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. |
CRISIL was established in |
| A. | 1987 |
| B. | 1991 |
| C. | 1994 |
| D. | None of these |
| Answer» B. 1991 | |
| 2. |
Interest rate risk is associated with |
| A. | Inflation |
| B. | taxation |
| C. | business cycle |
| D. | bank rate |
| Answer» E. | |
| 3. |
Stock mutual funds also sometimes called |
| A. | Open ended fund |
| B. | closed ended fund |
| C. | growth fund |
| D. | equity fund |
| Answer» E. | |
| 4. |
The tenure of commercial paper instrument is |
| A. | Minimum one year |
| B. | minimum five yare |
| C. | Minimum 15 days and maximum one year |
| D. | none of these |
| Answer» D. none of these | |
| 5. |
----is a must for issuing commercial paper |
| A. | good credit rating |
| B. | good bank balance |
| C. | goodwill |
| D. | all of these |
| Answer» B. good bank balance | |
| 6. |
The pivotal position in the Indian money market is adorned by |
| A. | Commercial bank |
| B. | non banking financial companies |
| C. | RBI |
| D. | none of these |
| Answer» D. none of these | |
| 7. |
If the credit quality of the issuer deteriorates, market expects |
| A. | Lesser rate of interest |
| B. | Higher rate of interest |
| C. | Zero rate of interest |
| D. | None of these |
| Answer» C. Zero rate of interest | |
| 8. |
Interest rate in the money market funds are |
| A. | Determined by the RBI |
| B. | determined by the SBI |
| C. | Determined by the market forces |
| D. | none of these |
| Answer» D. none of these | |
| 9. |
Credit rating is mandatory |
| A. | Equity shares |
| B. | preference shares |
| C. | debentures |
| D. | all of the above |
| Answer» D. all of the above | |
| 10. |
Oscillators show the share price movement |
| A. | over a reference period |
| B. | below a reference point |
| C. | through a reference point |
| D. | b and c |
| Answer» D. b and c | |
| 11. |
Interest rate that every bond/debenture carries on its face value and is fixed at the time of issue iscalled----------. |
| A. | bank rate , |
| B. | repo rate |
| C. | Coupon rate |
| D. | all of these |
| Answer» D. all of these | |
| 12. |
Par value means |
| A. | Value of the instrument traded in the market |
| B. | Value of the instrument at the time of issue |
| C. | Intrinsic value of the instrument |
| D. | None of these |
| Answer» C. Intrinsic value of the instrument | |
| 13. |
Which speculator expect fall in prices in future |
| A. | bull |
| B. | bear |
| C. | stag |
| D. | lame duck |
| Answer» C. stag | |
| 14. |
Opening up of the Indian economy means |
| A. | Indian markets and global markets are linked |
| B. | Indian markets and global markets separated |
| C. | Indian markets and global markets are like watertight compartments |
| D. | None of these |
| Answer» B. Indian markets and global markets separated | |
| 15. |
Irredeemable bond is also known as |
| A. | Fully convertible bond |
| B. | Perpetual bond |
| C. | Partially convertible bond |
| D. | None of these |
| Answer» C. Partially convertible bond | |
| 16. |
Money market instruments are |
| A. | Treasury bills |
| B. | Certificate of deposit |
| C. | Commercial paper |
| D. | all of these |
| Answer» E. | |
| 17. |
Investment is done with the following objective |
| A. | stability of income ,capital growth |
| B. | quick returns and short term profit |
| C. | not for collateral value |
| D. | not for tax benefits |
| Answer» B. quick returns and short term profit | |
| 18. |
sensex has base figure of--------- |
| A. | 100 |
| B. | 200 |
| C. | 500 |
| D. | 1000 |
| Answer» B. 200 | |
| 19. |
Technical indicators help |
| A. | to find out the present state of the stock market |
| B. | to estimate the growth of stock market |
| C. | to indicate the economic activity |
| D. | to show the direction of the overall market |
| Answer» E. | |
| 20. |
Which of the following is an unsecured instrument? |
| A. | Deposits with NBFCs |
| B. | Postal deposit receipt |
| C. | Provident fund deposit receipt |
| D. | None of these |
| Answer» B. Postal deposit receipt | |
| 21. |
) Investor must be very cautious when he is buying shares belong to |
| A. | A group |
| B. | S group |
| C. | Z group |
| D. | none of these |
| Answer» D. none of these | |
| 22. |
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» B. closed ended fund | |
| 23. |
For securities X,Y,Z,,T are selected for analysis. The returns of the securities are 10 %,12%,13% and 16% the risk free rate of interest rate is 6%.the standard deviation of the return of the securities are 4,7,5 and 10 which security yield highest return for the risk undertaken? |
| A. | X |
| B. | Y |
| C. | T |
| D. | Z |
| Answer» B. Y | |
| 24. |
Financial planning is |
| A. | Smart investment and smart spending |
| B. | Good investment and lesser spending |
| C. | Less investment and lesser spending |
| D. | None of these |
| Answer» B. Good investment and lesser spending | |
| 25. |
When rupee in the ventilator, dollor in the escalator, |
| A. | IT companies will shine |
| B. | FMCG companies will shine |
| C. | Petroleum marketing companies will shine |
| D. | None of these |
| Answer» B. FMCG companies will shine | |
| 26. |
Bonds which are issued at a discount and repaid at a face value are called ----------. |
| A. | bond , |
| B. | debenture , |
| C. | Deep discount bonds |
| D. | Zero coupon bonds |
| Answer» E. | |
| 27. |
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» B. new securities are traded | |
| 28. |
Zero coupon bonds mean |
| A. | Fixed rate of interest |
| B. | Zero rate of interest |
| C. | Higher rate of interest |
| D. | None of these |
| Answer» C. Higher rate of interest | |
| 29. |
Boom period means |
| A. | High demand for products and services |
| B. | Demand for products steady |
| C. | Demand for services okay |
| D. | None of these |
| Answer» B. Demand for products steady | |
| 30. |
the X company has the beta of 1.5 .the expected return is 15% the risk free rate of interest is5 %.which is the market return. |
| A. | 6.67% |
| B. | 10.33% |
| C. | 15.66% |
| D. | 12.33% |
| Answer» B. 10.33% | |
| 31. |
The proportion of deposits that banks have to keep with RBI is |
| A. | CRR |
| B. | SLR |
| C. | PLR |
| D. | none of these |
| Answer» B. SLR | |
| 32. |
Investment environment constitutes |
| A. | Financial instruments |
| B. | Financial markets |
| C. | Financial intermediaries |
| D. | all of these |
| Answer» E. | |
| 33. |
Income – Expenses = -------------. |
| A. | Savings |
| B. | investment |
| C. | money |
| D. | none of these |
| Answer» B. investment | |
| 34. |
These funds are stocks funds that invest in stocks with the potential for long term capitalappreciation |
| A. | Open ended fund |
| B. | closed ended fund |
| C. | growth fund |
| D. | income fund |
| Answer» D. income fund | |
| 35. |
FII’S are permitted |
| A. | to invest in the listed company only |
| B. | to invest in the listed and unlisted company |
| C. | not to invest in the debentures |
| D. | to invest in the shares of list, unlisted companies and debentures |
| Answer» E. | |
| 36. |
GDP indicates |
| A. | Inflation or deflation |
| B. | the status of the economy |
| C. | the condition of the stock market |
| D. | none of these |
| Answer» C. the condition of the stock market | |
| 37. |
Which speculator expects a rise in price in future? |
| A. | Bull |
| B. | bear |
| C. | stag |
| D. | lame duck |
| Answer» B. bear | |
| 38. |
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» C. put and call option | |
| 39. |
----------policy is taken by RBI |
| A. | Monetary policy |
| B. | fiscal policy |
| C. | both of them |
| D. | all of these |
| Answer» B. fiscal policy | |
| 40. |
Systematic risk is also known as |
| A. | Unavoidable risk |
| B. | unique risk |
| C. | avoidable risk |
| D. | financial risk |
| Answer» B. unique risk | |
| 41. |
Value investing is investing in |
| A. | Companies with low P / E |
| B. | Companies with low P / BV |
| C. | Companies with high dividend yield |
| D. | All of above |
| Answer» E. | |
| 42. |
Name the institution which introduced mutual funds in India. |
| A. | LIC |
| B. | RBI |
| C. | UTI |
| D. | SBI |
| Answer» D. SBI | |
| 43. |
The price earnings ratio of a stock reflects |
| A. | the growth of the company |
| B. | the market mood for the company’s stock |
| C. | the earnings retained and invested in the company. |
| D. | none of these |
| Answer» C. the earnings retained and invested in the company. | |
| 44. |
In fundamental analysis |
| A. | Buy the security if IV>MP |
| B. | Buy the security if IV=MP |
| C. | Buy the security if IV<MP |
| D. | none of these |
| Answer» B. Buy the security if IV=MP | |
| 45. |
None marketable financial assets include |
| A. | fixed deposits in banks |
| B. | fixed deposits in NBFCs |
| C. | postal deposits |
| D. | all of these |
| Answer» E. | |
| 46. |
Volatile stock has beta value |
| A. | Greater than one |
| B. | equal to one |
| C. | less than one |
| D. | none of the above |
| Answer» B. equal to one | |
| 47. |
) Merchant banking involves |
| A. | Advisory services |
| B. | issue management |
| C. | market operations |
| D. | all of these |
| Answer» E. | |
| 48. |
Stock exchange is |
| A. | Primary market |
| B. | Secondary market |
| C. | Money market |
| D. | None of these |
| Answer» C. Money market | |
| 49. |
Risk that a borrower may not pay interest/principal timely is |
| A. | Call risk |
| B. | Liquidity risk |
| C. | Default risk |
| D. | None of these |
| Answer» D. None of these | |
| 50. |
The X stocks return relationship with the stock index is given by its correlation co efficientbeing 0.8.what is the percentage of variation explained by the index ? |
| A. | 80% |
| B. | 60% |
| C. | 64% |
| D. | 20% |
| Answer» D. 20% | |