Test On Financial Market

40 Questions | Total Attempts: 239

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Market Quizzes & Trivia

Fianance


Questions and Answers
  • 1. 
    Capital Employed is equal to _________.   
    • A. 

      Fixed Assets + Current Assets +Current Liabilities

    • B. 

      Fixed Assets + Current Assets - Current Liabilities

    • C. 

      Fixed Assets - Current Assets + Current Liabilities

    • D. 

      Fixed Assets - Current Assets - Current Liabilities

  • 2. 
    Return on Total Asset is equal to __________.    
    • A. 

      Gross Income/Average Total Asset

    • B. 

      Average total asset/Gross Income

    • C. 

      Return on Equity/Average total Asset

    • D. 

      Net income /Average Total Asset

  • 3. 
    The benchmark stock market index of India is ________.    
    • A. 

      Dow Jones

    • B. 

      Nikkei 225

    • C. 

      S&P 500

    • D. 

      the Nifty

  • 4. 
    At 8% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after two year
    • A. 

      Rs. 108

    • B. 

      Rs. 118.84

    • C. 

      Rs. 208

    • D. 

      Rs. 116.64

  • 5. 
    At 6% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after five years
    • A. 

      Rs. 224

    • B. 

      Rs. 133.82

    • C. 

      Rs. 112.36

    • D. 

      Rs. 130

  • 6. 
    What is the dividend yield of ABC Co Share having a face value of Rs 100, market value of 360 and an annual dividend of Rs 10?    
    • A. 

      1%

    • B. 

      2.77%

    • C. 

      10%

    • D. 

      4%

  • 7. 
    Earnings Per Share (EPS) is calculated by _________.   
    • A. 

      Gross Profit / No. of equity shareholders

    • B. 

      Net Profit / No. of equity shareholders

    • C. 

      Gross Profit / No. of Ordinary shares outstanding

    • D. 

      Net Profit / No. of Ordinary shares outstanding

  • 8. 
    Which amongst these is not a Debt market instrument?    
    • A. 

      Public Sector Units bonds

    • B. 

      Corporate Securities

    • C. 

      FIIs

    • D. 

      Government Securities

  • 9. 
    Which rate of return accounts for intra-year compounding?    
    • A. 

      Effective

    • B. 

      Stated

    • C. 

      Both of the above

    • D. 

      None of the above

  • 10. 
    ___________ is a good indicator of the stock market behaviour
    • A. 

      Reliance

    • B. 

      TISCO

    • C. 

      Infosys

    • D. 

      Nifty index

  • 11. 
    Market Capitalisation is _____________.    
    • A. 

      Value of shares of the company held by Foreign Investors

    • B. 

      No. of shares issued by a company multiplied by it's market price

    • C. 

      Value of shares held by promoters of the company

    • D. 

      Value of shares in the company held by the public

  • 12. 
    A Fund has 50 cr units issued with a face value of Rs. 10. Its NAV isRs. 12.36. Its AUM in Rs. Cr is (Entry Load 2%)
    • A. 

      500

    • B. 

      618

    • C. 

      630.36

    • D. 

      Insufficient Information

  • 13. 
    If a scheme (Fund) issues more units, its NAV will
    • A. 

      Have no impact

    • B. 

      Fall

    • C. 

      Rise

    • D. 

      Can't Say

  • 14. 
    Money Markets refers to that part of the debt market where thematurity is
    • A. 

      Less than 1 year

    • B. 

      Less than 1 month

    • C. 

      Less than 6 month

    • D. 

      More than 1 year

  • 15. 
    What is the present value of Rs 10000 receivable after 1 year discounted at 10% p.a.?    
    • A. 

      11000

    • B. 

      10000

    • C. 

      9000

    • D. 

      9090.9

  • 16. 
    Which of the following is not true about a debt instrument?
    • A. 

      It signifies a ownership right in the company

    • B. 

      It carries interest paying obligation.

    • C. 

      It has a fixed maturity.

    • D. 

      None of the above

  • 17. 
    Which of the following is TRUE about Primary Markets?    
    • A. 

      Primary Markets are markets where commodities are sold.

    • B. 

      Primary Market is the place where public can buy and sell securities from one another.

    • C. 

      Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures.

    • D. 

      Primary Markets are places where only short term instruments are traded.

  • 18. 
    The future value of a Rs.10,000 investment, which gives an annual rate of return of 20% per annum, after two years would grow to _________
    • A. 

      Rs. 14,400

    • B. 

      Rs. 14,000

    • C. 

      Rs. 14,250

    • D. 

      Rs. 14,500

  • 19. 
    'Bid' means the _____________.    
    • A. 

      Seller's price

    • B. 

      Traded Price

    • C. 

      Market price

    • D. 

      Buyer's price

  • 20. 
    For a scheme to be defined as equity fund, it must have minimum
    • A. 

      65% in Indian equities

    • B. 

      65% in equities

    • C. 

      51% Indian equities

    • D. 

      35% Indian equities

  • 21. 
    The lenders use ______________ ratio to assess debt servicing capacity of a firm.    
    • A. 

      Interest Coverage ratio

    • B. 

      Debt-Asset Ratio

    • C. 

      Acid-test Ratio

    • D. 

      Current Ratio

  • 22. 
    ________________ is maintained by NSE to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the Exchange.    
    • A. 

      Investor Education and Reimbursement Fund (IERF)

    • B. 

      Investor Reimbursement Fund (IRF)

    • C. 

      Investor Education and Protection Fund (IEPF)

    • D. 

      Investor Protection Fund (IPF)

  • 23. 
    _____________ gives the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date.   
    • A. 

      Put Option

    • B. 

      Forward

    • C. 

      Future

    • D. 

      Call Option

  • 24. 
    The holders of which instrument are members of the company and have voting rights?    
    • A. 

      Treasury Bill

    • B. 

      Commercial Paper

    • C. 

      Debenture

    • D. 

      Equity

  • 25. 
    NAV Means
    • A. 

      Face Value of Units / No. of Units

    • B. 

      (Market Value of Assets – Liabilities)/ units outstanding

    • C. 

      Current Market Value of Assets / No. of Units

    • D. 

      Net assets divided by initial number of units

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