nccmp-test NCCMP Test Paper Your email address: Your name: Phone: Start Test! <<123456789101112131415161718192021222324252627282930313233343536373839404142434445>> 2% Question 1 of 45 1. Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs.250 per call. An investor buys 200 Nifty calls. At expiry Nifty closes at 4800. Net profit / loss of the investor is Rs. ________.(-) 50000(+) 30000(-) 30000(+) 50000Question 1 of 45Question 2 of 45 2. Spot Nifty is at 5000. One month Nifty put with strike price of Rs. 5200 is trading at Rs. 250 per put. An investor buys 200 Nifty puts. At expiry Nifty closes at 5250. Net profit/loss of the investor is Rs _________.(+) 30000(-) 30000(+)50000(-) 50000Question 2 of 45Question 3 of 45 3. "____________ are scarce, while human wants are unlimited".Opportunities.Business.Start upsResources.Question 3 of 45Question 4 of 45 4. "Inflation can be high, moderate or low."TrueFalseQuestion 4 of 45Question 5 of 45 5. "A _________ is a corporate action which splits the existing shares of a particular face value into smaller denominations so that the number of shares increase, however, the market capitalization or the value of shares held by the investors post - split remains the same as that before the split".Preferential allotment.Stock split.Bonus.Rights.Question 5 of 45Question 6 of 45 6. _____________ are a significant improvement over the forward contracts as they eliminate counter-party risk and offer more liquidity.Futures.OTC trades.Bilateral contracts.Swaps.Question 6 of 45Question 7 of 45 7. Derivatives can be traded on _________.Equity.Forex.Commodities.All of the aboveQuestion 7 of 45Question 8 of 45 8. A __________ economic indicator is one that does not change direction until a few quarters after the economy does.Lagged.Leading.Question 8 of 45Question 9 of 45 9. "This is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume."Technical analysisFundamental analysisQuestion 9 of 45Question 10 of 45 10. A corporate manager can define exposure limits for the branches of the firm.TrueFalseQuestion 10 of 45Question 11 of 45 11. __________ shares are issued out of the Company's free reserve or share premium account in a particular ratio to the number of securities held on a record date.Rights issue.Bonus issue.Question 11 of 45Question 12 of 45 12. "When an issue of securities is made by an issuer to its shareholders existing as on a particular date fixed by the issuer (i.e. record date), it is called a __________"Rights issueBonus issueQuestion 12 of 45Question 13 of 45 13. ___________ is spreading your money across a range of investments.Asset allocation.Correlation.Hedging.Diversification.Question 13 of 45Question 14 of 45 14. _________ buy and sell currencies in the hope of profiting from price movements.Arbitrageurs.Speculators.Hedgers.Question 14 of 45Question 15 of 45 15. ______________ arises from the possibility of default by any one party to the transaction?Major party risk.Opposite party risk.Counter-party risk.Minor party risk.Question 15 of 45Question 16 of 45 16. The _______ provides a central convenient place where buyers and sellers can easily purchase and sell securities.Money market.Currency markets.Stock exchange.Banks.Question 16 of 45Question 17 of 45 17. Properly analyzed and interpreted financial statements can provide valuable insights into a firm's performance.TrueFalseQuestion 17 of 45Question 18 of 45 18. An investor sold 200 Nifty Futures at Rs. 4500 per future. He bought them back at Rs. 5000 per future. Total profit/loss is Rs. __________(+)5000(-)10000(+)10000(-)5000Question 18 of 45Question 19 of 45 19. Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs. 250 per call. An investor buys 100 Nifty calls. At expiry Nifty closes at 5500. Net profit / loss of the investor is Rs. _______.(+)50000(-)50000(+)45000(-) 45000Question 19 of 45Question 20 of 45 20. For the purpose of settlement all clearing members are required to open a separate bank account with NSCCL designated clearing bank for F&O segment.TrueFalseQuestion 20 of 45Question 21 of 45 21. The final settlement price is the closing price of the equity index futures contract on the last trading day of the contract.TrueFalseQuestion 21 of 45Question 22 of 45 22. "Technical analysis has universal applicability. It can be applied to any financial instrument - stocks, futures and commodities, fixed - income securities, forex, etc."TrueFalseQuestion 22 of 45Question 23 of 45 23. _________ rates are also used to curb the effect of inflation especially when the inflation is high.Real InterestNominal InterestInterestQuestion 23 of 45Question 24 of 45 24. A primary motivation for pre-arranging a buyer or seller for a stock of commodities in early forward contracts was to lesser the possibility that large swings would inhibit marketing the commodity after a harvest.TrueFalseQuestion 24 of 45Question 25 of 45 25. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the __________.Insurance marketBanking systemSecurities marketCorporates.Question 25 of 45Question 26 of 45 26. Financial markets allow a transfer of __________ from those who undertake investments to those who provide funds for those investments.Risk.Debt.Equity.Goodwill.Question 26 of 45Question 27 of 45 27. The products in the commodity derivatives markets can be categorized into Non-Agricultural Products and Agricultural Products.TrueFalseQuestion 27 of 45Question 28 of 45 28. ____________ is the price demanded by the lender from the borrower for the use of borrowed money.InterestCommissionDividend.BonusQuestion 28 of 45Question 29 of 45 29. An investor sold 100 Nifty Futures at Rs. 4500 future. He bought them back at Rs. 5000 per future. Total profit / loss is Rs. _____________(+) 4000(-) 4000(-) 5000(+) 5000Question 29 of 45Question 30 of 45 30. Spot Nifty is at 5000. One month Nifty put with strike price of Rs. 5100 is trading at Rs. 150 per put. An investor buys 200 Nifty puts. At expiry Nifty closes at 4800. Net profit / loss of the investor is Rs. __________.(-) 30000(+) 50000(-) 50000(+) 30000Question 30 of 45Question 31 of 45 31. An investor bought 200 Nifty Futures at Rs. 4500 per future. He sold them at Rs. 5000 per future. Total profit/loss is Rs. ________(+)5000(+) 10000(-) 10000(-)5000Question 31 of 45Question 32 of 45 32. "As per the Securities Contract Regulation Act, in India, derivatives are legal and valid only if such contracts are traded on a recognized stock exchange".TrueFalseQuestion 32 of 45Question 33 of 45 33. "An investor buys Rs. 2,00,000 worth of index futures. The maximum brokerage that can be charged to the investor is Rs. ___________."2000300050001000Question 33 of 45Question 34 of 45 34. _____________ is the rate of interest an investor expects to receive after subtracting inflation.Real inflation rate.Real interest rate.Adjusted interest rate.Adjusted inflation rate.Question 34 of 45Question 35 of 45 35. "Controllable, internal factors some what peculiar to industries and / or firms are referred to as sources of ___________ risk".Systematic.Unsystematic.Question 35 of 45Question 36 of 45 36. The __________ market is a market for very short-term funds.Call money.Put money.Equity.Bond.Question 36 of 45Question 37 of 45 37. "In the class of equity derivatives the world over, futures and options on stock indices have gained more popularity than on individual stocks".TrueFalseQuestion 37 of 45Question 38 of 45 38. "A __________ believes that it is possible to identify a trend, invest or trade based on the trend and make money as the trend unfolds".Fundamental analyst.Technical analyst.Question 38 of 45Question 39 of 45 39. "The settlement amount for a Clearing Member is ________ across all their Trading Members / clients, with respect to their obligations on MTM, premium and exercise settlement".Netted.Grossed.Question 39 of 45Question 40 of 45 40. __________ are claims on the borrower's future income or assets.Assets.Securities.Liabilities.CollateralQuestion 40 of 45Question 41 of 45 41. "In a ______________ contract, the contract price is generally not available in public domain."Forward.Futures.Question 41 of 45Question 42 of 45 42. "By using the _________ forward market to sell dollars forward, the exporter can lock on to a rate today and reduce his uncertainty."Commodities.Bond.Currency.Equity.Question 42 of 45Question 43 of 45 43. Doji lines are patterns with the same open and close price.TrueFalseQuestion 43 of 45Question 44 of 45 44. An investor bought 100 Nifty Futures at Rs. 4500 per future. He sold them at Rs. 5000 per future. Total profit / loss is Rs. _________(+)5000(-) 5000(+) 4000(-) 4000Question 44 of 45Question 45 of 45 45. "To alert investors to the potential effects of management stock options and convertible securities, a second EPS is calculated by certain companies, which is called the _________ EPS".Diluted.Second.Extra.Additional.Question 45 of 45 Loading...