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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) .

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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