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Finance Quiz

Total questions: 31

Worksheet time: 16mins

Name
Class
Date
1.

The following are participants in the securities markets ______.

a)

lead Manager

b)

underwriters

c)

Debenture Trustees

d)

Venture Capital Funds

e)

all of the above

2.

Which entity provides novation

a)

NSCCL

b)

NSE

c)

NSDL

d)

CDSL

3.

______ deals with issue, allotment and transfer of securities and various

aspects relating to company management.

a)

Companies Act, 1956

b)

Depositories Act, 1996

c)

Capital Issues (Control) Act, 1947

d)

None of the above

4.

______ envisages transfer of ownership of securities electronically by book

entry without making the securities move from person to person.

a)

Companies Act, 1956

b)

Depositories Act, 1996

c)

Capital Issues (Control) Act, 1947

d)

None of the above

5.

A company may purchase its own shares, out of _____.

a)

it’s promoters money

b)

it’s Equity Capital

c)

profits

d)

free reserves

6.

Security Type GS stands for ____ in the WDM Segment of NSE.

a)

GDR Securities

b)

Government Securities

c)

General Securities

d)

none of the above

7.

A company making a public issue of securities has to file a draft prospectus

with ____.

a)

RBI

b)

SEBI

c)

Ministry of Finance

d)

None of the above

8.

______ is a clearing member but not a trading member

a)

clearing members

b)

self clearing member

c)

clearing member

d)

custodian

9.

The market for government securities comprises the securities issued by the

_________

a)

central Govt

b)

state Govt

c)

State sponsored entities

d)

all of the above

10.

Investment is the ___________________

a)

net additions made to the nations capital stocks

b)

persons commitment to buy a flat or house

c)

employment of funds on assets to earn returns

d)

employment of funds on goods and services that are used

11.

speculator is a person ___________________

a)

who evaluates the performance of the company

b)

who uses his own funds only

c)

who is willing to take high risk for high returns

d)

who considers heresays and market behaviours

12.

which one of the following is not a money market securities?

a)

Treasury bills

b)

National savings certificate

c)

Certificate of deposit

d)

Commercial paper

13.

___________ are financial assets

a)

Bonds

b)

Machines

c)

STOCK

d)

A & C

14.

The underwriter has to take up


a)

the fixed portions of the issue capital

b)

the agreed portion of the unsubscribed part

c)

the agreed portion or can refuse if

d)

the unfixed portions of the issue capital

15.

Commercial papers are ____________________

a)

sold at a premium

b)

issued for a period of 1 to 2 years

c)

unsecured promissory notes

d)

secured promissory notes

16.

Most investors are risk-averse which means____________.

a)

they will always invest in the investment with the lowest possible risk.

b)

they will assume more risk only if they are compensated by higher expected return.

c)

they avoid the stock market due to the high degree of risk.

d)

None of the above

17.

Which of the following would be considered a risk-free investment

a)

Gold

b)

Equity in a house.

c)

High-grade corporate bonds.

d)

Treasury bills

18.

Treasury bills are traded in the __________.

a)

money market.

b)

capital market.

c)

government market.

d)

regulated market.

19.

Which of the following is not a characteristic of investments companies?

a)

pooled investing

b)

diversification

c)

managed portfolios

d)

Reduced expenses

20.

35. The ___________ is a window through which the investor can see the company.

a)

A. Syndicate offer.

b)

B. IPO.

c)

C. Prospectus.

d)

D. Shelf rule.

21.

If an investor is attempting to buy a stock that is very volatile, it would be best to use___________.


a)

market order

b)

limit order

c)

stop loss order

d)

contingency order

22.

Which of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?


a)

Demat account.

b)

Federal Depository Insurance Corporation

c)

Securities Exchange Commission.

d)

Depository Trust Company.

23.

. All new issues being offered for public sale are registered with_________________.

a)

SEBI

b)

New Issue Market

c)

Maloney act 1936

d)

securities investor protection act of 1970

24.

____________ is based on tips, rumours and hunches, unplanned and without knowledge of the exact nature of risk

a)

Investment

b)

speculation

c)

Gambling

d)

Arbitrage

25.

4. Buying low and selling high, making a large capital gain is associated with ________

a)

Investment

b)

speculation

c)

Gambling

d)

Arbitrage

26.

Rising of prices and falling of standard of living is arises at the time of

a)

Inflation

b)

Boom Period

c)

Normal Period

d)

Deflation

27.

A combination of various investment products like bonds, shares, securities, mutual funds and so on is called as __________

a)

Portfolio

b)

Investment

c)

speculation

d)

Gambling

28.

The main objective of portfolio is to reduce _______ by diversification.

a)

Return

b)

risk

c)

uncertainty

d)

percentage

29.

How many companies are included in the SENSEX of India?

a)

30

b)

50

c)

111

d)

25

30.

Which of the following is not a credit rating agency?

a)

CRISIL

b)

CARE

c)

NIKKEI

d)

ICRA

31.

The first computerised online stock exchange in India was

a)

NSE

b)

OTCEI

c)

BSE

d)

MCX