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) .
| 151. |
Speculators who neither buy nor sell securities in the market ,but still trade on them are called |
| A. | wolves |
| B. | stags |
| C. | lame ducks |
| D. | bears |
| Answer» B. stags | |
| 152. |
________ securities are generally issued for a fixed period and redeemable by the issuer at the end of that period. |
| A. | zero coupon bond |
| B. | debt |
| C. | equity shares |
| D. | none of the above |
| Answer» B. debt | |
| 153. |
_______ is a document which either creates a debt or acknowledges it. |
| A. | zero coupon bond |
| B. | debentures |
| C. | equity shares |
| D. | none of the above |
| Answer» B. debentures | |
| 154. |
__________ instruments are those instruments, which have a maturity period of less than one year |
| A. | money market |
| B. | capital market |
| C. | debt market |
| D. | none of these |
| Answer» A. money market | |
| 155. |
G-Secs are issued by the______ on behalf of the Government of India. |
| A. | reserve bank of india |
| B. | securities and exchange board of india |
| C. | ministry of commerce |
| D. | all of these |
| Answer» A. reserve bank of india | |
| 156. |
‘Gilt Securities’ are issued by _________. |
| A. | reserve bank of india |
| B. | securities and exchange board of india |
| C. | ministry of commerce |
| D. | all of these |
| Answer» A. reserve bank of india | |
| 157. |
This is the stock valuation method that uses financial data to predict price movements. |
| A. | fundamental analysis |
| B. | technical analysis |
| C. | company analysis |
| D. | none of the above |
| Answer» A. fundamental analysis | |
| 158. |
Advance decline line is a ______ |
| A. | indicator |
| B. | pattern |
| C. | market indicator |
| D. | none of the above |
| Answer» A. indicator | |
| 159. |
This is the level is the level that the technical analyst believes a stock price will not fall below. |
| A. | support level |
| B. | resistance level |
| C. | maximum level |
| D. | none of the above |
| Answer» B. resistance level | |
| 160. |
This pattern occurs when a stock price drops to a similar price level twice within a few weeks or months. |
| A. | support level |
| B. | cup ad handle |
| C. | double bottom |
| D. | none of the above |
| Answer» C. double bottom | |
| 161. |
Most of such stocks pay dividends and hence investors would like to buy and hold for long periods. Such a portfolio is called; |
| A. | patient portfolio |
| B. | aggressive portfolio |
| C. | efficient portfolio |
| D. | none of the above |
| Answer» A. patient portfolio | |
| 162. |
This portfolio invests in “expensive stocks” that offer big rewards but also carry big risks. |
| A. | patient portfolio |
| B. | aggressive portfolio |
| C. | efficient portfolio |
| D. | none of the above |
| Answer» B. aggressive portfolio | |
| 163. |
A portfolio that provides highest returns at a given level of risk. |
| A. | patient portfolio |
| B. | aggressive portfolio |
| C. | efficient portfolio |
| D. | none of the above |
| Answer» C. efficient portfolio | |
| 164. |
Each contract is custom designed, and hence is unique in terms of contract size, expiration date and the asset type and quality. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» A. forward contract | |
| 165. |
These contracts are standardized and hence trade in stock exchanges |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 166. |
The credit risk of future is __________ than that of forwards: |
| A. | lower |
| B. | higher |
| C. | average |
| D. | none of the above |
| Answer» A. lower | |
| 167. |
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 the above |
| Answer» B. premium | |
| 168. |
this option give 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 | |
| 169. |
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 | |
| 170. |
______________is a financial contract, between two or more parties, whose value is derived from the future value of an underlying asset. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | derivative contract |
| Answer» D. derivative contract | |
| 171. |
_____________ use derivatives markets to reduce or eliminate the risk associated with price of an asset |
| A. | speculator |
| B. | arbitragers |
| C. | hedgers |
| D. | none of these |
| Answer» C. hedgers | |
| 172. |
In ____________Derivatives, underlying asset can be commodities. |
| A. | share |
| B. | rupee |
| C. | commodity |
| D. | none of these |
| Answer» C. commodity | |
| 173. |
______________ contract is a one to one bipartite contract, which is to be performed in future at the terms decided today. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» A. forward contract | |
| 174. |
____________ 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 | |
| 175. |
No credit risk involved in __________ contract because of the involvement of clearing house. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 176. |
Futures are highly standardized, whereas each ____________ is unique |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» A. forward contract | |
| 177. |
______________ option give 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 | |
| 178. |
___________ 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 | |
| 179. |
The following one is a financial asset |
| A. | gold |
| B. | silver |
| C. | shares |
| D. | land |
| Answer» C. shares | |
| 180. |
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» C. medium term security | |
| 181. |
The certificate which evidences an unsecured corporate debt of short term maturity is |
| A. | short term loan certificate |
| B. | certificate of deposits |
| C. | interbank participation certificate |
| D. | commercial paper |
| Answer» D. commercial paper | |
| 182. |
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» D. reserve bank of india | |
| 183. |
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» A. sub broker | |
| 184. |
Political constancy is chief aspect concerning |
| A. | Exchange risk |
| B. | Systematic risk |
| C. | Non-systematic risk |
| D. | Country risk |
| Answer» D. Country risk | |
| 185. |
Systematic risk is higher when: |
| A. | Α > 0. |
| B. | Α < 0. |
| C. | Α > 1. |
| D. | Β > 1 |
| Answer» A. Α > 0. | |
| 186. |
In the stock-price beta estimation for the Coca-Cola Company, the dependent variable is the: |
| A. | Return on Coca-Cola. |
| B. | Price of Coca-Cola stock. |
| C. | Return on the S&P 500. |
| D. | Value of the S&P 500 Index. |
| Answer» D. Value of the S&P 500 Index. | |
| 187. |
If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is: |
| A. | -36% |
| B. | -18%. |
| C. | -20%. |
| D. | -28% |
| Answer» A. -36% | |
| 188. |
Total risk for common stocks is: |
| A. | The sum of systematic risk and diversifiable risk. |
| B. | Measured by beta. |
| C. | The sum of market risk and systematic risk. |
| D. | The sum of diversifiable risk and unsystematic risk |
| Answer» A. The sum of systematic risk and diversifiable risk. | |
| 189. |
The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________. |
| A. | Return; portfolio performance |
| B. | Total risk; portfolio performance |
| C. | Beta; portfolio performance |
| D. | Beta; benchmark risk |
| Answer» C. Beta; portfolio performance | |
| 190. |
A portfolio comprises of two stocks A and B. Stock A gives a return of 8%and stock B Gives a return of 7%. Stock A has a weight of 60% in the portfolio. What is the Portfolio Return? |
| A. | 9% |
| B. | 11% |
| C. | 10% |
| D. | 8% |
| Answer» D. 8% | |
| 191. |
Shares which are not affected by market movements are known as: |
| A. | Offensive shares |
| B. | Growth shares |
| C. | Defensive shares |
| D. | Income shares |
| Answer» C. Defensive shares | |
| 192. |
Exposure indicates |
| A. | Sensitivity to changes in risk |
| B. | Sensitivity to changes in asset prices |
| C. | Sensitivity to changes in portfolio |
| D. | Sensitivity to changes in assets |
| Answer» D. Sensitivity to changes in assets | |
| 193. |
Which of the following securities is most liquid? |
| A. | Money market instruments |
| B. | Capital market instruments |
| C. | Gilt-edged securities |
| D. | Index Futures |
| Answer» B. Capital market instruments | |
| 194. |
Which of the following goals will be considered by the individuals who invest in upcoming companies and wait till the companies to grow and then harvest their profits and move on to other company? |
| A. | Short-term high priority goals |
| B. | Money making goals |
| C. | Long-term high priority goals |
| D. | Lower priority goals |
| Answer» C. Long-term high priority goals | |
| 195. |
A purely passive strategy is defined as |
| A. | One that uses only index funds. |
| B. | One that allocates assets in fixed proportions that do not vary with market conditions. |
| C. | One that is mean-variance efficient. |
| D. | Both A and B. |
| Answer» B. One that allocates assets in fixed proportions that do not vary with market conditions. | |
| 196. |
An industry in the expansion stage of its life cycle is indicated by its |
| A. | Low P/E Ratio. |
| B. | High P/E Ratio. |
| C. | High Dividend Pay-Out Ratio |
| D. | High Default |
| Answer» D. High Default | |
| 197. |
Which of the following is true of municipal government debt? |
| A. | It pays more interest than corporate debt. |
| B. | It is often purchased by individuals with high incomes. |
| C. | It is exempt from estate taxation. |
| D. | It is not subject to interest rate risk. |
| Answer» B. It is often purchased by individuals with high incomes. | |
| 198. |
The net asset value of a mutual fund investing in stock rises with |
| A. | Higher stock prices |
| B. | Lower equity values |
| C. | An increased number of shares |
| D. | Increased liabilities |
| Answer» B. Lower equity values | |
| 199. |
Equity does NOT include |
| A. | Cash and paid-in capital |
| B. | Common stock and paid-in capital |
| C. | Paid-in capital and retained earnings |
| D. | Common stock, paid-in capital and retained earnings |
| Answer» A. Cash and paid-in capital | |
| 200. |
A liquid asset may |
| A. | Be converted into cash |
| B. | Be converted into cash with little chance of loss |
| C. | Not be converted into cash |
| D. | Not be converted without loss |
| Answer» B. Be converted into cash with little chance of loss | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.