McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 1. |
Capital Market deals with __________ |
| A. | Short Term Funds |
| B. | Medium and Long Term Funds |
| C. | Both a and b |
| D. | None of the Above |
| Answer» B. Medium and Long Term Funds | |
| 2. |
In Secondary segment of Capital Market ____________ |
| A. | Fresh Capital is raised |
| B. | Trading of outstanding securities is done |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Trading of outstanding securities is done | |
| 3. |
Which of the following is a role of Capital Market? |
| A. | Capital Formation |
| B. | Promotion of Industrial Growth |
| C. | Development of backward areas of the country |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 4. |
Funds can be raised in Primary Market through |
| A. | Public Issue by Prospectus |
| B. | Private Placements |
| C. | Rights Issues |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 5. |
Primary Market is a market for : |
| A. | New Issues |
| B. | Outstanding Securities |
| C. | Land Records |
| D. | None of the above |
| Answer» A. New Issues | |
| 6. |
When an organization opts to convert private capital in to public capital, it is called _____________ |
| A. | Going Out |
| B. | Being Open |
| C. | Being Listed |
| D. | Going Public |
| Answer» D. Going Public | |
| 7. |
Bonus Shares enable the company to restructure its capital. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 8. |
Which of the following enables issuers to reap benefits arising from price and demand discovery? |
| A. | Public Issue by Prospectus |
| B. | Book Building |
| C. | Listing |
| D. | None of the above |
| Answer» B. Book Building | |
| 9. |
Which one of the following is not a feature of a Stock Exchange? |
| A. | Organised Market |
| B. | Dealing only Through Authorised Members |
| C. | Necessary to remain present physically for dealing |
| D. | Necessary to obey Rules and Bye-laws |
| Answer» C. Necessary to remain present physically for dealing | |
| 10. |
SENSEX is an Index of which Stock Exchange?. |
| A. | NSE |
| B. | OTCEI |
| C. | MCX |
| D. | None of the above |
| Answer» D. None of the above | |
| 11. |
Inclusion of a security in the official list of a stock exchange is called _________ and for that the company has to apply with ___________. |
| A. | Listing, Managing Committee of Stock Exchange |
| B. | Enrollment, Managing Committee of Stock Exchange |
| C. | Listing, Board of Directors of Stock Exchange |
| D. | Registration, ROC |
| Answer» A. Listing, Managing Committee of Stock Exchange | |
| 12. |
____________ was set up, as a strong need was felt to protect the interest of investors and to have a systematic and organized working of the securities market in India. |
| A. | Bombay Stock Exchange |
| B. | National Stock Exchange |
| C. | Over the Counter Exchange of India |
| D. | Securities and Exchange Board of India |
| Answer» D. Securities and Exchange Board of India | |
| 13. |
Collateral value of eligible Listed Securities is considered on …. |
| A. | Average market price |
| B. | Marked to market basis |
| C. | Reputation of the promoters |
| D. | None of the above |
| Answer» B. Marked to market basis | |
| 14. |
SBTS stands for |
| A. | Securities Buying and Trading Society |
| B. | Software Based Trading Services |
| C. | Selling and buying through screen |
| D. | Screen Based Trading System |
| Answer» D. Screen Based Trading System | |
| 15. |
Which is a mean to reduce the floating equity stock in the market? |
| A. | Sell off |
| B. | Negotiate |
| C. | Buy Back |
| D. | All of the above |
| Answer» C. Buy Back | |
| 16. |
Which Stock Exchange of India was the first to grant permission to brokers for internet trading? |
| A. | National Stock Exchange |
| B. | Bombay Stock Exchange |
| C. | Ahmedabad Stock Exchange |
| D. | Kolkata Stock Exchange |
| Answer» A. National Stock Exchange | |
| 17. |
Which Stock Exchange of India is based on the model of NASDAQ? |
| A. | BSE |
| B. | NSE |
| C. | ASE |
| D. | OTCEI |
| Answer» D. OTCEI | |
| 18. |
At present securities are issued in which form? |
| A. | Rematerialised |
| B. | Dematerialized |
| C. | Bank Credit |
| D. | None of the Above |
| Answer» B. Dematerialized | |
| 19. |
One of the features of Capital Market is ‘Ready and Continuous market’ which provides _____________ to the investors. |
| A. | Safety |
| B. | Long term Guarantee |
| C. | Liquidity |
| D. | None of the above |
| Answer» C. Liquidity | |
| 20. |
In ____________ market fresh capital is raised. |
| A. | Primary |
| B. | Secondary |
| C. | Intermediary |
| D. | National |
| Answer» A. Primary | |
| 21. |
Which is the market for financial assets that are close substitutes for money? |
| A. | Monetary Market |
| B. | Money Market |
| C. | Capital Market |
| D. | Currency Market |
| Answer» B. Money Market | |
| 22. |
Return on Treasury Bills is ___________ |
| A. | Coupon Rate |
| B. | Difference between Issue Price and Par Value |
| C. | Negotiated |
| D. | All of the above |
| Answer» B. Difference between Issue Price and Par Value | |
| 23. |
Commercial Paper is generally issued by: |
| A. | Reputed Corporates |
| B. | Reputed and highly rated Corporates |
| C. | RBI on behalf of the Central Government |
| D. | None of the above |
| Answer» B. Reputed and highly rated Corporates | |
| 24. |
Which Money Market instrument is a time deposit of specific maturity and issued in bearer form? |
| A. | Commercial Paper |
| B. | Commercial Bill |
| C. | Certificate of Deposit |
| D. | Call Money |
| Answer» C. Certificate of Deposit | |
| 25. |
In which Money Market instrument default risk is absent? |
| A. | Commercial Paper |
| B. | Certificate of Deposit |
| C. | Treasury Bills |
| D. | Inter Corporate Deposits. |
| Answer» C. Treasury Bills | |
| 26. |
Which of the following is considered to be the key segment of Indian Money Market? |
| A. | Call Money |
| B. | Commercial Bill |
| C. | Inter-Corporate Deposit |
| D. | Inter-Bank Participations |
| Answer» A. Call Money | |
| 27. |
Which of the following is an important tool to finance credit sales? |
| A. | Commercial Bill |
| B. | Treasury Bill |
| C. | Commercial Paper |
| D. | Certificate of Deposit |
| Answer» A. Commercial Bill | |
| 28. |
Credit Rating performs the function of credit risk evaluation reflecting the borrower’s expected capability to repay the debt as per terms of issue. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 29. |
Credit Rating is beneficial to : |
| A. | Subscribers |
| B. | Regulators |
| C. | Issuers |
| D. | All of the above |
| Answer» D. All of the above | |
| 30. |
First Credit Rating Agency of India is ____________. |
| A. | CRISIL |
| B. | CARE |
| C. | CARE |
| D. | Moody’s Investor Service |
| Answer» A. CRISIL | |
| 31. |
CARE stands for : |
| A. | Credit Appraisal and Research Enterprise |
| B. | Credit Analysis and Research Enterprise |
| C. | Credit Analysis and Research Limited |
| D. | Credit and Rating Enterprise. |
| Answer» C. Credit Analysis and Research Limited | |
| 32. |
Which of the following is not a part of rating methodology? |
| A. | Business Analysis |
| B. | Financial Analysis |
| C. | Management Evaluation |
| D. | Subscriber Evaluation |
| Answer» D. Subscriber Evaluation | |
| 33. |
ICRA was promoted by _____________ jointly with other leading investment institutions, commercial banks and financial service companies. |
| A. | ICICI |
| B. | IFCI |
| C. | IDBI |
| D. | LIC |
| Answer» B. IFCI | |
| 34. |
CRISIL was set up in which year? |
| A. | 1988 |
| B. | 1987 |
| C. | 1986 |
| D. | 1985 |
| Answer» A. 1988 | |
| 35. |
A statement demonstrating the movement of funds into and out of the business during the course of accounting period is known as ___________ |
| A. | Cash Flow Statement |
| B. | Fund Flow Statement |
| C. | Adjusted Profit & Loss Statement |
| D. | Statement of changes in Working Capital |
| Answer» B. Fund Flow Statement | |
| 36. |
Analysis of funds is rightly called an Analysis of __________ |
| A. | Working Capital |
| B. | Current Assets |
| C. | Current Liabilities |
| D. | None of the above |
| Answer» A. Working Capital | |
| 37. |
Which of the following rules stands true while preparation of Schedule of changes in working
|
| A. | 1 and 3 |
| B. | 1 and 4 |
| C. | 2 and 4 |
| D. | 1, 2,3 and 4 |
| Answer» A. 1 and 3 | |
| 38. |
Among the following items, which represents the source of fund? |
| A. | Increase in Capital |
| B. | Borrowing / Loan |
| C. | Profit from Business Operations |
| D. | All of the above |
| Answer» D. All of the above | |
| 39. |
Fund Flow Statement is also known as: |
| A. | Statement of Funds Flow |
| B. | Statement of Sources and Application of Funds |
| C. | Statement of Sources and uses of Funds |
| D. | All of the above |
| Answer» D. All of the above | |
| 40. |
Which of the following are sources of funds? 1.Issue of Bonus Shares 2.Issue of Shares against the purchase of Fixed Assets 3. Conversion of Debentures into Shares 4.Conversion of Loans into Shares |
| A. | A and C |
| B. | A and D |
| C. | All of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 41. |
Which of the following statements is true? 1. If the amount of good will increases during current year, the difference is treated as purchase of goodwill. 2. If the amount of good will decreases during current year, It will treated as written off. |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | None of the above |
| Answer» C. Both 1 and 2 | |
| 42. |
Which of the following are treated as long term investments? |
| A. | Non-current Investments |
| B. | Trade Investments |
| C. | Sinking Fund Investments |
| D. | All of the above |
| Answer» D. All of the above | |
| 43. |
The balance of fixed assets of Breej Ltd. at the end of 2018 and 2019 were Rs 5,70,800 and Rs 6,15,300. During the year 2019 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets. |
| A. | Rs. 1,04,500 |
| B. | Rs. 1,40,500 |
| C. | Rs. 1,64,500 |
| D. | Rs. 44,500 |
| Answer» A. Rs. 1,04,500 | |
| 44. |
For Ram Industries, the balance of property has beenRs 20,000 and Rs 17,000 in 2018 and 2019 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2019. Determine sale proceeds forproperty. |
| A. | Rs. 3,000 |
| B. | Rs. 10,000 |
| C. | Rs. 7,000 |
| D. | Rs. 15,000 |
| Answer» B. Rs. 10,000 | |
| 45. |
For Meghal Industries Ltd. opening balance for Provision for Taxation is Rs. 18,000 and closing balance is Rs. 15,000. During the year Taxed paid wereRs. 10,000. What is the current year’s Provision for Taxation made from the profit? |
| A. | Rs. 3,000 |
| B. | Rs. 13,000 |
| C. | Rs. 7,000 |
| D. | Rs. 23,000 |
| Answer» C. Rs. 7,000 | |
| 46. |
Which of the following are Non-current Assets? |
| A. | Land, Building and Plant |
| B. | Bills Receivable |
| C. | Debtors |
| D. | Pre-paid Expenses |
| Answer» A. Land, Building and Plant | |
| 47. |
Which of the following are Current Liabilities? |
| A. | Sundry Creditors |
| B. | Bank Overdraft |
| C. | Outstanding Salaries |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 48. |
When a part of the Fixed Assets is sold during the year, the Profit on sale is shown on the credit side of which Account? |
| A. | Adjusted Profit and Loss Account |
| B. | Profit and Loss Account |
| C. | Fixed Assets Accounts |
| D. | Liabilities Accounts |
| Answer» A. Adjusted Profit and Loss Account | |
| 49. |
The Funds Flow and Cash Flow statements fail to give a clear idea about profitability of the company. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 50. |
Among the following items which item is shown on the debit side of Adjusted Profit and Loss Account? |
| A. | Depreciation and other Non-cash Adjustments |
| B. | Appropriation of Profit |
| C. | Provision for Taxation |
| D. | All of the Above |
| Answer» D. All of the Above | |
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