MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 1234 Mcqs, each offering curated multiple-choice questions to sharpen your Teaching knowledge and support exam preparation. Choose a topic below to get started.
| 501. |
Which one of the following has replaced the Budla System in India? |
| A. | Rolling settlement |
| B. | Trading in equity derivatives |
| C. | Depository system |
| D. | Online trading |
| Answer» B. Trading in equity derivatives | |
| 502. |
Which among the following is eligible to issue self-prospectus? |
| A. | Any company contemplating for public issue of securities |
| B. | Any public financial institution |
| C. | Only manufacturing companies |
| D. | Only foreign companies engaged in trading in India |
| Answer» C. Only manufacturing companies | |
| 503. |
The headquarters of National Stock Exchange is in |
| A. | New Delhi |
| B. | Hyderabad |
| C. | Mumbai |
| D. | Ahmedabad |
| Answer» D. Ahmedabad | |
| 504. |
Consider the following statements I. 'Stag' is a speculative person who applies for shares in a new issue expected to be oversubscribed to make profit by selling such shares at a premium. II. Stock is a bundle of fully paid shares put together for convenience. Which of the statement(s) given above is/are correct? |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of these |
| Answer» C. Both I and II | |
| 505. |
Stock exchange deals with the |
| A. | Second hand securities |
| B. | Issue of preference shares |
| C. | Issue of equity shares |
| D. | Issue of debentures |
| Answer» B. Issue of preference shares | |
| 506. |
The First Mutual Fund Scheme in India was introduced by |
| A. | Government of India |
| B. | Reserve Bank of India |
| C. | Unit Trust of India |
| D. | State Bank of India |
| Answer» D. State Bank of India | |
| 507. |
Match the following List I List II A. Demand Money market 1. Few hours to 14 days B. Commercial Bill 2. 3 to 6 months C. Certificate of Deposit 3. 3 months to 1 year D. Treasury Bill Market 4. 14 days to 364 days Codes |
| A. | A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 |
| B. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| C. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| D. | A\[\to \]1, B\[\to \]3, C\[\to \]4, D\[\to \]2 |
| Answer» B. A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 | |
| 508. |
Which of the following best describes the Securities and Exchange Board of India? |
| A. | SEBI is the regulator for the capital markets |
| B. | SEBI protects the interest of investors |
| C. | SEBI is for ethical practices |
| D. | All of the above |
| Answer» E. | |
| 509. |
Which of the following stock exchanges in India, recently launched 'Carbon Index', so that investors can assess risk and opportunities associated with climate change? |
| A. | Delhi Stock Exchange |
| B. | National Stock Exchange |
| C. | Bombay Stock Exchange |
| D. | Kolkata Stock Exchange |
| Answer» D. Kolkata Stock Exchange | |
| 510. |
Which of the following bodies promoted Securities Trading Corporation of India Limited (STCI) jointly with the public sector banks? |
| A. | SEBI |
| B. | ICICI Limited |
| C. | IDBI Limited |
| D. | RBI |
| Answer» E. | |
| 511. |
Which of the following is not a component or Indias securities market? |
| A. | Commodity futures |
| B. | Small savings in national saving certificates |
| C. | Government bonds |
| D. | Corporate equity |
| Answer» B. Small savings in national saving certificates | |
| 512. |
Commercial paper can be issued |
| A. | By all corporates |
| B. | By all corporates with net worth of atleast ` 10 crore |
| C. | By all corporates with net worth of atleast ` 5 crore |
| D. | Can be issued only by banks |
| Answer» D. Can be issued only by banks | |
| 513. |
Which one of the following best supports the theory that the stock exchange is a secondary market? In a stock exchange |
| A. | Securities are bought and sold by way of transfer |
| B. | An existing holder of securities can dispose of the holdings to another investor who intends to buy them |
| C. | No new investment is created |
| D. | Securities are dealt in for dual purposes investment and speculation |
| Answer» C. No new investment is created | |
| 514. |
Which of the following options strategy is not a bullish strategy? |
| A. | Buying a futures contract on the stock |
| B. | Buying a call option |
| C. | Writing a put option |
| D. | Writing a call option |
| Answer» E. | |
| 515. |
Which option is an option that would lead to a zero cash flow to the holder if it were exercised immediately? |
| A. | In the money |
| B. | At the money |
| C. | Out of the money |
| D. | Put |
| Answer» C. Out of the money | |
| 516. |
Which option gives the holder the right, but not the obligation to buy an asset by a certain date for a certain price? |
| A. | Put |
| B. | ITM |
| C. | OTM |
| D. | Call |
| Answer» E. | |
| 517. |
An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a |
| A. | Naked Option |
| B. | Call Option |
| C. | out-of-the-money option |
| D. | Put option |
| Answer» E. | |
| 518. |
The features of the commercial paper are |
| A. | It is an unsecured money market instrument issued in the form of promissary note |
| B. | The highly rated corporate borrowers can raise short term funds through this instrument |
| C. | It is an additional instrument to the investing community |
| D. | All of the above |
| Answer» E. | |
| 519. |
Which of the following is not a method a firm can use to publicly issue common stock? |
| A. | Shelf registration |
| B. | Best efforts offering |
| C. | Private placement |
| D. | Public issue of state |
| Answer» D. Public issue of state | |
| 520. |
Which one of the following is emerged as a major instrument of monetary policy in the Indian economy? |
| A. | Liquidity adjustment facility |
| B. | Commercial papers |
| C. | Treasury bills |
| D. | None of the above |
| Answer» B. Commercial papers | |
| 521. |
A market where new securities are bought and sold for the 1st time is known as a |
| A. | Capital market |
| B. | primary market |
| C. | Secondary market |
| D. | tertiary market |
| Answer» C. Secondary market | |
| 522. |
Call provisions will be exercised when |
| A. | Interest rates and bond value rise |
| B. | Interest rates and bond value fall |
| C. | Interest rates fall and bond value rise |
| D. | Interest rates rise and bond value fall |
| Answer» D. Interest rates rise and bond value fall | |
| 523. |
Who is authorised to issue coin in India? |
| A. | SBI |
| B. | RBI |
| C. | Ministry of Finance |
| D. | High Court |
| Answer» D. High Court | |
| 524. |
Full form of SLR is |
| A. | State Locality Reserve |
| B. | Sundry Leverage Ratio |
| C. | State Level Recovery |
| D. | Statutory Liquidity Ratio |
| Answer» E. | |
| 525. |
Gilt edged securities refer to |
| A. | Government securities |
| B. | Securities issued by 1st class companies |
| C. | Securities issued by municipal corporation |
| D. | Securities issued by state institution |
| Answer» C. Securities issued by municipal corporation | |
| 526. |
Match the following List I List II A. Capital market 1. NSE B. Money market 2. BSE C. National index 3. RBI D. MIBOR 4. SEBI Codes |
| A. | A\[\to \]1, B\[\to \]4, C\[\to \]3, D\[\to \]2 |
| B. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| C. | A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 |
| D. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| Answer» E. | |
| 527. |
Match the following List I List II A. National Stock 1. Mumbai B. Over the Counter Exchange of India 2. Mumbai C. Madhya Pradesh Stock Exchange 3. Indore D. Capital Stock 4. Kerala Codes |
| A. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| B. | A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 |
| C. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| D. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| Answer» C. A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 | |
| 528. |
As compared to capital markets, money markets |
| A. | Have smaller fluctuations in price |
| B. | Traded debt instruments with shorter terms |
| C. | Are usually more widely traded |
| D. | All of the above |
| Answer» E. | |
| 529. |
A stock broker means a member of |
| A. | SEBI |
| B. | Any exchange |
| C. | a recognised stock exchange |
| D. | any stock exchange |
| Answer» D. any stock exchange | |
| 530. |
Many times, we read about future trading in newspapers. What is 'future trading'? I. It is nothing but a trade between any two stock exchanges, wherein it is decided to purchase the stocks of each other on a fixed price throughout the year. II. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price. Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of these |
| Answer» C. Both I and II | |
| 531. |
Money laundering normally involved |
| A. | placement of funds |
| B. | layering of funds |
| C. | Integrating of fund |
| D. | All of the above |
| Answer» E. | |
| 532. |
Which of the following cannot issue a Commercial Paper? |
| A. | Companies |
| B. | Primary dealers |
| C. | Commercial banks |
| D. | All Indian financial institution |
| Answer» D. All Indian financial institution | |
| 533. |
In the capital market, the term arbitrage is used with reference to |
| A. | Purchase of securities to cover the sale |
| B. | Sale of securities to reduce the loss on purchase |
| C. | Simultaneous purchase and sale of securities to make profits from price |
| D. | Variation in different markets |
| Answer» D. Variation in different markets | |
| 534. |
Financial market provides |
| A. | Long term funds |
| B. | short term funds |
| C. | Guilt edge funds |
| D. | Both (a) and (b) |
| Answer» E. | |
| 535. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) The risk involved in the business should not be discussed in the beginning. Reason (R) The business having more risks should issue ownership securities only. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» E. | |
| 536. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) A sound financial plan should be rigid. Reason (R) In a financing programme, flexibility for future should not be allowed. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» C. A is true, but R is false | |
| 537. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Business can survive without earning profit. Reason (R) Profit earning is the main aim of every economic activity. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» E. | |
| 538. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Routine function of finance manager include record keeping and reporting. Reason (R) Preparation of various financial statements is not a function of finance manager. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» D. A is false, but R is true | |
| 539. |
Direction: In the questions given below are two statements labelled as Assertion and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Modem approach is not a continuous process. Reason (R) Financial manager has to play an important role only at the beginning of enterprise. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» C. A is true, but R is false | |
| 540. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Traditional approach to financial management ignore routine problems. Reason (R) It does not lay focus on day-to-day financial problems of business enterprises. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» B. Both A and R are true, but R is not the correct explanation of A | |
| 541. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) The capital structure should involve minimum risk of financial insolvency. Reason (R) The use of excessive debt threatens the solvency of the company. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» B. Both A and R are true, but R is not the correct explanation of A | |
| 542. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Risk principle of capital structure is one that minimise cost of capital structure. Reason (R) According to this principle, reliance is placed more on equity for financial purpose. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» E. | |
| 543. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Financial management process begins with the financial planning and decisions. Reason (R) Financial management process does not need feedback system. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» D. A is false, but R is true | |
| 544. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) The value of the concern is determined only by profitability. Reason (R) Financial decisions which increase the profitability will decrease the value of the firm. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» C. A is true, but R is false | |
| 545. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Financial management provide the base for success of promotion. Reason (R) Sound financial plan is very necessary for the success of business enterprise. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» B. Both A and R are true, but R is not the correct explanation of A | |
| 546. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Financial management is an imaginative function. Reason (R) Financial management, is one of the functional areas of management. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» E. | |
| 547. |
Basic objective of financial management is |
| A. | Maximisation of profits |
| B. | Profit planning of the organisation |
| C. | Maximisation of shareholder's wealth |
| D. | Ensuring financial discipline in the Organisation |
| Answer» B. Profit planning of the organisation | |
| 548. |
Which of the following is not used to estimate cost of equity capital? |
| A. | External yield criterion |
| B. | Dividend plus growth rate |
| C. | Equity capitalisation approach |
| D. | Capital asset pricing model |
| Answer» E. | |
| 549. |
Borrowing @ 10% and the rate @ 30% means the after tax cost of debt is |
| A. | 20% |
| B. | 7% |
| C. | 3% |
| D. | 10% |
| Answer» C. 3% | |
| 550. |
Which of the following is not very much relevant in dividend decision? |
| A. | Availability of disposable profit |
| B. | Inventories expectations for dividend |
| C. | Capital market conditions |
| D. | Industry practice |
| Answer» D. Industry practice | |