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330+ Investment Management Solved MCQs

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

1.

To frame the investment policy the investor should have

A. knowledge about the company
B. investable funds
C. knowledge about the investment alternatives
D. knowledge about the markets with funds
Answer» D. knowledge about the markets with funds
2.

The stock is

A. small units of equal value called shares
B. knowledge about the markets with funds
C. express in terms of number of shares
D. fully paid up and partly paid up shares
Answer» D. fully paid up and partly paid up shares
3.

Equityshare holders rights are listed below .one of the rights is incorrect

A. right to have claims in the case of winding up of the company
B. right to vote at the general body meeting of the company
C. right to share profits in the form of dividends
D. right to receive a copy of the statutory report
Answer» C. right to share profits in the form of dividends
4.

In a limited company

A. the share holders have to divided the debt of the company and pay
B. the share holders are not liable to pay the debt
C. the share holders have to pay the debt to the extent of their shares in the capital
D. common stock and preference shareholders have to pay the debt
Answer» C. the share holders have to pay the debt to the extent of their shares in the capital
5.

In case of nonvoting shares

A. the rights of voting stocks and nonvoting stocks are similar
B. rights and bonus issues for nonvoting shares can be issued in the form of voting shares
C. the nonvoting shares would become voting shares after a particular period of time
D. nonvoting shares carry higher dividends instead of voting rights
Answer» D. nonvoting shares carry higher dividends instead of voting rights
6.

Zero coupon bonds has its origin in

A. u.s security market
B. wall street
C. japans security market
D. dalal street
Answer» A. u.s security market
7.

Capital index bonds are linked with

A. bse sensex
B. nse nifty
C. consumer price index
D. bse-100
Answer» D. bse-100
8.

The negotiable financial investment is different from the non negotiable financial investment in terms of

A. maturity period
B. interest rate
C. transferability
D. face value
Answer» C. transferability
9.

investments made on a house property is a

A. financial investment
B. economic investment
C. non negotiable financial investments
D. non financial investments
Answer» D. non financial investments
10.

Which one of the following is not a money market security

A. treasury bills
B. national saving certificate
C. certificate of deposits
D. commercial paper
Answer» B. national saving certificate
11.

Commercial paper are

A. unsecured promissory notes
B. secured promissory note
C. sold at premium
D. issued for a period of 1 to 2 years
Answer» A. unsecured promissory notes
12.

The present interest rate of PPF is

A. 10%
B. 8.5%
C. 8.7%
D. 8%
Answer» C. 8.7%
13.

.This particular schemes helps in deferring the tax payment

A. public provident fund
B. national saving certificate
C. national saving scheme
D. life insurance scheme
Answer» B. national saving certificate
14.

SEBI has made mandatory for the companies to disclose

A. the yearly annual report
B. monthly report and annual report
C. quarterly and annual reporte
D. monthly review and annual report
Answer» C. quarterly and annual reporte
15.

The minimum number of shares to be applied for is

A. 100
B. 200
C. 300
D. 500
Answer» B. 200
16.

“Sell reliance petro shares at Rs.60”.this order is a

A. best arte order
B. limit order
C. discretionary order
D. stop loss order
Answer» B. limit order
17.

The settlement cycle in BSE and NSE are

A. 10 days
B. 8 days
C. 7 days
D. 15 days
Answer» C. 7 days
18.

The rolling settlement period introduced in the stock exchange is

A. t+5
B. t+7
C. t+2
D. t+15
Answer» B. t+7
19.

Mumbai stock exchange was recognized on a permanent basis in

A. 1956
B. 1957
C. 1950
D. 1958
Answer» B. 1957
20.

The VASAT which connects the main central computer means

A. videshsanchar automated trading
B. videshsanchar aperture terminal
C. very special aperture terminal
D. very small aperture terminal
Answer» D. very small aperture terminal
21.

Clearing and settlement operations of the NSE is carried out by

A. national security depository ltd
B. national security clearing cooperation
C. state bank of india
D. by the exchange itself
Answer» B. national security clearing cooperation
22.

Inter connected stock exchange is to interlink

A. the bse ,nse ,otcei
B. all the stock exchanges
C. fifteen regional stock exchanges
D. fourteen regional stock exchanges
Answer» C. fifteen regional stock exchanges
23.

Over the counter exchange of India was started after the role model of

A. nasaq
B. jasaq
C. nasaq & jasaq
D. nse
Answer» C. nasaq & jasaq
24.

To be listed on the OTCEI, the minimum capital requirement for a company is

A. rs.5 crores
B. rs.3crores
C. rs.2 crores
D. rs.1 crores
Answer» B. rs.3crores
25.

According to SEBI guidelines

A. all the new issues should be in depository mode
B. all the a group shares should be traded through nsdl
C. all the b group shares should be traded trough nsdl
D. all the above are true
Answer» A. all the new issues should be in depository mode
26.

The sensex has

A. 25 stocks
B. 30 stocks
C. 33 stocks
D. 35 stocks
Answer» B. 30 stocks
27.

The NSE –nifty base period is

A. 1992
B. 1993
C. 1994
D. 1995
Answer» D. 1995
28.

The promoters contribution should not be less than

A. 25 % of the issue size
B. 20 % of the issue size
C. 30 % of the issue size
D. 33 % of the issue size
Answer» B. 20 % of the issue size
29.

These are instruments, which give a fixed rate of interest for a fixed period of maturity.

A. debts
B. equities
C. mutual fund
D. virtual office
Answer» A. debts
30.

This pools money from investors and invest in different securities information technology.

A. debts
B. equities
C. mutual funds
D. virtual office
Answer» C. mutual funds
31.

An investor becomes the owner of a company to the extent of the capital invested by

A. debts
B. equities
C. mutual funds
D. none of the above
Answer» B. equities
32.

The variability in a security’s returns resulting from fluctuations in the aggregate market is known as;

A. market risk
B. interest rate risk
C. purchasing power risk
D. regulation risk
Answer» A. market risk
33.

The variability in a security’s return resulting from changes in the level of interest rates is referred to as;

A. market risk
B. interest rate risk
C. purchasing power risk
D. regulation risk
Answer» B. interest rate risk
34.

Inflation risk is also known as.

A. market risk
B. interest rate risk
C. purchasing power
D. regulation risk
Answer» C. purchasing power
35.

This is the stock valuation method that uses financial data to predict price movements.

A. technical analysis
B. company analysis
C. fundamental analysis
D. none of the above
Answer» C. fundamental analysis
36.

These are the market risks that cannot be diversified.

A. systematic risk
B. unsystematic risk
C. counter party risk
D. none of the above
Answer» A. systematic risk
37.

Technical analysis gained popularity from the writings of.

A. adam smith
B. markowitz
C. charles dow
D. none of the above
Answer» C. charles dow
38.

Modern portfolio theory was introduced by,

A. adam smith
B. markowitz
C. charles dow
D. none of these
Answer» B. markowitz
39.

This is a market for short-term funds.

A. money market
B. capital market
C. commodity market
D. none of these
Answer» A. money market
40.

This is a short term indigenous bill of exchange

A. trade bills
B. hundis
C. treasury bills
D. none of the above
Answer» B. hundis
41.

Call money is mainly used by the banks to meet their.

A. temporary requirement of cash
B. long term requirement of cash markowitz
C. medium term requirement of cash charles dow
D. none of above
Answer» A. temporary requirement of cash
42.

These are short-term securities issued by the RBI on behalf of the government of India.

A. trade bill
B. hundis
C. treasury bills
D. none of these
Answer» C. treasury bills
43.

The primary objective of this instrument is to provide some degree of flexibility in the credit portfolio of banks

A. treasury bills
B. interbank participation certificate
C. certificate of deposits
D. all of the above
Answer» B. interbank participation certificate
44.

This is a market for medium and long-term funds

A. money market
B. capital market
C. commodity market
D. none of the above
Answer» B. capital market
45.

This refers to the market for government and semi-government securities backed by the RBI

A. money market
B. capital market
C. gilt edged market
D. none of the above
Answer» C. gilt edged market
46.

These shares have a preferential right to the payment of dividend and to the return of capital at the time of winding up of the company.

A. equity share
B. preference share
C. bonus share
D. none of the above
Answer» B. preference share
47.

This is a document which either creates a debt or acknowledges it. These are short-term securities issued by the RBI on behalf of the Government of India.

A. trade bills
B. debentures
C. treasury bill
D. none of the above
Answer» C. treasury bill
48.

These bonds are the bonds issued at a discount and repaid at a face value.

A. convertible bond
B. zero coupon bond
C. deep discount bond
D. all of the above
Answer» B. zero coupon bond
49.

This fund is one that is available for subscription all through the year.

A. open end fund
B. closed end fund
C. growth fund
D. income fund
Answer» A. open end fund
50.

This fund is open for subscription only during a specified period.

A. open end fund
B. closed end fund
C. growth fund
D. income fund
Answer» B. closed end fund

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