Wealth Forum TV

Wealth Wealth Wealth Wealth Wealth Wealth

Advanced Wealth Management Course (IIBF) - Paper 3

Part II: Ch 11: Secondary Markets and Trading in Govt Securities

Q1.

The Wholesale Debt Market (WDM) segment of the National Stock Exchange commenced operations on _______________.

Mar 30, 1994

June 30, 1994

Mar 30, 1995

June 30, 1995

Q2.

The debt market operates from _______ to ____________ on weekdays.

9.30 am to 3.30 pm

10 am to 4 pm

10 am to 5 pm

9.30 am to 3 pm

Q3.

(I) In the Continuous market, deals are negotiated outside the exchange between the two counter parties and are reported on the trading system for approval. (II) In the Negotiated market, orders entered by the trading members are matched by the trading system.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q4.

If an order does not find a suitable counter order in the order books, it is added to the order books and is called a ____________ order.

Passive order

Active order

None of the above

Q5.

(I) Negotiated Deal Module which permits reporting of trades undertaken by two different market participants through a single member of the BSE. (II) Cross Deal Module which permits the reporting of trades, undertaken by market participants, through the members of the BSE.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q6.

(I) In case of Continuous market, orders are matched on the basis of price-time priority. (II) The value of the order/trade is indicated in “Rs. Lakhs” in the trading system.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q7.

In Government Securities, brokers are usually paid a commission of ___________ per market lot (of Rs. 5 crores).

0.005%

0.5%

0.050%

0.0005%

Q8.

CCIL is an agency which extends guaranteed settlement for trades done/reported on NDS in Government Securities.

True

False

Q9.

(I) CROMS is the repo dealing system of NDS. (II) For deals above Rs. 20 crores, the NDS members had the option to settle through CCIL or directly at PDO, RBI.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q10.

Trades of NSE are executed through the __________ system which is an automatic system that provides trading and reporting facilities for Government Securities.

a. CCIL

b. NEAT

c. DVPI

d. CSGL

Q11.

(I) Settlement through CCIL is on Delivery Versus Payment I (DVP I) mechanism. (II) Settlement through RBI-SGL follows DVP- II mechanism.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q12.

(I) DVP-I refers to settlement of securities on gross basis while funds will be settle on net basis. (II) CCIL acts as a central counter-party for the clearing and settlement of transactions done on the NDS.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q13.

NSE has developed a VaR system for measuring the market risk inherent in Government of India (GOI) securities.

True

False

wealthforumtv

Quick and Easy Guides