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School of Distance Education

Investment Management. 1

UNIVERSITY OF CALICUTSCHOOL OF DISTANCE EDUCATION

(2011 Admn. onwards)

VI Semester

B.B.AINVESTMENT MANAGEMENT

[FINANCE SPECIALISATION]

Question Bank & Answer

Choose the correct Answer from the bracket.

1. To frame the investment policy the investor should have

a) Knowledge about the company b) investable funds

c) Knowledge about the investment alternatives d) Knowledge about the markets with funds

2. The stock is

a) small units of equal value called shares b) Knowledge about the markets with funds

c) express in terms of number of shares d) fully paid up and partly paid up shares

3. Equityshare holders rights are listed below .one of the rights is incorrect

a) right to have claims in the case of winding up of the company

b) Right to vote at the general body meeting of the company

c) right to share profits in the form of dividends

d) right to receive a copy of the statutory report

4. In a limited company

a) the share holders have to divided the debt of the company and pay

b) the share holders are not liable to pay the debt

c) the share holders have to pay the debt to the extent of their shares in the capital

d) common stock and preference shareholders have to pay the debt

5. In case of nonvoting shares

a) the rights of voting stocks and nonvoting stocks are similar

b) rights and bonus issues for nonvoting shares can be issued in the form of voting shares

c) the nonvoting shares would become voting shares after a particular period of time

d) nonvoting shares carry higher dividends instead of voting rights



6. Zero coupon bonds has its origin in

a) U.S security market b) wall street

c) japans security market d) dalal street

7. Capital index bonds are linked with

a) BSE sensex b) NSE nifty

c) consumer price index d) BSE-100

8. The negotiable financial investment is different from the non negotiable financial investment interms of

a) maturity period b) interest rate

c)transferability d) face value

9. investments made on a house property is a

a) financial investment b) economic investment

c) non negotiable financial investments d) non financial investments

10. Which one of the following is not a money market security

a) Treasury bills b) national saving certificate

c) Certificate of deposits d) commercial paper

11. Commercial paper are

a) unsecured promissory notes b) secured promissory note

c) sold at premium d) issued for a period of 1 to 2 years

12. The present interest rate of PPF is

a) 10% b)8.5%

c)8.7% d)8%

13 .This particular schemes helps in deferring the tax payment

a) Public provident fund b) national saving certificate

c) National saving scheme d) life insurance scheme

14.SEBI has made mandatory for the companies to disclose

a) the yearly annual report b) monthly report and annual report

c) quarterly and annual reporte d) monthly review and annual report

15.The minimum number of shares to be applied for is

a) 100 b) 200

c) 300 d) 500

16. Stock exchange

a) help in the fixation of stock price b) ensure safe and fair dealing



c) induces good performance by the company d) all of these

17. “Sell reliance petro shares at Rs.60”.this order is a

a) best arte order b) limit order

c) discretionary order d) stop loss order

18. The settlement cycle in BSE and NSE are

a) 10 days b) 8 days

c) 7 days d) 15 days

19. The rolling settlement period introduced in the stock exchange is

a) T+5 b) T+7 c) T+2 d) T+15

20. The broker has brought 10000 ABC shares at Rs.200 and sold 8000 shares at Rs.190 on the sameday the margin he has to pay is

a) Gross exposure margin b) special margin

c) Mark to market margin d) concentration ratio margin

21. Mumbai stock exchange was recognized on a permanent basis in

a) 1956 b) 1957 c) 1950 d) 1958

22. Customers protection fund is set up

a) to protect the investors against price fluctuations

b) to protect the broker in care of nonpayment of money by investor

c) to provide insurance to investor s in case of default by the members

d) to protect the member and the investor

23. The VASAT which connects the main central computer means

a) videshsanchar automated trading b) videshsanchar aperture terminal

c) very special aperture terminal d) very small aperture terminal

24. Clearing and settlement operations of the NSE is carried out by

a) national security depository ltd b) National security clearing cooperation

c) state bank of India d) by the exchange itself

25. Inter connected stock exchange is to interlink

a) the BSE ,NSE ,OTCEI b) all the stock exchanges

c) Fifteen regional stock exchanges d) fourteen regional stock exchanges

26. Over the counter exchange of India was started after the role model of

a) NASAQ b) JASAQ c) NASAQ & JASAQ d)NSE

27. To be listed on the OTCEI, the minimum capital requirement for a company is

a) Rs.5 crores b) Rs.3crores c) Rs.2 crores d) Rs.1 crores



28. According to SEBI guidelines

a) all the new issues should be in depository mode

b) all the A group shares should be traded through NSDL

c) all the B group shares should be traded trough NSDL

d) all the above are true

29.The sensex has

a) 25 stocks b) 30 stocks c) 33 stocks d) 35 stocks

30. The NSE –nifty base period is

a) 1992 b) 1993 c)1994 d)1995

31. SEBI would not yet offer documents seeking listing on

a) OTCEI b) NSE c) BSE d) ISE

32. The promoters contribution should not be less than

a) 25 % of the issue size b) 20 % of the issue size

c) 30 % of the issue size d) 33 % of the issue size

33. These are instruments, which give a fixed rate of interest for a fixed period of maturity.

a) Debts b) Equities c) Mutual fund d) Virtual office

34. This pools money from investors and invest in different securities information technology.

a) Debts b) Equities c) Mutual funds d) Virtual office

35. An investor becomes the owner of a company to the extent of the capital invested by

a) Debts b) Equities c) Mutual funds d) None of the above

36. The variability in a security’s returns resulting from fluctuations in the aggregate market is knownas;

a) Market risk b) Interest rate risk

c) Purchasing power risk d) Regulation risk

37. The variability in a security’s return resulting from changes in the level of interest rates is referredto as;


c) Purchasing power risk d) Regulation risk

38. Inflation risk is also known as.


c) Purchasing power d) Regulation risk

39. This is the stock valuation method that uses financial data to predict price movements.

a)Technical analysis b) Company analysis



c) Fundamental analysis d) None of the above

40. These are the market risks that cannot be diversified.

a) Systematic risk b) Unsystematic risk

c) Counter party risk d) None of the above

41. Technical analysis gained popularity from the writings of.

a) Adam smith b) Markowitzc) Charles Dow d) None of the above

42. Modern portfolio theory was introduced by,

a) Adam smith b) Markowitz

c) Charles Dow d) None of these

43. The main type of charts used for Technical analysis is.

a) Line chart b) Bar chartc) Candle stick d) All of the above

44. This is a market for short-term funds.

a) Money market b) Capital marketc) Commodity market d) None of these

45. This is a short term indigenous bill of exchange

a) Trade bills b) Hundisc) Treasury bills d) None of the above

46. Call money is mainly used by the banks to meet their.

a) Temporary requirement of cashb) Long term requirement of cash Markowitzc) Medium term requirement of cash Charles Dowd) None of above

47. These are short-term securities issued by the RBI on behalf of the government of India.

a) Trade bill b) Hundis

c) Treasury bills d) None of these

48. The primary objective of this instrument is to provide some degree of flexibility in the creditportfolio of banks

a) Treasury bills b) Interbank participation certificatec) Certificate of deposits d) All of the above

49. This is a market for medium and long-term funds

a) Money market b) Capital market

c) Commodity market d) None of the above



50. This refers to the market for government and semi-government securities backed by the RBI

a) Money market b) Capital market

c) Gilt edged market d) None of the above

51. These shares have a preferential right to the payment of dividend and to the return of capital at thetime of winding up of the company.

a) Equity share b) Preference sharec) Bonus share d) None of the above

52. This is a document which either creates a debt or acknowledges it. These are short-term securitiesissued by the RBI on behalf of the Government of India.

a) Trade bills b) Debentures

c) Treasury bill d) None of the above

53. These bonds are the bonds issued at a discount and repaid at a face value.

a) Convertible bond b) Zero coupon bondc) Deep discount bond d) All of the above

54. This fund is one that is available for subscription all through the year.

a) Open end fund b) Closed end fundc) Growth fund d) Income fund

55. This fund is open for subscription only during a specified period.


56. These funds are stock funds that invest in stocks with the potential for long term capitalappreciation.


57. The aim of this fund is to provide regular and steady income to investors


58. Stock mutual funds also sometimes called

a) Open end fund b) Closed end fundc) Growth fund d) Equity fund

59. Each contract is custom designed, and hence is unique in terms of contract size, expiration dateand asset type and quality.

a) Forward contract b) Future contractc) Options d) None of the above

60. These contracts are standardized and hence traded in stock exchanges.

a) Forward contract b) Future contract



c) Options d) None of the above

61. The credit risk of future is -------- than that of forwards:

a) Lower b) Higherc) Average d) None of the above

62. The buyer or holder of the option purchases the right from the seller for a consideration called;

a) Remuneration b) Premiumc) Discount d) None of these

63. This option gives the holder or buyer , the right to buy specified quantity of the underlying asset ata specified price on or before a specified time.

a) Call option b) Put optionc) Main option d) None of the above

64. This option gives the holder or buyer, the right to sell specified quantity of the underlying asset at aspecified price on or before a specified time.

a) Call option b) Put option c) Main option d) None of the above

65. These are instruments, which give a fixed rate of interest for a fixed period of maturity.

a) debts b) equities c) mutual funds d) virtual office

66. This pools money from investors and invest in different securities

a) debts b)equities c) mutual funds d) virtual office

67. An investor becomes the owner of a company to the extent of the capital invested by him

a) debts b) equities c) mutual fund d) virtual office

68. Which of the following I not an Indian index

a) sensex b) NASDAQ c) nifty d) none of the above

69. Find the odd one from the following

a) NASDAQ b) dow jones c) NYSE d) nifty

70. Holders of fixed income securities are…… of the issuer

a) debtor b) creditor c) owner d) supplier

71. Treasury bills are actually a class of;

a) securities of companies b) central government securities c) equities d) none of the above

72. These bonds are issued at a discount and repaid at a face value.

a) zero coupon bond b) debentures

c) equity share d) none of the above

73. This is the interest rate that every debenture /bond carries on its face value and is fixed at the timeof issue

a) current yield b) coupon rate c) market rate d) none of the above



74. The return on the instrument is held till its maturity is known as

a) current yield b) coupon rate c) YTM d) none of the above

75. Fundamental analysis is a …………….method that uses financial &economic analysis to predictthe movement of stock price.

a. sale valuation method b. stock valuation method

c. purchase valuation method d. all of the above

76. Industrial growth is a type of …………….

a. economic analysis b. industrial analysis

c. company analysis d. none of these

77 .Which of the following is not a stage of business cycle

a. recovery b. depression

c. boom d. inflation

78. …………………is the aggregate value of goods &services produced in the economy

a. GDP b. national income c. income of an individual d. NNP

79. ……………….is generally described as homogenous of companies

a. business b. profession c. industry d. group of company

80 . EPS = ……………. / outstanding share

a. gross profit b. net-earning c. net loss d. capital employed

81. …………… = stock price/ EPS

a. price to earnings ratio b. price to sale ratio c. EPS d. none of these

82. Book value = asset + ……………..

a. capital b. liability c. current asset d. current liability

83. ROE stands for ……………….

a. rate of equity b. rate of earning

c.. return on equity d. none of these

84.. a healthy company may produce on ROE in the………..to………range

a. 13% to 15% b. 14%to 16% c. 20%to 23%

85. Defective practice is one of the ……………fundamental of analysis

a tool b. criticism c. advantages d. none of these

86 . ROE is calculated by dividing……….by book value

a. net income b. gross income c. cost d. all of these

87. ……………measure what a company’s pays out to investors in the form ofdividend



a. return on equity b. dividend payout ratio c. book value

88. Which of the following is not a tool of fundamental analysis

a. price to sale ratio b. price to earnings ratio

c. price to purchase ratio d. none of these

89. Projected earnings growth is calculated by dividing current price of stock by………

a. dividend b. earnings per share c. net income90. This is stock valuation method that uses financial data to predict price movement

a .company analysis b. fundamental analysisc. technical analysis d. none of these

91. How to calculate dividend yield

a. annual dividend per share / stock price by share

b. monthly dividend per sale / price

c .none of these

92...Which of the following is the advantage of fundamental analysis

a. subjectivity b. time consuming c. identification of value

93. Funtamntal analysis is …………….a. time consuming b .time saving c. expensive d. none of these

94. The underwriting commission in the case of debentures cannot exceed

a) 1 percentage b) 3.5 percentage c) 5 percentage d) 2.5 percentage

95. The cheapest method of selling new securities is

a) sale through clearing houses b) direct sales to public through prospects

c) right issue d)stock exchange placing

96. The first exchange was to set up in India was in

a) Delhi b) Chennai c)Mumbai d) Kolkata

97.A ---------is not a speculator in the stock exchange

a) bull b) bear c) stag d) broker

98.A - ---- expects a fall in the prices of securities in the near future

a) bull b) bear c) stag d) broker

99. The most important function of the new issues market is to provide

a) direction to the flow of capital

b) liquidity to the securities

c) Facilities for conversion of savings into investments

d) An opportunity for new entrepreneurs to succeed

100. The first exchange was set up in the in the year

a) 1847 b) 1875 c) 1905 d) 1923



101. Which of the following represents components of the organized sector of the capital market?

a) stock exchange b) commercial banks c) investors d) all the above

102. The new issue market pertains to

a) Second hand securities b) new securities

c) New as well as second hand securities d) only trail launches into the market

103. Trading securities beyond the official trading hours of the stock exchange is called

a) hammering b) margin trading

c) short trading d) kerb trading

104. The gilt-edged market refers to the market for

a) govt and semi govt securities b) industrial securities

c) shares and debentures d) public limited company securities

105. First mutual fund of India is

a) Reserve bank of India b) state bank of India

c) unit trust of India d) government of India

106. Mutual fund schemes can be operated by

a) assets management company b) public sector banks

c ) financial institutions d) any of these

107. Regulation authority of stock exchange is

a) Indian companies act b) stock exchange act

c) securities contact(regulation) act d) all of the above

108. When a bear find it difficult to meet his commitments immediately, he is called a

a) stag b) lame duck c) lame bear d) lame bull

109. The securities contract (regulation )act came into force with effect from

a) 1949 b) 1954 c) 1956 d) 1957

110. Following is the largest mutual fund business in India

a) Unit trust of India (b) state bank of India c) Canara bank d) Tata

111. The speculative activity that seeks a profit from price variation of securities in the differentmarket is

a) margin trading b) market rigging c) option dealings d) arbitrage

112. What denotes the acquisition of a right to purchase securities?

a) Put option b) call option c) double option d) none of the above

113. A –refers to the acquisition of a right to sell the securities

a) put option b) call option c)double option d)none of the above



114. Who does “blue chip “denotes

a) shares likely to yield agreed return b) shares listed in the stock exchanges

c) shares guaranteed by the government d) shares consistently yielding high returns

115. Financial derivatives are mainly used for

a) speculative activity b) creating more risk c) hedging risk d) earning income

116. The instrument that are marked to the market are

a) forward b)future c) swaps d) options

117. In an option contract, if the option can be exercised only at the time of maturity, it is called

a) Double option b) American option c) put option d)European option

118. The predetermined price at which an underlying assets has to be bought or sold in an optioncontract is called

a) option price b) exercise price c) spot price d) future price

119. A combination of forwards by two counterparties with opposite but matching needs is called

a) swap b)option c) forward d) future

120. Mutual fund are very popular in

a) U.S.A b) U.K c) Japan d) India

121. The pattern of investment of a mutual fund is oriented fixed income yielding securities under

a) Growth fund scheme b) income fund scheme

c) balanced fund scheme d) money market mutual fund scheme

122. In India ,the company which actually deals with the corpus of the mutual fund is called

a) sponsor company b) trustee company

c) asset management company d) mutual fund company

123. Find out the odd one

a) commercial paper b) share certificate c) certificate of deposits d) treasury bills

124. This fund is one that is available for subscription all through the year.

a) Open ended fund b) closed ended fund c) growth fund d) income fund

125. This fund is open for subscription only during a specified period

a) Open ended fund b) closed ended fund c) growth fund d) income fund

126. These funds are stocks funds that invest in stocks with the potential for long term capitalappreciation

a) Open ended fund b) closed ended fund

c) growth fund d) income fund

127. The aim of this fund is to provide regular and steady income to investor.




c)growth fund d) income fund

128. Stock mutual funds also sometimes called


c) growth fund d) equity fund

129. Mutual funds are


c) both a and b d) none of the above

130. Uti-64 is a


c) both a and b d) none of the above

131. Credit rating is mandatory

a) Equity shares b) preference shares

c ) debentures d)all of the above

132. Systematic risk is also known as

a) Unavoidable risk b) unique risk

c) avoidable risk d) financial risk

133. Unsystematic risk is also known as

a) Unavoidable risk b) unique risk

c) avoidable risk d) both b and c

134. Investor can build a risk free portfolio, when two assets have ---------correlation

a) Perfect positive b) zero

c) perfect negative d) partial correlation

135. A set of securities held by an individual investor is called --------

a) Portfolio b) group

c) collection d) bundle

136. Which of the following helps in reduction of risk in portfolio management?

a) Derivation b) dispersion

c) distribution d) diversification

137. The risk in portfolio is measured through the

a) Weighted average of standard deviations b) Weighted average of variance

c) Variance co-variance matrix d ) correlation



138. If an investment assures a fixed return in the future, then the standard deviation of return will be

a) 0 b)1 c) greater than one d) less than one

139. The securities contact act was passed in

a) 1949 b) 1956 c) 1954 d) 1962

140. In secondary market

a) Second hand securities are traded b) new securities are traded

c) Right issues are traded d) none of the above

141. The first stock exchange was set up in

a) Kolkata b) Mumbai c) madras d) Delhi

142. Over the counter market is for

a) selling the share through banker b) buying /selling of unlisted securities

c) Buying /selling of listed securities d) selling the securities to the financial institutions

143. over the counter market is a part of

a) primary market b) secondary market

c) money market d) none of the above

144. Which speculator expect fall in prices in future

a) bull b) bear c) stag d) lame duck

145. Which speculator expects a rise in price in future?

a) Bull b) bear c) stag d) lame duck

146. When a right to purchase a security is given it is called

a) Put option b) call option

c) put and call option d) none of the above

147. OTCEI deals in

a) money market b) industrial securities

c) giving long term loans d) factoring services

148. The first stock exchange which was fully computerized was

a) BSE b) NSE c) OTCEI d) DSE

149. Interest rate risk is associated with

a) inflation b) taxationc) business cycle d) bank rate

150. Volatile stock has beta value

a) Greater than one b) equal to one

c) less than one d) none of the above



151. Total risk in a security usually measured by

a) Range b) standard deviation

c) beta d) co efficient of variation

152. Systematic risk is measured with

a) Range b) standard deviation

c) beta d) co efficient of variation

153. The term beta is synonymous with

a) systematic risk b) unsystematic risk

c) portfolio risk d) all of the above

154. The following one is a financial assets

a) gold b) silver c) shares d) land

155. Which one of the following is a cash assets

a) Deposits created out of loans b) share

c) bond d) post office certificate

156. The component of capital market is

a) treasury bill market b) government securities market

c) commercial bill market d) a and b

157. Goverenment bond is a

a) short term security b) long term security

c) medium term security d) either short term and long term security

158. The market for short term loans is known as

a) call money market b) treasury bill market

c) money market d) acceptance market

159. Bills drawn and acceptance payable after three months are called

a) indigenous bills b) usance bills

c) clean bills d) supply bills

160. The market which helps commercial banks to maintain their SLR requirements is

a) call money market b) discount market

c) acceptance market d) commercial bill market

161. The certificate which evidences an unsecured corporate debt of short term maturity is

a) short term loan certificate b) certificate of deposits

c) inter bank participation certificate d) commercial paper



162. The major player in the Indian money market is

a) co operative banks b) indigenous banks

c) commercial banks d) reserve bank of India

163. A person appointed by a stock broker to assist him in the business of securities trading is called

a) sub broker b) commission broker

c) authorized clerk d) tarawaniwala

164. An order for the purchase of securities at fixed prices is known as

a) limit order b) open order


165. Speculators who neither buy nor sell securities in the market ,but still trade on them are called

a) wolves b) stags

c) lame ducks d) bears

166.________ securities are generally issued for a fixed period and redeemable by the issuer at the endof that period.

a) Zero coupon bond b) Debt

c) Equity shares d) None of the above

167. _________ is deemed to be the owners of the company and enjoy the power to control theactivities of the business through the elected board of directors.

a) shareholders b) debenture holders c) all of these

168. _______ is a document which either creates a debt or acknowledges it.

a) Zero coupon bond b) Debentures

c) Equity shares d) None of the above

169. __________ instruments are those instruments, which have a maturity period of less than oneyear

a) money market b) capital market

c) debt market d) none of these

170. G-Secs are issued by the______ on behalf of the Government of India.

a) Reserve Bank of India b) securities and exchange board of India

c) Ministry of commerce d)all of these

171. ‘Gilt Securities’ are issued by _________.

a) Reserve Bank of India b) securities and exchange board of India

c) Ministry of commerce d) all of these



172. This is the stock valuation method that uses financial data to predict price movements.

a) Fundamental Analysis b) Technical Analysis

c) Company Analysis d) None of the above

173. Advance decline line is a ______

a) Indicator b) Pattern

c) Market indicator d) None of the above

174. This is the level is the level that the technical analyst believes a stock price will not fall below.

a) Support level b) Resistance level

c) Maximum level d) None of the above

175. This pattern occurs when a stock price drops to a similar price level twice within a few weeks ormonths.

a) Support level b) Cup ad handle

c) Double bottom d) None of the above

176. Most of such stocks pay dividends and hence investors would like to buy and hold for longperiods. Such a portfolio is called;

a) Patient portfolio b) Aggressive portfolio

c) Efficient portfolio d) None of the above

177. This portfolio invests in “expensive stocks” that offer big rewards but also carry big risks.



178. A portfolio that provides highest returns at a given level of risk.



179. Each contract is custom designed, and hence is unique in terms of contract size, expiration dateand the asset type and quality.

a) Forward Contract b) Future Contract


180. These contracts are standardized and hence trade in stock exchanges



181. The credit risk of future is __________ than that of forwards:

a) Lower b) Higher

c) Average d) None of the above



182. The buyer or holder of the option purchases the right from the seller for a consideration called;

a) Remuneration b) Premium

c) Discount d) None of the above

183. this option give the holder or buyer, the right to buy specified quantity of the underlying asset ata specified price on or before a specified time..

a) Call option b) Put option

c) Main option d) None of the above

184. This option gives the holder or buyer, the right to sell specified quantity of the underlying asset ata specified price on or before a specified time.

a) Call option b) Put option

c) Main option d) None of the above

185.______________is a financial contract, between two or more parties, whose value is derived fromthe future value of an underlying asset.

a) Forward Contract b) Future Contractc) Options d) Derivative Contract

186._____________ use derivatives markets to reduce or eliminate the risk associated with price of anasset

a)speculator b)arbitragers c)hedgers d)none of these

187.In ____________Derivatives, underlying asset can be commodities.

a) share b) rupee c) commodity d) none of these

188.______________ contract is a one to one bipartite contract, which is to be performed in future atthe terms decided today.



189.____________ contracts are normally traded outside stock exchanges.



190.____________ contracts are standardized and hence traded in stock exchanges

a) Forward Contract b) Future Contractc) Options d) None of the above

191.No credit risk involved in __________ contract because of the involvement of clearing house.





192.Futures are highly standardized, whereas each ____________ is unique



193. ______________ option give the holder or buyer, the right to buy specified quantity of theunderlying asset at a specified price on or before a specified time


194.___________ option gives the holder or buyer, the right to sell specified quantity of theunderlying asset at a specified price on or before a specified time


195. The following one is a financial asset

a) gold b) silver c) shares d) land

196. Which one of the following is a cash assets

a) Deposits created out of loans b) share

c) bond d) post office certificate

197. The component of capital market is

a) treasury bill market b) government securities market

c) commercial bill market d) a and b

198. Goverenment bond is a

a) short term security b) long term security

c) medium term security d) either short term and long term security

199. The market for short term loans is known as

a) call money market b) treasury bill market

c) money market d) acceptance market

200. Bills drawn and acceptance payable after three months are called

a) indigenous bills b) usance bills

c) clean bills d) supply bills

201. The market which helps commercial banks to maintain their SLR requirements is

a) call money market b) discount market

c) acceptance market d) commercial bill market

202. The certificate which evidences an unsecured corporate debt of short term maturity is

a) short term loan certificate b) certificate of deposits

c) interbank participation certificate d) commercial paper



203. The major player in the Indian money market is

a) co operative banks b) indigenous banks

c) commercial banks d) reserve bank of India

204. A person appointed by a stock broker to assist him in the business of securities trading is called

a) sub broker b) commission broker

c) authorized clerk d) Tarawaniwala

205. An order for the purchase of securities at fixed prices is known as

a) limit order b) open order




ANSWERS

1.d)Knowledge about the markets with funds

2.d)Knowledge about the markets with funds

3.a)right to have claims in the case of windingup of the company

4.c) the share holders have to pay the debt tothe extent of their shares in the capital5.d) nonvoting shares carry higher dividendsinstead of voting rights

6.a) U.S security market

7.c) consumer price index

8. c) transferability

9.d)non financial investments

10.b) national saving certificate

11.a)unsecured promissory notes

12. c)8.7%

13.b) national saving certificate

14.c)quarterly and annual report

15.b)200

16. d)all of these

17.b)limit order

18. c) 7 days

19. b)T+7

20. c)Mark to market margin

21. b)1957

22. c)to provide insurance toinvestor s in caseof default by the members

23.d)very small aperture terminal

24. b) National security clearing cooperation

25. c)fifteen regional stock exchanges

26. c) NASAQ & JASAQ

27. b) Rs.3 crores

28. a)all the new issues should be indepository mode

29.b) 30 stocks

30.d)1995

31.a)OTCEI

32.b) 20 % of the issue size

33.a) Debts

34.c)Mutual funds

35.b) Equities

36.a)Market risk

37.b)Interest rate risk

38.c)Purchasing power

39.c)Fundamental analysis

40.a)Systematic risk

41.c)Charles Dow

42.b)Markowitz

43..d)All of the above

44.a)Money market

45.b) Hundis

46.a) Temporary requirement of cash

47.c)Treasury bills

48.b)Interbank participation certificate

49.b)Capital market

50.c)Gilt edged market

51.b)Preference share

52. c)Treasury bills

53. b)Zero coupon bond

54.a)Open end fund

55.b)Closed end fund

56. c)Growth fund

57. d)Income fund



58.d)Equity fund

59.a)Forward contract

60.b)Future contract

61.a)Lower

62.b)Premium

63.a)Call option

64.b)Put option

65.a)debts

66.c)mutual funds

67.b)equities

68.b)NASDAQ

69. d)nifty

70. b)creditors

71. b)central government securities

72. a)zero coupon bond

73. b)coupon rate

74. c)YTM

75. b) stock valuation method

76. a) economic analysis

77. d) inflation

78. GDP

79. c. Industry

80. b.net earring

81. a) price to earnings ratio

82. b. liability

83. c. return on equity

84. a) 13%to15%

85. b. criticism

86. a) net income

87. b) dividend payout ratio

88. c) price to purchase ratio

89. b) earnings per share

90. b)fundamental analysis

91.a) annual dividend per share /stock price byshare

92.c) identification of value

93.a) time consuming

94.d)2.5 percentage

95.d)stock exchange placing

96.c)Mumbai

97.d)broker

98.b)bear

99.c) Facilities for conversion of savings intoinvestments

100.b)1875

101.d)all the above

102.b) new securities

103.d) kerb trading

104.a) govt and semi govt securities

105.c)unit trust of India

106. a) assets management company

107. c) securities contact(regulation) act

108.b) lame duck

109.d) 1957

110.a) unit trust of India

111..d) arbitrage

112. b) call option

113.. a) put option

114. d) shares consistently yielding highreturns

115. c) hedging risk

116. b) future

117. d) European option

118. b) exercise price

119. a) swap



120. a) U.S.A

121. b) income fund scheme

122. c) asset management company

123. b) share certificate

124. a) open ended fund

125. b)closed ended fund

126. c )growth fund

127.d)income fund

128.d)equity fund

129.c) both a and b

130.a)open ended fund

131.c)debentures

132.a) unavoidable risk

133.d)both b and c

134.c)perfect negative

135.a) portfolio

136.d)diversification

137.c) Variance co-variance matrix

138.a) 0

139.b)1956

140.a)second hand securities are traded

141.b)Mumbai

142.b)buying /selling of unlisted securities

143.b)secondary market

144.b) bear

145.a) Bull

146.b)call option

147.b)industrial securities

148.c)OTCEI

149.d)bank rate

150.a) greater than one

151.b)standard deviation

152. c) beta

153.a)systematic risk

154.shares

155.a)deposits created out of loans

156.b)government securities market

157.b)long term security

158.c)money market

159.b) usance bills

160.a)call money market


162.c)commercial banks

163.c)authorized clerk

164.a)limit order

165.b)stags

166.b) Debt

167.a)Share Holders

168.b)Debenture

169.a)Money market

170.a)Reserve Bank of India

171.a)Reserve Bank of India

172. a)Fundamental Analysis

173.a) Indicator

174. b)Resistance level

175.c) Double Bottom

176.a) Patient portfolio

177.b)Aggressive portfolio

178.c) Efficient portfolio

179. a)Forward Contract

180.b) Future Contract

181.a) Lower

182.b) Premium

183. a)Call Option



184.b) Put Option

185.d) Derivative Contract

186. c)Hedgers

187.c)Commodity

188.a) Forward

189. Forward

190.b)Future

191.b) Future

192.a)Forward

193. a)Call option

194. b)Put Option

195.c)shares

196.a) deposits created out of loans

197.b)government securities market

198.c)medium term security

199.c)money market

200.b)usance bills


202.d)commercial paper

203.d)reserve bank of India

204.a) sub broker

205.a)limit order

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