Multiple choice

An account in which trading of shares in their electronic form is done is known as _____

  1. Demat Account

  2. NRI Account

  3. NRIO Account

  4. Current Account

  5. None of these
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A Correct answer
Explanation

A Demat Account (Dematerialized Account) is used to hold shares and securities in electronic form, eliminating the need for physical share certificates. When trading of shares occurs, they are debited or credited electronically from the Demat Account, making share trading faster, safer, and more efficient compared to the traditional paper-based system.

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