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Mock Stock

Total questions: 25

Worksheet time: 9mins

Name
Class
Date
1.

Who regulates stock market exchanges?

a)

RBI

b)

SEBI

c)

IRDA

d)

PFRDA

2.

Beginning to save while you are young is recommended by financial experts because

a)

  you can log in higher interest rates when you buy on credit

b)

the younger years tends to be the highest earning years of one’s life

c)

    The money saved early in life can increase through compounding over a long period of time

3.

Ravi hears about an investment opportunity on the social media page that promises a guaranteed 25% annual investment return every year for the next 5 years. How should ravi react?

a)

1.    Immediately invest

b)

1.    only invest if it is an opportunity in cutting edge technology

c)

1.    ignore the opportunity

4.
What is an IPO?
a)

Initial Public offering

b)

Initial Public Offer

c)

International Public Offer

d)

Investing public offer

5.
If a business wants to raise capital but not create debt, it can
a)
float a bond issue
b)

issue equity stock

c)
borrow money from a commercial bank
d)
borrow money from the government
6.
What is the price at which stock is bought and sold?
a)
Par Value
b)
Stated value
c)
Authorized value
d)
Market value
7.
What ultimately determines the price of a particular stock?
a)

SEBI

b)

Underwriter

c)

Closing price

d)
Supply and Demand
8.

Value investing is about...

a)

investing in undervalued stocks with strong fundamentals

b)

investing in undervalued stocks with weak fundamentals

c)

investing in overvalued stocks with strong fundamentals

d)

investing in overvalued stocks with weak fundamentals

9.

A group of large companies that stockbrokers look at to gauge how the market is doing as a whole.

a)

shareholder

b)

portfolio

c)

industry

d)

index

10.

_______ is an important instrument of short term borrowing by the government.

a)

Debentures

b)

Bonds

c)

Treasury bills

d)

All of the above

11.

Money market deals with _____ instruments.

a)

Long term

b)

Medium term

c)

Short term

d)

All of the above

12.

Which one is the oldest stock exchange?

a)

BSE

b)

NSE

13.

Which currency has the largest weight in deciding the value of Special Drawing Rights?

a)

Chinese Yuan

b)

US Dollar

c)

Euro

d)

Riyadh

14.

Name the company with the most expensive share registered in the

Indian Stock Market.

a)

Reliance

b)

MRF

c)

TCS

d)

HEF

15.

Name the world’s second largest Bank?

a)

SBI

b)

Bank of America

c)

Swiss Bank

d)

China Construction Bank Corporation

16.

What is the term used to describe the measure of how much a stock's price moves up and down?

a)

Spread

b)

Margin

c)

Volatility

d)

Liquidity

17.

Stock exchange is known as __________ market for securities.

a)

Primary

b)

Secondary

c)

Capital

d)

Money

18.

Blue Chip means ___________.

a)

Share guaranteed by the government

b)

Share listed in Stock Exchange

c)

Share giving consistent high rate of return

d)

None of the above

19.

Which of the following is not a speculator in Stock Exchange?

a)

Bull

b)

Bear

c)

Broker

d)

Stag

20.

Which of these factors drives the Sensex to fluctuate?

a)

Government monetary policy

b)

Fiscal policy

c)

Instability in politics

d)

All of these

21.

NIFTY and SENSEX are calculated based on ____________.

a)

Free-Float capitalisation

b)

Market capitalization

c)

Authorized share capital

d)

Paid-up capital

22.

What is the name of the index that represents the top 30 companies listed in the BSE?

a)

A) SENSEX

b)

B) NIFTY 50

c)

C) BSE 100

d)

D) NSE 500

23.

What is the term used to describe the difference between the bid price and the ask price of a stock?

a)

A) Spread

b)

B) Margin

c)

C) Volatility

d)

D) Liquidity

24.

What are the highest and most stable companies stocks called?

a)

Equity stock

b)

Blue Chip stock

c)

Bonds

d)

Growth Stocks

25.

Preferred stock is similar to a bond in the following way:

a)

Preferred stock always contains a maturity date.

b)

Both investments provide a stated income stream.

c)

Both contain a growth factor similar to common stock.

d)

Both provide interest payments.