Financial Abbreviations and Trading Terms Quiz

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Questions and Answers

What does the abbreviation ASBA stand for?

Application Scheme for Blocked Assets

Aggregate Submission for Blocked Applications

Application Supported by Blocked Amount (correct)

Authorized Securities by Blocked Account

Which of the following abbreviations is associated with a type of trading?

AT - Algorithmic Trading (correct)

CD - Credit Derivative

ADR - Arbitrage Dealing Rate

CSDL - Central Securities Depository Link

What is the primary function of the abbreviation CM in financial context?

Communication Model

Construction Manager

Capital Monitor

Clearing Member (correct)

Which of the following refers to the type of securities that can be traded on the Bombay Stock Exchange?

BSE - Bombay Stock Exchange Signup and view all the answers

What does the abbreviation AON stand for in trading?

All or None Signup and view all the answers

What does PAN stand for in the context of finance?

Permanent Account Number Signup and view all the answers

Which of the following represents an order cancellation in trading?

OCXL Signup and view all the answers

What does the acronym STT refer to?

Securities Transaction Tax Signup and view all the answers

What is the meaning of the acronym VIX?

Volatility Index Signup and view all the answers

Which term is used to describe the risk disclosure document?

RDD Signup and view all the answers

What does the term OTC refer to in trading?

Over The Counter Signup and view all the answers

What does the acronym T+2 represent?

Two days after the trading day Signup and view all the answers

Which of the following is a key institution in regulating securities in India?

SEBI Signup and view all the answers

What significant change was made to the trading cycle for stocks in December 2001?

Transition to rolling settlement for all scrips Signup and view all the answers

What was the main objective of establishing the Securities and Exchange Board of India (SEBI)?

To protect investor interests Signup and view all the answers

Which trading method replaced the open outcry system in Indian stock exchanges?

Screen-based trading system Signup and view all the answers

What major reform in trading was implemented in April 2003?

Reduction of settlement cycle to T+2 days Signup and view all the answers

What was the purpose of allowing trading in currency pairs such as Euro-INR and Pound Sterling-INR in February 2010?

To diversify trading offerings in the market Signup and view all the answers

Which product was made available for trading in the Indian market as of August 31, 2009?

Interest rate futures Signup and view all the answers

Which statement about the reduction of the trading cycle is true?

The reduction aimed to standardize trading cycles across exchanges. Signup and view all the answers

In which year was the Securities and Exchange Board of India (SEBI) established?

1992 Signup and view all the answers

Which scenario would lead to a trading member being declared a defaulter?

A trading member fails to pay the Exchange any sum due. Signup and view all the answers

What action triggers the immediate withdrawal of trading facilities for a member?

Receipt of information about their expulsion from another exchange. Signup and view all the answers

Under what condition can a trading member be declared a defaulter based on their financial status?

If they file for insolvency. Signup and view all the answers

What must a trading member not do to avoid being declared a defaulter?

Fail to deliver securities or assets owed to a defaulter's committee. Signup and view all the answers

Which of the following can NOT lead to a trading member's declaration as a defaulter?

Receiving multiple customer complaints. Signup and view all the answers

What is required to declare a trading member as a defaulter if they are already under scrutiny by another exchange?

A formal hearing must be provided. Signup and view all the answers

Which of the following is NOT considered a duty of a trading member?

Disclosing inconsistencies in trading patterns. Signup and view all the answers

What is a consequence for a trading member who is declared a defaulter?

Withdrawal of trading facilities immediately upon default notification. Signup and view all the answers

What is one condition for an unlisted corporate trading member to be included in the dominant promoter group?

Holding 51% of shares individually or collectively Signup and view all the answers

Who is considered as a strategic investor in the context of unlisted corporate trading members?

Corporates or individuals adding value through industry ties Signup and view all the answers

In the case of listed corporate trading members, who can be identified as a promoter?

Persons identified in the offer document or shareholding pattern Signup and view all the answers

What is the purpose of interviewing dominant shareholders during the admission process?

To assess their background and integrity Signup and view all the answers

Which of the following entities does not fall under the categories of dominant promoters?

Private limited companies Signup and view all the answers

Under what condition can a person hold shares with relatives to meet the requirement for the dominant promoter group?

As defined under Companies Act 2013 Signup and view all the answers

What is the minimum percentage of share ownership required by a single individual or group for an unlisted corporate trading member to establish a dominant promoter group?

51% Signup and view all the answers

Which of the following best describes the role of the Membership Recommendation Committee (MRC)?

To interview dominant shareholders for admission Signup and view all the answers

What is one reason a trading member may be required to suspend its business?

Conducting business in a prejudicial manner Signup and view all the answers

Which of the following describes 'unwarrantable business'?

Engaging in excessive purchases or sales given financial resources Signup and view all the answers

Under what condition might a trading member be suspended due to 'unsatisfactory financial condition'?

When the trading member is in a state that threatens creditor safety Signup and view all the answers

What happens to a trading member's rights during a period of suspension?

They are deprived of all membership rights Signup and view all the answers

What must occur for a trading member to have its suspension removed?

It must meet any specified requirements by the relevant authority Signup and view all the answers

Which of the following is NOT a consequence of suspension for a trading member?

Immediate liquidation of assets Signup and view all the answers

How does the suspension of a trading member affect its creditors?

Creditor rights are unaffected Signup and view all the answers

What institution is responsible for suspending a trading member's business?

The relevant authority Signup and view all the answers

Study Notes

NSE Academy Course Information

Course name: FMM - Financial Markets Management
Skill Education
Central Board of Secondary Education
Class XII

Financial Markets Management

Course name: Financial Markets Management
Class: XII
Skill Education
Central Board of Secondary Education

Preface and About NSE Academy

NSE Academy is a subsidiary of NSE
NSE Academy provides financial courses for students from VIII to MBA level.
They partner with top educational institutes.
Mission: spreading financial literacy for all.
Facilitated over 41.8 lakh individuals learn about financial matters.
NCFM (NSE Academy’s Certification in Financial Markets) is an online certification program.
Program covers Basic to Advanced levels.
Has over 154+ testing centers in the country.
Online Registration for NCFM can be done through nseindia.com
Offline registration is also possible through nseindia.com

Contents of the Course

Introduction to Indian Securities Market and Trading Membership
Trading
Clearing, Settlement and Legal Framework
Introduction to Derivatives
Introduction to Futures and Options
Sample Papers

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Description

Test your knowledge on financial abbreviations and trading terminology with this engaging quiz. Covering key concepts like ASBA, CM, and SEBI, this quiz is perfect for finance enthusiasts. Challenge yourself to see how well you understand the world of trading and securities.