McqMate
| 1. |
To frame the investment policy the investor should have |
| A. | knowledge about the company |
| B. | investable funds |
| C. | knowledge about the investment alternatives |
| D. | knowledge about the markets with funds |
| Answer» D. knowledge about the markets with funds | |
| 2. |
The stock is |
| A. | small units of equal value called shares |
| B. | knowledge about the markets with funds |
| C. | express in terms of number of shares |
| D. | fully paid up and partly paid up shares |
| Answer» D. fully paid up and partly paid up shares | |
| 3. |
Equityshare holders rights are listed below .one of the rights is incorrect |
| A. | right to have claims in the case of winding up of the company |
| B. | right to vote at the general body meeting of the company |
| C. | right to share profits in the form of dividends |
| D. | right to receive a copy of the statutory report |
| Answer» C. right to share profits in the form of dividends | |
| 4. |
In a limited company |
| A. | the share holders have to divided the debt of the company and pay |
| B. | the share holders are not liable to pay the debt |
| C. | the share holders have to pay the debt to the extent of their shares in the capital |
| D. | common stock and preference shareholders have to pay the debt |
| Answer» C. the share holders have to pay the debt to the extent of their shares in the capital | |
| 5. |
In case of nonvoting shares |
| A. | the rights of voting stocks and nonvoting stocks are similar |
| B. | rights and bonus issues for nonvoting shares can be issued in the form of voting shares |
| C. | the nonvoting shares would become voting shares after a particular period of time |
| D. | nonvoting shares carry higher dividends instead of voting rights |
| Answer» D. nonvoting shares carry higher dividends instead of voting rights | |
| 6. |
Zero coupon bonds has its origin in |
| A. | u.s security market |
| B. | wall street |
| C. | japans security market |
| D. | dalal street |
| Answer» A. u.s security market | |
| 7. |
Capital index bonds are linked with |
| A. | bse sensex |
| B. | nse nifty |
| C. | consumer price index |
| D. | bse-100 |
| Answer» D. bse-100 | |
| 8. |
The negotiable financial investment is different from the non negotiable financial investment in terms of |
| A. | maturity period |
| B. | interest rate |
| C. | transferability |
| D. | face value |
| Answer» C. transferability | |
| 9. |
investments made on a house property is a |
| A. | financial investment |
| B. | economic investment |
| C. | non negotiable financial investments |
| D. | non financial investments |
| Answer» D. non financial investments | |
| 10. |
Which one of the following is not a money market security |
| A. | treasury bills |
| B. | national saving certificate |
| C. | certificate of deposits |
| D. | commercial paper |
| Answer» B. national saving certificate | |
| 11. |
Commercial paper are |
| A. | unsecured promissory notes |
| B. | secured promissory note |
| C. | sold at premium |
| D. | issued for a period of 1 to 2 years |
| Answer» A. unsecured promissory notes | |
| 12. |
The present interest rate of PPF is |
| A. | 10% |
| B. | 8.5% |
| C. | 8.7% |
| D. | 8% |
| Answer» C. 8.7% | |
| 13. |
.This particular schemes helps in deferring the tax payment |
| A. | public provident fund |
| B. | national saving certificate |
| C. | national saving scheme |
| D. | life insurance scheme |
| Answer» B. national saving certificate | |
| 14. |
SEBI has made mandatory for the companies to disclose |
| A. | the yearly annual report |
| B. | monthly report and annual report |
| C. | quarterly and annual reporte |
| D. | monthly review and annual report |
| Answer» C. quarterly and annual reporte | |
| 15. |
The minimum number of shares to be applied for is |
| A. | 100 |
| B. | 200 |
| C. | 300 |
| D. | 500 |
| Answer» B. 200 | |
| 16. |
“Sell reliance petro shares at Rs.60”.this order is a |
| A. | best arte order |
| B. | limit order |
| C. | discretionary order |
| D. | stop loss order |
| Answer» B. limit order | |
| 17. |
The settlement cycle in BSE and NSE are |
| A. | 10 days |
| B. | 8 days |
| C. | 7 days |
| D. | 15 days |
| Answer» C. 7 days | |
| 18. |
The rolling settlement period introduced in the stock exchange is |
| A. | t+5 |
| B. | t+7 |
| C. | t+2 |
| D. | t+15 |
| Answer» B. t+7 | |
| 19. |
Mumbai stock exchange was recognized on a permanent basis in |
| A. | 1956 |
| B. | 1957 |
| C. | 1950 |
| D. | 1958 |
| Answer» B. 1957 | |
| 20. |
The VASAT which connects the main central computer means |
| A. | videshsanchar automated trading |
| B. | videshsanchar aperture terminal |
| C. | very special aperture terminal |
| D. | very small aperture terminal |
| Answer» D. very small aperture terminal | |
| 21. |
Clearing and settlement operations of the NSE is carried out by |
| A. | national security depository ltd |
| B. | national security clearing cooperation |
| C. | state bank of india |
| D. | by the exchange itself |
| Answer» B. national security clearing cooperation | |
| 22. |
Inter connected stock exchange is to interlink |
| A. | the bse ,nse ,otcei |
| B. | all the stock exchanges |
| C. | fifteen regional stock exchanges |
| D. | fourteen regional stock exchanges |
| Answer» C. fifteen regional stock exchanges | |
| 23. |
Over the counter exchange of India was started after the role model of |
| A. | nasaq |
| B. | jasaq |
| C. | nasaq & jasaq |
| D. | nse |
| Answer» C. nasaq & jasaq | |
| 24. |
To be listed on the OTCEI, the minimum capital requirement for a company is |
| A. | rs.5 crores |
| B. | rs.3crores |
| C. | rs.2 crores |
| D. | rs.1 crores |
| Answer» B. rs.3crores | |
| 25. |
According to SEBI guidelines |
| A. | all the new issues should be in depository mode |
| B. | all the a group shares should be traded through nsdl |
| C. | all the b group shares should be traded trough nsdl |
| D. | all the above are true |
| Answer» A. all the new issues should be in depository mode | |
| 26. |
The sensex has |
| A. | 25 stocks |
| B. | 30 stocks |
| C. | 33 stocks |
| D. | 35 stocks |
| Answer» B. 30 stocks | |
| 27. |
The NSE –nifty base period is |
| A. | 1992 |
| B. | 1993 |
| C. | 1994 |
| D. | 1995 |
| Answer» D. 1995 | |
| 28. |
The promoters contribution should not be less than |
| A. | 25 % of the issue size |
| B. | 20 % of the issue size |
| C. | 30 % of the issue size |
| D. | 33 % of the issue size |
| Answer» B. 20 % of the issue size | |
| 29. |
These are instruments, which give a fixed rate of interest for a fixed period of maturity. |
| A. | debts |
| B. | equities |
| C. | mutual fund |
| D. | virtual office |
| Answer» A. debts | |
| 30. |
This pools money from investors and invest in different securities information technology. |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» C. mutual funds | |
| 31. |
An investor becomes the owner of a company to the extent of the capital invested by |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | none of the above |
| Answer» B. equities | |
| 32. |
The variability in a security’s returns resulting from fluctuations in the aggregate market is known as; |
| A. | market risk |
| B. | interest rate risk |
| C. | purchasing power risk |
| D. | regulation risk |
| Answer» A. market risk | |
| 33. |
The variability in a security’s return resulting from changes in the level of interest rates is referred to as; |
| A. | market risk |
| B. | interest rate risk |
| C. | purchasing power risk |
| D. | regulation risk |
| Answer» B. interest rate risk | |
| 34. |
Inflation risk is also known as. |
| A. | market risk |
| B. | interest rate risk |
| C. | purchasing power |
| D. | regulation risk |
| Answer» C. purchasing power | |
| 35. |
This is the stock valuation method that uses financial data to predict price movements. |
| A. | technical analysis |
| B. | company analysis |
| C. | fundamental analysis |
| D. | none of the above |
| Answer» C. fundamental analysis | |
| 36. |
These are the market risks that cannot be diversified. |
| A. | systematic risk |
| B. | unsystematic risk |
| C. | counter party risk |
| D. | none of the above |
| Answer» A. systematic risk | |
| 37. |
Technical analysis gained popularity from the writings of. |
| A. | adam smith |
| B. | markowitz |
| C. | charles dow |
| D. | none of the above |
| Answer» C. charles dow | |
| 38. |
Modern portfolio theory was introduced by, |
| A. | adam smith |
| B. | markowitz |
| C. | charles dow |
| D. | none of these |
| Answer» B. markowitz | |
| 39. |
This is a market for short-term funds. |
| A. | money market |
| B. | capital market |
| C. | commodity market |
| D. | none of these |
| Answer» A. money market | |
| 40. |
This is a short term indigenous bill of exchange |
| A. | trade bills |
| B. | hundis |
| C. | treasury bills |
| D. | none of the above |
| Answer» B. hundis | |
| 41. |
Call money is mainly used by the banks to meet their. |
| A. | temporary requirement of cash |
| B. | long term requirement of cash markowitz |
| C. | medium term requirement of cash charles dow |
| D. | none of above |
| Answer» A. temporary requirement of cash | |
| 42. |
These are short-term securities issued by the RBI on behalf of the government of India. |
| A. | trade bill |
| B. | hundis |
| C. | treasury bills |
| D. | none of these |
| Answer» C. treasury bills | |
| 43. |
The primary objective of this instrument is to provide some degree of flexibility in the credit portfolio of banks |
| A. | treasury bills |
| B. | interbank participation certificate |
| C. | certificate of deposits |
| D. | all of the above |
| Answer» B. interbank participation certificate | |
| 44. |
This is a market for medium and long-term funds |
| A. | money market |
| B. | capital market |
| C. | commodity market |
| D. | none of the above |
| Answer» B. capital market | |
| 45. |
This refers to the market for government and semi-government securities backed by the RBI |
| A. | money market |
| B. | capital market |
| C. | gilt edged market |
| D. | none of the above |
| Answer» C. gilt edged market | |
| 46. |
These shares have a preferential right to the payment of dividend and to the return of capital at the time of winding up of the company. |
| A. | equity share |
| B. | preference share |
| C. | bonus share |
| D. | none of the above |
| Answer» B. preference share | |
| 47. |
This is a document which either creates a debt or acknowledges it. These are short-term securities issued by the RBI on behalf of the Government of India. |
| A. | trade bills |
| B. | debentures |
| C. | treasury bill |
| D. | none of the above |
| Answer» C. treasury bill | |
| 48. |
These bonds are the bonds issued at a discount and repaid at a face value. |
| A. | convertible bond |
| B. | zero coupon bond |
| C. | deep discount bond |
| D. | all of the above |
| Answer» B. zero coupon bond | |
| 49. |
This fund is one that is available for subscription all through the year. |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» A. open end fund | |
| 50. |
This fund is open for subscription only during a specified period. |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» B. closed end fund | |
| 51. |
These funds are stock funds that invest in stocks with the potential for long term capital appreciation. |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» C. growth fund | |
| 52. |
The aim of this fund is to provide regular and steady income to investors |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» D. income fund | |
| 53. |
Stock mutual funds also sometimes called |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | equity fund |
| Answer» D. equity fund | |
| 54. |
Each contract is custom designed, and hence is unique in terms of contract size, expiration date and asset type and quality. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» A. forward contract | |
| 55. |
These contracts are standardized and hence traded in stock exchanges. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 56. |
The credit risk of future is -------- than that of forwards: |
| A. | lower |
| B. | higher |
| C. | average |
| D. | none of the above |
| Answer» A. lower | |
| 57. |
The buyer or holder of the option purchases the right from the seller for a consideration called; |
| A. | remuneration |
| B. | premium |
| C. | discount |
| D. | none of these |
| Answer» B. premium | |
| 58. |
This option gives the holder or buyer , the right to buy specified quantity of the underlying asset at a specified price on or before a specified time. |
| A. | call option |
| B. | put option |
| C. | main option |
| D. | none of the above |
| Answer» A. call option | |
| 59. |
This option gives the holder or buyer, the right to sell specified quantity of the underlying asset at a specified price on or before a specified time. |
| A. | call option |
| B. | put option |
| C. | main option |
| D. | none of the above |
| Answer» B. put option | |
| 60. |
These are instruments, which give a fixed rate of interest for a fixed period of maturity. |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» A. debts | |
| 61. |
This pools money from investors and invest in different securities |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» C. mutual funds | |
| 62. |
An investor becomes the owner of a company to the extent of the capital invested by him |
| A. | debts |
| B. | equities |
| C. | mutual fund |
| D. | virtual office |
| Answer» B. equities | |
| 63. |
Which of the following I not an Indian index |
| A. | sensex |
| B. | nasdaq |
| C. | nifty |
| D. | none of the above |
| Answer» B. nasdaq | |
| 64. |
Find the odd one from the following |
| A. | nasdaq |
| B. | dow jones |
| C. | nyse |
| D. | nifty |
| Answer» D. nifty | |
| 65. |
Holders of fixed income securities are…… of the issuer |
| A. | debtor |
| B. | creditor |
| C. | owner |
| D. | supplier |
| Answer» B. creditor | |
| 66. |
Treasury bills are actually a class of; |
| A. | securities of companies |
| B. | central government securities |
| C. | equities |
| D. | none of the above |
| Answer» B. central government securities | |
| 67. |
These bonds are issued at a discount and repaid at a face value. |
| A. | zero coupon bond |
| B. | debentures |
| C. | equity share |
| D. | none of the above |
| Answer» A. zero coupon bond | |
| 68. |
This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue |
| A. | current yield |
| B. | coupon rate |
| C. | market rate |
| D. | none of the above |
| Answer» B. coupon rate | |
| 69. |
The return on the instrument is held till its maturity is known as |
| A. | current yield |
| B. | coupon rate |
| C. | ytm |
| D. | none of the above |
| Answer» C. ytm | |
| 70. |
Fundamental analysis is a …………….method that uses financial &economic analysis to predict the movement of stock price. |
| A. | sale valuation method |
| B. | stock valuation method |
| C. | purchase valuation method |
| D. | all of the above |
| Answer» B. stock valuation method | |
| 71. |
Industrial growth is a type of ……………. |
| A. | economic analysis |
| B. | industrial analysis |
| C. | company analysis |
| D. | none of these |
| Answer» A. economic analysis | |
| 72. |
.Which of the following is not a stage of business cycle |
| A. | recovery |
| B. | depression |
| C. | boom |
| D. | inflation |
| Answer» D. inflation | |
| 73. |
……………….is generally described as homogenous of companies |
| A. | business |
| B. | profession |
| C. | industry |
| D. | group of company |
| Answer» C. industry | |
| 74. |
. EPS = ……………. / outstanding share |
| A. | gross profit |
| B. | net-earning |
| C. | net loss |
| D. | capital employed |
| Answer» B. net-earning | |
| 75. |
…………… = stock price/ EPS |
| A. | price to earnings ratio |
| B. | price to sale ratio |
| C. | eps |
| D. | none of these |
| Answer» A. price to earnings ratio | |
| 76. |
Book value = asset + …………….. |
| A. | capital |
| B. | liability |
| C. | current asset |
| D. | current liability |
| Answer» B. liability | |
| 77. |
ROE stands for ………………. |
| A. | rate of equity |
| B. | rate of earning |
| C. | . return on equity |
| D. | none of these |
| Answer» C. . return on equity | |
| 78. |
Defective practice is one of the ……………fundamental of analysis |
| A. | tool |
| B. | criticism |
| C. | advantages |
| D. | none of these |
| Answer» B. criticism | |
| 79. |
. ROE is calculated by dividing……….by book value |
| A. | net income |
| B. | gross income |
| C. | cost |
| D. | all of these |
| Answer» A. net income | |
| 80. |
Which of the following is not a tool of fundamental analysis |
| A. | price to sale ratio |
| B. | price to earnings ratio |
| C. | price to purchase ratio |
| D. | none of these |
| Answer» C. price to purchase ratio | |
| 81. |
This is stock valuation method that uses financial data to predict price movement |
| A. | company analysis |
| B. | fundamental analysis |
| C. | technical analysis |
| D. | none of these |
| Answer» B. fundamental analysis | |
| 82. |
Funtamntal analysis is ……………. |
| A. | time consuming |
| B. | time saving |
| C. | expensive |
| D. | none of these |
| Answer» A. time consuming | |
| 83. |
The underwriting commission in the case of debentures cannot exceed |
| A. | 1 percentage |
| B. | 3.5 percentage |
| C. | 5 percentage |
| D. | 2.5 percentage |
| Answer» D. 2.5 percentage | |
| 84. |
The cheapest method of selling new securities is |
| A. | sale through clearing houses |
| B. | direct sales to public through prospects |
| C. | right issue |
| D. | stock exchange placing |
| Answer» D. stock exchange placing | |
| 85. |
The first exchange was to set up in India was in |
| A. | delhi |
| B. | chennai |
| C. | mumbai |
| D. | kolkata |
| Answer» C. mumbai | |
| 86. |
A ---------is not a speculator in the stock exchange |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | broker |
| Answer» D. broker | |
| 87. |
A - ---- expects a fall in the prices of securities in the near future |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | broker |
| Answer» B. bear | |
| 88. |
The most important function of the new issues market is to provide |
| A. | direction to the flow of capital |
| B. | liquidity to the securities |
| C. | facilities for conversion of savings into investments |
| D. | an opportunity for new entrepreneurs to succeed |
| Answer» C. facilities for conversion of savings into investments | |
| 89. |
The first exchange was set up in the in the year |
| A. | 1847 |
| B. | 1875 |
| C. | 1905 |
| D. | 1923 |
| Answer» B. 1875 | |
| 90. |
Which of the following represents components of the organized sector of the capital market? |
| A. | stock exchange |
| B. | commercial banks |
| C. | investors |
| D. | all the above |
| Answer» D. all the above | |
| 91. |
The new issue market pertains to |
| A. | second hand securities |
| B. | new securities |
| C. | new as well as second hand securities |
| D. | only trail launches into the market |
| Answer» B. new securities | |
| 92. |
Trading securities beyond the official trading hours of the stock exchange is called |
| A. | hammering |
| B. | margin trading |
| C. | short trading |
| D. | kerb trading |
| Answer» D. kerb trading | |
| 93. |
The gilt-edged market refers to the market for |
| A. | govt and semi govt securities |
| B. | industrial securities |
| C. | shares and debentures |
| D. | public limited company securities |
| Answer» A. govt and semi govt securities | |
| 94. |
First mutual fund of India is |
| A. | reserve bank of india |
| B. | state bank of india |
| C. | unit trust of india |
| D. | government of india |
| Answer» C. unit trust of india | |
| 95. |
Mutual fund schemes can be operated by |
| A. | assets management company |
| B. | public sector banks |
| C. | financial institutions |
| D. | any of these |
| Answer» A. assets management company | |
| 96. |
Regulation authority of stock exchange is |
| A. | indian companies act |
| B. | stock exchange act |
| C. | securities contact(regulation) act |
| D. | all of the above |
| Answer» C. securities contact(regulation) act | |
| 97. |
When a bear find it difficult to meet his commitments immediately, he is called a |
| A. | stag |
| B. | lame duck |
| C. | lame bear |
| D. | lame bull |
| Answer» B. lame duck | |
| 98. |
The securities contract (regulation )act came into force with effect from |
| A. | 1949 |
| B. | 1954 |
| C. | 1956 |
| D. | 1957 |
| Answer» D. 1957 | |
| 99. |
Following is the largest mutual fund business in India |
| A. | unit trust of india |
| B. | state bank of india |
| C. | canara bank |
| D. | tata |
| Answer» A. unit trust of india | |
| 100. |
What denotes the acquisition of a right to purchase securities? |
| A. | put option |
| B. | call option |
| C. | double option |
| D. | none of the above |
| Answer» B. call option | |
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