Efa- Hunt For The Knowledge Stars

40 Questions | By Ashishefa | Updated: Mar 20, 2022 | Attempts: 409

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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
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
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
4.

_________ is the present Chairman of US Federal Reserve
- A.
  
  Ben Bernanke
- B.
  
  Angela Morkel
- C.
  
  Janet Yallen
- D.
  
  Allen Greeenspan
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
23.

SBI Pharma Fund is a :
- A.
  
  Debt fund
- B.
  
  Sectoral Fund
- C.
  
  Contrarian Fund
- D.
  
  Hedge Fund
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
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