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Mba Sapm Skill Test I

The document contains 24 multiple choice questions about various financial concepts such as stock market indices, present and future value calculations, components of EPS and market capitalization, securities that can be held in money market funds, number of securities in the Nifty index, primary markets, benefits of depositories, ADRs, components of profit and loss statement, types of mutual funds, option types, instruments that provide voting rights, and the regulatory body draft prospectuses must be filed with for public issues. The questions cover topics like stock markets, mutual funds, bonds and fixed income, valuation and time value of money.

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164 views

Mba Sapm Skill Test I

The document contains 24 multiple choice questions about various financial concepts such as stock market indices, present and future value calculations, components of EPS and market capitalization, securities that can be held in money market funds, number of securities in the Nifty index, primary markets, benefits of depositories, ADRs, components of profit and loss statement, types of mutual funds, option types, instruments that provide voting rights, and the regulatory body draft prospectuses must be filed with for public issues. The questions cover topics like stock markets, mutual funds, bonds and fixed income, valuation and time value of money.

Uploaded by

thorat82
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q1

The benchmark stock market index of India is ________. (a) Dow Jones (b) Nikkei 225 (c) S&P 500 (d) the Nifty

[ 1 Mark ]

Q02 What is the present value of Rs. 6000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ] (a) Rs. 5429.02 (b) Rs. 6000 (c) Rs. 5700 (d) Rs. 6300 (e) I am not attempting the question

Q3

Earnings Per Share (EPS) is calculated by _________. (a) Gross Profit / No. of equity shareholders (b) Net Profit / No. of equity shareholders (c) Gross Profit / No. of Ordinary shares outstanding

[ 2 Marks ]

(d) Net Profit / No. of Ordinary shares outstanding (e) I am not attempting the question

Q04 Market Capitalisation is _____________.

[ 2 Marks ]

(a) Value of shares of the company held by Foreign Investors (b) No. of shares issued by a company multiplied by it's market price (c) Value of shares held by promoters of the company (d) Value of shares in the company held by the public (e) I am not attempting the question Q5 What is the present value of Rs 10000 receivable after 1 year discounted at 10% p.a.? Marks ] (a) 11000 (b) 10000 (c) 9000 (d) 9090.9 (e) I am not attempting the question [2

Q6

Money market mutual funds can invest in _______. (a) treasury bills (b) certificate of deposits (c) commercial paper (d) All of the above (e) I am not attempting the question

[ 3 Marks ]

Q7

How many securities are there in Nifty index? (a) 30 (b) 100 (c) 500 (d) 50 (e) I am not attempting the question

[ 1 Mark ]

Q8

Which of the following is TRUE about Primary Markets?

[ 2 Marks ]

(a) Primary Markets are markets where commodities are sold. (b) Primary Market is the place where public can buy and sell securities from one another. (c) Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures. (d) Primary Markets are places where only short term instruments are traded. (e) I am not attempting the question Q9 The future value of a Rs.10,000 investment done today, which gives an annual rate of return of 20% per annum, after one year should be ____________. [ 3 Marks ] (a) Rs. 12,200 (b) Rs. 12,500 (c) Rs. 12,000 (d) Rs. 12,640 (e) I am not attempting the question Q10 Which of the following problems have been eliminated by Depositories? [ 1 Mark ] (a) Reduction in the share transfer time to the buyer. (b) Risk of stolen, fake, forged shares. (c) Stamp duty on transfer of shares in dematerialized form. (d) All of the above (e) I am not attempting the question

Q11 Depositories are like banks for securities. [ 1 Mark ] (a) TRUE (b) FALSE (c) Dormant Funds (d) None of the above

(e) I am not attempting the question

Q12 The future value of a Rs.10,000 investment, which gives an annual rate of return of 20% per annum, after two years would grow to _________ (assume discrete compounding) [ 3 Marks ] (a) Rs. 14,400 (b) Rs. 14,000 (c) Rs, 14,250 (d) Rs. 14,500 (e) I am not attempting the question

Q13 Which of the following is not true about ADR?

[ 1 Mark ]

the

(a) ADR represents the foreign shares of the company held on deposit by a custodian bank in company's home country. (b) ADRs may be used in public or private markets inside or outside US.

(c) ADRs do not eliminate the currency risk associated with an investment in a non-U.S. company. (d) An ADR is a U.S. dollar denominated form of equity ownership in a non-U.S. company. (e) I am not attempting the question Q14 What are the segments of Securities Market? [ 1 Mark ]

(a) Primary market and Secondary market (b) New issues market (c) Primary market (d) Secondary market (e) I am not attempting the question Q15 Which instrument among these is considered the most challenging and rewarding investment option, when compared to other investment options? [ 3 Marks ] (a) Equity

(b) Fixed Deposit (c) Bonds (d) Treasury Bill (e) I am not attempting the question

Q16 Profit and Loss account of a company shows _______.

[ 2 Marks ]

(a) The revenues and expenses during particular period of time. (b) The revenues and expenses of the company at a particular point of time. (c) The financial position of the company at a particular point of time. (d) None of the above (e) I am not attempting the question Q17 Which instrument among these have historically shown to give the highest returns when invested over long periods? [ 3 Marks ] (a) Debentures (b) Equity (c) Fixed Deposit (d) Bank Deposit (e) I am not attempting the question

Q18 _______ funds do not have a fixed date of redemption. (a) Open ended funds (b) Close ended funds (c) Diversified funds (d) Both A and B (e) I am not attempting the question

[ 2 Marks ]

Q19 What is the present value of Rs. 3000 receivable after two years at a discount rate of 5% under continuous discounting? [ 2 Marks ] (a) Rs. 3150 (b) Rs. 2714.51 (c) Rs. 2850 (d) Rs. 2970 (e) I am not attempting the question Q20 The future value of a Rs.12,000 investment made today, which gives an annual rate of return of 10% per annum, after one year should be _________. [ 3 Marks ] (a) Rs. 12,200 (b) Rs. 12,500 (c) Rs. 13,200 (d) Rs. 13,100 (e) I am not attempting the question

Q21 Which securities can an investor invest in? (a) Shares (b) Debentures (c) Mutual Funds (d) All of the above (e) I am not attempting the question

[ 1 Mark ]

Q22 _____________ gives the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date. [ 1 Mark ] (a) Put Option (b) Forward (c) Future (d) Call Option

(e) I am not attempting the question Q23 The holders of which instrument are members of the company and have voting rights? Marks ] (a) Treasury Bill (b) Commercial Paper (c) Debenture (d) Equity (e) I am not attempting the question Q.24
A company making a public issue of securities has to file a draft prospectus with ____. (1 mark) (a) RBI (b) SEBI (c) Ministry of Finance (d) None of the above (e) I am not attempting

[3

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