SEBI 2020 Phase 2 Paper 2 Memory Based Questions

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Phase-II - Paper-2
Memory-Based Questions
From SEBI Gr. A 2020 Exam
For SEBI Grade A Exam

SEBI -2020-Phase-2-Paper-2-Memory-Based-Questions Free SEBI e-book
Memory-Based Paper
For SEBI Gr. A 2020 – Phase-II – Paper-2
Q. 1. If the demand curve is negatively sloped, then the Law of demand says that quantity
demand is related with -------.
(1) Market
(2) Price
(3) People
(4) Supply
(5) None of the above
Answer Key: (2)
Q. 2. The Phillips Curve is a relationship between
(1) Inflation and unemployment

(2) Inflation and quantity demand
(3) Quantity demand and price
(4) Demand and Supply
Answer Key: (1)
Q. 3. From the following, select the correct phase of the business cycle.
(1) Expansion, Recession, Trough, Recovery

(2) Recession, Trough, Recovery, Expansion
(3) Trough, Recession, Expansion, Recovery
(4) Recovery, Expansion, Recession, Trough
(5) Recession, Expansion, Trough, Recovery
Answer Key: (4)
Q. 4. Calculate the amount of net profit from the following.
The Nifty Option Contract has 75 shares per lot. A person bought a call option on Nifty for 10
lots. The premium per share was Rs 50. He exited the option contract when the premium per
share was Rs 80. In the whole transaction, his total expenses were Rs 225.
(1) Rs 22500
(2) Rs 22275
(3) Rs 22050
(4) Rs 22000
(5) None of the Above
Answer Key: (2)
Q. 5. If a hotel provides complimentary breakfast to its guests, then what kind of supply is
this in the context of GST?
(1) Composite Supply

(2) Mixed Supply
(3) Exempt Supply
(4) No Supply
Answer Key: (1) Composite Supply
Q. 6. Who among the following appoints the special auditor?
(1) Board of Directors

(2) CAG
(3) Central Government
(4) SEBI
Answer Key: (3)
Q. 7. Which of the following does not appear in Cash Budget?
(1) Collection from Debtors

(2) Depreciation
(3) Cash Sales
(4) Cash Disbursement
Answer Key: (2)
Q. 8. The Auditor can be removed before the expiry of his term by which of the following?

(2) Shareholders

(4) SEBI
Answer Key: (2)
Q. 9. What is the difference between M1 and M3 in money supply in India?
(1) Savings deposits with the Post Office savings bank

(2) Currency with the public
(3) Other deposits with RBI
(4) Time Deposits with the banking system
Answer Key: (4)
Q. 10. Income and employment as per Keynes theory are determined by which of the
following?
(1) Price
(2) Aggregate Supply
(3) Aggregate Demand
(4) Effective Demand
Answer Key: (4)
Q. 11. Which section of the Companies Act gives power to SEBI to issue capital and transfer
of shares?
(1) Section 24
(2) Section 47
(3) Section 144
(4) Section 182
(5) Section 8
Answer Key: (1)
Q. 12. Which one of the following is indicated by the Open Interest?
(1) The number of long contracts

(2) The number of short contracts
(3) The number of contracts outstanding
(4) The number of contracts settled

Answer Key: (3)
Q. 13. 8000 units were introduced in the process. 5% is the normal loss. 6600 units were
transferred to the next process. WIP is 1000 units which are 60% complete. Find the
Equivalent Units.
(1) 6200 units

(2) 7600 units
(3) 7200 units
(4) 6800 units
(5) 6300 units
Answer Key: (3)
Q. 14. Calculate the total machine cost from the following

Machine Cost = Rs 15 lakh
Cartage = Rs 2000
Freight = Rs 25000 Installation= Rs 40000 Testing = Rs 18000
(1) Rs 15.67 lakh

(2) Rs 15.27 lakh
(3) Rs 15.85 lakh
(4) Rs 15.45 lakh
Answer Key: (3)
Q. 15. Sales unit is 162500. The total Actual Cost is Rs 3 lakhs. The actual Fixed Cost is Rs
87000 (in line with budgeted cost}. Total Actual Cost is Rs 18000 more than the budgeted
cost. Find the Budgeted Variable Cost per unit.
(1) 2.27
(2) 1.74
(3) 2.43
(4) 1.20
(5) 1.42
Answer Key: (4)

Q. 16. The Selling price per unit is Rs 40. The P/V Ratio is 40%. The number of fixed costs
= Rs 60,000. Find the BEP in units.
(1) 3750 units

(2) 3250 units
(3) 3500 units
(4) 3675 units
(5) 3720 units
Answer Key: (1)
Q. 17. MRP II is related to which of the following?
(1) Production Design Technique

(2) Selling and Distribution Development Technique
(3) Price Reduction Technique
(4) Efficient Marketing Technique
Answer Key: (1)
Q. 18. Roles and Responsibilities of forwarding Market Commission duties are transferred
to
(1) SEBI
(2) RBI
(3) SBI
(4) NSE
(5) BSE
Answer Key: (1)
Q. 19. Reduction of share capital can be done with the approval of which of the following
organizations?
(1) SEBI
(4) Special Resolution
Answer Key: (4)

Q. 20. Stock Price is Rs 60. The Initial Margin is 40% and the Maintenance Margin is 20%. At
what price the Margin Call would be made?
(1) Rs 24
(2) Rs 36
(3) Rs 48
(4) Rs 12
Answer Key: (3)
Q. 21. What kind of a role the manager is performing when he is representing the
company in all the industry meetings?
(1) Monitor
(2) Disseminator
(3) Spokesperson
(4) Figurehead
Answer Key: (3)
Q. 22. If a manager informs employees of policies and related stuff, then the role played is
that of a ___________.
(1) Leader
(2) Liaison
(3) Resource Allocator
(4) Disseminator
(5) Spokesperson
Answer Key: (4)
Q. 23. The role played by an HR manager in the career planning, training and development
of a worker is -----.
(1) Strategist
(2) Welfare
(3) Counsellor
(4) Spokesperson
(5) Developmental
Answer Key: (5)

Q. 24. Which of the following is a technique of Inventory Management?
(1) ABC Analysis

(2) Standard Costing
(3) Marginal Costing
(4) Process Costing
Answer Key: (1)
Q. 25. Net Profit = Rs 30,000. Collection from debtors = Rs 2500. Paid to creditors = Rs 7500.
What is the net cash flow from operations?
(1) Rs 32,500
(2) Rs 25,000
(3) Rs 27,500
(4) Rs 35,000
(5) None of above
Answer Key: (2)
Q. 26. When the company dissolves, which of the following the debenture holders have the
right to receive?
(1) Principal and Interest

(2) Principal
(3) Interest
(4) Dividend
Answer Key: (1)
Q. 27. Which of the following constitutes a fiscal deficit?
(1) Total expenditure

(2) Revenue received - total expenditure
(3) Loan expenditure
(4) Total revenue received + Recovered loan and other receipts - Total Expenditure
(5) Total Borrowings
Answer Key: (4)

Q. 28. What is the difference between GVA at Basic Price and GDP?
(1) Investments
(2) Taxes and Subsidies
(3) Taxes
(4) Subsidies
Answer Key: (2)
Q. 29. As per law what is this company called when 1 partner has 999 shares and another
has 1 share?
(1) Illegal company

(2) Monopoly
(3) Partnership
(4) Private Company
Answer Key: (4)
Q. 30. Which of the following will not affect the Current Account Deficit?
(1) Capital Inflow

(2) Consumer Spending
(3) Forex Outflow
(4) Savings rate
(5) Natural Resources
Answer Key: (5) Natural Resources
Q. 31. Which instrument is used by foreign entities not registered with SEBI to invest in
Indian markets via registered brokers?
(1) Participatory Notes

(2) IDR
(3) GDR
(4) Both Band C
Answer Key: (1)

Q. 32. Which of the following is not a part of the Money Market?
(1) Commercial Papers

(2) T-bills
(3) Derivatives
(4) Certificate of Deposits
Answer Key: (3)
Q. 33. Net Profit Ratio is 5%. Total Assets= Rs 90,00,000. Return on Assets= 9%. Find the
total assets turnover ratio.
(1) 1.7
(2) 1.8
(3) 2.3
(4) 3.6
Answer Key: (2)
Q. 34. Which of the following is considered the most volatile investment?
(1) FDI
(2) FPI
(3) ECB
(4) All of the above
Answer Key: (2)
Q. 35. Financial goods and services are provided to economically weaker sections at
affordable price by financial institutions then it is called?
(1) Financial Inclusion

(2) Fiscal Deficit
(3) Tax Exemption
(4) Subsidies
Answer Key: (1)

Q. 36. Profit on Forfeiture shares after reissue is transferred to
(1) General Reserve

(2) Debenture Redemption Reserve
(3) Securities Premium Reserve
(4) Capital Reserve
Answer Key: (4)
Q. 37. In trait approach theory, intelligence, emotion, knowledge form which trait of the
leader?
(1) Intellectual
(2) Personality
(3) Communication
(4) Conscientious
Answer Key: (1)
Q. 38. Over and Under Absorption of Overheads due to normal factors are _____.
(1) Charged to Financial Profit and Loss Account

(2) Charged to Costing Profit and Loss Account
(3) Treated using Supplementary Rate
(4) They are not rectified
Answer Key: (3)
Q. 39. Calculate exchange profit & Loss for 2011-12 and 2012-13 as per ASll?
Goods worth Rs 1 Lakh purchased on 23/03/2012 at Rs 46.60 per dollar rate on 31st March
2012 = Rs 47 per dollar.
In May 2012 when payment was made, the exchange price was Rs 47.5 per dollar
(1) Rs 40,000
(2) Rs 50,000
(3) Rs 90,000
(4) Rs 10,000
Answer Key: (3)

Q. 40. Which of the following are qualities of an effective leader?
(1) Task-Oriented
(2) Task-Oriented and Concern for the Team, make employees feel needed
(3) Relationship Oriented but not task-oriented
(4) Self-centred
Answer Key: (2)
Q. 41. Long term borrowings maturing in the current year are shown in the balance sheet
under which head?
(1) Current Assets

(2) Fixed Assets
(3) Long-term liabilities
(4) Current liabilities
Answer Key: (4)
Q. 42. What is considered as the life spark of management and includes motivating, guiding,
etc. to the employees?
(1) Controlling
(2) Directing
(3) Planning
(4) Organizing
Answer Key: (2)
Q. 43. Which of the following is aimed at eliminating waste and increasing efficiency?
(1) Six Sigma

(2) Kaizen
(3) Business Process Re-engineering
(4) Both 2 and 3
Answer Key: (2)

Q. 44. Which of the following is a psychological barrier?
(1) Highly Attentive

(2) High Retention
(3) Premature Evaluation
(4) Good Emotions
Answer Key: (3)
Q. 45. What is the difference between morale and motivation?
(1) Motivation motivates whereas Morale inspires

(2) Motivation Inspires whereas Morale Motivates
(3) Motivation is a group concept whereas Morale is an Individual Concept
(4) Motivation is an Individual concept whereas Morale is a group Concept
Answer Key: (4)
Q. 46. Which of the following sections of the Companies Act 2013 deals with the removal of
the name of the company from the register of the companies?
(1) Section 248(2)

(2) Section 141(3)
(3) Section 257(1)
(4) Section 182(2)
Answer Key: (1)
Q. 47. Which of the following is not a component of cash flow from operations?
(1) Settling off-trade payables

(2) Collection from debtors
(3) Both A and B
(4) Payment to the supplier of machinery
Answer Key: (1)

Q. 48. Which of the following is true about Oral Communication?
(1) It acts as a legal proof

(2) It is not suitable for addressing people
(3) Oral communication is more reliable than written communication
(4) Oral Communication is a kind of informal communication
(5) All of the above
Answer Key: (4)
Q. 49. Effect of Change in Forex rate. Calculate Profit / loss for 2011 and 2012 Purchased
goods worth $1,00,000 @ Rs 46.60 in February 2011. The exchange rate on 31-3-2011 – Rs
47 Payment was made in April 2011 with the rate of Rs 47.50 Calculate profit or loss.
(1) 3700000
(2) 4300000
(3) 3400000
(4) 4700000
(5) 4100000
Answer Key: (4)
Q. 50. Which of the following sections of the Companies Act talks about the maximum or
the minimum number of directors in a company?
(1) Section 42 (1)

(2) Section 139(1)
(3) Section 49(1)
(4) Section 37(1)
(5) Section 149(1)
Answer key: (5)
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For SEBI Grade A Exam

Answer Key: (2)

Q. 2. The Phillips Curve is a relationship between

(1) Inflation and unemployment

Answer Key: (1)

(1) Expansion, Recession, Trough, Recovery

Answer Key: (4)

Q. 4. Calculate the amount of net profit from the following.

Answer Key: (2)

(1) Composite Supply

Answer Key: (1) Composite Supply

Q. 6. Who among the following appoints the special auditor?

(1) Board of Directors

Answer Key: (3)

Q. 7. Which of the following does not appear in Cash Budget?

(1) Collection from Debtors

Answer Key: (2)

(1) Board of Directors

(3) Central Government

Answer Key: (2)

Q. 9. What is the difference between M1 and M3 in money supply in India?

(1) Savings deposits with the Post Office savings bank

Answer Key: (4)

Answer Key: (4)

Answer Key: (1)

Q. 12. Which one of the following is indicated by the Open Interest?

(1) The number of long contracts

(4) The number of contracts settled

Answer Key: (3)

(1) 6200 units

Answer Key: (3)

Q. 14. Calculate the total machine cost from the following

(1) Rs 15.67 lakh

Answer Key: (3)

Answer Key: (4)

(1) 3750 units

Answer Key: (1)

Q. 17. MRP II is related to which of the following?

(1) Production Design Technique

Answer Key: (1)

Answer Key: (1)

Answer Key: (4)

Answer Key: (3)

Answer Key: (3)

Answer Key: (4)

Answer Key: (5)

Q. 24. Which of the following is a technique of Inventory Management?

(1) ABC Analysis

Answer Key: (1)

Answer Key: (2)

(1) Principal and Interest

Answer Key: (1)

Q. 27. Which of the following constitutes a fiscal deficit?

(1) Total expenditure

Answer Key: (4)

Answer Key: (2)

(1) Illegal company