CBSE | DEPARTMENT OF SKILL EDUCATION

FINANCIAL MARKETS MANAGEMENT (SUBJECT CODE: 805)

Blue-Print for Sample Question Paper for Class XII (Session 2022-2023)
Max. Time: 3 Hours Max. Marks: 60
PART A - EMPLOYABILITY SKILLS (10 MARKS):
SHORT
OBJECTIVE
ANSWER
TYPE
UNIT TYPE TOTAL
NAME OF THE UNIT QUESTIONS
NO. QUESTIONS QUESTIONS
1 MARK 2 MARKS
EACH EACH
1 Communication Skills- IV - - -
2 Self-Management Skills- IV 2 2 4
Information and Communication
3 2 1 3
Technology Skills- IV
4 Entrepreneurial Skills- IV 2 2 4
5 Green Skills- IV - - -
TOTAL QUESTIONS 6 5 11
NO. OF QUESTIONS TO BE
Any 4 Any 3 07
ANSWERED
TOTAL MARKS 1x4=4 2x3=6 10 MARKS
PART B - SUBJECT SPECIFIC SKILLS (50 MARKS):
SHORT
SHORT DESCRIPTIVE/
OBJECTIVE ANS.
ANS. LONG
TYPE TYPE
TYPE ANS. TYPE
UNIT QUESTIONS QUES.- TOTAL
NAME OF THE UNIT QUES.- I
II
QUESTIONS
NO. QUESTIONS
2 3
1 MARK 4 MARKS
MARKS MARKS
EACH EACH
EACH EACH
Introduction to Indian
1 Securities Market and 7 1 1 9
Trading Membership
2 Trading 7 1 1 1 10
Clearing and Settlement, 1
3 7 1 1 10
Legal Framework
Financial Statement
4 5 1 6
Analysis
Introduction to
5 1 1 1 3
Derivatives
Future Contracts,
6 5 1 1 7
Mechanism and Pricing
TOTAL QUESTIONS 32 5 3 5 45
NO. OF QUESTIONS
26 Any 3 Any 2 Any 3 34
TO BE ANSWERED
2x3= 3x2=
TOTAL MARKS 1 x 26= 26 4 x 3 = 12 50 MARKS
6 6

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CBSE | DEPARTMENT OF SKILL EDUCATION
FINANCIAL MARKETS MANAGEMENT (SUBJECT CODE: 805)
Sample Question Paper for Class XII (Session 2022-2023)
Max. Time: 3 Hours Max. Marks: 60

General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 24 questions in two sections – Section A & Section B.
3. Section A has Objective type questions whereas Section B contains Subjective type
questions.
4. Out of the given (6 + 18 =) 24 questions, a candidate has to answer (6 + 11 =) 17
questions in the allotted (maximum) time of 3 hours.
5. All questions of a particular section must be attempted in the correct order.
6. SECTION A - OBJECTIVE TYPE QUESTIONS (30 MARKS):
i. This section has 06 questions.
ii. There is no negative marking.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.
7. SECTION B – SUBJECTIVE TYPE QUESTIONS (30 MARKS):
i. This section contains 18 questions.
ii. A candidate has to do 11 questions.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.

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 SECTION A: OBJECTIVE TYPE QUESTIONS

Q. 1 Answer any 4 out of the given 6 questions on Employability Skills (1 x

4 = 4 marks)
i. It arises because of incentives or external rewards. 1
a. Intrinsic motivation
b. Extrinsic motivation
c. Realistic Motivation
d. Unrealistic Motivation
ii. What is incorrect in SMART Goal? 1
a. Specific
b. Measurable
c. Action-oriented
d. Readable Time
iii. In the spreadsheet, you can see a worksheet with cells placed in 1
_____but not _______.
a. Row , column
b. Column , Row
c. Row Horizontal , column vertical
d. Row , column horizontal
iv. You can use the given icons on the _____to align the text. 1
a. Tool Bar
b. Spread
c. Sheet
d. Bar Code
v. Which of the following is not a Characteristic of entrepreneurship? 1
a. It is an economic activity done to create, develop and maintain
a profit-oriented organisation.
b. It begins with identifying an opportunity as a potential to sell
and make profit in the market.
c. It deals with optimization in utilization of resources
d. It is the inability of an enterprise and an entrepreneur to take
risks.
vi. Which of the following is not a type of entrepreneur? 1
a. Service entrepreneurs
b. Business entrepreneurs
c. Industrial entrepreneurs
d. Last generation entrepreneurs

Q. 2 Answer any 5 out of the given 7 questions (1 x 5 = 5 marks)

i. What is meant by Primary Market? 1

ii. The securities market has essentially three categories of participants 1

(i) the investors, (ii) the issuers and _________.
a. Foreigners
b. the Intermediaries
c. Government
d. Regulators
iii. What is meant by Demutualisation? 1

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 iv. This category of membership entitles a member to clear and settle 1
trades of such members of the Exchange who choose to clear and
settle their trades through this member.
a. Trading Member
b. Trading cum self-clearing member
c. Trading cum clearing member
d. Professional Clearing member

v. Failure to submit audited accounts by a trading member in which 1

type of conduct?
a. Misconduct
b. Un-businesslike conduct
c. Unprofessional Conduct
d. Unknown conduct

vi. Members should have a prudent system of risk management to 1

protect themselves from client default. ________is an important
element of such a system.
a. NSCCL
b. Margin
c. Capital
d. Unique Client Code

vii. ___________note is a confirmation of trade(s) done on a particular 1

day for and on behalf of a client.
a. Primary Market Note
b. Secondary Market Note
c. Contract Note
d. Trading Member Note

Q. 3 Answer any 6 out of the given 7 questions (1 x 6 = 6 marks)

i. ______are users at the lowest level of the hierarchy. 1
a. Corporate Manager
b. Branch Manager
c. City Manager
d. Dealer

ii. Which of the following is not an activity of Normal market open 1

phase?
a. Order Entry
b. Order Modification
c. Order Cancellation
d. Order Auction
iii. What is meant by SURCON? 1

iv. An indicator for corporate actions for a security is another feature in 1

market watch. What does C* indicate here?
a. In case of more than one of CD, CR, CB, CI
b. In case of more than two of CD, CR, CB, CI
c. In case of more than three of CD, CR, CB, CI
d. In case of Less than two of CD, CR, CB, CI

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 v. The Activity Log (AL) shows all the activities that have been 1
performed on any order belonging to that user. Which of the
following is not a feature of activity log?
a. The AL gives details of all activities in chronological orders.
b. The activity consists only of orders entered by the requesting
trading member.
c. This inquiry option is not available to users in inquiry mode.
d. The user can modify orders from the outstanding orders screen.
vi. What is meant by Snap quote? 1
vii. OECLOB stands for 1
a. Open Electronic Consolidated limit order Book
b. Offer Electronic Consolidated limit order Book
c. Open Electronic Considered limit order Book
d. Open Electronic Combined limit order Book

Q. 4 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)

i. What is meant by Securities Pay-In? 1
ii. The roles of several entities involved in the process of clearing and 1
settling the trades executed on Exchanges except _______.
a. Clearing Corporation
b. Clearing Member
c. Clearing Bank
d. Clearing Regulator
iii. What is short delivery? 1
iv. Daily margins payable by the trading members in the Cash market 1
consists of the following except ______.
a. Value at Risk (VaR) margin
b. Mark to Market Margin
c. Extreme Loss Margin
d. Replacement cost margin
v. The VaR margin rate will be charged on the net outstanding 1
position _________of the respective clients on the respective
securities across all open settlements.
a. Buy Value-Sell Value
b. Buy-Sell
c. Buy Value + Sell Value
d. Buy + Sell
vi. Who allots ISIN’s for Government Securities? 1

Q. 5 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)

i. As per SEBI (Prohibition of Insider Trading) Regulations, 2015. A 1
person is to be a connected person if such person_________.
a. is an intermediary
b. is an official or an employee of a self-regulatory organisation
c. is a banker of the company
d. is a director
ii. The frequency with which interest is paid (compounded) will have 1
an effect on ___________.
a. Effective rate of return.
b. Reflective rate of return.
c. Rate of return.
d. rate of Simple interest

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 iii. Certain key financial parameters like Earnings Per Share (EPS), 1
P/E ratio, current size of equity etc. for arriving at the estimated
future price will be considered as _________.
a. Industry Analysis
b. Corporate Analysis
c. Financial Analysis
d. Technical Analysis
iv. Current Ratio Measures ___________. 1
a. Liquidity
b. Solvency
c. Profitability
d. Debt-Equity
v. Long term financial strength or soundness of a firm is measured in 1
terms of its ability to pay interest regularly or repay principal on due
dates or at the time of maturity is known as _______
a. Current Account Structure
b. Profitability Ratio
c. Leverage/Capital Structure
d. Earnings Per Share
vi. _________measures the profit available to the equity shareholders 1
per share, that is, the amount that they can get on every share held.
a. Leverage/Capital Structure
b. Earnings Per Share
c. Current Account Structure
d. Profitability Ratio

Q. 6 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)

i. They take positions in financial markets to earn riskless profits. 1
a. Hedgers
b. Speculators
c. Arbitrageurs
d. Regulators
ii. Mention any one limitation of Forward Market. 1

iii. The amount that must be deposited in the margin account at the 1
time a futures contract is first entered into is known as__________-
a. Initial margin
b. Marking-to-market
c. Maintenance margin
d. Payoff Margin
iv. _______measures the sensitivity of stocks responsiveness to 1
market factors.
a. Alpha
b. Beta
c. Gamma
d. Theta
v. What are American Options? 1
vi. What does the spot price > strike price depicts? 1
a. Call In the Money
b. Put In the Money
c. Call Out of the Money
d. Put Out of the Money

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 SECTION B: SUBJECTIVE TYPE QUESTIONS

Answer any 3 out of the given 5 questions on Employability Skills (2 x 3 = 6 marks)

Answer each question in 20 – 30 words.

Q. 7 Suggest any two techniques that can help us to maintain a positive outlook 2
in the long run.
Q. 8 There are five parameters that describe an individual’s personality. These 2
five dimensions are also called the ‘Big Five Factors’ and the model are
referred to as the ‘Five Factor Model’, Name them and define any one.
Q. 9 Write the procedure of Inserting clipart and images in presentation? 2
Q. 10 When a family or an individual runs a business successfully and passes it on 2
to the next generation, then such an entrepreneur is, generally, termed as
family business entrepreneur. Elaborate it
Q. 11 A startup is a company that is in the first stage of its operations. How do you 2
describe it?

Answer any 3 out of the given 5 questions in 20 – 30 words each (2 x 3 = 6 marks)

Q. 12 What is Security Descriptor? 2

Q. 13 What is operational and legal Risk? 2
Q. 14 What are the rights enjoyed by Preference shareholders? 2
Q. 15 Explain Impact Cost? 2
Q. 16 All Future contracts are square off at the expiry. What do you know about its 2
contract cycle?

Answer any 2 out of the given 3 questions in 30– 50 words each (3 x 2 = 6 marks)
Q. 17 Explain the conditions under which the relevant authority may require a 3
trading member to suspend its business in part or in whole?
Q. 18 When does order matching period start? Give the order matching the 3
sequence in the pre-open market?
Q. 19 The trading members are required to provide liquid assets which adequately 3
cover various margins & minimum capital requirements under capital
adequacy requirement. Describe its liquid asset requirement.

Answer any 3 out of the given 5 questions in 50– 80 words each (4 x 3 = 12 marks)

Q. 20 Explain the various categories of membership with NSE and NSCCL. 4

Q. 21 Describe the various advantages of the Screen-Based Trading System 4
(SBTS)?
Q. 22 VaR is a single number, which encapsulates whole information about the 4
risk in a portfolio. It measures potential loss from an unlikely adverse event
in a normal market environment. Computation of the VAR margin requires
four definitions. Explain them.

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Q. 23 Besides serving as a barometer of the economy/market, the index also has 4
other applications in finance. Various products have been designed based
on the indices such as the index derivatives, index funds and the exchange
traded funds. We here restrict our discussion to only index derivatives. How
does an index derivative earn popularity?
Q. 24 There are times when you think the market is going to rise over the next two 4
months; however in the event that the market does not rise, you would like
to limit your downside. One way you could do this is by entering into a
spread. A spread trading strategy involves taking a position in two or more
options of the same type, that is, two or more calls or two or more puts. A
spread that is designed to profit if the price goes up is called a bull spread.
Discuss the case with an example

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