Test On Financial Market

40 Questions | By Mannish_sharma | Updated: Mar 20, 2022 | Attempts: 258

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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