

McqMate
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) .
101. |
Interest rate that every bond/debenture carries on its face value and is fixed at the time of issue is called----------. |
A. | bank rate , |
B. | repo rate |
C. | Coupon rate |
D. | all of these |
Answer» C. Coupon rate |
102. |
G. securities are issued by the ---------- on the behalf of the Government of India. |
A. | central government |
B. | RBI |
C. | state government |
D. | SEBI |
Answer» B. RBI |
103. |
Gilt securities are issued by ---------- . |
A. | central government |
B. | RBI |
C. | state government |
D. | SEBI |
Answer» B. RBI |
104. |
---------- instruments are those instruments, which have a maturity period of less than one year . |
A. | capital market |
B. | Money market |
C. | local market |
D. | all of these |
Answer» B. Money market |
105. |
Dow theory is associated with |
A. | Market analysis |
B. | Technical analysis |
C. | Fundamental analysis |
D. | all of these |
Answer» B. Technical analysis |
106. |
Estimating the return and risk for individual securities is known as |
A. | Market analysis |
B. | Securities analysis |
C. | Environment analysis |
D. | None of these |
Answer» B. Securities analysis |
107. |
Financial literacy / awareness programmes are conducted by |
A. | SEBI |
B. | Brokers |
C. | Stock exchange |
D. | All of these |
Answer» D. All of these |
108. |
Value investing means, buying the stock |
A. | after the growth cycle begins |
B. | before the growth cycle begins |
C. | after the results are out |
D. | none of these |
Answer» B. before the growth cycle begins |
109. |
Value investing is investing in |
A. | Companies with low P / E |
B. | Companies with low P / BV |
C. | Companies with high dividend yield |
D. | All of above |
Answer» D. All of above |
110. |
In fundamental analysis |
A. | Buy the security if IV>MP |
B. | Buy the security if IV=MP |
C. | Buy the security if IV<MP |
D. | none of these |
Answer» A. Buy the security if IV>MP |
111. |
Opening up of the Indian economy means |
A. | Indian markets and global markets are linked |
B. | Indian markets and global markets separated |
C. | Indian markets and global markets are like watertight compartments |
D. | None of these |
Answer» A. Indian markets and global markets are linked |
112. |
Boom period means |
A. | High demand for products and services |
B. | Demand for products steady |
C. | Demand for services okay |
D. | None of these |
Answer» A. High demand for products and services |
113. |
Depression means |
A. | Presence of hyper inflation |
B. | Interest rate shooting up |
C. | Companies reducing production |
D. | all of these |
Answer» D. all of these |
114. |
Repo rate means |
A. | rate at which Govt. Borrows money |
B. | rate at which RBI lends to banks |
C. | rate at which RBI borrows money |
D. | none of these |
Answer» B. rate at which RBI lends to banks |
115. |
----------- combines economic, industry and company analysis to forecast future stock price. |
A. | Technical analysis |
B. | Random walk theory |
C. | Fundamental analysis |
D. | None of these |
Answer» C. Fundamental analysis |
116. |
Stock valuation method that uses financial data to predict price movements. |
A. | Fundamental analysis |
B. | Technical analysis |
C. | Company analysis |
D. | None of these |
Answer» A. Fundamental analysis |
117. |
An example for a sunrise industry is |
A. | IT business |
B. | Animation industry |
C. | FMCG (Fast moving consumer goods) |
D. | None of these |
Answer» B. Animation industry |
118. |
Growth industry means |
A. | growth rate of industry exceeds the average growth of economy |
B. | growth rate of industry equal the growth of the economy |
C. | growth rate of industry less than the growth of the economy |
D. | None of these |
Answer» A. growth rate of industry exceeds the average growth of economy |
119. |
Which of the following is a defensive industry? |
A. | Steel industry |
B. | Pharmaceuticals |
C. | Cement industry |
D. | None of these |
Answer» B. Pharmaceuticals |
120. |
Technical analysis study |
A. | Financial figures of the companies |
B. | Behaviour of stock prices |
C. | Data about the industry |
D. | None of these |
Answer» B. Behaviour of stock prices |
121. |
When rupee in the ventilator, dollor in the escalator, |
A. | IT companies will shine |
B. | FMCG companies will shine |
C. | Petroleum marketing companies will shine |
D. | None of these |
Answer» A. IT companies will shine |
122. |
Level that the technical analyst believes that a stock price will not fall below. |
A. | Support level |
B. | Resistance level |
C. | Maximum level |
D. | None of these |
Answer» A. Support level |
123. |
Level that the technical analyst believes a stock price will not exceed. |
A. | Support level |
B. | Resistance level |
C. | Maximum level |
D. | None of these |
Answer» B. Resistance level |
124. |
White candlestick represents |
A. | Bullish trend |
B. | Bearish trend |
C. | Neutral trend |
D. | None of these |
Answer» A. Bullish trend |
125. |
Black candlestick represents |
A. | Bullish trend |
B. | Bearish trend |
C. | Neutral trend |
D. | None of these |
Answer» B. Bearish trend |
126. |
Flat trend in technical analysis means |
A. | prices move upwards |
B. | prices move downwards |
C. | prices move within a narrow range |
D. | none of these |
Answer» C. prices move within a narrow range |
127. |
GDP indicates |
A. | Inflation or deflation |
B. | the status of the economy |
C. | the condition of the stock market |
D. | none of these |
Answer» B. the status of the economy |
128. |
The fall in the interest rate is good to the stock market because |
A. | money may flow from bond market to stock market |
B. | corporate houses can borrow at easy terms |
C. | investors can invest with borrowed funds |
D. | all of these |
Answer» D. all of these |
129. |
The price earnings ratio of a stock reflects |
A. | the growth of the company |
B. | the market mood for the company’s stock |
C. | the earnings retained and invested in the company. |
D. | none of these |
Answer» B. the market mood for the company’s stock |
130. |
This fund is one that is available for subscription all through the year. |
A. | Open ended fund |
B. | closed ended fund |
C. | growth fund |
D. | income fund |
Answer» A. Open ended fund |
131. |
This fund is open for subscription only during a specified period |
A. | Open ended fund |
B. | closed ended fund |
C. | growth fund |
D. | income fund |
Answer» B. closed ended fund |
132. |
These funds are stocks funds that invest in stocks with the potential for long term capital appreciation |
A. | Open ended fund |
B. | closed ended fund |
C. | growth fund |
D. | income fund |
Answer» C. growth fund |
133. |
The aim of this fund is to provide regular and steady income to investor. |
A. | Open ended fund |
B. | closed ended fund |
C. | growth fund |
D. | income fund |
Answer» D. income fund |
134. |
Stock mutual funds also sometimes called |
A. | Open ended fund |
B. | closed ended fund |
C. | growth fund |
D. | equity fund |
Answer» D. equity fund |
135. |
Mutual funds are |
A. | Open ended fund |
B. | closed ended fund |
C. | both a and b |
D. | none of the above |
Answer» C. both a and b |
136. |
uti-64 is a |
A. | Open ended fund |
B. | closed ended fund |
C. | both a and b |
D. | none of the above |
Answer» A. Open ended fund |
137. |
Credit rating is mandatory |
A. | Equity shares |
B. | preference shares |
C. | debentures |
D. | all of the above |
Answer» C. debentures |
138. |
Systematic risk is also known as |
A. | Unavoidable risk |
B. | unique risk |
C. | avoidable risk |
D. | financial risk |
Answer» A. Unavoidable risk |
139. |
Unsystematic risk is also known as |
A. | Unavoidable risk |
B. | unique risk |
C. | avoidable risk |
D. | both b and c |
Answer» D. both b and c |
140. |
Investor can build a risk free portfolio, when two assets have ---------correlation |
A. | Perfect positive |
B. | zero |
C. | perfect negative |
D. | partial correlation |
Answer» C. perfect negative |
141. |
A set of securities held by an individual investor is called -------- |
A. | Portfolio |
B. | group |
C. | collection |
D. | bundle |
Answer» A. Portfolio |
142. |
Which of the following helps in reduction of risk in portfolio management? |
A. | Derivation |
B. | dispersion |
C. | distribution |
D. | diversification |
Answer» D. diversification |
143. |
The risk in portfolio is measured through the |
A. | Weighted average of standard deviations |
B. | Weighted average of variance |
C. | Variance co-variance matrix |
D. | correlation |
Answer» C. Variance co-variance matrix |
144. |
If an investment assures a fixed return in the future, then the standard deviation of return will be |
A. | 0 |
B. | 1 |
C. | greater than one |
D. | less than one |
Answer» A. 0 |
145. |
The securities contact act was passed in |
A. | 1949 |
B. | 1956 |
C. | 1954 |
D. | 1962 |
Answer» B. 1956 |
146. |
In secondary market |
A. | Second hand securities are traded |
B. | new securities are traded |
C. | Right issues are traded |
D. | none of the above |
Answer» A. Second hand securities are traded |
147. |
The first stock exchange was set up in |
A. | Kolkata |
B. | Mumbai |
C. | Chennai |
D. | Delhi |
Answer» B. Mumbai |
148. |
Over the counter market is for |
A. | selling the share through banker |
B. | buying /selling of unlisted securities |
C. | Buying /selling of listed securities |
D. | selling the securities to the financial |
Answer» B. buying /selling of unlisted securities |
149. |
Over the counter market is a part of |
A. | Primary market |
B. | secondary market |
C. | money market |
D. | none of the above |
Answer» B. secondary market |
150. |
Which speculator expect fall in prices in future |
A. | bull |
B. | bear |
C. | stag |
D. | lame duck |
Answer» B. bear |
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