Question : Which of the following is not a function of a stock exchange?
Option 1: Facilitating trading of securities
Option 2: Ensuring fair and transparent transactions
Option 3: Regulating the banking sector
Option 4: Providing liquidity to investors
Correct Answer: Regulating the banking sector
Solution : The correct answer is (c) Regulating the banking sector.
Regulating the banking sector is not a function of a stock exchange. Stock exchanges primarily serve as marketplaces where securities such as stocks, bonds, and derivatives are bought and sold. They facilitate the trading of securities between buyers and sellers.
However, regulating the banking sector is typically the responsibility of regulatory bodies such as central banks and financial regulatory authorities. These entities oversee and regulate banks, ensuring their compliance with banking laws, capital requirements, and prudential regulations.
Question : Which of the following is not a function of the Reserve Bank of India (RBI)?
Option 1: Issuing currency notes
Option 2: Regulating the banking system
Option 3: Regulating the securities market
Option 4: Managing the foreign exchange reserves of India
Question : Case Study 34
ABC Ltd. is a conglomerate planning to expand its operations. The company's management is considering the roles of SEBI in the financial market.
Question :
What is the full form of SEBI?
Option 1: Securities and Exchange Board of India
Option 2: Stock Exchange and Banking Institution
Option 3: Securities and Equity Brokerage Institute
Option 4: Stock Exchange and Business Investment
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