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In what denomination money can be Invested in NSC?
What is minimum amount to invest in NSC?
Senior Citizen Savings Scheme (SCSS) has a maturity period of _____ and extension of _____ is allowed.
Does Infrastructure bond give a government guarantee?
When an investor has a long position in an asset and sells a future of the same underlying this is known as?
Where a GOLD ETF can invest?
Which is more liquid asset?
Which of the following is a small saving scheme?
Public Provident Fund is a _____ year product.
Public Provident Fund has ____ tax status (investment,interest,maturity) .
Investment in PPF is negligible for deduction under section 80C of Income Tax Act.
____ minimum and _____ maximum contribution is a limit to invest in PPF during a financial year.
____ number of maximum contribution in a financial year can be made up to the specified limit.
Who is eligible to open the PPF account?
From when is one eligible to make the withdrawal from PPF Account and for how many times during a year?
Eligibility for loan from PPF is ___.
PPF Account can be extended “n” number of blocks after maturity in each block of 5 years.
PPF Account can be opened in joint name.
National Saving Certificate can be issued for a tenure of either ____ or ____ years.
Interest on NSC is compounded _____.
Non Resident Indians are not eligible to purchase NSC.
Minimum limit of investment in NSC is _____ and the maximum limit of investment is ____.
Investment in NSC are eligible for deduction under section 80C.
NSC are also accepted as collateral for taking loans.
Age limit for opening a senior citizen saving scheme account is ___ years.
Age limit for opening senior citizen saving account in case of an individual retiring on superannuation or otherwise, or under VRS provided account opened within one month of the date of receipt of retirement benefits will be ___.
Maturity term of SCSS is ____. A one-time extension for ____ year(s) is allowed.
Maximum amount of investment in SCSS is ____.
An investor can operate more than one account subject to a maximum amount of 1500000 in a total of all accounts.
____ minimum and ____ maximum investment can be made in Kisan Vikas Patra.
Amount invested in Kisan Vikas Patra becomes ____ in ____ time.
Sovereign Gold Bonds have a maturity of ____ years.
Minimum limit of investment in SGB is____. maximum limit of investment in SGB in case of an individual is ___ and HUF or trust is ____.
The capital gain tax arising on redemption of SGB is exempted.
Government securities are issued by ____.
Minimum investment amount required in government securities is _____.
____ are govt. securities issued by RBI which provide inflation-protected returns to investors.
____ is minimum and _____ is maximum limit of investment in Inflation Index Bond.
Bank FD’s are the safest investment. What is correct regarding this?
Derivatives are typically used for ____.
Types of Option:
“Buy a Call” gives the buyer ____.
“Sell a Call” gives the writer ___.
“Buy a Put” gives the buyer
“Sell a Put” gives the buyer
Buy a Call Profit is ____ and loss is ____.
Buy a Put Profit is ____ and loss is ____.
Sell a Call profit is ___ and loss is ___
Sell a Put profit is ___ and loss is ___
Pay off call ____ and put ____.
Intrinsic Value of call ___ and put ___
In the money means ___.
Out of money means ____.
At the money means ____.
Time Value of an option is ____.
Market Capitalisation =
_____ analysis is based on the premise that fair value of the equity share can be estimated from information about company.
_____ analysis is about looking for clues in the share price itself for its future behaviour.
What are the measures used in valuation of fair value of shares?
Which of the following are ways of issuance of capital in Primary Market?
Private Placement of securities by a listed company is called a ____.
Private Placement of securities by a listed company to a set of institutional investors termed as ____.
Securities are issued to existing investors as on a specific cut-off date, enabling them to buy more securities at a specific price. What type of securities issue is this?
Securities are issued to existing investors as on a specific cut-off date, get an allotment of additional shares without any consideration. What type of securities issue is this?
The Primary Markets are regulated by_____.
The first public offer of shares made by a company is called an _____.
An IPO can be a :
Existing shareholders such as promoters or financial institutions offer a part of their holding to the public investors, it is called _____.
Who decide the price at which the shares will be allotted to investors in a public issue?
The company making a public issue of shares has to file with SEBI a document giving all information of the issuer and the proposed issue such as the operations and finances of the company. This document is called _____.
If the final issue price is not known at the time of filing then an indicative price band for the offer is provided in the prospectus. This document is called _____ as it does not have final price.
_____ is an application for subscription loan issue containing an authorization to the investors’ bank to block the application money in the bank account and release funds only on allotment.
_____ means the bids made at the cut-off price and higher were for a higher number of shares than what was offered, if subscriptions are lower than the offered number of shares, it is _____.
According to Section 67(3) of the Companies Act of 2013, an offer to subscribe to securities is made to less than _____ persons is called private placement of securities.
Qualified Institutional Buyers (QIBs) include:
______is an issuance of fresh shares by a company or an offer for sale by a promoter or promoter group to QIBs to meet the minimum share holding requirement specified by stock exchanges in their listing requirements.
______is where securities once issued are bought and sold between investors.
Which of the following are participants of Secondary Market?
______provides a platform for investors to buy and sell securities from each other in an organized and regulated manner.
If investors buy and sell shares among themselves, such trades are called___.
_____ in an IPO is a short-term investing practice of using borrowed funds to invest with the expectation of making immediate short-term gains from the shares being listed at a premium to the issue price.
The order can be a ‘______’ where the investor specifies the maximum price at which they are willing to buy or the minimum price at which they are willing to sell.
_____ is an instruction to buy or sell at the best price currently available in the market.
_____ is given to limit the loss in a buy or sell trade by specifying a price to execute an opposite trade.
_____ is the system that electronically matches buy and sell orders so that buy orders are executed at the price specified or lower and sell orders at the price specified or higher.
Secondary Market transactions have distinct phases which are:
____ is the process of identifying what is owed to the buyer and seller in a trading transaction.
____ is the mechanism of settling the obligations of counterparties in a trade.
Settlement System in India is ____.
_____completes the settlement by paying funds to sellers and delivering securities to buyers.
Securities are held in dematerialized form in ____.
Secondary markets are regulated under the provisions of
Buyers of equity shares are expected to give funds for their purchase and sellers are expected to deliver the shares they have sold. This is ____.
When the buyer receives the securities and the seller receives the funds for shares sold. This is the _____.
The clearing corporation acts as the counterparty for all trades and settles them without default. To provide such a guarantee, the clearing corporation collects margins from members. These margins comprise of ____ (for capital adequacy) and ____ that vary based on the marked-to-market open position of a member.
____ refers to the settlement mechanism where the trades done on a particular day are settled to a pre-defined cycle.
On Settlement day, if there are any shortages in securities delivered by a member, the member is debited for these securities at valuation price. This is called _____.
Physical delivery of securities given (as against dematerialized delivery) may result in a defective delivery of securities, which are called _____.
____ is a facility provided by members of stock exchanges, it allows investors to take a larger position than what their own resources would allow, thus increasing their profits if their expectation of price movements came true.
____ is a basket of equity shares whose price is weighted by market capitalization and tracked for changes in the price level of the stocks included in it.
These are indices made up of a few large listed shares but serve as a quick barometer of market movement. They are often used as performance benchmarks. It is called____.
____ are indices created to track various industry sectors such as technology, banking, metals, finance, real estate, consumer durables, media, and the like.
____ indicates how much activity took place on a business day in the market as a whole and in each stock.
If there is an abnormal price movement in an index, defined in percentage terms, the exchange can suspend trading. This is called hitting the ____.
Price Earning Ratio =
Trailing P/E =
Forward P/E =
____ tells us how much investor is willing to pay per rupee of earnings.
To determine whether a particular P/E is high or low what are factors to be considered?
Peg Ratio =
____ helps investors determine the degree of reliability of that growth assumption.
If the PEG ratio is _____, it means that the market is valuing stock in accordance with the stock’s estimated EPS growth.
Price to Book Value Ratio =
Dividend Yield =
Stocks with ____ dividend yield appeal to investors who are income-seeking and are adverse to risky investments
Stocks with low PE multiples are seen as ____.
Stocks whose market price is lower than book value are considered ____.
A ______is when buyers are willing to pay higher and higher prices, as the overall optimism for better future performance of stocks is high.
_____ in equity reflect the pessimism, stocks prices fall. Sellers quit in despair, accepting a lower price and a loss on their stocks.
_____ is about understanding the quantitative and qualitative factors that impact the earnings of a company and making an estimate of future earnings based on this analysis.
If the factors to consider are Economic (E), Industry (I), and Company (C) factors, beginning at company-specific factors and moving up to the macro factors that impact the performance of the company is called ____ approach.
If the factors to consider are Economic (E), Industry (I), and Company (C) factors, Scanning the macro-economic scenario and then identifying industries to choose from and zeroing in on companies, is the_____.
Which of the following are Economic Factors?
Which of the following are Industry Factors?
Which of the following is a Company Factor?
_____ involves studying the price and volume patterns to understand how buyers and sellers are valuing a stock and acting on such valuation.
In technical Analysis which of the following is considered?
_____can either be Discretionary, where the Portfolio Manager manages the portfolio in alignment with the investor’s requirement or a Non-Discretionary where the portfolio manager will provide advice and information to the investor who will themselves take the decisions on investment choices and timing of the investment.
Which of the following are options for Equity Investment?
_____ debt markets enable lending and borrowing fund sup to a tenor of one year.
Which of the following are Money Market Instruments?
_____ is a short term instrument used to lend or borrow for periods ranging from overnight to one year against the collateral of eligible debt securities (mostly G-Secs and T-bills).
Treasury Bills are issued by ____.
Which is least likely to be the tenure of a treasury bond?
Treasury Bills are issued at ____ and redeemed at ____.
Treasury Bills are issued in multiple of ___.
____ is a negotiable money market instrument issued in dematerialized form against funds deposited at a bank or other eligible financial institution for a specific time period.
Certificate of deposit is issued in denomination of ____.
Commercial Paper is issued for minimum ____ and maximum ____ tenure.
Commercial Paper is issued in denomination of ____.
____ are a category of government securities issued by the RBI which provides inflation protected returns to the investors.
Corporate Bonds are issued by ____.
Corporate bonds are issued at a spread to the G-sec yield. The difference between the two yields is called ______.
The rate, at which the cash flows of a bond are discounted, is called ____.
If we discount the cash flows by a higher yield, the value of the bond will ____. If we discount by a lower yield, the value will _____.
Which of the following impact the value of a bond?
The valuation of a bond for its residual tenor, using a market rate or yield to discount the cash flows, is also called ____.
The rate that equates the present value of the future cash flows of a bond to its current value is called _____.
The curve that links the yields of traded bonds at a point in time is called _____.
____ measures the price sensitivity of a bond.
The duration of a coupon-paying bond will always be _____ than its term to maturity and the duration of a zero-coupon bond is _____ to its term to maturity.
Risk involved in investing in debt securities is _____.
Derivatives are typically used for_____.
“Buy a Call” gives the buyer ____.
“Sell a Call” gives the writer:
“Buy a Put” gives the buyer:
“Sell a Put” gives the buyer:
Buy a Call profit is ____ and loss is ____.
Buy a Put profit is ____ and loss is ____.
Sell a Call profit is ____ and loss is ____.
Sell a put profit is ____ and loss is ____.
Pay off call ____ and put ____.
In the money means ____.
Out of money means ____.
Time Value of an option = ___.
A ____ enables a buyer or a seller to buy or sell a stock, commodity, or interest rate, for delivery on a future date.
Future Price =
The difference between the spot and the future price thus adjusts to the market rates of interest, for the period between spot and futures delivery. This interest is called ____.
The carry cost of buying spot and selling futures on settlement date is _____.
On the settlement date, both the spot and the futures are at the same level. This is known as the _____.
If the exercise date of the option is pre-determined and set as the date on which the option will expire, such an option is called a ____.
If the option can be exercised at any point of time before the expiry date, such an option is called _____.
The seller of the option is also called _____.
Options have a fixed expiry date, after which they are worthless. Therefore an option must lose value over time as it nears the expiry date. This is called ____.
Time decay works to the disadvantage of option ____ and to the advantage of option ____.
When an investor has an open position in the underlying, he can use the derivative markets to protect that position from the risks of future price movements, this is called _____.
Which of the following are Derivative Market Indicator?
______shows the volume of open positions that have not been squared up.
______is computed by dividing the number of puts (contracts) by the number of calls (contracts).
_____ is the process of carrying over a futures position from one contract period to the next.
_________ is the market to determine the price of different currencies in terms of one another in order to enable trade between countries and to provide a way to transfer currency associated risks arising from economic transactions.
______ market help to hedge the risk of price movement for companies dependent on import as well as export.
The currency quoted first in the currency pair is called _____ and currency quoted next is called _____.
The date of settlement of a spot transaction is called ____ date and ____ the date on which the terms of the transaction, such as currency, price, amount, and value date are agreed upon by the parties to the transaction.
If the settlement is done on the trade date itself, the derived rate is called the ____ rate. If it is settled the next day after the trade date, the rate is called ____ rate.
The OTC markets for derivatives deal in ____.
_____ is an instrument used to hedge risk arising out of the exposure to a currency by the exchange of liability in one currency for liability in another currency.
_____ is a standardized forward contract, traded on an exchange, to buy or sell a certain underlying asset or an instrument at a certain date in the future, at a specified price.
An increase in the spot price ____ the premium for a call option and ____ the premium for a put option.
An increase in the strike price reduces the premium for_____option and increases it for a _____option.
An _____ in the interest rate differential between the two currencies increases the premium for the call option but decreases it for a put option.
Which of the following factors impact exchange rates?
The proportion of a public issue of shares allocated to various categories of investors is decided by____.
In a leveraged investment in an IPO, the profits to the investor depend upon _____.
A high turnover in a stock is an indicator of which of the following?
A decrease in interest rates is likely to see a greater impact on the price of which bond?
Read the following case let and answer the questions that follow: Mr. A is a conservative investor who is looking to invest in equity markets. He is evaluating shares of VKP Ltd. with a PE ratio of 22, PEG ratio of 0.98, dividend yield of 3.5. Which of the following may make VKP Ltd unsuitable for Mr. A as a conservative investor?
The PEG ratio of the company classifies it as:
Mr. A is attracted by the high dividend yield of the stock. Which of the following is a likely feature of the investment going forward?
The trading members of stock exchanges are also called stock brokers.
In electronic trading a price-time priority is followed in executing orders.
Margin trading amplifies the loss to the investor in the event of adverse price movements.
Higher the turnover in stock, lower is the liquidity.
Stock Exchanges also impose price bands on individual securities to limit volatility in prices.
If the PEG ratio is less than 1, it means that EPS growth is potentially able to surpass the market’s current valuation and the stock’s price is undervalued.
If the PEG ratio is more than 1 it can indicate that the stock is currently overvalued.
The dividend yield of a share is directly related to its share price.
Dated Government Securities, commonly known as G-Secs, refer to securities with maturities from 1 to 30 Years.
Secondary markets for corporate bonds are quite illiquid as compared to government securities.
The value of the bond and its discounting rate (Yield) are directly related.
Higher the duration of a bond, higher its price sensitivity.
There are fixed or guaranteed returns from debt funds.
Carry Cost is a market-driven rate.
A High Rollover percentage is taken as an indicator of the weakness in the market sentiment.
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