Q.1
Which of the following is an advantage of a 401(k) plan?
  • Most employers match a portion of your contributions.
  • You may withdraw funds at any time without penalty.
  • You never pay taxes on your contributions.
  • Your contributions are invested in high-return, high-risk fund
Q.2
Which of the following financial organizations specializes in buying installment contracts from merchants who sell on credit?
  • a bank
  • a credit union
  • a finance company
  • an insurance company
Q.3
_______ a situation in which the outcome is not certain, but the probabilities can be estimated
  • equities
  • portfolio diversification
  • risk
  • bond
Q.4
A commercial bill is used to _____________
  • Finance the working capital requirements
  • Meet the short term debt
  • Meet the long term debt
  • Pay the interest
Q.5
Typically, the interest rate on corporate bonds will be ________ the more restrictions are placed on management through restrictive covenants, because ________.
  • higher; corporate earnings will be limited by the restrictions
  • higher; the bonds will be considered safer by bondholders
  • lower; the bonds will be considered safer by buyers
  • lower; corporate earnings will be higher with more restrictions in place
Q.6
If you expect that the price of a stock will decline, which of the following are you most likely do?
  • Buy a put option on the stock.
  • Buy a call option on the stock.
  • Write a put option on the stock.
  • Buy the stock on margin.
Q.7
Who is acting as both the broker and jobber?
  • Budlawalas
  • Tarawaniwalas
  • Hedger
  • Speculators
Q.8
What is the name of fictitious transactions in the share market?
  • Nil transactions
  • Blank sales
  • Wash sales
  • White sales
Q.9
If theinflation rate in Britain is 6 percent, and the inflation rate in the U.S. is 4 percent, then the theory of purchasing power parity predicts that, duringthe value of the British pound in terms of U.S. dollars will
  • rise by 10 percent.
  • rise by 2 percent.
  • fall by 10 percent.
  • fall by 2 percent.
Q.10
A capital market is ideal when:
  • Financial institutions are sufficiently developed
  • Finance is available at a reasonable cost
  • Capital is most productively allocated
  • All of these
Q.11
When a trade bill is accepted by a commercial bank, it is known as a _____
  • Commercial Bill
  • Call money
  • None of these
  • Certificate of deposit
Q.12
Money market deals in _____________________
  • Medium-term securities
  • Short term Securities
  • Long term Securities
  • None of these
Q.13
Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
  • Offer through prospectus
  • Offer for sale
  • Rights issue
  • Private placement
Q.14
On this day, the exchange will deliver the share or make payment to the other broker
  • Pay-in day
  • Pay-out day
  • Transaction day
  • None of the above
Q.15
It is a legally enforceable document which is issued by a stockbroker withinhours of the execution of a trade order.
  • PAN number
  • Unique Order Code
  • Contract Note
  • None of the above
Q.16
Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.
  • Private placement
  • Offer through prospectus
  • Offer for sale
  • All of the above
Q.17
----------------- is based on the uncertain event whose result determined by chance or accident
  • Gambling
  • Speculation
  • Dead cat bouncing
  • Market fluctuations
Q.18
Professional independent brokers are called------------------
  • Broker
  • Hedger
  • Jobber
  • Budlawalas
Q.19
The financial results of a company show that it has suffered losses due to decliningmarket share. The price of its equity share drops in the market. This is an example of therole of the market as: _________.
  • Provider of liquidity
  • Orderly channel for transfer of funds from investors to issuers
  • Generator of productive investments
  • Information Signalling through prices
Q.20
When a bear is unable to meet his commitment immediately he becomes--------------
  • Stag
  • Cat
  • Duck
  • Bear
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