Questions

Q:

What is hedging?

Answer

Hedging is a tool to minimize the risks. It is thus like an 'insurance' where one pays a premium but gets an assured amount in case of some uncertain event to the extent of the loss actually suffered on an equally opposite position for which the hedge was done. Thus, hedger is different from arbitrageur and speculators, as the intention here is not to maximize the profit but to minimize the loss.


E.g. In Capital Markets, suppose an investor has an equity portfolio of Rs. 2 lacs and the portfolio consists of all the major stocks of NIFTY. He thinks the market will improve in the long run but might go on a downside in the shortrun. NIFTY today stands at 4300. To minimize the risk of downfall, he enters into an option contract by buying NIFTY-PUT of strike 4300 at a premium of, say, Rs. 100. Thus, the actual amount paid is Rs. 5,000(lot size of NIFTY is 50). Also, the number of NIFTY-PUTs to be bought will vary on the beta of the portfolio so as to completely hedge the positon. 

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Subject: Finance

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Q:

Podsol is a type of soil which is characteristic of a region under the cover of _________forest

A) deciduous B) coniferous
C) evergreen D) alpine
 
Answer & Explanation Answer: B) coniferous

Explanation:

It develops in a region of  moderate rainfall and limited evaporation. It is agriculturally a poor soil but addition of lime and fertilizers would yield favourable results. Found extensively in northern Canada and northern Russia.

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Filed Under: World Geography

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Q:

I am an odd number. Take away a letter and I become even. What number am I?

Answer

The required number is SEVEN.


If you remove  S, it becomes EVEN.

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Subject: Word Puzzles Exam Prep: Bank Exams
Job Role: Bank Clerk

4 2610
Q:

When a barometer is rising air pressure is

A) increasing B) decreasing
C) constant D) zero
 
Answer & Explanation Answer: A) increasing

Explanation:

The device which is used to measure air pressure is called as barometer. If the barometer reading is rising, it indicates that the air pressure is increasing and if the reading is falling the air pressure is decreaing.

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Filed Under: Physics
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

4 2610
Q:

What branch of government is responsible for enforcing laws?

A) Judicial Branch B) Executive Branch
C) Legislative Branch D) All of the above
 
Answer & Explanation Answer: B) Executive Branch

Explanation:

Executive Branch of government is responsible for enforcing laws.

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Filed Under: Indian Politics
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

Distinguish between speculator and hedger?

Answer

The main difference lies in the motive of the two parties. The main motive of the hedger is to hedge(minimize) the risk from the occurence of some events. 


The motive of the speculator is to gamble in the market in order to make the profit by buying/selling the derivative products.


 

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Subject: Finance

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Q:

Is the data bus in Bi-directional?

Answer

The data bus is Bi-directional because the same bus is used for transfer of data between Micro Processor and momory of input / output devices in both the direction.

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Subject: Hardware

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Q:

A practice to learn something

a_practice_to_learn_something1551439875.jpg image

A) Poem B) Summary
C) Lesson D) Introduction
 
Answer & Explanation Answer: C) Lesson

Explanation:

A practice to learn something is a Lesson.

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