Q.1
What is an IPO?
  • Initial Polling Office
  • Initial Public Offering
  • International Public Office
  • Increasing Public Opportunity
Q.2
What are stocks?
  • Shares of ownership in a corporation.
  • Shares of trading in a corporation.
  • Bonds with potential to make money.
  • Bonds that are traded.
Q.3
Who is the chairman of SEBI?
  • Ajay Tyagi
  • Arvind Panagariya
  • C. Rangarajan
  • Raghuram Rajan
Q.4
The securities that are already issued are available for subsequent purchases and sales at:________.
  • Office of the registrar and transfer agent
  • Follow on public offer of the issuer
  • Stock exchanges where they are listed
  • Depositories where they are held
Q.5
A company can raise capital through the primary market in the form of
  • Equity shares
  • Preference shares
  • Debentures
  • All of the above
Q.6
PK Enterprises Limited has sold an entire lot of 5,00,equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹per share. Identify the method of floatation being described in the given lines.
  • Private placement
  • Offer through prospectus
  • Offer for sale
  • Rights issue
Q.7
The reserves of a company rightfully belong to ____________.
  • Equity Shareholders
  • Institutional lenders
  • Promoters
  • Employees
Q.8
Compared to money market securities, capital market securities have
  • more liquidity
  • longer maturity
  • lower yields
  • less risk
Q.9
A spot transaction in the foreign exchange market involves the
  • exchange of exports and imports at a specified future date.
  • exchange of bank deposits at a specified future date.
  • immediate (within two days) exchange of exports and imports.
  • immediate (within two days) exchange of bank deposits.
Q.10
Money market securities have all the following characteristics except they are not
  • short term
  • money
  • low risk
  • very liquid
Q.11
A basic principle of finance is that the value of any investment is
  • the present value of all future net cash flows generated by the investment
  • the undiscounted sum of all future net cash flows generated by the investment
  • unrelated to the future net cash flows generated by the investment
  • unrelated to the degree of risk associated with the future net cash flows generated by the investment
Q.12
The primary reason that individuals and firms choose to borrow long-term is to
  • reduce the risk that interest rates will fall before they pay off their debt
  • reduce the risk that interest rates will rise before they pay off their debt.
  • reduce monthly interest payments, as interest rates tend to be higher on short-term than long-term debt instruments
  • reduce total interest payments over the life of the debt
Q.13
What kind of fund collects and invests income for later payments to eligible recipients?
  • pension fund
  • credit union fund
  • insurance fund
  • mutual fund
Q.14
The process of holding shares in electronic form is known as
  • Demutualisation
  • Dematerialisation
  • Speculation
  • None of the above
Q.15
Which type of financial organization is a nonprofit service cooperative
  • commercial bank
  • mutual fund
  • insurance company
  • credit union
Q.16
What is the name of the fee paid for an insurance policy?
  • interest
  • pension
  • contribution
  • premium
Q.17
What is the main advantage of a mutual fund for an investor?
  • Its price doesn't change much.
  • It offers diversity in investment.
  • It has a set maturity date.
  • It can be sold at a profit.
Q.18
When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, the euro has ________ and the dollar has ________
  • appreciated; appreciated
  • depreciated; appreciated
  • appreciated; depreciated
  • depreciated; depreciated
Q.19
If you buy a 30-day Treasury bill for 99.the discount yield on this security is closest to:
  • 3%
  • 3.0075%
  • 3.0493%
  • 3.0417%
Q.20
_______ formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
  • equities
  • savings
  • bond
  • futures contract
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