Key Players in OTCEI
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Questions and Answers

What is one of the key roles of a Depository Participant?

  • Offer investment advisory services
  • Facilitate currency exchange services
  • Provide banking services to customers
  • Act as an agent of the Depository (correct)

How does a depository system differ from a banking system?

  • Depository facilitates account opening, while a bank provides investment services
  • Depository serves as an intermediary for currency exchange, while a bank holds securities
  • Depository holds securities in accounts, while a bank holds money in accounts (correct)
  • Depository transfers securities, while a bank transfers securities

What is a primary function of a Depository Participant?

  • Performs real estate transactions
  • Offers credit card services
  • Provides investment advice to customers
  • Facilitates dematerialization of securities (correct)

How does an investor benefit from opening a beneficiary account with a Depository?

<p>To have securities held electronically (A)</p> Signup and view all the answers

Which feature is NOT associated with the functions of Depository Participants?

<p>Providing insurance services (C)</p> Signup and view all the answers

What distinguishes a Depository Participant from a traditional bank?

<p>A DP maintains investors' securities account balances (A)</p> Signup and view all the answers

In the context of depository services, what does 'dematerialization' refer to?

<p>Converting physical securities into electronic form (A)</p> Signup and view all the answers

What type of accounts do investors need to open with a Depository Participant to utilize depository services?

<p>Beneficiary accounts (C)</p> Signup and view all the answers

Which entity acts as the customer interface of a Depository?

<p>Depository Participant (C)</p> Signup and view all the answers

What is one of the key benefits of using a Depository for securities holding?

<p>Instant transfer of shares and money consideration (D)</p> Signup and view all the answers
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