IC89 Exam Mock Test
Q1.Which risk is attributable to factors that affect all businesses like interest rate changes, inflation, political changes? |
a) Diversifiable risk |
b) Non-diversifiable risk |
c) Portfolio risk |
d) None of these |
Q2.What is the price of one country's currency in terms of another country, which is determined in the Foreign Exchange market? |
a) Spot transaction |
b) Portfolio management |
c) Exchange rate |
d) Technical analysis |
Q3.____ also means working capital, which is excess of current assets, over current liabilities. |
a) Budget |
b) Funds |
c) Sources |
d) Cash |
Q4.Which funds generally employ diverse sometimes complex investment strategies and invest and trade in securities having diverse risks or complex products, including listed and unlisted derivatives? |
a) Debt funds |
b) Infrastructure funds |
c) Hedge funds |
d) Equity funds |
Q5.Which is a financial instrument or security, which derives its value from the value of underlying entities such as an asset, index, or interest rate-it has no intrinsic value in itself? |
a) Derivaties |
b) Speculation |
c) Rate |
d) Forward |
Q6.Which of the following risks arises due to inflation or rise in prices leading to rising in costs of production, lower margins, wage rises, and profit squeezing? |
a) Market risk |
b) Interest rate risk |
c) Social or Regulatory risk |
d) Purchasing power risk |
Q7.What is a cheaper source of funds compared to shares because of the terms-fixed rate of interest, and tax advantage? |
a) Equity shares |
b) Cross border capital |
c) Debentures |
d) None of these |
Q8.The Bombay Stock Exchange(BSE) Ltd. Was established in which year? |
a) 1845 |
b) 1855 |
c) 1865 |
d) 1875 |
Q9.Calculate the Rate of return given by Share B? |
a) 25% |
b) 35% |
c) 45% |
d) 55% |
Q10.Which insurance policy is designed primarily to provide a living benefit and secondarily to provide life insurance protection? |
a) Term insurance |
b) Endowment policy |
c) Joint life policy |
d) Pension plans |