MCQOPTIONS
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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.
| 1051. |
Commercial bills market is a part of |
| A. | Organised money market |
| B. | Unorganised money market |
| C. | Stock market |
| D. | Capital market |
| Answer» B. Unorganised money market | |
| 1052. |
When an agent asks a customer to invest in a mutual fund product without telling him/her about the risks involved in the investment, the process is termed as |
| A. | mis-selling |
| B. | undertaking |
| C. | misappropriation of funds |
| D. | cross-selling |
| Answer» B. undertaking | |
| 1053. |
Nifty index is used in |
| A. | Derivatives |
| B. | Index Funds |
| C. | Exchange Traded Funds (ETFs) |
| D. | All of the above |
| Answer» E. | |
| 1054. |
Which of the following 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 (IFF) |
| Answer» E. | |
| 1055. |
Dealings in Stock Exchange in India are regulated by |
| A. | Indian Companies Act |
| B. | Securities Contracts (Regulation) Act |
| C. | Stock Exchange Act |
| D. | None of the above |
| Answer» C. Stock Exchange Act | |
| 1056. |
Which of the following speculators expects the price of securities to fall in the near future? |
| A. | Bull |
| B. | Bear |
| C. | Stag |
| D. | None of these |
| Answer» C. Stag | |
| 1057. |
Mutual funds are regulated by |
| A. | Association of Mutual Funds of India (AMFI) |
| B. | Securities and Exchange Board of India (SEBI) |
| C. | Reserve Bank of India |
| D. | IRDA |
| Answer» C. Reserve Bank of India | |
| 1058. |
Which of the following organisations/agencies has established a fund known as Investor Protection Fund? |
| A. | RBI |
| B. | SIDBl |
| C. | Bombay Stock Exchange |
| D. | Ministry of Finance |
| Answer» B. SIDBl | |
| 1059. |
SEBI is a/an |
| A. | Advisory body |
| B. | Statutory body |
| C. | Constitutional body |
| D. | Non-statutory body |
| Answer» C. Constitutional body | |
| 1060. |
With the introduction of derivatives the underlying cash market witnesses |
| A. | Lower volumes |
| B. | Sometimes higher, sometimes lower |
| C. | Higher volumes |
| D. | Volumes same as before |
| Answer» B. Sometimes higher, sometimes lower | |
| 1061. |
The financial market for securities with maturities of less than one year is known as |
| A. | Derivatives market |
| B. | Cash market |
| C. | Money market |
| D. | Rupee market |
| Answer» C. Money market | |
| 1062. |
Which of the following statements is correct about daily volumes in the call money market? |
| A. | These volumes are usually lower than the volumes in the repo markets |
| B. | These volumes are comparable with volumes in the ICD and CP markets |
| C. | They register the largest transaction value after government securities |
| D. | Call money markets record the highest daily transaction value amongst all segments of debt markets |
| Answer» E. | |
| 1063. |
Government securities with terms of more than 1 year are called |
| A. | Government bonds |
| B. | treasury bills |
| C. | Bills of exchanges |
| D. | capital bills |
| Answer» B. treasury bills | |
| 1064. |
Which of the following can be identified as demat account? |
| A. | Accounts which can have zero balance |
| B. | Accounts opened to facilitate repayment of loan |
| C. | Accounts in which shares of companies are traded in electronic form |
| D. | Accounts maintained by mutual fund companies for investors |
| Answer» D. Accounts maintained by mutual fund companies for investors | |
| 1065. |
In which of the following exchange 'Currency Futures' trading was 1st started? |
| A. | BSE |
| B. | NSE |
| C. | MCX-SX |
| D. | All of these |
| Answer» C. MCX-SX | |
| 1066. |
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 | |
| 1067. |
Which one of the following is correct about the Commercial Papers (CPs) in Indian money market? |
| A. | It is issued by Indian commercial bank |
| B. | It is issued by the companies with a net worth more than ` 5 crore |
| C. | It is issued by the Central Government |
| D. | All of the above |
| Answer» C. It is issued by the Central Government | |
| 1068. |
Consider the following statements I. Money market refers to the market for short-term requirement and deployment of funds. II. Coupon rate is specified interest rate on a fixed maturity security fixed at the time of issue. 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» D. None of these | |
| 1069. |
Which of the following statements is relation of Bombay Stock Exchange, is correct? |
| A. | It is the oldest exchange of India |
| B. | It is known by the name of Dalal Steet |
| C. | Its share index is known by the name of SENSEX |
| D. | All of the above |
| Answer» E. | |
| 1070. |
Consider the following statements about the Indian capital market I. Primary market in India is mainly dealt in the new issue and debenture. II. Primary market in India is supervised by IRDA. 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» B. Only II | |
| 1071. |
When a nations money supply persistently increase at a faster rate than the nation can increase its output of goods and services, which of the following happens? |
| A. | Budget deficits increase |
| B. | Inflation occurs. |
| C. | Real output accelerates |
| D. | Living standards rise |
| Answer» C. Real output accelerates | |
| 1072. |
Which one of the following is the major component of the money supply in the Indian economy? |
| A. | Currency component |
| B. | Deposit component |
| C. | Treasury bill with public |
| D. | Both (a) and (b) |
| Answer» E. | |
| 1073. |
Treasury bills means |
| A. | Salary bills drawn by government officials on the treasury |
| B. | Bills drawee by the government contractors and other suppliers on the treasury for the dues owed to them by the government |
| C. | Obligation of the Government of India issued by the Reserve Bank of India and payable normally 91 days after issue |
| D. | a mode of drawings by the Treasury Office on the Reserve Bank of India |
| Answer» D. a mode of drawings by the Treasury Office on the Reserve Bank of India | |
| 1074. |
Maximum period for which a commercial paper can be issued in |
| A. | 3 months |
| B. | 6 months |
| C. | 1 year |
| D. | 2 years |
| Answer» D. 2 years | |
| 1075. |
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 need for financial planning in a concern can be over-emphasised. Reason (R) Financial planning helps to provide ahead for any more funds, if required. 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. | |
| 1076. |
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 business firm is usually a profit earning concern. Reason (R) Its earnings depend upon the efficient utilisation of funds. 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 | |
| 1077. |
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) Effective and efficient management of finance enables the firm to prosper and grow. Reason (R) Without adequate finance, business can survive only for a short time. 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 | |
| 1078. |
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) Finance fulfills only the beginning requirement of the business. Reason (R) Finance is needed only to promote business. 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 | |
| 1079. |
According to which of the following, the firm's market value is not affected by capital structure? |
| A. | MM hypothesis |
| B. | cet income approach |
| C. | The traditional view |
| D. | None of the above |
| Answer» B. cet income approach | |
| 1080. |
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) Finance is the life blood of business. Reason (R) Finance very essential for the smooth running of the business. 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 | |
| 1081. |
Dividend policy of a company mainly concerns with I. dividend payout. II. stability of dividend. Which of the options given above is/are correct? |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of the above |
| Answer» D. None of the above | |
| 1082. |
Capital structure represents |
| A. | ratio between different forms of capital |
| B. | All liabilities |
| C. | All assets |
| D. | Assets and liabilities |
| Answer» E. | |
| 1083. |
Capital structure designing has nothing to do with |
| A. | Profitability |
| B. | solvency |
| C. | Flexibility |
| D. | transferability |
| Answer» C. Flexibility | |
| 1084. |
Which of the following statements is correct regarding calculation of weighted cost of capital? |
| A. | Retained earnings are always excluded |
| B. | Preference capital is given more weight |
| C. | Cost of issue is considered |
| D. | Weights are always based on the book values |
| Answer» D. Weights are always based on the book values | |
| 1085. |
Which of the following is/are included under causes of under capitalisation? |
| A. | Under estimation of income |
| B. | Promotion during deflation |
| C. | Conservative dividend policy |
| D. | All of the above |
| Answer» E. | |
| 1086. |
Which is not the technique of capital structure analysis? |
| A. | Trading on equity |
| B. | Capital gearing |
| C. | Capital budgeting |
| D. | Cost of capital |
| Answer» D. Cost of capital | |
| 1087. |
Match the following List I List II A. Fixed capital 1. ___refers to make-up of a firm's capitalisation. B. Normal rate of return 2. ___ is the cause of overcapitalisation C. Liberal dividend policy 3. Earnings per share \[\div \]Market price per share =___ D. Capital 4. ___is the funds required for an acquisition of assets. Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]2, B\[\to \]1, C\[\to \]3, D\[\to \]4 |
| C. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| D. | A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 |
| Answer» B. A\[\to \]2, B\[\to \]1, C\[\to \]3, D\[\to \]4 | |
| 1088. |
The concept of cost of capital can also be explained in terms of _____. |
| A. | Opportunity cost |
| B. | variable cost |
| C. | Fixed cost |
| D. | capital cost |
| Answer» B. variable cost | |
| 1089. |
"Dividend policy determines the division of earnings between payments to shareholders and retained earnings". This statement was said by |
| A. | Weston |
| B. | Gitman |
| C. | Brigham |
| D. | Both (a) and (b) |
| Answer» E. | |
| 1090. |
Which of the following pairs is/are not correctly matched? |
| A. | Payment of dividend at the policy usual rate Regular dividend policy |
| B. | Consistency or lack of variability in the stream of dividend payments No dividend policy |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 1091. |
Retained earning is _____ a cost free source of capital. |
| A. | Not |
| B. | sometimes |
| C. | Compulsorily |
| D. | consistently |
| Answer» B. sometimes | |
| 1092. |
_____ refers to make up of a firm's capitalisation. |
| A. | Capital |
| B. | Capital structure |
| C. | Funds |
| D. | None of the above |
| Answer» C. Funds | |
| 1093. |
Long-term finance is required for the purchases of _____assets. |
| A. | Fixed |
| B. | tangible |
| C. | Intangible |
| D. | variable |
| Answer» B. tangible | |
| 1094. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I Overcapitalisation is desirable. Statement II Undercapitalisation is more desirable. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» C. Statement I is correct, but Statement II is incorrect | |
| 1095. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I Dividends can be paid only when there are profits. Statement II Dividends can be paid when there are losses. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» D. Statement I is incorrect, but Statement II is correct | |
| 1096. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I The objective of finance function is wealth maximisation. Statement II The objective of finance function is profit maximisation. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» B. Both statements are incorrect | |
| 1097. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I Traditional approach restricted the scope of financial management to arrange funds. Statement II Efficient management of every business is closely linked with efficient management of its finances. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» B. Both statements are incorrect | |
| 1098. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I A financial manager's concern must be to maintain liquidity rather than profitability. Statement II Main objective of financial management is maximisation of profits. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» C. Statement I is correct, but Statement II is incorrect | |
| 1099. |
Basic feature of an ideal financial plan is |
| A. | Simplicity |
| B. | rigidity |
| C. | Flexibility |
| D. | foresight |
| Answer» C. Flexibility | |
| 1100. |
Stock dividend _____ the number of equity shares. |
| A. | Increases |
| B. | decreases |
| C. | Neutralize |
| D. | Both and |
| Answer» B. decreases | |