Final Practice Exam 2

Is it mandatory for Qualified Institutional Buyers (QIBs) to register with SEBI to participate in an Initial Public Offer as QIB?

The document that confirms a trade executed on the stock exchange is called _____

The Issuer may pay interest at ……. % per annum for any delay beyond 15 days from the Bid/ Offer Closing Date, if Allotment is not made.

w.e.f. 01/06/2016, the rate of Securities Transaction Tax on Purchase and Sale of an equity share on other than actual delivery (intra-day)

Right practice while investing in stocks is

Which of the following is NOT a method of sharing profits with shareholders?

Corporate Bonds are Risk free asset.

Circuits used by exchanges during trade are a Risk Management Tool.

In ________ scenario, Company offers to buy its shares from the share holders. It’s basically a process used for efficient price discovery.

A ‘Highly Volatile Stock’ offers you Assured Returns?

Changes in Market Rates of Interest on Debt affect the Yield on Corporate Bonds?

A ‘Low Volatile Stock’ offers you Guaranteed Returns?

As an asset class Equity Shares are classified as

Can an investor apply for an IPO through multiple Applications on the same name?

In case of a book building issue, the IPO remains open for 3 to 7 days. This can be extended by how many days if the price band is revised?

If an IPO fails to get _____ overall subscription (including QIB, NII, and Retail) by the last day of the issue then the IPO is cancelled.

In case of a fresh issue of Shares as a ‘Fixed Price Issue’, who decides the price at which the shares will be issued?

In case of issue of Shares as fixed price issue, investors need to pay _____ of the price of the share at the time of bidding for the share

In an IPO, the SEBI (DIP) guidelines permit only _______ to have an option of applying at ‘CUT OFF PRICE’.

Retail Individual Investors (RIIs) – In an IPO, any individual investor who is willing to subscribe for shares less than or up to

What is the minimum amount for an Anchor Investor to bid for in IPO to participate?

To participate as Non-institutional Investors (NIIs)/High Net-worth Individuals (HNIs) in an IPO what is the min amount they must apply for?

As per SEBI norms, what percentage of the total IPO offering should be reserved for High Networth Individuals (HNIs) ?

What percentage of total IPO offer by a company should be reserved for Retail Individual Investors (RIIs)

Companies who have NOT registered profits in the last 3 years, are allowed to allocate only ______ to retail investors in an IPO.

Which of the following MIGHT NOT be a reason for a stock market to lose value suddenly?

In an IPO, out of the shares reserved for QIIs, up to ____ of the shares can be sold to Anchor Investors.

SEBI has mandated that Institutional Investors/Qualified Institutional Investors (QIIs) cannot be allocated more than ___ % shares in an IPO

In case of an IPO through Book Building mode, the cap on the Price Band should be less than or equal to ______ % of the Floor Price.

In case of an Initial Public Offer, the Floor Price or the Offer price cannot be lesser than …………… of the securities.

Which of these merchants is/are licensed to deal in equity markets and commodity derivatives by SEBI?

Up to what amount individual investors can use UPI for application in IPOs / FPOs as per SEBI guidelines?

All the equity stocks listed in Indian Stock Exchanges will move to T+1 settlement from which date ?

Rate of Securities Transaction Tax applicable on Sale of an option in securities where the option is exercised is …

Securities Transaction Tax is payable on Sale of an option in securities. The Rate of STT W.E.F. JUNE 1, 2016 applicable is

Are the investors liable to pay tax on Dividend Received from holdings in Domestic Companies or Equity Oriented Domestic Mutual Funds?

w.e.f. 01/06/2016, the rate of Securities Transaction Tax on Purchase and Sale of an equity share on actual delivery or transfer basis is

Is short – selling in stock trading is Risky?

All sale and purchase transactions in securities other than debt securities attract SEBI Turnover Fee on the value of transactions at the rate of _________ .

An order to buy or sell a specified quantity of a stock at a specified price or a better price is called a

Which of the following do financial analysts consider LEAST IMPORTANT when assessing long-run economic and financial outlook of a Company?

One of the most popular tools used by technical analysts is:

Deep Discount Bonds’ and ‘Zero Coupon Bonds’ – are these same?”

How can an investor earn income from ‘ZERO COUPON BONDS’?

How does an investor earn income from a ‘Perpetual Bond’?

Which type of chart includes daily high price, low price, opening price, and closing price?

Which of the following is not part of technical analysis?

In technical analysis which of the following is a sentiment indicator?

Bonds give you return in form of Interest and Capital Gains. With Shares how you get return on your investments?

In Technical Analysis which of the following terms represents an upper price limit for a stock, based on the quantity of willing sellers?

In the Indian Securities Markets, are the two entities – ‘Merchant Banker’ and ‘Bankers to an issue’ one and same?

Shareholders of a company basically are

India INX, India’s first International Exchange located in GIFT City IFSC in Gujarat, is a fully-owned subsidiary of ___________ .

In the technical analysis and charting of share price data the abbreviation ‘DMA’ stands for

In the Stock Market terminology the term ‘Bullish’ means

What is the closing price of any stock on a stock exchange on any trading day in India

Which of the following activities is not permitted for a “Banker to an Issue” in the Indian Securities Markets?

Which of the following is traded on the Stock Exchanges?

Which of the following is not an activity of a Stock Exchange in India

Can the Shares of an Unlisted company be traded?

Which of the following tools/methods is used by Stock Exchanges in India to mitigate the risks associated with Members and their Clients

Which of these features makes Share / Bonds available for trade, whereas due to lack of it Bank FD / Life Insurance Policies are not traded

On any trading day on a Stock Exchange in India for any individual stock, the opening price for the stock is determined by the

Credit Rating is an important activity in securities markets. Any Credit Rating Agency, to operate in India should first register with

On any trading day on a Stock Exchange in India, can the ‘Closing Price’ of any high volume stock be its day’s high also?

At the end of any ‘Trading Day’ the calculation of Index is done on the basis of which price of the constituent securities?

What is ‘Short Delivery of Shares’ with respect to settlement of equity trade

Apart from SENSEX, BSE offers F &O contracts on its five sectoral indices, which of the following is not part of it F&O contracts?

Apart from SENSEX, BSE offers F&O contracts on its 5 Sector specific Indices. Which amongst the following is not part of its F&O contracts?

In case of Equity Intraday Trade in India, the auto square off happens 10 min before the market closes for all open orders at what prices?

Does BSE India offer Exchange Traded Index Options and Futures contracts on its flagship index SENSEX?

BSE was the first exchange to start Index based F&O contract trading in India. At present it offers F&O on how many Indices including SENSEX

In case of Intraday Equity Trade in India, the risk management system of a broker automatically squares off all open orders at what time?

Currently, NSE provides trading in Futures and Options contracts on 4 major indices Derivatives. Which one of the following is part of F&O

Financial Derivatives are popular across the world. In India Trading in Index based Financial Derivatives started from which year?

Spot Price higher than Futures price is called

If someone buys a Bond at IPO and holds it till maturity, will the change in market interest rates affect his/her Yield?

Ban on any scrip in F&O segment for a certain period of time is a part Risk Management process

In the context of Stock Markets is the undervalued stock same as “low priced stock”

PMS Distributor comes under Prohibition of Fraudulent & Unfair Trade Practises 2003

Which statement is TRUE with respect to transfer of funds between Tier I and Tier II account of a NPS subscriber?

A partial withdrawal is allowed of accumulated pension wealth of the subscriber in the NPS A/c, not exceeding _______________ of the contributions and excluding contribution made by employer, if any

While calculating the retirement corpus the requirements of which of the following should be kept in mind?

The NPS provides to its subscribers ___________

If an investor wants high liquidity and protection of capital, which of the following asset class will be most suitable?

The NPS Application is likely to be rejected if __________-

The appropriate schedule to review the portfolio of a retirement plan is _____________

Under the employee Provident Fund Scheme (EPF), what are the tax benefits available?

Who has to provide regular information regarding NPS to PFRDA?

Which of the following changes in an individuals life will affect the retirement goal Value?

What is the result of a plan in which the savings start early for the retirement corpus?

__________________ is a significant costs in the retirement phase of an individual.

How should one deal with biases in investing especially when planning for retirement?

The retirement benefit in a Defined Contribution Plan (DCP) depends upon ______

What are the decisions that the individual has to make while signing up for a systematic investment or withdrawal plan?

Who manages the issuance of Central and State Government securities?

The retirement goal value will be affected by which of the following changes in the individual’s life?

How is the gratuity due paid to the employee?

The NPS system provides what type of retirement benefits to its subscribers?

Which of the following ratio reflects the Debt situation of the individual?

Which of the following is a consequences of Inflation?

The maximum time within which the Ombudsman shall pass as award after an appeal is filled with it under the NPS is ___________-

At which stage is it good to reduce the proportion of growth assets in the portfolio?

Which of the following is characteristics of a equity Asset class?

Which of the below mentioned financial activity can be called an Investments?

__________________ is responsible for investing the investment made by the subscriber of NPS?

How will the Annualised return be calculated if the rate of return from an investment is 27% and the holding period is 3 years

When we refer to estate Planning, what does the term estate mean?

When is the NAV of schemes declared?

What is the beneficial interest of the NPS Subscriber as per the NPS trust deed?

Mr Ashok is nearing the distribution stage of retirement planning. Which of the following strategies should he ideally follow?

______________ is a desirable features of Income in retirement.

What is the significance of “Years to Retirement” in accumulating the corpus for retirement?

_________ Strategy can be used to generate regular periodic income from investments?

The focus of savings and investment of an average household should _________________

A Man requires 8 lakhs after 9 years to meet his annual expenses. The rate of return is 7.5% and the inflation rate is 6%. How much money should he invest to get the desired amount

Mr. Sanjay will retire after 2 years. How will his income be taxed during the retirement?

For what maximum period can a reverse Mortgage Loan (RML) be taken?

Which of the following will go down if the expected rate of return in the accumulation phase goes up?

Whose needs have to be properly analysed while deciding on the retirement corpus?

If the interest rates in the economy goes up, the market value of the existing rate sensitive instruments will usually ___________

______________ is a disadvantage of using annuity as a source of regular income in retirement.

As a retirement adviser, which of the following investors can be advised to take higher exposure to equities in their retirement portfolios?

The average costs of acquisition is likely to come done in a volatile market of the strategy of regular periodic investments is adopted – State True or False

Funds will invest in a particular asset class or classes depending upon the ____________

_______________ Expenses is / are charged before calculating the NAV of the NPS schemes.

Whose responsibility is to collect and transmit to the trustee Bank the contributions made by the subscriber to the NPS?

The investment Management agreement is between ____________

The minimum Networth of the Pension Fund Managers is __________-

When income requirement is determined in retirement using the expenses Protection Method, which of the following risks may result in over spending?

The rule ensures that pension funds work in the interests of the NPS subscribers?

Which is the most efficient way for an investor to adhere to their savings plan?

Among the various financial goals, how different is retirement goal from other financial goal?

The function of inspecting and auditing the intermediaries of securities market is done by

Every time there is a life event that impacts income and expenses in retirement one should rework his retirement corpus. What is the advantage of such periodical re working of corpus?

Which of these is a stated function of Pension fund regulatory and Development Authority?

The benefits of compounding in a retirement portfolio can be best maximised by __________

What is the benefit of protecting the retirement corpus in the initial years from withdrawals with a second income, early in retirement

The financial / Non financial transaction are initiated and executed by which intermediary for the subscriber under NPS?

When will a person invest in products with volatile returns?

The subscriber to the NPS is taxed at the

Mr X has an outstanding debt which he could not pay before his retirement started. What action should he take?

____________ is least suited product for investment if the objective is better returns for the retiree.

Who is responsible for monitoring and evaluating the levels of service offered by the intermediaries?

Investment in equity will be expected to do well during ____________

Which of these qualities are important for a retirement adviser to have a healthy relationship with a client?

Mr Ashok decides to retire early. How will this affect the retirement plan?

A fixed amount has been allocated by an investor to buy Units every month of an investment whose price are volatile. Which of the below statement is not true at the end of a fixed period?

In the Bucket Strategy, what is the nature of funds assigned to the first bucket?

In which way are the existing investments considered while adjusting them for the retirement corpus?

Contributions made by the subscriber in the individual pension account is exempt from the tax under the Section 80 CCd (1)

Why is the Public Provident fund one of the most suitable schemes for accumulating the retirement corpus?

Which of the following is the main difference between an actively managed fund and a passively managed fund?

Investors will prefer a mutual fund scheme which follows a conservative strategy when _____________–

While purchasing an annuity, which is / are the choice(s) available to the NPS subscriber?

Mr. Kaushik is working for a private company and has an account in the NPS. He then gets a job in a central Government department. What happens to his NPS account?

What is the tax structure on the income received from the Reverse Mortgage Loan scheme?

An Investor wishes to invest some funds to augment his pension in retirement. Which of the following investment will meet his needs?

What is the importance of Years to retirement when planning for retirement?

Under whose name are the securities held in the scheme managed by a pension fund under the NPS?

When can nominations to the NPS account be made?

How will the presence of the debt obligations in retirement affect the decision made for the retirement income portfolio?

What is the limit fixed by PFRDA on the amount that can be withdrawn by an individual NPS account holder?

To open a Tier II account, which of these subscriber have to do the KYC formalities?

As per the NPS trust deed, the beneficial interest of the subscriber in the NPS trust deed is __________

The money required during the retirement years should ideally NOT come from ___–

__________ is a systematic risks

When a subscriber to the NPS (except Govt model) reaches the age of 60 years, what can he / she do?

One of the benefits of estate planning is ____________

The investment management fee which is payable to the pension fund will depend on ___________

Who administer the monetary policy in India?

What should be the main driver of managing the retirement portfolios as the retirement date comes closer?

When comparing a peer group performances, what should be kept in mind?

Emergency funds should either be in cash or parked in the securities which __-

An investor requires 2 lakhs after 5 years to meet his annual expenses. The rate of return is 8% while the inflation is 7%. How much money should he invest to get he desired amount?

Which is/are the disqualifications(s) for applying to become a subscriber with NPS?

Mr Verma is worried about the possible drain in his retirement income due to issues of health in old age. Which of the below options is an efficient way of handling this situation?

______________________ enables easy calculations of returns from an investment with multiple cash flows

What is the real rate of return?

Among the following options, which one is a correct eligibility criterion for any applicant intending to obtain a certificate of registration as a point of presence (PoP)?

Which statement is TRUE with respect to transfer of funds between Tier I and Tier II account of a NPS subscriber?

A partial withdrawal is allowed of accumulated pension wealth of the subscriber in the NPS A/c, not exceeding _______________ of the contributions and excluding contribution made by employer, if any

While calculating the retirement corpus the requirements of which of the following should be kept in mind?

The NPS provides to its subscribers ___________

If an investor wants high liquidity and protection of capital, which of the following asset class will be most suitable?

The NPS Application is likely to be rejected if __________-

The appropriate schedule to review the portfolio of a retirement plan is _____________

Under the employee Provident Fund Scheme (EPF), what are the tax benefits available?

Who has to provide regular information regarding NPS to PFRDA?

Which of the following changes in an individuals life will affect the retirement goal Value?

What is the result of a plan in which the savings start early for the retirement corpus?

__________________ is a significant costs in the retirement phase of an individual.

How should one deal with biases in investing especially when planning for retirement?

The retirement benefit in a Defined Contribution Plan (DCP) depends upon ______

What are the decisions that the individual has to make while signing up for a systematic investment or withdrawal plan?

Who manages the issuance of Central and State Government securities?

The retirement goal value will be affected by which of the following changes in the individual’s life?

How is the gratuity due paid to the employee?

The NPS system provides what type of retirement benefits to its subscribers?

Which of the following ratio reflects the Debt situation of the individual?

Which of the following is a consequences of Inflation?

The maximum time within which the Ombudsman shall pass as award after an appeal is filled with it under the NPS is ___________-