1. To frame the investment policy the investor should have
Correct : D. knowledge about the markets with funds
2. The stock is
Correct : D. fully paid up and partly paid up shares
3. Equityshare holders rights are listed below .one of the rights is incorrect
Correct : C. right to share profits in the form of dividends
4. In a limited company
Correct : C. the share holders have to pay the debt to the extent of their shares in the capital
5. In case of nonvoting shares
Correct : D. nonvoting shares carry higher dividends instead of voting rights
6. Zero coupon bonds has its origin in
Correct : A. u.s security market
7. Capital index bonds are linked with
Correct : D. bse-100
8. The negotiable financial investment is different from the non negotiable financial investment in
terms of
Correct : C. transferability
9. investments made on a house property is a
Correct : D. non financial investments
10. Which one of the following is not a money market security
Correct : B. national saving certificate
11. Commercial paper are
Correct : A. unsecured promissory notes
12. The present interest rate of PPF is
Correct : C. 8.7%
13. .This particular schemes helps in deferring the tax payment
Correct : B. national saving certificate
14. SEBI has made mandatory for the companies to disclose
Correct : C. quarterly and annual reporte
15. The minimum number of shares to be applied for is
Correct : B. 200
16. “Sell reliance petro shares at Rs.60”.this order is a
Correct : B. limit order
17. The settlement cycle in BSE and NSE are
Correct : C. 7 days
18. The rolling settlement period introduced in the stock exchange is
Correct : B. t+7
19. Mumbai stock exchange was recognized on a permanent basis in
Correct : B. 1957
20. The VASAT which connects the main central computer means
Correct : D. very small aperture terminal
21. Clearing and settlement operations of the NSE is carried out by
Correct : B. national security clearing cooperation
22. Inter connected stock exchange is to interlink
Correct : C. fifteen regional stock exchanges
23. Over the counter exchange of India was started after the role model of
Correct : C. nasaq & jasaq
24. To be listed on the OTCEI, the minimum capital requirement for a company is
Correct : B. rs.3crores
25. According to SEBI guidelines
Correct : A. all the new issues should be in depository mode
26. The sensex has
Correct : B. 30 stocks
27. The NSE –nifty base period is
Correct : D. 1995
28. The promoters contribution should not be less than
Correct : B. 20 % of the issue size
29. These are instruments, which give a fixed rate of interest for a fixed period of maturity.
Correct : A. debts
30. This pools money from investors and invest in different securities information technology.
Correct : C. mutual funds
31. An investor becomes the owner of a company to the extent of the capital invested by
Correct : B. equities
32. The variability in a security’s returns resulting from fluctuations in the aggregate market is known
as;
Correct : A. market risk
33. The variability in a security’s return resulting from changes in the level of interest rates is referred
to as;
Correct : B. interest rate risk
34. Inflation risk is also known as.
Correct : C. purchasing power
35. This is the stock valuation method that uses financial data to predict price movements.
Correct : C. fundamental analysis
36. These are the market risks that cannot be diversified.
Correct : A. systematic risk
37. Technical analysis gained popularity from the writings of.
Correct : C. charles dow
38. Modern portfolio theory was introduced by,
Correct : B. markowitz
39. This is a market for short-term funds.
Correct : A. money market
40. This is a short term indigenous bill of exchange
Correct : B. hundis
41. Call money is mainly used by the banks to meet their.
Correct : A. temporary requirement of cash
42. These are short-term securities issued by the RBI on behalf of the government of India.
Correct : C. treasury bills
43. The primary objective of this instrument is to provide some degree of flexibility in the credit
portfolio of banks
Correct : B. interbank participation certificate
44. This is a market for medium and long-term funds
Correct : B. capital market
45. This refers to the market for government and semi-government securities backed by the RBI
Correct : C. gilt edged market
46. These shares have a preferential right to the payment of dividend and to the return of capital at the
time of winding up of the company.
Correct : B. preference share
47. This is a document which either creates a debt or acknowledges it. These are short-term securities
issued by the RBI on behalf of the Government of India.
Correct : C. treasury bill
48. These bonds are the bonds issued at a discount and repaid at a face value.
Correct : B. zero coupon bond
49. This fund is one that is available for subscription all through the year.
Correct : A. open end fund
50. This fund is open for subscription only during a specified period.
Correct : B. closed end fund
51. These funds are stock funds that invest in stocks with the potential for long term capital
appreciation.
Correct : C. growth fund
52. The aim of this fund is to provide regular and steady income to investors
Correct : D. income fund
53. Stock mutual funds also sometimes called
Correct : D. equity fund
54. Each contract is custom designed, and hence is unique in terms of contract size, expiration date
and asset type and quality.
Correct : A. forward contract
55. These contracts are standardized and hence traded in stock exchanges.
Correct : B. future contract
56. The credit risk of future is -------- than that of forwards:
Correct : A. lower
57. The buyer or holder of the option purchases the right from the seller for a consideration called;
Correct : B. premium
58. This option gives the holder or buyer , the right to buy specified quantity of the underlying asset at
a specified price on or before a specified time.
Correct : A. call option
59. This option gives the holder or buyer, the right to sell specified quantity of the underlying asset at a
specified price on or before a specified time.
Correct : B. put option
60. These are instruments, which give a fixed rate of interest for a fixed period of maturity.
Correct : A. debts
61. This pools money from investors and invest in different securities
Correct : C. mutual funds
62. An investor becomes the owner of a company to the extent of the capital invested by him
Correct : B. equities
63. Which of the following I not an Indian index
Correct : B. nasdaq
64. Find the odd one from the following
Correct : D. nifty
65. Holders of fixed income securities are…… of the issuer
Correct : B. creditor
66. Treasury bills are actually a class of;
Correct : B. central government securities
67. These bonds are issued at a discount and repaid at a face value.
Correct : A. zero coupon bond
68. This is the interest rate that every debenture /bond carries on its face value and is fixed at the time
of issue
Correct : B. coupon rate
69. The return on the instrument is held till its maturity is known as
Correct : C. ytm
70. Fundamental analysis is a …………….method that uses financial &economic analysis to predict
the movement of stock price.
Correct : B. stock valuation method
71. Industrial growth is a type of …………….
Correct : A. economic analysis
72. .Which of the following is not a stage of business cycle
Correct : D. inflation
73. ……………….is generally described as homogenous of companies
Correct : C. industry
74. . EPS = ……………. / outstanding share
Correct : B. net-earning
75. …………… = stock price/ EPS
Correct : A. price to earnings ratio
76. Book value = asset + ……………..
Correct : B. liability
77. ROE stands for ……………….
Correct : C. . return on equity
78. Defective practice is one of the ……………fundamental of analysis
Correct : B. criticism
79. . ROE is calculated by dividing……….by book value
Correct : A. net income
80. Which of the following is not a tool of fundamental analysis
Correct : C. price to purchase ratio
81. This is stock valuation method that uses financial data to predict price movement
Correct : B. fundamental analysis
82. Funtamntal analysis is …………….
Correct : A. time consuming
83. The underwriting commission in the case of debentures cannot exceed
Correct : D. 2.5 percentage
84. The cheapest method of selling new securities is
Correct : D. stock exchange placing
85. The first exchange was to set up in India was in
Correct : C. mumbai
86. A ---------is not a speculator in the stock exchange
Correct : D. broker
87. A - ---- expects a fall in the prices of securities in the near future
Correct : B. bear
88. The most important function of the new issues market is to provide
Correct : C. facilities for conversion of savings into investments
89. The first exchange was set up in the in the year
Correct : B. 1875
90. Which of the following represents components of the organized sector of the capital market?
Correct : D. all the above
91. The new issue market pertains to
Correct : B. new securities
92. Trading securities beyond the official trading hours of the stock exchange is called
Correct : D. kerb trading
93. The gilt-edged market refers to the market for
Correct : A. govt and semi govt securities
94. First mutual fund of India is
Correct : C. unit trust of india
95. Mutual fund schemes can be operated by
Correct : A. assets management company
96. Regulation authority of stock exchange is
Correct : C. securities contact(regulation) act
97. When a bear find it difficult to meet his commitments immediately, he is called a
Correct : B. lame duck
98. The securities contract (regulation )act came into force with effect from
Correct : D. 1957
99. Following is the largest mutual fund business in India
Correct : A. unit trust of india
100. What denotes the acquisition of a right to purchase securities?