Capital Marcket B.com , MBA Multiple Choice Questions And Answers

91. The movement from x to x' in Exhibit 0195 represents a(n)
a. increase in roundabout production; future ability to produce consumer goods will be higher as a result
b. increase in roundabout production; future ability to produce consumer goods will be lower as a result
c. decrease in roundabout production; future ability to produce consumer goods will be higher as a result
d. decrease in roundabout production; future ability to produce consumer goods will be lower as a result
e. decrease in roundabout production but one that does not have an effect on future ability to produce consumer goods
Ans: a

92. The benefit of the production of capital is
a. decreased current production of consumption goods
b. increased future production of consumption goods
c. the amount of roundabout production
d.  abundant capital accumulation
e. the decreased amount of future capital available
Ans: b

93. Interest is a payment for deferred
a. taxation
b. saving
c. consumption
d. investment
e. none of the above
Ans: c

94. Which of the following does not reflect a positive rate of time preference?
a. A couple gets a mortgage for a new house instead of saving up for it.
b. A print shop gives discounts to people who can wait overnight for their copies.
c. Mail companies charge people premiums for packages that must be delivered overnight.
d. Faster computers are more expensive than slower ones, other things equal.
e. Bank Christmas clubs pay no interest.
Ans: e

95. If the interest rate increases from 6 percent to 10 percent per year, each $100 saved will earn
a. $4 per year more than before
b. $6 per year more than before
c. $10 per year more than before
d. $16 per year more than before
e. $60 per year more than before
Ans: a

96. If we assume that a unit of capital will last indefinitely, the marginal rate of return on investment equals the marginal revenue product of capital divided by its marginal resource cost.
a. True
b. False
Ans: a

97. In order to predict marginal rates of return on investment, producers must forecast interest rates.
a. True
b. False
Ans: b

98. The concept of marginal productivity is applicable to
a. all of the following
b. capital
c. entrepreneurial talent
d. land
e. labor
Ans: a

99. Exhibit 0199 shows data on the various dough-mixing machines that a donut shop is considering buying. Assume that any dough-mixing machine is expected to last indefinitely, that operating expenses are negligible, and that the price of donuts is expected to remain constant in the future. If the interest rate is 8 percent and the firm has $3,000 on hand, what should it do?
a. Buy the machine with the three-quart bowl, which costs $3,000.
b. Save $3,000 at the interest rate of 8 percent.
c. Buy the machine with the one-quart bowl and save the extra $2,000.
d. Buy the machine with the two-quart bowl and save the extra $1,000.
e. Buy two machines, with one-quart and two-quart bowls.
Ans: c

100. IBM's marginal rate of return on investment curve equals its
a. supply of loanable funds curve
b. supply of investment curve
c. marginal revenue product curve
d. marginal revenue cost curve
e. investment demand curve
Ans: e

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Capital Marcket Objective Type Questions & Answers

71. Which type of stocks has ability to provide higher return
A) Cyclical Stocks
B) Speculative Stocks
C) Value Stocks
D) Growth Stocks
Ans: C,D

72. Free Float methodology is used for which stock index
A) Nifty
B) DOWJONES
C) SENSEX
D) Nikkei
Ans: C

73. Beta refers to
A) Operational Risk
B) Systematic Risk
C) Unsystematic Risk
D) Market Risk
Ans: B

74. Which sector is not interest rate sensitive sector?
A) Real Estate
B) Banking
C) Auto
D) Pharmacy
Ans: D

75. Which in the list signifies pessimism for a particular stock
A) Buy Call Option
B) Sell Call Option
C) Buy Stock
D) Buy Futures
Ans: B

76. Which clearing house is the wholly owned subsidiary of NSE?
  A) National Securities Clearing Corporation Ltd. (NSCCL)
  B) India Index Services & Products Ltd. (IISL)
  C) Clearing Corporation of India Ltd. (CCIL)
  D) None of the above
  Ans: A

77. What does SENSEX stands for?
  a) Sensor index
  b) Sensitive index
  c) Sensitive exchange
  D) Sensitive Stocks
  Ans: B

78. In which year NSE launched Currency Derivatives?
  A) 2009
  B) 2008
  C) 2003
  D) 2006
  Ans: B
79. Which is the principal stock exchange of Switzerland?
  A) Swiss Exchange
  B) Stockholm Stock Exchange
  C) Electronic Share Information
  D) Santiago Stock Exchange
 
Ans: A

80. Which is the largest Stock exchange in the world in terms of dollar value of its listed companies stocks?
  A) NYSE
  B) Chicago Stock Exchange
  C) FTSE
  D) Stockholm Stock Exchange
  Ans: A

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Most Recently Asked Capital Marcket Online Quiz Questions And Answers

41) What does 'P' indicate as a status in the 'Auction Inquiry' screen in the NEAT system?
 
  A. Auction is pending and yet to begin
  B. Auction is deleted.
  C. There is no such status indicator as 'P' in the Auction Inquiry screen.
  D. Auction is over.
Ans: A

42) ___________ assumes the counter party risk of each member and guarantees financial settlement.
 
  A. SEBI
  B. Central Depository Services Ltd. (CDSL)
  C. The National Depository Services Ltd. (NSDL)
  D. The National Securities Clearing Corporation Ltd. (NSCCL)
Ans: D

43) No person shall be admitted as trading member of a recognized stock exchange if he has been adjudged bankrupt or a receiver order in bankruptcy has been made against him or he has been proved to be insolvent even though he has obtained his final discharge. True or False?
 
  A. True
  B. False
Ans: A

44) Rahul is supposed to receive Rs. 1,00,000 from Chandra after 3 years. If the interest rate is 8%, what is the present value of the amount due from Chandra?
 
  A. 71,686.34
  B. 79,383.22
  C. 81,232.25
  D. 91,444.9
Ans: B

45) When the user invokes the order entry screen, the field(s) that are (is) taken as default are (is) __________.
 
  A. Symbol
  B. Series
  C. Book Type
  D. All of the above
Ans: D

46) A stock-broker shall not encourage sales or purchases of securities with the sole object of generating brokerage or commission. Is the above statement True or False, under the Code of Conduct Guidelines prescribed under SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
 
  A. True
  B. False
Ans: A

47) Where a recognized stock exchange acting in pursuance of any power given to it by its bye-laws, refuses to list the securities of any company, the company shall be entitled to be furnished with reasons for such refusal and the company may appeal to the _________ against such refusal.
 
  A. SEBI
  B. recognized stock exchange
  C. Securities Appellate Tribunal (SAT)
  D. High Court
Ans: C

48) Fixed Deposit Receipts (FDRs) issued by approved banks can be submitted as a(n) ___________ to NSCCL by trading members.
 
  A. surety.
  B. indemnity
  C. warranty
  D. additional base capital
Ans: D

49) NSE has implemented ______________ in compulsory rolling settlement with effect from July 02, 2001.
 
  A. securities-based market-wide circuit breakers
  B. index-based market-wide circuit breakers
  C. market-wide based securities-wise circuit breakers
  D. none of the above
Ans: B

50) Which of the following do not issue securities in the primary market?
 
  A. FIIs
  B. State Governments
  C. Companies
  D. None of the above
Ans: A

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Top 100 Capital Marcket Objective Type Questions & Answers

1) If a client buys shares worth Rs. 1,00,000 and sells shares worth Rs. 1,00,000 through a stock-broker, then the maximum brokerage payable is _______.
 
  A. Rs. 4,000
  B. Rs. 5,000
  C. Rs. 2,000
  D. Rs. 6,000
Ans: B

2) Two sell orders enter into the system and are unmatched : 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.70 at time 10:31 a.m. Which order will get a priority for getting executed.
 
  A. Order no. 1.
  B. Order no. 2
  C. both will have equal priority
  D. None
Ans: B

3) The Trading Members shall keep the dematerialized securities of Constituents in a separate beneficiary account distinct from the beneficiary account maintained for holding their own dematerialized securities. True or False?
 
  A. True
  B. False
Ans: A


4) If a client buys shares worth Rs. 5,25,000 and sells shares worth Rs. 4,75,000 through a broker, then the maximum brokerage payable to broker is ___.
 
  A. Rs. 25,000
  B. Rs. 15,000
  C. Rs. 10,000
  D. Rs. 20,000
Ans: A

5) On Line Backup is a facility that the user can invoke to take a backup of all order and trade related information for the user. True or False.
 
  A. True
  B. False
Ans: A

6) Mr. Shah has decided to deposit Rs. 300,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 12% how much would his deposit grow upto in 3 years?
 
  A. 1,234,146.15
  B. 1,113,502.54
  C. 1,085,123.70
  D. 1,083,467.63
Ans: D

7) What does ‘AUI’ indicate as a message code in 'Full Message window' in the NEAT system?
 
  A. Auction Initiation Messages
  B. Auction User Interface messages
  C. All messages related to user interface
  D. All messages related to Auctions
Ans: A

8) Institutional transactions are identified by the use of the ________ at the time of order entry.
 
  A. user code
  B. user id
  C. participant code
  D. client id
Ans: C

9) The NSCCL interposes itself as a central counterparty between the counterparties to trades and nets the positions so that a member has security wise net obligation to receive or deliver a security and has to either pay or receive funds. True or False?
 
  A. True
  B. False
Ans: A

10) A user can simultaneously view a regular inquiry (e.g. MBP) and the Snap Quote display on the trading screen. True or False?
 
  A. True
  B. False
Ans: A

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