CBSE | DEPARTMENT OF SKILL EDUCATION

INTRODUCTION TO FINANCIAL MARKET (SUBJECT CODE 405)

CLASS X (SESSION 2021-2022)
BLUE-PRINT FOR SAMPLE QUESTION PAPER FOR TERM -1
Max. Time Allowed: Max. Marks: 25

PART A - EMPLOYABILITY SKILLS (05 MARKS)

NO. OF QUESTIONS
UNIT NO. NAME OF THE UNIT
(1 MARK EACH)
1 Communication Skills-II 2
2 Self-Management Skills-II 2
3 Information and Communication Technology Skills-II 2
TOTAL QUESTIONS 6 Questions
NO. OF QUESTIONS TO BE ANSWERED Any 5 Questions
TOTAL MARKS 1 x 5 = 5 marks

PART B - SUBJECT SPECIFIC SKILLS (20 MARKS):

UNIT NO. OF QUESTIONS

NAME OF THE UNIT
NO. (1 MARK EACH)
Investment Basics
1 4
Securities
2 3
Primary Market
3 8
Secondary Market
4 8
Derivatives
5 4

TOTAL QUESTIONS 27 Questions

NO. OF QUESTIONS TO BE ANSWERED 20 Questions

TOTAL MARKS 1 x 20 = 20 MARKS

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 CBSE | DEPARTMENT OF SKILL EDUCATION
INTRODUCTION TO FINANCIAL MARKET (SUBJECT CODE 405)
CLASS X (SESSION 2021-2022)
SAMPLE QUESTION PAPER FOR TERM -1
Max. Time Allowed: Max. Marks: 25

General Instructions:
1. Please read the instructions carefully
2. This Question Paper is divided into 03 sections, viz., Section A, Section B and Section C.
3. Section A is of 05 marks and has 06 questions on Employability Skills.
4. Section B is of 15 marks and has 20 questions on Subject specific Skills.
5. Section C is of 05 marks and has 07 competency-based questions.
6. Do as per the instructions given in the respective sections.
7. Marks allotted are mentioned against each section/question.
8. All questions must be attempted in the correct order

SECTION A

Answer any 5 questions out of the given 6 questions on Employability Skills (1 x 5 = 5 marks)

1. Which of the following is not a method of communication? 1

a. Face-to-face informal communication
b. e-mail
c. social network
d. Moral support
2. Which is disadvantage of Verbal Communication? 1
a. It is an easy mode of communication in which you can exchange ideas
b. To keep changing your interaction as per the other person’s response
c. Quick response
d. Difficult to understand if the right words are not used
3. When do you not feel stress? 1
a. you are too close to the exams but feel unprepared
b. you are worried about what people would think of you if you don’t dress well
c. you are worried about what people would think of you if you cannot speak
confidently
d. You learnt to fight with the fear.

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 4. Time management is the thinking skill that 1
a. Create stress
b. Create Anxiety
c. Helps you to submit homework and assignments on time.
d. Create impatient
5. Which of the following functions is not performed using a mouse? 1
a. Turn on
b. Hover
c. Right click
d. Drag and Drop
6. What keys do you use to cut the data you selected? 1
a. Ctrl+x
b. Ctrl+c
c. Ctrl+z
d. Ctrl+y

SECTION B

Answer any 15 questions out of the given 20 questions (1 x 15 = 15 marks)

7. Which factor does not determine the interest rates? 1

a. Level of Government borrowings
b. Supply of money
c. Inflation rate
d. Financial Literacy

8. Name the Mutual Fund unit which determined at the end of each trading session? 1
a. Net Asset Value
b. Net Asset Valuation
c. Netting of the Asset Valuation
d. Net Asset Value
9. Which Derivative products initially emerged against fluctuations in commodity 1
prices?
a. Hedging
b. Speculation
c. Arbitrage
d. Jobbing
10. Which of the following product is not tradable in Indian securities market as per 1
SC(R) A956?
a. Shares
b. bonds
c. debentures
d. crypto currency

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 11. Who does not regulate the securities market? 1
a. Department of Economic Affairs
b. Department of Company Affairs
c. Department of Commercial Affairs
d. Securities and Exchange Board of India
12. What does issue on Premium mean in the Primary Market? 1
a. On Face Value
b. Below the face value
c. Above the face value
d. Without face value
13. Name the issue of shares or of convertible securities by listed companies to a 1
select group of persons under Section 81 of the Companies Act, 1956.
a. Rights Issue
b. A Preferential issue
c. Initial Public Offering
d. A follow on public offering
14. What is Cut-Off Price? 1
a. This issue price is called “Cut-Off Price”
b. This below issue price is called “Cut-Off Price”
c. This above issue price is called “Cut-Off Price”
d. This negligible issue price is called “Cut-Off Price”
15. A shorter version of the Prospectus and contains all the salient features of a 1
Prospectus. It accompanies the application form of public issues.
a. Red–Herring Prospectus
b. Abridged Prospectus
c. Red Prospectus
d. New Version of Prospectus
16. Book Building through the NSE system offers several advantages except this. 1
a. The NSE system offers a nationwide bidding facility in securities
b. It provide a fair, efficient & transparent method for collecting bids using the
latest electronic trading systems
c. Costs involved in the issue are far less than those in a normal IP.
d. There is guaranteed allotment if we put bid through NSE platform.
17. ‘Draft Offer document’ means the offer document in the following stage. 1
a. Secondary stage
b. Existed stage
c. Relevant stage
d. Draft stage
18. What is meant by Secondary market? 1
a. Market for newly issue securities
b. Market for existed securities
c. Market for unlisted securities
d. Market of delisted securities

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 19. NSE is the first exchange in the world to use satellite communication technology 1
for trading. Name Its trading system.
a. SBTS (Screen based trading system )
b. NEAT (National Exchange for automated Trading )
c. BOLT (BSE Online Trading )
d. ODIN (Open Dealer Integrated Network)
20. What is a confirmation bill of trades done on a particular day on behalf of the client 1
by a trading member?
a. Purchase / Sale Note
b. Contract Note
c. Market price Bill
d. Cash memo
21. Which of the following is not a type of shares? 1
a. Right issue
b. Bonus
c. Bonds
d. Preference shares
22. Which of the following is not a type of bonds? 1
a. Zero Coupon bonds
b. Treasury Bills
c. Convertible bonds
d. Preference Shares
23. How do you define the Companies whose potential for growth in sales and 1
earnings are excellent, are growing faster than other companies in the market.
a. Value Stocks
b. Growth Stocks
c. Manipulated Stocks
d. Undervalue stocks
24. Which derivative product the buyer having a right but obligation to buy the 1
underlying?
a. Call option
b. Put option
c. Future
d. Forward
25. Name the margin payable upfront in option contract. 1
a. Initial margin
b. MTM
c. Option Premium
d. Optional Margin
26. Which contract is customized and tradable in two known parties? 1
a. Future
b. Forward
c. Option
d. Optional

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 SECTION C
(COMPETENCY BASED QUESTIONS)

Answer any 5 questions out of the given 7 questions (1 x 5 = 5 marks)

Read the passage carefully and answer the questions (27-33):

Mr. Rajan is an informed investor. He reads financial dailies to get updated and
plan the portfolio accordingly. He follows the golden rules of investment and
creates good Financial Corpus. He always buy defined securities. He trades through
the registered market participant (Trading Member). He is comfortable with NEAT
terminal and put bids on Market/Limit orders. The most important lesson he learnt
from his experiences that always diversified his portfolio in a good manner which
could be highly liquid. He not only trades in cash market but in derivatives also. He
enters in derivatives by paying premium in option contract and initial margin in
future contract. Future margin is releasable therefore he adjusts his MTM (Mark to
Market) position accordingly. He believes that Overall stock market trading is a
technique which requires knowledge, patient and comprehensive risk
management.
27. Which of the following is not a rule to attain for smart investment? 1
a. Invest early
a. Invest regularly
b. Invest for long term and not short term
c. Invest for Short term and not Long term
28. Do you know these following contracts are defined under SC(R) Act, 1956? 1
a. Yes, Shares
b. Yes, bonds
c. Yes, debentures
d. No, crypto currency
29. Who is not the participant in the Securities Market? 1
a. Issuers of securities
b. Intermediaries
c. Investors
d. Lunatics
30. Which trading terminal you would like to choose to trade in NSE? 1
a. NEAT
b. SBTS
c. OECLOB
d. TWS
31. Which bid price you would like to choose to hit the order? 1
a. Highest Price
b. Moderate Price
c. Low Price
d. Stop Loss Price

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 32. ‘Don’t put all the egg in a one basket” if u believe this, then what to do to 1
manage the risk?
a. Buy IT sector
b. Buy Pharma sector
c. Buy Real Sector
d. Diversification of Financial Assets
33. If you trade in Derivative market, which Option Margin is not releasable to you? 1

a. Initial Margin
b. MTM Margin
c. Option Premium
d. Daily Margin

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