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180+ Fundamentals of Investment Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Finance (B.Com Finance) .

1.

Equity cult is spreading very fast in India due to

A. high propensity to save among the Indians
B. tax concession on divided income in India
C. tax concession on capital gain in India
D. all of these
Answer» D. all of these
2.

Market where issuers sell new shares is called

A. Secondary market
B. primary market
C. stock market
D. None of these
Answer» B. primary market
3.

Private placement is preferred by companies ,because it is

A. cost effective
B. time effective
C. access effective
D. all of these
Answer» D. all of these
4.

Grey market is an

A. official market
B. unofficial market
C. regulated market
D. none of these
Answer» B. unofficial market
5.

The latest stock market to come up in India is

A. NSE
B. BSE
C. MCX – stock exchange
D. none of these
Answer» C. MCX – stock exchange
6.

Saving is for

A. Funding happy retirement
B. hedging inflation
C. materializing the dream
D. all of these
Answer» D. all of these
7.

Financial goals of an individual may be

A. funding retirement
B. marriage of daughter
C. buying a premium segment car
D. all of these
Answer» D. all of these
8.

Investment is the

A. person’s commitment to buy a flat or house
B. employment of funds on goods and services that are used in production process
C. employment of funds on assets to earn returns
D. none of these
Answer» C. employment of funds on assets to earn returns
9.

Investment is done with the following objective

A. stability of income ,capital growth
B. quick returns and short term profit
C. not for collateral value
D. not for tax benefits
Answer» A. stability of income ,capital growth
10.

Economic well being of a person depends on

A. how much you save
B. how much you invest
C. how wisely you invest
D. none of these
Answer» C. how wisely you invest
11.

Investor must be very cautious when he is buying shares belong to

A. A group
B. S group
C. Z group
D. none of these
Answer» C. Z group
12.

Bear market means

A. price of stocks continuously move up
B. confidence of the investor increases
C. prices keep falling continuously
D. none of these
Answer» C. prices keep falling continuously
13.

For trading in the stock exchange

A. Bank account is a must
B. PAN card is a must
C. demat account is a must
D. all of these
Answer» D. all of these
14.

Dematerialization eliminates the risk of

A. fake certificate
B. theft of share certificate
C. delay in the transfer of shares
D. all of these
Answer» D. all of these
15.

Merchant banking involves

A. Advisory services
B. issue management
C. market operations
D. all of these
Answer» D. all of these
16.

Inflation will

A. escalate the cost
B. reduce the purchasing power
C. reduce the saving
D. all of these
Answer» D. all of these
17.

India follows

A. Unified regulatory system
B. Sectorial regulatory system
C. Single regulatory system
D. None of these
Answer» B. Sectorial regulatory system
18.

Investment environment constitutes

A. Financial instruments
B. Financial markets
C. Financial intermediaries
D. all of these
Answer» D. all of these
19.

Stock exchange is

A. Primary market
B. Secondary market
C. Money market
D. None of these
Answer» B. Secondary market
20.

Financial planning is

A. Smart investment and smart spending
B. Good investment and lesser spending
C. Less investment and lesser spending
D. None of these
Answer» A. Smart investment and smart spending
21.

None marketable financial assets include

A. fixed deposits in banks
B. fixed deposits in NBFCs
C. postal deposits
D. all of these
Answer» D. all of these
22.

Which of the following is outside the purview of investment class?

A. Fixed deposits
B. Recurring deposits
C. Savings bank deposits
D. Current account deposits
Answer» D. Current account deposits
23.

Real estate investment means

A. Investment in houses
B. Investment in flats
C. Investment in bungalows
D. all of these
Answer» D. all of these
24.

Money market instruments are

A. Treasury bills
B. Certificate of deposit
C. Commercial paper
D. all of these
Answer» D. all of these
25.

Speculation involves

A. Investing for a long period
B. Action for a short period based on scientific lines
C. Illegal contract
D. all of these
Answer» B. Action for a short period based on scientific lines
26.

Which of the following are not money market instruments?

A. Treasury bills
B. Commercial Paper
C. Certificate of deposit
D. Fixed deposit receipt
Answer» D. Fixed deposit receipt
27.

Real estate investment does not include

A. Agricultural land
B. A second house
C. Commercial Property
D. Equity shares
Answer» D. Equity shares
28.

Which of the following is not a mutual fund scheme?

A. Equity schemes
B. Debt schemes
C. Balanced schemes
D. Mutual benefit schemes
Answer» D. Mutual benefit schemes
29.

Stock exchange is a place where

A. Shares are bought and sold
B. Debentures are bought and sold
C. Both shares and debentures are bought and sold
D. None of these
Answer» D. None of these
30.

Bull and bear operators are

A. Speculators
B. Investors
C. Gamblers
D. Regulators
Answer» A. Speculators
31.

Issue management means

A. instrument designing
B. underwriting support
C. Allotment of shares
D. all of these
Answer» D. all of these
32.

Stock exchange is a

A. Primary market
B. secondary market
C. Money market
D. none of these
Answer» B. secondary market
33.

Bull and bear operators are

A. speculators
B. investors
C. gamblers
D. none of these
Answer» A. speculators
34.

NSE nifty has

A. 20 stocks
B. 50stocks
C. 30 stocks
D. 25 stocks
Answer» B. 50stocks
35.

Name the first stock market index in India

A. dow jones
B. dollex 30
C. nifty
D. sensex
Answer» D. sensex
36.

sensex has base figure of---------

A. 100
B. 200
C. 500
D. 1000
Answer» A. 100
37.

Find the odd one out

A. IPO
B. FPO
C. right issue
D. bonus issue
Answer» D. bonus issue
38.

Find the odd one out

A. Bull operator
B. bear operator
C. market maker
D. Investor
Answer» D. Investor
39.

Financial assets include

A. Bank deposits
B. Investment in debentures/bonds
C. Investment in equity shares
D. all of these
Answer» D. all of these
40.

Mutual funds invest in

A. Stocks only
B. Bonds only
C. Stock and bonds
D. Stock, bonds and cash instruments
Answer» D. Stock, bonds and cash instruments
41.

Which of the following is not a money market security?

A. Treasury bills
B. National savings certificate
C. Certificate of deposit
D. Commercial paper
Answer» B. National savings certificate
42.

The Sensex has

A. 25 stocks
B. 30 stocks
C. 50 stocks
D. 20 stocks
Answer» B. 30 stocks
43.

Speculator is a person

A. Who evaluates the performance of the company
B. Who uses his own funds only
C. Who is willing to take moderate risk only
D. Who considers hearsays, rumours and market behaviour
Answer» D. Who considers hearsays, rumours and market behaviour
44.

NSE Nifty has

A. 20 stocks
B. 50 stocks
C. 30 stocks
D. 25 stocks
Answer» B. 50 stocks
45.

Name the institution which introduced mutual funds in India.

A. LIC
B. RBI
C. UTI
D. SBI
Answer» C. UTI
46.

The NSE – Nifty’s base period is

A. 1992
B. 1995
C. 1993
D. 1994
Answer» B. 1995
47.

Which of the following is an unsecured instrument?

A. Deposits with NBFCs
B. Postal deposit receipt
C. Provident fund deposit receipt
D. None of these
Answer» A. Deposits with NBFCs
48.

Which of the following is not a component of capital market?

A. long term loan market
B. industrial securities market
C. Short term loan market
D. government securities market
Answer» C. Short term loan market
49.

The market regulator of Indian capital market is?

A. DFHI
B. RBI
C. CCI
D. SEBI
Answer» D. SEBI
50.

The depository set up by Bombay stock exchange is

A. NSDL
B. CDSL
C. SHCIL
D. CCIL
Answer» B. CDSL

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