Loading...
UPSC 2005: Consider the following statements : 1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange (BSE) 2. For calculating the Sensex, all the Sensex stocks are assigned proportional weightage. 3. New York Stock Exchange is the oldest stock exchange in the world. Which of the statements given above is/are correct?
(a)2 only
(b)1 and 3
(c)2 and 3
(d)None
Attempt This Question
Not attemptedCorrect Answer: (a) 2 only
The BSE Sensex is a free-float market-capitalization-weighted index of 30 (not 50) leading shares listed on the Bombay Stock Exchange; therefore Statement 1 is incorrect. Because the index is market-cap weighted, each constituent gets weight proportional to its market value, so Statement 2 is correct. The oldest organised securities market is generally recognised as the Amsterdam Stock Exchange founded in 1602, not the New York Stock Exchange (1792); Statement 3 is incorrect. Thus only Statement 2 is correct. ([en.wikipedia.org](https://en.wikipedia.org/wiki/BSE_SENSEX?utm_source=openai))
Related Current Affairs
Related UPSC Questions
More from Financial Markets & Capital Markets
2002moderate
Among the following major stock exchanges of India, which one recorded the highest turnover during the year 2001-02?
2000moderate
The upper part of the graph is a hypothetical movement in the BSE Sensex over a few months and the lower part is the fluctuation in the average value
2010moderate
In India, which of the following is regulated by the Forward Markets Commission ?
Related Indian Economy Topics
2005External Sector & Balance Of Payments
Consider the following statements : 1. During the year 2004, India’s foreign exchange reserves did not exceed the 125 billion U.S. Dollar mark 2. The
2005Agriculture & Rural Development
Consider the following statements : 1. India is the only country in the world producing all the five known commercial varieties of silk. 2. India is t
Frequently Asked Questions
What is the correct answer to this UPSC 2005 Indian Economy question?▼
The correct answer is option (a): 2 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Financial Markets & Capital Markets question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2005, GS Paper 1, as Question 73. It falls under Indian Economy > Financial Markets & Capital Markets.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Financial Markets & Capital Markets?▼
UPSC has asked 39 questions from Financial Markets & Capital Markets (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.