dividends to shareholders
B) To allow a company to raise capital by selling shares to the public
C) To merge with another company
D) To buy back shares from the market
Ans: B) To allow a company to raise capital by selling shares to the public
Explanation: An IPO allows a company to raise capital from public investors by selling its shares for the first time.
Ques: Which index tracks the performance of mid-cap companies in NSE?
A) Nifty 50
B) Nifty Midcap 100
C) Nifty Smallcap 50
D) Nifty Largecap 50
Ans: B) Nifty Midcap 100
Explanation: The Nifty Midcap 100 index tracks the performance of mid-cap companies listed on NSE.
Ques: What is an exchange-traded fund (ETF)?
A) A type of mutual fund traded on stock exchanges
B) A bond issued by companies
C) A stock issued by the government
D) A commodity traded on exchanges
Ans: A) A type of mutual fund traded on stock exchanges
Explanation: An ETF is a type of mutual fund that is traded on stock exchanges, similar to stocks.
Ques: What is a limit order in stock trading?
A) An order to buy or sell a stock at a specific price or better
B) An order to buy or sell a stock at the current market price
C) An order to buy or sell a stock immediately
D) An order to cancel a previous trade
Ans: A) An order to buy or sell a stock at a specific price or better
Explanation: A limit order specifies the maximum price at which a stock can be bought or the minimum price at which it can be sold.
Ques: Which of the following represents the volatility index of NSE?
A) Nifty 50
B) India VIX
C) Nifty Next 50
D) Nifty 500
Ans: B) India VIX
Explanation: India VIX is the volatility index of NSE, indicating the expected market volatility.
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Ques: What is a bear market?
A) A market condition where prices are rising
B) A market condition where prices are falling
C) A market with high trading volumes
D) A market with low volatility
Ans: B) A market condition where prices are falling
Explanation: A bear market is characterized by falling prices and pessimistic investor sentiment.
Ques: Which committee recommended the creation of SEBI?
A) Narasimham Committee
B) Malhotra Committee
C) Dandekar Committee
D) Godbole Committee
Ans: A) Narasimham Committee
Explanation: The Narasimham Committee recommended the creation of SEBI to regulate the securities market in India.
Ques: What does the term ‘liquidity’ refer to in stock trading?
A) The ability to buy or sell assets quickly
B) The profit earned from trading
C) The number of shares a company has
D) The total market capitalization
Ans: A) The ability to buy or sell assets quickly
Explanation: Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price.
Ques: Which of the following is NOT a participant in the stock market?
A) Retail investors
B) Mutual funds
C) Banks
D) Real estate agents
Ans: D) Real estate agents
Explanation: Real estate agents are not participants in the stock market, whereas retail investors, mutual funds, and banks are.
Ques: What is the minimum trading unit on NSE?
A) 1 share
B) 10 shares
C) 100 shares
D) 1000 shares
Ans: A) 1 share
Explanation: The minimum trading unit on NSE is 1 share, allowing investors to buy or sell even a single share.
Ques: Which of the following is a primary market activity?
A) Buying shares in an IPO
B) Trading shares in the secondary market
C) Selling shares on the stock exchange
D) Short-selling shares
Ans: A) Buying shares in an IPO
Explanation: Buying shares in an IPO is a primary market activity, whereas trading shares on the stock exchange occurs in the secondary market.
Ques: What is a market order?
A) An order to buy or sell at a specified price
B) An order to buy or sell immediately at the best available price
C) An order to cancel a trade
D) An order to hold shares
Ans: B) An order to buy or sell immediately at the best available price
Explanation: A market order is executed immediately at the current market price.
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Ques: Which regulatory body oversees the mutual fund industry in India?
A) SEBI
B) RBI
C) IRDA
D) PFRDA
Ans: A) SEBI
Explanation: SEBI oversees and regulates the mutual fund industry in India.
Ques: What is the settlement cycle for equities on NSE?
A) T+1
B) T+2
C) T+3
D) T+4
Ans: B) T+2
Explanation: The settlement cycle for equities on NSE is T+2, meaning transactions are settled two business days after the trade date.
Ques: What does the term ‘bull market’ refer to?
A) A market condition where prices are rising
B) A market condition where prices are falling
C) A market with low trading volumes
D) A market with high volatility
Ans: A) A market condition where prices are rising
Explanation: A bull market is characterized by rising prices and optimistic investor sentiment.
Ques: Which entity is responsible for maintaining the electronic form of securities in India?
A) SEBI
B) NSDL
C) NCL
D) RBI
Ans: B) NSDL
Explanation: NSDL (National Securities Depository Limited) is responsible for maintaining securities in electronic form.
Ques: What is a bond?
A) A debt instrument issued by companies or governments
B) A type of stock
C) A mutual fund
D) A stock option
Ans: A) A debt instrument issued by companies or governments
Explanation: A bond is a debt instrument where the issuer owes the bondholders a debt and is obliged to pay interest and repay the principal at a later date.
Ques: Which index tracks the performance of small-cap companies in NSE?
A) Nifty 50
B) Nifty Midcap 100
C) Nifty Smallcap 100
D) Nifty Largecap 100
Ans: C) Nifty Smallcap 100
Explanation: The Nifty Smallcap 100 index tracks the performance of small-cap companies listed on NSE.
Ques: What is a stock split?
A) Issuance of additional shares to existing shareholders
B) Reduction in the number of shares
C) Splitting the company into two
D) Merging with another company
Ans: A) Issuance of additional shares to existing shareholders
Explanation: A stock split increases the number of shares in circulation by issuing additional shares to existing shareholders.
Ques: What is an index fund?
A) A fund that replicates the performance of a specific index
B) A fund that invests in bonds
C) A fund that invests in real estate
D) A fund that trades commodities
Ans: A) A fund that replicates the performance of a specific index
Explanation: An index fund aims to replicate the performance of a specific market index, such as Nifty 50 or Sensex.
Ques: Which of the following is a characteristic of equity shares?
A) Fixed dividend payments
B) Ownership in the company
C) Fixed maturity date
D) Higher priority in case of liquidation
Ans: B) Ownership in the company
Explanation: Equity shares represent ownership in a company and entitle shareholders to a share of the company’s profits.
Ques: What is short selling in stock trading?
A) Buying shares at a low price and selling at a high price
B) Selling shares that are not currently owned, hoping to buy them back at a lower price
C) Holding shares for a long period
D) Buying shares at the current market price
Ans: B) Selling shares that are not currently owned, hoping to buy them back at a lower price
Explanation: Short selling involves selling shares that the seller does not currently own, with the intention of buying them back at a lower price to make a profit.
Ques: Which of the following represents the top 100 companies listed on NSE?
A) Nifty 50
B) Nifty 100
C) Nifty Next 50
D) Nifty Smallcap 100
Ans: B) Nifty 100
Explanation: Nifty 100 represents the top 100 companies listed on NSE.
Ques: What is the primary purpose of a stock exchange?
A) To provide a platform for trading securities
B) To issue bonds
C) To offer banking services
D) To regulate insurance policies
Ans: A) To provide a platform for trading securities
Explanation: The primary purpose of a stock exchange is to provide a regulated platform for buying and selling securities, such as stocks and bonds.
NSE Quiz FAQs
What is the NSE Quiz?
The NSE Quiz is an online quiz organized by the National Stock Exchange (NSE) to test knowledge about the stock market, finance, and investing. It is designed for students and anyone interested in learning more about these topics.
Who can participate in the NSE Quiz?
Anyone can participate in the NSE Quiz, including students, teachers, and anyone interested in finance. There may be specific categories or age groups, so it's good to check the rules before entering.
How do I register for the NSE Quiz?
To register for the NSE Quiz, you usually need to visit the official NSE website. There, you can find a registration link or form to fill out your details. Make sure to follow the instructions provided.
Is there a fee to enter the NSE Quiz?
Most of the time, the NSE Quiz is free to enter. However, it's best to check the official announcement or website for any updates regarding fees or registration costs.
What are the prizes for the NSE Quiz winners?
Winners of the NSE Quiz often receive prizes such as certificates, cash rewards, or gifts related to finance and investing. The specific prizes can vary each year, so be sure to check the details when you register.
