1.
Which of the following represent the correct Pre-Opening Session time on NSE & BSE ?
Correct Answer
C. 9.00- 9.15 AM
Explanation
The correct answer is 9.00- 9.15 AM. This represents the correct Pre-Opening Session time on both NSE and BSE. During this session, orders can be placed and modified but no trades are executed.
2.
Everyday, Closing Price of a Share is same as Last traded price of the Share at time of market closing.
Correct Answer
B. False
Explanation
The statement is false because the closing price of a share is not always the same as the last traded price at the time of market closing. The closing price is determined by taking the average of the prices at which the shares were traded during the closing minutes of the trading session. It may not necessarily be the same as the last traded price, as there could be multiple trades happening at different prices during the closing minutes.
3.
A stock ABC ltd has a circuit filter limit of 20%, what will be its upper and lower price band respectively if the previous day's close was 150?
Correct Answer
A. 180 and 120 respectively
Explanation
The circuit filter limit is a mechanism used by stock exchanges to control the price fluctuations of a stock. It sets a maximum and minimum price band within which the stock can trade in a single trading session. In this case, the circuit filter limit is 20% of the previous day's close price of 150. To calculate the upper price band, we add 20% of 150 to the previous day's close, resulting in 180. To calculate the lower price band, we subtract 20% of 150 from the previous day's close, resulting in 120. Therefore, the upper and lower price bands are 180 and 120 respectively.
4.
Suppose, if at 9.31 AM A has put order to buy 1000 shares of ABC Ltd @ 100.05
and at 9.33 AM B has put order to buy 100 shares of ABC Ltd @ 100.10
Which of the A or B will get a first preference to execute the order?
Correct Answer
B. B
Explanation
B will get the first preference to execute the order because B placed the order at a later time, 9.33 AM, while A placed the order at 9.31 AM. In general, orders are executed on a first-come, first-served basis, so the order placed later will be given priority.
5.
Which of the following represent the correct Tick size of Nifty Future ?
Correct Answer
C. 0.05
Explanation
The correct tick size of Nifty Future is 0.05. Tick size refers to the minimum price movement of a futures contract. In the case of Nifty Future, the tick size is 0.05, which means that the contract can move in increments of 0.05 points. This information is important for traders and investors as it helps them determine the potential profit or loss on their positions and set appropriate stop-loss and take-profit levels.
6.
Which of the following is the Correct set of Circuit limit of an Indices ?
Correct Answer
C. 10%,15% & 20%
Explanation
The correct answer is 10%, 15% & 20%. This set of circuit limits indicates the maximum percentage by which the indices can fluctuate in a trading session. Circuit limits are put in place to prevent excessive volatility in the market and protect investors from sudden and drastic price movements. In this case, the indices are allowed to fluctuate up to 10% before a circuit breaker is triggered, which temporarily halts trading. If the indices continue to rise or fall, additional circuit breakers are triggered at 15% and 20% respectively.
7.
Which 3 of the followings are major features of Derivatives?
Correct Answer(s)
A. Lot Size
B. Expiry
D. Short Selling till Expiry
Explanation
The major features of derivatives include lot size, expiry, and short selling till expiry. Lot size refers to the standardized quantity of the underlying asset that is traded in each derivative contract. Expiry refers to the date on which the derivative contract expires and settles. Short selling till expiry is the ability to sell a derivative contract before its expiry date, allowing investors to profit from a decline in the price of the underlying asset. These three features are significant components of derivatives trading and play a crucial role in the functioning of the market.
8.
BankNifty Index constitutes of ____ leading Banking Sector stocks.
Correct Answer
D. 12
Explanation
BankNifty Index constitutes of 12 leading Banking Sector stocks.
9.
Put Option is a type of Derivative.
Correct Answer
A. True
Explanation
A put option is a type of derivative because it derives its value from an underlying asset, such as a stock or a commodity. A put option gives the holder the right, but not the obligation, to sell the underlying asset at a predetermined price within a specific time period. This means that the value of the put option is directly linked to the price movement of the underlying asset. Therefore, a put option meets the definition of a derivative, which is a financial instrument whose value is derived from an underlying asset.
10.
In Stock Future product offered by DG, at a time maximum 2 Open positions are maintained.
Correct Answer
A. True
Explanation
In the Stock Future product offered by DG, it is stated that at any given time, a maximum of 2 open positions are maintained. This means that DG allows customers to have a maximum of 2 active positions in the Stock Future product.
11.
One can expect minimum return of ____ in Stock Cash with investment of 60K.
Correct Answer
D. 12000
Explanation
The question asks for the minimum return one can expect in Stock Cash with an investment of 60K. Out of the given options, the lowest amount is 12000. Therefore, the correct answer is 12000.
12.
Which of the following is correct market timing of NCDEX? (Agri business only)
Correct Answer
A. 10.00 - 17.00
Explanation
The correct market timing for NCDEX (Agri business only) is from 10.00 to 17.00.
13.
What is the expected minimum return after deducting the brokerage and subscription charges in HNI Consult Pack on monthly basis?
Correct Answer
B. 15-20% return on investment
Explanation
The expected minimum return after deducting the brokerage and subscription charges in HNI Consult Pack on a monthly basis is 15-20% return on investment. This means that after accounting for the charges, the minimum return that can be expected is between 15% and 20% of the initial investment.
14.
US/UK Economic data impacts very much on MCX Commodity prices.
Correct Answer
A. True
Explanation
The statement is true because the US and UK economic data have a significant impact on MCX commodity prices. This is because both countries are major players in the global economy and their economic performance can influence the demand and supply dynamics of commodities. For example, if the US and UK economies are growing strongly, it can lead to increased demand for commodities, driving up prices. Conversely, if there is a slowdown or recession in these economies, it can reduce demand for commodities, causing prices to decrease. Therefore, monitoring and analyzing US and UK economic data is crucial for understanding and predicting commodity price movements.
15.
What all segments of Equity market will be covered in HNI plan?
Correct Answer
D. All the listed segments
Explanation
The HNI plan will cover all segments of the equity market, including the cash market (both intraday and delivery), future market (both intraday and positional), and options market (both intraday and delivery). This means that clients who opt for the HNI plan will have access to trading opportunities in all these segments.
16.
Which of the below mentioned counter is of Energy segment?
Correct Answer
C. Crude Oil
Explanation
Crude oil is considered as a counter in the Energy segment because it is a major source of energy worldwide. It is a fossil fuel that is refined into various products such as gasoline, diesel, and jet fuel, which are used to power vehicles and machinery. Additionally, crude oil is also used in the production of plastics, chemicals, and other industrial products. Therefore, out of the options given, crude oil is the only counter that belongs to the Energy segment.
17.
What will be the profit in Aluminum, CRUDE OIL and NATURAL GAS respectively, if prices moves to 1 Rs. Or 1 point?
Correct Answer
A. 5000,100,1250
18.
Which of the following are the main objectives of SEBI?
Correct Answer
D. All of the Listed
Explanation
The main objectives of SEBI are to protect the interest of investors in the securities market, promote the development of the securities market, and ensure the fair and transparent functioning of the market. Additionally, SEBI is responsible for regulating and supervising the activities of market intermediaries and enforcing securities laws to maintain market integrity.
19.
If an order does not find a match in the trading system, it is _____
Correct Answer
D. Removed from the trading system at the end of the day
Explanation
If an order does not find a match in the trading system, it is removed from the trading system at the end of the day. This means that if the order is not executed or matched with a counterparty by the end of the trading day, it will be canceled and no longer active in the system. This ensures that only valid and active orders are present in the trading system for the next trading day.
20.
When do Futures and option contract expires on NSE?
Correct Answer
D. Last Thursday of the month
Explanation
Futures and option contracts on NSE expire on the last Thursday of the month. This is a standard practice in the financial markets, where contracts are typically set to expire on specific dates to provide clarity and consistency for traders and investors. By having a set expiration date, participants in these markets can plan their trading strategies accordingly and avoid any confusion or ambiguity regarding contract expirations.
21.
In which of the products below we do not provide any Stop Loss with our Buy/Sell SMS?
Correct Answer
D. None of the Above
Explanation
The correct answer is "None of the Above" because the question is asking which product does not provide any Stop Loss with their Buy/Sell SMS. Since all the products listed (Stock Cash, Stock Futures, Nifty Futures) do provide Stop Loss with their Buy/Sell SMS, the correct answer is "None of the Above".
22.
As of today which of the following represent the correct timing for (Bullion, Energy and Metals) MCX on Saturdays?
Correct Answer
D. Remains Close
Explanation
The correct answer is "Remains Close". This means that on Saturdays, the MCX (Multi Commodity Exchange) for Bullion, Energy, and Metals remains closed.
23.
Which of the following is the correct Regulator for NSE and BSE?
Correct Answer
C. Securities exchange board of India
Explanation
The correct regulator for NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) is the Securities Exchange Board of India (SEBI). SEBI is the regulatory body that oversees the functioning and operations of the stock exchanges in India. It is responsible for regulating and supervising the securities market, protecting the interests of investors, and ensuring fair and transparent trading practices.
24.
We provide calls in NSE rather that BSE because the volumes in NSE are higher?
Correct Answer
A. True
Explanation
The explanation for the given correct answer is that higher volumes in NSE (National Stock Exchange) indicate greater liquidity and more active trading, which can lead to better price discovery and tighter bid-ask spreads. This makes it more favorable for traders and investors as they can execute their trades more easily and at potentially better prices. Therefore, providing calls in NSE rather than BSE (Bombay Stock Exchange) is a logical choice.
25.
One Client is selling Nifty 6000 Put Option, it shows _______
Correct Answer
B. Client is Positive on Nifty
Explanation
The client selling a put option indicates that they have a positive outlook on the underlying asset, in this case, Nifty. By selling a put option, the client is essentially agreeing to buy the asset at a specific price (the strike price) if the price of Nifty falls below that level. This suggests that the client is confident that the price of Nifty will not decline significantly, or they are willing to buy it at a lower price if it does. Therefore, the correct answer is "Client is Positive on Nifty."
26.
MCX Commodities movement is governed by which of the below factors?
Correct Answer
D. All of the listed
Explanation
MCX Commodities movement is influenced by multiple factors including currency movement, COMEX prices, and US and Europe market data. Currency movement plays a crucial role as it affects the value of commodities traded on the MCX. Fluctuations in currency exchange rates can impact the buying power of traders and affect the demand and supply dynamics of commodities. COMEX prices, which represent the global benchmark for commodities, also have a significant impact on MCX commodity prices. Lastly, market data from the US and Europe provides valuable information about global trends and market sentiment, which can influence the direction of MCX commodity prices. Therefore, all of the listed factors contribute to the movement of MCX commodities.
27.
A stock is currently trading at Rs. 50. The call option to buy the stock at Rs.45 costs Rs.9. Lot size for the contract is 2000. What will be the investment of the customer if he buys one lot of the contract?
Correct Answer
C. 18000
Explanation
If the customer buys one lot of the contract, they will have to pay the cost of the call option, which is Rs. 9 per share. Since the lot size is 2000, the total cost of the call option for one lot would be 2000 * Rs. 9 = Rs. 18,000. Therefore, the investment of the customer if they buy one lot of the contract would be Rs. 18,000.