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INVESTMENT BASIC -X

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

5.What does investment stand for?

a)

A. approximate increase in the national stocks

b)

B.             the application of funds for the products and services employed for the production process

c)

C.             use of funds for the assets with the purpose to earn returns

d)

D.             applying money to buy a flat or a house

2.

4.Investors agree to invest in high- risk investments if only

a)

A) There are any true speculations

b)

B) The predicted return is satisfactory for taking a risk

c)

C) There are no safe options except for holding cash

d)

D) The return is short

3.

3.An investor invests in assets known as a

a)

A) Securities

b)

B) Block of Assets

c)

C) Portfolio

d)

D) None of the above

4.

2.Which one of the following is shown first when the assets are arranged in the order of their liquidity?

a)

A) Investment

b)

B) Cash in hand

c)

C) Debtors

d)

D) None of the above

5.

1.If there is an increase in interest rates than the fixed interest rate of the corporate bond will

a)

A) Return to the corporation

b)

B) Decrease in value

c)

C) Remain unchanged

d)

D) Increase in value

6.

6.The ultimate concern of Financial Management is:

a)

A.             to arrange the funds

b)

B.             effective management of all the business

c)

C.             receiving the maximum profit

d)

D. to acquire and utilize every aspect of financial resources in order to maintain the firm activities

7.

7.The finance manager’s role is to:

a)

A.             ensures that the funds are properly utilized

b)

B.             maintains the financial health

c)

C.             effective supervision of capital

d)

D.             obtains capital assets of the organization

8.

8. In the share market, the market value of any share is decided by:

a)

A.             shareholders

b)

B.             the government

c)

C.             investment market

d)

D.the respective companies

9.

9.The ultimate purpose of Financial management is:

a)

A.             to get a maximum return

b)

B.             to increase the wealth of owners

c)

C.             to have a maximum risk factor

d)

D.             to get a maximum profit

10.

10. Which one is/are financial assets?

a)

A.             bonds

b)

B.             machines

c)

C.             stocks

d)

D.             both a and c

11.

11.The process of holding an investment in shares in electronic form is _________.

a)

A.             Dematerialisation

b)

B.             Demutualisation

c)

C.             Speculation

d)

D.             None of the above

12.

12.The __ market assists existing investors in selling their stocks.

a)

A.              Primary market

b)

B.              Commodity market

c)

C.               Capital market

d)

D.               Secondary market

13.

13.Amount of money paid to a company’s shareholders on a regular basis.

a)

A.             Bonds

b)

B.             Profit

c)

C.             Cashback

d)

D.              Dividends

14.

14.A form of savings account that shows you own a piece of a company and have a claim on its assets and earnings

a)

A.             Dividend

b)

B.              Share

c)

C.               Stock

d)

D. none of the above

15.

16. The two types of investment alternatives are

a)

A.             Bank and post office deposit

b)

B.              Shares and debentures

c)

C.               Financial assets & Real Assets

d)

A.              None of these