NCFM Capital Market Class Test 2 (Question 1 to 50)

Time : 50 Mins

Q.1

Investor Protection Fund is a Ans- A (a) (b) (c) (d) A trust NSE NSCCL SEBI

( 2 marks )

Q.2

What is the Purpose of Previous trades on NEAT System? Ans- D (a) (b) (c) (d) Security wise information to managers for own orders Security wise information to users for own orders. Security wise information to users for own trades. Security wise information to client for own orders

( 2 marks )

Q.3

Which of the following is/are termed as securities: Ans- A (a) (b) (c) (d) Shares Debenture stock Government securities All of the above

( 1 mark)

Q.4

The term `securities' has been defined in which section of SC(R) A 1956 mark ) Ans- A

(1

(a) (b) (c) (d)

Section 2(F) Section 2(H) Section 2(i) Section 2(g)

Q5

Which act deals with issue, allotment and transfer of securities. ( 2 marks )

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Ans- D (a) (b) (c) (d) Companies Act SEBI Act Securities Contract Act All of the above

Q.6

Which of the following statements is wrong? ( 1 mark ) Ans- A (a) The investors have an option for subscribing to securities in either physical form or dematerialised form. (b) All new IPO`s are compulsory traded in demat form. (c) Every public listed company making IPO of any security for Rs 10 Crore or above can do so through dematerialised form (d) All new IPOs are compulsorily made in demat form.

Q.7

What is GDR? Ans- B (a) (b) (c) (d) Global Delivery Reciept Global Depository Reciept Global Depository Reserve Global Depository Repurchase ( 1 mark )

( 1 mark )

Q.8

Who regulates the stock markets in India? . Ans- D (a) (b) (c) (d) SEBI Department of Company Affair SAT All of the above ( 2 marks )

Q.9

ISIN is alloted by . Ans-A (a) SEBI (b) NSDL (c) CDSL (d) None of the above

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Q.10

Which slip is generated in case a trade cancellation request is rejected by the exchange NEAT system? . ( 2 marks ) Ans- D (a) (b) (c) (d) Buy trade All trade Buy and Sell trade cancellation rejection Buy and Sell order . ( 2 marks )

Q.11

Who can use the local database? Ans- D (a) (b) (c) (d) Dealer Branch Manager Corporate Manager All of the above

Q.12

Who governs dealing in contracts of government securities? . Ans- B (a) (b) (c) (d) SEBI RBI DOCA DCA

( 1 mark )

Q.13

What is ADR? ( 1 mark ) Ans- B (a) (b) (c) (d) American Depository Services Regd. American Deposit Receipts. American Defence Research American Deposit Rate

Q.14

Who determines pricing of security? Ans- D (a) (b) (c) (d) SEBI RBI Comptroller of Capital Issue Buyer & Seller

( 2 marks )

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Q15. The primary market inssuance is done through Ans- A (a) Public issues (b) Private placement (c) Both (a) & (b) (d) None of the above Q.16 An issue resulting in allotement to less than 50 persons is Ans- C (a) Public Placement (b) Private issue (c) Private placement (d) Initial placement Q17. Trades executed on the NSE are cleared and settled by a Ans- D (a) Trading member (b) Clearing member (c) Clearing corporation (d) Trading & clearing member Q.18. NSE provides a formal trading platform for trading in Ans- D (a) Equities (b) Derivatives (c) Retail debt instruments (d) (a),(b) & (c) Q.19. The 3 categories of participants in the securities market are Ans- A (a) Issuers, Sellers & Buyers (b) Issuers, Investors & Intermediaries (c) Issuers, Brokers & Sub-brokers (d)Trading members, Investors & Clearing members Q.20. SBTS matches order on a strict Ans- C (a) Price-quantity priority (b) Quantity-time priority (c) Price-time priority (d) Time-price priority

(Marks 2)

(Marks 2)

(Marks 1)

(Marks 2)

(Marks 2)

(Marks 1)

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Q.21.

An index-based market-wide circuit breaker system has been prescribed by the exchange at ___________ stages (Marks 2) Ans- B (a) 2 (b) 3 (c) 4 (d) 5

Q.22.

In order to deepen the understanding and knowledge about Indian capital market, and to assist in policy making _____________ has set up an in-house research department (Marks 2) Ans- C (a) SEBI (b) NSCCL (c) NSE (d) NSDL

Q23. There are ______________ barriers to membership in NSE Ans- C (a) No entry but exit (b) Entry but no exit (c) No entry & no exit (d) Entry & Exit Q.24. A person whose name is recorded as such with a depository is know as Ans- C (a) Beneficial owner (b) Registered owner (c) Participant (d) Issuer Q25.

(Marks 2)

(Marks 2)

Every public listed company making IPO of any security for __________ crore or more is required to do so only in demeterialised form (Marks 2) Ans- A (a) Rs.10 crore (b) Rs. 12 crore (c) Rs. 15 crore (d) Rs. 50 crore

Q26

Market Watch screen has how many columns Ans- C (a) 7 (b) 8

(Marks 1)

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(c) 9 (d) 5 Q.27 In message window what is the default filter code? Ans- C (a) CLI (b) WHS (c) ALL (d) None of the above Q.28 In one page of 'Market watch' screen how many script can be recorded Ans- C (a) 22 (b) 30 (c) 500 (d) 18 Q.29 The EX indicator in the Market Watch screen in case of securities without having no delivery period is displayed on (Marks 2) Ans- A (a) On the day when the security start trading as EX (b) On new settlement day (c) Both (a) & (b) (d) None of the above Q.30 In MBP screen Ans- D (a) Special term orders cannot be viewed (b) Untriggered stop loss order are displayed (c) Untriggered stop loss order are not displayed (d) None of the above Q.31 In Limited Physical market, order gets matched when, --------------- in the buy and sell order. ( 2 marks ) (Marks 2) (Marks 1) (Marks 2)

Ans- A (a ) only price is the same (b ) price and quantity is the same (c ) only quantity is the same (d ) stop loss is specified as order condition

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Q.32 When the user Log in for the First time, he has to enter the default Password Ans-B (a) NEATXS (b) NEATCM (c) NEAT (d) None of the above Q.33 Most active securities are based on Ans- B (a) Trade Volume (b) Trade value (c) Both ( a) & (b) (d) None of the above Q.34 What does BSE stands for ? Ans- B (a) Baroda Stock Exchange (b) Bombay Stock Exchange (c) Bankok Stock Exchange (d) Beijing Stock Exchange Q.35 A branch order value limit is set up by Ans- D (a) SEBI (b) Stock Exchange (c) Dealer (d) Corporate manager

(Marks 2)

(Marks 2)

(Marks 1)

(Marks 2)

Q.36 Off Line Order Entry has been incorporated in the trading Software where the user can generate (Marks 2) Ans- C (a) Order in off market (b) Order file in specific format (c) Both (a) & (b) (d) None of the above Q.37 In the buy stop loss offer Ans- C (a) Market price is less then equal to trigger price (b) Market price is greater then equal to trigger price (c) Market price is equal to trigger price New Era Institute of Professional Studies (NIPS) Page 7 (Marks 1)

(d) Market price is not equal to trigger price Q.38 What does CDSL stands for ? Ans- D (a) Central Demat Services Ltd. (b) Control Demat Services Ltd. (c) Central Department Services Ltd. (d) Central Depositories Services Ltd. Q.39 What does CM stands for ? Ans- B (a) Clearing Membership (b) Capital Market (c) Control Management (d) Corporation Management Q.40 If a member is disabled by exchange his pending orders Ans- D (a) Remain active in market (b) Executed at market rate (c) Not matched with alternative broker (d) Automatically cancelled by NSE Q41. A password should contain maximum characters Ans- B (a) 4 (b) 6 (c) 7 (d) 8 Q42. What does DEA stands for ? Ans- C (a) Delay in Economic Affairs (b) Degradation in Economic Affair (c) Department of Economic Affairs (d) Department of Company Associates
Q45. If the eighth and ninth character of the ISIN is mentioned as 12, what does it Indicate [2 Marks] Ans- D (a) security is deep discount bond (b) security is a floating rate bond

(Marks 1)

(Marks 2)

(Marks 3)

(Marks 3)

(Marks 2)

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(c) security is regular return bond / promissory note (d) security is step discount bond Q46. A trading member on the NSE, has set the branch order value unlimited for his Chennai branch and Rs. 650 lakh for Kolkata branch. Chennai branch has two users 'X' and 'Y' with user order value limits of Rs. 250 lakh and Rs. 300 lakh respectively. Kolkata branch has one user 'Z' with user order value limit of Rs. 350 lakh. The member applies for a new user at Kolkata. What is the maximum user order value that can be set for the new user? [3 Marks] Ans- A (a) Rs. 300 lakh (b) unlimited (c) Zero (d) Not more than Rs. 650 lakh 47. Who can set Branch Order Value limits on the NEAT system? Ans- C (a) None of the above (b) Dealer (c) Corporate manager (d) Branch manager 48. If the eighth and ninth character of the ISIN is mentioned as 07, what does it Indicate [2 Marks] Ans- D (a) security is non-convertible preference share (b) sec urity is a warrant (c) security is equity share / mutual fund (d) security is secured debenture Q49. NSE's Certification in Financial Markets is NOT a _____________ testing and certification system. [1 Mark] Ans- B (a) nation-wide (b) conventional (c) fully automated (d) online Q50. ______ price is the price for orders after the orders get triggered from the stop loss book [1 Mark] Ans-(a) Limit (b) Trigger (c) Not Attempted [2 Marks]

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