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Online MCQ Assignment
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Online MCQ Assignment Answer

QN1: Liquidity risk is associated with secondary market transactions.
a. TRUE
b. FALSE
c. Can’t Say
d. Sometimes

View Answer

Answer: d. Sometimes

QN2: Trustee is a self-governing organization that operates as bondholders …
a. Broker
b. Representative
c. Gaurdian
d. Gurantee

View Answer

Answer: b. Representative

QN3: A price weighted index is an arithmetic mean of … Prices.
a. current
b. furure
c. quarter
d. None

View Answer

Answer: a. current

QN4: Dalal Street is in … City.
a. Delhi
b. Jaipur
c. Kolkatta
d. None

View Answer

Answer: d. None

QN5: Financial hazard is most related with use of …financing by corporations.
a. Equity
b. Debt
c. Private
d. Loan

View Answer

Answer: b. Debt

QN6: Bondholders usually accept interest payments each … Months.
a. 3
b. 6
c. 9
d. 12

View 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

View Answer

Answer: c. Financial

QN8: Standard deviation determine … risk of security.
a. Systematic
b. Unsystematic
c. Premium
d. Total

View 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

View 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

View 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

View Answer

Answer: a. Public Issue

QN12: Rule … permits what is known as a shelf registration.
a. 413
b. 414
c. 415
d. 416

View 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

View 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

View 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

View 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

View 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

View Answer

Answer: a. Merchant bankers

QN18: NASQAQ stands for National Association of Securities Dealers … Quotations
a. American
b. Australian
c. Automated
d. Automatic

View 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

View 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

View Answer

Answer: d. Retained Earnings

QN21: FPO stands for follow on…offer.
a. Private
b. Public
c. Public-private
d. partnership

View 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

View Answer

Answer: c. Investment Banker

QN23: Role of merchant bankers
a. M&A
b. Project Councelling
c. Forming Joint Ventures
d. All

View Answer

Answer: b. Project Councelling

QN24: Formal merchant banking activity in India was originated in___.
a. 1979
b. 1969
c. 1989
d. 1999

View 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

View 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

View Answer

Answer: d. All

QN27: Issues identification is more important than it is in the … approach.
a. Conventional
b. Modern
c. Traditional
d. Classical

View 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

View Answer

Answer: a. Fall

QN29: NYSE stands for … Stock Exchange.
a. New-York
b. New Delhi
c. New Zeeland
d. Nariman Point

View 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

View 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

View 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

View Answer

Answer: c. Investment Bankers

QN33: Disinvestment is normally done for … shares.
a. Private
b. Public
c. Bonus
d. All

View Answer

Answer: b. Public

QN34: Capital Market Line is firstly initiated by …
a. Adam
b. Sharpe
c. Martkowitz
d. Linterr

View Answer

Answer: b. Sharpe

QN35: NSE stands for … Stock Exchange?
a. New Delhi
b. Nagpur
c. National
d. New york

View Answer

Answer: c. National

QN36: Internal Trends depict…
a. Strengths
b. Weaknesses
c. None
d. Both

View Answer

Answer: d. Both

QN37: FTD stands for … trading day.
a. First
b. Foremost
c. Future
d. Fast

View Answer

Answer: a. First

QN38: NIFTY and DSE belong to…
a. China
b. India
c. Japan
d. USA

View Answer

Answer: b. India

QN39: UTI stands for … Trust of India.
a. United
b. Unit
c. Union
d. Unversal

View Answer

Answer: b. Unit

QN40: Debentures are issued by… Companies.
a. Public
b. SMEs
c. Private
d. Financially Sound

View 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

View Answer

Answer: b. Decrease

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