Top 350+ Solved Investment Management MCQ Questions Answer
Q. The exchange generating the largest volume in the United States is the:
a. New York Stock Exchange
b. National Market System
c. Pacific Stock Exchange
d. Chicago Stock Exchange
Q. Which of the following is not a characteristic of an exchange?
a. It provides liquidity to individuals who acquire securities in the primary market.
b. It requires one to be a member in order to be allowed to trade.
c. Stocks traded on an exchange must meet minimum listing requirements.
d. It allows exchange-listed issues to trade off the exchange floor with the aid of brokers.
Q. SENSEX is the index of --------------------.
a. BOMBAY STOCK EXCHANGE
b. NATIONAL STOCK EXCHANGE
c. BOTH OF THESE
d. NONE OF THESE
Q. It acts like a bank and keeps securities in electronic form on behalf of the investor,
a. Depository Participant
b. Depository
c. Stock Exchange
d. None of these
Q. On this day, the exchange will deliver the share or make payment to the other broker,
a. PAY-IN DAY
b. PAY-OUT DAY
c. TRANSACTION DAY
d. NONE OF THESE
Q. ___ is the institution which provides a platform for trading of existing securities having longterm maturity.
a. SEBI
b. WTO
c. Stock Exchange
d. RBI
Q. Which one of the following is not a function of financial market?
a. Mobilisation of savings
b. Price determination of securities
c. Floating of companies
d. Lowering transaction cost
Q. A _____________ is a person who acts as an intermediary between a buyer or seller in the market.
a. broker
b. floor broker
c. registered competitive trader
d. dealer
Q. 100 shares of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, the settlement should take place on _____ _?
a. Wednesday (T+2)
b. Tuesday (T+1)
c. Thursday (T+3)
d. Friday (T+4)
Q. Which of the following bonds has the shortest duration?
a. Coupon = 15%, time to maturity = 15 years, yield to maturity = 10%
b. Coupon = 12%, time to maturity = 20 years, yield to maturity = 10%
c. Coupon = 15%, time to maturity = 15 years, yield to maturity = 15%
d. Coupon = 10%, time to maturity = 20 years, yield to maturity = 10%
Q. An investor who expects increasing interest rates should purchase a bond that has a _____ coupon and a _____term to maturity.
a. high, short
b. zero, long
c. high, long
d. low, long
Q. A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.
a. Treasury
b. municipal
c. floating rate
d. zero-coupon
Q. The annual coupon of a bond divided by its face value is called the bond:
a. Coupon
b. Face value.
c. Maturity
d. Yield to maturity.
e. Coupon rate
Q. The rate of return required by investors in the market for owning a bond is called the:
a. Coupon
b. Face value.
c. Maturity
d. Yield to maturity.
Q. The Yield to Maturity of a bond is the same as_____________?
a. The present value of the bond
b. The bonds internal rate of return
c. The future value of the bond
d. None of these