Model Test Paper For BCSM

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1. Indian Securities market is one among top______ securities markets of the world.
Ans Eight

2. The Bombay Stock Exchange was established in ______
Ans 1875

3. Index Futures trading commenced at BSE in the year ____
Ans 2000

4. Under Section 31 of The Companies Act, 1956, any company could be of the form except _______
Ans Trust

5. The Bombay Stock Exchange Ltd. (BSE) in 1986 came out with a stock index ______
Ans Sensex

6. Who cannot be a member?
Ans A Partnership firm

7. Insider trading if reported can be investigated by ______
Ans SEBI

8. How membership of BSE can be obtained:
(i) By new membership
(ii) By nomination
Ans Either (i) or (ii)

9. An option that has intrinsic value is
Ans in-the-money

10. The base year of SENSEX is _________ and the base value is _____
Ans 1978-79 and 100

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11. Index calculation frequency for BSE Sensex is _____
Ans Real Time

12. A person who combines derivatives with a business risk is a __________
Ans Hedger

13. The genesis year for BSE On-Line Trading System was ______
Ans 1994

14. The Bombay Stock Exchange was established as a _______
Ans Voluntary non-profit organization

15. As of December 31, 2009 the Bombay Stock Exchange was among the top_____ of global exchanges in terms of market capitalization of its listed companies
Ans Ten

16. Currently the tick size in the scrip listed on the exchange is ______
Ans 5 paisa

17. The 'Z' group was introduced by BSE in ______
Ans Jul-99

18. Present and prospective shareholders are mainly concerned with a firm's
Ans risk and return

19. The Securities and Exchange Board of India was established in ________
Ans 1988

20. A security giving you the right to sell is a ______
Ans Put option

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21. Which is not a part of Securities market
Ans Commodity Markets & Real Estate markets

22. Majority of the powers granted under SCRA are exercisable by______
Ans DEA

23. The Companies Act, 1956 does not deal with _____
Ans Money market

24. Arbitration at BSE is a ____
Ans Quasi judicial mechanism

25. All trading members are required to keep a Base Minimum Capital with the stock exchange is _____
Ans 10 Lakh

26. Ratios provide a ______ measure of a company's performance and condition
Ans Relative

27. The actual number of scrips listed in BSE PSU Index is
Ans All PSU stocks in BSE-500 index

28. Which of the following statements is most correct?
Ans The SML relates required returns to firms' market risk

29. The _____ measures the activity, or liquidity, of a firm's inventory
Ans inventory turnover

30. In India, BSE pioneered the concept of free-float by launching ________ in July 2001
Ans BSE TECk

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31. SENSEX became the __________ in India to be based on the globally accepted Free-float Methodology
Ans Third Index

32. The market value of which assets can be found by determining future cash flows
and then discounting them back to the present
Ans Financial Assets

33. Time value of money is based on the belief that a rupee that will be received at some future date is worth ____ a rupee today
Ans Less

34. Who are the participants in the derivatives market?
Ans All given options are correct

35. The _____ is useful in evaluating credit and collection policies
Ans Average collection period

36. Variations in accounting methods among firms __________ financial comparisons between firms
Ans can invalidate

37. The first market to trade financial futures was the ____
Ans CME

38. The processing fee for conversion of membership is Rs. ______
Ans Zero

39. Amalgamation / merger (A/M) of two corporate members of the exchange or A&M of a corporate member with non-member company or demerger is governed by
Ans rule 257 B

40. BSE contributed what amount towards Broker Contingency Fund?
Ans Rs 9.51 Crores

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41. The Value at Risk (VaR) Margin is a margin intended to cover ___________ that can be encountered on 99% of the days (99% Value at Risk)
Ans The largest loss

42. An investor wants to keep his portfolio return similar to the return from Sensex. He can choose
Ans A stock with beta of 1.0

43. ______ is the chance of loss or the variability of returns associated with a given asset
Ans Risk

44. The Auction Pay-in and Pay-out takes place on
Ans T+3 day

45. Examples of events that increase risk aversion include
Ans All given options are correct

46. The Brokers’ Capital fund fee for conversion of membership is Rs.___
Ans 2.5 Lakhs

47. BSE-500 index represents nearly _____ of the total market capitalization on BSE
Ans 93%

48. The _____ value interest factor is the future value of Rs 1 per period compounded at i percent for n periods
Ans Future

49. The Give-up entry is also known as ____
Ans 6A-7A entry

50. If the equity multiplier is 2.0, the debt ratio must be ___
Ans 0.5