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. |
Equity shares have mostly ----------------- all other forms of investments in the longterm. |
| A. | remained neutral when compared to |
| B. | outperformed |
| C. | underperformed |
| D. | given negative returns when compared to |
| Answer» D. given negative returns when compared to | |
| 2. |
--------------- is the process by which physical certificates of an investor are convertedto an equivalent number of securities in electronic form. |
| A. | materialisation |
| B. | rematerialisation |
| C. | conversion |
| D. | dematerializations |
| Answer» E. | |
| 3. |
Which short-term (up to one year) instrument is issued by government as a means offinancing it’s cash requirements? |
| A. | adrs |
| B. | treasury bills |
| C. | equity |
| D. | gdrs |
| Answer» C. equity | |
| 4. |
Devaluation of money means |
| A. | Decrease in internal value of money |
| B. | Decrease in the external value of money |
| C. | Both A and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 5. |
In which of the following type of markets do the buyers and sellers, mainly individuals and institutions, engage in trade of financial securities such as bonds and stocks? |
| A. | Capital market |
| B. | Money market |
| C. | Domestic market |
| D. | Foreign exchange market |
| Answer» B. Money market | |
| 6. |
In which year was the first Exchange-traded Index Derivative Contract traded on the Bombay Stock Exchange (BSE)? |
| A. | 2000 |
| B. | 1994 |
| C. | 1991 |
| D. | 2004 |
| Answer» B. 1994 | |
| 7. |
Mobile phone operators market in India is an example of |
| A. | Monopoly |
| B. | Monopolistic Competition |
| C. | Oligopoly |
| D. | Perfect Competition |
| Answer» D. Perfect Competition | |
| 8. |
Many times we read in newspapers that several companies are adopting the FCCBs route to raise capital. What is the full form of FCCBs? |
| A. | Foreign Currency Convertible Bonds |
| B. | Foreign Convertible Credit Bonds |
| C. | Financial Consortium and credit bureau |
| D. | Future Credit and Currency Bureau |
| E. | None of the above |
| Answer» B. Foreign Convertible Credit Bonds | |
| 9. |
___________ are in business to take advantage of a discrepancy between prices in two different markets (Eg : NSE and BSE). |
| A. | Investors |
| B. | Hedgers |
| C. | Arbitrageurs |
| D. | Speculators |
| Answer» D. Speculators | |
| 10. |
In January 2018, ‘Electoral Bonds’ Scheme was launched. Under this scheme, the electoral bonds will be available at specified branches of ______. |
| A. | Bank of Baroda |
| B. | State Bank of India |
| C. | Punjab National Bank |
| D. | Bank of India |
| Answer» C. Punjab National Bank | |
| 11. |
Match List-I with List-II:List-IList-IIa) Interbank call marketi) Money Marketb) Commercial billsii) Promissory notec) Commercial papersiii) Short-term maturityd) Treasury billsiv) Government papers Choose the correct option from those given below: |
| A. | a-i, b-ii, c-iv, d-iii |
| B. | a-iii, b-i, c-ii, d-iv |
| C. | a-i, b-iii, c-iv, d-ii |
| D. | a-iv, b-iii, c-ii, d-i |
| Answer» D. a-iv, b-iii, c-ii, d-i | |
| 12. |
Insurance Regulatory and Development Authority Of India ordered a merger of Sahara Life with _______. |
| A. | ICICI Prudential |
| B. | Shriam Life |
| C. | Bharti Axia Life |
| D. | Aviva Life |
| Answer» B. Shriam Life | |
| 13. |
Mutual Funds asset base in India stood at ______ at end of November 2018. |
| A. | ₹31 lakh crore |
| B. | ₹47 lakh crore |
| C. | ₹24 lakh crore |
| D. | ₹19 lakh crore |
| Answer» D. ₹19 lakh crore | |
| 14. |
In which year BSE secured a trademark for its iconic building Phiroze Jeejeebhoy Towers at Dalal Street in Mumbai? |
| A. | 2011 |
| B. | 2015 |
| C. | 2000 |
| D. | 2018 |
| Answer» E. | |
| 15. |
How are Fiscal Policy and the Federal Reserve similar? |
| A. | They always must have Congressional approval before passing |
| B. | They both try to promote economic stability |
| C. | They both have a Board of Governors |
| D. | They both use the same tools to fix economic problems |
| Answer» C. They both have a Board of Governors | |
| 16. |
Choose the correct code for the following statements being correct or incorrect.Statement I: An option which gives its holder the privilege of selling to other party a fixed amount of some stock at a stated price on or before a predetermined date is known as call option.Statement II : In an option, the holder has the privilege of purchasing from other party a fixed amount of some stock at a stated price on or before a predetermined date is known as put option. |
| A. | Both the statement I and II are correct. |
| B. | Both the statement I and II are incorrect. |
| C. | Statement I is correct, but II is incorrect. |
| D. | Statement II is correct, but I is incorrect. |
| Answer» C. Statement I is correct, but II is incorrect. | |
| 17. |
Choose the correct code for the following statements being correct or incorrect.Statement I : FX Spot is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date.Statement II : The date of maturity of a forward contract is more than two business days in future. |
| A. | Both the statement I and II are correct. |
| B. | Both the statement I and II are incorrect. |
| C. | Statement I is correct, but II is incorrect. |
| D. | Statement II is correct, but I is incorrect. |
| Answer» B. Both the statement I and II are incorrect. | |
| 18. |
If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be |
| A. | to reduce it by Rs. 1,00,000 |
| B. | to increase it by Rs. 1,00,000 |
| C. | to increase it by more than Rs. 1,00,000 |
| D. | to leave it unchanged |
| Answer» E. | |
| 19. |
In the parlance of financial investments, the terms 'bear' denotes |
| A. | An investor who feels that the price of a particular security is going to fall. |
| B. | An investor who expects the price of particular shares to rise. |
| C. | A shareholder or a bondholder who has an interest in a company financial or otherwise. |
| D. | Any lender whether by making a loan or buying a bond. |
| Answer» B. An investor who expects the price of particular shares to rise. | |
| 20. |
The theory which considers the change in exchange rate with the fluctuations in inflation rates is classified as |
| A. | liquidated power parity |
| B. | purchasing power parity |
| C. | selling power parity |
| D. | volatile power parity |
| Answer» C. selling power parity | |
| 21. |
The centralized market place where agents can have efficiently and quickly transactions is classified as |
| A. | secondary markets |
| B. | central market |
| C. | traded market |
| D. | agents market |
| Answer» B. central market | |
| 22. |
Interest and dividend proceeds received by investors on foreign investment is |
| A. | transfer payment |
| B. | factor income |
| C. | merchandise payment |
| D. | service payment |
| Answer» C. merchandise payment | |
| 23. |
The depository institutions include |
| A. | mutual funds |
| B. | commercial banks and thrifts |
| C. | savings banks |
| D. | credit unions |
| Answer» C. savings banks | |
| 24. |
The depository institutions such as thrifts include |
| A. | savings associations |
| B. | savings banks |
| C. | credit unions |
| D. | all of the above |
| Answer» E. | |
| 25. |
The reduction of risk by holding large number of securities in portfolio of assets is classified as |
| A. | diversification |
| B. | selling ability |
| C. | reduction ability |
| D. | director ability |
| Answer» B. selling ability | |
| 26. |
The additional debt instruments or equity instruments of publicly traded firm are included in the markets classified as |
| A. | flow market |
| B. | primary markets |
| C. | secondary markets |
| D. | funding markets |
| Answer» C. secondary markets | |
| 27. |
In primary markets, the first time issued shares to be publicly traded, in stock markets is considered as |
| A. | traded offering |
| B. | public markets |
| C. | issuance offering |
| D. | initial public offering |
| Answer» E. | |
| 28. |
The type of financial security which have linked payoff to another issued security is classified as |
| A. | linked security |
| B. | derivative security |
| C. | payable security |
| D. | non-issuing security |
| Answer» C. payable security | |
| 29. |
In commercial banks, the subordinate debentures and subordinate notes are considered as |
| A. | stated rates |
| B. | banks debentures |
| C. | banks liabilities |
| D. | banks deposits |
| Answer» D. banks deposits | |
| 30. |
If the financial intermediaries are appointed by the funds suppliers then these intermediaries are classified as |
| A. | supplier monitor |
| B. | funds monitor |
| C. | delegated monitor |
| D. | allocation monitor |
| Answer» D. allocation monitor | |
| 31. |
Selling of products outward home country referred to |
| A. | imports |
| B. | currency Devaluation |
| C. | exports |
| D. | loans |
| Answer» D. loans | |
| 32. |
The position which came in to existence because of holding assets less than liabilities is considered as |
| A. | net surplus in assets |
| B. | net surplus in liabilities |
| C. | net long in currency |
| D. | net short in currency |
| Answer» E. | |
| 33. |
The depository institutions that concentrate loans in one segment such as consumer loans are considered as |
| A. | thrifts |
| B. | state bank |
| C. | global bank |
| D. | multinational institutions |
| Answer» B. state bank | |
| 34. |
In financial transactions, the risk that there will be no profit in selling of this asset is classified as |
| A. | price risk |
| B. | profit risk |
| C. | selling risk |
| D. | financial risk |
| Answer» B. profit risk | |
| 35. |
The money market where securities are issued by governments to obtain funds for short term is classified as |
| A. | money market instruments |
| B. | capital market instruments |
| C. | counter instruments |
| D. | long term instruments |
| Answer» B. capital market instruments | |
| 36. |
The authority which intervenes directly or indirectly in foreign exchange markets by altering the interest rates is considered as |
| A. | centralized instruments |
| B. | centralized stocks |
| C. | central government |
| D. | central corporations |
| Answer» D. central corporations | |
| 37. |
The process of selling and buying of stocks and bonds is classified as |
| A. | s-trade |
| B. | b-trade |
| C. | e-trade |
| D. | stock trade |
| Answer» D. stock trade | |
| 38. |
Structural Adjustment Lending boosts country's |
| A. | short term economic growth |
| B. | long-term economic growth |
| C. | short term financing |
| D. | long-term financing |
| Answer» C. short term financing | |
| 39. |
The financial intermediaries offering savings plan to individuals and funds are exempted from taxation are considered as |
| A. | trading funds |
| B. | penalty funds |
| C. | pension funds |
| D. | global funds |
| Answer» D. global funds | |
| 40. |
For a foreign exchange of specific currency, the non-hedged position is classified as |
| A. | open position |
| B. | close position |
| C. | currency long position |
| D. | currency short position |
| Answer» B. close position | |
| 41. |
Chief cause that market worth of organization might raise in reaction to privatization is expected |
| A. | improvements in financial performance |
| B. | improvement in profits |
| C. | improvements in exports |
| D. | improvement in managerial efficiency |
| Answer» E. | |
| 42. |
US and Chile agree on agreement in 2003 which is |
| A. | free trade agreement |
| B. | European union |
| C. | Berlin wall |
| D. | NAFTA |
| Answer» B. European union | |
| 43. |
The money market where debt and stocks are traded and maturity period is more than a year is classified as |
| A. | shorter term markets |
| B. | capital markets |
| C. | counter markets |
| D. | long-term markets |
| Answer» C. counter markets | |
| 44. |
One of biggest borrowers in globe is |
| A. | International Monetary fund |
| B. | World trade Organization |
| C. | World Bank |
| D. | International financial Corporation |
| Answer» D. International financial Corporation | |
| 45. |
In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of |
| A. | domestic rates |
| B. | forward and spot exchange rates |
| C. | forward rate |
| D. | spot rates |
| Answer» C. forward rate | |
| 46. |
The institutions classified as depository ones and have loans as their major assets are classified as |
| A. | commercial banks |
| B. | commercial mortgages |
| C. | credit mortgages |
| D. | credit derivative |
| Answer» B. commercial mortgages | |
| 47. |
Financial account was earlier called as |
| A. | capital account |
| B. | current account |
| C. | factor income |
| D. | liability account |
| Answer» B. current account | |
| 48. |
The risk arises from trading of assets because of change in asset prices and exchange rates is classified as |
| A. | asset risk |
| B. | trade risk |
| C. | market risk |
| D. | exchange risk |
| Answer» D. exchange risk | |
| 49. |
Numerous European nations accepted Euro as their currency in |
| A. | 1998 |
| B. | 1997 |
| C. | 1999 |
| D. | 1996 |
| Answer» D. 1996 | |
| 50. |
The maturity of debt instruments which faces more price fluctuations is |
| A. | primary maturity |
| B. | capital maturity |
| C. | short term maturity |
| D. | long term maturity |
| Answer» E. | |