Investment Management Set 7
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This set of Investment Management Multiple Choice Questions & Answers (MCQs) focuses on Investment Management Set 7
Q1 | Speculators who neither buy nor sell securities in the market ,but still trade on them are called
- wolves
- stags
- lame ducks
- bears
Q2 | ________ securities are generally issued for a fixed period and redeemable by the issuer at the endof that period.
- zero coupon bond
- debt
- equity shares
- none of the above
Q3 | _______ is a document which either creates a debt or acknowledges it.
- zero coupon bond
- debentures
- equity shares
- none of the above
Q4 | __________ instruments are those instruments, which have a maturity period of less than oneyear
- money market
- capital market
- debt market
- none of these
Q5 | G-Secs are issued by the______ on behalf of the Government of India.
- reserve bank of india
- securities and exchange board of india
- ministry of commerce
- all of these
Q6 | ‘Gilt Securities’ are issued by _________.
- reserve bank of india
- securities and exchange board of india
- ministry of commerce
- all of these
Q7 | This is the stock valuation method that uses financial data to predict price movements.
- fundamental analysis
- technical analysis
- company analysis
- none of the above
Q8 | Advance decline line is a ______
- indicator
- pattern
- market indicator
- none of the above
Q9 | This is the level is the level that the technical analyst believes a stock price will not fall below.
- support level
- resistance level
- maximum level
- none of the above
Q10 | This pattern occurs when a stock price drops to a similar price level twice within a few weeks ormonths.
- support level
- cup ad handle
- double bottom
- none of the above
Q11 | Most of such stocks pay dividends and hence investors would like to buy and hold for longperiods. Such a portfolio is called;
- patient portfolio
- aggressive portfolio
- efficient portfolio
- none of the above
Q12 | This portfolio invests in “expensive stocks” that offer big rewards but also carry big risks.
- patient portfolio
- aggressive portfolio
- efficient portfolio
- none of the above
Q13 | A portfolio that provides highest returns at a given level of risk.
- patient portfolio
- aggressive portfolio
- efficient portfolio
- none of the above
Q14 | Each contract is custom designed, and hence is unique in terms of contract size, expiration dateand the asset type and quality.
- forward contract
- future contract
- options
- none of the above
Q15 | These contracts are standardized and hence trade in stock exchanges
- forward contract
- future contract
- options
- none of the above
Q16 | The credit risk of future is __________ than that of forwards:
- lower
- higher
- average
- none of the above
Q17 | The buyer or holder of the option purchases the right from the seller for a consideration called;
- remuneration
- premium
- discount
- none of the above
Q18 | this option give the holder or buyer, the right to buy specified quantity of the underlying asset ata specified price on or before a specified time..
- call option
- put option
- main option
- none of the above
Q19 | This option gives the holder or buyer, the right to sell specified quantity of the underlying asset ata specified price on or before a specified time.
- call option
- put option
- main option
- none of the above
Q20 | ______________is a financial contract, between two or more parties, whose value is derived fromthe future value of an underlying asset.
- forward contract
- future contract
- options
- derivative contract
Q21 | _____________ use derivatives markets to reduce or eliminate the risk associated with price of anasset
- speculator
- arbitragers
- hedgers
- none of these
Q22 | In ____________Derivatives, underlying asset can be commodities.
- share
- rupee
- commodity
- none of these
Q23 | ______________ contract is a one to one bipartite contract, which is to be performed in future atthe terms decided today.
- forward contract
- future contract
- options
- none of the above
Q24 | ____________ contracts are standardized and hence traded in stock exchanges
- forward contract
- future contract
- options
- none of the above
Q25 | No credit risk involved in __________ contract because of the involvement of clearing house.
- forward contract
- future contract
- options
- none of the above