Correct answers are shown in green. Attempted answers, if wrong, are in red.

Q1 "A _____ is a corporate action which splits the existing shares of a particular face value into smaller denominations so that the number of shares increase, however, the market capitalization or the value of shares held by the investors post split remains the same as that before the split." [ 3 Marks ] (a) preferential allotment (b) stock split (c) bonus (d) rights (e) I am not attempting the question Q2 Transfer of resources from those having idle resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the _______. [ 2 Marks ] (a) insurance market (b) banking system (c) securities market (d) corporates (e) I am not attempting the question Q3 An investor bought 200 Nifty Futures at Rs. 4500 per future. He sold them at Rs. 5000 per future. Total profit / loss is Rs. _____ [ 2 Marks ] (a) (+) 5000 (b) (+) 10000 (c) (-) 10000 (d) (-) 5000 (e) I am not attempting the question Q4 The ________ provides a central convenient place where buyers and sellers can easily purchase and sell securities. [ 2 Marks ] (a) money market (b) currency markets (c) stock exchange (d) banks (e) I am not attempting the question Q5 _______ buy and sell currencies in the hope of profiting from price movements. [ 2 Marks ]

(a) Arbitrageurs (b) Speculators (c) Hedgers (d) I am not attempting the question Q6 An investor bought 100 Nifty Futures at Rs. 4500 per future. He sold them at Rs. 5000 per future. Total profit / loss is Rs. _____ [ 2 Marks ] (a) (+) 5000 (b) (-) 5000 (c) (+) 4000 (d) (-) 4000 (e) I am not attempting the question Q7 "The settlement amount for a Clearing Member is ____ across all their Trading Members/clients, with respect to their obligations on MTM, premium and exercise settlement." [ 1 Mark ] (a) netted (b) grossed (c) I am not attempting the question Q8 "When an issue of securities is made by an issuer to its shareholders existing as on a particular date fixed by the issuer (i.e. record date), it is called a ______. " [ 1 Mark ] (a) rights issue (b) bonus issue (c) I am not attempting the question Q9 Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs. 250 per call. An investor buys 200 Nifty calls. At expiry Nifty closes at 4800. Net profit / loss of the investor is Rs. ____. [ 2 Marks ] (a) (-) 50000 (b) (+) 30000 (c) (-) 30000 (d) (+) 50000 (e) I am not attempting the question Q10 "In the class of equity derivatives the world over, futures and options on stock indices have gained more popularity than on individual stocks." [ 1 Mark ]

(a) TRUE (b) FALSE (c) I am not attempting the question Q11 A corporate manager can define exposure limits for the branches of the firm. [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q12 "In a ______ contract, the contract price is generally not available in public domain." (a) forward (b) futures (c) I am not attempting the question Q13 The final settlement price is the closing price of the equity index futures contract on the last trading day of the contract. [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q14 Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs. 250 per call. An investor buys 200 Nifty calls. At expiry Nifty closes at 5200. Net profit / loss of the investor is Rs. ____. [ 2 Marks ] (a) (+) 30000 (b) (-) 30000 (c) (+) 50000 (d) (-) 50000 (e) I am not attempting the question Q15 Spot Nifty is at 5000. One month Nifty put with strike price of Rs. 5100 is trading at Rs. 150 per put. An investor buys 200 Nifty puts. At expiry Nifty closes at 4800. Net profit / loss of the investor is Rs. ____. [ 2 Marks ] (a) (-) 30000 (b) (+) 50000 (c) (-) 50000 [ 1 Mark ]

(d) (+) 30000 (e) I am not attempting the question Q16 "A ______ believes that it is possible to identify a trend, invest or trade based on the trend and make money as the trend unfolds." [ 1 Mark ] (a) fundamental analyst (b) technical analyst (c) I am not attempting the question Q17 _______ are claims on the borrower?s future income or assets. [ 2 Marks ] (a) Assets (b) Securities (c) Liabilities (d) Collaterals (e) I am not attempting the question Q18 The Financial system consists of : [ 2 Marks ] (a) Specialized & Non-Specialized financial institutions (b) Organized and Unorganized financial markets (c) Financial Instruments (d) All of the above (e) I am not attempting the question Q19 "As per the Securities Contract Regulation Act, in India, derivatives are legal and valid only if such contracts are traded on a recognized stock exchange. " [ 1 Mark ] (a) FALSE (b) TRUE (c) I am not attempting the question Q20 _____ is the rate of interest an investor expects to receive after subtracting inflation. (a) Real inflation rate (b) Real interest rate (c) Adjusted interest rate (d) Adjusted inflation rate [ 2 Marks ]

(e) I am not attempting the question Q21 Corporate actions tend to have a bearing on the price of a security. (a) FALSE (b) TRUE (c) I am not attempting the question Q22 The _____ market is a market for very short term funds. (a) call money (b) put money (c) equity (d) debt

[ 1 Mark ]

[ 2 Marks ]

(e) I am not attempting the question Q23 "Controllable, internal factors somewhat peculiar to industries and/or firms are referred to as sources of ______ risk." [ 1 Mark ] (a) systematic (b) unsystematic (c) I am not attempting the question Q24 "This is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. " [ 1 Mark ] (a) technical analysis (b) fundamental analysis (c) I am not attempting the question Q25 "An investor buys Rs. 2,00,000 worth of index futures. The maximum brokerage that can be charged to the investor is Rs. _____." [ 3 Marks ] (a) 2000 (b) 3000 (c) 5000 (d) 1000 (e) I am not attempting the question Q26 An investor sold 200 Nifty Futures at Rs. 4500 per future. He bought them back at Rs. 5000 per future. Total profit / loss is Rs. _____ [ 2 Marks ]

(a) (+) 5000 (b) (-) 10000 (c) (+) 10000 (d) (-) 5000 (e) I am not attempting the question Q27 Spot Nifty is at 5000. One month Nifty put with strike price of Rs. 5200 is trading at Rs. 250 per put. An investor buys 200 Nifty puts. At expiry Nifty closes at 5250. Net profit / loss of the investor is Rs. ____. [ 2 Marks ] (a) (+) 30000 (b) (-) 30000 (c) (+) 50000 (d) (-) 50000 (e) I am not attempting the question Q28 Properly analyzed and interpreted financial statements can provide valuable insights into a firm?s performance. [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q29 The Financial system consists of : [ 2 Marks ] (a) Financial Instruments (b) Financial services which facilitate transfer of funds (c) Regulators (d) All of the above (e) I am not attempting the question Q30 Many non-bank institutions act as intermediaries and when they so they are known as ______. [ 3 Marks ] (a) banking financial intermediaries (BFIs). (b) non-banking financial intermediaries (NBFIs). (c) non-financial intermediaries (NFIs). (d) financial intermediaries (FIs). (e) I am not attempting the question

Q31 ______ shares are issued out of the Company?s free reserve or share premium account in a particular ratio to the number of securities held on a record date. [ 1 Mark ] (a) rights issue (b) bonus issue (c) I am not attempting the question Q32 ______ arises from the possibility of default by any one party to the transaction. (a) Major party risk (b) Opposite party risk (c) Counterparty risk (d) Minor party risk (e) I am not attempting the question Q33 An investor sold 100 Nifty Futures at Rs. 4500 future. He bought them back at Rs. 5000 per future. Total profit / loss is Rs. _____ [ 2 Marks ] (a) (+) 4000 (b) (-) 4000 (c) (-) 5000 (d) (+) 5000 (e) I am not attempting the question Q34 "_______ are scarce, while human wants are unlimited." (a) Opportunities (b) Businesses (c) Start ups (d) Resources (e) I am not attempting the question Q35 _______ don?t involve any calculations. (a) Nifty charts (b) Pattern charts (c) Candlesticks (d) Patterns (e) I am not attempting the question [ 2 Marks ] [ 2 Marks ] [ 2 Marks ]

Q36 _______ is spreading your money across a range of investments. (a) Asset allocation (b) Correlation (c) Hedging (d) Diversification

[ 2 Marks ]

(e) I am not attempting the question Q37 _____ is the price demanded by the lender from the borrower for the use of borrowed money. [ 2 Marks ] (a) Interest (b) Commission (c) Dividened (d) Bonus (e) I am not attempting the question Q38 Financial markets allow a transfer of ___ from those who undertake investments to those who provide funds for those investments. [ 2 Marks ] (a) risk (b) debt (c) equity (d) goodwill (e) I am not attempting the question Q39 "To alert investors to the potential effects of management stock options and convertible securities, a second EPS is calculated by certain companies, which is called the ______ EPS. " [ 2 Marks ] (a) diluted (b) second (c) extra (d) additional (e) I am not attempting the question Q40 Surveyors and loss assessors are independent professionals appointed by an insurance company to assess the loss or damage when a claim is notified under a policy issued by them. [ 1 Mark ] (a) FALSE

(b) TRUE (c) I am not attempting the question Q41 A _____ economic indicator is one that does not change direction until a few quarters after the economy does. [ 1 Mark ] (a) lagged (b) leading (c) I am not attempting the question Q42 Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs. 250 per call. An investor buys 100 Nifty calls. At expiry Nifty closes at 5500. Net profit / loss of the investor is Rs. ___. [ 2 Marks ] (a) (+) 50000 (b) (-) 50000 (c) (+) 45000 (d) (-) 45000 (e) I am not attempting the question Q43 The products in the commodity derivatives markets can be categorized into Non-Agricultural Products and Agricultural Products. [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q44 Being able to measure and determine the past volatility of a security is important in that it provides some insight into the _______ of that security as an investment. [ 1 Mark ] (a) potential (b) riskiness (c) I am not attempting the question Q45 "An investor sells Rs. 2,00,000 worth of index futures. The maximum brokerage that can be charged to the investor is Rs. _____." [ 3 Marks ] (a) 2000 (b) 3000 (c) 5000 (d) 1000

(e) I am not attempting the question Q46 "A Trading Member's open position is arrived at as the summation of his proprietary open position and clients' open positions, in the contracts in which he has traded." [ 1 Mark ] (a) FALSE (b) TRUE (c) I am not attempting the question Q47 Doji lines are patterns with the same open and close price. (a) TRUE (b) FALSE (c) I am not attempting the question Q48 "The ____ market, is the largest financial market in the world." (a) forex (b) debt (c) equity (d) bonds (e) I am not attempting the question Q49 "Inflation can be high, moderate or low. " [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q50 ______ are a significant improvement over the forward contracts as they eliminate counterparty risk and offer more liquidity. [ 2 Marks ] (a) Futures (b) OTC trades (c) Bilateral contracts (d) Swaps (e) I am not attempting the question Q51 For the purpose of settlement all clearing members are required to open a separate bank account with NSCCL designated clearing bank for F&O segment. [ 1 Mark ] [ 2 Marks ] [ 1 Mark ]

(a) FALSE (b) TRUE (c) I am not attempting the question Q52 A primary motivation for pre-arranging a buyer or seller for a stock of commodities in early forward contracts was to lessen the possibility that large swings would inhibit marketing the commodity after a harvest. [ 1 Mark ] (a) FALSE (b) TRUE (c) I am not attempting the question Q53 Changes in rates are expressed as strengthening or weakening of one currency vis-?is the second currency. [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q54 "_______ helps to analyze and understand the financial health and trend of a business, its past performance, and makes it possible to forecast the future state of affairs of the business. " [ 2 Marks ] (a) Discounting (b) Fundamental Analysis (c) Ratio Analysis (d) Forecasting (e) I am not attempting the question Q55 "By using the _______ forward market to sell dollars forward, the seller can lock on to a rate today and reduce his uncertainty. " [ 2 Marks ] (a) commodities (b) bond (c) currency (d) equity (e) I am not attempting the question Q56 "The overseer of all commodity futures markets, including the national exchanges, is the _____." [ 3 Marks ]

(a) Reserve Bank of India (RBI) (b) Forward Markets Commission (FMC) (c) Securities & Exchange Board of India (SEBI) (d) I am not attempting the question Q57 Derivatives can be traded on _____. [ 2 Marks ] (a) equity (b) forex (c) commodities (d) All of the above (e) I am not attempting the question Q58 ______ rates are also used to curb the effect of inflation especially when the inflation is high. [ 2 Marks ] (a) Real interest (b) Nominal interest (c) Interest (d) I am not attempting the question Q59 "Technical analysis has universal applicability. It can be applied to any financial instrument stocks, futures and commodities, fixed-income securities, forex, etc." [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question Q60 The expected rate of return on a stock represents the mean of a probability distribution of possible future returns on the stock. [ 1 Mark ] (a) TRUE (b) FALSE (c) I am not attempting the question