Securities Market and General Awareness MCQs for SEBI Grade A 2020 Exam Part - 3

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 SEBI Grade A 2020 – exam is going to be conducted very soon. To prepare better and to the point, aspirants need to study relevant and valuable material. The below post gives the detailed questions answers for SEBI Grade A Securities Market and General Awareness. For all MCQs Archive CLICK HERE

Securities Market and General Awareness for SEBI Grade A/ RBI Grade B

Q1. Open-ended mutual fund scheme units  can be bought  from?

A. AMFI

B. Fund House

C. Stock Exchange

D. Stock Broker

E. None of the above

Explanation: (B) An open-end fund scheme is a mutual fund that can issue unlimited new shares, priced daily on their net asset value.

• Open-ended schemes are available for subscription and repurchase on a continuous basis.

• An investor will generally purchase shares in the fund directly from the fund itself, rather than from the existing shareholders or stock exchanges.

• An investor can purchase or sell units of an open-ended mutual fund at any time after the closure of New Fund Offer (NFO).

Q2. How frequently the NAV of each scheme should be updated on AMC/AMFI’s website?

A. Every Hour

B. Every Month

C. Once in a Quarter

D. Every Day

E.  None of These

Explanation: (D) NAV stands for Net Asset Value.

•  It is mandatory, as per SEBI guidelines, the NAV per unit of all mutual fund schemes have to be updated on AMFI's website and the Mutual Funds' website by 9 p.m.

• AMFI Stands for Association of Mutual Funds in India. 

• Founded: 2015

• CEO: C.V.R. Rajendran

Q3. In which state Dudhwa National Park is situated?

A. Gujarat

B. Uttar Pradesh

C. Bihar

D. Karnataka

E. Assam

Explanation: (B) The Dudhwa National Park is a national park in the Terai belt of marshy grasslands of northern Uttar Pradesh, India.

• Dudhwa became a tiger reserve in 1879. The area was established in 1958 as a wildlife sanctuary for swamp deer. Thanks to the efforts of Billy Arjan Singh the area was notified as a national park in January 1977.

• "The Dudhwa National Park in Lakhimpur Kheri district is located in the Terai-Bhabhar region bordering Nepal, about 230 km from Lucknow.".

Q4. What does P stands for in P - Notes?

A. Portfolio

B. Positional

C. Payment

D. Participatory

E. Plan

Explanation: (D) Participatory Notes started in 2000 by SEBI.

• A participatory note, commonly known as a P-note or PN, is an instrument issued by a registered foreign institutional investor (FII) to an overseas investor who wishes to invest in Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI).

• Participatory notes are not used within the country. They are used outside India for making investments in shares listed in the Indian stock market.

• Investing through P-Notes is very simple and hence very popular amongst FIIs. Overseas investors who are not registered with SEBI have to go through a lot of scrutiny, such as know-your-customer norms, before investing in Indian shares. To avoid these hurdles, foreign investors take P-Notes route.

Q5. At which rate banks lend  to their prime customers is called_____?

A. Interest Rate

B. Greenwich Rate

C. Real Lending Rate

D. Prime Lending  Rate

E. None of the Above

Explanation: (D)   Prime Lending Rate (PLR) 

• The prime lending rate is the primary determiner of most of the interest rates charged by the lending institution; it is a component of the rate charged to the customer.

• Before 2010, there was Benchmark Prime Lending Rate (BPLR) system, RBI introduced the Base Rate system with effect from July 1, 2010.

 

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