AS 05 (iv) - Finance and Investment Mock Test 19

1. In a Rolling Settlement system, on a T+2 basis:

A. Trades are settled immediately on the trade day

B. Trades executed during the day are settled based on the net obligations for that day on the second working day after the trade date

C. Trades are settled weekly

D. Trades are settled monthly

E. Trades are settled within 24 hours

2. An Initial Public Offer (IPO) is:

A. An offer to sell Government bonds

B. When a private company offers shares to the public for the first time to become publicly traded, usually with the assistance of underwriters

C. A follow-on public offering by an already listed company

D. An offer made exclusively to institutional investors

E. A rights issue to existing shareholders

3. In which year did UTI launch its first product – the Unit Scheme?

A. 1956

B. 1960

C. 1964

D. 1970

E. 1975

4. What is the 'P/E Ratio' in the context of equity investment for Mutual Funds?

A. The ratio of price to earnings, indicating how much investors are willing to pay for each unit of earnings and reflecting market valuation levels

B. The ratio of portfolio returns to equity exposure

C. The ratio of principal to earnings

D. The ratio of profit to expenses of the AMC

E. The price-to-earnings ratio adjusted for inflation

5. Which of the following best describes 'death' in the context of a partnership?

A. Death automatically dissolves the partnership and distributes assets to heirs

B. In certain circumstances, the estate of a deceased partner may continue to remain liable for partnership obligations

C. Death of a partner has no impact on the partnership

D. Death automatically transfers the deceased partner's share to the remaining partners

E. Death requires the partnership to register as a limited company

6. What is the minimum period for which a person must have been a distributor as of September 30, 2003, to be exempted from AMFI certification?

A. 2 years

B. 3 years

C. 5 years (along with age above 50 years)

D. 7 years

E. 10 years

7. In CAPM (Capital Asset Pricing Model), the beta of a security represents:

A. The total risk of the security

B. The extent to which the security’s return moves systematically with the return of the market portfolio

C. The unsystematic risk of the security

D. The correlation coefficient between the security and the market

E. The standard deviation of the security

8. How does the holder of a zero-coupon bond realize interest?

A. By receiving periodic coupon payments

B. By collecting dividends

C. By purchasing the bond at a discount to face value and redeeming it at face value upon maturity

D. By receiving interest linked to MIBOR

E. By reinvesting coupons at the YTM rate

9. To be traded on a stock exchange, a security must be:

A. Available in large quantities

B. Listed on the exchange, which provides benefits such as improved liquidity, speed, and lower transaction costs

C. Issued only by a public sector company

D. Issued with a minimum face value

E. Approved only by SEBI

10. What are the minimum and maximum annual deposits permitted under Sukanya Samriddhi Yojana (SSY)?

A. Minimum ₹100, Maximum ₹50,000

B. Minimum ₹500, Maximum ₹1,00,000

C. Minimum ₹250, Maximum ₹1,50,000 per year

D. Minimum ₹1,000, Maximum ₹2,00,000

E. Minimum ₹50, Maximum ₹1,00,000