Unit 10 – Quiz

The prime objective of the SEBI Act,1992 is to protect the interests of

The Board may take measures to undertake inspection of any book, or register, or other document or record of

The Magistrate or Judge of the Designated Court shall not authorize seizure of books, registers, other documents and record, of

Any insider shall be liable to a penalty of

A person shall not be qualified for appointment as the Presiding Officer unless he is or has been

With reference to Basel III how much capital conservation buffer are bank required to maintain?

Operational risk is the risk of loss arising from various types of

All of the following are examples of systematic risk Except

A __________ would be an example of a principal, while a __________ would be an example of an agent.

The maximum load that a fund can charge is determined by the

What is venture capital?

What is a red herring?

What is a seasoned equity offering?

The difference between the underwriters’ buying price and the offering price of the securities to the public is called the

The date on which existing shareholders are designated as the recipients of stock rights is called the

All of the following are typically key roles of the investment dealer except

The main function of syndicate members is

When new shares in a public firm are to be issued, the price will normally be established

Perhaps the biggest change of all in the investment industry has been

Private placement involves selling securities directly to

SEBI has laid down some conditions for the approval of AMC and one of the fundamental conditions requires that the AMC should have minimum net worth of

In order to promote the interest of investors, SEBI requires _______ to be an independent entity in imparting its functions honestly.

The investor who desires to hold units in dematerialized form and makes investments more than _________ is applicable to be filed under Know Your Customer (KYC) norm by the AMC.

Income earned by a Mutual Fund registered with SEBI is exempt from Income-Tax as per section

Which of the following is true? Some close end funds sell at a discount to their NAV, because

The standardized gap adjusts for

Ceteris paribus, the duration of a bond is positively correlated with the bond’s

Indexing of bond portfolios is difficult because

Cash flow matching on a multiperiod basis is referred to as

Interest paid (earned) on both the original principal borrowed (lent) and previous interest earned is often referred to as

An InvIT consists of which of the following elements?

InvITs can be treated as the modified version of REITs designed to suit the specific circumstances of the

InvITs which invest in completed projects take the route of

____________ are the firms which set up the InvITs.

The _______________ is responsible for executing the projects.

FPI is part of a country’s capital account and is shown on its

A ____________ is an investment made by a firm or individual in one country into business interests located in another country.

____________ is when Indian companies or individuals invest in foreign countries.

In the Indian context, FIIs (along with sub-accounts with FIIs) and QFIs can be collectively classified as

FIIs, have now been merged into Foreign Portfolio Investors (FPI), when the FPI regulations were introduced in

Which of these is the biggest potential risk area?

What is the acronym for mandatory national agencies that handle financial intelligence?

Disclosing that an investigation is being contemplated on the customer’s account is considered as

Select the potential risks to the company if we fail to implement counteractive measures in preventing AML

The process of money laundering is perpetrated by

Which of the following can be described as involving indirect finance?

Intermediaries who are agents of investors and match buyers with sellers of securities are called

Which of the following markets is sometimes organized as an over-the-counter market?

The presence of transaction costs in financial markets explains, in part, why?

Common stock, preferred stock, bonds, debentures, and warrants are examples of ________ securities.

It shall be the duty of who among the following to produce to the Investigating Authority or any person authorized by it in this behalf all related documents?

The Investigating Authority may make an application to the Magistrate or Judge of such designated court in Mumbai, as may be notified by the __________ for an order for the seizure.

The Presiding Officer or every Judicial or Technical Member of the Securities Appellate Tribunal shall hold office for a term of

Any person aggrieved by an order ______________ may prefer an appeal to a Securities Appellate Tribunal having jurisdiction in the matter.

As per the Basel III implementation in India, minimum Tier1 capital must be ____________ % of risk weighted assets on going basis.

The decision function of financial management can be broken down into the

The performance of a fund is largely measured by the success of

A market for existing (used) securities, such as the NYSE or AMEX, rather than new issues is known as the

In case of private placement of shares, to raise the amount of capital a company

A public issue of securities where existing shareholders are given the first opportunity to purchase the new securities is called a

A lockup agreement is an agreement included in an underwriting contract which

Loans provided directly from a limited number of investors to a corporation with maturities typically in excess of five years are called

Under a leveraged buy-out scenario, all of the following are true except

The venture capital provided in the very early stages of financing is commonly referred to as

One of the main reasons an initial public offering (IPO) may do well in the after market is

The total direct costs of underwriting an equity IPO

An NRI holds units in a mutual fund. What should he do with his holding if he takes up a foreign citizenship?

The Asset Management Company shall make investment decisions solely in the interest of

Which trading individuals has SEBI decided to grant a unified license to operate in commodity derivative and equity markets?

What is the latest amendment to the FPI regulations by capital and commodities market regulator SEBI?

If the yield curve were upward sloping, the bank could accept some interest rate risk and earn a positive interest rate spread by

The Short Holder bank pays 5.60%, compounded daily (based on 360 days), on a 9-month certificate of deposit. If you deposit $20,000 you would expect to earn around __________ in interest.

What is the present value of a $1,000 ordinary annuity that earns 8% annually for an infinite number of periods?

Which of the following statements is most correct?

InvITs are similar to REIT but invest in infrastructure projects such as roads or highways which take some time to generate steady

The _____________ oversees the role of InvIT, investment managers and project manager and ensures that all rules are complied with.

InvITs are listed on and are subjected to the vagaries of the ____________, resulting in negative or lower returns than expected.

The ______________ shall enter into an investment management agreement with the investment manager on behalf of the InvIT.

As per the Companies Act 2013, if a foreign investor owns more than 10 % shares in a listed company, it will be treated as

________________ will have to do the FPI registration on behalf of Semi and also perform some regulatory functions such as identifying the end-beneficiaries and other due diligence.

______________ are vehicles of investment used by overseas investors to get exposure to Indian equities and other equity derivatives.

______________ can be used to develop infrastructure, set up manufacturing facilities and service hubs, and invest in other productive assets such as machinery and equipment, which contributes to economic growth and stimulates employment.

When presented with a search warrant, an institution should consider taking which three of the following steps?

Which of the following three are characteristics of a risk-based approach that make it the preferred method of allocating resources?

Letter of thanks is sent to introducer because it is

For opening accounts in the case of Hindu Undivided Family (HUF), the following documents are important

Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage of

The government regulates financial markets for three main reasons

Adverse selection is a problem associated with equity and debt contracts arising from

The ________ created the Securities and Exchange Commission (SEC) and empowered it to administer federal securities laws.

In the event of occurrence of any vacancy in the office of the Presiding Officer of the Securities Appellate Tribunal, _________ shall act as the Presiding Officer until the date on which a new Presiding Officer is appointed

If at any time the Central Government is of opinion that Board unable to perform its functions, it may by notification, supersede the Board for such period, not exceeding

The Board shall, within __________ after the end of each financial year, submit to the Central Government a report in such form, as may be prescribed, giving a true and full account of its activities, policy and Programmes during the previous financial year.

An arrangement with a single investment banker or group of investment bankers to “stand by” and be ready to underwrite any unsold portion of an issue, is referred to as a

What happens, according to the text, to the average common stock price immediately after the announcement of a new equity issue by a publicly traded firm?

The type of underwriting where a syndicate sells as much of an issue as possible, but can return any unsold securities to the issuing firm without any further financial responsibility, is called a

Before a seasoned stock offering, you owned 3,500 shares of a firm that had 225,000 shares outstanding. After the seasoned offering, you still owned 3,500 shares but the number of shares outstanding rose to 275,000. This is an example of

Shelf registration allows a firm to register multiple issues at one time with the SEC and then sell those registered shares anytime during the subsequent

An open-end fund with 10,000 units outstanding had the following items in its balance sheet:
Investment at Market Value – Rs. 100,000
Current Assets – Rs. 20,000
Current Liabilities – Rs. 25,000
Calculate the fund’s NAV per unit.

According to SEBI’s code for mutual fund advertisement, for funds that have been in existence for more than a year, annualized returns have to be furnished for

Entities under probe for serious violation in which market can seek settlement of the case if they make good on losses suffered by investors to SEBI’s satisfaction?

Given the following information:
Interest Sensitive Assets = $300 30-day Commercial Paper
Interest Sensitive Liabilities = $400 90-day CDs
30-day commercial paper is 50 percent as volatile as 90-day T-bills
90-day CDs are 120 percent as volatile as 90-day T-bills
Calculate the standardized gap for the bank.

You are considering investing in a zero-coupon bond that sells for $500. At maturity in 8 years, it will be redeemed for $1,000. During the life of the bond NO interest coupons will be paid. Using the Rule of 72, what approximate annual rate of growth does this represent?

You are considering borrowing $100,000 for 30 years at a compound annual interest rate of 9 percent. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. (Payments include both principal and interest.) What is the annual payment that will fully amortize the loan?

According to SEBI rules, at least ________ of funds collected, after paying for expenses, taxes and repayment of external debt, should be passed on to investors every six months.

The ______________ shall ensure that subscription amount is kept in a separate bank account in name of the InvIT and is only utilized for adjustment against allotment of units or refund of money to the applicants till the time such units are listed.

The _____________ shall undertake operations and management of the InvIT assets including making arrangements for the appropriate maintenance, as may be applicable, either directly or through the appointment and supervision of appropriate agents and as required under any project agreement including a concession agreement in the case of a PPP project.

Category I foreign portfolio investor” include Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled or at least _______________ directly or indirectly owned by such Government and Government related investors.

A foreign portfolio investor shall not be a party to or instrumental for

What is the laundering stage that separates the illicit money from its source, obscures the audit trail and severs links with the original crime to make it appear like a normal financial transaction called?

Under KYC Norms, the expression, while opening an account in case of partnership firm, one of the vital document to be produced by the firm is

A regulatory body, in the context of financial markets, is a regulator for ensuring that the financial markets are fair, efficient and transparent. It strives to reduce the systemic risk to protect the investor. The regulator should aim for

A(n) ______________ is any contract whereby an investor invests money or other consideration in a common enterprise and expects to make a profit from the significant efforts of others.

An issue of securities that does not involve a public offering is exempt from the registration requirements. This exemption, known as the _______________ exemption, allows issuers to raise capital from an unlimited number of accredited investors without having to register the offering with the Securities and Exchange Commission (SEC).