Test Prep / CustomExam Practice Test

CustomExam Practice Test

Custom Exam Prep Plan10 Questions20 min

CustomExam Practice Test

Practice test for Custom Exam Prep Plan

10Questions
20Minutes
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About This Test

This practice test is designed to help you prepare for the CustomExam exam. It contains 10 questions and has a time limit of 20 minutes.

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Important Questions

1

What is the primary function of the capital market?

A:Short-term financing
B:Long-term financing
C:Liquidity management
D:Day-to-day transactions
2

Which of the following is a key participant in the primary market?

A:Issuing houses
B:Underwriters
C:Registrars
D:Brokers
3

Which type of security represents ownership interest in a firm with voting rights and residual claims on profits?

A:Ordinary Shares
B:Preference Shares
C:Corporate Bonds and Debentures
D:Government Bonds
4

What is the role of the Securities and Exchange Commission (SEC) in the capital market?

A:Provides trading infrastructure
B:Sets operational standards for brokers and dealers
C:Ensures efficient clearing, settlement, and custody of securities
D:Regulates and supervises market operations
5

Which of the following factors contributes to low investor confidence in the Nigerian capital market?

A:Market volatility
B:Perceived governance lapses
C:Macroeconomic stability
D:High public awareness
6

What is the role of the Nigerian Exchange Group (NGX) in the Nigerian capital market?

A:Provides the trading infrastructure and sets operational standards for brokers and dealers
B:Ensures electronic clearing, settlement, and custody of securities
C:Regulates and supervises market operations
D:Facilitates trading in fixed income, derivatives, and money market instruments
7

Which of the following factors is a challenge for capital market development in Nigeria?

A:Sufficient product diversification
B:Macroeconomic stability
C:Low public awareness
D:Strong regional integration
8

What is the expected impact of digital transformation in Nigeria's capital market?

A:Reduced transparency and broadened access
B:Decreased investor confidence
C:Enhanced transparency and broadened access
D:Increased volatility and reduced liquidity
9

Which of the following factors is essential for sustaining capital market development in developing economies like Nigeria?

A:Policy inconsistency
B:Weak corporate governance
C:Investor education
D:Limited technological innovation
10

What is the role of the Central Securities Clearing System (CSCS) in Nigeria's capital market?

A:Provides the trading infrastructure and sets operational standards for brokers and dealers
B:Ensures electronic clearing, settlement, and custody of securities
C:Facilitates trading in fixed income, derivatives, and money market instruments
D:Regulates and supervises market operations