Clear out the false trading claims

Exercise and reference answers

Questions

1. Question

   Three of these claims about a spot delivery contract are false.

   Choices

   1. Item

      Delivery may land on the very next day.

      Correct

      Yes

   2. Explanation

      The window is the same day or the next day only.

      Item

      Seven full days are allowed for delivery.

   3. Explanation

      Time taken by post for dispatch is left out.

      Item

      Postal time counts inside the window.

   4. Explanation

      Payment moves in the same short window as delivery.

      Item

      Payment may follow a fortnight later.

2. Question

   Three of these claims about recognising a stock exchange are false.

   Choices

   1. Item

      Withdrawal is dealt with by Section 5.

      Correct

      Yes

   2. Explanation

      Section 3 covers only the application stage.

      Item

      Section 3 grants the recognition.

   3. Explanation

      Sections 4 and 5 powers sit with SEBI too.

      Item

      Only the Central Government may act.

   4. Explanation

      Recognition here is not a Reserve Bank power.

      Item

      The Reserve Bank grants recognition.

Instructions

Tap away each wrong claim about stock exchange rules until only the true one survives.

Explanation