India's No.1 Practice Test Bank ¥ PASS. for clearing NSE-NISM-BSE exams PASS4SURE PRACTICE QUESTIONS SET NO. 3 Test Duration: - Tine Let + Who can claim the tax benefits in case of joint holding in a Mutual Fund? Only the first holder All the holders equally The first holder in case of equity mutual funds and all holders equally in case of debt mutual funds ‘The tax benefit wil accrue as per the proportion the investors mention in the application form Y- CORRECT ANSWER. Explanation: “The tax benefits from the investments and any t2x libilty on the Income accrue to the first holder only.Who is considered as a Ward" under the Guardians and Wards Act? All minors are considered as ‘Wards’ ‘Aminor who has a guardian for person and/or property ‘Aminor who has a court-appointed guardian Any person who has a court appointed guardian ‘X%_WRONG ANSWER (CORRECT ANSWER: Aminor who has a guardian for person andlor property Explanation: {As per the Guardian and Wards Act - "Ward" means a minor for whose person or property or both there is a guardian.cs ‘Which ofthese concerns of eta nvestors with real estate investments primarily adresse by REITS? Inocessbity fo commerce estate Lage ind conminent Low rental yest Allott above X wnoncansner ‘CORRECT ANSWER: ‘lofthe above Explanation: 4 Realestate investment trusts ("RTs allow invita to invest in rgescae, income roduing el estat. A REITs acompany that om ad typically opus income-procuing res este or elated assets, These may nue oMeebuldmgs,sheping mals, parents, hte, resorts, e-store felis, wareroures, nd morgaes of ans, Rot vstrs can vests amounts in REIT and thus eo he tus avalabe rom comercial popes.as \Which ofthese is TRUE with respect to liquidity in a solution-oriented mutual fund scheme? ‘Solution oriented mutual fund schemes are close-end funds and can be traded on a stock exchange ‘Solution oriented mutual fund schemes are open-end funds and can be easily sod and purchased ‘Solution-riented mutual fund schemes can only be purchased during @ NFO and are locked in forthe ene term ‘Solution oriented mutual fund schemes have a lackin of § years 1 CORRECT ANSWER Explanation: ‘SEBI nas categorised the open-end solution oriented schemes as follows: + Retrement Fund are senemes oriented towards sing for retrement. Schemes wil ave a locksin fora least 6 years cr dl retirement age whichever I eri. + Chilaren’s Fund are senemes orented towards saving fer cilren's needs. Schemes will have lock-in ot 6 years ol the age of majorty wnienever seater‘Nr. Murthy isa subscriber inthe National Pension System. Ihe has a grievance, he can raise it with RBI SEB! IROAL Cantal Record Keeping Agancies 2X WRONG ANSWER CORRECT ANSWER: Central Record Keeping Agencies. Explanation: a [Asubsrber tothe National Person System (NPS) can alse 2 revance win te Cental Recordkeping Agancy (CRA) on hl web [NSDL e-Governance inestructure Limite i the Cental Recordkeeping Agency (ORA) appointed by Pension Funé Regulatory and Development Authonty [PFRDA) forthe Nations Pension System (NP)‘On what basis does the Bailar, Biehl & Keiser (BB&K) model cessity human beings? COntha basis ofevel of conidenoe and motnod a action Cn the basis oflevel of confkenoe and method of ematon COnthe bass ofnbuit mpulsweness COnthe bass of mathe of action and fear 1 CORRECT ANSIER A Explanation: -Allinvestors have ungue personalities, And though tis el to eatgorizthe personales because thy al are human beings an they ar so deren; some basi lsscation ‘sysar nas ele ter years orestreh, Balsa le Keser (BBN elsssnes investor persoralites by fecusng onto aspects: he lea of conicence and te metodo ction ‘The st cals wth now te ivestoraproacnes ie nts career, wah of money. The second element cals wih weiner investors care, methodical ng aaa in the approach towards,Money markets are primarily used for ‘Very lang term funding needs Short term funding needs Immediate cash funding needs Retail funding needs WRONG ANSWER CORRECT ANSWER: Short term funding needs Explanation: ‘The financial market comprises money markets that deal with the short-term lending and borrowing of funds. (The securities or capital markets enable longer term transfer of funds using debt and equity instruments)a is not considered a prt of Rebalancing cost. PulS os payable ‘Stamp duty levied Securites Transaction Tax STT) Brokerage cost 4 CORRECT ANSWER, 4 Explanation: There at to types of cost in rbalaneng tansacon cost ard tax cost. Tansaction cost isthe tne and money costs lie research cost broerage et, for buying and seting stein, Tx css ieude the Secures ansacton fx, Stamp ye Pus es tenet pot ot Replacing Costos. (Once the New Fund Offer (NFO) closes, the open-ended mutul funds are, : ‘Avaiabe for purchase and sae only on te sock exchanges Not aval for any further purchases Avaiebe for purchase on forthe exsng investors Avaiabe for purchase for both - new and existing investors X won answer CORRECT ANSWER: ‘Availabe for purchase for both -new and existing investors Explanation: a ‘once te seneme opens for transactions Investor enstng and new) ean by uso te scheme cr reer investment or conduct cher Mncialanénennanci ansacvons wy ‘en,"2 Covid pandemic had affected the stock markets in big way. As a fund manager, what advise wll you give to investors who are Adventurers or who are inthe ‘Accumulation phase? Tha imestors shoul iqadated their holdings and remain n cash dting ths cficul phase ‘Tha investors shoud go for rebalancing and ad more undervalued secures The investors should go for rebalancing and ad more debt inter portoios The investors should go fot ebalancing and keep debt and equty in equal weights 2 WRONG ANSWER ‘CORRECT ANSWER: ‘The investors should go for rebalancing and add more undervalued securities Explanation: a Inthe aecuratin or sry creer phase, tenet worth ypicaly smal eatv te bites. nestmens ar femer ang typical non-iversife, But because the incivicual has avery "eng tne nonzon an 3 potently grontng steam come, se can uncertske more higher, high-k eapial gat-orete nvestnents. Adventures are people who are wiling to pital one major bet an "go for because they have confidence, Tey ar wlng to tke risks. ‘Thetfore when COVD pandeml stuck an he sock markets fel by 2 huge extent, ong tm investors and adventurer uy th underilued equ nhigherproporons.an, ‘ash transactions are above ___ then a record of such transaction has to be maintained under the Prevention of Money Laundering Act (PMLA), Rs. Slaths As. 1Dlakhs Rs Z5lakns Rs. Saks X wwonsansner ‘CORRECT ANSWER: Re. 10lakhs Explanation: a “Te rules under the PULA requ the ents to mansin 3 record of wansactons: lash tansactons of value reat han Rs 10 nk or equivalent foegncurency series cash ‘rasacons that ave ken pce win a month (etegraly canneced teacher ar tala va of more than Rs 10k,‘97% In what form are the holdings of an investor in a Alternative Investment Fund (AIF) denoted? Shares Units Bonds ‘Any of the above as per the type of AIF X_WRONG ANSWER CORRECT ANSWER: Units Explanation: Alternative Investment Fund raise funds from any Investor whether Indian, foreign or non-resident indians by way of Issue of units.ons. ‘A popular travel related website is giving its customers a special ote. It says it will match the lowest hotel reservation price the client can get cn any other website. Which strategy isthe website following? ‘Defensive competitive stratogy COfienswvo compative sratogy Cast leadership strategy Difarentaton sratogy X WRONG aNswER ‘CORRECT ANSWER: Cost leadership strategy Explanation: Marketing guru mcnael Porter suggests two major strategies: Cost Leadership and Dilerention. (Cost Leadership: under this stratgy the rm seeks tobe the lowcost producer andhence the cost eager ints inausty.14 Which body creates sectoral indices for banking, Information technology, pharma, fast-moving consumer goods etc. to enable tracking specific sectors? Ministy of Finance ‘Stock Exchanges ‘Sects and Exchange Board of India - SEB| Minty of Corpora Aas 2X WRONG ASHER ‘CORRECT ANSWER: Stock Exchanges Explanation: 4 ‘The sector ieiees for banking, Infomation teenelogy, pharma, astmevng consumer goods and Such oter seers are erate bythe exchanges to enable techn of specine sectors,275 Calculate the Post-Tax return from the following data : Return from investment @ 14%. Applicable Tax rate @ 18%. 13.20% 12.88% 14% 11.48% %_WRONG ANSWER. CORRECT ANSWE! 1.48% Explanation: Post-tax return = Pre-Tax Return x (1 tax rate) = 14% (1 18%) 0.14 (1 -0.18) 014x082 0.1148 ‘To Convert in percentage, multiply by 100 = 0.1148 x 100 = 11.48%‘°** Which Aet/ Regulation empowers SEBI to impose penalties against securities market intermediaries ? SEBIAct Securities Contact Regulation Ack Prevention of audulent and unr Wade practices Regulations Stock Exchange Reguation Act CORRECT ANSWER a Explanation: ‘SEB Act empowers SEB to inpocepenales an iit auction precesing agin intimacies who default on grounds such 2 fave to fui inormtion, eum ee. ot ‘ure ay sy peraon enter no agrerant nn eens etou. ‘Which of thse is considered asa fraudulent act as per the SEB! Prevention of Fraudulent and Unfair Trae Practices Regulations ? wil misrepresentaon ofthe truth or concealment of material fact inorder that another person may act is deiment ‘An active concgalment of ac by @ person having krowtedge or bel ofthe fact ‘Asuogestin as oft whch nol tue, by one who doesnot beheveo be tue Al ofthe above X mons answer CORRECT ANSWER: ‘ofthe above Explanation: 4 Frau fied 38 neusve of any at expression, omission of conesinant cami t induce a-cne parson oie agent on Secures. Thre may er may nate wrong gain or svedanc of any loss. However ats incensequetalin determing rau hasbeen corm Tete incu — 2) Au msepresertation ofthe thor conesinet of matali adr that another prson may ae ois dement. 3) A suggestion sto aft whch rte, by one whe does note tobe €) An eve concert of fat bya person faving knowin or bea of eat 6) promise ede witout ny inten ot patmming it «) representation, wheter tue orfals, made ina reckess and careless manner1 The fixed costs pald ina Portfolio Management Scheme depends upon the ‘Amount invested inthe scheme SEBI rules Return agreed upon in edvance Prof sharing egreed upon in advance X_ WRONG ANSWER CORRECT ANSWER: ‘Amount invested in the scheme Explanation: “Toe fxed costs the amount that has tobe pad bythe investor tothe PMS fund manager no matter whats the outcome of the entire investment. This is usually a fixed percentage of the amount thats actully being managed or invested into the PMS. It could be something lke 1 per cent ofthe amount invested4° In the New Fund Offer (NFO) of a Mutual Fund, the units are offered at Net Asset Value (NAV) Market Value Face Value None of the above ‘%_WRONG ANSWER CORRECT ANSWER: Face Value Explanation: Allotment of units in a Mutual Fund NFO are at the issue price which is typically at the face value of the units.220 an investor should consider investing in, if he is looking for long term goals with some stability. ‘Smal-cap sick ofthe ecuity markets WNicap socks ofthe equty markets Lao cap stocks of tho qui mates Alotthe above X WRONG ANSWER ‘CORRECT ANSWER: Large-cap stocks ofthe equity markets Explanation: 4 Intemsof tun perfomance age cap stocks tend toe ss vl. Large ap exposure gives an ment of stability othe polio while mid and small caps though mare vlale can lea to higher aptalapreition.‘©The coupon rate in a publi issue of debentures. itis ed by SEBI 's determined trough @ RBI eucton 1s determined trough book biking acess iis ad byte stock axchange on wc tl be ised X wroncausnen CORRECT ANSWIER: Is determined through a book building process. Explanation: a ‘The issuer of debenture in constation wth he lad manager may fue coupon payable on the debenture. The coupon maybe dtemiod trough a Bock bung proces 0.oz manages the operational and regulatory aspects of the public offer of shares. Registrar and transfer agents Underwriters to the issue Lead mangers Bankers to an issue %X_WRONG ANSWER, CORRECT ANSWER: Lead mangers Explanation: A lead manager ensures compliance with all the regulatory and operational requirements for the issue.°2- Whatis an ‘impact Cost with reference tothe equities market? ‘ts the percentage price movement cue toe partcular rade its the rskoF racing stocks which are not kqud isthe measure of iquatyrsk Allofthe above 2% WRONG ASHER CORRECT ANSWER: Allofthe above Explanation: a Luqueny nals ofrotaing be ne buyer reer torte aqury lings. guy rks messes by pt cot ‘The igac cost iste prenage pice movenen couse ya parca oars t's san oder ie of Rs Lt fom the aaa of the best ian fer rice in th oar book snapshot The inact costs caleulte fr bot, the buy andthe sl sce, Less liquid socks are more thinly trade, and a snl pe rade an move their pices considerably. Such stocks have high impact costs lower maretmpact mpl the sles more qu,Identify the TRUE statement with respect to lock-in period in children’s funds. ‘Units ina children’ fund are locked infor 5 years or til the end of tenor of scheme, whichever is eater Units a children's fund are locked in for 5 years or til age of major, whichavar is earlier Units in a children's fund are locked in for a minimum of § years and @ maximum of 10 years Units in a children's fund are locked in for 5 years before chil's mayonty won answer, CORRECT ANSWER: Units in a children's fund are locked in for § years or tillage of majority, whichever is earlier Explanation: Children's Fund are schemes oniente towards saving for childrens needs. Schemes wil have a locken of 6 years oil he age of majority whichever sear.os re generally lower inthe direct access facility of a Portfolio Management Service as compered to regular plan. Distibuton Coss Taal Costs Net Returns Tol tures 2X on ANSWER ‘CORRECT ANSWER: ‘Total Costs Explanation: a ‘There 2 provson or ect acess oly in PMS whereby ther arene dstrauors Who ae involved inthe sling ofthe plan, This wi havea stuation here the investor goes ana vet pats money nto te PS winou any neta. ‘The cect aoees facty has th sae benefit inthe PMS 2s in 2 mutual fnd wich sta th cost fortis il be loner. The loner amount of expenses wil ed oa loner amount being charged as expenses tothe investor‘The decision of Rebalancing Is essentially a trade-off between, Cost of nt rebalancing versus gan ofrebalancing Gain of no rebatancing versus costo rebalancing Gain of no rebalancing versus cost of not rebalancing Cost of rebalancing versus cot of not rebalancing Xeon answer CORRECT ANSWER: Costotetalancig versus cost ot not eblecng Explnaon: 4 oto rbalancig involves a simple acto: the cost of ealancing versus the cost of nt rebalancing, Whi deciding the frequency of rebalancing the rade tween the cost ofgomg Rand ncteoing sto be arved at. Irinvestr'targetassetaloeaton is eonsidetedoptinal any deviation rm it due opie fctatons is undesirable, However, rebalaneng costs need tbe Borne nminon. ‘An investment adviser has to advise his client on good portfolio management schemes (PMS) and choose the best for the investments to be made by his clint. He finds that the best PMS producti offered by a company in which his spouse works. How can he solve this lemma? ‘Aster is aconficto intrest, this PMS product stouldbe depped and not recommended Aster is a conic of ees, tis PMS products nelle as pet SEB eyUatos and should be cropped ‘Ase PMS products best, e shoud recommend ii his cent without ny esr He shoud make aul dscosure fo his cent of is spouses enpioyment nthe PRIS company and aso iy the products best stable ta hm X rons ansneR CORRECT ANSWER: He should make a full disclosure to his client of his spouse's employment in the PMS company and also why the product is best suitable to him Explanation a ‘As porte fuer responsbityof investment Advisers ~ A Full Discesure of al thefts has tobe made to the cet. Thee cannet bear emission of tis, Ts not onl covers noting wrengintomnton out k mas tet he cect Inernston shoUls Mave been ealoeed, Net cloning fhe et ght eg tte crt bang Mie Sne NS Mo be iced7: One ofthe approved method of collecting funds by an Altemate Investment Fund is through New Fund Off: Private Placemant Ine Pubic Ofer Any ol tie above 1 CORRECT ANSHER a Explanation: Investment nal categories of Alternative Investment Funds are sujet othe varios conditions of SEBIand one of hem is - The fund shall not slit or collet funds except byway of pute placementom. Identity the TRUE statement with respect to payment made for transactions in the capital markets? “The payment has io be uted fom the bank account fone of the ont holds The payment has o be routed fom the bank account ofthe account fhe fist holder “The payment has io be uted fom the bank account where the holdng patos the same asthe investment account “Te payment has o be routed fom the bank account were the fst nolo of ne investments ago the st holder of ank account 2X. WRONGANSHER ‘CORRECT ANSWER: ‘The payment has tobe routed from the bank account ofthe account ofthe ist holder Explanation: a ‘1 payments tor wansactonson te capi marets nave to be outed tough We hs oles tank Aocoun. Ts Eudes Payments ue on stock market acing account ana primary mart investments, Payments canbe rage trough cheques cemand orate and electron payment modes,23°. In which of these Investment structures does the Investor have the maximum say inthe way his investments are managed? Mutual Funds ‘Alteratve Invesiment Funds Discelionary partiola management services Non-Dscetionaty porfoo management services X wens answer ‘CORRECT ANSWER: Non Discretionary porto management services Explanation: 4 ‘A potolo manager i body corporate who advises or cats or uncerakes cn behalf ofthe investors the management or administration of porto of secuntes, There ae two ‘yes of porto management serves aval. ‘he clecretonay poole manage Indvculy ane Indepenseney manages the funds ofeach investor where he nonlseetonay pena manager manages the funds in ecoaance wit the dectons o e nvestre,est What is the simultaneous purchase and sale of same asset Trading Speculation Atpitrage Hedging XX wrone answer CORRECT ANSWER: Arbitrage Explanation: Arbitrage is defined as simultaneous purchase and sale of an asset to take advantage ofcifference’ prices in cifferent markets Arbitrageurs are specialists who identify such price differential in two markets and indulge in traces tnatracuce such atferances in price,\Wihich of these isan example of an investment decison fr easing tax constraints? ‘A. Investments in Sovereign Gold Bond scheme for asset allocation to gold 'B Choosing the growth option along with Systematic Withdrawal lan ina debt fund for regular income niy a Only Bath and B Neither Anor B 2X WRONG ANSWER ‘CORRECT ANSWER: Only A Explanation: a Investors get the benefit of indexation whan the invest in Sovereign Gold Bond. In this way they can reduce their tax burden, This fvity i not avaible when investments done in physi gol. ‘ystratie Wthramal Plann 2 debt fund wi rat ofr any tac incentives.933, Identify which document(s) is/are required for a request of transmission of investments? Probate of Will Death Certificate The required documents which will establish the relationship with the deceased All ofthe above X_ WRONG ANSWER CORRECT ANSWER: All of the above Explanation: ‘The tellownng are the documents required for transmission depending upon the nature of the transmission request: = Death eertneate nas tebe provided a8 evicence of ath In all requests for transmission, = Probate of wllto evigence validation of the will by the court asthe last and final will of te deceased investor = Documents estabishing relationship with the deceased investor, such as birth certfleate and marriage certincats, may nave to be provided. ate.34. ‘On whom are the SEB! Anti-Money laundering guidelines applicable? Its applicable to all SEB! registered intermediaries who deal with investment products but not liabilities Its applicable to all SEB! registorod intermediaries diracly involved in the stock markets Its applicable to all SEB! registered intermediaries who receive or pay funds from their clients Its applicable to all SEBI registered intermediaries WRONG ANSWER CORRECT ANSWER: Its applicable to all SEBI registered intermediaries Explanation: ‘SEBI has laid down guidelines on Anti-Money Laundering (AML) Standards and the rules are framed for the intermeciaries registered with SEBL‘°° Identity the situation in which the performance linked fee in a portfolio management service will NOT be applicabl Ife xed fees payable is below the apred ives Ife hurdle rate ras been crossed the agreed protabity targets are not achieved ‘Any the above Xeon answer ‘CORRECT ANSWER: I the agreed profitability targets are nt achieved Explanation: a “he pertommancenkee costs ore prott sharing rear an adatonal aunt of estate investor hast pay tote PMS. This Is preset in orcr to icentise te tund manager te gve 3 beer priormanoe. Tare te target nual rte) that ae 2at sn celdes upon we the PS agreement signed thee are mt ten earn percentage ofthe profits ‘ou be taken By the PMS fund manager a8 acon fees. ‘0 when the roft targets are nat met perfomance linked esi not payableox |While making an application for registration as Portfolio Management Service (PMS), detzled information on which ofthese need NOT be provided? Key management personne Princpaloicer CORRECT ANSWER a Explanation: Regitratonrequrements of 2 Porto Manager - Pariclars of sll Directors Parrers. Key NaragementPersoonel, Pariculrs of Promoters, Pariculrs of Complance ome afbeulrs of Pra Omest [Name Raeress:Gusiaton Ost of Appolren: ON: PAN (Copy of PAN Car) wnptone No: Meble; Emal] area ot Work ale of Wek, ‘xpenencen years, starenolings te, Invomaton oth ea numero payee ans number ot employees ter Porto Nanagement services Name and acbvites of associate companies! nies Ls of major harbors! partners ofthe Appear (ong 8% or more voting rights)27 Vinose name will be included in the Register of Members (Ro) of the company when a share is dematerilised? The name othe mvestor The name oe Depostory ‘The name ofthe Sock Broker The name of the Depostory Patipant 1 CORRECT ANSWER a Explanation: Dutng th process of deratriisation inthe Register of Members (Rol ofthe company, the dapositon’s name is inueed in he pace of he investor to the enon of secures denaiaitsee, (one the Rol ofthe comgany is amends confrmaton i ent oth depository andthe ests ccount withthe DPis crit wih Ee numberof dematariaised shares.298 Who manages the issuance of central and state government secur State Bank of India Ministry of Finance SEBI Reserve Bank of India jes and who is also the banker to Indian government? X WRONG ANSWER CORRECT ANSWER: Reserve Bank of India Explanation: ‘The RBI acts as the banker to the Government of Incia and performs merchant banking function for the central and the state governments.22 Which among these is NOT a valid classification of a portfolio management service provider? ‘Commodity PMS: Forex PMS Equity PMS Fixed income PMS ¥ CORRECT ANSWER Explanation: Portfolio management services can be classified on the basis of product class such as ~ 1. Equity based PMS 2. Fixed Income based PMS 3. Commodity PMS 4. Mutual Fund FMS 6. Multi Asset based PMS ‘There is no product class such as Forex PMS.‘Which i the fit line of ction for an investor who Is looking to get his grievance redres Const SEB! using SCORES Contact the rwestment adver Contact ihe requaior Conc the product/service provider 2% wnonc answer ‘CORRECT ANSWER: ‘Contact the product/service provider Explanation: a ‘Toe testi ot seton forte mvestor ito approaen the prosuet reece provier concernant getihe grvancerescies Ris netresovee tthe nvestorssettacton ty ean approach the regulator fhe respective ncusty.tet can invest in an Alternative Investment Fund, Tndian Resident Investor Non Resident Investor Foreign Investor Allof the above ¥ CORRECT ANSWER Explanation: Alternative investment Fune ean raise funds from any investor whether inaian, foreign oF Non-resident Indians by way of Issue of unitson Identity the TRUE statement with respect to information provided in the disclosure document of a portfolio management scheme (PMS), Infomationin the ciscsure document ofa PAS wil depend onthe agreement beeen the PMS and vestor Infomationin th disclosure document ofa PUS is specifedby th roguations Infomation inthe ciscosue document ofa PSs specified by th stock exchanges in whch the PMS schemes are isted Infomationin the disclosure docurent ofa PMS is decided by each PMS provider as por he services proved X eons ansner ‘CORRECT ANSWER: Information inthe disclosure document of a PMS is specified by the regulations Explanation: a ‘The Porto Manager, beoretaing up an assignment of management ofprtoke on bea ofa alent is requred to enter ino an apreementin wing wt the cent speciyng the eta stated inte SEB! (Portole Mangers Regultons), 2220. The Porte Managers aso requ to provide the cant vith a Disclesue Document contain speeee pamtcunrs. ‘The Disclosure Documents equed tind nt ais, the quantum and mann of payment offs payable tothe cet for ach act fr which sie Is 282 rendered, polo ‘ake spe fo ach investment approoch,dsclosure ih respetta related pais ae equPed under Acounting Sarda iesued by lati of Chartered Acoust i te.°*5 Mr. Suraj has invested in mutual funds. How will his holding in mutual funds be denoted? In the farm of Shares In the form of Rupees In the form of percentage holding In the form of Units %X_ WRONG ANSWER CORRECT ANSWER: In the form of Units Explanation: ‘Tne holding of the investor in a mutual fund scheme will be denoted in UNITS. For eg. If person invests Rs 60,000 in a mutual fund scheme at NAV Rs. 20, than his Holding will be of 2600 UNITS (50000 / 20)‘2% ifthe change in BSE Sensex or Nifty is of 15% between 1 to2 pm, trading wil be halted for 30 minutes 45 minutos ‘hour 130hour X sons ansnes ‘CORRECT ANSWER: 46 minutes Explanation: a there i an abnormal price movement in an inde, defied in percentage tems, the exchange can suspend trading, This called hitng the Gui breaker. The ndex-ased market wide cxcut breaker system apple 33 stages ofthe index moverer, eer way wz at 1%, 1% and 2% teres a 15% enange tor ane 1:00 pe tere 2:00pm, th Waang Wl be Nae or 4 mites.oss. ‘entity which ofthese i diferent ina reguter plan and direct plan of mutual fund scheme? “The Net Asset Value (NAY) etre Expense Ratio Allofthe above 2 ons answer ‘CORRECT ANSWER: All ofthe above xplanati 1m vec plns, investors can buy the tne ety rem te AMCs or enbnepiorms bypatsingfnsncal temmecares, These being puchssec and old via ntrmesariesmutal ‘tn agents re ctegozed as regular pans. The Expense ato is aways loner inet plans 2s commision et. payable tontemediaes are not required to be pai in det plas. Loner expense rates of rect plans resut in high ret. Te NAV of direct plans is higher than their regular counterpart because ofthe higher tun.ous Mr. Mohan has deposited Rs. § lakhs with a fund manager. Out of this amount, the fund manager has invested Re 25 lakhs end earned Rs. 80000. What is the effective return for Mr Mohan? 10h 2% 9% 18% 2X wonc aNsneR ‘CORRECT ANSWER: 1% Explanation: a ‘Mohan has deposit Rs, ls ante este retum has tobe calculated onthe total amount eepesie, Return on Investment fet Retum on investment Costoinvestnent X 00% 6100050000 x 10% am"on whomis the Insolveney and Bankruptey code applicable? is apicable on individuals 1s plicable on Companies is applicable on Partnership fms ‘Allo the above X wroncanswer ‘CORRECT ANSWER: Allof the above. Explanation ‘The objective ofthe nsciveny and Bakrupty Coe isto consoliate and amend the ws esting to reorganization and isoleney reslution of corperste persons, partnership tims fndingivauas na tine bouna manne,Generally 2 Convertible Bond is converted into Cal opton Pat option Preference share Equity share ‘on maturity, X mons answer ‘CORRECT ANSWER: Equity share Explanation: 4 ‘A converte hon Is 2 combination ofa nomal bond pis an embeded equity call opin. pves the bondholer the right to exchange the hone fra specif number of equity "hse othe slag company.24°. How are Corporate Bonds primarily raised? ‘Over the Counter By Public Issue By Private Placement By Auction X_weons answer CORRECT ANSWER: By Private Placement Explanation: “ypically, Governments iesue debt through “Auctions” while corporates issue debt papers like corporate bonds through “Private Placement”. [A private placement of securtes is an oftermace by a company toa select group of investors such as ninancial institutions, banks and mutual tunes.re, Revath bought a Nifty futures contract at 2.00 pm yesterday t Rs 16500. The setement price a the end of the day wae Re, 16700, Calculate the Mark-To- ‘arict Tt) profeioes for thi cantrat? (The lot sie of contacts 0), TMTM Loss oF, 10000, MIM Loss of Re 5000 MIM Profit of Rs 10000 MIM Profit of Re 2600 X waoncansnen CoRRECT ANSWER: MM Profit of Re, 10000 Explanation: a ako Maret (Tn 2 utr eoniratis the process of aly settemant of proitnd loses arising de othe change inte secur’ marke ae uni itis hed Inthe above queston hy was bought at 16500 ane te settament price was 1700 Se teresa MM prt of Rs 200, mules by lt sie 60: 200 x50 Rs 10000