Practice Test

Q1) NCFM stands for Show Answer

Q2) The only way an investor can manage risks in the underlying cash market is by ? Show Answer

Q3) When establishing a relationship with a new client, the trading member takes reasonable steps to assess the background, genuineness, beneficial identify financial soundness of such person and his investment /trading objectives. Show Answer

Q4) All the active members of the Exchange are required to make initial contribution towards Trade Guarantee Fund of the Exchange. Show Answer

Q5) A client registration form contains client’s ______. Show Answer

Q6) Any person who wishes to open a Trading Account must be given the following documents by his trading member – Show Answer

Q7) Which of the following is not the duty of the trading member? Show Answer

Q8) Which of the following is the duty of a trading member? Show Answer

Q9) One of the important duties of a trading member is to assess the financial soundness, genuineness & background of a new client. Show Answer

Q10) Usually as a level of risk rises, the expected rate of return on that investment should also rise. Show Answer

Q11) Which of the following is the duty of the trading member? Show Answer

Q12) Which of the following is required for personnel working in the industry in order to dispense quality intermediation? Show Answer

Q13) Investor protection fund for the derivative segment is _______. Show Answer

Q14) An investor who is less risk averse would like to have exposure to equity & other risky investments compared to fixed income investments. Show Answer

Q15) The system of SEBI which enables investors to lodge & follow up their complaints & track the status of redressal of such complaints from anywhere is called scores. Show Answer

Q16) An investor who is risk averse will invest more in FD & debt instrument than to equity market related investments. Show Answer

Q17) . _________ portfolio is recommended for medium term goals. Show Answer

Q18) Inflation increases the real income. Show Answer

Q19) For client with _________ term investment time frames reviews need to be carried out at more frequent investment. Show Answer

Q20) Investment that does not meet client risk profit need to be _________. Show Answer

Q21) ______risk is the component of price risk that is unique to particular events of the company and/or industry & this risk can be reduced to a certain extent by diversifying the portfolio. Show Answer

Q22) Which of the following complaints can be taken up by the exchange for redress? Show Answer

Q23) Churning means _____ Show Answer

Q24) In the Arbitration procedure, the arbitrator conducts the Arbitration proceeding & passes the award normally within a period of ____ months from the date of initial hearing. Show Answer

Q25) __________ is an individual or firm responsible for making investments on behalf of, and/ or providing advice to, investors. Show Answer

Q26) The greater risk accepted, the ________ must be the potential return. Show Answer

Q27) Generally speaking, the longer the time horizon, the _______ risk can be integrated into his financial expectations about the investments. Show Answer

Q28) ___________risk is referred to as ‘specific risk’. Show Answer

Q29) A single investment model if well shaped can be suitable for all investors. Show Answer

Q30) Value of money increases day by day due to inflation factor. Show Answer