McqMate
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 |
51. |
Which of the following was set up mainly for providing finance to private sector? |
A. | IDBI |
B. | IFCI |
C. | ICICI |
D. | all of these |
Answer» C. ICICI |
52. |
NABARD was set up in the year |
A. | 1991 |
B. | 1881 |
C. | 1982 |
D. | 1972 |
Answer» C. 1982 |
53. |
An example of a derivative security is ______. |
A. | a common share of General Motors |
B. | a call option on Mobil stock |
C. | a commodity futures contract |
D. | B and C |
Answer» D. B and C |
54. |
Interest rate in the money market funds are |
A. | Determined by the RBI |
B. | determined by the SBI |
C. | Determined by the market forces |
D. | none of these |
Answer» C. Determined by the market forces |
55. |
Money market include |
A. | Only organized players |
B. | only unorganized players |
C. | both organized and unorganized players |
Answer» C. both organized and unorganized players |
56. |
Income – Expenses = -------------. |
A. | Savings |
B. | investment |
C. | money |
D. | none of these |
Answer» A. Savings |
57. |
------------- is postponement of current consumption |
A. | money |
B. | savings |
C. | investments |
D. | all of these |
Answer» B. savings |
58. |
-------------.means a number of securities/assets put together. |
A. | Investment |
B. | portfolio |
C. | savings |
D. | none of these |
Answer» B. portfolio |
59. |
SEC is a regulator of -------------. a) India b) Britain c) USA d) none of these 65. Fixed deposits mobilized by NBFCs are regulated by -------------. |
A. | SEBI |
B. | RBI |
C. | IRDA |
D. | Finance Ministry |
Answer» C. IRDA |
60. |
Debenture trading is ------------- in India. |
A. | popular |
B. | not popular |
C. | prohibited |
D. | none of these |
Answer» B. not popular |
61. |
Debt instruments which have a maturity of less than one year called -------------. |
A. | Secondary market instruments |
B. | money market instruments |
C. | capital market instruments |
D. | none of these |
Answer» B. money market instruments |
62. |
------------- is a vehicle to get entry into the asset classes. |
A. | Capital market |
B. | Mutual fund |
C. | Debt market |
D. | all of these |
Answer» B. Mutual fund |
63. |
-------------- creates high risk and is illegal. |
A. | Speculation |
B. | Gambling |
C. | Investment |
D. | all of these |
Answer» B. Gambling |
64. |
The pivotal position in the Indian money market is adorned by |
A. | Commercial bank |
B. | non banking financial companies |
C. | RBI |
D. | none of these |
Answer» C. RBI |
65. |
The rate at which RBI lends short term funds to bank is |
A. | Reverse repo rate |
B. | repo rate |
C. | interest rate |
D. | none of these |
Answer» B. repo rate |
66. |
The proportion of deposits that banks have to keep with RBI is |
A. | CRR |
B. | SLR |
C. | PLR |
D. | none of these |
Answer» A. CRR |
67. |
for issuing commercial papers |
A. | Prior approval of RBI is not required |
B. | Prior approval of RBI is required |
C. | Prior approval of SEBI is required |
D. | None of these |
Answer» A. Prior approval of RBI is not required |
68. |
For issuing commercial papers, |
A. | Credit rating is a must |
B. | credit rating is optional |
C. | underwriting is a must |
D. | None of these |
Answer» A. Credit rating is a must |
69. |
Money market instruments have a maturity of |
A. | Less than one year |
B. | Less than six months |
C. | More than one year |
D. | None of these |
Answer» A. Less than one year |
70. |
Debt market instruments have a maturity of |
A. | Less than one year |
B. | Less than six months |
C. | More than one year |
D. | None of these |
Answer» C. More than one year |
71. |
Irredeemable bond is also known as |
A. | Fully convertible bond |
B. | Perpetual bond |
C. | Partially convertible bond |
D. | None of these |
Answer» B. Perpetual bond |
72. |
Floating rate bonds carry |
A. | Fixed rate of interest |
B. | Varying rate of interest |
C. | Zero rate of interest |
D. | None of these |
Answer» B. Varying rate of interest |
73. |
Zero coupon bonds mean |
A. | Fixed rate of interest |
B. | Zero rate of interest |
C. | Higher rate of interest |
D. | None of these |
Answer» B. Zero rate of interest |
74. |
Callable bonds mean |
A. | Subscriber has the right to demand money before the time |
B. | Issue has the right to redeem before the time |
C. | Investor can request for redemption any time |
D. | None of these |
Answer» B. Issue has the right to redeem before the time |
75. |
If the credit quality of the issuer deteriorates, market expects |
A. | Lesser rate of interest |
B. | Higher rate of interest |
C. | Zero rate of interest |
D. | None of these |
Answer» B. Higher rate of interest |
76. |
When the risk perception is high, investor prefers to get the bond at |
A. | Higher rate |
B. | Reduced rate |
C. | Par rate |
D. | None of these |
Answer» B. Reduced rate |
77. |
If the maturity period of bond is more, investor prefers |
A. | Lesser return |
B. | Higher return |
C. | Zero return |
D. | None of these |
Answer» B. Higher return |
78. |
Par value means |
A. | Value of the instrument traded in the market |
B. | Value of the instrument at the time of issue |
C. | Intrinsic value of the instrument |
D. | None of these |
Answer» B. Value of the instrument at the time of issue |
79. |
Risk that a borrower may not pay interest/principal timely is |
A. | Call risk |
B. | Liquidity risk |
C. | Default risk |
D. | None of these |
Answer» C. Default risk |
80. |
Foreign currency appreciation will result in rupee receipts |
A. | Lower |
B. | Higher |
C. | Unchanged |
D. | None of these |
Answer» B. Higher |
81. |
CRISIL was established in |
A. | 1987 |
B. | 1991 |
C. | 1994 |
D. | None of these |
Answer» A. 1987 |
82. |
BBB rating indicates |
A. | Adequate safety |
B. | Reasonable safety |
C. | Moderate safety |
D. | None of these |
Answer» C. Moderate safety |
83. |
The tenure of commercial paper instrument is |
A. | Minimum one year |
B. | minimum five yare |
C. | Minimum 15 days and maximum one year |
D. | none of these |
Answer» C. Minimum 15 days and maximum one year |
84. |
Certificate of deposits are issued by |
A. | RBI |
B. | commercial banks |
C. | SBI only |
D. | none of these |
Answer» B. commercial banks |
85. |
Inter bank participation certificate is a |
A. | money market instrument |
B. | very popular instrument |
C. | Instrument used by companies |
D. | None of these |
Answer» A. money market instrument |
86. |
-----is a market where money is brought and sold |
A. | Money market |
B. | capital market |
C. | share market |
D. | none of these |
Answer» A. Money market |
87. |
Interest rate on money market funds are ------ |
A. | Individual determined |
B. | market determined |
C. | RBI determined |
D. | all of these |
Answer» B. market determined |
88. |
------occupies the pivotal position in the Indian money market |
A. | RBI |
B. | SEBI |
C. | SBI |
D. | none of these |
Answer» A. RBI |
89. |
---control s the money supply in a country |
A. | RBI or central bank |
B. | SEBI |
C. | government |
D. | all of these |
Answer» A. RBI or central bank |
90. |
----is the rate banks receive for depositing funds with the central bank |
A. | reverse repo rate |
B. | repo rate |
C. | interest rate |
D. | all of these |
Answer» A. reverse repo rate |
91. |
----------policy is taken by RBI |
A. | Monetary policy |
B. | fiscal policy |
C. | both of them |
D. | all of these |
Answer» A. Monetary policy |
92. |
Rate at which RBI lends to bank is |
A. | Repo rate |
B. | reverse repo |
C. | interest arte |
D. | bank rate |
Answer» A. Repo rate |
93. |
---------are unsecured promissory note issued by a well rated corporate |
A. | commercial paper |
B. | certificate of deposit |
C. | commercial bill |
D. | all of these |
Answer» A. commercial paper |
94. |
----is a must for issuing commercial paper |
A. | good credit rating |
B. | good bank balance |
C. | goodwill |
D. | all of these |
Answer» A. good credit rating |
95. |
which is not a constituent of money market |
A. | Call money market |
B. | discount houses |
C. | share market |
D. | acceptance market |
Answer» C. share market |
96. |
Money market provides fund for |
A. | More than one year |
B. | for a period of up to one year |
C. | one week to about six weeks |
D. | none of these |
Answer» B. for a period of up to one year |
97. |
Which is not a constituent of capital market? |
A. | public finance institution |
B. | stock exchange |
C. | commercial bank |
D. | unit trust of India |
Answer» C. commercial bank |
98. |
---------- is the other name for Zero Coupon bonds. |
A. | bond , |
B. | debenture , |
C. | Deep discount bonds |
D. | coupon bond |
Answer» C. Deep discount bonds |
99. |
Holders of fixed income securities are ---------- of the issuer. |
A. | debtors |
B. | Creditor |
C. | issuer |
D. | banker |
Answer» B. Creditor |
100. |
Bonds which are issued at a discount and repaid at a face value are called ----------. |
A. | bond , |
B. | debenture , |
C. | Deep discount bonds |
D. | Zero coupon bonds |
Answer» D. Zero coupon bonds |
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