Saturday, May 16, 2015

Day 30 - Questions


Day 30 - Commodity Market, Heding, etc.

( Commodity Market, Hedging, Blue Chip, Bear and Bull )


Recommended Study links - (Go through these topics before attempting MCQs)
  • No study link provided; correct options are highlighted


1.  A commodity market is a market that trades in primary/raw products, rather than manufactured products. Commodities include -
a.  Soft commodities, like wheat, cocoa, sugar, etc (agricultural products)
b.  Hard commodities, like gold, rubber, oil, etc (mined products)
c.  Both (a) and (b)
d.  None of the above

2.  Commodity Market trading can include -
a.  Physical trading
b.  Derivatives trading (futures, forwards, options, etc.)
c.  Both (a) and (b)
d.  None of the above

3.  Which of the following is/are commodity exchanges of India?
a.  Multi Commodity Exchange (MCX)
b.  National Commodity and Derivatives Exchange (NCDEX)
c.  National Multi-Commodity Exchange (NMCE)
d.  All of the above

4.  Which of the following is the regulatory body of Commodity Market / Derivative Market?
a.  Reserve Bank of India (RBI)
b.  Securities and Exchange Board of India (SEBI)
c.  Forwards Market Commission (FMC)
d.  None of the above
* FM Arun Jaitley announced merger of FMC with SEBI in his Budget 2015-16 speech


5.  Who is the current chairman of Forwards Market Commission (FMC)?
a.  Ramesh Abhishek
b.  Raghuram Rajan
c.  U.K.Sinha
d.  S.S.Mundra

6.  Hedging is the process of -
a.  increasing risk
b.  reducing risk
c.  increasing profit
d.  reducing profit

7.  Nationally recognized and financially sound companies, investment on which is considered reliable are known as -
a.  Blue Chip companies
b.  Red Chip companies
c.  Green Chip companies
d.  Black Chip companies

8.  Which of the following is/are considered as Blue chip companies of India?
a.  HDFC
b.  Reliance
c.  Infosys
d.  All of the above

9.  In market trends, Bull market is -
a.  A period of generally rising share prices in stock market
b.  A period of generally lowering share prices in stock market
c.  A period of generally stagnant share prices in stock market
d.  None of the above

10.  Which of the following is true regarding Bear and Bull in market trends?
a.  Bear means upward and Bull means downward market trends
b.  Bear means downward and Bull means upward market trends
c.  Bear means stagnant and Bull means upward market trends
d.  Bear means upward and Bull means stagnant market trends


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Friday, May 15, 2015

Day 29 - Questions


Day 29 - Derivative Market

( Derivatives - Forwards, Futures, Options, etc. )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is not a type of Derivative?
a.  Forwards
b.  Futures
c.  Debentures
d.  Options

2.  A derivative is a contract / agreement between two or more parties, whose value depends on, or associated with one or more underlying assets.
Which of the following can be an underlying asset?
a.  Shares and bonds
b.  Commodities
c.  Currencies
d.  All of the above

3.  Which of the following derivative is not a standardized, and doesn't involve Future Exchanges?
a.  Forwards
b.  Futures
c.  Both (a) and (b)
d.  None of the above

4.  Clearing House guarantee is provided in dealing with which type of Derivative?
a.  Forwards
b.  Futures
c.  Both (a) and (b)
d.  None of the above

5.  Option contract provides -
a.  Right to buy or sell an asset
b.  Obligation to buy or sell an asset
c.  Promise to buy or sell an asset
d.  None of the above





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Thursday, May 14, 2015

SBI PO 2015 Tentative Schedule


SBI has released its tentative schedule for Probationary Officers (PO) exam of 2015, as below -








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Day 28 - Questions


Day 28 - Capital Market - Part III

( Type of Shares, Indices - Sensex, Nifty, Sensex Calculation, Stock Exchanges )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is/are stock market indices of India?
a.  Sensex
b.  Nifty
c.  MCX-SX
d.  All of the above

2.  Which type of shares are issued to public?
a.  Restricted Shares
b.  Floating Shares
c.  Outstanding Shares
d.  Authorized Shares

3.  Which of the following is true regarding Outstanding Shares?
a.  Outstanding shares = Restricted Shares + Floating Shares
b.  Outstanding shares = Restricted Shares - Floating Shares
c.  Outstanding shares = Authorized Shares + Floating Shares
d.  Outstanding shares = Authorized Shares - Floating Shares

4.  To issue which type of shares, shareholder's vote is necessary?
a.  Restricted Shares
b.  Floating Shares
c.  Outstanding Shares
d.  Authorized Shares

5.  Sensex is a stock market index of -
a.  National Stock Exchange (NSE)
b.  Bombay Stock Exchange (BSE)
c.  New York Stock Exchange (NYSE)
d.  Hong Kong Stock Exchange (HKSE)

6.  What is the full form of Sensex?
a.  Sensitive Index
b.  Sentiment Index
c.  Stringent Index
d.  Standing Index

7.  Nifty is a stock market index of -
a.  National Stock Exchange (NSE)
b.  Bombay Stock Exchange (BSE)
c.  New York Stock Exchange (NYSE)
d.  Hong Kong Stock Exchange (HKSE)

8.  Which type of share is most important in calculating sensex?
a.  Restricted Share
b.  Floating Share
c.  Outstanding Share
d.  Authorized Share





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Wednesday, May 13, 2015

Day 27 - Questions


Day 27 - Capital Market - Part II

( Equity and Debt Instruments - Shares/Stocks, Bonds, Debentures, Dividends )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following is not a debt instrument?
a.  Shares
b.  Bonds
c.  Debentures
d.  Certificate of Deposits

2.  Which of the following is also known as Stock?
a.  Equity
b.  Bonds
c.  Debentures
d.  None of the above

3.  If a company distributes the profits generated to the stakeholders/shareholders, then it is known as -
a.  Stock
b.  Bonds
c.  Dividends
d.  Debentures

4.  Which of the following instrument is least risky for an investor (receiver)?
a.  Shares
b.  Bonds
c.  Both (a) and (b) are same risky
d.  None of the above

5.  Issuance of which of the following instrument may dilute the stake of a company?
a.  Shares
b.  Bonds
c.  Debentures
d.  None of the above

6.  Debentures are -
a.  Equity instrument with collateral
b.  Equity instrument without any collateral
c.  Debt instrument with collateral
d.  Debt instrument without any collateral

7.  Which of the following is an example of Debenture?
a.  Treasury Bill
b.  Certificate of Deposit
c.  Commercial Paper
d.  All of the above

8.  A company is a public sector company (PSU), if -
a.  general public holds majority stake of the company
b.  government holds majority stake of the company
c.  private entities hold majority stake of the company
d.  foreign entities hold majority stake of the company

9.  Which of the following is a type of bond (more specifically debenture), provided by banking institutions?
a.  Certificate of Deposits
b.  Commercial Papers
c.  Treasury Bills
d.  Inter-Corporate Deposits

10.  Treasury Bill is a type of -
a.  Equity Instrument
b.  Bond
c.  Debenture
d.  None of the above



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Tuesday, May 12, 2015

Day 26 - Questions


Day 26 - Capital Market - Part I

( Primary and Secondary Market, Different type of Issues - IPO, FPO, Rights Issue, Preferential Issue, etc. )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following body is the regulator of Capital Market
a.  Reserve Bank of India (RBI)
b.  Securities and Exchange Board of India (SEBI)
c.  Telecom Regulatory Authority of India (TRAI)
d.  NABARD

2.  Which of the following is/are instrument(s) of Capital Market?
a.  Equity instruments - stocks/shares, dividends etc.
b.  Debt instruments - bonds, debentures, etc.
c.  Both (a) and (b)
d.  None of the above

3.  If an investor is directly buying shares or bonds from a company, then he is dealing in -
a.  Primary Market
b.  Secondary Market
c.  Both (a) and (b)
d.  None of the above

4.  If an investor is buying / selling shares or bonds from other investors, rather than the issuing company, then he is dealing in -
a.  Primary Market
b.  Secondary Market
c.  Both (a) and (b)
d.  None of the above

5.  What is the full form of IPO?
a.  Initial Private Offering
b.  Initial Partnership Offering
c.  Initial Public Offering 
d.  Interest Private offering

6.  When a private company first time issues shares to the public, then it is known as -
a.  IPO 
b.  FPO
c.  Rights Issue
d.  Preferential Issue

7.  Follow-On Public Offering (FPO) by a company is done after -
a.  IPO 
b.  Rights Issue
c.  Preferential Issue
d.  None of the above

8.  FPO deals in the -
a.  Primary Market 
b.  Secondary Market 
c.  Money Market
d.  None of the above

9.  Rights Issue is offered to -
a.  general public
b.  existing shareholders 
c.  CEO of the company
d.  other companies

10.  Preferential Issue is offered to -
a.  selected people who already has a stake in the company
b.  selected people who doesn't have a stake in the company 
c.  selected people who may or may not have stake in the company
d.  none of the above

11.  Which of the following issue doesn't dilute the overall percentage stake of the company?
a.  IPO
b.  FPO
c.  Rights Issue 
d.  Preferential Issue

12.  A company is listed for the first time on a stock exchange, after -
a.  IPO 
b.  FPO
c.  Rights Issue
d.  Preferential Issue

13.  Stock Exchanges generally work in - 
a.  Primary Market
b.  Secondary Market 
c.  Money Market
d.  None of the above

14.  Which of the following is not a Stock Exchange?
a.  NASDAQ
b.  BSE and NSE
c.  Deutsche Bourse
d.  All are stock exchanges

15.  Which of the following is a stock exchange of India?
a.  NSE
b.  NYSE
c.  HKSE
d.  None of the above



Note - Do not refer any source while answering the questions. You can comment in the Comment Section below.



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Monday, May 11, 2015

Day 25 - Questions


Day 25 - Forex, FERA & FEMA

( Forex, FERA, FEMA )


Recommended Study links - (Go through these topics before attempting MCQs)

1.  Foreign exchange (forex) of a country is generally maintained by -
a.  commercial banks of that country
b.  central government of that country
c.  central bank of that country
d.  none of the above

2.  Forex is important because -
a.  It influences the foreign exchange rate of currency
b.  It acts as a guarantee for external debts
c.  Both (a) and (b)
d.  None of the above

3.  Which of the following is a type of forex -
a.  Foreign Currency Assets
b.  Gold reserves
c.  SDR
d.  All of the above

4.  What is the full form of SDR?
a.  Special Domination Rights
b.  Special Drawing Rights
c.  Special Determination Rights
d.  Special Detection Rights

5.  Which of the following is also known as Reserve Tranche Position (RTP)?
a.  Foreign Currency Assets
b.  Gold Reserves
c.  SDR
d.  Reserve position in IMF

6.  Which of the following is/are true regarding FERA, 1973 -
a.  Law violators were treated as criminal offenders
b.  Enforcement Directorate had the power to arrest any person of suspicion
c.  It aimed at minimizing dealings in forex and foreign securities
d.  All of the above

7.  What is the full form of FEMA?
a.  Foreign Exchange Maximization Act
b.  Foreign Exchange Management Act
c.  Foreign Exchange Minimization Act
d.  Foreign Exchange Mediation Act

8.  FEMA was introduced in -
a.  1990
b.  1989
c.  1999
d.  1991

9.  In FEMA, violation of the act is a civil offense, and is -
a.  compoundable
b.  non-compoundable
c.  both (a) and (b)
d.  none of the above

10.  What is the full form of forex?
a.  Foreign Exemption
b.  Foreign Exchange
c.  Foreign Expert
d.  Foreign Expansion




Note - Do not refer any source while answering the questions. You can comment in the Comment Section below.



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