| Q 1. | _________ is the authority which investigates the matter of insider trading in India.
Reserve Bank of India
Dept. of Economic Affairs
SEBI
The concerned Police authority
 CORRECT ANSWER  WRONG ANSWER
CORRECT ANSWER:SEBI Explanation:
Insider trading is prohibited in India and considered an offence. The SEBI (Insider Trading) Regulations-1992 prohibits an insider from dealing (on his own behalf or on behalf of others) in securities on the basis of unpublished price sensitive information. Such information may relate to financial results, bonus shares, mergers etc.
This regulations enables SEBI to take steps to investigate an allegation of insider trading and appoint inspectors.
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| Q 2. | Only one index of BSE ie. ____________ uses the full market capitalisation method instead of the free float method.
BSE IT
BSE PSU
BSE 100
BSE Bankex
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:BSE PSU |
| Q 3. | The base year for Bombay Stock Exchange index ie. Sensex is _____ and the base value is ________ .
1868-69 and 1000
1978-79 and 100
1970-71 and 1000
1988-89 and 100
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:1978-79 and 100 Explanation:
Details of Sensex :
Base Year - 1978 - 79
Base Index Value - 100
Launch Date - 1 Jan 1986
Number of scrips - 30
Metod of Calculation - Full Market Capitalisation Method from 1 Sept 2003
Index Calculation - Real Time |
| Q 4. | Interest earned on the interest which has become a part of the principal is called -
Simple Interest
Effective Interest
Compound Interest
Reccuring Interest
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:Compound Interest Explanation:
Interest earned on principal amount is called simple interest. When this simple interest is added back to the principal amount and then interest is earned on this joint amount it is called compund interest. |
| Q 5. | Every thing else being equal, higher the interest rate - higher the future value and lower the interest rate - lower the future value. State True or False ?
True
False
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:True Explanation:
If the interest rates rise/falls, the cost of carry rises/falls so the future value rises/falls.
For eg - If the interest rate is 6%, then the one month future value of Rs 200 spot price will be appx Rs 201. (6% of 200 / 12 months)
But if the interest coat rises to say 12%, than the one month future value will be appx Rs 202. |
| Q 6. | If a management is value based, it means its focus is on -
Higher Profits
Sales Growth
Ethics
Corporate Value
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:Ethics |
| Q 7. | Traders and investors in Hongkong can take an exposure or hedge their portfolios in the India Stock Markets thro' -
NSE Nifty
MCX Index
BSE Sensex
BSE 100
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:BSE Sensex Explanation:
Barclays Global Investors (BGI), the global leader in ETFs through its iShares brand, has created the 'iShares BSE SENSEX India Index ETF'. This ETF tracks the SENSEX, that captures the performance of a diversified portfolio of 30 blue-chip companies listed on the BSE. The ETF enables investors in Hong Kong to take an exposure to the Indian equity market or hedge their existing portfolios.
The 'iShares BSE SENSEX India Index ETF' as it is called is listed on the Hong Kong Exchange |
| Q 8. | The BSE sensex is calculated with a frequency of :
Every one hour
Every 30 minutes
Every 15 minutes
On real time basis
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:On real time basis Explanation:
During market hours, prices of the index scrips, at which trades are executed, are automatically used by the trading computer to calculate the BSE Indices on real time basis.
The Sensex is continuously updated on all trading workstations connected to the BSE trading computer in real time. |
| Q 9. | The Free Float Methodology is a globally accepted index calculation method. In India Sensex was the _______ index to accept this method.
First
Second
Third
Sensex does not use Free Float Method
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:Third Explanation:
Free-float Methodology takes into consideration only the free-float market capitalization of a company for the purpose of index calculation and assigning weight to stocks in Index. This means only those shares which are readily available for trading in the market are considered.
Therefore the promoters holding, government holding, other locked-in shares etc. will not come to the market for trading in the normal course and so are not considered for Index Calculation. |
| Q 10. | BSE is the world's number _____ exchange in terms of the number of listed companies as on 31 Dec 2009.
1
2
5
8
CORRECT ANSWER WRONG ANSWER CORRECT ANSWER:1 Explanation:
BSE has about 5000 companies listed and so is the top exchange of the world in terms of no. of listed companies. |