Question Answer Correct

answer
If owners equity is 90,000 and liabilities is Rs.50,000, 140000 Correct
find the total asset.
40000
100000
50000
Acquiring loan from the bank is an example for Cash flow from investment activities
Cash from financial activities Correct
Cash from operating activities
None of the above
Prepaid expense is an Asset Correct
Liabilities
Owners equity
None of these
Pick the odd one out Debentures
Bonds
Long term securities
Treasury bills Correct
Expand PPF Public Provident Fund Correct
Private Provident Fund
Public Procurement Fund
None of the above
Inventory turnover ratio is a relationship between Cost of goods purchased and cost of average
______. inventory.
Cost of goods sold and cost of average inventory. Correct
Cost of goods sold and cost of average inventory,
and cost of goods purchased and cost of average
inventory.
None of the options is correct.
Custom duty comes under which types of tax in India? Direct Tax
Indirect Tax Correct
Provisional Tax
None of the options is correct.
Overdraft facility available in PMJDY account Up to Rs 1,000

Up to Rs 1,00,000
 Up to Rs 10,000

Up to Rs 50,000 Correct
Which of the following is the most riskier avenue of Stock Correct
investment ?
Bonds
Debentures
Treasury bills
Primary objectives of investment are Growth
..................................
Income
Hybrid
All of these
What is the maximum age of joining APY [Atal Pension 40 years Correct
Yojana]?
60 years
50 years
45 year
Expand PAN Permanent Account Number Correct
Personal Account Number
Permanent Adhaar Number
None of the option is right
Which of the following investment is suitable for long Treasury bills
term goals?
Commercial paper
Government securities
Bonds Correct
Cash, goods, or assets invested by the proprietor in the Profit
business for earning profit is called
Capital Correct
Fixed assets
None of these
Financial statement include Profit and loss account
Trading account
Balance sheet
All of these
Return on PPF is exempt from tax TRUE Correct
FALSE
Tax levied on Long term capital gains 10 Correct
15
 20
25
....….... issues currency notes in India RBI Correct
SEBI
Ministry of Finance
Central government
Debentures can be converted into shares TRUE Correct
FALSE
......... is the custodian of foreign exchange reserve in RBI Correct
India.
SEBI
FEMA
Central government
Which scheme was introduced by central government Sukanya samruddi scheme Correct
under the campaign Beti padao Beti bachao
Vidyasiri
Ujjwala
Women welfare scheme
NPS is Subscribed by ? Any Indian Resident citizen
Any Indian Non Resident citizen
Any Indian Overseas citizen
All of these
What is an ideal current ratio? 01:02 Correct
02:01
03:01
03:02
ELSS stands for
Equity linked Savings Scheme Correct
Exceptional Liquid & Safe Scheme
Enterprise Linked Social Security
All of these
Who has voting rights? Equity share holders Correct
Preference share holders
Debenture holders
All of these
........ is the key element to be considered for Inflation Correct
determining the future value of goal.
Deflation
Interest rates
None of the option is right
Who is the present governor of RBI? Shashikanta Das Correct
 Urjit Patel
Raghuram Rajan
Y.V Reddy
An ability to convert the securities into cash easily and Scalability
quickly known as
Liquidity Correct
Minimal risk
None of the option

Which of the following is/are not a Acceptance of Deposit

function of Banks?

Giving Loans

Agency and Utility Services

Facilitating import of goods Correct

1. Expand NRO account Non-Resident Rupee (Ordinary) Account

Nil Rupee Ordinary Account

Non-Resident Ordinary account Correct

Non-Resident Ordinant Account

1. FCNR account stands for Foreign Currency Non-Resident account Correct

Foreign Currency Non-Russian Account

Foreign Currency National Account

Foreign Currency Namibian Account

1. NRE account stands for Non-Russian Rubel External Account

Non-Resident Rand External Account

Non-Resident Rupee External Account Correct

Non-Resident Rupay External Account

1. Who can Open NRE account? NRI Correct

Anyone

Indian

Resident Indian

1. Who can open NRO account? Resident

Non Resident

American only

NRI and Resident Before becoming and NRI Correct

1. Minimum Balance required to be No Minimum balance Correct

maintained in PMJDY account?

1000

100

500

Accident Insurance Cover available for 100000

PMJDY account after 28-08-2018

200000 Correct

250000

500000

________ is the percentage of a bank’s Statutory Liquidity Ratio (SLR)

total deposits that it needs to maintain as
liquid cash.

Current Ratio

Cash Reserve Ratio (CRR) Correct

Liquidity Ratio

What is Bank Rate? Percentage of a bank’s total deposits that needs to be maintain as liquid
cash
 Minimum reserve required to be maintained by banks

Central bank’s Lending Rate Correct

Commercial Bank lending rate

What is Repo Rate? Percentage of a bank’s total deposits that needs to be maintain as liquid
cash

Minimum reserve required to be maintained by banks

Central bank’s Lending Rate with security Correct

Commercial Bank lending rate

Who are stakeholders of company? Person or group who have Vested Interest in company Correct

Person or group who do not have Vested Interest in company

Share holders

Account Holders

What is the purpose of Preparing Income Ascertain Profit

Statement?

Ascertain Loss

Ascertain Profit and Loss Correct

Ascertain Operating Leverage

ASSETS = Liabilities +_________ Shareholders fund Correct

Equity

Debt

Current liabilities

Shareholders fund =___________ Equity + reserves and surplus+ retained earnings- debit balance Correct
in Profit and Loss account

Assets + liabilities

Fixed Assets + Current Assets

Total Assets+ Capital Employed

Retained Earnings = _____ Earning after tax – Dividend Correct

Earning before tax – Dividend

EBIT- INTEREST

Assets – Liabilities

Earning After Tax= ______________ EBITDA – INTEREST - TAXES - DEPRECIATION – AMORTISATION Correct

EBITDA +INTEREST + TAXES +DEPRECIATION +AMORTISATION

EBT-INTEREST

EBIT- AMORTISATION

Which of the following is the good 3 lakhs required after 2 years to meet household expense Correct
example of financial plan?

4lakhs required

Amount Required for Higher Education

Rs 4 lakh Required for Surgery

____________ is a technique used to Compounding

calculate the present value of the future
cash flows.

Discounting Correct

______ is a technique used to calculate Compounding Correct

the future value of the present cash
flows.

Discounting

The _______ of the organisation consists micro environment Correct

of those elements which are controllable
by the management.

macro environmemt

political environment

social environment
-------- is used in the review of a Trend Analysis
company’s financial statements over
multiple periods.

Horizontal Analysis Correct

Vertical Analysis

Market Analysis

Net Margin Ratio = Net Profit/ Total sales Correct

____________

Net Sales

Gross Sales

Average Inventory

Liquid Ratio = __________/ Current Current Assets

Liabilities

Liquid Assets Correct

Capital Assets

Net Assets

You require Rs. 25 lakhs after five years Rs 36.7375 lakh Correct
for the college admission for a child. How
much is the future value of this goal?
Assume rate of inflation is 8% p.a

Rs 44.08 lakh

Rs 27 Lakh

Rs 16.55 Lakh

Debt Equity Ratio = Total Long-Term Equity Share Capital

Debt/ _____________

Shareholders Funds Correct

Total Sales

Total Assets
Investment horizon, from a financial goal True Correct
perspective, can be short-term, medium
term or long term. True or False?

False

Net worth of a person is the difference True Correct

between the values of assets and the
outstanding loan liabilities. True or False?

False

. You require Rs. 30 lakhs after three Rs.24.16 lakhs

years as down pay- ment for a house.
What will be the future value of this goal,
assuming a rate of inflation of 6.5% p.a.?

Rs. 20 lakhs

Rs. 36.23 lakhs Correct

Rs. 16.55 lakhs

. _______ is the term used to describe the Financial Planning

future needs of an individual that require
funding.

Financial Objective

Financial Goal Correct

Goal Value

_______ represent the amount of money Loan

that the business owes to the other
parties.

Borrowings

Liabilities Correct

Capital

______ resources owned by a business Assets Correct

with the purpose of using them for
generating future profits.
 Business Resources

Land and Buildings

Personal Property

_______ is defined as the amount of Savings

money that an individual or household
has to spend or save after income taxes
have been deducted.

Unspent Income

Income After Tax

Disposable Personal Income Correct

_______ is a strong feeling, craving or Desire

demand of a person to possess some
things.

Want Correct

Demand

Need

_______ is the rate of increase in prices Attrition

over a given period of time.

Inflation Correct

Inflamation

Devaluation

_______ refers to age, language, lifestyle, Demographic factors Correct

income distribution, cultural differences,
etc.

Natural and physical factors

Social and cultural factors

Political and legal factors

Income tax is one of the examples of Direct Tax Correct

______.

Indirect Tax

_____ measures the monetary value of Production Capacity

final goods and services —that is, those
that are bought by the final user—
produced in a country in a given period of
time.

Gross Domestic Product Correct

Per Capita Income

Gross Profit

___________ refers to an individual’s Income

unspent earnings

Earnings

Savings Correct

Investment

______ refers to the money that a person Income Correct

or entity receives in exchange for their
labour or products.

Revenue

Commission

Savings

_______ is the rate at which commercial Base Rate

banks give interest to the savings account
holders on their balances.

Bank Rate

Savings Deposit Rate Correct

Repo Rate

_________ is the minimum rate set by Base Rate Correct

the Reserve Bank of India below which
banks are not allowed to lend to its
customers.

Bank Rate

Repo Rate

Interest Rate

_______ is the rate at which the central Interest Rate

bank of a country (Reserve Bank of India
in case of India) lends money to com-
mercial banks in the event of any shortfall
of funds

Repo Rate Correct

Loan Interest reRate

Base Rate

_______ refers to the minimum reserve Statutory Liquidity Ratio (SLR) Correct
requirement that needs to be maintained
by commercial banks in the nation

Cash Reserve Ratio (CRR)

Minimum Reserve Ratio

Liquidity Ratio

What is the compound interest (CI) on Rs. 33275

25,000 for 3 years at 10% per annum
compounded annually?

8275 Correct

7500

2500

If you invest Rs.5,00,000/- at an interest 9

rate of 9% p.a. compounded annually,
how many years will it take for the
investment to double?
 2

8 Correct

Which of the following is not an example Payment of Wages/salary

of business expense?

Factory /Office lease/ rent payment

Payment made to vendors

Tuition Fees of child Correct

Revenue Expense means Expenditure that does not create any asset Correct

Expenditure that creates an asset

Long term expense

Non-Recurring Expense

Capital Expenditure means Expenditure that does not create any asset

Expenditure that creates an asset Correct

Recurring Expense

Short Term Expense

Savings = ___________ Income – Expense Correct

Sales – profit

Expense – Income

Assets – Liabilities

Which of the following is not one of the Land

factors of production?

Labor

Factory Correct

Entrepreneurship/Organization
What is time value of money? The money available in present time is worth more than same Correct
amount in Future

The money available in future is worth more than Money available today

Depreciation

Appreciation

Future cash inflows are discounted by a Discount Rate Correct

relevant rate to reach their present value.
The rate is known as ________.

Compound Rate

Base Rate

Repo Rate

Present cash inflows are increased at a Discount Rate

relevant rate to reach their future value.
The rate is called as _______.

Compound Rate Correct

Base Rate

Repo Rate

Expand CAGR Compounded Average Growth Rate

Compounded Annual Growth Rate Correct

Commuted Annual Growth Rate

Commission Annual Growth Rate

Which of the Following is not a macro Demographic and Technology

environmental factor affecting
investment decision?

Natural and Physical factors

Political, legal and Economic Factor

Financial Goal and Their timing Correct

Age, language, lifestyle, cultural Demographic Factors Correct
differences etc are ______.

Economic Factors

Natural Factors

Political Factors

Innovation, automation, internet facilities Demographic Factors

are __________.

Economic Factors

Natural Factors

Technology Factors Correct

Sunlight, Soil , weather, pollution etc are Demographic Factors

_________.

Economic Factors

Natural Factors Correct

Technology Factors

Employment laws, copy right laws, labor Demographic Factors

laws etc are ____.

Economic Factors

Natural Factors

Political and Legal Factors Correct

Life Expectancy, Social status, buying Demographic Factors

habits etc are _____.

Economic Factors

Social and Cultural Factors Correct

Technology Factors

Demand and supply, inflation, interest Demographic Factors

rates are _____.
 Economic Factors Correct

Natural Factors

Technology Factors

Two main indicators of inflation in India Wholesale Price Index and Consumer Price Index Correct
are ____.

Consumer and Seller Price Index

Growth and Wholesale Index

Inflation Index and GDP

DBT stands for _____ Direct Benefit Transfer Correct

Direct Bank Transfer

Direct Benami Transfer

Direct Ban Transfer

_______ regulates interest rates on SEBI

savings bank accounts.

Government of India

State Government

RBI Correct

In which year was the RBI Act enacted? 1934 Correct

1947

1950

1981

______ are structured financial Audit Report

representations of the financial position,
performance, and cash flows of an
enterprise.

Financial Statements Correct

 Financial Report

Progress Report

_____ ratio helps to ascertain the Current Ratio

soundness of the long-term financial
position of the concern.

Liquidity Ratio

Debt Equity Ratio Correct

Return on Equity Ratio

Investment made in listed equity stocks Better liquidity Correct

provided for______________

Guaranteed capital appreciation

Safety of capital

All of the above

In investments, ELSS for Equity Linked Saving Scheme Correct

Exceptional Liquid & Safe Scheme

Enterprise Linked Social Security

All of the above

Sukanya Samriddhi Account(SSA) can be 18 years

opened by the guardian in the name of
girl child below the age of

21 years

1 year

10 years Correct

What is the maximum that can be Rs 1,50,000 Correct

deposited under Sukanya Samriddhi
Accounts in a financial year?

Rs.1,00,000

Rs.50,000/-

Rs.25,000/-

PMJDY was launched by- Ramnath Kovind

Rajnath Singh

Smriti Irani

Narendra Modi Correct

What does PMVVY stand for, in the Pradhan Mantri Varsha Vandana Yojana
context of pension schemes for senior
citizens?

Pradhan Mantri Vaya Vandana Yojana Correct

Pradhan Mantri Varshik Vandana Yojana

Pradhan Mantri Vishwas Vandana Yojana

The Sovereign Gold bonds were 2001

introduced by government in the year

2020

2015 Correct

2022

An individual under PMJDY scheme can True Correct

only exist this scheme after reaching the
age of 60 years . True or False?

False

What is the minimum joining age for Atal 10 years

Pension Yojana?

18 years Correct

20 years
 21 years

What is the maximum joining age for Atal 40 years Correct

Pension Yojana?

55 years

60 years

70 years

When you invest in equity shares on the Primary market

stock exchange, which of these market
are you dealing with ?

Secondary market Correct

Tertiary Market

Commodity market

The act of spreading your investments to Divestment

various asset class in order to reduce the
exposure level to any one is
called_______

Diversification Correct

Division of labour

Directional trade

The risk profile of an investor who is Aggressive Correct

willing to accept significant risks to
maximize potential returns over long
term and is aware that she/he may lose
significant part of capital is___________

Conservative

Moderately conservative

Moderately

The risk profile of an Investor's top Aggressive

priority is safety of capital and he/she is
willing to accept minimal risk and hence
receive minimum or low returns is called

Conservative Correct

Moderately conservative

Moderately

The distribution of an investor's portfolio Variance

between different assets classes is called

Portfolio Management

Cost allocation

Assets allocation Correct

Systematic risk comes from the influence True Correct

of external factors on external factors on
an organisation . True or false?

False

The most simplistic risk profiling thumb True Correct

rule is to have as much debt in the
portfolio, as the number of years of age.
True or False?

False

What is Capital Market? Market in which securities are bought and sold.

A financial market in which long-term debt or equity-backed Correct

securities are bought and sold.

Entrepreneurs in one country copy an existing market.

A market structure is defined by a large number of small firms

competing against each other.

Who controls the Capital Market in India? SEBI Correct

NABARD

RBI

SBI
 In which Market debt and stocks are Money Market
traded and maturity period is more than a
year?

Share Market

Short Term Market

Capital Market Correct

What are Primary Markets? The amount the seller receives following the sale of an asset
after all costs and expenses are deducted.

The value of the assets of the Company or the value of the

assets being disposed of, determined without regard to any
liabilities associated with such assets.

Where investors buy and sell securities they already own.

Market in which new Securities are issued by the Corporations Correct

to raise funds

What is a Secondary Market? The amount the seller receives following the sale of an asset
after all costs and expenses are deducted.

Where securities are traded by investors Correct

The value of the assets of the Company or the value of the

assets been disposed of, determined without regard to any
liabilities associated with such assets.

None of the above

In the primary market, the initial time Initial Public Offering Correct
given offers to be public, in financial
exchange is considered as

Trade

Share

Issuance Offering

Stock exchange is known as __________ Primary market

market for securities.
 Secondary market

Capital market Correct

None of the above

Which of the following are the Call money

instruments of money market

Certificate of deposits

Commercial Papers

All of the above Correct

What is the full form of NEAT? National Economic Assisted Treaty

National Economic Advisory Team

National Exchange for Automated Trading Correct

National Exchange of Automated Transmission

Which of these is not a capital market Equity

instrument?

Bonds

Debentures

T- bill Correct

NSDL stands for National Security Defence Lieutenant

National Stock Derivative Limited

National Securities Depository Limited Correct

National Securities Development Limited

Which of these are characteristic of OTC Contract can be customised

market?

Trade are bilaterally entered between the counterparties

Counterparty risk is higher compared to Exchange traded

contracts
 All of the above Correct

Which of these markets allows trading of Global market

securities with less than one year of
maturity?

Money market Correct

Capital market

Transaction market

Which of the below does not have Initial Public Offering

anything to do with a stock exchange?

Net Asset Value

Legal Processes Outsourcing Correct

National Stock Exchange

Risk appetite generally ___________ Increases Correct

when the number of earning family
members increases

Decreases

There is no correlation between risk appetite and number of

earning family members.

Does not change

Which of these is/are term(s) used in RSI

Technical Analysis ?

ADX

Candle Stick

All of the above Correct

According to Oxford Dictionary " To invest To buy property Correct

" means

To sell property

Business
 Trade

Short term investment goals based on Current consumer habit Correct

Demand

Eye on your ideal future

Fiscal policy

Long term goal for investing with Current consumer habit

Demand

Eye on your ideal future Correct

Fiscal policy

SSY stands for Shakthi Swaraj Yojana

Sukanya Samriddhi Yojana Correct

Seva Samriddhi Yojana

None of the above

Sukanya Samriddhi Yojana Scheme was 2022

launched in the year

2018

2015 Correct

2008

Sukanya Samriddhi Yojana Scheme was True Correct

launched with an aim to encourage the
parents to secure the future for their
daughter's

False

NSC Stands for National Savings Company

National Savings Certificate Correct

National Scheme Certificate

 Net Saving Certificate

Only residents of India are eligible to True Correct

invest in NSC

False

The interest rate of NSC changes every True Correct

year.

False

SGBs refer to government- based True Correct

securities.

False

In PPF ,one can claim tax deductions up to True

Rs. 2,00,000 under section 80C of Income
Tax Act.

False Correct

APY is a social security scheme launched Government of India Correct

by

Government of Maharashtra

Government of Karnataka

Trade Union

The two main equity investment options Debentures and Bonds

are

Debtors and Bills receivable

Reserve and Surplus

Equity shares and Equity mutual funds Correct

The money pooled in by a large number CEO

of investors is what makes up a Mutual
Fund. This fund is managed by a

Professional fund manager Correct

 Finance manager

General Manager

speculator is a person who evaluates the performance of the company

___________________

who uses his own funds only

who is willing to take high risk for high returns Correct

who considers here says and market behaviours

Dividends are paid________________. monthly.

quarterly.

semi-annually.

yearly. Correct

______means a combination of financial Portfolio Correct

assets and physical assets.

Group

Investment

All

Higher _______ is associated with greater Return

probability of higher return

Risk Correct

Investment

All

_____risks is associated with low High

potential returns.

Top

Low Correct

Medium
An investor invests in assets known as a Securities

Block of Assets

Portfolio Correct

None of the above

Investments would score high only if Real estate

there is a protection to

Preferred stock

Government bonds Correct

Common stock

A collection of assets in which an investor Block of Assets

invests is known as a ______.

Portfolio Correct

Securities

All of the above

Place where trades of securities such as Primary market

stocks & bonds takes place:

Secondary market

Stock market

Securities market Correct

Intermediaries in primary market (new Merchant bankers

issue market) are:

Underwriters

Bankers to issue

All of the above Correct

What is the function of stock exchange? Safety

Liquidity
 Speculation

All of the above Correct

New company can issue shares at a True

premium.

False Correct

When a company make public issue of Private placement

shares for the very first time it is referred
to as:

Offer for sale

Initial Public Offer Correct

Right issue

NSE Stands for: National Society Estate

Nation Stock Exchange

National Stock Exchange Correct

National security Exchange

What is the full form of Demat? Dematerialisation Correct

Demand

Depository

None of the above

The terms ‘Bull’ and ‘Bear’ are associated Banking

with________

Stock market Correct

Insurance

Internal Business

BSE Stands for Bombay Stock Exchange Correct

Block Securities Exchange

 Balanced Share Exchange

None of the above

In case of Fundamental Analysis, what Equity, Investments, Capital

does EIC stand for?

Economy, Industry, Company Correct

Entrepreneur, Institution, Corporation

Economy, Investment, Company

The three importance financial True Correct

statements used in Fundamental Analysis
are Balance Sheet, Profit & Loss account
and cash flow statement. True or False?

False

Risk seeker investors are ready to take True Correct

risk even if the return for taking that risk
is not sufficient enough. True or False?

False

Which of the following scheme launched National Pension Scheme

by the government of India for workers in
the unorganised sector

Public Provident Fund

Atal Pension Yojana Correct

Prime Minister Vaya Vandana Yojana

Which Scheme was launched to provide Pradhan Mantri Jan Dhan Yojana Correct
basic banking services to poor and needy
section of our society

Sukanya Samriddhi Yojana

Prime Minister Vaya Vandana Yojana

National Pension Scheme

Which of these is an Investment scheme Pradhan Mantri Jan Dhan Yojana
is meant for the senior citizens offer the
guaranteed return of around 7.4% p.a.

Sukanya Samriddhi Yojana

Prime Minister Vaya Vandana Yojana Correct

National Pension Scheme

Purchasing shares of a company in the Equity Investment Correct

stock market is an

Debt Investment

Money Market Investment

Capital market Investment

“Income with Capital Preservation” is Growth

generally given by ___________
Investment Objective.

Hybrid Correct

Income

Liquidity

Which of these must be a secondary Income

objective of Investment in general

Hybrid

Growth

Tax Saving Correct

______________ is the decision that Strategic Asset Allocation Correct

comes out of the risk profile of the
individual.

Tactical Asset Allocation

both

None
 Strategic Asset Allocation
______________ is the decision that
comes out of the calls on the likely
behaviour of the market

Tactical Asset Allocation Correct

Both

None

In stock market what does “Bulls” The overall impact for rise in prices of stock Correct
indicate.

The overall impact for fall in prices of stock

The overall impact for constant in prices of stock

The overall impact for change in prices of stock

In stock market what does “Bears” The overall impact for rise in prices of stock
indicate.

The overall impact for fall in prices of stock Correct

The overall impact for constant in prices of stock

The overall impact for change in prices of stock

T-Bills are an example of Money Market Securities Correct

Capital Market Securities

Conservative Market Securities

Aggressive Market Securities

G-sec’s are traded in Money Market

Capital Market Correct

Conservative Market

Aggressive Market

Choose the odd one out T-Bills

 Certificate of Deposits

Bonds Correct

Commercial papers

Choose the odd one out Equity

G-Sec’s

Corporate bonds

Commercial papers Correct

When you invest in equity shares through Primary Market Correct

rights issue, which of these market are
you dealing with?

Secondary Market

Tertiary Market

Commodity Market

When you invest in equity shares through Primary Market Correct

IPO, which of these market are you
dealing with?

Secondary Market

Tertiary Market

Commodity Market

Who facilitates capital raising activities Merchant Bankers Correct

for their clients which include
corporations, government and
institutions etc.

Brokers

Clearing House

Custodian

Financial institution that provides clearing Merchant Bankers

and settlement services for financial and
commodities derivatives and securities
transactions.

Brokers

Clearing House Correct

Custodian

In general, technical analysts does not Price trends

look at the following broad types of
indicators

Oscillators

Moving averages

Income statements of past years Correct

The analysis of the macro -economy Economic Analysis Correct

termed as

Company Analysis

Industry Analysis

Portfolio Analysis

Analysis of company and its product is Economic Analysis

known as

Company Analysis Correct

Industry Analysis

Portfolio Analysis

Limitations of Mutual Funds are Lack of portfolio control and choice Correct

Well Regulated and controlled

Experise of fund mangers

None of these

In Mutual Funds 'Subscribers' are Investors who commit to investing in a financial instruement Correct
 Mediator or agent between investors and mutual funds houses

A person who oversees the activities of the mutual fund

A person responsible for day-to-day aspects of accounting

In Mutual Funds 'Registrar and Transfer Investors who commit to investing in a financial instruement
Agent' are

Mediator or agent between investors and mutual funds houses Correct

A person who oversees the activities of the mutual fund

A person responsible for day-to-day aspects of accounting

In Mutual Funds 'Fund Manager' are Investors who commit to investing in a financial instruement

Mediator or agent between investors and mutual funds houses

A person who oversees the activities of the mutual fund Correct

A person responsible for day-to-day aspects of accounting

In Mutual Funds 'Fund Accountants' are Investors who commit to investing in a financial instruement

Mediator or agent between investors and mutual funds houses

A person who oversees the activities of the mutual fund

A person responsible for day-to-day aspects of accounting Correct

In Mutual Fund Industry sponsors are like Customers

the _______ of a company

Owners

Promoters Correct

Managers

Identify advantages of Mutual Funds Lack of cost controll

Not Well regulated and controlled

Expertise of fund managers Correct

Lack of portfolio control and choice

Equity Linked Savings Scheme (ELSS) are True Correct
tax savings scheme.True or False?

False

The Mutual Fund scheme that has fixed Open-ended schemes

Maturity period is called as

Interval Schemes

Close-ended schemes Correct

Passive Funds

___________- funds invests in a Open-ended schemes

particular sector of the economy such as
banking,technology,pharmaceuticals etc.

Interval Schemes

Close-ended schemes

Sectoral Funds Correct

__________ are Mutual Fund schemes ETF

that invest in the units of other schemes
of the same mutual fund or other mutual
fund

Fund of funds Correct

Hybrid schemes

Sectoral Funds

____________ refers to the value of each ETF

unit of the scheme

Fund of funds

Net Asset Value Correct

Portfolio

NAV=Unit-holders funds in the scheme ÷ Scheme expenses

___________
 Dividend Income

No.of outstanding units Correct

Valuation losses

Using the concept of ___________ one Benchmark Correct

can do relative comparision viz, how did a
scheme perform vis-a-vis its benchmark
or peer group

Risk-Adjusted return

Alternative approach

Valuation gains

Equity Scheme primarily invests in _____ Fixed income securities

instruments.

Equity Correct

Debt scheme

Sectoral

Debt scheme invest in ____ securities Fixed income securities

Equity

Debt scheme Correct

Sectoral

An_______ is a marketable security that ETF Correct

tracks an index,a commodity,bonds, or a
basket of assets like an index fund

Fund of funds

Net Asset Value

Portfolio

Sharpes ratio uses _______ as a measure Standard Deviation Correct

of risk
 Beta

Alpha

Tracking error

Treynors ratio uses _______ as a measure Standard Deviation

of risk

Beta Correct

Alpha

Tracking error

Risk Premium is the differnce between True Correct

the risk-free rate of return and the return
earned by scheme.True or False?

False

The difference between an index funds Standard Deviation

return and the marhet return is

Beta

Alpha

Tracking error Correct

An approch to evaluating performance of ETF

the fund manager is through
___________

Fund of funds

Net Asset Value

Risk reward relationship Correct

________ measures the performance of Standard Deviation

the investment in comparision to suitable
market

Beta

Alpha Correct
 Tracking error

__________ is the indicative of out- Positive Alpha Correct

performance by the fund manager

Negetove Alpha

Standard Deviation

Tracking error

______ might indicate under- Positive Alpha

performance

Negetive Alpha Correct

Standard Deviation

Tracking error

_______ is based on Caoital Asset Pricing Standard Deviation

Model (CAPM)

Beta Correct

Alpha

Tracking error

_________ helps us compare the returns Simple Return

of two diffrerent time periods

Net value

Current Price

Annualization Correct

Sharpe ratio= (Rs Minus Rf) ÷ Standard Deviation Correct

___________

Beta

Alpha

Tracking error
Treynors ratio = (Rs Minus Rf) ÷ Standard Deviation
___________

Beta Correct

Alpha

Tracking error

These funds have a fixed maturity date. Open ended scheme

Which scheme are we referring to?

Close ended scheme Correct

Both open and closes ended scheme

None of these

ETF Stands for Exchange Traded Fund Correct

Exchange Traded Finance

Exchange Taxable Finance

Earning Traded Fund

FOF stands for Fund of Funds Correct

Finance of Finance

Fund on Funds

Finance on Finance

__________ refers tothe value of each Net Asset Value Correct

unit of scheme

Net Present Value

Gross Value

Gross Profit

The trustees of the mutual fund hold the True

property of the fund for the benefit of
sponsors. True or False?
 False Correct

Simple return = (( Later value - Initial Value Correct

____________) ×100 ) / Initial Value

Present Value

Net Present Value

Net Asset Value

Simple return = (( ______ - Initial Value) Later value Correct

×100 ) / Initial Value

Present Value

Net Present Value

Net Asset Value

Simple return = (( Later value - Initial Initial Value Correct

Value) ×100 ) / ____________

Present Value

Net Present Value

Net Asset Value

Simple return = (( Later value - Initial 10

Value) ×______ ) /Initial Value

50

100 Correct

1000

__________ return = (( Later value - Simple Return Correct

Initial Value) ×______ ) /Initial Value

Annualised Return

Initial Return

None of these
___________= (Rs Minus Rf) ÷ Standard Sharpe Ratio Correct
Deviation

Treynor Ratio

Beta

Alpha

____________= (Rs Minus Rf) ÷ Beta Sharpe Ratio

Treynor Ratio Correct

Beta

Alpha

There are ______ Kinds of risk in investing 1

in equities

2 Correct

Two Kinds of risk in investing in equities Systamatic Risk (A)

are

Non-Systamatic Risk (B)

Both A & B Correct

None of these

Identify the SEBI Norms regarding Mutual funds are not permited to promise any returns, unless
representation of returns by Mutual its an assured return scheme
Funds in India

Assured returns scheme call for a guarantor who is named in

the offer document.

Advertisement code is prescribed by SEBI

All of these Correct

Sharpe Ratio = ( _____ Minus Rf) ÷ Rs Correct

Standard Deviation

Rd

Re

Rf

Treynor Ratio= (____Minus Rf) ÷ Beta Rs Correct

Rd

Re

Rf

Treynor Ratio= (Rs Minus ___) ÷ Beta Rs

Rd

Re

Rf Correct

The SEBI (Investment Advisers) Mutual fund investments

Regulations, 2013, pertain to:

Stock market trading

Investment advisory services Correct

Banking regulations

The terms of engagement between a Income tax regulations

financial advisor and a client should
comply with:

Insurance policies

SEBI (Investment Advisers) Regulations, 2013 Correct

Financial market trends

What are the four elements of personal Income, savings, investments, and debts
finance that financial planning helps to
understand?
 Income, expenses, assets, and liabilities Correct

Salary, budget, stocks, and loans

Revenue, spending, properties, and mortgages

What is the purpose of financial planning? To maximize income and minimize expenses

To understand the relationship between income and expenses

To meet current and future financial needs effectively Correct

To eliminate all liabilities and acquire assets

How does financial planning help By reducing income and increasing expenses
individuals?

By eliminating all assets and liabilities

By maximizing income and minimizing expenses

By ensuring all current and future needs are met effectively Correct

How does financial planning help By reducing income and increasing expenses
individuals?

By eliminating all assets and liabilities

By maximizing income and minimizing expenses

By ensuring all current and future needs are met effectively Correct

What is the purpose of a monthly To save money for retirement

budget?

To compare income and expenses for a specific period Correct

To increase discretionary spending

To track investment returns

What is the purpose of a personal or To restrict spending and limit expenses

household budget?

To track income and expenses for financial planning Correct

To save money for a rainy day

 To invest in building wealth

Which regulations of SEBI are applicable SEBI Listing Obligations and Disclosure Requirements (SEBI LODR)
for advisory ser- vices on investments? Regulations, 2015

SEBI Issue of Capital and Disclosure Requirements (SEBI ICDR) Regulations,

2009

SEBI Investment Advisers Regulations, 2013 Correct

None of these

Reviewing and monitoring the financial True

planning recommendations is not a step
in the financial planning process. True or
False?

False Correct

What is the importance of being honest It helps in restricting unnecessary spending

about income and expenses when making
a budget?

It allows for accurate tracking of financial habits Correct

It ensures a balance between income and expenses

It helps in planning for large purchases

How does a budget provide flexibility in By restricting spending in all areas equally
spending?

By allowing for more spending in some areas if expenses are Correct

reduced in others

By encouraging excessive spending in discretionary categories

By limiting savings and investments

Which of the following is NOT a common Rent or mortgage payments

expense category in a personal budget?

Insurance premiums

Entertainment and dining out

Salary and wages Correct

How can a budget help in identifying the By tracking income and expenses accurately Correct
financial gap?

By restricting spending on discretionary items

By increasing savings and investments

By planning for large purchases

What is the purpose of a "rainy day" fund To save money for vacations or luxury purchases
mentioned in the material?

To have extra funds available for emergencies or unexpected Correct

expenses

To invest in high-risk ventures for potential higher returns

To donate to charitable organizations

How can a budget contribute to building By reducing income and increasing expenses
wealth?

By increasing discretionary spending on luxury items

By saving and investing surplus income Correct

By avoiding budgeting altogether