IC89 Exam Mock Test
| Q1.Which risk is attributable to factors that affect all businesses like interest rate changes, inflation, political changes? |
| a) Diversifiable risk |
| b) Non-diversifiable risk |
| c) Portfolio risk |
| d) None of these |
| Q2.What is the price of one country's currency in terms of another country, which is determined in the Foreign Exchange market? |
| a) Spot transaction |
| b) Portfolio management |
| c) Exchange rate |
| d) Technical analysis |
| Q3.____ also means working capital, which is excess of current assets, over current liabilities. |
| a) Budget |
| b) Funds |
| c) Sources |
| d) Cash |
| Q4.Which funds generally employ diverse sometimes complex investment strategies and invest and trade in securities having diverse risks or complex products, including listed and unlisted derivatives? |
| a) Debt funds |
| b) Infrastructure funds |
| c) Hedge funds |
| d) Equity funds |
| Q5.Which is a financial instrument or security, which derives its value from the value of underlying entities such as an asset, index, or interest rate-it has no intrinsic value in itself? |
| a) Derivaties |
| b) Speculation |
| c) Rate |
| d) Forward |
| Q6.Which of the following risks arises due to inflation or rise in prices leading to rising in costs of production, lower margins, wage rises, and profit squeezing? |
| a) Market risk |
| b) Interest rate risk |
| c) Social or Regulatory risk |
| d) Purchasing power risk |
| Q7.What is a cheaper source of funds compared to shares because of the terms-fixed rate of interest, and tax advantage? |
| a) Equity shares |
| b) Cross border capital |
| c) Debentures |
| d) None of these |
| Q8.The Bombay Stock Exchange(BSE) Ltd. Was established in which year? |
| a) 1845 |
| b) 1855 |
| c) 1865 |
| d) 1875 |
| Q9.Calculate the Rate of return given by Share B? |
| a) 25% |
| b) 35% |
| c) 45% |
| d) 55% |
| Q10.Which insurance policy is designed primarily to provide a living benefit and secondarily to provide life insurance protection? |
| a) Term insurance |
| b) Endowment policy |
| c) Joint life policy |
| d) Pension plans |