Amity Campus

Uttar Pradesh
India 201303

ASSIGNMENTS
PROGRAM: MFC
SEMESTER-III
Subject Name
Study COUNTRY
Roll Number (Reg.No.)
Student Name

:
:
:
:

INSTRUCTIONS
a) Students are required to submit all three assignment sets.
ASSIGNMENT
Assignment A
Assignment B
Assignment C

DETAILS
Five Subjective Questions
Three Subjective Questions + Case Study
Objective or one line Questions

MARKS
10
10
10

b)
c)
d)
e)

Total weightage given to these assignments is 30%. OR 30 Marks

All assignments are to be completed as typed in word/pdf.
All questions are required to be attempted.
All the three assignments are to be completed by due dates and need to be
submitted for evaluation by Amity University.
f) The students have to attached a scan signature in the form.

Signature :
Date
:

_________________________________
_________________________________

( ) Tick mark in front of the assignments submitted

Assignment
Assignment B
Assignment C
A

S e c u r i t y An a l y s i s
A s s i g n m e n t A:
Q . 1 W h a t i s m e a n t b y F u n d a m e n t a l An a l y s i s ? H o w d o e s i t d i f f e r
f r o m t e c h n i c a l An a l y s i s ?
Fundamental analysis aims to establish a cause and effect relationship
between market movements and economic developments. In that sense,
i t i s d i f f e r e n t f r o m t e c h n i c a l a n a l ys i s w h i c h r e g a r d s t h e p r i c e a c t i o n a s
t h e b e g i n n i n g a n d e n d o f t r a d i n g . W h i l e t e c h n i c a l a n a l ys t s g e n e r a l l y
argue that the price action reflects all information available to the
market, fundamental analysts seek to identify imbalances and errors
in the market that may offer profit opportunities. Unlike the technical
t r a d e r , t h e f u n d a m e n t a l t r a d e r i s a l w a ys s k e p t i c a l o f t h e p r i c e a c t i o n ,
and seeks alternative explanations to the wisdom of the market in
e v a l u a t i n g p r i c e t r e n d s . Tec h n i c a l a n a l y s i s a n d f u n d a m e n t a l a n a l y s i s
a r e t h e t w o m a i n s c h o o l s o f t h o u g h t i n t h e f i n a n c i a l m a r k e t s . As w e ' v e
m e n t i o n e d , t e c h n i c a l a n a l ys i s l o o k s a t t h e p r i c e m o v e m e n t o f a s e c u r i t y
and uses this data to predict its future price movements. Fundamental
analysis, on the other hand, looks at economic factors, known as
fundamentals. Let's get into the details of how these two approaches
d i f f e r, t h e c r i t i c i s m s a g a i n s t t e c h n i c a l a n a l y s i s a n d h o w t e c h n i c a l a n d
f u n d a m e n t a l a n a l ys i s c a n b e u s e d t o g e t h e r t o a n a l yz e s e c u r i t i e s
The Differences
Charts vs. Financial Statements
A t t h e m o s t b a s i c l e v e l , a t e c h n i c a l a n a l ys t a p p r o a c h e s a s e c u r i t y f r o m
t h e c h a r t s , w h i l e a f u n d a m e n t a l a n a l ys t s t a r t s w i t h t h e f i n a n c i a l
s t a t e m e n t s . ( F o r f u r t h e r r e a d i n g , s e e I n t r o d u c t i o n To F u n d a m e n t a l
A n a l ys i s a n d Ad v a n c e d F i n a n c i a l S t a t e m e n t An a l y s i s . )
By looking at the balance sheet, cash flow statement and income

s t a t e m e n t , a f u n d a m e n t a l a n a l ys t t r i e s t o d e t e r m i n e a c o m p a n y ' s v a l u e .
I n f i n a n c i a l t e r m s , a n a n a l ys t a t t e m p t s t o m e a s u r e a c o m p a n y' s i n t r i n s i c
value. In this approach, investment decisions are fairly easy to make if the price of a stock trades below its intrinsic value, it's a good
investment.

Al t h o u g h

this

is

an

oversimplification

(fundamental

analysis goes beyond just the financial statements) for the purposes of
this tutorial, this simple tenet holds true.
Tec h n i c a l t r a d e r s , o n t h e o t h e r h a n d , b e l i e v e t h e r e i s n o r e a s o n t o
analyze a company's fundamentals because these are all accounted for
i n t h e s t o c k ' s p r i c e . Tec h n i c i a n s b e l i e v e t h a t a l l t h e i n f o r m a t i o n t h e y
need about a stock can be found in its charts
Time Horizon
Fundamental

a n a l ys i s

takes

relatively

long-term

approach

to

a n a l y z i n g t h e m a r k e t c o m p a r e d t o t e c h n i c a l a n a l ys i s . W h i l e t e c h n i c a l
a n a l y s i s c a n b e u s e d o n a t i m e f r a m e o f w e e k s , d a ys o r e v e n m i n u t e s ,
f u n d a m e n t a l a n a l ys i s o f t e n l o o k s a t d a t a o v e r a n u m b e r o f ye a r s .
The different timeframes that these two approaches use is a result of
t h e n a t u r e o f t h e i n v e s t i n g s t yl e t o w h i c h t h e y e a c h a d h e r e . I t c a n t a k e
a l o n g t i m e f o r a c o m p a n y' s v a l u e t o b e r e f l e c t e d i n t h e m a r k e t , s o
w h e n a f u n d a m e n t a l a n a l ys t e s t i m a t e s i n t r i n s i c v a l u e , a g a i n i s n o t
realized until the stock's market price rises to its "correct" value. This
t yp e o f i n v e s t i n g i s c a l l e d v a l u e i n v e s t i n g a n d a s s u m e s t h a t t h e s h o r t term market is wrong, but that the price of a particular stock will
correct itself over the long run. This "long run" can represent a
timeframe of as long as several years, in some cases
Furthermore, the numbers that a fundamentalist analyzes are only
released over long periods of time. Financial statements are filed
quarterly and changes in earnings per share don't emerge on a daily
basis

like

price

and

volume

information.

Al s o

remember

that

fundamentals

are

the

actual

characteristics

of

business.

New

management can't implement sweeping changes overnight and it takes

time to create new products, marketing campaigns, supply chains, etc.
P a r t o f t h e r e a s o n t h a t f u n d a m e n t a l a n a l ys t s u s e a l o n g - t e r m t i m e f r a m e ,
therefore, is because the data they use to analyze a stock is generated
much more slowly than the price and volume data used by technical
analysts
Tra d i n g Ver s u s I n v e s t i n g
Not

only

is

technical

analysis

more

short

term

in

nature

than

f u n d a m e n t a l a n a l ys i s , b u t t h e g o a l s o f a p u r c h a s e ( o r s a l e ) o f a s t o c k
a r e u s u a l l y d i f f e r e n t f o r e a c h a p p r o a c h . I n g e n e r a l , t e c h n i c a l a n a l ys i s
is used for a trade, whereas fundamental analysis is used to make an
investment. Investors buy assets they believe can increase in value,
while traders buy assets they believe they can sell to somebody else at
a greater price. The line between a trade and an investment can be
b l u r r y, b u t i t d o e s c h a r a c t e r i z e a d i f f e r e n c e b e t w e e n t h e t w o s c h o o l s .

Q.2 Define risk & distinguish between Systematic & Unsystematic

risk
Risk implies future uncertainty about deviation from expected earnings
or expected outcome. Risk measures the uncertainty that an investor is
willing to take to realize a gain from an investment. Risks are of
different

t yp e s

and

originate

from

different

situations.

We

have

liquidity risk, sovereign risk, insurance risk, business risk, default

r i s k , e t c . Var i o u s r i s k s o r i g i n a t e d u e t o t h e u n c e r t a i n t y a r i s i n g o u t o f
various factors that influence an investment or a situation. Systematic
risk refers to the risk which affects the whole stock market and

t h e r e f o r e i t c a n n o t b e r e d u c e d o r d i v e r s i f i e d a w a y. F o r e x a m p l e a n y
global turmoil will affect the whole stock market and not any single
stock, similarly any change in the interest rates affect the whole market
t h o u g h s o m e s e c t o r s a r e m o r e a f f e c t e d t h e n o t h e r s . T h i s t yp e o f r i s k i s
called non diversifiable risk because no amount of diversification can
reduce this risk
U n s y s t e m a t i c r i s k i s t h e e x t e n t o f v a r i a b i l i t y i n t h e s t o c k o r s e c u r i t y s
r e t u r n o n a c c o u n t o f f a c t o r s w h i c h a r e u n i q u e t o a c o m p a n y. F o r
example it may be possible that management of a company may be
p o o r, o r t h e r e m a y b e s t r i k e o f w o r k e r s w h i c h l e a d s t o l o s s e s . S i n c e
t h e s e f a c t o r s a f f e c t o n l y o n e c o m p a n y, t h i s t yp e o f r i s k c a n b e
diversified away by investing in more than one company because each
company is different and therefore this risk is also called diversifiable
risk.
Q.3 Explain the Whitebeck Kisor m odel?
Q . 4 W h a t i s M a c a u l a y s D u r a t i o n ?
The original idea of duration of a bond was the brainchild of Frederick
M a c a u l a y, a C a n a d i a n - b o r n e c o n o m i s t , p u b l i s h e d i n t h e e a r l y 2 0 t h
c e n t u r y.

M a c a u l a y s i d e a w a s t o c o m p u t e t h e w e i g h t e d a v e r a g e t i m e

until a bondholder would receive the cash flows from a bond, where the
weight for each time period is the present value of the cash flow to be
received at that time, divided by the present value of all cash flows
( w h i c h i s t o d a y s p r i c e o n t h e b o n d ) .

Because Macaulay duration is a

m e a s u r e o f t i m e , t h e u n i t s o f M a c a u l a y d u r a t i o n a r e t y p i c a l l y y e a r s . As
a n e x a m p l e o f M a c a u l a y d u r a t i o n , i m a g i n e a 5 - ye a r , a n n u a l - p a y, 6 %
coupon, $1,000 par bond, when the current interest rate (i.e., the
b o n d s Y T M ) i s a t 4 % . T h e p r i c e o f t h e b o n d i s :
price = $601.04 + $601.042 + $601.043 + $601.044 + $1,0601.045=
$57.69 + $55.47 + $53.34 + $51.29 + $871.24= $1,089.04

The Macaulay duration of this bond is:

DMac

$57.69$1,089.04(1

$53.34$1,089.04(3

year)

ye a r s )

$55.47$1,089.04(2

$51.29$1,089.04(4

ye a r s ) +
years)+

$ 8 7 1 . 2 4 $ 1 , 0 8 9 . 0 4 ( 5 y e a r s ) = 0 . 0 5 y e a r s + 0 . 1 0 ye a r s + 0 . 1 5 ye a r s + 0 . 1 9
years + 4.00 years= 4.49 years
The formula for Macaulay duration is usually written:
DMac = ni=1[PV(CFi) ti]ni=1PV(CFi)
where:
CFi: cash flow i
ti: time until receipt of cash flow i
T h e a d v a n t a g e t o u n d e r s t a n d i n g M a c a u l a y d u r a t i o n i s t h a t i t s e a s y t o
see how particular changes in the input variables affect it, and the best
part is that all of those changes in input variables affect modified
d u r a t i o n a n d e f f e c t i v e d u r a t i o n t h e s a m e w a y ! T h u s , i f yo u u n d e r s t a n d
Macaulay duration, youll automatically have a better understanding of
modified duration and effective duration.

L e t s c o n s i d e r t h e i n p u t

variables:
Time to Maturity: as the time to maturity increases, the Macaulay
d u r a t i o n i n c r e a s e s . You h a v e t o w a i t l o n g e r t o r e c e i v e yo u r m o n e y o n a
3 0 - y e a r b o n d t h a n o n a 1 0 - ye a r b o n d .
Coupon Rate: as the coupon rate increases, the Macaulay duration
decreases.

If the coupon rate is 0%, for example, then the Macaulay

duration is the same as the maturity of the bond, because you get 100%
of the cash flow at maturity: the Macaulay duration of a zero-coupon
b o n d i s t h e t i m e t o m a t u r i t y. I f t h e c o u p o n i s h i g h e r t h a n 0 % , t h e n yo u
g e t s o m e o f y o u r m o n e y b a c k b e f o r e m a t u r i t y, s o t h e w e i g h t e d a v e r a g e
t i m e u n t i l yo u g e t y o u r m o n e y b a c k i s l e s s t h a n t h e t i m e t o m a t u r i t y :

the coupon increases, and the Macaulay duration decreases.

Yie l d t o M a t u r i t y : a s t h e Y T M i n c r e a s e s , t h e M a c a u l a y d u r a t i o n
decreases.

This one takes a little more thought.

The key here is that

when interest rates rise, near-term payments (which are discounted for
a short period of time) will have their present value decrease a little,
but long-term payments (which are discounted for a long period of
time) will have their present decrease a lot more; thus, as interest rates
rise, the long-term payments represent a smaller percentage of the
present value, and the near-term payments represent a larger portion of
the present value: the duration decreases.

For example, consider the

bond above:
At a 4% YTM,
The PV of the first payment represents $57.69$1,089.04 = 5.3% of the
price
The PV of the last payment represents $871.24$1,089.04 = 80.0% of the
price
At a 5% YTM,
The PV of the first payment represents $57.14$1,043.29 = 5.5% of the
price
The PV of the last payment represents $830.54$1,043.29 = 79.6% of the
price
Q.5 Explain Efficient market Hypothesis?
The efficient markets hypothesis is a theory developed by Professor
Eugene Fama in the 1960s.
The theory states that the prices of traded assets (such as company
shares and bonds) take into account all available information. In other
words, the price of a traded asset is never undervalued or overvalued
b u t t h e p r i c e r e p r e s e n t s e x a c t l y w h a t i t s w o r t h a t t h a t p o i n t i n t i m e .
The efficient markets hypothesis assumes that markets, such as the

London Stock Exchange (LSE), are efficient so that the prices of all
assets are at a value that takes into account all the information
investors have access to. Therefore it states that no investor can beat
the market by investing in undervalued or overvalued assets because
the prices all represent their fair value at that point in time.
L e t s c l a r i f y t h i s t h e o r y w i t h a n e x a m p l e . L e t s s a y a s o f t w a r e c o m p a n y
trades its shares on a public stock exchange. The shares are currently
p r i c e d a t 2 p e r s h a r e . An i n v e s t o r, D a v i d , b e l i e v e s t h e s h a r e s a r e
undervalued. He saw in the newspaper recently that the software
company has won several large contracts for the future. David believes
t h a t t h e s o f t w a r e c o m p a n y w i l l g r o w i n v a l u e a n d t h i n k s t h e c o m p a n y s
shares are worth more than 2 and decides to invest, thinking he can
beat the market.
T h e e f f i c i e n t m a r k e t s h yp o t h e s i s s t a t e s t h a t i n t h i s s i t u a t i o n D a v i d i s
wrong to think that he can beat the market because the price of the
software company reflects all the available information to investors,
including the recent good news about future contracts

Assignment B
Q.1 Explain bond value theorems?
Q . 2 D e t e r m i n e t h e p r i c e o f R s . 1 , 0 0 0 z e r o c o u p o n b o n d w i t h yi e l d t o
m a t u r i t y o f 1 8 % a n d 1 0 ye a r s t o m a t u r i t y & d e t e r m i n e y i e l d t o m a t u r i t y
of this bond if its price is Rs 220?
Q.3 Explain in detail the Dow Theory and how it is used to determine
the direction of stock market?
Case study:
M r.J o s e w a n t s t o i n v e s t i n b o n d s a s u m o f R s . 1 , 0 0 , 0 0 0 . T h r e e b o n d s a r e
b e i n g e x a m i n e d b y h i m w i t h a h o l d i n g p e r i o d o f t h r e e ye a r s . E a c h b o n d
i s g i v e n AA A r a t i n g b y C r i s i l . I n t h e e c o n o m i c s c e n a r i o , t h e e c o n o m i c
c yc l e i s b e g i n n i n g t o m a t u r e & i n f l a t i o n i s e x p e c t e d t o i n c r e a s e . I n a n
effort to contain the inflation, Reserve Bank of India is moving
t o w a r d s c r e d i t s q u e e z e . M r.J o s e s t a x b r a c k e t i s 5 0 % . T h e d e t a i l s o f t h e
bond are given:

Coupon rate
M a t u r i t y( y e a r s )
Yie l d t o m a t u r i t y
Duration

Bond A
0%
5
11 %
5

Bond B
10%
7
12%
6.58

Bond C
10%
5
11 %
4.68

Q . I f M r.J o s e h a s t o p i c k u p a n y t w o b o n d s w h a t w o u l d b e h i s
choice.What are the reasons you cite for picking up the particular

bonds?
Assignment C (40 multiple choice questions)
Q.1 Duration is the measure of
( a ) Ti m e s t r u c t u r e o f t h e b o n d
(b) Interest rate risk
( c ) Ti m e s t r u c t u r e & m a r k e t r i s k
( d ) Ti m e s t r u c t u r e & t h e i n t e r e s t r a t e r i s k
Q . 2 T h e s t a t i s t i c a l t o o l u s e d t o m e a s u r e a c o m p a n y s r i s k i s
(a) Mean
(b) Mode
( c ) Var i a n c e
(d) Co-variance
Q.3 Interest rate risk occurs when
(a) The market price of bond moves inversely to the prevailing
market interest rate
(b) The variability in yield is due to the market interest rate
fluctuations
(c) There is variability in the coupon interest rates
( d ) Al l
Q.4 Uncontrollable risk of a company is
(a) Labour problem
(b) Increase in loan service charge
(c) Cut in subsidy
( d ) Tec h n o l o g i c a l o b s o l e s c e n c e

Q.5 Conceptual framework of valuation through P/E ratio arises

from
( a ) M u l t i p l e ye a r h o l d i n g m o d e l
(b) Constant growth model
( c ) Two s t a g e g r o w t h m o d e l
(d) Three stage growth model
Q . 6 An i n v e s t o r p u r c h a s e s a s t o c k i n t h e s t o c k m a r k e t . H i s h o l d i n g
period return depends on the
(a) Purchase price of the stock
(b) Selling price of the stock
(c) Dividend paid to the stock
( d ) Al l t h e a b o v e
Q.7 Inter Connected Stock exchange is to interlink
(a) The BSE, NSE & OTCEI
( b ) Al l t h e s t o c k e x c h a n g e s
(c) Fifteen regional stock exchanges
(d) Fourteen regional stock exchanges
Q.8 Over the Counter Exchange of India was started after the role
model of
(a) NASAQ
(b) JASAQ
(c) NASDAQ & JASDAQ
(d) NSE
Q.9 Customer s protection fund is set up
( a ) To p r o t e c t t h e i n v e s t o r s a g a i n s t p r i c e f l u c t u a t i o n s
( b ) To p r o t e c t t h e b r o k e r i n c a s e o f n o n p a y m e n t o f m o n e y b y
investors

( c ) To p r o v i d e i n s u r a n c e t o i n v e s t o r s i n c a s e o f d e f a u l t b y t h e
members
( d ) To p r o t e c t t h e m e m b e r & t h e i n v e s t o r
Q.10 The oldest stock exchange in India is
(a) BSE
(b) NSE
(c) Nifty
(b) ISE
Q . 11 T h e a c c o u n t i n g p e r i o d c y c l e o f N S E i s
( a ) Wed n e s d a y t o n e x t Tu e s d a y
( b ) Tu e s d a y t o n e x t Wed n e s d a y
(c) Monday to next Friday
( d ) Wed n e s d a y t o n e x t Wed n e s d a y
Q.12 Marketability risk of bond is
(a) The market risk which affects all the bonds
( b ) Var i a t i o n i n r e t u r n c a u s e d b y d i f f i c u l t y i n s e l l i n g b o n d s
(c) The failure to pay the agreed value of the bond by the issuer
(d) Both a & b
Q.13 Default risk is lower in
( a ) Tr e a s u r y b i l l s
(b) Government bonds
(c) ICICI Bonds
(d) IDBI bonds
Q.14 The value of bond depends on
(a) The coupon rate
( b ) Yea r s t o m a t u r i t y

( c ) E x p e c t e d yi e l d t o m a t u r i t y
( d ) Al l t h e a b o v e
Q . 1 5 T h e b o n d yi e l d r e m a i n s c o n s t a n t o v e r i t s l i f e a n d t h e d i s c o u n t
or premium amount will decrease
( a ) At a d e c r e a s i n g r a t e a s i t s l i f e g e t s s h o r t e r
( b ) At a d e c r e a s i n g r a t e a s i t s l i f e g e t s l o n g e r
( c ) At a n i n c r e a s i n g r a t e a s i t s l i f e g e t s s h o r t e r
( d ) At a n i n c r e a s i n g r a t e a s i t s l i f e g e t s l o n g e r
Q.16 Investment is the
(a) Net additions made to the national capital stocks
( b ) P e r s o n s c o m m i t m e n t t o b u y a f l a t o r a h o u s e
(c) Employment of funds on assets to earn returns
(d) Employment of funds on goods and services that are used in
production process
Q.17 Speculator is a person
(a) Who evaluates the performance of the company
(b) Who uses his own funds only
(c) Who is willing to take high risk for high return
( d ) W h o c o n s i d e r s h e r e s a ys & m a r k e t b e h a v i o u r s
Q . 1 8 To f r a m e t h e i n v e s t m e n t p o l i c y t h e i n v e s t o r s h o u l d h a v e
(a) Knowledge about the company and the brokers
(b) Investible funds
(c) Knowledge about investment alternatives
(d) Knowledge about the market with funds
Q.19 The main objective of a rational investor is
(a) Maximising returns & minimizing risk

(b) Minimising return & maximizing risk

(c) short term gains
(d) safety of the principal
Q.20 Clearing & settlement operations of the NSE is carried out by
(a) National Security Depository Ltd
(b) National Security Clearing Co-operation
(c) State Bank of India
(d) By the exchange itself
Q.21 In the stock market psychology
(a) Investors forget the past
(b) History repeats itself
(c) More faith in future prediction
(d) Both a &b
Q.22 Gross domestic product is a logical factor to analyse the
economy in picking up a stock because it indicates
(a) Inflation or deflation
(b) The market value of assets
(c) The status of the economy
(d) The condition of the stock market
Q.23 One of the following factors leads the activity of the stock
market
(a) Money supply
(b) Per capita income
(c) Unemployment rate
(d) Manufacturing & trade
Q.24 The fall in interest rate is conducive to the stock market

because
(a) Money may flow from the bond market to stock market
(b) Corporate can borrow at easy terms
(c) Brokers can do business at borrowed funds
(d) Both b & c
Q.25 The growth in book value per share shows the
(a) Rise in the share price
(b) Increase in the physical assets of the form
(c) Increase in the net worth
(d) Growth in reserves
Q.26 The price earnings ratio of a stock reflects
(a) The growth of the company
( b ) T h e m a r k e t m o o d f o r t h e c o m p a n y s s t o c k
(c) The earnings retained and invested in the company
( d ) T h e d i v i d e n d p a i d o u t f o r t h e c o m p a n y s s t o c k
Q . 2 7 N B F C s o f f e r s h i g h e r i n t e r e s t r a t e b e c a u s e o f
(a) the best management funds
(b) the competition amongst NBFCs
(c) the risk involved
(d) the credit rating
Q.28 Open ended schemes are
(a) open for a particular period
(b) have fixed period of maturity
(c) listed in the stock exchanges
(d) open on a continuous basis
Q.29 Interval fund is
(a) Index fund

(b) open fund

(c) a closed end fund
(d) a combination of close & open end fund
Q.30 Index schemes
(a) Returns equal to index returns
(b) reflect the market
(c) are income schemes
(d) are tax saving schemes

Q.31 Stock exchange

(a) helps in the fixation of stock prices
(b) ensure safe & fair dealing
(c) induces good performance by the company
( d ) Al l t h e a b o v e

Q.32 __________ was the grandfather of technical analysis.

A)

Harry Markowitz

B)

Wi l l i a m S h a r p e

C)

Charles Dow

D)

Benjamin Graham

E)

none of the above

Q.33 The goal of the Dow theory is to

A)

identify head and shoulder patterns.

B)

identify breakaway points.

C)

identify resistance levels.

D)

identify support levels.

E)

identify long-term trends.

Q . 3 4 Tec h n i c a l i n d i c a t o r s h e l p
( a ) To f i n d o u t t h e p r e s e n t s t a t e o f t h e s t o c k m a r k e t
( b ) To e s t i m a t e t h e g r o w t h o f s t o c k m a r k e t
( c ) To i n d i c a t e t h e e c o n o m i c a c t i v i t y
( d ) To s h o w t h e d i r e c t i o n o f t h e o v e r a l l m a r k e t
Q.35 The market value of the scrip is determined by
(a) The dividend declared by the company
(b) The present status of the stock market
(c) The number of floating shares
(d) The interaction of demand & supply
Q.36 The negotiable financial investment is different from the nonnegotiable financial investment in terms of
(a) Maturity period
(b) Interest rate
( c ) Tr a n s f e r a b i l i t y
(d) Face value

Q.37 Investment made on a house property is a

(a) Financial investment
(b) Economic investment
(c) Non-negotiable financial investment
(d) Non-financial investment

Q.38 Which one of the following is not a money market security?

( a ) Tr e a s u r y b i l l s
(b) National savings certificate
(c) Certificate of deposit
(d) Commercial paper

Q.39Commercial papers are

(a) Unsecured promissory notes
(b) secured promissory notes
(c) Sold at a premium
(d) issued for a period of 1-2 years

Q.40 This particular scheme helps in deferring the tax payment

(a) Public provident fund
(b) National savings scheme
(c) National savings certificate
(d) Life insurance scheme