Capital Marcket MCQs
Capital Marcket MCQs
Our team has conducted extensive research to compile a set of Capital Marcket MCQs. We encourage you to test your Capital Marcket knowledge by answering these 30 multiple-choice questions provided below.
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1: If a client buys shares worth Rs. 1,00,000 and sells shares worth Rs. 1,00,000 through a stock-broker, then the maximum brokerage payable is _______.
A. Rs. 4,000
B. Rs. 5,000
C. Rs. 2,000
D. Rs. 6,000
2: Two sell orders enter into the system and are unmatched : 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.70 at time 10:31 a.m. Which order will get a priority for getting executed.
A. Order no. 1.
B. Order no. 2
C. Both will have equal priority
D. None
3: The Trading Members shall keep the dematerialized securities of Constituents in a separate beneficiary account distinct from the beneficiary account maintained for holding their own dematerialized securities. True or False?
A. True
B. False
4: If a client buys shares worth Rs. 5,25,000 and sells shares worth Rs. 4,75,000 through a broker, then the maximum brokerage payable to broker is ___.
A. Rs. 25,000
B. Rs. 15,000
C. Rs. 10,000
D. Rs. 20,000
5: On Line Backup is a facility that the user can invoke to take a backup of all order and trade related information for the user. True or False.
A. True
B. False
6: Mr. Shah has decided to deposit Rs. 300,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 12% how much would his deposit grow upto in 3 years?
A. 1,234,146.15
B. 1,113,502.54
C. 1,085,123.70
D. 1,083,467.63
7: What does ‘AUI’ indicate as a message code in 'Full Message window' in the NEAT system?
A. Auction Initiation Messages
B. Auction User Interface messages
C. All messages related to user interface
D. All messages related to Auctions
8: Institutional transactions are identified by the use of the ________ at the time of order entry.
A. User code
B. User id
C. Participant code
D. Client id
9: The NSCCL interposes itself as a central counterparty between the counterparties to trades and nets the positions so that a member has security wise net obligation to receive or deliver a security and has to either pay or receive funds. True or False?
A. True
B. False
10: A user can simultaneously view a regular inquiry (e.g. MBP) and the Snap Quote display on the trading screen. True or False?
A. True
B. False
11: What does OM indicate as an activity in the Activity Log screen in the NEAT system?
A. Order Matched
B. Order Cancelled
C. Trade Modified
D. Order Modified
12: The clients introduced by an authorized person to a trading member, would be required to deliver securities and make payments directly in the trade name of the trading member. True or False?
A. True
B. False
13: At the end of the trade cycle, the trades are _______ to determine the obligations of the trading members to deliver securities/funds as per settlement schedule.
A. Grossed
B. Aggregated
C. Netted
D. Offset
14: ______ is a volume related order condition.
A. An order with a limit price condition only
B. An order with a stop loss only
C. An order with a Disclosed Quantity (DQ)
D. None of the above
15: 100 share of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, settlement should take place on ______ ?
A. Wednesday (T+2)
B. Tuesday (T+1)
C. Thursday (T+3)
D. Friday (T+4)
16: A trading member on the NSE, has a branch order value of Rs. 950 lakh for his Mumbai branch and Rs. 600 lakh for Delhi branch. Mumbai branch has two users X and Y with user order value limits of Rs. 300 lakh and Rs. 400 lakh respectively. Delhi branch has one user Z with user order value limit of Rs. 550 lakh. The member applies for a new user at Mumbai. What is the maximum user order value that can be set for the new user?
A. Rs. 100 lakh
B. Any amount, as there is no restriction on User Order Value
C. Rs. 250 lakh
D. Rs. 150 lakh
17: A trading member on the NSE, has set the branch order value unlimited for his Chennai branch and Rs. 800 lakh for Kolkata branch. Chennai branch has two users X and Y with user order limits of Rs. 550 lakh and Rs. 500 lakh respectively. Kolkata branch has one user Z with user order value limit of Rs. 550 lakh. The member applies for a new user at Kolkata. What is the maximum user order value that can be set for the new user?
A. Not more than Rs. 950 lakh
B. Zero
C. Unlimited
D. Rs. 250 lakh
18: In case the security has not been traded on a particular day, ________ at the NSE is to be considered as the closing price.?
A. The average closing price for the last one week
B. The theoretical closing price
C. The latest available closing price
D. None of the above
19: Mr. Desai has decided to deposit Rs. 200,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 8% how much would his deposit grow upto in 2 years?
A. 434,141.15
B. 413,502.54
C. 485,123.70
D. 433,820.81
20: One of the Custodial Trade Reports is the ___________
A. Client Obligation Report
B. Custodial Trade Pending Confirmation
C. Clearing Member Report
D. None of the above
21: No payment for transaction in which a Trading Member is taking position as a principal will be allowed to be made from the client’s account?
A. True, unless his clients approves the payment
B. True
C. True, only if his clients are making payments on time
D. False
22: Statement 1 : An active buy order matches with the best passive sell order if the price of the passive sell order is less than or equal to the price of the active buy order. Statement 2 : An passive buy order matches with the best active sell order if the price of the passive buy order is less than or equal to the price of the active sell order. Which of the above statements is True?
A. Statement 2
B. Statement 1
C. Both Statement are true
D. Both Statement are False
23: NSCCL becomes the legal counterparty to the net settlement obligations of every member. This principle is called ______.
A. ‘notation’
B. ‘settlement fulfillment’
C. ‘novation
D. ‘obligation guarantee’
24: The Message Window in the NEAT system allows a user to view messages broadcast by the Exchange such as, __________
A. Corporate actions
B. Market news
C. Auctions related information
D. All of the above
25: ______ can be traded in the Limited Physical Market?
A. Illiquid shares
B. Futures and Options
C. Odd lots
D. Government Securities
26: For liquid securities, the VaR margins are based on the ________ of the Security.
A. Volatility
B. Returns
C. Liquidity
D. Exposure limit
27: Upfront margin rates applicable for all securities in Trade for Trade - segment (TT) is ______.
A. 50%
B. 100%
C. 200%
D. 150%
28: The stamp duty on transfer of demat securities has been waived. True or False?
A. True
B. False
29: In NSCCL, a _______ is a clearing member but not a trading member.
A. Self clearing member
B. Participant
C. Broker
D. Custodian
30: Securities and funds pay out takes place on ______ working days after the trade date
A. ‘T+3’
B. ‘T+2’
C. ‘T+1’
D. Within 24 hours of sale
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Capital Marcket MCQs
