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Knowledge Quizzes & Trivia

Questions and Answers
  • 1. 

      Arrange the following Equity markets in ascending order of their Opening Timing        India   Singapore   Germany   US   Australia        

    • A.

      Australia,Germany,Singapore,India,US

    • B.

      Australia,Singapore,Germany,India,US

    • C.

      Australia,Singapore,India,Germany,US

    • D.

      Singapore,Australia,India,Germany,US

    Correct Answer
    C. Australia,Singapore,India,Germany,US
    Explanation
    The correct answer is Australia, Singapore, India, Germany, US. This is the correct order of the equity markets in ascending order of their opening timing. Australia opens first, followed by Singapore, India, Germany, and finally the US.

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  • 2. 

    Nasdaq & Dow closed higher yesterday on Strong Dollar flows from Emerging markets as Investors Hunt for Safe Heaven. Your Clients asks You how Indian Equity  market will open today on this news. You advise :

    • A.

      Indian markets will open lower today

    • B.

      Indian markets will open higher today

    • C.

      Indian markets will have no impact

    • D.

      I will consult Research & Let You Know

    Correct Answer
    A. Indian markets will open lower today
    Explanation
    The given correct answer suggests that the Indian markets will open lower today. This is because the statement mentions that there were strong dollar flows from emerging markets, which indicates that investors are moving their money out of emerging markets like India. This outflow of funds can lead to a decrease in demand for Indian stocks, causing the market to open lower.

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  • 3. 

    BRICS is an acronym for which Group of Countries ?

    • A.

      Brazil,Russia,India,China,South Korea

    • B.

      Brazil,Russia,India,China,Singapore

    • C.

      Brazil,Russia,India,China,South Africa

    • D.

      Brazil,Romania,India,China,South Korea

    Correct Answer
    C. Brazil,Russia,India,China,South Africa
    Explanation
    BRICS is an acronym for Brazil, Russia, India, China, and South Africa. These countries are considered to be emerging economies with significant influence in the global economy. They form a group that collaborates on various economic and political issues, such as trade, investment, and development. South Korea and Singapore are not part of the BRICS group.

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  • 4. 

    _________ is the present Chairman of US Federal Reserve

    • A.

      Ben Bernanke

    • B.

      Angela Morkel

    • C.

      Janet Yallen

    • D.

      Allen Greeenspan

    Correct Answer
    C. Janet Yallen
    Explanation
    Janet Yellen is the correct answer because she is the present Chairman of the US Federal Reserve.

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  • 5. 

    11 months back Your Client had purchased 1000 TCS @ 1500. Today it quotes at 2200 in Cash segment and next month futures quote at a discounted rate of 2190 in Futures segment. Client wants to book profit  as he is uncertain about the Election outcome. You advise him to :

    • A.

      Sale In Cash segment as it has better rate than Futures

    • B.

      Hold in Cash segment, Sale in Futures now and after 1 month Buy in Futures & Sale in Cash on Expiry

    • C.

      Hold in Cash segment, Sell Call 2200 Strike price quoting @ Rs 50 and then Sale in Cash next month

    • D.

      Hold for 1 month

    Correct Answer
    B. Hold in Cash segment, Sale in Futures now and after 1 month Buy in Futures & Sale in Cash on Expiry
  • 6. 

    RBI in its Policy keeps the Rates unchanged, fears higher inflation in the coming months. How would You expect the Banking stocks to react ?

    • A.

      Bullish

    • B.

      Bearish

    • C.

      Unchanged

    Correct Answer
    B. Bearish
    Explanation
    The correct answer is "Bearish". If the RBI keeps the rates unchanged and expresses concerns about higher inflation in the coming months, it indicates that the central bank is not taking any measures to stimulate the economy. This can be seen as a negative signal for banking stocks as it suggests that borrowing costs will remain high and economic growth may be impacted. Consequently, investors may be less inclined to invest in banking stocks, leading to a bearish reaction in the market.

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  • 7. 

    Your Client is a Salaried employee in 20% bracket and does F&O trades (Intra-day only) and earns 3 lacs from F&O segment in 2013-14. He seeks Your advice on the tax treatment. You advise :

    • A.

      To consider it as Other Income

    • B.

      To consider it as Business Income

    • C.

      To consider it as Speculation Income

    • D.

      To be added to the Salary Income

    Correct Answer
    B. To consider it as Business Income
    Explanation
    The correct answer is to consider it as Business Income. This is because the client is engaged in F&O trades on an intra-day basis, which is considered as a business activity. Therefore, the income earned from these trades should be treated as business income for tax purposes.

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  • 8. 

    Infosys has seen a sharp fall in Open Interest with Price falling by 2% post results. You interpret it as :

    • A.

      Long Build Up

    • B.

      Short Build Up

    • C.

      Long unwinding

    • D.

      Short unwinding

    Correct Answer
    C. Long unwinding
    Explanation
    Long unwinding refers to the closing of existing long positions in a stock or security. In this scenario, Infosys has seen a sharp fall in Open Interest, indicating that traders are closing their long positions. Additionally, the price of Infosys has fallen by 2% after the results, further supporting the interpretation of long unwinding.

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  • 9. 

    A Client has a Equity Mutual Fund portfolio of 20 lacs having beta of 1.1 with Nifty which means if Nifty rises by 1%,   his MF portfolio rises by 1.1% and vice-versa in case of a fall. He wants to hedge his portfolio through the Options route ahead of the Election outcome. You suggest him to 

    • A.

      Buy Nifty Call amounting to approx. 22 lacs

    • B.

      Sell Nifty Call amounting to approx. 22 lacs

    • C.

      Buy Nifty Put amounting to approx. 22 lacs

    • D.

      Buy Nifty Put amounting to approx. 18 lacs

    Correct Answer
    C. Buy Nifty Put amounting to approx. 22 lacs
  • 10. 

    Which of the following positions can be called Long Strangle ?

    • A.

      Buy Nifty Call 6800, Sell Nifty Call 6800 next month

    • B.

      Buy Nifty Call 6800, Buy Nifty Put 6800 same month

    • C.

      Buy Nifty Put 6800, Sell Nifty Put 6800 next month

    • D.

      Buy Nifty Call 7000, Buy Nifty Put 6600 same month

    Correct Answer
    D. Buy Nifty Call 7000, Buy Nifty Put 6600 same month
    Explanation
    A long strangle is an options strategy where an investor buys both a call option and a put option with the same expiration date but different strike prices. This strategy is used when the investor expects a significant price movement in the underlying asset but is unsure of the direction. In this case, buying the Nifty Call 7000 and buying the Nifty Put 6600 in the same month satisfies the criteria for a long strangle as it involves buying both a call and put option with different strike prices.

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  • 11. 

    Your Client is very Bullish on the markets post election results but yet does not want to take much risk as he feels 5% chance of his going wrong. He asks You to suggest suitable strategy. Your advise him to :

    • A.

      Buy a Nifty Future

    • B.

      Buy a Nifty Call

    • C.

      Buy a Nifty Put

    • D.

      Buy both Nifty Call & Put

    Correct Answer
    B. Buy a Nifty Call
    Explanation
    Buying a Nifty Call option allows the client to participate in the bullish market while limiting the risk to the premium paid for the option. This strategy gives the client the right to buy the Nifty index at a predetermined price (strike price) within a specific time period (expiry date). If the market goes up, the client can exercise the option and profit from the price difference. If the market goes against the client's prediction, the maximum loss is limited to the premium paid for the option. This strategy aligns with the client's bullish outlook while managing the risk.

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  • 12. 

    Your Client is willing to risk very small amount but get big rewards if he gets his views right. He is expecting market to correct by 10% post election results. Choose the stratgy which has highest Return to Risk ratio :

    • A.

      Buy Deep out of the Money Put

    • B.

      Buy Deep in the Money Put

    • C.

      Buy Deep in the Money Call

    • D.

      Sell Future and Buy Deep out of the Money Call

    Correct Answer
    A. Buy Deep out of the Money Put
    Explanation
    The strategy with the highest Return to Risk ratio in this scenario would be to buy deep out of the money put options. This is because the client is willing to risk a small amount but wants the potential for big rewards if the market corrects by 10% post election results. Buying deep out of the money put options allows the client to benefit from a significant market correction, as the value of the put options would increase substantially in this scenario. This strategy offers the potential for high returns relative to the small amount of risk taken.

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  • 13. 

    Rubber tyres reach a new high. Your Client is holding Apollo Tyres and asks You to let him know the impact on the  stock. Your view is it will have :

    • A.

      Positive Impact on the stock

    • B.

      No effect on the stock

    • C.

      Negative Impact on the stock

    Correct Answer
    C. Negative Impact on the stock
    Explanation
    Rubber tyres reaching a new high would have a negative impact on the stock of Apollo Tyres. This could be due to various reasons such as increased production costs, higher competition, or a decrease in demand for rubber tyres. These factors could potentially affect the profitability and performance of the company, leading to a decrease in the stock price.

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  • 14. 

    A Company having outstanding 1 cr shares of the Face value of Rs 5 quotes at Rs 50 and posts a Net Profit of 10 cr this  Year. Calculate its current P/E Ratio.

    • A.

      10

    • B.

      2

    • C.

      5

    • D.

      2.5

    Correct Answer
    C. 5
    Explanation
    The P/E ratio, or price-to-earnings ratio, is calculated by dividing the market price per share by the earnings per share. In this case, the market price per share is Rs 50 and the net profit is 10 cr. To find the earnings per share, we divide the net profit by the number of shares: 10 cr / 1 cr = Rs 10. Then, we divide the market price per share by the earnings per share: Rs 50 / Rs 10 = 5. Therefore, the current P/E ratio is 5.

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  • 15. 

    You expect market to remain rangebound for the next month and Your client wants to trade on this view. You suggest him :

    • A.

      Long strangle

    • B.

      Long straddle

    • C.

      Short straddle

    • D.

      Bear Spread

    Correct Answer
    C. Short straddle
    Explanation
    A short straddle strategy involves selling both a call option and a put option with the same strike price and expiration date. This strategy is used when the trader expects the market to remain rangebound, meaning that the price will not move significantly in either direction. By selling both options, the trader collects the premiums and profits if the price stays within the range. This strategy is suitable for a market that is expected to have low volatility and limited price movement.

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  • 16. 

    US Federal Reserve to to cut down QE and reduce the Bond buying program. How do You expect the same to  impact Emerging markets and what would be the reason for the impact ?

    • A.

      Negative, Investible funds drain due to liquidity tightening

    • B.

      Positive, Funds will move from Bond to Equities

    • C.

      Neutral, US liquidity has no relation with performance of Emerging markets

    • D.

      Negative, this may lead to US rating downgrade and Emerging markets rating downgrade to follow

    Correct Answer
    A. Negative, Investible funds drain due to liquidity tightening
    Explanation
    The correct answer is "Negative, Investible funds drain due to liquidity tightening." This is because when the US Federal Reserve cuts down on quantitative easing and reduces its bond buying program, it leads to a tightening of liquidity. This means that there will be less money available for investment in emerging markets, causing a drain in investible funds.

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  • 17. 

    An Indian Company has an outstanding USD Loan of 1 bn as on date which is not hedged. They want to Hedge their Currency risk by a suitable Options strategy. Which among the following will you suggest :

    • A.

      Buying a USDINR Put

    • B.

      Sell a USDINR Put

    • C.

      Buy a USDINR Call

    • D.

      Sell a USDINR Call

    Correct Answer
    C. Buy a USDINR Call
    Explanation
    Buying a USDINR Call option would allow the Indian company to hedge their currency risk by giving them the right to buy USD at a predetermined exchange rate (strike price) in the future. This would protect them from any potential depreciation of the Indian Rupee against the US Dollar.

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  • 18. 

    World Bank forecasts a healthy growth in Global GDP this year. How do You expect Metal Prices to react to this News ?

    • A.

      Negative

    • B.

      Positive

    • C.

      Neutral

    Correct Answer
    B. Positive
    Explanation
    The correct answer is "Positive" because a healthy growth in global GDP suggests an increase in economic activity, which typically leads to higher demand for metals. As a result, metal prices are expected to react positively to this news.

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  • 19. 

    Central Banks are converting Gold reserves to Dollar in view of the stability in US economy and the US Dollar. How do You expect Gold prices to react to this News ?

    • A.

      Positive

    • B.

      Neutral

    • C.

      Negative

    Correct Answer
    C. Negative
    Explanation
    The conversion of gold reserves to dollars by central banks indicates a lack of confidence in gold as a safe haven asset. This could lead to a decrease in demand for gold, causing its price to decline. Additionally, the stability in the US economy and the US dollar may attract investors away from gold and towards other assets, further contributing to a potential decrease in gold prices. Therefore, the news of central banks converting gold reserves to dollars is likely to have a negative impact on gold prices.

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  • 20. 

    The underlying basis for calculating India VIX is :

    • A.

      Nifty Options

    • B.

      Nifty Futures

    • C.

      Nifty 50 Stock Options

    • D.

      Nifty 50 Stock Futures

    Correct Answer
    A. Nifty Options
    Explanation
    The correct answer is Nifty Options. India VIX is calculated based on the implied volatility of Nifty options. Implied volatility is a measure of the market's expectation of future volatility. By calculating the implied volatility of Nifty options, India VIX provides an indication of the expected volatility in the Indian stock market.

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  • 21. 

    Current India VIX is 22 and Next Fortnight's India VIX futures is quoting at 35. It implies :

    • A.

      Lower volatility expectations ahead

    • B.

      Dull volumes expectations ahead

    • C.

      Higher volumes expectations ahead

    • D.

      Higher volatility expectations ahead

    Correct Answer
    D. Higher volatility expectations ahead
    Explanation
    The India VIX is a measure of market volatility and is often used as an indicator of future volatility expectations. A higher India VIX futures quote suggests that market participants are expecting higher volatility in the next fortnight. Therefore, the correct answer is "Higher volatility expectations ahead".

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  • 22. 

    You expect Yields to fall in the next year. Your client who has invested in Debt funds seeks Your advice on its impact on his portfolio. You suggest Portfolio value will :

    • A.

      Fall

    • B.

      Remain stagnant as Investment by MF is already done

    • C.

      Rise

    • D.

      Information is not complete to make a judgement

    Correct Answer
    C. Rise
    Explanation
    The correct answer is "Rise". This is because when yields fall, the prices of existing debt securities in the portfolio increase. As a result, the value of the portfolio also increases. Therefore, the client can expect their portfolio value to rise in the next year.

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  • 23. 

    SBI Pharma Fund is a :

    • A.

      Debt fund

    • B.

      Sectoral Fund

    • C.

      Contrarian Fund

    • D.

      Hedge Fund

    Correct Answer
    B. Sectoral Fund
    Explanation
    SBI Pharma Fund is categorized as a sectoral fund because it focuses on investing primarily in the pharmaceutical sector. Sectoral funds are mutual funds that invest in a specific sector or industry, allowing investors to gain exposure to a particular sector's potential growth and profitability. In the case of SBI Pharma Fund, it specifically targets companies in the pharmaceutical sector, which includes pharmaceutical manufacturers, biotechnology firms, and healthcare-related companies. By investing in a sectoral fund like SBI Pharma Fund, investors can benefit from the potential growth and performance of the pharmaceutical sector.

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  • 24. 

    What impact will a fall in market have on the number of units purchased on a fixed committed monthly Equity SIP ?

    • A.

      Increased number of Units will get purchased

    • B.

      Decreased number of Units will get purchased

    • C.

      Same number of Units will get purchased

    • D.

      Depends on the amount committed, rise or fall is immaterial to the number of units getting purchased

    Correct Answer
    A. Increased number of Units will get purchased
    Explanation
    A fall in the market will lead to a decrease in the price of the units being purchased through the fixed committed monthly Equity SIP. As a result, the same amount of money will be able to purchase more units, leading to an increased number of units being purchased.

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  • 25. 

    Your friend earns a decent salary and deploys his savings in Equity & Debt Mutual funds which generates effective 11% portfolio yield. He has recently married and has both Parents as dependant. You want to approach him for Insurance as he does not have any plans. You will advise him to buy which plan instantly in priority ?

    • A.

      Pension Plan

    • B.

      Wealth Builder Plan

    • C.

      Term Insurance Plan

    • D.

      ULIP

    Correct Answer
    C. Term Insurance Plan
    Explanation
    Given the information provided, it is important for your friend to prioritize buying a term insurance plan. This is because he has recently married and has both parents as dependents. A term insurance plan will provide financial protection to his dependents in case of his untimely demise. It will ensure that his family is financially secure and able to maintain their lifestyle even in his absence.

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  • 26. 

    Key Man Plan is a kind of :

    • A.

      Term Plan

    • B.

      Endowment Plan

    • C.

      Group Plan

    • D.

      Health Insurance Plan

    Correct Answer
    A. Term Plan
    Explanation
    The correct answer is Term Plan. A Key Man Plan is a type of life insurance policy that is taken out by a business on the life of a key employee or owner. It provides financial protection to the business in the event of the death of the key person. A Term Plan is a type of life insurance that provides coverage for a specific term or period of time. It does not have any cash value and only pays out a death benefit if the insured person dies during the term of the policy. Therefore, a Key Man Plan falls under the category of a Term Plan.

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  • 27. 

    Our process of selling Insurance through "Vijaypath" process is what kind of an approach ?

    • A.

      Victory over Customer approach

    • B.

      Need based approach

    • C.

      Higher margin approach

    • D.

      Skill based approach

    Correct Answer
    B. Need based approach
    Explanation
    The correct answer is "Need based approach". This means that the process of selling insurance through the "Vijaypath" approach is focused on identifying and fulfilling the specific needs of the customer. It involves understanding the customer's requirements and recommending insurance products that best meet those needs. This approach prioritizes customer satisfaction and aims to provide tailored solutions rather than simply focusing on making higher margins or using sales skills.

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  • 28. 

    Insurance bought under MWP Act has a key feature of :

    • A.

      No discontinuance even if Premium is not paid

    • B.

      No attachment in case of insolvency

    • C.

      No premium to be paid by Married Woman who takes such policy

    • D.

      Premium is waived off in case of death of the nominee if she is Married Woman

    Correct Answer
    B. No attachment in case of insolvency
    Explanation
    Insurance bought under the MWP Act has a key feature of no attachment in case of insolvency. This means that in the event of the policyholder facing insolvency, the insurance proceeds cannot be claimed by the creditors. This provides protection to the policyholder and ensures that the insurance benefits are preserved for the intended beneficiaries.

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  • 29. 

    Most of the Structured Products offer :

    • A.

      Fixed Assets as Security

    • B.

      Guarantees Maximum Returns

    • C.

      Buy Back by Issuer at highest NAV

    • D.

      Capital Protection

    Correct Answer
    D. Capital Protection
    Explanation
    Most of the Structured Products offer capital protection, which means that the investor's initial investment is guaranteed and will be returned to them at the end of the investment period. This provides a level of security and ensures that the investor will not lose their principal amount. Other options such as fixed assets as security, guarantees maximum returns, and buy back by issuer at highest NAV may also be features of some structured products, but capital protection is the most commonly offered benefit.

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  • 30. 

    Insured has purchased a Critical illness rider of 20  lacs along with Term life policy of 1 cr. He falls critically ill before the  maturity and spends 8 lacs to get cured. How much amount will he get from the Insurer towards critical illness cover ?

    • A.

      Nil as it is before maturity

    • B.

      20 lacs

    • C.

      8 lacs

    • D.

      1 cr

    Correct Answer
    B. 20 lacs
    Explanation
    The insured will receive 20 lacs from the insurer towards the critical illness cover. This is because the insured has purchased a critical illness rider of 20 lacs along with the term life policy. Even though the insured falls critically ill before maturity and spends 8 lacs to get cured, the insurer will still provide the full amount of the critical illness cover, which is 20 lacs.

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  • 31. 

    A Company having a Book value of Rs 35 quotes at Rs 25. It announces a Buy-back offer @ Rs 30. What impact will it have on its Book value post Buy-back?

    • A.

      Book value will increase

    • B.

      Book value will decrease

    • C.

      Book value will remain the same

    • D.

      It will increase if number of shares purchased are large and will decrease if shares purchased are less

    Correct Answer
    A. Book value will increase
    Explanation
    The book value of a company is calculated by dividing the total assets by the total number of outstanding shares. In this scenario, the company announces a buy-back offer at a price higher than the current market price. When the company buys back its own shares at a higher price, it reduces the number of outstanding shares in the market. As a result, the total assets of the company remain the same while the number of outstanding shares decreases. This leads to an increase in the book value per share, indicating that the book value will increase post buy-back.

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  • 32. 

    A Company having 10 cr outstanding shares of face value Re 1 and market value Rs 20 declares 50% dividend. Compute the  Dividend Yield as Your client is interested in Buying High Dividend Yield stocks.

    • A.

      50%

    • B.

      20%

    • C.

      5%

    • D.

      2.50%

    Correct Answer
    D. 2.50%
    Explanation
    The dividend yield is calculated by dividing the dividend per share by the market price per share and multiplying by 100. In this case, the dividend per share is 50% of the face value, which is 0.50. The market price per share is Rs 20. Therefore, the dividend yield is (0.50/20) * 100 = 2.50%.

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  • 33. 

    FDI inflows in India slows down in the last fiscal and paints a dismal picture ahead. How do You expect USD-INR to react ?

    • A.

      Rise

    • B.

      Fall

    • C.

      Neutral

    Correct Answer
    A. Rise
    Explanation
    The FDI inflows in India slowing down in the last fiscal indicates a decrease in foreign investment in the country. This could lead to a decrease in the demand for Indian rupees, causing its value to fall against the US dollar. Therefore, it is expected that the USD-INR exchange rate would rise in response to the slowdown in FDI inflows.

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  • 34. 

    Rupee appreciates across the board by 3% in a day following few key announcements made by RBI. How do you think it will impact MCX Gold price assuming that International Gold prices remain stagnant.

    • A.

      No impact

    • B.

      Gold price on MCX will rise

    • C.

      Gold price on MCX will fall

    • D.

      Incomplete information to make a judgement

    Correct Answer
    C. Gold price on MCX will fall
    Explanation
    The appreciation of the rupee means that it has become stronger compared to other currencies, including the international currency in which gold is priced. When the rupee appreciates, it takes fewer rupees to buy the same amount of international currency, thus reducing the cost of importing gold. As a result, the price of gold on MCX, which is influenced by the cost of importing gold, will fall.

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  • 35. 

    A Client Buys 1 lot of Nifty Call strike price 6800 and sell 2 lots of 7000 strike price Nifty Call. Premium pay off is Nil. Ignoring transaction costs work out the Risk zone for the client. 

    • A.

      Risk Zone : 6800-7000

    • B.

      Risk Zone : Above 7000

    • C.

      Risk Zone : Above 7200

    • D.

      Risk Zone : Below 7000

    Correct Answer
    C. Risk Zone : Above 7200
    Explanation
    The client has bought 1 lot of Nifty Call at a strike price of 6800 and sold 2 lots of Nifty Call at a strike price of 7000. Since the premium pay off is nil, it means that the client will not make any profit or loss if the price of Nifty is between 6800 and 7000. However, if the price of Nifty goes above 7000, the client will start incurring losses. Therefore, the risk zone for the client is above 7000. Since the answer states "Risk Zone : Above 7200", it is incorrect.

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  • 36. 

    EL Nino likely to have negative impact on Indian monsoon. How do You expect Agri commodities to move on the news ? 

    • A.

      Fall

    • B.

      Rise

    • C.

      Neutral

    Correct Answer
    B. Rise
    Explanation
    The correct answer is "Rise" because El Nino is known to disrupt weather patterns and can lead to below-average rainfall in India. This can negatively impact crop production and lead to a decrease in supply of agricultural commodities. As a result, the demand for these commodities may increase, causing their prices to rise.

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  • 37. 

    Your client expects EUR-USD to move down from 1.4 to 1.35. He seeks Your view on how to trade this strategy on Exchange platform. You advise him to :

    • A.

      Sell Euro-INR & Buy USD-INR in quantity ratio of 1:1.4 (10 lots Euro for 14 lots USD)

    • B.

      Buy Euro-INR & Buy USD-INR in quantity ratio of 1:1.4 (10 lots Euro for 14 lots USD)

    • C.

      Sell Euro-USD contract

    • D.

      Buy Euro-INR & Sell USD-INR in quantity ratio of 1.4:1 (14 lots Euro for 10 lots USD)

    Correct Answer
    A. Sell Euro-INR & Buy USD-INR in quantity ratio of 1:1.4 (10 lots Euro for 14 lots USD)
    Explanation
    The correct answer is to sell Euro-INR and buy USD-INR in a quantity ratio of 1:1.4 (10 lots Euro for 14 lots USD). This strategy allows the client to take advantage of the expected downward movement of EUR-USD by selling Euros and buying US Dollars. The quantity ratio ensures that the client is properly hedged and can potentially profit from the exchange rate movement.

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  • 38. 

    A Client Buys 6800 strike price Call of Nifty by paying Rs 68 premium. Compute the leverage on capital deployed.

    • A.

      No. of lots need to be specified

    • B.

      10 times

    • C.

      1 time

    • D.

      100 times

    Correct Answer
    D. 100 times
    Explanation
    The leverage on capital deployed is 100 times. This is calculated by dividing the strike price (6800) by the premium paid (68). The result is 100, indicating that for every rupee invested, the client has the potential to control 100 rupees worth of the underlying asset.

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  • 39. 

    A Client is having small SPAN margin shortfall since 3 days. Today too it had kept marginal shortfall. What will be the  Penalty levied on him for today's shortfall.

    • A.

      1%

    • B.

      0.50%

    • C.

      5%

    • D.

      10%

    Correct Answer
    C. 5%
    Explanation
    The penalty levied on the client for today's shortfall will be 5%. This means that the client will be charged a penalty of 5% of the margin shortfall amount.

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 05, 2014
    Quiz Created by
    Ashishefa
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