Objective Questions

1. The responsibility of ensuring the completeness of both legs of the futures contract vests with
a. Buyer and seller.
b. Broker.
c. Stock exchange.
d. All of the above.

2. Margin money adjustment calculation is based on
a. Position opening value.
b. Position closing value.
c. Marked-to-market valuation.
d. None of the above.

3. An entry for futures contract bought will be recorded and posted
a. In the income statement.
b. On the balance sheet.
c. Off the balance sheet.
d. None of the above.

4. Brokerage/commission paid to the broker for futures contract will be paid on
a. Trade date.
b. Settlement date.
c. T + 2.
d. None of the above.

5. Portfolio valuation process means
a. Only ascertaining the fair value of the product dealt with.
b. Only marked-to-market process.
c. Both a and b.
d. None of the above.

6. Margin call will be initiated by the
a. Broker.
b. Seller.
c. Stock exchange.
d. None of the above.

7.Entry for brokerage on sale of shares will be posted
a. To the income statement.
b. To the profit and loss account.
c. Off the balance sheet.
d. None of the above.

8.Margin money will be reversed on
a. Expiry date.
b, Date of liquidation.
c. End of accounting period.
d. None of the above.

9. Physical delivery of underlying asset will not happen on the expiry date for
a. Stock futures.
b. Commodity futures.
c. Indexes futures.
d. All of the above.

10. The futures contract will get auto-expired on
a. Settlement date.
b. Expiry date of the contract.
c. End-of-day every day, facilitating the marked-to-market process.
d. None of the above.

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