BSEs Certification for Stock Markets (BCSM) Examination

MODEL TEST PAPER FOR BCSM

Q. Id Question Option 1 Option 2 Option 3 Option 4

Indian Securities market is one
1 among top______ securities Four Eight Three Six
markets of the world.

The Bombay Stock Exchange was

2 1875 1873 1874 1872
established in ______

Limited A Voluntary
The Bombay Stock Exchange was
3 Liability partnership A company non-profit
established as a ___________
Firm firm organization

As of December 31, 2009 the

Bombay Stock Exchange was
4 among the top_____ of global Six Eight Ten nine
exchanges in terms of market
capitalization of its listed companies
As of December 31, 2009 the
Bombay Stock Exchange was the
5 worlds number _____ exchange in One Two Five Three
the world in terms of listed
companies

The first exchange in India to get The Multi The Bombay The National
6 ISO 9001:2000 certification was Commodity Stock The OTCEI Stock
_____ Exchange Exchange Exchange

Bombay Stock Exchange was the

7 __________ in the world to obtain First Second Fifth Third
the ISO 9001:2000 certifications

Exchange traded fund (ETF) on

8 SENSEX are listed on BSE and UK USA Hong Kong Japan
Exchange in ________

External
The debt market in India covers all, Letters of State Govt. Central Govt.
9 Commercial
except Credit debts debts
Borrowings

Currently, Indian Securities market

comprised of _________ stock
10 15 22 19 17
exchanges spread throughout the
country
Securities
Ministry of and Department
Which of the following is not a Ministry of
11 Corporate Exchange of Economic
market regulator commerce
Affairs Board of Affairs
India (SEBI)

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 BSEs Certification for Stock Markets (BCSM) Examination

Contracts for sale and purchase of

government securities, gold-related
securities, money market securities
and securities derived from these
12 DCA SEBI SBI RBI
securities and ready forward
contracts in debt securities shall be
regulated by ______, once they are
not traded on any stock exchange
Majority of the powers granted
13 under SCRA are exercisable DEA SEBI MCA RBI
by______
The powers under the Companies
Act relating to issue and transfer of
securities and non-payment of
dividend are administered by
14 FMC SEBI RBI DEA
_________ in case of listed public
companies and public companies
proposing to get their securities
listed
The
The
Foreign
Which of the following is not a key Securities The
Exchange The SEBI
15 regulations currently governing Contracts Companies
Manageme Act, 1992
Indian securities market Regulation Act, 1956
nt Act,
Act, 1956
1999
Securities Contracts (Regulation)
Stock Real Estates
16 Act (SCRA), 1956 gives SEBI Commodities Banks
Exchanges Markets
regulatory jurisdiction over
The Securities Contracts
(Regulation) Act, 1956 was enacted
to _______ undesirable
17 transactions in securities by exempt prevent receive promote
regulating the business of dealing
therein and by providing for certain
other matters connected therewith
Under the Securities Contracts
(Regulation) Act (SCRA), 1956, Commoditi Mutual Fund Government
18 Derivatives
section 2(h) does not include which es Units securities
as Securities
A contract
which
derives its
value from
Mutual
19 Derivative includes the prices, Rights issue ETF
Funds
or index of
prices, of
underlying
securities

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 BSEs Certification for Stock Markets (BCSM) Examination

Every recognised stock exchange

and every member thereof shall
maintain and preserve for such
periods not exceeding __________
such books of account, and other
20 Five years One year Two years Four years
documents as the Central
Government, after consultation
with the stock exchange concerned,
may prescribe in the interest of the
trade or in the public interest
A member of a ________ shall not
in respect of any securities enter
into any contract as a principal with
any person other than a member of
recognised
a recognised stock exchange, commodity financial
21 stock Mutual Fund
unless he has secured the consent exchange institution
exchange
or authority of such person and
discloses in the note, memorandum
or agreement of sale or purchase
that he is acting as a principal

Allotment
The Companies Act, 1956 does not Commodity Issues of Money
22 and transfer
deal with markets Securities markets
of securities

Under Section 31 of The Companies Limited

Public Private
23 Act, 1956, any company could be of Liability Trust
Companies Companies
the form except Firm

Broad indices are expected to

capture the __________ of equity
selective Overall Liquidity
24 market and need to represent the Price behavior
behaviour behavior behavior
return obtained by typical portfolios
in the country

The primary function of a stock

A
25 index is to serve as _________ of a barometer A litmus test A yardstick
benchmark
the equity market

Transfer of
the securities
by the
Actual depository
delivery of from the
"Spot delivery contract" has been Sale of All given
securities account of a
26 defined in Section 2(i) to mean a shares on a options are
and the beneficial
contract which does not provide for spot date correct
payment owner to the
thereof account of
another
beneficial
owner

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 BSEs Certification for Stock Markets (BCSM) Examination

SEBI may direct a recognised stock

exchange to suspend such of its
business for such period not
27 Seven days One day Two days Five days
exceeding ________and subject to
such conditions as may be specified
in the notification
The Companies Act, 1956 stipulates
that a meeting of the Board of
Directors shall be held atleast
_______ in every quarter of the
Three
28 calendar year and committees of Once Twice Five times
times
the Board like investment
committee, audit committee,
compensation committee etc. shall
meet as and when required
As per The Companies Act, 1956,
excluding directorship in private
companies, unlimited companies,
29 Section 25 companies and alternate 15 20 25 10
directors, an individual can be a
Director maximum to how many
companies

The stock exchanges provide Trading in

Trading in Accumulation
30 facilities for _________________ commoditie Gambling
securities of wealth
to the common masses s

All are various components of Commercia Issuers of

31 Derivatives Securities
securities markets, except l Banks securities

As per The Securities Contract

Commercia Post Office
32 (Regulation) Act, 1956 Securities Bonds Derivatives
l Banks Fixed Deposit
includes all, except

Providing Providing a
Providing a Try to seek
liquidity to secondary
Stock exchanges serve all place for the best
33 holders of market to
purposes, except lawful price for the
common investors of
gambling securities
shares securities
______________ set out the code
of conduct for the corporate sector
The The The Reserve
in relation to issue, allotment and The SEBI Act,
34 Companies Companies Bank of India
transfer of securities, disclosures to 1992
Act, 1956 Act, 1963 Act, 1934
be made in public issues and non
payment of dividend
The The
__________________ provides for
Securities The Securities
regulation of transaction in The SEBI Act,
35 Contract Companies Contract
securities through control over 1992
(Regulation Act, 1956 (Regulation)
stock exchanges
) Act, 1946 Act, 1956

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 BSEs Certification for Stock Markets (BCSM) Examination

The
_______________ provides for the
Securities The The
electronic maintenance and transfer None of the
36 Contract Depository Companies
of ownership of dematerialized above
(Regulation Act, 1956 Act, 1956
securities
) Act, 1956
Section ________of the SEBI Act
provides that it shall be the duty of
the Board to protect the interests of
37 investors in securities and to 12(1) 11(1) 11 (5) 11 (2)
promote the development of, and
to regulate the securities market,
by such measures as it thinks fit
It regulates
the business
in stock
exchanges
and any
other
securities
Regulating markets and Regulating Regulating
38 Which is not an activity of SEBI Banking the working Commodity Financial
Treasuries of collective Exchanges Markets
investment
schemes,
including
mutual
funds,
registered
by it
Section ________of the SEBI Act
provides that it shall be the duty of
the Board to protect the interests of
39 investors in securities and to 12(1) 11(1) 11 (5) 11 (2)
promote the development of, and
to regulate the securities market,
by such measures as it thinks fit
It regulates
the business
in stock
exchanges
and any
other
securities
Regulating markets and Regulating Regulating
40 Which is not an activity of SEBI Banking the working Commodity Financial
Treasuries of collective Exchanges Markets
investment
schemes,
including
mutual
funds,
registered
by it

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 BSEs Certification for Stock Markets (BCSM) Examination

The cash flows associated with

________ are difficult to evaluate common preference
41 bonds debentures
due to the uncertainty and stocks shares
variability associated with them

An increase in a firm's expected All given

remain
42 growth rate would normally cause Increase Decrease options are
unchanged
the firm's required rate of return to correct

The stock is
The stock The stock
If the expected rate of return on a The stock is experiencing
43 is a bad should be
stock exceeds the required rate, a good buy supernormal
buy. sold
growth
It is
The appropriate
constant to use the Two firms The constant
growth constant with the growth model
model growth same takes into
takes into model to dividend and consideration
Which of the following statements
44 considerati estimate growth rate the
is most correct?
on the stock value must also proportional
capital even if the have the capital gains
gains growth rate same stock increased on
earned on never price a stock
a stock becomes
constant
If your
If a market If a market
uncle earns If your uncle
is strong- is weak-form
a return earns a return
form efficient this
similar to higher than
efficient this implies that
the overall the overall
Which of the following statements implies that all public
45 stock stock market,
is most correct? the returns information
market, this means
on bonds is rapidly
this means the stock
and stocks incorporated
the stock market is
should be into market
market is inefficient
identical prices
inefficient
Weak-form
market Weak-form Semistrong-
efficiency market form market
Market
implies efficiency efficiency
efficiency
that recent implies that implies that
implies that
trends in recent all private and
Which of the following statements all stocks
46 stock trends in public
is most correct? should have
prices stock prices information is
the same
would be of would be of rapidly
expected
tremendou no use in incorporated
return
s use in selecting into stock
selecting stocks prices
stocks

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 BSEs Certification for Stock Markets (BCSM) Examination

An An individual
individual who has
who has inside
Semistrong
information information
-form Strong-form
about past about a
market market
stock prices publicly
efficiency efficiency
should be traded
Which of the following statements means that means that
47 able to company
is most correct? stock stock prices
profit from should be
prices reflect all
this able to profit
reflect all public
information from this
public information
in a weak- information
information
form in a strong-
efficient form efficient
market market

The effective rate of interest differs compoundi

compounding
48 from the nominal rate of interest in ng future value volatility
frequency
that it reflects the impact of : frequency

For any interest rate and for a

given period of time, the more remains the difficult to
49 higher lower
frequently interest is compounded, same compute
the future value becomes______.

The tighter the probability

distribution of expected future
standard
50 returns, the smaller the risk of a skewness mean mode
deviation
given investment as measured by
the _____________

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 BSEs Certification for Stock Markets (BCSM) Examination

Answers:

Q. Id Answer
1 Eight
2 1875
3 Voluntary non-profit organisation
4 Ten
5 One
6 The Bombay Stock Exchange
7 Second
8 Hong Kong
9 External Commercial Borrowings
10 22
11 Ministry of commerce
12 RBI
13 DEA
14 SEBI
15 The Foreign Exchange Management Act, 1999
16 Stock Exchanges
17 prevent
18 Commodities
A contract which derives its value from the prices, or index of prices, of
19
underlying securities
20 Five years
21 recognised stock exchange
22 Money markets
23 Trust
24 Overall behavior
25 a barometer
26 All given options are correct
27 Seven days
28 Once
29 15
30 Trading in securities
31 Commercial Banks
32 Post Office Fixed Deposit
33 Providing a place for lawful gambling
34 The Companies Act, 1956
35 The Securities Contract (Regulation) Act, 1956
36 The Depository Act, 1996
37 11(1)
38 Regulating Banking Treasuries
39 11(1)
40 Regulating Banking Treasuries
41 common stocks
42 All given options are correct
43 The stock is a good buy
The constant growth model takes into consideration the capital gains
44
earned on a stock
45 If your uncle earns a return higher than the overall stock market, this

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 BSEs Certification for Stock Markets (BCSM) Examination

means the stock market is inefficient

Weak-form market efficiency implies that recent trends in stock prices
46
would be of no use in selecting stocks
Semistrong-form market efficiency means that stock prices reflect all
47
public information
48 compounding frequency
49 higher
50 standard deviation

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