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Quiz 1

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

Which among the following investment avenues does not offer income on a regular basis?

a)

Real Estate

b)

Physical Gold

c)

Stocks

d)

Debentures

2.

Which of the following asset categories can also be purchased for consumption purposes apart from investment?

a)

Real Estate

b)

Stocks

c)

Bonds

d)

Debentures

3.

The purchasing power of currency changes on account of which of the following?

a)

Asset Allocation

b)

Compound Interest

c)

Inflation

d)

Diversification

4.

What is real rate of return?

a)

Returns that an investor gets after payment of all expenses

b)

Returns that an investor gets after taxes

c)

Returns that an investor gets after adjusting the risks

d)

Returns that an investor gets after adjusting inflation

5.

Which of these is not a role of SEBI?

a)

To protect interests of investors

b)

To promote the development of securities market

c)

To provide Mutual Fund Services and Statements

d)

To regulate the securities market

6.

Public Provident Funds, Debt Mutual Funds are type of which categories?

a)

Equity

b)

Fixed Income

c)

Real Estate / Infrastructure

d)

Commodities

7.

The transparency levels in mutual funds are very low. State whether true or false.

a)

True

b)

False

8.

Each mutual fund scheme must have a stated investment objective. State whether true or false.

a)

True

b)

False

9.

Which of the following regulates the banking system and money market in India?

a)

Pension Fund Regulatory and Development Authority of India (PFRDA)

b)

Securities and Exchange Board of India (SEBI)

c)

Insurance Regulatory and Development Authority of India (IRDAI)

d)

Reserve Bank of India (RBI)

10.

Who is responsible to provide information and insights about mutual funds in India?

a)

Computer Age Management Services (CAMS)

b)

Securities and Exchange Board of India (SEBI)

c)

Association of Mutual Funds in India (AMFI)

d)

National Institute of Securities Market (NISM)

11.

One can invest in Paddy (Basmati) as an investor

a)

True

b)

False

12.

A stock can give return to an investor in the form of

a)

Capital Gain Only

b)

Dividend Only

c)

Both Capital Gain and Dividend

d)

Either Capital Gain OR Dividend

13.

Which of the following regulates Mutual Funds in India

a)

Securities and Exchange Board of India (SEBI)

b)

Association of Mutual Funds in India (AMFI)

c)

Asset Management Companies (AMC)

d)

Board of Trustees of Mutual Funds

14.

From an investment perspective, gold is popularly also known as

a)

Better than dollar

b)

Safe Haven

c)

Forever Positive

d)

Easy to hide

15.

Investing in Zinc is a part of which of the following commodity?

a)

Bullion

b)

Base Metals

c)

Energy

d)

Agri-commodities

16.

One can invest in the following spices using the commodities market - Pepper, Turmeric, Jeera, Coriander

a)

True

b)

False

17.

Which of the following should not be considered before investing?

a)

Investment Objectives

b)

Investment Strategy

c)

Asset Allocation Pattern

d)

Past Returns of the Investment

18.

Mutual Funds are majorly subject to which of the following risks?

a)

Inflation Risk

b)

Credit Risk

c)

Liquidity Risk

d)

Market Risk

19.

Diversification helps spread the risk of loss and probability of losing everything can be significantly reduced.

a)

True

b)

False

20.

Which of the following is not an advantage of mutual funds?

a)

Economies of Scale

b)

Affordable Portfolio Diversification

c)

Portfolio Customization

d)

Transparency

21.

Investing in US Dollars is amazing as it is inflation proof.

a)

Yes

b)

No

22.

What is commonly referred to as the eighth wonder of the world?

a)

Stock Market

b)

Gold Bonds

c)

Provident Funds

d)

Compound Interest

23.

Land/Real Estate Prices only go up.

a)

True

b)

False

24.

One can trade Art work in commodity markets.

a)

Yes

b)

No

c)

Yes, but not in India

25.

The only way to invest in gold is by buying them from a jewellery store in form of ornaments, coins or biscuits.

a)

True

b)

False

26.

Which of the following is not mandatory to invest in stocks/mutual funds?

a)

PAN Card

b)

Demat Account

c)

Passport

d)

KYC with Central Registry

27.

The long term goal of a young investor is to build a corpus that is adequate to serve his income needs after retirement. The portfolio when constructed, should have a higher allocation to

a)

Debt

b)

Cash Equivalents

c)

Equity

d)

Employee Provident Fund

28.

Inflation does which of the following to retirement planning?

a)

Reduces the periodic savings required

b)

Reduces the retirement corpus required

c)

Increases the retirement corpus required

d)

Increases the value of corpus created

29.

Increase in returns offered by Fixed Deposits makes investments in Equity Market

a)

More Attractive

b)

Less Attractive

c)

Does not impact

30.

Which of the following investment is unlikely to provide inflation-hedged returns?

a)

Gold

b)

Real Estate

c)

Commodities

d)

Bonds

31.

A retired person is depending on a monthly annuity income to finance his expenses. The greatest risk faced by his cash flows is

a)

Business Risk

b)

Exchange Rate Risk

c)

Interest Rate Risk

d)

Inflation Risk

32.

An investor who seeks a high level of return and is willing to bear the risks of such investments is likely to be recommended

a)

Aggressive Portfolio

b)

Conservative Portfolio

c)

Moderate Portfolio

33.

Which of the following is a solution to manage inadequacy of retirement corpus closer to retirement?

a)

Invest in riskier assets

b)

Postpone retirement

c)

Reduce periodic savings

d)

Increase corpus target

34.

Which of the following is not a Indian broking firm?

a)

SBI Life

b)

Anand Rathi

c)

Motilal Oswal

d)

Zerodha

35.

Which of the following names is not a popular investor?

a)

Rakesh Jhunjhunwala

b)

Raghuram Rajan

c)

Warren Buffet

d)

Radhakishan Damani