Quiznetik

Fundamentals of Investment | Set 1

1. Equity cult is spreading very fast in India due to

Correct : D. all of these

2. Market where issuers sell new shares is called

Correct : B. primary market

3. Private placement is preferred by companies ,because it is

Correct : D. all of these

4. Grey market is an

Correct : B. unofficial market

5. The latest stock market to come up in India is

Correct : C. MCX – stock exchange

6. Saving is for

Correct : D. all of these

7. Financial goals of an individual may be

Correct : D. all of these

8. Investment is the

Correct : C. employment of funds on assets to earn returns

9. Investment is done with the following objective

Correct : A. stability of income ,capital growth

10. Economic well being of a person depends on

Correct : C. how wisely you invest

11. Investor must be very cautious when he is buying shares belong to

Correct : C. Z group

12. Bear market means

Correct : C. prices keep falling continuously

13. For trading in the stock exchange

Correct : D. all of these

14. Dematerialization eliminates the risk of

Correct : D. all of these

15. Merchant banking involves

Correct : D. all of these

16. Inflation will

Correct : D. all of these

17. India follows

Correct : B. Sectorial regulatory system

18. Investment environment constitutes

Correct : D. all of these

19. Stock exchange is

Correct : B. Secondary market

20. Financial planning is

Correct : A. Smart investment and smart spending

21. None marketable financial assets include

Correct : D. all of these

22. Which of the following is outside the purview of investment class?

Correct : D. Current account deposits

23. Real estate investment means

Correct : D. all of these

24. Money market instruments are

Correct : D. all of these

25. Speculation involves

Correct : B. Action for a short period based on scientific lines

26. Which of the following are not money market instruments?

Correct : D. Fixed deposit receipt

27. Real estate investment does not include

Correct : D. Equity shares

28. Which of the following is not a mutual fund scheme?

Correct : D. Mutual benefit schemes

29. Stock exchange is a place where

Correct : D. None of these

30. Bull and bear operators are

Correct : A. Speculators

31. Issue management means

Correct : D. all of these

32. Stock exchange is a

Correct : B. secondary market

33. Bull and bear operators are

Correct : A. speculators

34. NSE nifty has

Correct : B. 50stocks

35. Name the first stock market index in India

Correct : D. sensex

36. sensex has base figure of---------

Correct : A. 100

37. Find the odd one out

Correct : D. bonus issue

38. Find the odd one out

Correct : D. Investor

39. Financial assets include

Correct : D. all of these

40. Mutual funds invest in

Correct : D. Stock, bonds and cash instruments

41. Which of the following is not a money market security?

Correct : B. National savings certificate

42. The Sensex has

Correct : B. 30 stocks

43. Speculator is a person

Correct : D. Who considers hearsays, rumours and market behaviour

44. NSE Nifty has

Correct : B. 50 stocks

45. Name the institution which introduced mutual funds in India.

Correct : C. UTI

46. The NSE – Nifty’s base period is

Correct : B. 1995

47. Which of the following is an unsecured instrument?

Correct : A. Deposits with NBFCs

48. Which of the following is not a component of capital market?

Correct : C. Short term loan market

49. The market regulator of Indian capital market is?

Correct : D. SEBI

50. The depository set up by Bombay stock exchange is

Correct : B. CDSL

51. Which of the following was set up mainly for providing finance to private sector?

Correct : C. ICICI

52. NABARD was set up in the year

Correct : C. 1982

53. An example of a derivative security is ______.

Correct : D. B and C

54. Interest rate in the money market funds are

Correct : C. Determined by the market forces

55. Money market include

Correct : C. both organized and unorganized players

56. Income – Expenses = -------------.

Correct : A. Savings

57. ------------- is postponement of current consumption

Correct : B. savings

58. -------------.means a number of securities/assets put together.

Correct : B. portfolio

59. SEC is a regulator of -------------. a) India b) Britain c) USA d) none of these 65. Fixed deposits mobilized by NBFCs are regulated by -------------.

Correct : C. IRDA

60. Debenture trading is ------------- in India.

Correct : B. not popular

61. Debt instruments which have a maturity of less than one year called -------------.

Correct : B. money market instruments

62. ------------- is a vehicle to get entry into the asset classes.

Correct : B. Mutual fund

63. -------------- creates high risk and is illegal.

Correct : B. Gambling

64. The pivotal position in the Indian money market is adorned by

Correct : C. RBI

65. The rate at which RBI lends short term funds to bank is

Correct : B. repo rate

66. The proportion of deposits that banks have to keep with RBI is

Correct : A. CRR

67. for issuing commercial papers

Correct : A. Prior approval of RBI is not required

68. For issuing commercial papers,

Correct : A. Credit rating is a must

69. Money market instruments have a maturity of

Correct : A. Less than one year

70. Debt market instruments have a maturity of

Correct : C. More than one year

71. Irredeemable bond is also known as

Correct : B. Perpetual bond

72. Floating rate bonds carry

Correct : B. Varying rate of interest

73. Zero coupon bonds mean

Correct : B. Zero rate of interest

74. Callable bonds mean

Correct : B. Issue has the right to redeem before the time

75. If the credit quality of the issuer deteriorates, market expects

Correct : B. Higher rate of interest

76. When the risk perception is high, investor prefers to get the bond at

Correct : B. Reduced rate

77. If the maturity period of bond is more, investor prefers

Correct : B. Higher return

78. Par value means

Correct : B. Value of the instrument at the time of issue

79. Risk that a borrower may not pay interest/principal timely is

Correct : C. Default risk

80. Foreign currency appreciation will result in rupee receipts

Correct : B. Higher

81. CRISIL was established in

Correct : A. 1987

82. BBB rating indicates

Correct : C. Moderate safety

83. The tenure of commercial paper instrument is

Correct : C. Minimum 15 days and maximum one year

84. Certificate of deposits are issued by

Correct : B. commercial banks

85. Inter bank participation certificate is a

Correct : A. money market instrument

86. -----is a market where money is brought and sold

Correct : A. Money market

87. Interest rate on money market funds are ------

Correct : B. market determined

88. ------occupies the pivotal position in the Indian money market

Correct : A. RBI

89. ---control s the money supply in a country

Correct : A. RBI or central bank

90. ----is the rate banks receive for depositing funds with the central bank

Correct : A. reverse repo rate

91. ----------policy is taken by RBI

Correct : A. Monetary policy

92. Rate at which RBI lends to bank is

Correct : A. Repo rate

93. ---------are unsecured promissory note issued by a well rated corporate

Correct : A. commercial paper

94. ----is a must for issuing commercial paper

Correct : A. good credit rating

95. which is not a constituent of money market

Correct : C. share market

96. Money market provides fund for

Correct : B. for a period of up to one year

97. Which is not a constituent of capital market?

Correct : C. commercial bank

98. ---------- is the other name for Zero Coupon bonds.

Correct : C. Deep discount bonds

99. Holders of fixed income securities are ---------- of the issuer.

Correct : B. Creditor

100. Bonds which are issued at a discount and repaid at a face value are called ----------.

Correct : D. Zero coupon bonds