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. |
According to SEBI guidelines |
| A. | all the new issues should be in depository mode |
| B. | all the a group shares should be traded through nsdl |
| C. | all the b group shares should be traded trough nsdl |
| D. | all the above are true |
| Answer» B. all the a group shares should be traded through nsdl | |
| 2. |
An investor becomes the owner of a company to the extent of the capital invested by |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | none of the above |
| Answer» C. mutual funds | |
| 3. |
The NSE –nifty base period is |
| A. | 1992 |
| B. | 1993 |
| C. | 1994 |
| D. | 1995 |
| Answer» E. | |
| 4. |
The promoters contribution should not be less than |
| A. | 25 % of the issue size |
| B. | 20 % of the issue size |
| C. | 30 % of the issue size |
| D. | 33 % of the issue size |
| Answer» C. 30 % of the issue size | |
| 5. |
This pools money from investors and invest in different securities information technology. |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» D. virtual office | |
| 6. |
The variability in a security’s returns resulting from fluctuations in the aggregate market is knownas; |
| A. | market risk |
| B. | interest rate risk |
| C. | purchasing power risk |
| D. | regulation risk |
| Answer» B. interest rate risk | |
| 7. |
The variability in a security’s return resulting from changes in the level of interest rates is referredto as; |
| A. | market risk |
| B. | interest rate risk |
| C. | purchasing power risk |
| D. | regulation risk |
| Answer» C. purchasing power risk | |
| 8. |
Inflation risk is also known as. |
| A. | market risk |
| B. | interest rate risk |
| C. | purchasing power |
| D. | regulation risk |
| Answer» D. regulation risk | |
| 9. |
These are the market risks that cannot be diversified. |
| A. | systematic risk |
| B. | unsystematic risk |
| C. | counter party risk |
| D. | none of the above |
| Answer» B. unsystematic risk | |
| 10. |
Technical analysis gained popularity from the writings of. |
| A. | adam smith |
| B. | markowitz |
| C. | charles dow |
| D. | none of the above |
| Answer» D. none of the above | |
| 11. |
Modern portfolio theory was introduced by, |
| A. | adam smith |
| B. | markowitz |
| C. | charles dow |
| D. | none of these |
| Answer» C. charles dow | |
| 12. |
This is a market for short-term funds. |
| A. | money market |
| B. | capital market |
| C. | commodity market |
| D. | none of these |
| Answer» B. capital market | |
| 13. |
This is a short term indigenous bill of exchange |
| A. | trade bills |
| B. | hundis |
| C. | treasury bills |
| D. | none of the above |
| Answer» C. treasury bills | |
| 14. |
Call money is mainly used by the banks to meet their. |
| A. | temporary requirement of cash |
| B. | long term requirement of cash markowitz |
| C. | medium term requirement of cash charles dow |
| D. | none of above |
| Answer» B. long term requirement of cash markowitz | |
| 15. |
These are short-term securities issued by the RBI on behalf of the government of India. |
| A. | trade bill |
| B. | hundis |
| C. | treasury bills |
| D. | none of these |
| Answer» D. none of these | |
| 16. |
The primary objective of this instrument is to provide some degree of flexibility in the creditportfolio of banks |
| A. | treasury bills |
| B. | interbank participation certificate |
| C. | certificate of deposits |
| D. | all of the above |
| Answer» C. certificate of deposits | |
| 17. |
This is a market for medium and long-term funds |
| A. | money market |
| B. | capital market |
| C. | commodity market |
| D. | none of the above |
| Answer» C. commodity market | |
| 18. |
This refers to the market for government and semi-government securities backed by the RBI |
| A. | money market |
| B. | capital market |
| C. | gilt edged market |
| D. | none of the above |
| Answer» D. none of the above | |
| 19. |
These shares have a preferential right to the payment of dividend and to the return of capital at thetime of winding up of the company. |
| A. | equity share |
| B. | preference share |
| C. | bonus share |
| D. | none of the above |
| Answer» C. bonus share | |
| 20. |
This is a document which either creates a debt or acknowledges it. These are short-term securitiesissued by the RBI on behalf of the Government of India. |
| A. | trade bills |
| B. | debentures |
| C. | treasury bill |
| D. | none of the above |
| Answer» D. none of the above | |
| 21. |
These bonds are the bonds issued at a discount and repaid at a face value. |
| A. | convertible bond |
| B. | zero coupon bond |
| C. | deep discount bond |
| D. | all of the above |
| Answer» C. deep discount bond | |
| 22. |
This fund is open for subscription only during a specified period. |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» C. growth fund | |
| 23. |
The aim of this fund is to provide regular and steady income to investors |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» E. | |
| 24. |
These funds are stock funds that invest in stocks with the potential for long term capitalappreciation. |
| A. | open end fund |
| B. | closed end fund |
| C. | growth fund |
| D. | income fund |
| Answer» D. income fund | |
| 25. |
Each contract is custom designed, and hence is unique in terms of contract size, expiration dateand asset type and quality. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 26. |
These contracts are standardized and hence traded in stock exchanges. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» C. options | |
| 27. |
The credit risk of future is -------- than that of forwards: |
| A. | lower |
| B. | higher |
| C. | average |
| D. | none of the above |
| Answer» B. higher | |
| 28. |
This option gives the holder or buyer , the right to buy specified quantity of the underlying asset ata 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 | |
| 29. |
This option gives the holder or buyer, the right to sell specified quantity of the underlying asset at aspecified price on or before a specified time. |
| A. | call option |
| B. | put option |
| C. | main option |
| D. | none of the above |
| Answer» C. main option | |
| 30. |
These are instruments, which give a fixed rate of interest for a fixed period of maturity. |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» B. equities | |
| 31. |
This pools money from investors and invest in different securities |
| A. | debts |
| B. | equities |
| C. | mutual funds |
| D. | virtual office |
| Answer» D. virtual office | |
| 32. |
Which of the following I not an Indian index |
| A. | sensex |
| B. | nasdaq |
| C. | nifty |
| D. | none of the above |
| Answer» C. nifty | |
| 33. |
An investor becomes the owner of a company to the extent of the capital invested by him |
| A. | debts |
| B. | equities |
| C. | mutual fund |
| D. | virtual office |
| Answer» C. mutual fund | |
| 34. |
Holders of fixed income securities are…… of the issuer |
| A. | debtor |
| B. | creditor |
| C. | owner |
| D. | supplier |
| Answer» C. owner | |
| 35. |
These bonds are issued at a discount and repaid at a face value. |
| A. | zero coupon bond |
| B. | debentures |
| C. | equity share |
| D. | none of the above |
| Answer» B. debentures | |
| 36. |
Treasury bills are actually a class of; |
| A. | securities of companies |
| B. | central government securities |
| C. | equities |
| D. | none of the above |
| Answer» C. equities | |
| 37. |
Industrial growth is a type of ……………. |
| A. | economic analysis |
| B. | industrial analysis |
| C. | company analysis |
| D. | none of these |
| Answer» B. industrial analysis | |
| 38. |
This is the interest rate that every debenture /bond carries on its face value and is fixed at the timeof issue |
| A. | current yield |
| B. | coupon rate |
| C. | market rate |
| D. | none of the above |
| Answer» C. market rate | |
| 39. |
The return on the instrument is held till its maturity is known as |
| A. | current yield |
| B. | coupon rate |
| C. | ytm |
| D. | none of the above |
| Answer» D. none of the above | |
| 40. |
.Which of the following is not a stage of business cycle |
| A. | recovery |
| B. | depression |
| C. | boom |
| D. | inflation |
| Answer» E. | |
| 41. |
Fundamental analysis is a …………….method that uses financial &economic analysis to predictthe movement of stock price. |
| A. | sale valuation method |
| B. | stock valuation method |
| C. | purchase valuation method |
| D. | all of the above |
| Answer» C. purchase valuation method | |
| 42. |
……………….is generally described as homogenous of companies |
| A. | business |
| B. | profession |
| C. | industry |
| D. | group of company |
| Answer» D. group of company | |
| 43. |
. EPS = ……………. / outstanding share |
| A. | gross profit |
| B. | net-earning |
| C. | net loss |
| D. | capital employed |
| Answer» C. net loss | |
| 44. |
…………… = stock price/ EPS |
| A. | price to earnings ratio |
| B. | price to sale ratio |
| C. | eps |
| D. | none of these |
| Answer» B. price to sale ratio | |
| 45. |
Book value = asset + …………….. |
| A. | capital |
| B. | liability |
| C. | current asset |
| D. | current liability |
| Answer» C. current asset | |
| 46. |
ROE stands for ………………. |
| A. | rate of equity |
| B. | rate of earning |
| C. | . return on equity |
| D. | none of these |
| Answer» D. none of these | |
| 47. |
Defective practice is one of the ……………fundamental of analysis |
| A. | tool |
| B. | criticism |
| C. | advantages |
| D. | none of these |
| Answer» C. advantages | |
| 48. |
. ROE is calculated by dividing……….by book value |
| A. | net income |
| B. | gross income |
| C. | cost |
| D. | all of these |
| Answer» B. gross income | |
| 49. |
Which of the following is not a tool of fundamental analysis |
| A. | price to sale ratio |
| B. | price to earnings ratio |
| C. | price to purchase ratio |
| D. | none of these |
| Answer» D. none of these | |
| 50. |
This is stock valuation method that uses financial data to predict price movement |
| A. | company analysis |
| B. | fundamental analysis |
| C. | technical analysis |
| D. | none of these |
| Answer» C. technical analysis | |