In the context of the Indian Financial System, the 'Forward Markets Commission' (FMC) was the regulator for which market before its merger with SEBI? MCQ with Answer and Explanation

In the context of the Indian Financial System, the 'Forward Markets Commission' (FMC) was the regulator for which market before its merger with SEBI?
A. Government Securities Market
B. Money Market
C. Commodity Derivatives Market
D. Foreign Exchange Market
Answer: Option C
Solution (By JKSSB Mock Tests)
The Forward Markets Commission (FMC) was the regulatory authority for the commodity derivatives market in India before it was merged with SEBI in 2015.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is a feature of a joint venture?
A. It is formed for a specific, short-term project
B. It has perpetual succession
C. It is governed by the Companies Act
D. It has a separate legal entity

Correct Answer: Option A


Explanation:
A joint venture is a temporary partnership formed for a specific venture or project, and it ceases to exist once the project is completed.

Question #2
Target Cost is calculated as:
A. Current Cost - Desired Profit
B. Prime Cost + Factory Overheads
C. Expected Selling Price - Desired Profit Margin
D. Variable Cost + Fixed Cost

Correct Answer: Option C


Explanation:
Target costing starts with market price, subtracts the required profit, to find the maximum allowable cost (Target Cost).

Question #3
The 'Suspense Account' is opened when:
A. Trial balance does not agree
B. An asset is sold
C. Final accounts are prepared
D. A fraud is detected

Correct Answer: Option A


Explanation:
It holds the difference in trial balance until errors are located.