Multiple choice questions
1.Investment is the _______________
a) Net additions made to the nations capital
stocks
b) Perso’s commitment to buy a flat or a
house
c) Employment of funds on assets to earn
returns
d) Employment of funds on goods and
services that are used in production process
2.Speculator is a person _______________
a) Who evaluates the performance of the
company
b) Who uses his own funds only
c) Who willing to take high risk for high
return
d) Who considers heresays and market
behaviours
3.The stock is ____________
a) Small units of equal value called shares
b) Expressed in terms of money
c) Expressed in terms of number of shares
d) Fully paid up and partly paid up shares
4.The open ended shemes 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
5.The negotiable financial investment is
different from the non negotiable financial
investment in terms of ___________
a) Maturity period
b) Interest rate
c) Transferability
d) Face value
6. Investment made on a house property is a
a) Financial Investment
b) Economic investment
c) non negotiable financial investment
d) Non financial investment
7.Commercial papers are _________
a) Unsecured promissory notes
b) Secured promissory notes
c) Sold at a premium
d) Issued for a period of 1 to 2 years
8. Dow theory was developed to explain ___
a) New York stock market movement
b) The dow jones industrial averages
c) Security market price movement
d) The buy and sell stategy
9.The secondary corrections of the
previous trend is in certain percentage of
the previous fall or rise in price ________
a) 33% to 43%
b) 43% to 53%
c) 33% to 66%
d) 53% to 66%
10. In the bull market _________
a) The stock prices are increasing
b) Each peak is higher than the previous peak
c) Each bottom is higher than the previous
bottom
d) B and c
11. Overbought region indicates ________
a) More shares are sold
b) The supply is more
c) Potential fall in the price level
d) Potential rise in the share price
12. Price earnings ratio of a stock reflects
a) The growth of the company
b) The market mood for the company’s stock
c) The earnings retained and invested in the
company
d) The dividend paid out for the company’s
stock
13. The growth in book value per share
shows the _________
a) Raise in the share price
b) Increase in the physical assets of the firm
c) Increase in the net worth
d) Growth in reserves
14. Gross domestic product is a logical
factor to analyse the economy in picking
up a stock because it indicates _______
a) Inflation or Diflation
b) The market value of Assets
c) The status of the economy
d) The condition of the stock Market
15. Chronological order of Industry life
cycle is ______
a) Maturity stage - Pioneering stage -
Declining stage - Rapid Growth stage
b) Pioneering stage - Rapid Growth stage -
Maturity stage - Declining stage
c) Declining stage - Maturity stage - Rapid
Growth stage - Pioneering stage
d) Rapid Growth stage - Maturity stage -
Pioneering stage - Declining stage