Question $1$:$-$ Which of the following is true of the SENSEX?

a$)$ It is a value$-$weighted average of $30$ large industrial stocks.

b$)$ It is a price$-$weighted average of $30$ large industrial stocks.

c$)$ It is a value$-$weighted average of $30$ large industrial stocks and the divisor must be adjusted for stock

splits.

d$)$ It is a price$-$weighted average of $30$ large industrial stocks and the divisor must be adjusted for stock

splits.

Question $2$:$-$ In a "firm commitment," the underwriter $-$

a$)$ buys the shares from the company and resells the issue to the public.

b$)$ agrees to help the firm sell the shares at a favorable price.

c$)$ agrees to help the firm sell the stock at a favorable price and finds the best marketing arrangement for the

investment banking firm.

d$)$ None of these.

Question $3$:$-$ You purchased share of a company at Rs $50$ each. The shares are currently selling at Rs $65.$ Your gains may be protected by placing a $-$

a$)$ stop$-$buy order.

b$)$ limit$-$buy order.

c$)$ market order.

d$)$ limit$-$sell order.

Question $4$:$-$ Which of the following orders instructs the broker to sell at or below a specified price?

a$)$ Limit$-$sell order

b$)$ Stop$-$loss

c$)$ Limit$-$buy order

d$)$ Market order

Question $5$:$-$ Over the past year an investor earned a nominal rate of interest of $10\%$ on his investment. The inflation rate was $5\%$ over the same period. The exact actual inflation adjusted rate of return on the investment was$-$

a$)15\mathrm{.}5\%.$

b$)10\mathrm{.}0\%.$

c$)5\mathrm{.}0\%.$

d$)4\mathrm{.}8\%.$

Question $6$:$-$ Other things equal, an increase in the government budget deficit $-$

a$)$ drives the interest rate down.

b$)$ drives the interest rate up$.$

c$)$ might not have any effect on interest rates.

d$)$ increases business prospects.