Investment Basics Quiz

What is the primary function of the primary market?

• To regulate the stock exchanges

• To provide a platform for buying and selling existing securities

• To promote investor education

• To raise long-term funds through fresh issue of securities

Which of the following is NOT a major player in the secondary market?

• Individual investors

• Mutual funds

• Stockbrokers

• Underwriters

What does SEBI stand for?

• Securities and Equity Board of India

• Securities Exchange Board of India

• Securities and Exchange Bureau of India

• Stock Exchange Board of India

What is the main objective of an investment?

• To avoid risks

• To receive positive returns in the future

• To save money

• To maintain liquidity

Which of the following is a characteristic of active investments?

• Focuses on long-term holding

• Requires less time and knowledge

• Involves frequent trading of securities

• Lower risk compared to passive investments

What is liquidity in terms of investment?

• The potential for high returns

• The duration of the investment

• The ability to sell an investment without loss

• The safety of the principal amount

Which of the following is considered a financial asset?

• Gold and silver

• Residential house

• Equity shares

• Agricultural land

What is the risk associated with inflation?

• Delay in repayment

• Loss of capital

• Decrease in the value of money over time

• Market volatility

What is the primary purpose of mutual funds?

• To provide insurance coverage

• To pool money from investors for collective investment

• To trade in real estate

• To offer fixed deposits

Which of the following is a type of mutual fund scheme?

• Fixed deposit scheme

• Public provident fund

• Insurance policy

• Growth fund