BSEs Certification for Stock Markets (BCSM) Examination

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MODEL TEST PAPER FOR BCSM

Q. Id Question Option 1 Option 2 Option 3 Option 4
1
Indian Securities market is one
among top______ securities
markets of the world.
Four Eight Three Six
2
The Bombay Stock Exchange was
established in ______
1875 1873 1874 1872
3
The Bombay Stock Exchange was
established as a ___________
Limited
Liability
Firm
A
partnership
firm
A company
Voluntary
non-profit
organization
4
As of December 31, 2009 the
Bombay Stock Exchange was
among the top_____ of global
exchanges in terms of market
capitalization of its listed companies
Six Eight Ten nine
5
As of December 31, 2009 the
Bombay Stock Exchange was the
worlds number _____ exchange in
the world in terms of listed
companies
One Two Five Three
6
The first exchange in India to get
ISO 9001:2000 certification was
_____
The Multi
Commodity
Exchange
The Bombay
Stock
Exchange
The OTCEI
The National
Stock
Exchange
7
Bombay Stock Exchange was the
__________ in the world to obtain
the ISO 9001:2000 certifications
First Second Fifth Third
8
Exchange traded fund (ETF) on
SENSEX are listed on BSE and
Exchange in ________
UK USA Hong Kong Japan
9
The debt market in India covers all,
except
Letters of
Credit
External
Commercial
Borrowings
State Govt.
debts
Central Govt.
debts
10
Currently, Indian Securities market
comprised of _________ stock
exchanges spread throughout the
country
15 22 19 17
11
Which of the following is not a
market regulator
Ministry of
Corporate
Affairs
Securities
and
Exchange
Board of
India (SEBI)
Ministry of
commerce
Department
of Economic
Affairs
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12
Contracts for sale and purchase of
government securities, gold-related
securities, money market securities
and securities derived from these
securities and ready forward
contracts in debt securities shall be
regulated by ______, once they are
not traded on any stock exchange
DCA SEBI SBI RBI
13
Majority of the powers granted
under SCRA are exercisable
by______
DEA SEBI MCA RBI
14
The powers under the Companies
Act relating to issue and transfer of
securities and non-payment of
dividend are administered by
_________ in case of listed public
companies and public companies
proposing to get their securities
listed
FMC SEBI RBI DEA
15
Which of the following is not a key
regulations currently governing
Indian securities market
The
Foreign
Exchange
Manageme
nt Act,
1999
The
Securities
Contracts
Regulation
Act, 1956
The SEBI
Act, 1992
The
Companies
Act, 1956
16
Securities Contracts (Regulation)
Act (SCRA), 1956 gives SEBI
regulatory jurisdiction over
Stock
Exchanges
Real Estates
Markets
Commodities Banks
17
The Securities Contracts
(Regulation) Act, 1956 was enacted
to _______ undesirable
transactions in securities by
regulating the business of dealing
therein and by providing for certain
other matters connected therewith
exempt prevent receive promote
18
Under the Securities Contracts
(Regulation) Act (SCRA), 1956,
section 2(h) does not include which
as Securities
Commoditi
es
Mutual Fund
Units
Government
securities
Derivatives
19 Derivative includes
Mutual
Funds
A contract
which
derives its
value from
the prices,
or index of
prices, of
underlying
securities
Rights issue ETF
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20
Every recognised stock exchange
and every member thereof shall
maintain and preserve for such
periods not exceeding __________
such books of account, and other
documents as the Central
Government, after consultation
with the stock exchange concerned,
may prescribe in the interest of the
trade or in the public interest
Five years One year Two years Four years
21
A member of a ________ shall not
in respect of any securities enter
into any contract as a principal with
any person other than a member of
a recognised stock exchange,
unless he has secured the consent
or authority of such person and
discloses in the note, memorandum
or agreement of sale or purchase
that he is acting as a principal
commodity
exchange
financial
institution
recognised
stock
exchange
Mutual Fund
22
The Companies Act, 1956 does not
deal with
Commodity
markets
Issues of
Securities
Allotment
and transfer
of securities
Money
markets
23
Under Section 31 of The Companies
Act, 1956, any company could be of
the form except
Limited
Liability
Firm
Public
Companies
Private
Companies
Trust
24
Broad indices are expected to
capture the __________ of equity
market and need to represent the
return obtained by typical portfolios
in the country
selective
behaviour
Overall
behavior
Liquidity
behavior
Price behavior
25
The primary function of a stock
index is to serve as _________ of
the equity market
A
benchmark
a barometer A litmus test A yardstick
26
"Spot delivery contract" has been
defined in Section 2(i) to mean a
contract which does not provide for
Sale of
shares on a
spot date
Actual
delivery of
securities
and the
payment
thereof
Transfer of
the securities
by the
depository
from the
account of a
beneficial
owner to the
account of
another
beneficial
owner
All given
options are
correct
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27
SEBI may direct a recognised stock
exchange to suspend such of its
business for such period not
exceeding ________and subject to
such conditions as may be specified
in the notification
Seven days One day Two days Five days
28
The Companies Act, 1956 stipulates
that a meeting of the Board of
Directors shall be held atleast
_______ in every quarter of the
calendar year and committees of
the Board like investment
committee, audit committee,
compensation committee etc. shall
meet as and when required
Three
times
Once Twice Five times
29
As per The Companies Act, 1956,
excluding directorship in private
companies, unlimited companies,
Section 25 companies and alternate
directors, an individual can be a
Director maximum to how many
companies
15 20 25 10
30
The stock exchanges provide
facilities for _________________
to the common masses
Trading in
commoditie
s
Trading in
securities
Accumulation
of wealth
Gambling
31
All are various components of
securities markets, except
Commercia
l Banks
Derivatives
Issuers of
securities
Securities
32
As per The Securities Contract
(Regulation) Act, 1956 Securities
includes all, except
Commercia
l Banks
Bonds Derivatives
Post Office
Fixed Deposit
33
Stock exchanges serve all
purposes, except
Providing
liquidity to
holders of
common
shares
Providing a
place for
lawful
gambling
Try to seek
the best
price for the
securities
Providing a
secondary
market to
investors of
securities
34
______________ set out the code
of conduct for the corporate sector
in relation to issue, allotment and
transfer of securities, disclosures to
be made in public issues and non
payment of dividend
The
Companies
Act, 1956
The
Companies
Act, 1963
The Reserve
Bank of India
Act, 1934
The SEBI Act,
1992
35
__________________ provides for
regulation of transaction in
securities through control over
stock exchanges
The
Securities
Contract
(Regulation
) Act, 1946
The
Companies
Act, 1956
The
Securities
Contract
(Regulation)
Act, 1956
The SEBI Act,
1992
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36
_______________ provides for the
electronic maintenance and transfer
of ownership of dematerialized
securities
The
Securities
Contract
(Regulation
) Act, 1956
The
Depository
Act, 1956
The
Companies
Act, 1956
None of the
above
37
Section ________of the SEBI Act
provides that it shall be the duty of
the Board to protect the interests of
investors in securities and to
promote the development of, and
to regulate the securities market,
by such measures as it thinks fit
12(1) 11(1) 11 (5) 11 (2)
38 Which is not an activity of SEBI
Regulating
Banking
Treasuries
It regulates
the business
in stock
exchanges
and any
other
securities
markets and
the working
of collective
investment
schemes,
including
mutual
funds,
registered
by it
Regulating
Commodity
Exchanges
Regulating
Financial
Markets
39
Section ________of the SEBI Act
provides that it shall be the duty of
the Board to protect the interests of
investors in securities and to
promote the development of, and
to regulate the securities market,
by such measures as it thinks fit
12(1) 11(1) 11 (5) 11 (2)
40 Which is not an activity of SEBI
Regulating
Banking
Treasuries
It regulates
the business
in stock
exchanges
and any
other
securities
markets and
the working
of collective
investment
schemes,
including
mutual
funds,
registered
by it
Regulating
Commodity
Exchanges
Regulating
Financial
Markets
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41
The cash flows associated with
________ are difficult to evaluate
due to the uncertainty and
variability associated with them
common
stocks
preference
shares
bonds debentures
42
An increase in a firm's expected
growth rate would normally cause
the firm's required rate of return to
remain
unchanged
Increase Decrease
All given
options are
correct
43
If the expected rate of return on a
stock exceeds the required rate,
The stock
is a bad
buy.
The stock is
a good buy
The stock
should be
sold
The stock is
experiencing
supernormal
growth
44
Which of the following statements
is most correct?
The
constant
growth
model
takes into
considerati
on the
capital
gains
earned on
a stock
It is
appropriate
to use the
constant
growth
model to
estimate
stock value
even if the
growth rate
never
becomes
constant
Two firms
with the
same
dividend and
growth rate
must also
have the
same stock
price
The constant
growth model
takes into
consideration
the
proportional
capital gains
increased on
a stock
45
Which of the following statements
is most correct?
If your
uncle earns
a return
similar to
the overall
stock
market,
this means
the stock
market is
inefficient
If a market
is strong-
form
efficient this
implies that
the returns
on bonds
and stocks
should be
identical
If a market
is weak-form
efficient this
implies that
all public
information
is rapidly
incorporated
into market
prices
If your uncle
earns a return
higher than
the overall
stock market,
this means
the stock
market is
inefficient
46
Which of the following statements
is most correct?
Weak-form
market
efficiency
implies
that recent
trends in
stock
prices
would be of
tremendou
s use in
selecting
stocks
Weak-form
market
efficiency
implies that
recent
trends in
stock prices
would be of
no use in
selecting
stocks
Market
efficiency
implies that
all stocks
should have
the same
expected
return
Semistrong-
form market
efficiency
implies that
all private and
public
information is
rapidly
incorporated
into stock
prices
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47
Which of the following statements
is most correct?
Semistrong
-form
market
efficiency
means that
stock
prices
reflect all
public
information
An
individual
who has
information
about past
stock prices
should be
able to
profit from
this
information
in a weak-
form
efficient
market
An individual
who has
inside
information
about a
publicly
traded
company
should be
able to profit
from this
information
in a strong-
form efficient
market
Strong-form
market
efficiency
means that
stock prices
reflect all
public
information
48
The effective rate of interest differs
from the nominal rate of interest in
that it reflects the impact of :
compoundi
ng
frequency
future value
compounding
frequency
volatility
49
For any interest rate and for a
given period of time, the more
frequently interest is compounded,
the future value becomes______.
higher lower
remains the
same
difficult to
compute
50
The tighter the probability
distribution of expected future
returns, the smaller the risk of a
given investment as measured by
the _____________
skewness mean
standard
deviation
mode

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Answers:

Q. Id Answer
1 Eight
2 1875
3 Voluntary non-profit organisation
4 Ten
5 One
6 The Bombay Stock Exchange
7 Second
8 Hong Kong
9 External Commercial Borrowings
10 22
11 Ministry of commerce
12 RBI
13 DEA
14 SEBI
15 The Foreign Exchange Management Act, 1999
16 Stock Exchanges
17 prevent
18 Commodities
19
A contract which derives its value from the prices, or index of prices, of
underlying securities
20 Five years
21 recognised stock exchange
22 Money markets
23 Trust
24 Overall behavior
25 a barometer
26 All given options are correct
27 Seven days
28 Once
29 15
30 Trading in securities
31 Commercial Banks
32 Post Office Fixed Deposit
33 Providing a place for lawful gambling
34 The Companies Act, 1956
35 The Securities Contract (Regulation) Act, 1956
36 The Depository Act, 1996
37 11(1)
38 Regulating Banking Treasuries
39 11(1)
40 Regulating Banking Treasuries
41 common stocks
42 All given options are correct
43 The stock is a good buy
44
The constant growth model takes into consideration the capital gains
earned on a stock
45 If your uncle earns a return higher than the overall stock market, this
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means the stock market is inefficient
46
Weak-form market efficiency implies that recent trends in stock prices
would be of no use in selecting stocks
47
Semistrong-form market efficiency means that stock prices reflect all
public information
48 compounding frequency
49 higher
50 standard deviation