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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Q:

In which of the following, the cellular power plants - Mitochondria are absent?

A) Bacteria B) Red Algae
C) Brown Algae D) Green Algae
 
Answer & Explanation Answer: A) Bacteria

Explanation:

Mitochondria is absent in Bacteria as well as in Blue Green Algae. They are seen in eukaryotic cells for respiration purpose.

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Q:

Plants are photoautotrophs. What does this mean?

Answer

Photoautotrophs are those organisms that can make their own food using sun light with the help of the process of photosynthesis.


Plants can prepare their own food using sunlight. Hence they are Photoautotrophs.

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Q:

Who has been appointed as an Executive Director in the World Bank in the US ?

A) S Aparna B) Ashok Lavasha
C) Rahul Verma D) S C Garg
 
Answer & Explanation Answer: A) S Aparna

Explanation:
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Q:

4 years ago, the respective ratio between 1/2 of A’s age at that time and four times of B’s age at that time was 5 : 12. Eight years hence 1/2 of A’s age at that time will be less than B’s age at that time by 2 years. What is B’s present age ?

A) 10 years B) 12 years
C) 14 years D) 8 years
 
Answer & Explanation Answer: A) 10 years

Explanation:
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Q:

Name one problem that led to the civil war.

A) Slavery B) Economic reasons
C) State's Rights D) All the above
 
Answer & Explanation Answer: D) All the above

Explanation:
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Q:

In which place India's first HIV case reported in 1986?

A) Bangalore B) Delhi
C) Hyderabad D) Chennai
 
Answer & Explanation Answer: D) Chennai

Explanation:

In Chennai, Tamil Nadu place India's first HIV case reported in 1986 amongst the female sex workers.

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Q:

According to cell theory, which activity is impossible?

A) Cells being formed from pure water B) Heart cells forming from other heart cells
C) Plants using energy from the sun D) Eukaryotes being in a multicellular organism
 
Answer & Explanation Answer: A) Cells being formed from pure water

Explanation:

According to cell theory, Cells being formed from pure water is impossible.

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