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Unit 10 – Quiz

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  1. Current
  2. Review
  3. Answered
  4. Correct
  5. Incorrect
  1. Question 1 of 114
    1. Question

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

    Correct
    Incorrect
  2. Question 2 of 114
    2. Question

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

    Correct
    Incorrect
  3. Question 3 of 114
    3. Question

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

    Correct
    Incorrect
  4. Question 4 of 114
    4. Question

    Any insider shall be liable to a penalty of

    Correct
    Incorrect
  5. Question 5 of 114
    5. Question

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

    Correct
    Incorrect
  6. Question 6 of 114
    6. Question

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

    Correct
    Incorrect
  7. Question 7 of 114
    7. Question

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

    Correct
    Incorrect
  8. Question 8 of 114
    8. Question

    All of the following are examples of systematic risk Except

    Correct
    Incorrect
  9. Question 9 of 114
    9. Question

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

    Correct
    Incorrect
  10. Question 10 of 114
    10. Question

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

    Correct
    Incorrect
  11. Question 11 of 114
    11. Question

    What is venture capital?

    Correct
    Incorrect
  12. Question 12 of 114
    12. Question

    What is a red herring?

    Correct
    Incorrect
  13. Question 13 of 114
    13. Question

    What is a seasoned equity offering?

    Correct
    Incorrect
  14. Question 14 of 114
    14. Question

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

    Correct
    Incorrect
  15. Question 15 of 114
    15. Question

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

    Correct
    Incorrect
  16. Question 16 of 114
    16. Question

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

    Correct
    Incorrect
  17. Question 17 of 114
    17. Question

    The main function of syndicate members is

    Correct
    Incorrect
  18. Question 18 of 114
    18. Question

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

    Correct
    Incorrect
  19. Question 19 of 114
    19. Question

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

    Correct
    Incorrect
  20. Question 20 of 114
    20. Question

    Private placement involves selling securities directly to

    Correct
    Incorrect
  21. Question 21 of 114
    21. Question

    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

    Correct
    Incorrect
  22. Question 22 of 114
    22. Question

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

    Correct
    Incorrect
  23. Question 23 of 114
    23. Question

    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.

    Correct
    Incorrect
  24. Question 24 of 114
    24. Question

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

    Correct
    Incorrect
  25. Question 25 of 114
    25. Question

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

    Correct
    Incorrect
  26. Question 26 of 114
    26. Question

    The standardized gap adjusts for

    Correct
    Incorrect
  27. Question 27 of 114
    27. Question

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

    Correct
    Incorrect
  28. Question 28 of 114
    28. Question

    Indexing of bond portfolios is difficult because

    Correct
    Incorrect
  29. Question 29 of 114
    29. Question

    Cash flow matching on a multiperiod basis is referred to as

    Correct
    Incorrect
  30. Question 30 of 114
    30. Question

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

    Correct
    Incorrect
  31. Question 31 of 114
    31. Question

    An InvIT consists of which of the following elements?

    Correct
    Incorrect
  32. Question 32 of 114
    32. Question

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

    Correct
    Incorrect
  33. Question 33 of 114
    33. Question

    InvITs which invest in completed projects take the route of

    Correct
    Incorrect
  34. Question 34 of 114
    34. Question

    ____________ are the firms which set up the InvITs.

    Correct
    Incorrect
  35. Question 35 of 114
    35. Question

    The _______________ is responsible for executing the projects.

    Correct
    Incorrect
  36. Question 36 of 114
    36. Question

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

    Correct
    Incorrect
  37. Question 37 of 114
    37. Question

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

    Correct
    Incorrect
  38. Question 38 of 114
    38. Question

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

    Correct
    Incorrect
  39. Question 39 of 114
    39. Question

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

    Correct
    Incorrect
  40. Question 40 of 114
    40. Question

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

    Correct
    Incorrect
  41. Question 41 of 114
    41. Question

    Which of these is the biggest potential risk area?

    Correct
    Incorrect
  42. Question 42 of 114
    42. Question

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

    Correct
    Incorrect
  43. Question 43 of 114
    43. Question

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

    Correct
    Incorrect
  44. Question 44 of 114
    44. Question

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

    Correct
    Incorrect
  45. Question 45 of 114
    45. Question

    The process of money laundering is perpetrated by

    Correct
    Incorrect
  46. Question 46 of 114
    46. Question

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

    Correct
    Incorrect
  47. Question 47 of 114
    47. Question

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

    Correct
    Incorrect
  48. Question 48 of 114
    48. Question

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

    Correct
    Incorrect
  49. Question 49 of 114
    49. Question

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

    Correct
    Incorrect
  50. Question 50 of 114
    50. Question

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

    Correct
    Incorrect
  51. Question 51 of 114
    51. Question

    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?

    Correct
    Incorrect
  52. Question 52 of 114
    52. Question

    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.

    Correct
    Incorrect
  53. Question 53 of 114
    53. Question

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

    Correct
    Incorrect
  54. Question 54 of 114
    54. Question

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

    Correct
    Incorrect
  55. Question 55 of 114
    55. Question

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

    Correct
    Incorrect
  56. Question 56 of 114
    56. Question

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

    Correct
    Incorrect
  57. Question 57 of 114
    57. Question

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

    Correct
    Incorrect
  58. Question 58 of 114
    58. Question

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

    Correct
    Incorrect
  59. Question 59 of 114
    59. Question

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

    Correct
    Incorrect
  60. Question 60 of 114
    60. Question

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

    Correct
    Incorrect
  61. Question 61 of 114
    61. Question

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

    Correct
    Incorrect
  62. Question 62 of 114
    62. Question

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

    Correct
    Incorrect
  63. Question 63 of 114
    63. Question

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

    Correct
    Incorrect
  64. Question 64 of 114
    64. Question

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

    Correct
    Incorrect
  65. Question 65 of 114
    65. Question

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

    Correct
    Incorrect
  66. Question 66 of 114
    66. Question

    The total direct costs of underwriting an equity IPO

    Correct
    Incorrect
  67. Question 67 of 114
    67. Question

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

    Correct
    Incorrect
  68. Question 68 of 114
    68. Question

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

    Correct
    Incorrect
  69. Question 69 of 114
    69. Question

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

    Correct
    Incorrect
  70. Question 70 of 114
    70. Question

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

    Correct
    Incorrect
  71. Question 71 of 114
    71. Question

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

    Correct
    Incorrect
  72. Question 72 of 114
    72. Question

    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.

    Correct
    Incorrect
  73. Question 73 of 114
    73. Question

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

    Correct
    Incorrect
  74. Question 74 of 114
    74. Question

    Which of the following statements is most correct?

    Correct
    Incorrect
  75. Question 75 of 114
    75. Question

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

    Correct
    Incorrect
  76. Question 76 of 114
    76. Question

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

    Correct
    Incorrect
  77. Question 77 of 114
    77. Question

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

    Correct
    Incorrect
  78. Question 78 of 114
    78. Question

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

    Correct
    Incorrect
  79. Question 79 of 114
    79. Question

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

    Correct
    Incorrect
  80. Question 80 of 114
    80. Question

    ________________ 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.

    Correct
    Incorrect
  81. Question 81 of 114
    81. Question

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

    Correct
    Incorrect
  82. Question 82 of 114
    82. Question

    ______________ 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.

    Correct
    Incorrect
  83. Question 83 of 114
    83. Question

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

    Correct
    Incorrect
  84. Question 84 of 114
    84. Question

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

    Correct
    Incorrect
  85. Question 85 of 114
    85. Question

    Letter of thanks is sent to introducer because it is

    Correct
    Incorrect
  86. Question 86 of 114
    86. Question

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

    Correct
    Incorrect
  87. Question 87 of 114
    87. Question

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

    Correct
    Incorrect
  88. Question 88 of 114
    88. Question

    The government regulates financial markets for three main reasons

    Correct
    Incorrect
  89. Question 89 of 114
    89. Question

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

    Correct
    Incorrect
  90. Question 90 of 114
    90. Question

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

    Correct
    Incorrect
  91. Question 91 of 114
    91. Question

    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

    Correct
    Incorrect
  92. Question 92 of 114
    92. Question

    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

    Correct
    Incorrect
  93. Question 93 of 114
    93. Question

    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.

    Correct
    Incorrect
  94. Question 94 of 114
    94. Question

    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

    Correct
    Incorrect
  95. Question 95 of 114
    95. Question

    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?

    Correct
    Incorrect
  96. Question 96 of 114
    96. Question

    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

    Correct
    Incorrect
  97. Question 97 of 114
    97. Question

    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

    Correct
    Incorrect
  98. Question 98 of 114
    98. Question

    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

    Correct
    Incorrect
  99. Question 99 of 114
    99. Question

    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.

    Correct
    Incorrect
  100. Question 100 of 114
    100. Question

    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

    Correct
    Incorrect
  101. Question 101 of 114
    101. Question

    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?

    Correct
    Incorrect
  102. Question 102 of 114
    102. Question

    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.

    Correct
    Incorrect
  103. Question 103 of 114
    103. Question

    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?

    Correct
    Incorrect
  104. Question 104 of 114
    104. Question

    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?

    Correct
    Incorrect
  105. Question 105 of 114
    105. Question

    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.

    Correct
    Incorrect
  106. Question 106 of 114
    106. Question

    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.

    Correct
    Incorrect
  107. Question 107 of 114
    107. Question

    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.

    Correct
    Incorrect
  108. Question 108 of 114
    108. Question

    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.

    Correct
    Incorrect
  109. Question 109 of 114
    109. Question

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

    Correct
    Incorrect
  110. Question 110 of 114
    110. Question

    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?

    Correct
    Incorrect
  111. Question 111 of 114
    111. Question

    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

    Correct
    Incorrect
  112. Question 112 of 114
    112. Question

    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

    Correct
    Incorrect
  113. Question 113 of 114
    113. Question

    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.

    Correct
    Incorrect
  114. Question 114 of 114
    114. Question

    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).

    Correct
    Incorrect

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