National Board of Examinations 2008 Diploma Accounting

a) True
b) False
c) True only for the year 2002
d) True only for the year 2001


Q23. In the olden days, the area within the exchange where trading was conducted through open outcry, was known as the Pit?

a) True
b) False
c) True only for the year 2002
d) True only for the year 2001


Q24. Futures contracts may or may not be traded on an exchange?

a) True
b) False
c) True only for the year 2002
d) True only for the year 2001


Q25. If the price of the underlying asset rises sharply after the initiation of a futures contract?

a) The long position becomes profitable
b) The long position becomes unprofitable
c) The short position becomes profitable
d) None of the above


Q26. A fund manager is bullish on the market. What should be his course of action?

a) Buy the index future
b) Sell the index future
c) Sell his entire portfolio
d) None of the above
Q27. You have purchased shares & sent them for transfer. In the meantime, market is likely to fall due to a few adverse development. What should you do?

a) Do nothing
b) Buy the index futures
c) Sell the index futures
d) None of the above


Q28. Tick size is?

a) The maximum daily movement permitted in the price of the contract
b) The maximum permitted price movement during the entire life of the contract
c) The minimum permitted price movement in a futures contract
d) None of the above


Q29. A long or short position in a futures contract can be closed easily by initiating a reverse trade?

a) True
b) False
c) True only in Europe
d) True only in Africa


Q30. You can buy stock futures in India regardless of whether you own the shares or not?


a) actual
b) False
c) True only in Mumbai
d) True only in Delhi


Q31. You can buy index futures in India regardless of whether you own the index shares or not?

a) actual
b) False
c) True only in Mumbai
d) True only in Delhi


Q32. A futures contract is a very standardised contract that leaves very little (except the price) open to negotiation?
a) True
b) False
c) True only in Mumbai
d) True only in Delhi


Q33. In a futures market a buyer of a contract is obliged to buy the underlying at the contract price from the clearing house & not to the true seller?

Earning:   Approval pending.