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VSC Fundamentals of Investment-I

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Investment in the national income accounts includes which of the following?

a)

a. Purchases of durable equipment and structures

b)

b. Residential construction expenditures

c)

c. Changes automobile sales

d)

d. Both a and b

e)

e. All of the above

2.

Capital Market is a market for

a)

long term assets

b)

short term assets

c)

Medium term assets

d)

none of the above

3.
What are stocks?
a)
Shares of ownership in a corporation.
b)
Shares of trading in a corporation.
c)
Bonds with potential to make money.
d)
Bonds that are traded.
4.
Why do companies issue stocks?
a)
To create and investment opportunity into other businesses.
b)
To increase employee cooperation and an operating level.
c)
To be traded individually
d)
To raise money for economic investment and to fund operating costs.
5.

Financial Investment is the

a)

persons commitment to buy a flat or house

b)

employment of funds in securities to earn returns

c)

employment of funds on assets to earn returns

d)

keeping money in locker

6.

Stock exchange is

a)

Primary market

b)

forex market

c)

spot market

d)

Secondary market

7.

Which of the following is not a financial investment?

a)

Purchase of debenture

b)

Purchase of car

c)

Purchase of machine

d)

Purchase of bond

8.

Which of the following is the activity which finance people are involved?

a)

marketing decision

b)

promotional decision

c)

Investing decision

d)

None of these

9.

The purpose of financial markets is to?

a)

Lower the yield on bonds

b)

Allocate savings efficiently

c)

Control inflation

d)

Increase the price of common stocks

10.

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

a)

Cash in hand

b)

investment in gold

c)

investment in Land

d)

investment in stock market

11.

Which of the following is the function of financial market?

a)

Mobilization of savings

b)

Price fixation

c)

Provide liquidity to financial assets

d)

All of the above

12.

What is the normal positive expectation of an investor?

a)

Gain losses

b)

Generate positive income

c)

Neutral toward the condition of the market

d)

Gain traction of a new market

13.

____________ 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

14.

Economic well being of a person depends on

a)

how much you save

b)

how much you invest

c)

how wisely you invest

d)

none of these

15.

Employment of funds with the aim of achieving additional income is known as____

a)

Speculation

b)

Gambling

c)

Biting

d)

Investment