Online MCQ Assignment Answer
QN1: Liquidity risk is associated with secondary market transactions.
a. TRUE
b. FALSE
c. Can’t Say
d. Sometimes
Answer
Answer: d. Sometimes
QN2: Trustee is a self-governing organization that operates as bondholders …
a. Broker
b. Representative
c. Gaurdian
d. Gurantee
Answer
Answer: b. Representative
QN3: A price weighted index is an arithmetic mean of … Prices.
a. current
b. furure
c. quarter
d. None
Answer
Answer: a. current
QN4: Dalal Street is in … City.
a. Delhi
b. Jaipur
c. Kolkatta
d. None
Answer
Answer: d. None
QN5: Financial hazard is most related with use of …financing by corporations.
a. Equity
b. Debt
c. Private
d. Loan
Answer
Answer: b. Debt
QN6: Bondholders usually accept interest payments each … Months.
a. 3
b. 6
c. 9
d. 12
Answer
Answer: b. 6
QN7: Ambiguity introduced by way by which organization finances its investments is … Risk.
a. Monetary
b. Credit
c. Financial
d. Country
Answer
Answer: c. Financial
QN8: Standard deviation determine … risk of security.
a. Systematic
b. Unsystematic
c. Premium
d. Total
Answer
Answer: d. Total
QN9: A corporate bond is a corporation’s write undertaking that it will refund a specific amount of money plus
a. Premium
b. Interest
c. Nothing
d. Security
Answer
Answer: b. Interest
QN10: When the investment banker bears the risk of not being able to sell a new security at the established price, this is known as … .
a. Arbitrage
b. FPO
c. Underwriting
d. Possession
Answer
Answer: c. Underwriting
QN11: A best efforts offering is sometimes used in connection with a … of new, long-term securities.
a. Public Issue
b. Private Issue
c. Bonus Issue
d. Collected Issue
Answer
Answer: a. Public Issue
QN12: Rule … permits what is known as a shelf registration.
a. 413
b. 414
c. 415
d. 416
Answer
Answer: c. 415
QN13: As per practice, reservation for retail investors in 100% book building process is only …%.
a. 5
b. 35
c. 25
d. 15
Answer
Answer: b. 35
QN14: Ranking of issues is done under following technique?
a. Probability Impact Matrix
b. Traditional Matrix
c. Modern Matrix
d. Compatible Matrix
Answer
Answer: a. Probability Impact Matrix
QN15: Which is not the filter criterion to rank various issues?
a. Actionality
b. Criticality
c. Urgency
d. Merging
Answer
Answer: c. Urgency
QN16: It has been noticed that in … City there is much concentration of merchant bankers.
a. Delhi
b. Mumbai
c. Hyderabad
d. Chandigarh
Answer
Answer: b. Mumbai
QN17: Wide network of … all over India and abroad is required for successful marketing of public issues.
a. Merchant bankers
b. Underwriters
c. Banks
d. Postal offices
Answer
Answer: a. Merchant bankers
QN18: NASQAQ stands for National Association of Securities Dealers … Quotations
a. American
b. Australian
c. Automated
d. Automatic
Answer
Answer: c. Automated
QN19: Which of the following is not a method a firm can use to publicly issue common stock?
a. Private Placement
b. Publicity
c. Public Placement
d. Correlation
Answer
Answer: a. Private Placement
QN20: Which of the following is not a method a firm can use to finance their long-term needs externally?
a. Company Earnings
b. Accounted Earnings
c. New Earnings
d. Retained Earnings
Answer
Answer: d. Retained Earnings
QN21: FPO stands for follow on…offer.
a. Private
b. Public
c. Public-private
d. partnership
Answer
Answer: b. Public
QN22: If an investment banker has agreed to sell a new issue of securities on a best-efforts basis, the issue results in no assumption of underwriting risk by the … .
a. BOD
b. Government
c. Investment Banker
d. Underwriter
Answer
Answer: c. Investment Banker
QN23: Role of merchant bankers
a. M&A
b. Project Councelling
c. Forming Joint Ventures
d. All
Answer
Answer: b. Project Councelling
QN24: Formal merchant banking activity in India was originated in___.
a. 1979
b. 1969
c. 1989
d. 1999
Answer
Answer: b. 1969
QN25: The early growth of merchant banking in the country is assigned to the ___.
a. FEMA
b. FERA
c. Securities Act
d. IT Act
Answer
Answer: a. FEMA
QN26: A Merchant bank is a financial institution conducting money market activities and … .
a. Lending
b. Investment Service
c. underwriting
d. All
Answer
Answer: d. All
QN27: Issues identification is more important than it is in the … approach.
a. Conventional
b. Modern
c. Traditional
d. Classical
Answer
Answer: a. Conventional
QN28: What happens, according to the text, to the average common stock price immediately after the announcement of a new equity issue by a publicly traded firm?
a. Fall
b. Stable
c. Increase
d. No Change
Answer
Answer: a. Fall
QN29: NYSE stands for … Stock Exchange.
a. New-York
b. New Delhi
c. New Zeeland
d. Nariman Point
Answer
Answer: a. New-York
QN30: If the market price of a stock “rights-on” is $50 a share, the subscription price is $40 a share, and it takes nine rights to buy an additional share of common stock, the theoretical value of a right when the stock is selling “rights-on ” is how much?
a. $5
b. $4
c. $2
d. $1
Answer
Answer: d. $1
QN31: The ___ is a disclosure document filed with the SEC in order to register a new security and includes the prospectus and other SEC required information.
a. Prospectus
b. Registration Document
c. Line Document
d. Straight Document
Answer
Answer: b. Registration Document
QN32: Who … earn a spread based on the difference between the purchase price from the firm and the sales price to investors of the securities being underwritten.
a. International Bankers
b. Merchant Bankers
c. Investment Bankers
dindian Bankers
Answer
Answer: c. Investment Bankers
QN33: Disinvestment is normally done for … shares.
a. Private
b. Public
c. Bonus
d. All
Answer
Answer: b. Public
QN34: Capital Market Line is firstly initiated by …
a. Adam
b. Sharpe
c. Martkowitz
d. Linterr
Answer
Answer: b. Sharpe
QN35: NSE stands for … Stock Exchange?
a. New Delhi
b. Nagpur
c. National
d. New york
Answer
Answer: c. National
QN36: Internal Trends depict…
a. Strengths
b. Weaknesses
c. None
d. Both
Answer
Answer: d. Both
QN37: FTD stands for … trading day.
a. First
b. Foremost
c. Future
d. Fast
Answer
Answer: a. First
QN38: NIFTY and DSE belong to…
a. China
b. India
c. Japan
d. USA
Answer
Answer: b. India
QN39: UTI stands for … Trust of India.
a. United
b. Unit
c. Union
d. Unversal
Answer
Answer: b. Unit
QN40: Debentures are issued by… Companies.
a. Public
b. SMEs
c. Private
d. Financially Sound
Answer
Answer: c. Private
QN41: “If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually value.”
a. Increase
b. Decrease
c. Inflate
d. None
Answer
Answer: b. Decrease
