1. What is a bad credit loan?

a. A loan with principal, which doesn't have

to be repaid until maturity
b. Money borrowed from a financial
institution with bad reputation.
c. A loan designed for people or businesses
with bad credit.
2. What is a bridge loan?

a. A short-term loan made until a longer term

financing is obtained.
b. Adjustable Rate Mortgage
c. A commercial loan for building a bridge.
3. What does a bear market mean?

a. A market characterized by falling prices for

securities.
b. A market characterized by rising prices for
securities.
c. Volatile market.
4. What does ARM stand for?

a. Amortization Rate Mortgage

b. Adjustable Rate Mortgage
c. Adjustable Reverse Mortgage
 5. What is Arbitrage?

a. Buying stock options.

b. Tax – loss selling.
c. Buying something of value and the selling it
for a higher price.
6. What is a Balloon loan?

a. Fixed - interest loan.

b. A loan for which one significant lump sum
payment is due at maturity.
c. A short term financing.
7. What is Assumable Mortgage?

a. A fixed-rate mortgage.
b. Adjustable Rate Mortgage
c. A mortgage that can be transferred to
another borrower.
8.The strategy of investing in different kinds
of assets to reduce risk is called:
a. Diversification
b. Bi-polar investing
c. Dollar cost averaging
 9. How often is the Net Asset Value
calculated?

a. Every working day

b. Once a week
c. Twice a day
10. The interest rate the Federal Reserve
charges banks for short-term loans is the:

a. Discount rate
b. Prime rate
c. Periodic rate
11. Which was the first private mutual fund
company in India?

a. Kothari Pioneer
b. Morgan Stanley
c. UTI Mutual Fund
12. What are the funds that are invested in
both debt and equity?

a. Liquid Funds
b. Floating rate funds
c. Balanced funds
13. What kind of risk does Beta measure?

a. Volatility of a particular stock

b. Stability of a Nation’s monetary system
c. Financial worthiness of a company.
14. Many financial advisers recommend
DRIPS, which are

a. Depreciating real income portfolios

b. Debt reduction incentive programs
c. Dividend reinvestment plans
15. Which bond may be exchanged for
common stock of the same corporation?

a. Exchangeable bond
b. Convertible bond
c. Warrant
16. What are retained earnings?

a. An indication of company’s liquidity

b. The cumulative earnings of the company
after dividends
c. Cash in bank
17. The discount rate at which two
projects have identical          is referred to
as Fisher's rate of intersection.

a. Present values
b. Net present values
c. IRR
18. Protective covenants are:

a. to protect the interests of the company.

b. to protect shareholders
c. to protect bondholders
19. Treasury stock is ________

a. Common stock issued by U.S Govt.

b. Common stock that has been repurchased
and is being held by the issuing company.
c. Preferred stock issued by the U.S.
government
20. In proper capital budget analysis, we
evaluate incremental_______

a. Earnings
b. Cash flow
c. Operating Profit