Sharon Thomas

This blog was started in loving memory of Christ Kengeri Campus,Bangalore and now dedicated to all my students ...

Tuesday, November 16, 2010

NCFM CAPITAL MARKET PART 2

Q:31 The stamp duty on transfer of demat securities has been waived. True or False? [ 1 Mark ]
(a) True
(b) False


Q:32 No person shall be admitted as trading member of a recognized stock exchange if he has been adjudged bankrupt or a receiver order in bankruptcy has been made against him or he has been proved to be insolvent even though he has obtained his final discharge. True or False? [ 1 Mark]
(a) True
(b) False


Q:33 The stop loss orders are prioritised in the stop loss book with the 
__________________ [ 1 Mark ]
(a) most likely order to trigger first and the least likely to trigger last.
(b) least likely order to trigger first and the most likely to trigger last.
(c) time- price priority algorithm
(d) none of the above


Q:34 The orders with ______ attribute disclose only a part of the total order quantity to the market. [ 1 Mark ]
(a) Immediate or Cancel (IOC)
(b) Stop Loss (SL)
(c) Disclosed Quantity (DQ)
(d) none of the above


Q:35 Two buy orders enter into the system and are unmatched :
1) 200 shares @ Rs. 72.75 at time 10:30 a.m.
2) 300 shares @ Rs. 72.75 at time 10:31 a.m.
Which order will get a priority for getting executed. [ 1 Mark ]
(a) Order no. 1.
(b) Order no. 2
(c) both will have equal priority
(d) none


Q:36 Statement 1 : An active buy order matches with the best passive sell order if the price of the passive sell order is less than or equal to the price of the active buy order. 
Statement 2 : An passive buy order matches with the best active sell order if the price of the passive buy order is less than or equal to the price of the active sell order.
Which of the above statement s is True?
[ 2 Marks ]
(a) Statement 2
(b) Statement 1
(c) Both statements are true
(d) Both statements are false


Q:37 The pre -set Market price protection percentage is by default set to _____ of the LTP. [ 2 Marks ]
(a) 10%
(b) 2%
(c) 3%
(d) 5%


Q:38 A user can simultaneously view a regular inquiry (e.g. MBP) and the Snap Quote display on the trading screen. True or False? [ 2 Marks ]
(a) True
(b) False


Q:39 Fixed Deposit Receipts (FDRs) issued by approved banks can be submitted as a(n) ___________ to NSCCL by trading members. [ 2 Marks ]
(a) surety.
(b) indemnity
(c) warranty
(d) additional base capital


Q:40 A trading member on the NSE, has set the branch order value unlimited for his Chennai branch and Rs. 800 lakh for Kolkata branch. Chennai branch has two users 'X' and 'Y' with user order limits of Rs. 550 lakh and Rs. 500 lakh respectively. Kolkata branch has one user 'Z' with user order value limit of Rs. 550 lakh. The member applies for a new user at Kolkata. What is the maximum user order value that can be set for the new user? [ 3 Marks ]
(a) Not more than Rs. 950 lakh
(b) Zero
(c) unlimited
(d) Rs. 250 lakh


Q:41 Upfront margin rates applicable for all securities in Trade for Trade - segment
(TT) is ______. [ 2 Marks ]
(a) 50%
(b) 100 %
(c) 200%
(d) 150%


Q:42 Penalties are charged to members for _____________ [ 3 Marks ]
(a) failure to fulfil their funds obligations
(b) failure to fulfil their securities deliverable obligations
(c) Margin Shortages
(d) all of the above


Q:43 Rahul is supposed to receive Rs. 1,00,000 from Chandra after 3 years. If the interest rate is 8%, what is the present value of the amount due from Chandra? [ 2 Marks ]
(a) 71,686.34
(b) 79,383.22
(c) 81,232.25
(d) 91,444.9


Q:44 Institutional transactions are identified by the use of the ________ at the time
of order entry. [2 Marks ]
(a) user code
(b) user id
(c) participant code
(d) client id


Q:45 Two sell orders enter into the system and are unmatched :
1) 200 shares @ Rs. 72.75 at time 10:30 a.m.
2) 300 shares @ Rs. 72.70 at time 10:31 a.m.
Which order will get a priority for getting executed. [ 1 Mark ]
(a) Order no. 1.
(b) Order no. 2
(c) both will have equal priority
(d) none


Q:46 In NSCCL, a _______ is a clearing member but not a trading member.
[ 2 Marks ]
(a) self clearing member
(b) participant
(c) broker
(d) custodian


Q:47 What does ‘AUI’ indicate as a message code in 'Full Message window' in the
NEAT system? [ 1 Mark ]
(a) Auction Initiation Messages
(b) Auction User Interface messages
(c) All messages related to user interface
(d) All messages related to Auctions


Q:48 Two buy orders enter into the system and are unmatched :
1) 200 shares @ Rs. 72.75 at time 10:30 a.m.
2) 300 shares @ Rs. 72.80 at time 10:31 a.m.
Which order will get a priority for getting executed. [ 1 Mark ]
(a) Order no. 1.
(b) Order no. 2
(c) both will have equal priority
(d) none


Q:49 NSCCL becomes the legal counterparty to the net settlement obligations of every member. This principle is called ______. [ 1 Mark ]
(a) ‘notation’
(b) ‘settlement fullfillment’
(c) ‘novation'
(d) ‘obligation guarantee’


Q:50 The trading members can participate in the Exchange initiated auctions by entering orders as a ______. [ 2 Marks ]
(a) participant
(b) initiator
(c) solicitor
(d) none of the above


Q:51 One of the Custodial Trade Reports is the ___________ [ 1 Mark ]
(a) Client Obligation Report
(b) Custodial Trade Pending Confirmation
(c) Clearing Member Report
(d) None of the above


Q:52 If a client buys shares worth Rs. 1, 00,000 and sells shares worth Rs. 1,00,000 through a stock-broker, then the maximum brokerage payable is _______.
[ 3 Marks ]
(a) Rs. 4,000
(b) Rs. 5,000
(c) Rs. 2,000
(d) Rs. 6,000


Q:53 Which of the following do not issue securities in the primary market?
[ 1 Mark ]
(a) FIIs
(b) State Goverments
(c) Companies
(d) None of the above


Q:54 Auction Square Up Debit Statement
: This report gives details of unauctioned deliveries that are squared- up by the Exchange. True or False? [ 2 Marks ]
(a) True
(b) False


Q:55 A trading member shall be deemed guilty of un- businesslike conduct for any of the following or similar acts or omissions namely: [ 2 Marks ]
(a) if it transacts its own business or the business of its constituent in fictitious names
(b) If it makes a fictitious transaction
(c) circulates or causes to be circulated, any rumours;
(d) all of the above


Q:56 Mr. Desai has decided to deposit Rs. 200,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 8% how much would his deposit grow upto in 2 years? [ 2 Marks ]
(a) 434,141.15
(b) 413,502.54
(c) 485, 123.70
(d) 433,820.81


Q:57 Mr. Shah has decided to deposit Rs. 300,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 12%
how much would his deposit grow upto in 3 years? [ 2 Marks ]
(a) 1,234,146.15
(b) 1,113,502.54
(c) 1,085,123.70
(d) 1,083,467.63


Q:58 What does 'P' indicate as a status in the 'Auction Inquiry' screen in the NEAT system? [ 1 Mark ]
(a) Auction is pending and yet to begin.
(b) Auction is deleted.
(c) There is no such status indicator as 'P' in the Auction Inquiry screen.
(d) Auction is over.


Q:59 On Line Backup is a facility that the user can invoke to take a backup of all order and trade related information for the user. True or False. [ 2 Marks ]
(a) True
(b) False


Q:60 Security sigma means the _______ of the security computed as at the end of the
previous trading day. [ 2 Marks ]
(a) mean
(b) volatility
(c) impact cost
(d) none of the above


Answers :
30 (a) 50 (c)
31 (a) 51 (b)
32 (a) 52 (b)
33 (a) 53 (a)
34 (c) 54 (a)
35 (a) 55 (d)
36 (b) 56 (d)
37 (d) 57 (d)
38 (a) 58 (a)
39 (d) 59 (a)
40 (d) 60 (b)
41 (b)
42 (d)
43 (b)
44 (c)
45 (b)
46 (d)
47 (a)
48 (b)
49 (c)

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