MCQOPTIONS
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MCQOPTIONS
This section includes 2331 Mcqs, each offering curated multiple-choice questions to sharpen your UGC-NET knowledge and support exam preparation. Choose a topic below to get started.
| 1001. |
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» C. discount | |
| 1002. |
this option give 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 | |
| 1003. |
_____________ use derivatives markets to reduce or eliminate the risk associated with price of anasset |
| A. | speculator |
| B. | arbitragers |
| C. | hedgers |
| D. | none of these |
| Answer» D. none of these | |
| 1004. |
This option gives the holder or buyer, the right to sell 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» C. main option | |
| 1005. |
______________is a financial contract, between two or more parties, whose value is derived fromthe future value of an underlying asset. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | derivative contract |
| Answer» E. | |
| 1006. |
In ____________Derivatives, underlying asset can be commodities. |
| A. | share |
| B. | rupee |
| C. | commodity |
| D. | none of these |
| Answer» D. none of these | |
| 1007. |
______________ contract is a one to one bipartite contract, which is to be performed in future atthe terms decided today. |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 1008. |
____________ 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 | |
| 1009. |
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» C. options | |
| 1010. |
Futures are highly standardized, whereas each ____________ is unique |
| A. | forward contract |
| B. | future contract |
| C. | options |
| D. | none of the above |
| Answer» B. future contract | |
| 1011. |
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» D. either short term and long term security | |
| 1012. |
______________ option give the holder or buyer, the right to buy specified quantity of theunderlying 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 | |
| 1013. |
___________ option gives the holder or buyer, the right to sell specified quantity of theunderlying 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» C. main option | |
| 1014. |
The following one is a financial asset |
| A. | gold |
| B. | silver |
| C. | shares |
| D. | land |
| Answer» D. land | |
| 1015. |
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» E. | |
| 1016. |
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» E. | |
| 1017. |
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» B. commission broker | |
| 1018. |
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» C. One that is mean-variance efficient. | |
| 1019. |
A measure of "risk per unit of expected return." |
| A. | standard deviation |
| B. | coefficient of variation |
| C. | correlation coefficient |
| D. | beta |
| Answer» C. correlation coefficient | |
| 1020. |
CDSL stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Central Depository Services Ltd. |
| B. | Central Derivatives Services Ltd. |
| C. | Central Deposit System Ltd |
| D. | Central Derivatives System Ltd |
| Answer» B. Central Derivatives Services Ltd. | |
| 1021. |
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» E. | |
| 1022. |
Which of the following is not a method employed by followers of technical analysis? |
| A. | Charting |
| B. | Relative strength analysis |
| C. | Earnings forecasting |
| D. | Trading around support and resistance levels |
| Answer» D. Trading around support and resistance levels | |
| 1023. |
If interest rates rise, the price of preferred stock |
| A. | Is not affected |
| B. | Rises |
| C. | Falls |
| D. | May rise or fall |
| Answer» D. May rise or fall | |
| 1024. |
If a stock is correctly priced, then you know that ____________. |
| A. | the dividend payout ratio is optimal |
| B. | the stock's required return is equal to the growth rate in earnings and dividends |
| C. | the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return |
| D. | the present value of growth opportunities is equal to the value of assets in place |
| Answer» D. the present value of growth opportunities is equal to the value of assets in place | |
| 1025. |
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» C. It is exempt from estate taxation. | |
| 1026. |
Labour strike, consumer preferences and management policies are making to arises out ofuncertainty is known as ____________ |
| A. | Financial Risk |
| B. | Business Risk |
| C. | Unsystematic Risk |
| D. | Systematic Risk |
| Answer» D. Systematic Risk | |
| 1027. |
Systematic risk is higher when: |
| A. | Α > 0. |
| B. | Α < 0. |
| C. | Α > 1. |
| D. | Β > 1 |
| Answer» B. Α < 0. | |
| 1028. |
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» D. Beta; benchmark risk | |
| 1029. |
The rate of return required by investors in the market for owning a bond is called the: |
| A. | Coupon |
| B. | Face value. |
| C. | Maturity |
| D. | Yield to maturity. |
| Answer» E. | |
| 1030. |
Which of the following is another name for an unsecured bond? |
| A. | Obligation trust bond |
| B. | Junk bond. |
| C. | Speculative bond. |
| D. | Debenture. |
| Answer» B. Junk bond. | |
| 1031. |
Shares which are not affected by market movements are known as: |
| A. | Offensive shares |
| B. | Growth shares |
| C. | Defensive shares |
| D. | Income shares |
| Answer» D. Income shares | |
| 1032. |
The constant-growth dividend discount model (DDM) can be used only when the ___________. |
| A. | growth rate is equal to the required return |
| B. | growth rate is greater than or equal to the required return |
| C. | growth rate is less than the required return |
| D. | growth rate is greater than the required return |
| Answer» D. growth rate is greater than the required return | |
| 1033. |
‐‐‐‐‐‐‐‐‐‐‐‐‐ is a barometer for market behavior. |
| A. | Investment |
| B. | Index |
| C. | Arbitrage |
| D. | None of These |
| Answer» C. Arbitrage | |
| 1034. |
Which of the following is a false statement about the over-the-counter market? |
| A. | Its market maker is called a dealer. |
| B. | It is a telephone and computer-linked network for trading securities. |
| C. | Larger issues of over-the-counter stocks are listed on the National Market System. |
| D. | It only trades stocks of small firms. |
| Answer» E. | |
| 1035. |
Bond prices decrease when inflation increases. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1036. |
Devise adopted to make profit out of the difference in prices of a security in two different markets is called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Arbitrage |
| B. | Margin Trading |
| C. | Call Option |
| D. | None of These |
| Answer» B. Margin Trading | |
| 1037. |
Which of the following terms represents an upper price limit for a stock, based on the quantityof willing sellers? |
| A. | Support. |
| B. | Trendline. |
| C. | Channel. |
| D. | Resistance. |
| Answer» E. | |
| 1038. |
The highest level of market efficiency is |
| A. | weak form efficiency. |
| B. | semi-strong form efficiency. |
| C. | random walk efficiency. |
| D. | strong form efficiency. |
| Answer» E. | |
| 1039. |
100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, the settlement should take place on _____ _? |
| A. | Wednesday (T+2) |
| B. | Tuesday (T+1) |
| C. | Thursday (T+3) |
| D. | Friday (T+4) |
| Answer» B. Tuesday (T+1) | |
| 1040. |
Required rate of return>Coupon rate, the bond will be valued at |
| A. | Premium |
| B. | Par value |
| C. | Discount |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 1041. |
The bid-ask spread set by the market maker is determined by the: |
| A. | fixed operating cost |
| B. | likelihood of trading with those who have superior information |
| C. | stock exchange |
| D. | cost of financing the inventory of securities |
| Answer» D. cost of financing the inventory of securities | |
| 1042. |
__________ was the grandfather of technical analysis. |
| A. | Harry Markowitz |
| B. | William Sharpe |
| C. | Charles Dow |
| D. | Benjamin Graham |
| Answer» D. Benjamin Graham | |
| 1043. |
Municipal government debt |
| A. | Pays more interest than corporate debt |
| B. | Is often purchased by individuals with high incomes |
| C. | Is exempt from estate taxation |
| D. | Is not subject to interest rate risk |
| Answer» C. Is exempt from estate taxation | |
| 1044. |
Bonds rated double A and higher are called: |
| A. | speculative grade bonds. |
| B. | supreme bonds. |
| C. | high-grade bonds. |
| D. | investment grade bonds. |
| Answer» D. investment grade bonds. | |
| 1045. |
An investor who expects increasing interest rates should purchase a bond that has a _____ coupon and a _____term to maturity. |
| A. | high, short |
| B. | zero, long |
| C. | high, long |
| D. | low, long |
| Answer» B. zero, long | |
| 1046. |
Which of the following is not a basic tenet of the Dow Theory? |
| A. | No additional information is needed for the stock market outside of data on stock indexes. |
| B. | The financial market has three distinct types of movements: the primary trend, the intermediate trend, and short-term trends. |
| Answer» F. | |
| 1047. |
A long-term movement of prices, lasting from several months to years is called _______. |
| A. | a minor trend |
| B. | a primary trend |
| C. | an intermediate trend |
| D. | trend analysis |
| Answer» C. an intermediate trend | |
| 1048. |
Which are the popular types of orders placed through an online trading account? |
| A. | Limit orders |
| B. | Market orders |
| C. | Stop loss order |
| D. | All of the above |
| Answer» E. | |
| 1049. |
Which of the following is not an explanation often given for initial price offering under pricing? |
| A. | Scalping |
| B. | Appraisal cost |
| C. | Information asymmetry |
| D. | Private placement |
| Answer» E. | |
| 1050. |
Beta is the slope of |
| A. | the security market line. |
| B. | the capital market line. |
| C. | a characteristic line. |
| D. | the CAPM. |
| Answer» D. the CAPM. | |