Professional Documents
Culture Documents
NCFM Beginners
NCFM Beginners
Correct answers are shown in green. Attempted answers, if wrong, are in red.
Q2
Q3
(b) In case of the normal public issue the demand for an issue is known at
the close of the issue.
(c) In case of offer of shares through normal public issue price at which
securities will be allotted
is known to an investor in advance .
(d) None of the above
(e) I am not attempting the question
At 8% annual inflation rate, an item costing Rs. 100 today, would cost Rs.
_______ after one year. [ 3 Marks ]
(a) Rs. 108
Q7
Q8
The Margin which takes care that all daily losses must be met by the investor by
Q9 depositing of further collateral by the close of business, the following day is
known as _________. [ 1 Mark ]
Q11
(b) 2.77%
(c) 10%
(d) 4%
(e) I am not attempting the question
Earnings Per Share (EPS) is calculated by _________. [ 2 Marks ]
(a) Gross Profit / No. of equity shareholders
Q12
Q13
(b) Stated
(c) Both of the above
(d) None of the above
(e) I am not attempting the question
___________ is a good indicator of the stock market behaviour. [ 1 Mark ]
(a) Reliance
Q15
(b) TISCO
(c) Infosys
(d) Nifty index
(e) I am not attempting the question
Market Capitalisation is _____________. [ 2 Marks ]
(a) Value of shares of the company held by Foreign Investors
Q16
Q17
(b) 10000
(c) 9000
(d) 9090.9
(e) I am not attempting the question
What factor/s affect the interest rate? [ 3 Marks ]
Q18
Q20
Q21
Q22
Q23
(a) 30
(b) 100
(c) 500
(d) 50
(e) I am not attempting the question
Which of the following is TRUE about Primary Markets? [ 2 Marks ]
(a) Primary Markets are markets where commodities are sold.
(b) Primary Market is the place where public can buy and sell securities
Q24 from one another.
(c) Primary Markets refer to the mobilization of funds from the public
by corporates through the
issue of shares / debentures.
(d) Primary Markets are places where only short term instruments are traded.
(e) I am not attempting the question
The future value of a Rs.10,000 investment done today, which gives an annual
rate of return of 20% per annum, after one year should be ____________. [ 3
Marks ]
Q25
Q26
Q27
(a) Investment in Mutual funds leads to diversification of holdings.
(b) Mutual funds are managed by professional fund managers.
(c) Mutual Funds regularly provide investors with information on the value
of their investments.
(d) None of the above
(e) I am not attempting the question
Funds which invest only in the stocks comprising an index and aim to give
returns commensurate with the index returns are called _________. [ 2 Marks ]
(a) Index Funds
Q28
Q29
(b) FALSE
(c) Dormant Funds
(d) None of the above
(e) I am not attempting the question
At 12% annual inflation rate, an item costing Rs. 100 today, would cost Rs.
_______ after one year. [ 3 Marks ]
(a) Rs. 114
Q30
Q31
Q33
(b) ADRs may be used in public or private markets inside or outside US.
(c) ADRs do not eliminate the currency risk associated with an investment in
a non-U.S. company.
(d) An ADR is a U.S. dollar denominated form of equity ownership in a
non-U.S. company.
(e) I am not attempting the question
What are the segments of Securities Market? [ 1 Mark ]
(a) Primary market and Secondary market
Q34
Q35
(a) Equity
(b) Fixed Deposit
(c) Bonds
(d) Treasury Bill
(e) I am not attempting the question
Q37
(b) The revenues and expenses of the company at a particular point of time.
(c) The financial position of the company at a particular point of time.
(d) None of the above
(e) I am not attempting the question
Which instrument among these have historically shown to give the highest
returns when invested over long periods? [ 3 Marks ]
(a) Debentures
Q38
(b) Equity
(c) Fixed Deposit
(d) Bank Deposit
(e) I am not attempting the question
The lenders use ______________ ratio to assess debt servicing capacity of a
firm. [ 2 Marks ]
(a) Interest Coverage ratio
Q39
Q40
Q42
Q43
Q44
The future value of a Rs.12,000 investment made today, which gives an annual
rate of return of 10% per annum, after one year should be _________. [ 3
Marks ]
Q45
Q46
Q47
(b) the legal structure of an exchange whereby the ownership and the
management at the
exchange are segregated from one another
(c) the legal structure of an exchange whereby the ownership, the
management and the trading
rights at the exchange vests in one person
(d) None of the above
(e) I am not attempting the question
Which securities can an investor invest in? [ 1 Mark ]
(a) Shares
Q48
(b) Debentures
(c) Mutual Funds
(d) All of the above
(e) I am not attempting the question
Q49
_____________ gives the buyer the right, but not the obligation to sell a given
quantity of underlying asset at a given price on or before a given future date. [ 1
Mark ]
(a) Put Option
(b) Forward
(c) Future
(d) Call Option
(e) I am not attempting the question
The holders of which instrument are members of the company and have voting
rights? [ 3 Marks ]
(a) Treasury Bill
Q50