1.            Which of the following terms are related to online trading and settlement procedure?

(i)            T + 2                                       (ii) Broker-client agreement

(iii) Beneficial owner account      (iv) Trade/Order confirmationslip

(v) Contract note                             (vi) Share certificates                     (vii) Speculation

(a)          All terms are related to online trading and settlement procedure

(b)          All terms are related to online trading and settlement procedure, except (vii)

(c)           All terms are related to online trading and settlement procedure, except (vi) and (vii)

(d)          All terms are related to online trading and settlement procedure, except (iii), (vi) and (vii)

Ans: (c) All terms are related to online trading and settlement procedure, except (vi) and (vii)

2.            Which of the following statement about Treasury Bill is incorrect?

(a)          These are issued by RBI on behalf of Central Government

(b)          These are issued in the form of promissory note

(c)           These are highly liquid and have assured yield

(d)          These are issued at a price higher than their face value and repaid at par.

Ans: (d)                These are issued at a price higher than their face value and repaid at par.

3.            “BSE-SENSEX has risen 1.58%” – This statement means:

(a)          The remuneration of brokers working on BSE has increased by 1.58%

(b)          1.58% of people of Bombay have become sensitive about sex education

(c)           The amount of trade in securities on BSE has given profit of 1.58% on an average

(d)          The prices of selected securities on BSE have risen on an average by 1.58%

Ans: (d)                The prices of selected securities on BSE have risen on an average by 1.58%

4.            The following is not a function of Depository Participant:

(a)          Keeping securities in electronic form

(b)          Opening Securities Account

(c)           Transferring securities from or to Securities Account

(d)          Buying or selling of consumer goods on behalf of investor

Ans: (d)                Buying or selling of consumer goods on behalf of investor

 

 

 

5.            The 11,370 crore mega IPO of GIC got subscribed 1.37 times on the last day of closure of the offer. What could have been the reason for this over- subscription?

(a)          IPOs are safe investment avenues.

(b)          IPOs help the companies as well as investors to earn high.

(c)           GIC is in insurance business, so, risk is negligible.

(d)          Prospectus showing strong financial position of GIC, at the time of offer.

Ans: (d)                Prospectus showing strong financial position of GIC, at the time of offer.

6.            Which of the following marketable securities is issued by of a commercial bank?

(a) Commercial paper                    (b) Commercial Bill

(c) Certificate of Deposit               (d) None of the above

6. Ans: (c) Certificate of Deposit

7.            “Since 2003, all shares have to be covered under the rolling settlement system on a T + 2 basis.” What does this statement mean?

(a)          The transactions in securities are settled within 2 days after the trade date.

(b)          The transactions in securities are settled within 2 hrs after the trade date.

(c)           There is requirement of 2 terminals.

(d)          There should be trading of 2 stock only in a day.

Ans: (a) The transactions in securities are settled within 2 days after the trade date.

8.            Falcon Limited has sold 1 Lac equity share of ₹10 each at ₹ 30 per share to an investment bank, which has offered such shares to public at ₹ 40 per share. Identify the method of floatation:

(a) Offer for sale              (b) Right Issue

(c) e-IPOs                            (d) Private Placement

Ans: (a) Offer for sale

9.            Bridge Financing means:

(a)          Raising finance to construct a bridge

(b)          Issue of shares by a construction company

(c)           Issue of commercial paper to meet floatation cost of issuing shares

(d)          Issuing treasury bills.

Ans: (c) Issue of commercial paper to meet floatation cost of issuing shares

 

10.          Which of the following explains the meaning of ‘Depository’?

(a)          Depository buys shares and securities from a company and sells to the general public at a higher price

(b)          Depository is like a bank which keeps securities in electronic form on behalf of investor.

(c)           Depository holds the funds received in the form of deposits.

(d)          Depository buys and sells the shares and securities on the instructions of clients.

Ans: (b)                Depository is like a bank which keeps securities in electronic form on behalf of investor.

 

11.          Which of the following is not the function of Securities and Exchange Board of India?

(a)          Registration of brokers and sub-brokers.

(b)          Undertaking measures to develop financial markets.

(c)           Prohibition of insider trading.

(d)          Holding the securities in electronic form.

Ans: (d) Holding the securities in electronic form.

12.          It is an instrument of short term borrowing issued by RBI on behalf of Indian government.

(a) Call money                                   (b) Certificate of deposit

(c) Commercial paper                     (d) Treasury bill

Ans:  (d) Treasury bill

13.          Which of the following is NOT a method of floatation?

(a) Offer for Sale                              (b) Private Placement

(c) Placing of order                          (d) Rights issue

Ans: (c) Placing of order

14.          Which of the following is not a Money Market Instrument?

(a) Treasury Bill                 (b) Commercial paper

(c) Public Deposits           (d) Certificate of Deposits

Ans: (c) Public Deposits

 

15.          Which of the following is the function of SEBI?

(a)          Pricing of securities

(b)          Registration of brokers

(c)           Providing liquidity to existing securities

(d)          Contribution to economic growth

Ans: (b) Registration of brokers

 

16.          ‘It is short term finance repayable on demand, with maturity period of one day to fifteen days, used for inter-bank transactions’. Which money market instrument is being referred to in this statement?

(a) Commercial Paper                    (b) Call Money

(c) Certificate of Deposit               (d) Treasury Bill

(b) Call Money

 

17.          A director of a company sold his shares in the company for a huge profit as he had information about the company due to his position. He was penalized by SEBI with a fine. Which regulatory function out of the following did the SEBI perform?

(a)          Prohibition of fraudulent and unfair trade practices.

(b)          Calling for information by undertaking inspection, conducting enquiries and audits of stock exchanges and intermediaries.

(c)           Performing and exercising such power under Securities Contracts (Regulation) Act, 1956, as may be delegated by the Government of India.

(d)          Controlling insider trading and takeover bids and imposing penalties for such practices.

Ans: (d) Controlling insider trading and takeover bids and imposing penalties for such practices.