MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
-------------.means a number of securities/assets put together. |
| A. | Investment |
| B. | portfolio |
| C. | savings |
| D. | none of these |
| Answer» C. savings | |
| 2. |
Grey market is an |
| A. | official market |
| B. | unofficial market |
| C. | regulated market |
| D. | none of these |
| Answer» C. regulated market | |
| 3. |
Technical analysis study |
| A. | Financial figures of the companies |
| B. | Behaviour of stock prices |
| C. | Data about the industry |
| D. | None of these |
| Answer» C. Data about the industry | |
| 4. |
Speculator is a person |
| A. | Who evaluates the performance of the company |
| B. | Who uses his own funds only |
| C. | Who is willing to take moderate risk only |
| D. | Who considers hearsays, rumours and market behaviour |
| Answer» E. | |
| 5. |
which is not a constituent of money market |
| A. | Call money market |
| B. | discount houses |
| C. | share market |
| D. | acceptance market |
| Answer» D. acceptance market | |
| 6. |
Dow theory is associated with |
| A. | Market analysis |
| B. | Technical analysis |
| C. | Fundamental analysis |
| D. | all of these |
| Answer» C. Fundamental analysis | |
| 7. |
Which of the following is outside the purview of investment class? |
| A. | Fixed deposits |
| B. | Recurring deposits |
| C. | Savings bank deposits |
| D. | Current account deposits |
| Answer» E. | |
| 8. |
Depression means |
| A. | Presence of hyper inflation |
| B. | Interest rate shooting up |
| C. | Companies reducing production |
| D. | all of these |
| Answer» E. | |
| 9. |
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» C. Maximum level | |
| 10. |
Name the first stock market index in India |
| A. | dow jones |
| B. | dollex 30 |
| C. | nifty |
| D. | sensex |
| Answer» E. | |
| 11. |
Bull and bear operators are |
| A. | Speculators |
| B. | Investors |
| C. | Gamblers |
| D. | Regulators |
| Answer» B. Investors | |
| 12. |
uti-64 is a |
| A. | Open ended fund |
| B. | closed ended fund |
| C. | both a and b |
| D. | none of the above |
| Answer» B. closed ended fund | |
| 13. |
Money market provides fund for |
| A. | More than one year |
| B. | for a period of up to one year |
| C. | one week to about six weeks |
| D. | none of these |
| Answer» C. one week to about six weeks | |
| 14. |
Which of the following is not a money market security? |
| A. | Treasury bills |
| B. | National savings certificate |
| C. | Certificate of deposit |
| D. | Commercial paper |
| Answer» C. Certificate of deposit | |
| 15. |
Real estate investment means |
| A. | Investment in houses |
| B. | Investment in flats |
| C. | Investment in bungalows |
| D. | all of these |
| Answer» E. | |
| 16. |
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» B. growth rate of industry equal the growth of the economy | |
| 17. |
The bond yield remains constant over its life and the discount or premium amount will decrease |
| A. | at an decreasing rate as its life gets shorter |
| B. | at an decreasing rate as its life gets longer |
| C. | at an increasing rate as its life gets shorter |
| D. | at an increasing rate as its life gets longer |
| Answer» D. at an increasing rate as its life gets longer | |
| 18. |
The chartist believe that the charts |
| A. | Spot the current trend for buying and selling |
| B. | indicates the future action to be taken |
| C. | Shows the past historic movements |
| D. | all of the above |
| Answer» E. | |
| 19. |
Total risk in a security usually measured by |
| A. | Range |
| B. | standard deviation |
| C. | beta |
| D. | co efficient of variation |
| Answer» C. beta | |
| 20. |
The term structure of the bond is the relationship between the |
| A. | interest rate and bond’s maturity period |
| B. | interest rate of the bond and market rate of interest |
| C. | interest rate and the price of bond |
| D. | yield and time taken to mature |
| Answer» E. | |
| 21. |
BBB rating indicates |
| A. | Adequate safety |
| B. | Reasonable safety |
| C. | Moderate safety |
| D. | None of these |
| Answer» D. None of these | |
| 22. |
Which is not a constituent of capital market? |
| A. | public finance institution |
| B. | stock exchange |
| C. | commercial bank |
| D. | unit trust of India |
| Answer» D. unit trust of India | |
| 23. |
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» B. 1 | |
| 24. |
The latest stock market to come up in India is |
| A. | NSE |
| B. | BSE |
| C. | MCX – stock exchange |
| D. | none of these |
| Answer» D. none of these | |
| 25. |
Holders of fixed income securities are ---------- of the issuer. |
| A. | debtors |
| B. | Creditor |
| C. | issuer |
| D. | banker |
| Answer» C. issuer | |
| 26. |
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» C. state government | |
| 27. |
If the markets are efficient, the security price provides |
| A. | Inadequate return for taking up risk |
| B. | normal return for the level of risk taken |
| C. | high return for the level of risk taken |
| D. | B and C |
| Answer» C. high return for the level of risk taken | |
| 28. |
Which of the following are not money market instruments? |
| A. | Treasury bills |
| B. | Commercial Paper |
| C. | Certificate of deposit |
| D. | Fixed deposit receipt |
| Answer» E. | |
| 29. |
Systematic risk is measured with |
| A. | Range |
| B. | standard deviation |
| C. | beta |
| D. | co efficient of variation |
| Answer» D. co efficient of variation | |
| 30. |
Inter bank participation certificate is a |
| A. | money market instrument |
| B. | very popular instrument |
| C. | Instrument used by companies |
| D. | None of these |
| Answer» B. very popular instrument | |
| 31. |
Rate at which RBI lends to bank is |
| A. | Repo rate |
| B. | reverse repo |
| C. | interest arte |
| D. | bank rate |
| Answer» B. reverse repo | |
| 32. |
Which of the following is not a component of capital market? |
| A. | long term loan market |
| B. | industrial securities market |
| C. | Short term loan market |
| D. | government securities market |
| Answer» D. government securities market | |
| 33. |
Investment is the |
| A. | person’s commitment to buy a flat or house |
| B. | employment of funds on goods and services that are used in production process |
| C. | employment of funds on assets to earn returns |
| D. | none of these |
| Answer» D. none of these | |
| 34. |
Debt instruments which have a maturity of less than one year called -------------. |
| A. | Secondary market instruments |
| B. | money market instruments |
| C. | capital market instruments |
| D. | none of these |
| Answer» C. capital market instruments | |
| 35. |
----------- 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» D. None of these | |
| 36. |
Money market instruments have a maturity of |
| A. | Less than one year |
| B. | Less than six months |
| C. | More than one year |
| D. | None of these |
| Answer» B. Less than six months | |
| 37. |
The term beta is synonymous with |
| A. | systematic risk |
| B. | unsystematic risk |
| C. | portfolio risk |
| D. | all of the above |
| Answer» B. unsystematic risk | |
| 38. |
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» D. correlation | |
| 39. |
) Bear market means |
| A. | price of stocks continuously move up |
| B. | confidence of the investor increases |
| C. | prices keep falling continuously |
| D. | none of these |
| Answer» D. none of these | |
| 40. |
Private placement is preferred by companies ,because it is |
| A. | cost effective |
| B. | time effective |
| C. | access effective |
| D. | all of these |
| Answer» E. | |
| 41. |
Investor can build a risk free portfolio, when two assets have ---------correlation |
| A. | Perfect positive |
| B. | zero |
| C. | perfect negative |
| D. | partial correlation |
| Answer» D. partial correlation | |
| 42. |
---------are unsecured promissory note issued by a well rated corporate |
| A. | commercial paper |
| B. | certificate of deposit |
| C. | commercial bill |
| D. | all of these |
| Answer» B. certificate of deposit | |
| 43. |
In the weakly efficient market, the stock price reflects |
| A. | the company financial performance |
| B. | the price of the scrip |
| C. | the demand for the scrip |
| D. | the past price and traded volumes |
| Answer» E. | |
| 44. |
Mutual funds are |
| A. | Open ended fund |
| B. | closed ended fund |
| C. | both a and b |
| D. | none of the above |
| Answer» D. none of the above | |
| 45. |
Marketability risk of bond is |
| A. | The market risk which affect all the bonds |
| B. | variation in return caused by difficulty in selling stocks |
| C. | The failure to pay the agreed value of the bond by the user |
| D. | A & B |
| Answer» C. The failure to pay the agreed value of the bond by the user | |
| 46. |
The depository set up by Bombay stock exchange is |
| A. | NSDL |
| B. | CDSL |
| C. | SHCIL |
| D. | CCIL |
| Answer» C. SHCIL | |
| 47. |
Default risk is lower in |
| A. | Treasury bills |
| B. | government bonds |
| C. | ICICI bonds |
| D. | IDBI bonds |
| Answer» B. government bonds | |
| 48. |
The first stock exchange which was fully computerized was |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | DSE |
| Answer» D. DSE | |
| 49. |
Floating rate bonds carry |
| A. | Fixed rate of interest |
| B. | Varying rate of interest |
| C. | Zero rate of interest |
| D. | None of these |
| Answer» C. Zero rate of interest | |
| 50. |
-------------- creates high risk and is illegal. |
| A. | Speculation |
| B. | Gambling |
| C. | Investment |
| D. | all of these |
| Answer» C. Investment | |