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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