BCOM - SEMESTER V

CM05BBA05 – INVESTMENT MANAGEMENT

MULTIPLE CHOICE QUESTIONS

1. Investment is the employment of funds on assets with the aim of earning

………………….. & ……………………..
a. Risk & Return
b. Income & capital appreciation
c. Profit & loss
d. Income & Risk
2. …………. The taking of business risk in the hope of getting short term gain
a. Gambling
b. speculation
c. Investment
d. Portfolio management
3. The speculator is always willing to take more risk for more ………………..
a. Return
b. Loss
c. Funds
d. None of the above
4. Sacrifice of some present value for some uncertain future value is called
a. Investment
b. Risk
c. Gambling
d. Speculation
5. An example for gambling is ……………….
a. Banking
b. Cricket
c. Horse race
d. Hockey
6. The main objective of every investors is …………………..risk
a. Increase
b. Moderate
c. Reduce
d. None of the above
7. The important govt. securities are ………………
a. Promissory note and stock certificate
b. Shares and mutual funds
c. Debenture and financial activities
d. None of the above
8. Easy convertibility into cash is called ………………..
a. Hedge against inflation
b. Liquidity
c. Capital appreciation
d. None of the above
9. The main objective of each and every investment is ………. & …………
a. Risk & return
b. Regularity of income & capital appreciation
c. Safety and liquidity
 d. None of the above
10. For investment purpose mainly using …………………… & …………
a. Owners fund & borrowed fund
b. Mutual fund & derivative fund
c. Loan & Mutual fund
d. None of the above
11. Allocation of available funds in various types funds are balancing risk & return is called
…………………………
a. Portfolio diversification
b. Investment
c. Gambling
d. Checking
12. Equity shares are also known as …………………………..
a. Debt shares
b. Ownership shares
c. Normal shares
d. None of the above
13. The special feat me of equity shares are ………………….
a. Risk
b. Return
c. Voting right
d. None of the above
14. The equity shareholders has a right of receiving additional shares when ever they issued by the
company . It is known as ………………………..
a. Special right
b. Confidential right
c. Consideration right
d. Pre-emptive right
15. The face value of the equity share is also known as …………………
a. Premium
b. Discount
c. Par value
d. None of the above
16. The interest for savings account is calculated for a period of ……………..
a. 1 year
b. 2 year
c. 3 months
d. 6 months
17. For recurring deposit the maximum amount of investment is ……………
a. Rs 2000
b. Rs 500
c. Rs 1500
d. Rs 1000
18. For monthly income scheme of post office , joint account maximum amount is ………………..
a. 3 Lacks
b. 8 Lacks
c. 10 Lacks
d. 6 Lacks
19. In kisan Vikas Patra the investment will double with in a period of
a. 6 years & 2 months
 b. 7 years & 8 months
c. 6 years & 4 Months
d. 7 years & 7 months
20. Life insurance is a contract between insured person and …………..
a. Organization
b. Police
c. Insurance company
d. None of the above
21. The registered promises of Govt. is called ……………….
a. Promissory note
b. Stock certificate
c. Mutual fund
d. Financial derivatives
22. ULIP means …………………………….
a. Unit Life Insurance Plan
b. Unique Life Insurance Plan
c. Unit Linked Insurance Plan
d. Unit Long Insurance Plan
23. In public provident fund ………………..is not contributing any amount to provident fund
a. Employees
b. Agent
c. Employee
d. None of the above
24. The employee provident fund is exempted from tax when ………………contributor on it .
a. Employer
b. Agent
c. Employee
d. None of the above
25. Land and household property is jointly called
a. Previous object
b. Land & Building
c. Real estate
d. Household items
26. ………………. Is a legal instrument of bonds
a. Bond Indenture
b. Bond Deed
c. Bond debenture
d. Document
27. The privilege to the issuing company to repurchase bonds is known as
a. Call
b. Pre-emptive right
c. Redemption
d. Privileged interest
28. ………….. bond protects the owners from the loss of principal amount
a. Registered bonds
b. Debenture bonds
c. Sinking fund bond
d. Mortgage bonds
29. ……………… is the financial contract between the buyer and seller to buy or sell an underlying
assets with a predetermined rate for a future date
 a. Bond
b. Real estate
c. Financial derivatives
d. Ornaments
30. Financial derivatives are the financial contract between the buyer and seller to buy or sell an
…………… with a predetermined rate for a future rate
a. Fixed asset
b. Underlying asset
c. Floating asset
d. None of these
31. Oldest form of financial derivatives
a. Forward
b. Future
c. Options
d. Swaps
32. A user/holder who premises to buy the specified asset at an agreed price at a fixed future date is
said to be in ……………………..
a. Long position
b. Medium position
c. Short position
d. None of the above
33. Forward contracts are traded through over the counter . Hence it is also known as
………………………..
a. Customized contracts
b. Agreed contracts
c. Direct contracts
d. None of the above
34. Highly standardized financial derivatives are known as ……………………
a. Forward
b. Swaps
c. Futures
d. Currently
35. Option are the contract conveying the right but not the ……………….
a. Liability
b. Obligation
c. Asset
d. None of the above
36. Call option is the right to ………………….
a. Sell
b. Buy/ purchased
c. Re purchase
d. None of the above
37. Put option is the right to …………………
a. Purchase
b. Sell
c. Re purchase
d. None of the above
38. If the market price exceeds the exercise price in case of put option is called
…………………………
 a. ATM
b. OTM
c. ITM
d. None of the above
39. Financial derivatives market price of the asset in less than the exercise price is said to be
…………………
a. OTM
b. ATM
c. ITM
d. None of the above
40. ……………………… is the situation arises when the exercise price is equal to the current
market price of the underlying asset
a. OTM
b. ATM
c. ITM
d. WTM
41. …………………… is the exchange of cash flow or a set of financial obligation between two
parties overtime
a. Option
b. Future
c. Forward
d. Swaps
42. ……………………. Is a trust that pools the savings of a number of investors
a. Financial derivatives
b. Mutual fund
c. Swaps
d. Real estate
43. The promoter of the mutual fund is called …………………..
a. Mutual fund trust
b. AMC
c. Sponsor
d. Custodian
44. Among public sector mutual funds …………………. Or ……………… act as custodian
a. Sponsor or trustee
b. Sponsor or AMC
c. Trustee or AMC
d. Trustee or registar
45. The small fraction of mutual fund is called …………………..
a. Share
b. Fund
c. Unit
d. None of the above
46. Bombay stock exchange was established in the year
a. 1876
b. 1875
c. 1872
d. 1975
47. ……………… shares were issues to the promoters or founders for services rendered to the
company
 a. Preference shares
b. Equity shares
c. Ownership shares
d. Deferred shares
48. The promissory note issued by the govt. is also known as …………………
a. Stock certificate
b. Treasury bill
c. Swap
d. Futures
49. A good example for systematic risk is ………………..
a. Economic risk
b. Industry risk
c. Information risk
d. Product risk
50. Purchasing power risk is also known as …………………..
a. Interstate risk
b. Economic risk
c. Inflation risk
d. Sociological risk
51. ………………….. risk is arise due to changes in the demand & supply in the market
a. Market risk
b. Purchasing power risk
c. Economic risk
d. None of these
52. ………………….. risk is mainly affecting the debt securities like bonds and debentures
a. Purchasing power risk
b. Interest rate risk
c. Market risk
d. None of the above
53. CRISIL means …………………………..
a. Credit Rating Information Service India Ltd
b. Credit Rating Index Service India Ltd
c. Credit Rating Information Sensex India Ltd
d. Credit Rating Information Sensex Index Ltd
54. CRISIL was floated in the year ………………….
a. Jan 1st 1988
b. Jan 1st 1899
c. Jan 1st 1977
d. Jan 1st 1989
55. Interest rate of bond is called ……………….
a. Coupon rate
b. Inflation rate
c. Information rate
d. None of the above
56. Worth of a rupee received today is different from the worth of a rupee to be received in future is
called ………………….
a. Wealth rate
b. Bond valuation
c. Money value
d. Time value of money
57. …………………is performing the function of investment banks for the mutual fund
a. Sponsor
b. Mutual fund trust
c. Asset management company
d. Custodian
58. For AMC , if the collection of mutual fund is above 100 crores , his return /fee should be
………………….
a. 1.25% of investment
b. 1% of investment
c. 2% of investment
d. 1.35% of investment
59. If the collection of mutual funds is below 100 crores the fee for AMC should
be…………………….
a. 1%
b. 2%
c. 1.25%
d. 1.35%
60. ……………………. Has been functioning in the area of multi fund business in India since 1963-
64
a. LIC
b. UTI
c. SBI
d. SBT
61. The national savings certificate provide ………….. % tax exemption to the investor
a. 30%
b. 15%
c. 20%
d. 12%
62. Kisan Vikas Patra provides withdrawal facility for the investor after ………… years
a. 2 years
b. 3 years
c. 2 ½ years
d. 3 ½ years
63. Bonus rate of MISPO is …………………
a. 10%
b. 15%
c. 20%
d. 16%
64. LIC provides protection to the investor against risk of ……………..
a. Early death
b. Accident
c. Fire
d. None of the above
65. The securities which are providing a fixed income to the investors is known as
…………………….
a. Fixed income securities
b. Short term securities
c. Medium term securities
d. None of the above
66. Profit plan of Bima Sandesh the LIC scheme called ………………
a. Single plan
b. Profit scheme
c. Double ended scheme
d. None of the above
67. The provident fund especially for non- salaried persons is called ……………
a. Public provident fund
b. Employee provident fund
c. Employers provident fund
d. None of the above
68. Employee provident fund is also known as ………………
a. Employers provident fund
b. Recognized provident fund
c. Un – recognized provident fund
d. None of the above
69. The maturity date of bonds is also known as …………….
a. Retirement date
b. Closing date
c. Opening date
d. None of the above
70. Group A shares are also known as …………………….
a. Secured shares
b. Cleared shares
c. Un-cleared shares
d. Safety shares
71. For listing the shares in any stock exchange the organization requires minimum issued capital of
……………
a. Rs. 3 crore
b. Rs. 1.8 crore
c. Rs . 5 crore
d. Rs .3.6 crore
72. For listing the shares in any stock exchange the organization requires minimum public ofter of its
equity shares should be ……………………….
a. Rs. 1.6 crores
b. Rs. 1.7 crores
c. Rs. 1.8 crores
d. Rs. 1.7 crores
73. For listing the shares of any organization ,in more than one stock exchange ,it requires minimum
paid up capital of
a. Rs. 6 crores
b. Rs. 5 crores
c. Rs. 7 crores
d. Rs. 8 crores
74. The market for debentures , bonds of public sector undertaking is known as ………….
a. Capital market
b. Debenture market
c. Bond market
d. Dept market
75. New issue market is also known as ……………
a. Secondary market
 b. Primary market
c. Fresh issue market
d. None of the above
76. …………….. is an organized market for trading securities
a. Stock exchange
b. Primary market
c. New issue market
d. None of the above
77. Carry over the transactions /settlement of share purchase to the next day is called ……………….
a. Badla
b. Call
c. Spot delivery
d. Hand delivery
78. When the badla charges one payable by sellers to buyers is called
a. Undha Badla
b. Seeda Badla
c. Recovery badla
d. None of the above
79. When the badla charges are payable by sellers to buyer is called …………..
a. Undha Badla
b. Seeda Badla
c. Recovery badla
d. None of the above
80. The client leaves the decision to buy/sell at the discretion of the broker is called
…………………
a. Market order
b. Limit order
c. Discretionary order
d. Immediate order
81. As soon as the share order is place , it is recorded in a ……….. book
a. Order book
b. Journal book
c. Day book
d. None of the above
82. Present settlement cycle of transactions in secondary mkt is based on ……………..method
a. T+2
b. T+3
c. T+7
d. T+4
83. The intermediaries in BST is called ………………….
a. Brokers
b. Sub – brokers
c. Tarawaniwalas
d. Budliwalas
84. The budliwalas provides loan to the investors for ………… weeks
a. 2-3 years
b. 1-2 years
c. 3-4 years
d. None of the above
85. The speculator who promote un official dealing in stock exchange is called …………..
 a. Kerb dealers
b. Riggers
c. Arbitrage
d. Concerning
86. The bull speculators are also known as …………………
a. Mandiwalas
b. Tej walas
c. Stag
d. Lameduck
87. The bear speculators one also known as ……………………
a. Mandiwalas
b. Tej walas
c. Stag
d. Lame duck
88. DFHI is mainly promoting ……………… market instruments
a. Secondary market
b. Money market
c. Long term instruments
d. None of the above
89. Appeal against the orders securities and exchange Board of India can be made to
_____________
a. Central government
b. Securities Appellate Tribunal
c. Registrar of companies
d. High court
90. The capital market segment of NSE commenced operations in
a. Sep-96
b. Nov-94
c. Aug -96
d. Nov-96
91. The first two characters in ISIN code for a security represents____________________
a. Issuer Type
b. Security Type
c. Country code
d. Company identity
92. Which of the following statement is not correct
a. Depository in registered owner of the securities held in demat form
b. Securities in a depository are fungible
c. Securities in a depository are held in dematerialized form
d. Dematerialized securities have distinct numbers
93. SEBI has prescribed code of conduct for the sub broker in _____________
a. Indian contract Act,1872
b. Securities Contract (Regulation) Act 1956
c. Companies 1956
d. SEBI (Stock brokers and sub brokers)regulations 1992
94. A stock broker means a member of _____________________
a. SEBI
b. Any exchange
c. A recognized stock exchange
d. Any stock exchange
95. Nifty index drops by 15% at 3.00 pm. Market will halted________________
a. By half an hour
b. For remainder of the day
c. For ten minutes
d. For 15 minutes
96. An application for arbitration can be filed within __________- from the date of dispute
a. 3 months
b. 45 days
c. 6 months
d. 1 year
97. A depository participant_______________________
a. Is an investor who buys/sells shares through the depository
b. Trades in the dematerialized shares
c. Destroys the share certificates and makes a credit entry for his clients
d. Is an agent of the depository and takes physical share certificates from his clients
and sends them for dematerialization
98. The following are participants in the securities markets______________
a. Underwriters
b. Debenture Trustees
c. Venture capital funds
d. All of these
99. The securities markets have the following categories
a. Issuers
b. Investors
c. Intermediaries
d. All of the above
100. In private placement insurance is done to
a. More than 50 persons
b. Less than 100 persons
c. Less than 50 persons
d. Less than 10 persons
101. Which entry provide novations
a. NSCCL
b. NSE
c. NSDL
d. CDSL
102. ________________ deals with issue, allotment and transfer of securities
a. Companies act,1956
b. Depositories Act, 1996
c. Capital Issues (Control)Act,1947
d. None of the above
103. ________________ envisages transfer of ownership of securities electronically by
book entry without –making the securities move from person to person
a. Companies Act,1956
b. Depositories Act, 1996
c. Capital Issues (Control)Act,1947
d. None of the above
104. The company making a public issue of securities has to file a draft prospectus
with______________
a. RBI
 b. SEBI
c. Ministry of finance
d. None of the above
105. Promoters contribution in case of public issues by unlisted companies and
promoter’s share holding in case of ‘ offers for sale’ shall not be less than __________of
post issue capital
a. 50%
b. 15%
c. 20%
d. 30%
106. The companies Act,1956 requires that every public leased company making an
IPO of any security for ______ or more shall issue the same only in dematerialized form
a. Rs. 50 crores
b. Rs. 30 crores
c. Rs. 20 crores
d. Rs. 10 crores
107. Foreign currency convertible bonds(FCCBs) are also known
as__________________
a. Euro issues
b. Dollar issues
c. Convertible credit securities
d. Convertible credit bonds
108. Mutual funds being Public Trust are governed by the_______________________
a. Indian Trustees Act,1887
b. Mutual Trust Act,1880
c. Public trust Act,1886
d. Indian Trust Act, 1882
109. A company proposing to list on the NSE must have a minimum paid up equity
capital of
a. Rs. 50 crores
b. Rs. 20 crores
c. Rs. 10 crores
d. Rs. 30 crores
110. During Auction, order matching takes place after the
a. Solicitor period
b. Initiator period
c. Competitor period
d. Open period
111. For auction market price bonds of __________are applicable
a. 50%
b. 15%
c. 20%
d. 30%
112. _______________--- is a clearing member but not a trading member
a. Clearing banks
b. Self clearing member
c. Clearing member
d. Custodian
113. If the custodian rejects a trade , the obligator is assigned back to the
______________
a. Investor
b. Trading member
c. Clearing bank
d. Depository
114. A clearing member receives shares during _______________________
a. Pay –in
b. Pay-out
c. Auction
d. Funds settlement
115. The market for government securities comprises the securities issued by the
___________
a. Central Government
b. State Government
c. State sponsored entities
d. All of the above
116. The_______________ arises if a party discharges his obligations but the
counterparty defaults
a. Replacement cost risk
b. Principal risk
c. Systematic risk
d. Unsystematic risk
117. The ______________ combines the features of cash as well as features market
a. Account period settlement
b. Rolling settlement
c. T+2 settlement
d. T+1 settlement
118. Under the T+2 rolling settlement at NSE , Auction takes place
on_____________________
a. T+0
b. T+1
c. T+2
d. T+3
119. Under the T+2 rolling settlement at NSE custodial confirmation takes place on
a. T+0
b. T+1
c. T+2
d. T+3
120. In rest payments of the following bonds are based wholesale price
Index/consumer price Index
a. SBI bonds
b. RBI bonds
c. Zero coupon bonds
d. Indexed bonds
121. ______________ are standardized , exchange traded contracts
a. Swaps
b. Forwards
c. Futures
 d. FRA’s
122. An exporter would __________ dollar forward to lock in exchange rate
a. Sell
b. Buy
c. hold
d. Write
123. If you are bullish about a stock, you would_______________-
a. Sell
b. Buy
c. Short
d. Write
124. If you are bearish about a stock, you would _________ put options on the stock
a. Sell
b. Buy
c. Short
d. Write
125. ________means a depository whose name is entered as such in the register of the
issuer
a. Beneficiary owner
b. Registered owner
c. Investment banker
d. R&T agent
126. A company may purchase its own shares own of _______________
a. Its promoter’s money
b. It’s equity capital
c. Profits
d. Free reserves
127. _____________- is the discount rate which makes its net present value equal to
zero
a. Accured interest rate
b. Compounding
c. Discounting
d. Internal rate of return
128. Gross profit Ratio is given by______________
a. Gross profit/Net sales
b. Net profit/cost of sales
c. Net profit/sales
d. Gross profit/cost of sales
129. Fixed asset turnover ratio is given by___________
a. Net sales/average net fixed assets
b. Net sales/gross fixed assets
c. Cost of sales/average net fixed assets
d. Cost of sales/gross fixed assets
130. If YTM increases
a. Future value of cash flows goes down
b. Present value of cash flows goes up
c. Present value of cash flows goes down
d. Future value of cash flows goes up
131. SWP stands for
a. Systematic whining plain
 b. Systematic whining plan
c. Systematic withdrawal plan
132. SEBI stands for
a. Securities & Exchange Board Institute
b. Securities & Exchange Board of India
c. Securities & Exchanges Board of India
d. Securities & Exchanges Board Institute
133. Money markets refers to that part of the debt market where the maturity is
a. Less than 1 year
b. Less than 1 month
c. Less than 6 months
d. More than one year
134. Theta is also referred to as the ___________ of the portfolio
a. Time decay
b. Risk delay
c. Risk decay
d. Time delay
135. All of the following are true regarding futures contract except
a. They are regulated by RBI
b. They require payment of a performance bond
c. They are legally enforceable promise
d. They are market to market
136. All open positions in the index features contracts are daily settled at the
______________-
a. Mark to market settlement price
b. Net settlement price
c. Opening price
d. Closing price
137. Usually ,open interest is maximum in the ______________ contract
a. More liquid contracts
b. Far month
c. Middle month
d. Near month
138. An equity index comprises of ___________________
a. Basket of stocks
b. Basket of bonds and stocks
c. Basket of tradable debentures
d. None of the above
139. Position limits have been specified by __________________at trading member,
client , market end FII levels respectively
a. Sub brokers
b. Brokers
c. SEBI
d. RBI
140. Interest rates are usually quoted on :
a. Per annum basis
b. Per day basis
c. Per week basis
d. Per month basis
141. The favorable difference received by buyer/holder on the exercise/expiry date,
between the final settlement price as and the strike price , will be recognized as------------
a. Income
b. Expense
c. Can not say
d. None
142. The risk management activities and confirmation of trades through the trading
system of NSE is carried out by
a. Users
b. Trading members
c. Clearing members
d. Participants
143. The bull spread can be created by only buying and selling
a. Basket option
b. Futures
c. Warrant
d. Options
144. A stock broker means a member of
a. SEBI
b. Any exchange
c. A recognized stock exchange
d. Any stock exchange
145. A January month Nifty futures contract will expire. On the last_____________- of
January
a. Monday
b. Thursday
c. Tuesday
d. Wednesday
146. Which of the following are the most liquid stocks
a. All InfoTech stocks
b. Stocks listed/permitted to trade at the NSE
c. Stocks in the NIFTY index
d. Stocks in the UNX Nifty Junior Index
147. In the books of buyer/holder of the option the premium paid would
be_____________ to ‘ Equity Index Option Premium Account’ as the case may be
a. Debited
b. Credited
c. Depend
d. None
148. Greek letter measures a dimension to _______________in an option positions
a. The risk
b. The premium
c. The relationship
d. None
149. An option which gives the holder the right to sell a stock at a specified price at
some time in the future is called a__________________
a. Naked option
b. Call option
c. Out of the money option
 d. Put option
150. In which year foreign currency features based on new floating exchange rate
systems were introduced at the Chicago Mercantile Exchange
a. 1970
b. 1975
c. 1972
d. 1974
151. With the introduction of derivatives the underlying cash market
witnesses_______________
a. Lower volumes
b. Sometimes higher, sometimes lower
c. Higher volumes
d. Volumes same as before
152. Which risk estimation methodology is used for measuring initial margins for
futures/options market
a. Value of risk
b. Law of probability
c. Standard deviation
d. None of the above
153. The value of call option _____________ with a decrease in the spot price
a. Increases
b. Does not change
c. Decreases
d. Increases or decreases
154. The open position for the proprietary trades will be on a________________
a. Net basis
b. Gross basics
c. None
155. The black –Scholes option pricing model was developed in_______________
a. 1923
b. 1973
c. 1887
d. 1987
156. In the case of index future contracts, the daily settlement price is the
__________________
a. Closing price of the future contract
b. Opening price of future contract
c. Closing spot index value
d. Opening spot index value
157. Premium margin is levied at ____________________level
a. Client
b. Clearing member
c. Broker
d. Trading member
158. To operates in the derivative segment of NSE, the dealer/broker and sales persons
are required to pass ________________________examination
a. Certified financial analyst
b. MBA(finance)
c. NCFM
 d. Chartered accountancy
159. Margins levied on a member in respect of options contracts are initial margin,
premium margin and assignment margin
a. True
b. False
160. American option are frequently deducted from those of its European counterpart
a. False
b. True
161. A company making a public issue of securities has to file a draft prospectus with
______________
a. RBI
b. SEBI
c. Ministry of finance
d. None of the above
162. ____________________________is a clearing member but not a trading member
a. Clearing banks
b. Self clearing member
c. Clearing member
d. Custodian
163. ________________performs novation for transactions in Govt securities
a. Clearing corporation of India ltd(CCIL)
b. National securities clearing corporation ltd (NSCCL)
c. National stock exchange(NSE)
d. National depositary services ltd(NDSL)
164. __________________trades are essentially forward transactions in a security
which in still to be issued
a. Forward
b. If issued
c. When issued
d. None of the above
165. Arbitrageurs are one of the participants in the derivations market, true or false
a. True
b. False
166. Speculators use derivatives as Hedging tools. True or false
a. True
b. False
167. _____________________--is the total member of outstanding contracts that are
held by market participants at the end of each day
a. Outstanding position
b. Outstanding interest
c. Open position
d. Open interest
168. ___________________deals with listing of securities on stock exchanges
a. NSDL
b. RBI
c. SC( R)R,1957
d. SC( R)A,1956
169. _______________obligates the depositories to maintain ownership records of
securities and effect changes in such records electronically at the behest of the owner of
the securities
a. The depositories act, 1996
b. SEBI act,1992
c. SC( R)Act,1956
d. Companies Act, 1956
170. Are secured loans a part of liability or asset in balance sheet?
a. Liability
b. Asset
c. None of these
171. The client registration form is filled by the client when ___________________
a. Client deliver spurious shares
b. Broker has to file FIR against client
c. Clients enrolls himself with the broker
d. Client defaults in making payments
172. When a user logs in for the first time in the trading system of CM segment, he has
to enter the default password provided by the exchange. What is this default password?
a. NEAT
b. DEFAULTPSWD
c. NEAT CM
d. NEAT PASSWORD
173. If the eighth and ninth character of the ISIN is mentioned as 12, what does it
indicate
a. Security is deep discount bond
b. Security is a floating rate bond
c. Security is regular return bond
d. Security is step discount bond
174. VaR margin is charged at differential rate on the ____________________position
of the client in each security
a. Only sale
b. Only buy
c. Gross outstanding
d. Net outstanding
175. SEBI (intermediaries) regulations 2008 are not applicable for foreign venture
capital investors
a. True
b. False
176. NSE’s certification of financial market is not a _______________testing and
certification system
a. Nation wide
b. Conventional;
c. Fully automated
d. Online
177. _________________________price is the price for orders after the orders get
triggered from the stop loss book
a. Limit
b. Trigger
c. None of the above
178. Under the member constituent agreement, trading members are required to make
the clents aware of which of the following
a. Trading segment in which the trading member admitted
b. SEBI registration number
c. Basic risks involved in trading on the exchange
d. b,c
e. a,b
f. a,c
g. a,b,c
179. which of the following is demanded to be price sensitive information
a. Periodical financial results of the company
b. intended declaration of individuals
c. issue of securities or buy back of securities
d. any major expansion plans or execution of new projects
e. b,c,d
f. a,b,c,d
g. c,d
h. a,b,c
180. mutual funds in India follow a 3-toer structure
a. true
b. false
181. the sponsor registered the mutual fund with SEBI after forming the trust
a. false
b. true
182. transfer mange investor’s money
a. true
b. false
183. only the physical securities are held by the custodian
a. true
b. false
184. for a scheme to be defined as equity fund, it must have minimum
a. 65% in Indian equities
b. 65% in equities
c. 51% Indian equities
d. 35% in Indian equities
185. The FIIs can invest in a company up to ____________________% of the paid up
capital of the company, their percentage can be increased up to the scrotal cap as
applicable to the Indian companies by passing resolution of its board of directors
a. 32
b. 26
c. 28
d. 24
186. Which of the following requirements by intermediaries are laid down by the
SEBI(intermediaries) regulations, 2008 for all the intermediaries
a. grant of registration
b. code of conduct
c. common precedence for action in case of default
i. b,c
ii. a,b,c
 iii. b
iv. a,b
187. Which of the following is not a delivery report?
a. Member wise withheld securities statement
b. Margin report
c. Client allocation details
d. Demat final delivery statement
188. The securities market has two segments. Primary and secondary, is the above
statements true or false
a. False
b. True

Answer Key
1. b 2. b 3. a 4. a 5. c 6. c
7. a 8.c 9.c 10. a 11. a 12.b
13. c 14. d 15. c 16. d 17. d 18. d
19. b 20. c 21. a 22. c 23. a 24. d
25. c 26. a 27. a 28. a 29. c 30. b
31. a 32. a 33. a 34. c 35. b 36. b
37. b 38. c 39. b 40. c 41. d 42. b
43. c 44. a 45. c 46. b 47. d 48. b
49. a 50. c 51. a 52. b 53. a 54. a
55. a 56. b 57. b 58. b 59. C 60. b
61. c 62. c 63. a 64. a 65. a 66. c
67. a 68. c 69. a 70. b 71. a 72. C
73.B 74.d 75.b 76.a 77.a 78.b
79.a 80.c 81.a 82.a 83.c
84.a 85.a 86.b 87.a 88.b 89.b
90.b 91.C 92.d 93.d 94.c 95.b
96.b 97.d 98.d 99.d 100.d 101.a
102.b 103.c 104.d 105.a 106.d 107.c
108.a 109.c 110.d 111.b 112.b 113.d
114.b 115.a 116.a 117.d 118.b 119.d
120.c 121.a 122.b 123.b 124.b 125.d
126.d 127.a 128.a 129.c 130.c 131.c
132.a 133.a 134.a 135.a 136.d 137.a
138.c 139.a 140.a 141.c 142.d 143.C
144.b 145.c 146.a 147.a 148.d 149.c
150.c 151.a 152.C 153.a 154.b 155.a
156.a 157.d 158.a 159.b 160.b 161.d
162.a 163.c 164.a 165.b 166.d 167.d
168.a 169.a 170.c 171.c 172.d 173.d
174.a 175.b 176.a 177.d 178.b 179.a
180.b 181.b 182.a 183.a 184.d 185.b
186.b 187.b 188.b