McqMate
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) .
| 51. |
These funds are stock funds that invest in stocks with the potential for long term capital appreciation. |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» C. growth fund | |
| 52. |
The aim of this fund is to provide regular and steady income to investors |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» D. income fund | |
| 53. |
Stock mutual funds also sometimes called |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | equity fund |
| Answer» D. equity fund | |
| 54. |
Each contract is custom designed, and hence is unique in terms of contract size, expiration date and asset type and quality. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» A. forward contract | |
| 55. |
These contracts are standardized and hence traded in stock exchanges. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 56. |
The credit risk of future is -------- than that of forwards: |
| A. | lower |
| B. | higher |
| C. | average |
| D. | none of the above |
| Answer» A. lower | |
| 57. |
The buyer or holder of the option purchases the right from the seller for a consideration called; |
| A. | remuneration |
| B. | premium |
| C. | discount |
| D. | none of these |
| Answer» B. premium | |
| 58. |
This option gives the holder or buyer , the right to buy specified quantity of the underlying asset at a specified price on or before a specified time. |
| A. | call option |
| B. | put option |
| C. | main option |
| D. | none of the above |
| Answer» A. call option | |
| 59. |
This option gives the holder or buyer, the right to sell specified quantity of the underlying asset at a specified price on or before a specified time. |
| A. | call option |
| B. | put option |
| C. | main option |
| D. | none of the above |
| Answer» B. put option | |
| 60. |
These are instruments, which give a fixed rate of interest for a fixed period of maturity. |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» A. debts | |
| 61. |
This pools money from investors and invest in different securities |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» C. mutual funds | |
| 62. |
An investor becomes the owner of a company to the extent of the capital invested by him |
| A. | debts |
| B. | equities |
| C. | mutual fund |
| D. | virtual office |
| Answer» B. equities | |
| 63. |
Which of the following I not an Indian index |
| A. | sensex |
| B. | nasdaq |
| C. | nifty |
| D. | none of the above |
| Answer» B. nasdaq | |
| 64. |
Find the odd one from the following |
| A. | nasdaq |
| B. | dow jones |
| C. | nyse |
| D. | nifty |
| Answer» D. nifty | |
| 65. |
Holders of fixed income securities are…… of the issuer |
| A. | debtor |
| B. | creditor |
| C. | owner |
| D. | supplier |
| Answer» B. creditor | |
| 66. |
Treasury bills are actually a class of; |
| A. | securities of companies |
| B. | central government securities |
| C. | equities |
| D. | none of the above |
| Answer» B. central government securities | |
| 67. |
These bonds are issued at a discount and repaid at a face value. |
| A. | zero coupon bond |
| B. | debentures |
| C. | equity share |
| D. | none of the above |
| Answer» A. zero coupon bond | |
| 68. |
This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue |
| A. | current yield |
| B. | coupon rate |
| C. | market rate |
| D. | none of the above |
| Answer» B. coupon rate | |
| 69. |
The return on the instrument is held till its maturity is known as |
| A. | current yield |
| B. | coupon rate |
| C. | ytm |
| D. | none of the above |
| Answer» C. ytm | |
| 70. |
Fundamental analysis is a …………….method that uses financial &economic analysis to predict the movement of stock price. |
| A. | sale valuation method |
| B. | stock valuation method |
| C. | purchase valuation method |
| D. | all of the above |
| Answer» B. stock valuation method | |
| 71. |
Industrial growth is a type of ……………. |
| A. | economic analysis |
| B. | industrial analysis |
| C. | company analysis |
| D. | none of these |
| Answer» A. economic analysis | |
| 72. |
.Which of the following is not a stage of business cycle |
| A. | recovery |
| B. | depression |
| C. | boom |
| D. | inflation |
| Answer» D. inflation | |
| 73. |
……………….is generally described as homogenous of companies |
| A. | business |
| B. | profession |
| C. | industry |
| D. | group of company |
| Answer» C. industry | |
| 74. |
. EPS = ……………. / outstanding share |
| A. | gross profit |
| B. | net-earning |
| C. | net loss |
| D. | capital employed |
| Answer» B. net-earning | |
| 75. |
…………… = stock price/ EPS |
| A. | price to earnings ratio |
| B. | price to sale ratio |
| C. | eps |
| D. | none of these |
| Answer» A. price to earnings ratio | |
| 76. |
Book value = asset + …………….. |
| A. | capital |
| B. | liability |
| C. | current asset |
| D. | current liability |
| Answer» B. liability | |
| 77. |
ROE stands for ………………. |
| A. | rate of equity |
| B. | rate of earning |
| C. | . return on equity |
| D. | none of these |
| Answer» C. . return on equity | |
| 78. |
Defective practice is one of the ……………fundamental of analysis |
| A. | tool |
| B. | criticism |
| C. | advantages |
| D. | none of these |
| Answer» B. criticism | |
| 79. |
. ROE is calculated by dividing……….by book value |
| A. | net income |
| B. | gross income |
| C. | cost |
| D. | all of these |
| Answer» A. net income | |
| 80. |
Which of the following is not a tool of fundamental analysis |
| A. | price to sale ratio |
| B. | price to earnings ratio |
| C. | price to purchase ratio |
| D. | none of these |
| Answer» C. price to purchase ratio | |
| 81. |
This is stock valuation method that uses financial data to predict price movement |
| A. | company analysis |
| B. | fundamental analysis |
| C. | technical analysis |
| D. | none of these |
| Answer» B. fundamental analysis | |
| 82. |
Funtamntal analysis is ……………. |
| A. | time consuming |
| B. | time saving |
| C. | expensive |
| D. | none of these |
| Answer» A. time consuming | |
| 83. |
The underwriting commission in the case of debentures cannot exceed |
| A. | 1 percentage |
| B. | 3.5 percentage |
| C. | 5 percentage |
| D. | 2.5 percentage |
| Answer» D. 2.5 percentage | |
| 84. |
The cheapest method of selling new securities is |
| A. | sale through clearing houses |
| B. | direct sales to public through prospects |
| C. | right issue |
| D. | stock exchange placing |
| Answer» D. stock exchange placing | |
| 85. |
The first exchange was to set up in India was in |
| A. | delhi |
| B. | chennai |
| C. | mumbai |
| D. | kolkata |
| Answer» C. mumbai | |
| 86. |
A ---------is not a speculator in the stock exchange |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | broker |
| Answer» D. broker | |
| 87. |
A - ---- expects a fall in the prices of securities in the near future |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | broker |
| Answer» B. bear | |
| 88. |
The most important function of the new issues market is to provide |
| A. | direction to the flow of capital |
| B. | liquidity to the securities |
| C. | facilities for conversion of savings into investments |
| D. | an opportunity for new entrepreneurs to succeed |
| Answer» C. facilities for conversion of savings into investments | |
| 89. |
The first exchange was set up in the in the year |
| A. | 1847 |
| B. | 1875 |
| C. | 1905 |
| D. | 1923 |
| Answer» B. 1875 | |
| 90. |
Which of the following represents components of the organized sector of the capital market? |
| A. | stock exchange |
| B. | commercial banks |
| C. | investors |
| D. | all the above |
| Answer» D. all the above | |
| 91. |
The new issue market pertains to |
| A. | second hand securities |
| B. | new securities |
| C. | new as well as second hand securities |
| D. | only trail launches into the market |
| Answer» B. new securities | |
| 92. |
Trading securities beyond the official trading hours of the stock exchange is called |
| A. | hammering |
| B. | margin trading |
| C. | short trading |
| D. | kerb trading |
| Answer» D. kerb trading | |
| 93. |
The gilt-edged market refers to the market for |
| A. | govt and semi govt securities |
| B. | industrial securities |
| C. | shares and debentures |
| D. | public limited company securities |
| Answer» A. govt and semi govt securities | |
| 94. |
First mutual fund of India is |
| A. | reserve bank of india |
| B. | state bank of india |
| C. | unit trust of india |
| D. | government of india |
| Answer» C. unit trust of india | |
| 95. |
Mutual fund schemes can be operated by |
| A. | assets management company |
| B. | public sector banks |
| C. | financial institutions |
| D. | any of these |
| Answer» A. assets management company | |
| 96. |
Regulation authority of stock exchange is |
| A. | indian companies act |
| B. | stock exchange act |
| C. | securities contact(regulation) act |
| D. | all of the above |
| Answer» C. securities contact(regulation) act | |
| 97. |
When a bear find it difficult to meet his commitments immediately, he is called a |
| A. | stag |
| B. | lame duck |
| C. | lame bear |
| D. | lame bull |
| Answer» B. lame duck | |
| 98. |
The securities contract (regulation )act came into force with effect from |
| A. | 1949 |
| B. | 1954 |
| C. | 1956 |
| D. | 1957 |
| Answer» D. 1957 | |
| 99. |
Following is the largest mutual fund business in India |
| A. | unit trust of india |
| B. | state bank of india |
| C. | canara bank |
| D. | tata |
| Answer» A. unit trust of india | |
| 100. |
What denotes the acquisition of a right to purchase securities? |
| A. | put option |
| B. | call option |
| C. | double option |
| D. | none of the above |
| Answer» B. call option | |
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