Quiz for Chapter 2:

Introduction to
securities market
Let's get started !!

Unlock success with our NISM Research Analyst

chapter test, a sincere attempt at providing exam-
level difficulty.
Elevate your prep and gear up to ace the test!

Details:

Total Number of Questions = 32

Total Marks for Quiz = 32
This is the practice questions with 1 marks each
This quiz has no negative marking and no time
limit.

Disclaimer:

1. In the real/actual exam there will be 100

questions with 1 mark each from all the chapters
weightage wise.The structure of the exam is as
follows:
i. Multiple Choice Questions [ 92 Questions of 1
mark each ] which results in 92 marks &
ii. Case-based Questions [ 2 cases (each case with
4 questions of 1 marks each )] which results in 8
marks.

2. In the real/actual exam there will be a negative

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 1 of 16
:
 marking of 25% of the marks assigned to the
question for each wrong answer which is 0.25 mark
per wrong answer. So please keep that in mind !!

3. In the real/actual exam the questions are not

mandatory to solve and you can skip the questions.
There is no negative marking for un-attempted
questions.

4. The time duration of the real/actual exam is 2

hours and the passing marks is 60.

5. This quiz is just for practice purpose and it

doesn't hold the fact that the same questions
appear in the real examination.

Sign in to Google to save your progress. Learn more

* Indicates required question

Email *

Your email

Name *

Your answer

Mobile Number *

Your answer

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 2 of 16
:
 Treasury Bills issued by the________ 1 point

Banks

Government

Insurance Companies

All of the above

1 point
A close-ended mutual fund scheme
allows investors to purchase units from
the fund and subsequently sell those
units back to the fund at any time.

False

True

1 point
When a large number of shares are
offered to a specific set of individuals, it
is known as

Private Placement

Equity Shares

Private Equity

None of the Above

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 3 of 16
:
 1 point
The major uses of indices are_______

The performance of the economy is indicated

by the index

Indices indicate real-time market sentiments

Indices act as an underlying for the Index

All of the above.

1 point
While raising capital, If capital is raised
from investors outside the country is
called

Offshore offering

Onshore offering

1 point
What is the process of converting
securities held in physical form into
electronic form?

Book Keeping

Rematerialization

Dematerialization

None of the Above

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 4 of 16
:
 1 point
When a trader buys an asset at a lower
price in one market and sells it at a
higher price in another market to exploit
the price difference, it is known as:

Trading

Arbitrage

Hedging

Speculation

1 point
A pledge is an act of taking a loan
against securities by the investor. Then
the entity that is giving the loan against
the securities is called as

Pledgee

Pledgor

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 5 of 16
:
 1 point
An agreement between two parties to
exchange future cash flows based on a
predetermined formula is known as:

Options

Contracts

Swaps

None of the Above

1 point
Which option gives the buyer the right,
but not the obligation, to sell a given
quantity of the underlying asset at a
given price on or before a given date?

Call Option

Future Contract

Put Option

Forward Contract

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 6 of 16
:
 1 point
Debt instruments issued by institutions
against financial assets such as home
loans, auto loans, rent receivable, credit
card receivables, etc. known as

Commodity Linked Debentures

Currency-linked Debentures

Mortgage Backed Securities

Equity Linked Debentures

1 point
What is an entity established or
incorporated outside India that proposes
to make investments in India?

Mutual Funds

Foreign Portfolio Investor

Insurance Companies

Domestic Portfolio Investors

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 7 of 16
:
 1 point
Which of the following statements
accurately describes Global Depositary
Receipts (GDRs)?

GDRs are depositary receipts that can be

traded in various countries.

GDRs are depositary receipts limited to

trading in a single country.

GDRs are not related to international trading.

GDRs are exclusively used by domestic

investors.

1 point
Which agency acts as a legal
counterparty to all trades and guarantees
settlement of all transactions on the
Stock Exchanges?

Clearing Corporation

Clearing banks

Merchant Bankers

All of the above

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 8 of 16
:
 1 point
TOM Trades are settled on_________

T+1 day

Previous day

T+2 day

Same day

1 point
Treasury bills, commercial papers, and
certificates of deposits are long-term
debt instruments. True or False?

False

True

1 point
_______market facilitates buying and
selling for the investors.

Primary & Secondary

Neither Primary or Secondary

Secondary

Primary

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 9 of 16
:
 1 point
How are exchange-traded funds
comparable to other investment choices
available to investors?

Index funds

Bonds

Active Mutual Funds

Property

1 point
Net asset value is the per-unit market
value of all the securities held by a
mutual fund scheme. True or False?

True

False

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 10 of 16
:
 1 point
What statements accurately describe
Swap contracts?

The notional amount, on which interest is

calculated, is mutually agreed upon by the
counterparties.

Involves an agreement between two parties

to exchange future cash flows based on a
predetermined formula: one pays a fixed rate
and receives a floating rate.

Exchange of interest rates on the agreed

notional amount occurs at settlement dates
(e.g., quarterly) between the parties.

All of the above statements are correct.

1 point
In the right issue shares are offered to
existing shareholders at a price____
current market price.

Any of the option

Equal

Below

Above

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 11 of 16
:
 1 point
Depository Receipts are another form of
financial instrument that
represents______ of a local company and
is traded on a stock exchange_____ of its
home country.

Shares, Outside

Bonds, Inside

Convertible, Inside

Debenture, Outside

1 point
Which of the following statements is
false?

Futures are Exchange-traded contracts

Forwards are over-the-counter contracts

Forwards have no default risk while futures

face the risk of counterparties defaulting

Forwards are agreements to sell an asset at a

future date

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 12 of 16
:
 1 point
Which mutual fund scheme does not
have any fixed maturity and can be
bought and sold at any time?

Open-ended

Close-ended

Interval

None of the above

1 point
Bonds issued ______ India and
denominated in ______ are known as
Masala bonds.

Outside; USD

Outside; INR

Inside; USD

Inside; INR

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 13 of 16
:
 1 point
Securities market provides a platform to
mutually satisfy goals of_____and______

Government, Issuers

Liquidity, Raising capital X

Borrowers, Seekers of funds

Issuers, Investors

1 point
Depository receipts have the underlying
of the shares of the issuer company. True
or False?

True

False

1 point
The payment of interest and repayment
of principal on FCCBs is in foreign
currency.

True

False

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 14 of 16
:
 1 point
As compared to non-convertible bonds,
the yield on the convertible bond
is_______

Relatively Higher

Relatively Lower

1 point
What features does convertible
debenture have?

Debt, Confirmed Interest payment

Income, Repayment

Debt, Equity

Debt, Price of the equity X

1 point
As per SCRA, the term securities include
which of the following?

Government Securities

Derivatives

Shares, scrips, or bonds

All of the above

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 15 of 16
:
 1 point
Along with SEBI and other regulators
under the Companies Act, RBI also
regulates the Equity Shares Market. State
whether True or False.

True

False

A copy of your responses will be emailed to the

address you provided.

Page 1 of 1

Submit Clear form

Never submit passwords through Google Forms.

reCAPTCHA
Privacy Terms

This form was created inside of The Valuation School. Report

Abuse

Forms

https://docs.google.com/forms/d/e/1FAIpQLSes6rZP-sRiAqlWOpGw7Cff-SgQ3e98BYx8wQmWDGGByirh2Q/viewform 10/03/2024, 12 58
Page 16 of 16
: