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Finance Mixed Test

Description: Finance Mixed Test
Number of Questions: 15
Created by:
Tags: Finance Mixed Test Financial Terms MFC Financial Markets Bond Market Money Market Equity Market Stock Market
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Ratio are expressed in

  1. percentage, rate, proportion.

  2. percentage only

  3. rate and proportion

  4. rate only


Correct Option: A
Explanation:

Right answer because we can express ratio in percentage, rate ,and proportion only. So it is the right answer.

Ratio is a relatioship between

  1. One variable

  2. Two or more variables

  3. No need of variables

  4. Less then two variables


Correct Option: B
Explanation:

Right answer because we can find any ratio with the help of two or more variables. So it is the right answer.

Who is interested for Gross Profit ratio in a company?

  1. Creditors only

  2. Shareholder only

  3. Government

  4. Sale tax department.


Correct Option: B
Explanation:

Right answer because shareholder's interest depends on Gross Profit so, Shareholder is the right answer.

Different Ratio appeals to

  1. management only

  2. shareholder only

  3. creditors

  4. different people.


Correct Option: D
Explanation:

Because different ratios related to different people so, it is the right answer.

Which of the following is not a type of Mutual Fund scheme?

  1. Open - ended schemes

  2. Close - ended schemes

  3. Growth oriented funds

  4. Exchange traded funds


Correct Option: D
Explanation:

 Exchange traded funds : These are open-ended exchange traded funds that are designed to track specific indices.

Which of the following is not a type of financial market?

  1. Money market

  2. Capital market

  3. Sweat equity market

  4. Credit market


Correct Option: C
Explanation:

It is not a market but it is type of shares which is given to employees or directors at discount or for consideration other than cash for providing know how or value addition etc.

Which of the following are not considered as money market instruments?

  1. Treasury Bills

  2. Commercial Paper

  3. Kisan Vikas Patras

  4. Certificate of Deposit


Correct Option: C
Explanation:

These are long term bonds issued by the post office where the capital is doubled in 5.5 years.

Which of the following is not a feature of bonds?

  1. Bonds have face value.

  2. Return is expected in the form of dividends.

  3. Redemption value is stated in bonds.

  4. Bonds are traded in the stock market.


Correct Option: B
Explanation:

In bonds only interest is paid as a return on investment. It may be fixed or variable interest rate which is specified in the certificate.

Long term creditors are also interested for

  1. Net Profit ratio

  2. Operating ratio

  3. Shereholder Fund

  4. Gross Profit ratio.


Correct Option: A
Explanation:

Right answer because long term creditors depend upon the Net Profit ratio in a company.

Which of the following is not a trading platform for equities/shares in India?

  1. NYSE

  2. BSE

  3. NSE

  4. OTCEI


Correct Option: A
Explanation:

It stands for New York Stock Exchange, which is located in New York city, USA.

Which of the following is not an assumption of technical analysis?

  1. The market value is determined by the supply and demand.

  2. The market discounts everything.

  3. The market technicians assume that the past prices predict the future.

  4. The market does not move in trend.


Correct Option: D
Explanation:

The market always moves in trend, except for minor deviations, the stock prices move in trends.

Which of the following is true about Non Banking Financial Companies (NBFC's)?

  1. The maturity period ranges from few months to six years.

  2. The limit for acceptance of deposit has been based on the credit rating of the company.

  3. NBFC's offer lower interest rate than the commercial banks.

  4. Security of the deposits are higher than the deposits with the banks.


Correct Option: B
Explanation:

The limit for acceptance of deposit has been based on the credit rating of the company, the NBFC's not having net owned funds of Rupees 25 lakh are not entitled to accept deposits.

Which of the following is not a technical tool in Dow Theory?

  1. Short selling

  2. Odd lot trading

  3. Non-oscillator

  4. Moving average


Correct Option: C
Explanation:

Non-oscillator is not a technical tool in Dow Theory.

Which of the following has given the doctrine on which the technical analysis is based?

  1. Charles H.Dow

  2. A.J. Nelson

  3. Louis Bachelier

  4. Wells Wilder


Correct Option: A
Explanation:

The technical analysis is based on the doctrine given by Charles H.Dow in 1984, in the Wall street Journal.

Which of the following is not a trend in Dow Theory?

  1. Technical trend

  2. Primary trend

  3. Intermediate trend

  4. Short term trend


Correct Option: A
Explanation:

There is no concept of technical trend in the Dow Theory.

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