Module -1 (Important)
1. GDP stands for
A) Gross Domestic Plan
B) Gross Domestic Process
C) Gross Domestic Product
D) None of these
C) Gross Domestic Product
2. Which of these is/are Scheduled Commercial Banks?
a. Union bank of India
b. Industrial bank
c. Standard Chartered bank
d. All of these
d. All of these
3.Which of these is not considered as technological factor under the macro environment factor?
A. Wireless charging
B. Enquire efficiency
C. Security in cryptography
D. None of these
D. None of these
4. Risk appetite generally – when the number of dependent family members increases
A. Increases
B. Decreases
C. Does not change
D. These is no correlation between risk appetite and the number of depended family
B. Decreases
5.Investment made in listed equity stocks provide for
A. Better liquidity
B. Guaranteed capital appreciation
C. Safety of capital
D. all of the above
A. Better liquidity
6.PMVVY investment scheme is for the
A. Senior citizen aged above 60 years of age
B. For minor girl child below 12 years of age
C. For small scale industries
D. None of these
A. Senior citizen aged above 60 years of age
7. You require rs.20 lakhs after three years as down payment for a house. What will be the future value of this goal assuming a rate of inflation of 6.5% p.a?
A. Rs 24.16 lakhs
B. Rs 20 lakhs
C. Rs 89.84 lakhs
D. Rs 16.55 lakhs
A. Rs 24.16 lakhs
8. Liquid assets include
A. Only cash
B. Cash and debtors
C. Cash and debtors(except bad debts)
D. Cash, debtors(except bad debts)
D. Cash, debtors(except bad debts)
9. When current ratio 2:1 an equal increase in current assets and current liabilities would.
A. Increase the current ratio
B. Decrease the current ratio
C. Not change the current ratio
D. None of the these
C. Not change the current ratio
10. Assets are equal to
A. Liabilities + Shareholder’s equity
B. Liabilities + Current Assets
C. Liabilities + Debentures
D. None of these
A. Liabilities + Shareholder’s equity
11. What is the compound interest (CI) on RS.10000 for 2 years at 10% per annum compounded annually?
A. 2100
B. 12100
C. 2000
D. 12000
A. 2100
12. Risk appetite is higher when
A. Life expectancy is smaller
B. Life expectancy is Longer
C. Life expectancy is lower
D. None of the above
B. Life expectancy is Longer
13. Which of these is not a money market instrument?
A. Certificate of deposit
B. Commercial paper
C. Treasury bills
D. Bonds
D. Bonds
14. Securities receipts defined under
A. Securities contracts (Regulation) Act 1956
B. SARFAESI Act
C. Company’s Act 2013
D. None of these
A. Securities contracts (Regulation) Act 1956
15.Imperial bank of india became
A. State bank of india
B. Bank of baroda
C. Punjab national bank
D. Reserve bank of india
A. State Bank of India
16.SEBI was established as statuary body in the year
A. 1993
B. 1994
C. 1992
D. 1995
C. 1992
17. Father of modern economics
A. Adam smith
B. Paul samuelson
C. Alfred marsell
D. Non of these
A. Adam smith
18.Which market are stocks and bonds related?
A. Money market
B. Capital market
C. Commercial bank
D. Equity market
B. Capital market
19. A market for buying and selling new securities for the first time
A. Financial market
B. Capital market
C. Primary market
D. Secondary market
C. Primary market
20. What is the market used by people to do financial transactions?
A. Capital market
B. Commodity market
C. Financial market
D. Service market
C. Financial market
MACD – Moving average convergence/divergence
SMA : simple moving average .
PMYDY- Pradhan Mantri Jan-Dhan Yojana
DICGC- Deposit Insurance and Credit Guarantee Corporation
NEFT- National electronic funds transfer
RTGS- real time gross settlement
IMPS- immediate payment services
PMLVMY – Pradhan Mantri Laghu Vyapari Mandhan Yojana
PMKMY-Pradhan Mantri Kisan Mandhan Yojana
BSE – Bombay Stock Exchange
NSE- National Stock Exchange
REITs : Real Estate investment trusts
AMFI: Association of Mutual funds of india
SIP : Systematic investment plan
EPS : Earnings Per Share
IPO : Initial Public Offering
ELSS: Equity linked savings scheme
NSDL : National Securities Depository Limited
22. A mutual fund is a body corporate registered with
A. SEIB
B. ROC
C. Company law board
D. All of the above
A. SEIB
23. Custom duty comes under which type if tax in India
A. Direct tax
B. Indirect tax
C. Provisional tax
D. None of these
B. Indirect tax
24. RBI was established in the year
A. 1935
B. 1989
C. 1933
D. 1934
A. 1935
25. Saving = ?
A. Income – expenditure
B. Income + expenditure
C. Income/expenditure
D. None of these
A. Income – expenditure
26. Sovereign gold bonds scheme was introduced by the government in the year.
A. 2001
B. 2020
C. 2015
D. 2022
C. 2015
27. Which of the following is financial depository institution?
1. Saving bank
2. Investment bank
3. Finance company
4. Pension fund
1. Saving bank
28.Which body regulates the stock market in india?
1. RBI
2. MFI
3. BSC
4. SEBI
4. SEBI
29. Which schemes invest in long term money market instrument.
1. Debt schemes
2. Equity schemes
3. Cash schemes
4. All
1. Debt schemes
30. Which of the following banks launched the first mutual fund n india?
1. SBI
2. CANARA
3. BANK OF INDIA
4. OVERSEAS BANK
1. SBI
31. Phase one of mutual funds in india?
1. 1964-1987
2. 1987-1993
3. 2003-2004
4. 1993-2003
1. 1964-1987
32. Where buyer and seller deal directly in securities.
1. Primary market
2. Secondary market
3. Tertiary market
4. Direct market
2. Secondary market
33. Income from non-equity funds can be treated as long-term capital investments are held for large amounts ___
1. 4 years
2. 5 years
3. 3 years
4. 1 years
3. 3 years
Module - 2 (Reference)
1. What is the primary purpose of financial planning?
a) To increase current income
b) To achieve financial goals
c) To minimize taxes
d) To speculate in the stock market
b) To achieve financial goals
2. What is the difference between life goals and financial goals?
a) Life goals are broader and encompass personal aspirations, while financial goals are
specific objectives related to money.
b) Life goals are short-term, while financial goals are long-term.
c) Life goals are focused on career success, while financial goals are focused on
personal development.
d) Life goals and financial goals are synonymous.
a) Life goals are broader and encompass personal aspirations, while financial goals are
3. Which of the following is an example of a financial goal?
a) Traveling to Europe for a vacation
b) Becoming a professional athlete
c) Learning a new language
d) Buying a home within five years
d) Buying a home within five years
4. What is the purpose of creating a sample financial plan for a young adult?
a) To track historical spending habits
b) To provide a snapshot of current financial assets
c) To outline a roadmap for achieving financial goals
d) To calculate future retirement benefits
c) To outline a roadmap for achieving financial goals
5. Which of the following would typically be included in a sample financial plan for a young adult?
a) List of favorite hobbies
b) Detailed budget for monthly grocery expenses
c) Savings goals for emergencies and retirement
d) Personal preferences for entertainment choices
c) Savings goals for emergencies and retirement
6. Why is it important for young adults to set financial goals?
a) To impress friends with their financial aspirations
b) To compare their goals with those of their peers
c) To provide a sense of purpose and direction for their finances
d) To meet societal expectations regarding financial success
c) To provide a sense of purpose and direction for their finances
7. Which of the following is a common format for a financial plan?
a) A handwritten letter to oneself
b) A spreadsheet or financial planning software
c) A social media post sharing financial goals
d) A daily journal documenting spending habits
b) A spreadsheet or financial planning software
8. What is the significance of regularly reviewing and adjusting a financial plan?
a) It ensures that financial goals are always easy to achieve.
b) It helps adapt the plan to changing circumstances and priorities.
c) It guarantees immediate financial success without any adjustments.
d) It minimizes the need for future financial planning.
b) It helps adapt the plan to changing circumstances and priorities.
9. What is the primary concern of economics?
a. Maximizing profits
b. Allocating resources efficiently
C. Increasing government intervention
d. Promoting economic inequality
b. Allocating resources efficiently
10. What is the scope of economics?
a. It only deals with individual financial decisions.
b. It encompasses the study of how societies manage limited resources.
C. It focuses exclusively on the stock market.
d. It only concerns itself with the production of goods.
b. It encompasses the study of how societies manage limited resources.
11. Which of the following is a microeconomic concept?
a. Inflation rate
b. Gross domestic product (GDP)
C. Consumer demand for smartphones
d. National unemployment rate
C. Consumer demand for smartphones
12. What is the central concern of microeconomics?
a. The overall health of the national economy
b. The behavior of individual firms and consumers
C. Government fiscal policy
d. International trade agreements
b. The behavior of individual firms and consumers
13. Which of the following is a macroeconomic concept?
a. Supply and demand for coffee in a local café
b. The cost of producing a single automobile
C. National government debt
d. A household’s monthly grocery expenses
C. National government debt
14. What is the primary focus of macroeconomics?
a. Individual household budgets
b. The study of market prices
C. The overall performance of an entire economy
d. Microscopic economic phenomena
15. Which economic concept refers to the total value of all goods and services produced within a country’s borders in a given period?
a. Gross National Product (GNP)
b. Net Exports
C. Gross Domestic Product (GDP)
d. Consumer Price Index (CPI)
C. Gross Domestic Product (GDP)
16. What is the term for the study of how people make choices to satisfy their needs and wants given the scarcity of resources?
a. Sociology
b. Psychology
C. Microeconomics
d. Economics
d. Economics
17. Which economic concept is used to measure the responsiveness of quantity
demanded to a change in price?
a. Elasticity
b. Utility
C. Inflation
d. Opportunity cost
a. Elasticity
18. What does the term “opportunity cost” refer to in economics?
a. The actual cost of a product or service
b. The potential benefit given up when an alternative option is chosen
C. The price at which a product is sold in the market
d. The total cost of production
b. The potential benefit given up when an alternative option is chosen
19. What is the primary concern of economics?
a. Maximizing profits
b. Allocating resources efficiently
C. Increasing government intervention
d. Promoting economic inequality
b. Allocating resources efficiently
20. What is the scope of economics?
a. It only deals with individual financial decisions.
b. It encompasses the study of how societies manage limited resources.
C. It focuses exclusively on the stock market.
d. It only concerns itself with the production of goods.
b. It encompasses the study of how societies manage limited resources.
21. What type of personal needs are often addressed through crowdfunding campaigns?
a. Funding vacations and luxury items
b. Covering medical expenses, education costs, or disaster relief
C. Purchasing new cars and homes
d. Investing in stocks and bonds
b. Covering medical expenses, education costs, or disaster relief
22. What is the central concern of microeconomics?
a. The overall health of the national economy
b. The behavior of individual firms and consumers
C. Government fiscal policy
d. International trade agreements
b. The behavior of individual firms and consumers
23. Which of the following is a macroeconomic concept?
a. Supply and demand for coffee in a local cafe
b. The cost of producing a single automobile
C. National government debt
d. A household’s monthly grocery expenses
C. National government debt
24. Which of the following is the central banking institution in India responsible for monetary policy and currency issuance?
a. RBI (Reserve Bank of India)
b. SBI (State Bank of India)
C. PNB (Punjab National Bank)
d. HDFC Bank
a. RBI (Reserve Bank of India)
25. What is the primary objective of the Nationalization of Banks in India in 1969?
a. To increase competition among banks
b. To privatize all banks
C. To bring banks under government control to serve social and economic objectives
d. To merge all banks into a single entity
C. To bring banks under government control to serve social and economic objectives
26. What is a potential drawback of relying on crowdfunding for personal needs?
a. Limited access to a global audience
b. Difficulty in setting up crowdfunding campaigns
C. Privacy concerns and exposure of personal challenges
d. Guaranteed funding for all campaigns
C. Privacy concerns and exposure of personal challenges
27. Which online platforms are commonly used for crowdfunding for personal needs?
a. Social media platforms
b. News websites
C. E-commerce websites
d. Government websites
a. Social media platforms
28. What is crowdfunding for needs primarily used for?
a. Raising capital for new business ventures
b. Supporting charitable organizations
C. Fundraising for personal needs or emergencies
d. Promoting social causes
C. Fundraising for personal needs or emergencies
29. What is a common tax benefit associated with charitable giving in many countries?
a. Tax penalties for charitable donations
b. Lower credit scores
C. Charitable tax deductions
d. Mandatory charitable contributions
C. Charitable tax deductions
30. What is the primary motivation behind charitable giving for many individuals?
a. To maximize personal wealth
b. To reduce taxes
C. To support causes and organizations they care about
d. To gain ownership stakes in charities
C. To support causes and organizations they care about
31. Which financial metric measures the volatility or variability of investment
returns over time?
a. Standard Deviation
b. Dividend Yield
C. Price-to-Earnings (P/E) Ratio
d. Book Value per Share
a. Standard Deviation
32. Which of the following investment strategies is likely to have the lowest risk?
a. Investing in a single stock of a technology startup
b. Investing in a mix of stocks, bonds, and real estate
C. Putting all savings into a single savings account
d. Speculating on the short-term price movement of a single cryptocurrency
C. Putting all savings into a single savings account
33. In technical analysis, what does a “double top” pattern typically suggest?
a. Strong buying pressure
b. A bullish trend continuation
C. A potential trend reversal to the downside
d. A period of low market activity
C. A potential trend reversal to the downside
34. What does the Debt-to-Equity (D/E) ratio assess in fundamental analysis?
a. The company’s profitability
b. The company’s liquidity
C. The company’s level of financial leverage or risk
d. The company’s market capitalization
C. The company’s level of financial leverage or risk
35. What is the primary focus of fundamental analysis in stock selection?
a. Analyzing technical price charts
b. Evaluating the financial health and performance of a company
C. Predicting short-term price movements
d. Monitoring daily trading volumes
b. Evaluating the financial health and performance of a company
36. What is the primary purpose of the primary market in the financial system?
a. To facilitate the trading of existing securities
b. To issue new securities to raise capital
C. To provide a platform for secondary market transactions
d. To regulate stock exchanges
b. To issue new securities to raise capital
37. What is the role of a stockbroker in the stock market?
a. To regulate the stock market and ensure fair trading
b. To buy and sell stocks on behalf of investors
C. To provide insurance coverage for stock investments
d. To audit financial statements of listed companies
b. To buy and sell stocks on behalf of investors
38. Investor Protection: Which regulatory body in the United States is responsible for overseeing securities markets and protecting investors from fraud and misconduct?
a. Federal Reserve
b. Securities and Exchange Commission (SEC)
C. Department of the Treasury
d. Internal Revenue Service (IRS)
b. Securities and Exchange Commission (SEC)
39. A mutual fund pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. What is the person or entity responsible for managing the fund’s investments called?
a. Shareholder
b. Bondholder
C. Portfolio Manager
d. Stockholder
C. Portfolio Manager
40. Which investment option typically pays periodic interest to bondholders and returns the principal amount at maturity?
a. Stocks
b. Mutual Funds
C. Real Estate
d. Bonds
d. Bonds