FINANCIAL EDUCATION AND INVESTMENT AWAENESS

Question Bank
1. Which of the following is an example of income?
a) Wages
b) Salary
c) Commission
d) All of the above (Correct)
2. Horse racing, card games, and the lottery are all instances of ________.
a) Investing
b) Gambling (Correct)
c) Speculating
d) Arbitrage
3. AMFI Stands for
a) Avid Mutual Fund Investor
b) Association of Mutual Funds of India (Correct)
c) Aditya Birla Mutual Funds India
d) None of the above
4. The process of holding an investment in shares in electronic form is _________.

a) Dematerialisation (Correct)

b) Demutualisation

c) Speculation

d) None of the above

5. Which of the following is an example of business expenses?

a) Payment of wages/salary
b) Factory/office lease/rent payment
c) Payment made to venders
d) All of the above (Correct)
6. Organisation structure of mutual funds scheme
a) Open ended
b) Close ended
 c) Interval
d) All of the above (Correct)
7. Savings means
a) Income – Expenses (Correct)
b) Sales – Profit
c) Expenses – Income
d) None of the above
8. The _____ market assists existing investors in selling their stocks.
a) Primary market
b) Commodity market
c) Capital market
d) Secondary market (Correct)
9. The Investment objective should be
a) Growth funds
b) Income funds
c) Liquidity
d) All of the above (Correct)
10. Expand GST
a) Goods and Services Tax (Correct)
b) Green Service Tax
c) Growth and Service Tax
d) Goods and Savings Tax
11. What is Budget?
a) A Spending plan showing sources and uses of income (Correct)
b) A limit on spending that cannot be exceeded
c) The amount of plan that a credit card will let you charge without penalties
d) Don’t know
12. Age, Language, Life Style, Culture differences are
a) Demographic Factor (Correct)
b) Economic Factor
c) Natural Factor
d) Technology Factor
13. Which of these would hurt your credit score?
a) Closing a long held credit card account (Correct)
b) Paying off student load debt
 c) Getting married
d) Don’t know
14. Which of these are/is Scheduled Commercial Bank
a) Union Bank of India (Correct0
b) Standard Chartered Bank
c) IndusInd Bank
d) All of the above
15. Which is the primary function of Insurance
a) Making risk disappear
b) Pooling and sharing risk among insured (Correct)
c) Making someone else pay for accident or loss
d) Don’t know
16. In which year RBI Act was enacted
a) 1951
b) 1934 (Correct)
c) 1938
d) 1944
17. Savings is also called
a) Unspent income (Correct)
b) Non taxable income
c) Gross Income
d) None of the above
18. Which of these are/is not a function of Banks
a) Accepting Deposit
b) Giving loans
c) Agency and Utility Services
d) None of these (Correct)
19. The Agency which formulate the regulations of stock market in India
a) FEMA
b) FERA
c) SEBI (Correct)
d) NSE
20. DBT Stands for
a) Direct Benefit Transfer (Correct)
b) Direct Bank Transfer
 c) Direct Benami Transfer
d) Direct Ban Transfer
21. New Issue Market is known as _________
a) Secondary Market
b) Primary Market (Correct)
c) Stock Market
d) Share Market
22. What is Repo Rate
a) Percentage of bank total deposits that needs to be maintained as liquid cash
b) Minimum reserve required to be maintained by banks
c) Central Banks Lending Rate (Correct)
d) Commercial Banks Lending Rate
23. Tax system in India classified as
a) Direct and Indirect (Correct)
b) Present and Future Tax
c) Past and Future Tax
d) All of the above
24. Who are stakeholders of Company
a) Person or group who have vested interest in Company (Correct)
b) Person or group who do not have vested interest in company
c) Shareholders
d) Account holders
25. The word Banco is derived from
a) Latin word
b) French word (Correct)
c) German word
d) American word
26. Purpose of preparing income statement
a) Ascertain profit
b) Ascertain loss
c) Both profit and loss (Correct)
d) None of the above
27. CDM Stands for
a) Cash Deposit Machine (Correct)
b) Cash Dispose Machine
 c) Cash Divide Machine
d) Cash Design Machine
28. Retained earnings
a) Earnings after tax – dividend (Correct)
b) Earnings before tax- dividend
c) EBIT - Interest
d) Asset – Liability
29. NSE Situated in
a) Mumbai (Correct)
b) Delhi
c) Chennai
d) Bengaluru
30. Net worth of a person
a) Total assets – Outstanding liability
b) Total assets – personal expenses
c) Total assets – Liability (Correct)
d) None of the above
31. Objective & goals indentified future expenses are termed as
a) Financial needs (Correct)
b) Financial wants
c) Speculations
d) Financial goals
32. Which of these is not a money market instrument
a) Certificate of deposit
b) Commercial paper
c) Treasury Bills
d) Bonds (Correct)
33. Which is not a tangible assets
a) Furniture &Fixtures
b) Plant and machinery
c) Cash
d) Goodwill (Correct)
34. Custom duty comes under which types of Tax in India
a) Direct Tax
b) Indirect Tax (Correct)
 c) Provisional Tax
d) None of these
35. What is the full form of CAGR?
a) Compounded Annual Growth Rate (Correct)
b) Common Application for General Reserve
c) Capital Appreciation and General Reserve
d) All of the Above
36. PMJDY Stands for
a) Pradhan Mantri Jan Dhan Yojan (Correct)
b) Park Mania Jan Dhan Yojana
c) Public Money Joint Direct Yojana
d) None of the above
37. ______ the risk ___________ the return
a) Greater, Greater (Correct)
b) Lower, Greater
c) Moderate, Lower
d) None of the above
38. Current Ration is calculated
a) Current asset/Current liability (Correct)
b) Liquid assets-liquid liability
c) Current assets-current liability
d) None of the above
39. Full form of CIBIL
a) Credit India Board Information Limited
b) Cash Investment Board India Limited
c) Credited Information Bureau (India) Limited
d) All of the above
40. Which is/are the techniques of financial analysis
a) Trend analysis
b) Horizontal analysis
c) Vertical analysis
d) All of the above (Correct)
41. SIP is the
a) Simultaneous Information Program
b) Simon Investment Plan
 c) Systematic Investment Plan
d) None of these
42. Investments made in listed equity stock provides for
a) Better liquidity (Correct)
b) Guaranteed capital appreciation
c) Safety of Capital
d) All of the above
43. FCNR Account stands for
a) Foreign Currency Non Resident Account (Correct)
b) Foreign Currency Non Russian Account
c) Foreign Currency National Account
d) Foreign Currency Numbian Account
44. In investment capital ELSS
a) Equity Linked Savings Schemes (Correct)
b) Exceptional liquidity and Safe schemes
c) Enterprise linked social schemes
d) All of the above
45. Which type of deposit earns highest interest rate
a) Current Account
b) Saving Account
c) Fixed deposit account (Correct)
d) None of these
46. Which is/are the retirement scheme
a) Deferred Annuity(Correct)
b) Immediate annuity
c) Life annuity
d) All of the above
47. NEFT stands for
a) National Electric Fund Transfer
b) National Electronic Fund Transfer (Correct)
c) National Electrical Fund Transfer
d) None of the above
48. APY stands for
a) Atal Pension Yojana (Correct)
b) American Pension Yojana
 c) Annual Payment Yojana
d) None of the above
49. Who can open an account in PMJDY
a) Minor above the age of 10 years (Correct)
b) Only lady of the house
c) Only head of the family
d) All of the above
50. Soverign Gold Bond Scheme was introduced by Government in which year
a) 2001
b) 2020
c) 2015 (Correct)
d) 2022
51. DPI means
a) Disposable Personal Income (Correct)
b) Disposable Proforma Income
c) Disposable Partial Income
d) None of the above
52. IPO Stands for
a) Initial Public Offer (Correct)
b) Institutional Payment Offer
c) Indian Program Office
d) None of the above
53. Land Labour Capital and Entrepreneurship is known as
a) Types of Production
b) Factors of Production (Correct)
c) Forms of Production
d) Measures of Production
54. PAN Stands for
a) Permanent Account Number (Correct)
b) Personal Account Number
c) Provisional Account Number
d) None of the above
55. Money at present is worth more than the same amount in future is know as
a) Time Value of Money (Correct)
b) Time of Money
 c) Value of Money
d) None of these
56. Instrument used for deposit and withdrawal money form machine
a) ATM
b) CDA
c) MDM
d) None of the above (Correct)
57. Systematic and Unsystematic are _______ of risk
a) Types
b) Objectives
c) Meaning
d) Features
58. Investment objectives are
a) Growth
b) Income
c) Both (Correct)
d) None of the above
59. Liquidity and tax savings are the secondary objectives of investment
a) Yes
b) No (Correct)
c) Can’t say
d) None of these
60. Riske appetite generally __________ when number of dependent family
increases
a) Increases (Correct)
b) Decreases
c) No correlation
d) Does not say
61. CAPM Full form
a) Capital Asset Pricing Model (Correct)
b) Capital Arm Pricing Model
c) Cost Asset Pricing Model
d) None of these
62. NSDL Stands for
a) National Security Defense Limited
 b) National Stock Derivative Limited
c) National Securities and Depository Limited (Correct)
d) None of the above
63. Economic, Industry and Company analysis is known as
a) EIC (Correct)
b) EID
c) EII
d) EIS
64. Sharpe and Treynor are the ___________Mutual fund
a) Performance Measurement (Correct)
b) Types
c) Portfolio measurement
d) None of these
65. Share ratio uses ______ as measure of risk
a) Standar yd deviation
b) Alpha
c) Beta (Correct)
d) Gamma

66. Employment of funds on assets to earn a return is known as?

a) Loan

b) Investment (Correct)

c) Liability

d) Assets

67. What is a Treasury Bill?

A. Short-term U.S. government debt obligation (Correct)

B. A fixed-income investment scheme
C. A financial product commonly sold by banks, thrift institutions, and credit
unions
D. An unsecured money market instrument
 68. What is National Savings Certificate?

A. Short-term U.S. government debt obligation

B. A fixed-income investment scheme (Correct)
C. A financial product commonly sold by banks, thrift institutions, and credit
unions
D. An unsecured money market instrument

69. What is a Certificate of Deposit?

A. Short-term U.S. government debt obligation

B. A fixed-income investment scheme
C. A financial product commonly sold by banks, thrift institutions, and credit
unions (Correct)
D. An unsecured money market instrument

70 Which of the following is a type of Investment?

A. Economic Investments
B. Investment Vehicles
C. Both A & B (Correct)
D. None of the above

71. What is an Economic Investment?

A. When companies and other entities engage in sound business investment

practices (Correct)
B. A specific division of banking is related to the creation of capital for other
companies, governments, and other entities.
C. A fixed-income investment scheme
D. A financial product commonly sold by banks, thrift institutions, and credit
unions
72. Money Market Securities do not comprise of which of the following?

A. Commercial Paper
B. Certificate of Deposit
C. Treasury Bills
D. National Savings Certificate (Correct)

73. Which of the following is not a regulatory institution in Indian financial

system?

a) RBI

b) CIBIL (Correct)

c) SEBI

d) IRDA

74. Financial institutions are also known as ______________.

a) Financial organization

b) Financial intermediaries (Correct)

c) Financial system

d) Any of the above

75. If there is an increase in interest rates than the fixed interest rate of the corporate
bond will
A) Return to the corporation

B) Decrease in value (Correct)

C) Remain unchanged

D) Increase in value

76. Which one of the following is shown first when the assets are arranged in the
order of their liquidity?

A) Investment

B) Cash in hand (Correct)

C) Debtors

D) None of the above

77. An investor invests in assets known as a

A) Securities

B) Block of Assets

C) Portfolio (Correct)

D) None of the above

78. Over the period, investors determine the compound growth rate of an investment
by

A) Arithmetic median

B) Arithmetic mean
C) Calculus mean

D) Geometric mean (Correct)

79. Investors agree to invest in high- risk investments if only

A) There are any true speculations

B) The predicted return is satisfactory for taking a risk (Correct)

C) There are no safe options except for holding cash

D) The return is short

80. In Capital Market Line every investment is

A) Finitely divisible

B) Infinitely divisible (Correct)

C) Both a & b

D) None of the above

81. Investments would score high only if there is a protection to

A) Real estate

B) Preferred stock
 C) Government bonds (Correct)

D) Common stock

82. This type of risk can be avoided by diversifying properly.

A. systematic risk
B. unsystematic risk (Correct)
C. portfolio risk
D. total risk

83. A statistical measure of how closely two variables especially in stock returns
move together

A. variation coefficient
B. certainty equivalent
C. variance
D. Covariance (Correct)

84. Which of the following securities has the most possible risk as well as the highest
potential return?

A. Preferred stocks
B. Commercial paper
C. Derivative securities (Correct)
D. Bonds
 85. The ability to convert an asset rapidly and without influencing its price is referred to
as ________.

A. Scalability
B. Liquidity
C. Marketability (Correct)
D. minimal risk

86. A shareholder-funded investment program that trades in a variety of assets

A. Mutual Funds (Correct)

B. Dividends
C. Share program
D. None of the answers

87. Amount of money paid to a company’s shareholders on a regular basis.

A. Bonds
B. Profit
C. Cashback
D. Dividends (Correct)

88. A form of savings account that shows you own a piece of a company and have a claim
on its assets and earnings

A. Dividend
B. Share
C. Stock (Correct)
D. none of the above
 89. Shares are a part of the investment portfolio.

A. Insurance market
B. Financial market
C. Securities market (Correct)
D. Banking system

90. The two types of investment alternatives are

A. Bank and post office deposit

B. Shares and debentures
C. Financial assets & Real Assets(Correct)
D. None of these

91. Exchanging one currency for another is part of ______.

A. Securities market
B. Forex market (Correct)
C. Commodity market
D. None of the above

92. The connection between investors and debtors is called __________.

A. Electronic market
B. Financial market (Correct)
C. Market
D. None of these
 92. The return you make on your investment is based on the amount you put in, usually
given as a percentage.

A. Emergency Fund
B. Interest Rate (Correct)
C. Index
D. Penalty

93. _______ is a leading indicator of market behavior.

A. Arbitrage
B. Index (Correct)
C. Investment
D. None of These

94. The length of time that an investment is expected to last.

A. Maturity Date
B. Interest
C. Diversification
D. Term (Correct)

95. Ownership expressed in terms of money is called

A) Property Account
B) Capital Account (Correct)
C) Real Account
D) Asset Account
96. Capital profit is transferred to
A) Capital Reserve (Correct)
B) Reserve Capital
C) General Reserve
D) Specific Reserve

97. Depreciation on fixed asset is provided in compliance with the accounting concept
of
A) Consistency
B) Accrual
C) Cost (Correct)
D) Going concern concept

98. Depreciation on fixed asset is provided in compliance with the accounting concept
of
A) Consistency
B) Accrual
C) Cost (Correct)
D) Going concern concept

99. Quick ratio is also called

A) Acid test ratio (Correct)
B) Near money ratio
C) Liquid ratio
D) All of these

100. Income Tax Act was passed in

A) 1956
B) 1961 (Correct)
C) 1966
D) 1968