Monday, May 18, 2015

Day 31 - Questions

Day 31 - Demat Account, ASBA

( Demat Account, ASBA )

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1.  To invest in shares and securities in electronic form, which type of account is needed?
a.  Savings Account
b.  Current Account
c.  Demat Account
d.  Recurring Account

2.  The process of converting securities from digital form to physical form is -
a.  Dematerialization
b.  Rematerialization
c.  Conversion
d.  None of the above

3.  Depository Participants (DP) act as intermediaries between -
a.  Depository and Investors
b.  Depository and Government
c.  Investors and Stock Exchange
d.  Investors and Issuing Company

4.  For any investor / client, to avail the services provided by the Depository, has to open Depository Account, also known as -
a.  Savings Account
b.  Current Account
c.  Demat Account
d.  Recurring Account

5.  What is the full form of ASBA?
a.  Allotment Supported by Blocked Amount
b.  Application Supported by Blocked Amount
c.  Assessment Supported by Blocked Amount
d.  Allotment Supplied by Blocked Amount

6.  Which of the following is/are true regarding ASBA?
a.  Investors need not pay the entire bidding money before allotment
b.  If shares are allotted, only then the blocked amount is debited from the investors accounts; otherwise blocked amount is freed / unblocked
c.  ASBA is an application specified to the bank of the investor, asking to block the specified amount for bidding of shares.
d.  All are true

7.  Which of the following is/are true regarding ASBA?
a.  The blocked amount will continue to earn interest, during the application processing period, if held in an interest bearing account (e.g., savings account)
b.  Bank marks a lien on the blocked amount, and removes immediately after the allotment process is completed
c.  ASBA blocks bidding amount in any type of account, like Savings Account, Current Account, etc. If share is allotted, then the amount is debited from those accounts, and shares are credited to the Demat account of the investor.
d.  All are true

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