Test Prep / CustomExam Practice Test - 11/30/2025

CustomExam Practice Test - 11/30/2025

Custom Exam Prep Plan10 Questions20 min

CustomExam Practice Test - 11/30/2025

A practice test for CustomExam

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:Mobilizing short-term funds
B:Providing a platform for trading previously issued securities
C:Transforming savings into investment
D:Speculating on price movements
2

Which of the following is a debt instrument in the capital market?

A:Ordinary Shares
B:Preference Shares
C:Corporate Bonds and Debentures
D:Exchange-Traded Funds (ETFs)
3

Who are the participants in capital market operations?

A:Issuers
B:Investors
C:Intermediaries
D:Regulators
E:Self-Regulatory Organizations (SROs)
4

Which of the following best describes the secondary market?

A:A platform for trading of previously issued securities
B:Where new securities are created and issued to raise fresh capital
C:An instrument for transforming savings into investment
D:A mechanism for determining the cost of capital within an economy
5

What is the main objective of sound regulation in the capital market?

A:Maintaining market integrity
B:Preventing insider trading
C:Ensuring fairness
D:Protecting investors against fraudulent activities
E:All of the above
6

Which of the following is a challenge faced by the Nigerian capital market?

A:Low investor confidence
B:Limited product diversification
C:Macroeconomic stability
D:High public awareness
E:Robust regulatory enforcement
7

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

A:Providing the trading infrastructure
B:Setting operational standards for brokers and dealers
C:Ensuring electronic clearing, settlement, and custody of securities
D:Facilitating trading in fixed income, derivatives, and money market instruments
8

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

A:Digital transformation
B:Growth of Green Bonds and Sukuk
C:Expansion of pension funds and sovereign wealth funds
D:Regional integration through the African Continental Free Trade Area (AfCFTA)
E:All of the above
9

Which of the following is an instrument that combines debt and equity features?

A:Ordinary Shares
B:Preference Shares
C:Corporate Bonds and Debentures
D:Hybrid Instruments such as convertible bonds
10

What is the Securities and Exchange Commission (SEC)'s role in the Nigerian capital market?

A:Licensing market operators
B:Approving new issues
C:Enforcing disclosure requirements
D:Protecting investors
E:All of the above