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) .
| 101. |
Who does “blue chip “denotes |
| A. | shares likely to yield agreed return |
| B. | shares listed in the stock exchanges |
| C. | shares guaranteed by the government |
| D. | shares consistently yielding high returns |
| Answer» D. shares consistently yielding high returns | |
| 102. |
Financial derivatives are mainly used for |
| A. | speculative activity |
| B. | creating more risk |
| C. | hedging risk |
| D. | earning income |
| Answer» C. hedging risk | |
| 103. |
The instrument that are marked to the market are |
| A. | forward |
| B. | future |
| C. | swaps |
| D. | options |
| Answer» B. future | |
| 104. |
In an option contract, if the option can be exercised only at the time of maturity, it is called |
| A. | double option |
| B. | american option |
| C. | put option |
| D. | european option |
| Answer» D. european option | |
| 105. |
The predetermined price at which an underlying assets has to be bought or sold in an option contract is called |
| A. | option price |
| B. | exercise price |
| C. | spot price |
| D. | future price |
| Answer» B. exercise price | |
| 106. |
A combination of forwards by two counterparties with opposite but matching needs is called |
| A. | swap |
| B. | option |
| C. | forward |
| D. | future |
| Answer» A. swap | |
| 107. |
Mutual fund are very popular in |
| A. | u.s.a |
| B. | u.k |
| C. | japan |
| D. | india |
| Answer» A. u.s.a | |
| 108. |
The pattern of investment of a mutual fund is oriented fixed income yielding securities under |
| A. | growth fund scheme |
| B. | income fund scheme |
| C. | balanced fund scheme |
| D. | money market mutual fund scheme |
| Answer» B. income fund scheme | |
| 109. |
In India ,the company which actually deals with the corpus of the mutual fund is called |
| A. | sponsor company |
| B. | trustee company |
| C. | asset management company |
| D. | mutual fund company |
| Answer» C. asset management company | |
| 110. |
Find out the odd one |
| A. | commercial paper |
| B. | share certificate |
| C. | certificate of deposits |
| D. | treasury bills |
| Answer» B. share certificate | |
| 111. |
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 | |
| 112. |
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 | |
| 113. |
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 | |
| 114. |
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 | |
| 115. |
Stock mutual funds also sometimes called |
| A. | open ended fund |
| B. | closed ended fund |
| C. | growth fund |
| D. | equity fund |
| Answer» D. equity fund | |
| 116. |
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 | |
| 117. |
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 | |
| 118. |
Credit rating is mandatory |
| A. | equity shares |
| B. | preference shares |
| C. | debentures |
| D. | all of the above |
| Answer» C. debentures | |
| 119. |
Systematic risk is also known as |
| A. | unavoidable risk |
| B. | unique risk |
| C. | avoidable risk |
| D. | financial risk |
| Answer» A. unavoidable risk | |
| 120. |
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 | |
| 121. |
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 | |
| 122. |
A set of securities held by an individual investor is called -------- |
| A. | portfolio |
| B. | group |
| C. | collection |
| D. | bundle |
| Answer» A. portfolio | |
| 123. |
Which of the following helps in reduction of risk in portfolio management? |
| A. | derivation |
| B. | dispersion |
| C. | distribution |
| D. | diversification |
| Answer» D. diversification | |
| 124. |
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 | |
| 125. |
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 | |
| 126. |
The securities contact act was passed in |
| A. | 1949 |
| B. | 1956 |
| C. | 1954 |
| D. | 1962 |
| Answer» B. 1956 | |
| 127. |
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 | |
| 128. |
The first stock exchange was set up in |
| A. | kolkata |
| B. | mumbai |
| C. | madras |
| D. | delhi |
| Answer» B. mumbai | |
| 129. |
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 institutions |
| Answer» B. buying /selling of unlisted securities | |
| 130. |
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 | |
| 131. |
Which speculator expect fall in prices in future |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | lame duck |
| Answer» B. bear | |
| 132. |
Which speculator expects a rise in price in future? |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | lame duck |
| Answer» A. bull | |
| 133. |
When a right to purchase a security is given it is called |
| A. | put option |
| B. | call option |
| C. | put and call option |
| D. | none of the above |
| Answer» B. call option | |
| 134. |
OTCEI deals in |
| A. | money market |
| B. | industrial securities |
| C. | giving long term loans |
| D. | factoring services |
| Answer» B. industrial securities | |
| 135. |
The first stock exchange which was fully computerized was |
| A. | bse |
| B. | nse |
| C. | otcei |
| D. | dse |
| Answer» C. otcei | |
| 136. |
Interest rate risk is associated with |
| A. | inflation |
| B. | taxation |
| C. | business cycle |
| D. | bank rate |
| Answer» D. bank rate | |
| 137. |
Volatile stock has beta value |
| A. | greater than one |
| B. | equal to one |
| C. | less than one |
| D. | none of the above |
| Answer» A. greater than one | |
| 138. |
Total risk in a security usually measured by |
| A. | range |
| B. | standard deviation |
| C. | beta |
| D. | co efficient of variation |
| Answer» B. standard deviation | |
| 139. |
Systematic risk is measured with |
| A. | range |
| B. | standard deviation |
| C. | beta |
| D. | co efficient of variation |
| Answer» C. beta | |
| 140. |
The term beta is synonymous with |
| A. | systematic risk |
| B. | unsystematic risk |
| C. | portfolio risk |
| D. | all of the above |
| Answer» A. systematic risk | |
| 141. |
Which one of the following is a cash assets |
| A. | deposits created out of loans |
| B. | share |
| C. | bond |
| D. | post office certificate |
| Answer» A. deposits created out of loans | |
| 142. |
The component of capital market is |
| A. | treasury bill market |
| B. | government securities market |
| C. | commercial bill market |
| D. | a and b |
| Answer» B. government securities market | |
| 143. |
Goverenment bond is a |
| A. | short term security |
| B. | long term security |
| C. | medium term security |
| D. | either short term and long term security |
| Answer» B. long term security | |
| 144. |
The market for short term loans is known as |
| A. | call money market |
| B. | treasury bill market |
| C. | money market |
| D. | acceptance market |
| Answer» C. money market | |
| 145. |
Bills drawn and acceptance payable after three months are called |
| A. | indigenous bills |
| B. | usance bills |
| C. | clean bills |
| D. | supply bills |
| Answer» B. usance bills | |
| 146. |
The market which helps commercial banks to maintain their SLR requirements is |
| A. | call money market |
| B. | discount market |
| C. | acceptance market |
| D. | commercial bill market |
| Answer» A. call money market | |
| 147. |
The certificate which evidences an unsecured corporate debt of short term maturity is |
| A. | short term loan certificate |
| B. | certificate of deposits |
| C. | inter bank participation certificate |
| D. | commercial paper |
| Answer» A. short term loan certificate | |
| 148. |
The major player in the Indian money market is |
| A. | co operative banks |
| B. | indigenous banks |
| C. | commercial banks |
| D. | reserve bank of india |
| Answer» C. commercial banks | |
| 149. |
A person appointed by a stock broker to assist him in the business of securities trading is called |
| A. | sub broker |
| B. | commission broker |
| C. | authorized clerk |
| D. | tarawaniwala |
| Answer» C. authorized clerk | |
| 150. |
An order for the purchase of securities at fixed prices is known as |
| A. | limit order |
| B. | open order |
| C. | discretionary order |
| D. | stop loss order |
| Answer» A. limit order | |
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