Deck 5: Financial Terminology and Analysis

Question 1

Interest rate that every bond/debenture carries on its face value and is fixed at the time of issue is called----------.

A)bank rate ,
B)repo rate
C)Coupon rate
D)all of these

Answer 1

Coupon rate

Question 2

G. securities are issued by the ---------- on the behalf of the Government of India.

A)central government
B)RBI
C)state government
D)SEBI

Answer 2

RBI

Question 3

Gilt securities are issued by ---------- .

A)central government
B)RBI
C)state government
D)SEBI

Answer 3

RBI

Question 4

---------- instruments are those instruments, which have a maturity period of less than one year .

A)capital market
B)Money market
C)local market
D)all of these

Question 5

Dow theory is associated with

A)Market analysis
B)Technical analysis
C)Fundamental analysis
D)all of these

Question 6

Estimating the return and risk for individual securities is known as

A)Market analysis
B)Securities analysis
C)Environment analysis
D)None of these

Question 7

Financial literacy / awareness programmes are conducted by

A)SEBI
B)Brokers
C)Stock exchange
D)All of these

Question 8

Value investing means, buying the stock

A)after the growth cycle begins
B)before the growth cycle begins
C)after the results are out
D)none of these

Question 9

Value investing is investing in

A)Companies with low P / E
B)Companies with low P / BV
C)Companies with high dividend yield
D)All of above

Question 10

In fundamental analysis

A)Buy the security if IV>MP
B)Buy the security if IV=MP
C)Buy the security if IVD)none of these

Question 11

Opening up of the Indian economy means

A)Indian markets and global markets are linked
B)Indian markets and global markets separated
C)Indian markets and global markets are like watertight compartments
D)None of these

Question 12

Boom period means

A)High demand for products and services
B)Demand for products steady
C)Demand for services okay
D)None of these

Question 13

Depression means

A)Presence of hyper inflation
B)Interest rate shooting up
C)Companies reducing production
D)all of these

Question 14

Repo rate means

A)rate at which Govt. Borrows money
B)rate at which RBI lends to banks
C)rate at which RBI borrows money
D)none of these

Question 15

----------- combines economic, industry and company analysis to forecast future stock price.

A)Technical analysis
B)Random walk theory
C)Fundamental analysis
D)None of these

Question 16

Stock valuation method that uses financial data to predict price movements.

A)Fundamental analysis
B)Technical analysis
C)Company analysis
D)None of these

Question 17

An example for a sunrise industry is

A)IT business
B)Animation industry
C)FMCG (Fast moving consumer goods)
D)None of these

Question 18

Growth industry means

A)growth rate of industry exceeds the average growth of economy
B)growth rate of industry equal the growth of the economy
C)growth rate of industry less than the growth of the economy
D)None of these

Question 19

Which of the following is a defensive industry?

A)Steel industry
B)Pharmaceuticals
C)Cement industry
D)None of these

Question 20

Technical analysis study

A)Financial figures of the companies
B)Behaviour of stock prices
C)Data about the industry
D)None of these

Question 21

When rupee in the ventilator, dollor in the escalator,

A)IT companies will shine
B)FMCG companies will shine
C)Petroleum marketing companies will shine
D)None of these

Question 22

Level that the technical analyst believes that a stock price will not fall below.

A)Support level
B)Resistance level
C)Maximum level
D)None of these

Question 23

Level that the technical analyst believes a stock price will not exceed.

A)Support level
B)Resistance level
C)Maximum level
D)None of these

Question 24

White candlestick represents

A)Bullish trend
B)Bearish trend
C)Neutral trend
D)None of these

Question 25

Black candlestick represents

A)Bullish trend
B)Bearish trend
C)Neutral trend
D)None of these