Economy : Capital Market

Q 15 / 15

UPSC CSE Prelims 1998

Which of the following pairs are correctly matched?

1. Dow Jones : New York
2. Hang Seng : Seoul
3. FTSE-100 : London

Codes:

EXPLANATION

Correct Option

The Dow Jones Industrial Average (DJIA) is a stock market index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and NASDAQ in the United States. It is headquartered in New York.

The FTSE 100 Index (Financial Times Stock Exchange 100 Index) is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation. It is based in London, United Kingdom.

Incorrect Options

The Hang Seng Index (HSI) is a free-float adjusted market-capitalization-weighted stock market index in Hong Kong. It is used to record and monitor the daily changes of the largest companies of the Hong Kong stock market. Therefore, the pair 'Hang Seng : Seoul' is incorrectly matched. Seoul's primary stock market index is the KOSPI (Korea Composite Stock Price Index).

Options 1, 2, and 3 are incorrect as they either include the incorrectly matched 'Hang Seng : Seoul' pair or exclude a correctly matched pair.

SOURCEIndian Economy by Ramesh Singh, Chapter on Capital Market