41. Prospectus is not issued in
A. public issue
B. private placement
C. right issue
D. none the above
Answer
B. private placement
42. An issuer need not file an offer document in case of
A. public issue
B. preferential allotment
C. right issue
D. bought out deal
Answer
B. preferential allotment
43. An issuer can launch an IPO within ___
A. 3 months
B. 6 months
C. 9 months
D. one year
Answer
B. 6 months
44. An issue of a minimum size of Rs. ___ crore is a mega issue
A. 50
B. 100
C. 150
D. 300
Answer
B. 100
45. Financial institutions are also known as ___.
A. Financial organisation
B. Financial intermediaries
C. Financial system
D. Any of the above
Answer
B. Financial intermediaries
46. ___. is the first development financial institution in India.
A. IDBI
B. ICICI
C. IFCI
D. RBI
Answer
C. IFCI
47. Management Development Institute (MDI) was set up by ___.
A. IDBI
B. ICICI
C. IFCI
D. SEBI
Answer
C. IFCI
48. IDBI was established in ___.
A. 1948
B. 1954
C. 1992
D. 1964
Answer
D. 1964
49. ___. is an apex institution to coordinate, supplement and integrate theactivities of all existing specialised financial institutions.
A. IFCI
B. IDBI
C. RBI
D. SEBI
Answer
B. IDBI
50. Hedging through futures contracts
A. increases risk of loss if prices fall
B. eliminates profit maximization potential
C. is considered to be speculative in nature
D. all of the above
Answer
B. eliminates profit maximization potential
51. In what city are the two largest commodities exchanges?
A. Chicago
B. New York
C. Kansas City
D. Minneapolis
Answer
A. Chicago
52. The financial futures market has evolved over recent time because of
A. volatility and risk in the foreign exchange markets
B. volatility of interest rates
C. appeal to speculators due to low margin requirements
D. all of the above
Answer
D. all of the above
53. While hedging through interest rate futures reduces or eliminates the risk of loss, it also
A. is illegal in some cases.
B. has not been accepted by most corporate financial managers.
C. eliminates the possibility of an abnormal gain.
D. none of the above.
Answer
C. eliminates the possibility of an abnormal gain.
54. Margin requirements on commodities contracts
A. are much higher than those on common stock transactions.
B. vary over time and even among exchanges for a given commodity.
C. typically, are 2 to 10 percent of the value of the contract.
D. none of the above are true.
Answer
C. typically, are 2 to 10 percent of the value of the contract.
55. Which of the following can be the underlying for a commodity derivative contract?
A. Interest Rate
B. Euro-Indian Rupee
C. Gold
D. NIFTY
Answer
C. Gold
56. Daily mark to market settlement is done ___
A. Till the date of contract expiry
B. As long as the contract makes a loss
C. On the last day of week
D. On the last trading day of the month
Answer
A. Till the date of contract expiry
57. ___ is the actual process of exchanging money and goods.
A. Transfer
B. Settlement
C. Netting
D. Clearing
Answer
B. Settlement
58. ___ work at making profits by taking advantage of discrepancy between prices of thesame product across different markets.
A. Arbitragers
B. Speculators
C. Exchange
D. Hedgers
Answer
A. Arbitragers
59. Commodity exchanges enable producers and consumer to hedge their ___ given theuncertainty of the future.
A. seasonal risk
B. profit risk
C. production risk
D. price risk
Answer
D. price risk
60. Which of the following is not true about the national level exchanges?
A. Offers online trading
B. Recognised on permanent basis
C. Offers single commodity for trading
D. Volumes higher than regional exchanges
Answer
C. Offers single commodity for trading
61. ___ Exchanges provide real time, online, transparent and vibrant spot platform forcommodities.
A. Electronic Spot
B. Regional
C. Futures
D. Stock
Answer
A. Electronic Spot
62. ___ can only trade through their account or on account of their clients and however cleartheir trade through PCMs/STCMs.
A. Trading cum Clearing Member
B. Trading Member
C. Commodity Participant
D. Associate Member
Answer
B. Trading Member
63. The minimum net worth requirement for PCM on the NCDEX is ___
A. 50 Lakh
B. 500 Lakh
C. 5000 Lakh
D. 5 Lakh
Answer
C. 5000 Lakh
64. Members of commodity market can opt to meet the security deposit requirement by way of ___
A. Cash
B. Bank Guarantee
C. Fixed Deposit Receipts
D. All of the above
Answer
D. All of the above
65. In the case of certain commodities like gold and silver, delivery is staggered over last ___ days of the contract.
A. Two
B. Three
C. Five
D. Thirteen
Answer
C. Five
66. Unit of trading for Wheat at NCDEX is ___
A. 1 MT
B. 3 MT
C. 1 kg
D. 10 MT
Answer
D. 10 MT
67. At present how many national commodity exchanges are operating in India?
A. 8
B. 7
C. 6
D. 10
Answer
C. 6
68. Regulatory body of commodity market in India is ___
A. FMC
B. NCX
C. ICE
D. ICRA
Answer
A. FMC
69. Forward Market Commission (FMC) established in the year ___
A. 1948
B. 1964
C. 1953
D. 1952
Answer
C. 1953
70. FMC merged with SEBI in the year ___
A. 1994
B. 2008
C. 2015
D. 2016
Answer
C. 2015
71. The year of establishment of National Multi- Commodity Exchange (NMCE) was ___
A. 2002
B. 2003
C. 2004
D. 2005
Answer
A. 2002
72. The Headquarters of NMCE is ___
A. New Delhi
B. Ahmedabad
C. Mumbai
D. Calcutta
Answer
B. Ahmedabad
73. ___ is the world’s largest exchange in silver and gold
A. NMCE
B. MCX
C. ICEX
D. NCDEX
Answer
B. MCX
74. ___ holds 86% market share of commodity exchange in India
A. NMCE
B. MCX
C. ICEX
D. NCDEX
Answer
B. MCX
75. Headquarters of Multi Commodity Exchange in India (MCX) is ___
A. New Delhi
B. Ahmedabad
C. Mumbai
D. Calcutta
Answer
C. Mumbai
76. NCDEX stands for ___
A. National Commodity Development Exchange
B. National Commodity and Derivatives Exchange
C. Natural Commodity and Development Exchange
D. None of these
Answer
B. National Commodity and Derivatives Exchange
77. In ___ NSE and BSE launched trading in commodities.
A. 2016
B. 2017
C. 2018
D. 2015
Answer
C. 2018
78. The oldest Commodity market in India is ___
A. NMCE
B. MCX
C. ICEX
D. NCDEX
Answer
A. NMCE
79. In the year 2018 NMCE merged with ___
A. UCX
B. MCX
C. ICEX
D. NCDEX
Answer
C. ICEX
80. ACE Derivatives Exchange Ltd is the commodity exchange developed in ___
A. America
B. Australia
C. Afghanistan
D. None of these
Answer
D. None of these
