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:

Designing pricing strategies and programs :

How do buyers respond to price changes?

Answer

Depending upon the increase or decrease in price rates, buyers may respond accordingly. Some buyers may assume that quality of the product may have reduced to to reduction in price or that the company may not be selling the product as per expectations. The other assumption that buyers may make is that prices may go down in the future and so may delay purchase. On the other hand increased price may lead to a decrease in demand as the product may be more costly for the consumers who may switch to another seller offering similar products at lower prices.

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Q:

Which one of the following statements about Buddhist Stupas in India is not correct?

A) Ashoka played an important role in popularizing the Stupa cult. B) They were repositories of relics of Buddha and other monks.
C) They were located in rural areas. D) They were located close to trade routes.
 
Answer & Explanation Answer: C) They were located in rural areas.

Explanation:

A stupa is a mound-like or hemispherical structure containing relics that is used as a place of meditation.Buddhist sources claim that during the 3rd century BCE, the Mauryan Emperor Ashoka the Great ordered these eight stupas to be opened, further distributed the relics of the Buddha into 84,000 portions, and had stupas built over them all over the expanding Buddhist world.They were located on trade routes in order to propagate Buddhism.However, there were no evidence of them being located in rural areas.

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Filed Under: Indian History
Exam Prep: Bank Exams

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Q:

Jharia is famous for

A) Diamonds B) Coal mines
C) Pearls D) Gold mines
 
Answer & Explanation Answer: B) Coal mines

Explanation:

jharia_is_famous_for1559625961.jpg image

Jharia, a town in the sate Jharkand in India is famous for coal mines and resources. It plays an important role in the economy and development of the state.

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

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Q:

The two broad categories of software are

A) Drivers and MS office B) Application and Spreadsheets
C) System and Application D) Utility programs and System
 
Answer & Explanation Answer: C) System and Application

Explanation:

The two broad categories of software in a computer are

1. System software
2. Application software

 

the_two_broad_categories_of_software_are1560849803.jpg image

System software controls how the system works and enables user to access all of the system hardware and application software

The OS, utility programs and drivers come under system software.

 

Application software are software used by the user to perform specific task. They are installed according to the user's requirements.

The word processor, web browser, players, spreadsheets etc... come under this application software.

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

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Q:

The greenhouse effect is caused by

A) Deforestation B) Burning of Fossil Fuels
C) Increase in Population D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

The major greenhouse gases (GHG’s) solely responsible for greenhouse effect are Carbon dioxide, Ozone, Methane and Water vapor. Although these gases comprise 1% of our atmosphere, they act like a thick warm blanket outside that surrounds this planet and regulate climate control. Greenhouse effect is not bad. In fact, it is needed for all of us to survive on planet Earth. In short, the greenhouse effect is nothing but a naturally occurring process designed by nature that aids in heating earth’s surface and helps to maintain ecological balance.

Now, while some of that heat dissipates into space, some of it burns along the atmosphere, and some of it penetrates the atmosphere and finds its way into the lower atmosphere and the planet’s surface. This in turn raises the average temperature of the Earth. Therefore, the increase in the Earth’s surface temperature due to increase in the number of greenhouse gases leads to global warming.

 

Causes of Green House Effects ::

 

* Burning of Fossil Fuels

* Deforestation 

* Increase in Population

* Farming

* Industrial Waste and Landfills.

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Filed Under: General Awareness
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

Which of the following agencies related to the United nations was in existence before the Second world war

A) Food and Agriculture Organisations B) International Labour Organisaions
C) World health organisations D) International Monitory found
 
Answer & Explanation Answer: B) International Labour Organisaions

Explanation:
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Filed Under: World Organisations

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Q:

CHKDSK command is used to

A) analyze the hard disk error B) diagnose the hard disk error
C) report the status of files on disk D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:
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