Multiple Choice Single Answer
Question What are primary trends?
Correct Answer Reflection of investor's attitudes towards unfolding fundamentals in
the business cycle
Your Answer Reflection of investor's attitudes towards unfolding fundamentals in
the business cycle
Multiple Choice Multiple Answer
Question Which ratios are commonly used?
Correct Answer Debt equity ratio , Interest coverage ratios , Debt service coverage
ratios
Your Answer Debt equity ratio , Interest coverage ratios , Acid test ratio
True/False
Question The returns of sector specific funds are solely dependant on the
performance of the respective sectors / industries.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The computation of return on a bond involves considering :-
Correct Answer The entire sequence of cash flows , The timing of cash flows ,
Calculating the internal rate of return
Your Answer The entire sequence of cash flows , The timing of cash flows ,
Calculating the internal rate of return
Multiple Choice Multiple Answer
Question To measure the movement of stocks in the market which indices
were constructed by Dow?
Correct Answer Dow Jones industrial Average , Dow Jones Transportation Average
Your Answer Dow Jones industrial Average , Dow Jones Transportation Average
Select The Blank
Question Under futures market ________ process provides for collection of
losses that have already occurred.
Correct Answer The daily settlement
Your Answer The daily settlement
Multiple Choice Single Answer
Question An agreement to buy or sell a specified quantity of an asset at a
certain future date or a certain price is know as :-
Correct Answer Forward contract
Your Answer Forward contract
True/False
Question Quick assets consist of current assets less inventories.
Correct Answer True
Your Answer True
Select The Blank
Question ________ identified five forces that determine the intrinsic long run
profit attractiveness of a market or market segment.
Correct Answer Michael Porter
Your Answer Michael Porter
Select The Blank
Question Debentures rated "BB" refers ________ of timely payment of interest
and principal.
Correct Answer Inadequate safety
Your Answer Inadequate safety
True/False
Question In case of fixed income securities like debentures, you get the return
in the form of dividend.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question If the price of a share at the beginning of the year was Rs.100/-, no
dividend received during the year and the price at the end is Rs.115/-
. What is the rate of return?
Correct Answer 0.15
Your Answer 0.15
True/False
Question If a rupee weakens against the dollars it has favourable impact for the
exporters.
Correct Answer True
Your Answer True
True/False
Question Sensex is the index of Calcutta Stock Exchange.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the features of Kisan Vikas Patra?
Correct Answer Term is for 8 years seven months , Provision of premature withdrawal
, Interest rate is 8.4% compounded annually
Your Answer Term is for 8 years seven months , Provision of premature withdrawal
, Interest rate is 8.4% compounded annually
Select The Blank
Question ________ model is based on the principle that an initial phase where
the growth rate is not stable and subsequent steady growth rate and
remains for the long-term.
Correct Answer The Two-Stage dividend discount
Your Answer The Two-Stage dividend discount
Select The Blank
Question An investor with a higher tolerance of risk should tilt his portfolio in
favour of ________.
Correct Answer Stocks
Your Answer Stocks
Select The Blank
Question ________ measures the profitability of equity funds invested in the
firms.
Correct Answer Return on equity
Your Answer Return on equity
Multiple Choice Multiple Answer
Question In a typical stock market cycle which are the types of trends?
Correct Answer Trends upward , Trend downward , Sideway trend
Your Answer Trends upward , Trend downward , Sideway trend
Multiple Choice Multiple Answer
Question The firm issuing bonds operating sinking fund and repurchases
bonds either :-
Correct Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
Your Answer Calling in a certain number of bonds by lot , Buying bonds in the open
market , Buying bonds issued to banks and financial institutions
Select The Blank
Question A ________ rally for stocks generally takes place because of an
improved outlook for business conditions over what was anticipated.
Correct Answer Bear market
Your Answer Bear market
True/False
Question Default is normally evaluated and indicated by the rating assigned to
the debt instruments by independent credit ratings agencies.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the limitation of Flow-of funds analysis method?
Correct Answer Cannot give indication of the inclination of market participants to
purchase stock
Your Answer Cannot give indication of the inclination of market participants to
purchase stock
Multiple Choice Single Answer
Question A security represent evidence of :-
Correct Answer A property right
Your Answer A property right
Multiple Choice Multiple Answer
Question Return can be in the form of :-
Correct Answer Dividends , Interests , Capital appreciation
Your Answer Dividends , Interests , Capital appreciation
Multiple Choice Single Answer
Question Which year marked increase in growth rate?
Correct Answer 2003 -04
Your Answer 2003 -04
True/False
Question A rise in interest rates will push the market prises of outstanding
bonds where as a fall in interest rates will depress the market prices
down.
Correct Answer False
Your Answer True
True/False
Question Because of statutory compulsion, generally Govt. securities are held
by banks, financial institutions, insurance companies etc.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The greater the deviation of the actual returns from the actual return
:-
Correct Answer Greater the variance
Your Answer Greater the variance
True/False
Question With the use of diversification you can reduce the risk.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Equity shares High risk High risk
Government Securities No risk No risk
Bank Deposits Low risk Low risk
Mutual Funds Average risk Average risk
Select The Blank
Question ________ bonds are generally called for prepayment after interest
rates have fallen, investors will not be able to find comparable
investment avenues.
Correct Answer Call risk
Your Answer Call risk
Multiple Choice Single Answer
Question In India futures on individual securities have been introduced by :-
Correct Answer BSE & NSE
Your Answer BSE
Match The Following
Question Correct Answer Your Answer
Growth of income 40-60 % debt, 40-60 %
equities
75-100 % in equities
Current income Short term debt portfolio Short term debt portfolio
Stability of principal Fixed - income portfolio Fixed - income portfolio
Appreciation 75-100 % in equities 100 % in mutual funds
Multiple Choice Multiple Answer
Question What are the features of post office monthly income scheme?
Correct Answer Rate of return is 8 % , Interest payable monthly , Investor earns
bonus of 10% on completion of term
Your Answer Rate of return is 8 % , Investor earns bonus of 10% on completion of
term
Multiple Choice Single Answer
Question During the 1980's rate of savings in India has hovered around what
percentage?
Correct Answer 0.21
Your Answer 0.21
Multiple Choice Multiple Answer
Question What developments had taken place during the year 2000 in case of
Bharat Forge Ltd.?
Correct Answer Demerger of investment division and windmills , Nominee director of
UTI resigned and ceased to be the director - nomination withdrawn
by UTI
Your Answer Demerger of investment division and windmills
True/False
Question Passive investment managers believe that markets are inefficient and
Active managers believe that markets are efficient.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4%
compounded annually. What will be the value of his investment after
5 years?
Correct Answer Rs. 6083/-
Your Answer Rs. 6083/-
Select The Blank
Question Debentures rated ________ are judged to offer sufficient safety of
timely payment of interest and repayment of principal.
Correct Answer "BBB"
Your Answer "AAA"
Select The Blank
Question Debentures rated as "A" are judged to offer ________ of timely
payment of interest and principal.
Correct Answer Adequate safety
Your Answer High safety
Multiple Choice Single Answer
Question When an investor invests in stock, expects to get the dividends and
an expected price for the period the stock is held is the rule of :-
Correct Answer The General model
Your Answer The General model
Multiple Choice Multiple Answer
Question The Gordon growth model is best suited for firms :-
Correct Answer Growing at a rate equal to or lower that the growth in the economy ,
Which have well established dividend payout ratio policy , Whose
earnings are steady and perpetual
Your Answer Growing at a rate equal to or lower that the growth in the economy ,
Whose earnings are steady and perpetual , Value of stock is risky
Multiple Choice Multiple Answer
Question Who are the constituents of a mutual fund?
Correct Answer Sponsor & trustees , Asset management company , Custodian
Your Answer Sponsor & trustees , Asset management company , Custodian
Multiple Choice Single Answer
Question What does lower level of unemployment indicates?
Correct Answer Positive economic conditions
Your Answer Positive economic conditions
Select The Blank
Question Current liabilities include all liabilities due in the next ________ and
provisions.
Correct Answer 12 months
Your Answer 12 months
Multiple Choice Multiple Answer
Question The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Derivatives
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