Question Bank for NCFM Test, NISM Exam & BSE Exam

Explanation:

Inflation is the rate at which the cost of living increases.

The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value.

For example, if the annual inflation rate is 7%, then the investment will need to earn more than 7% to ensure it increases in value.

Explanation:

The order with highest buy price is considered as the BEST BUY ORDER.

Explanation:

Open Ended funds do not have a fixed date of redemption which means they are open

for subscription and redemption throughout the year.

Their prices are linked to the daily net asset value (NAV).

Explanation:

NSE CNX Nifty (Nifty), is a scientifically developed, 50 stock index, reflecting accurately the market movement of the Indian markets.

Explanation:

The company and merchant banker decide the IPO price.

They are however required to give full disclosures of the parameters which they had considered while deciding the issue price.

Explanation:

NSE Nifty consists of 50 bluechip stocks.

Explanation:

Due to non-delivery of securities by the trading member on the pay-in day, the securities are put up for auction by the Exchange.

This ensures that the buying trading member receives the securities. The Exchange purchases the requisite quantity in auction market and gives them to the buying trading member.

Explanation:

There are two prices for a stock - BID and ASK price.

The Bid price is the buyers price and Ask is the sellers price.

For eg- Price of Reliance is Rs. 1000 - 1001 - Then 1000 is the Bid (Buyers) price and 1001 is the Ask (Sellers) price.

Explanation:

Gilt funds invest in Central and State Government securities.

Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for investors who are averse to risk.