Amity University 2009 B.A Business Economics model - Question Paper

(a) ADR represents the foreign shares of the company held on deposit by a custodian bank in the 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 ques.

Q34 elaborate the segments of Securities Market? [ one Mark ]
(a) Primary market and Secondary market
(b) New problems market (c) Primary market (d) Secondary market
(e) I am not attempting the ques.

Q35 Which instrument among these is considered the most challenging and rewarding investment option, when compared to other investment options? [ three Marks ]
(a) Equity (b) Fixed Deposit (c) Bonds (d) Treasury Bill
(e) I am not attempting the ques.

Q36 'Bid' means the _____________. [ three Marks ]
(a) Seller's price (b) Traded Price (c) Market price (d) Buyer's price
(e) I am not attempting the ques.

Q37 Profit and Loss account of a company indicates _______. [ two 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 ques.

Q38 Which instrument among these have historically shown to provide the highest returns when invested over long periods? [ three Marks ]
(a) Debentures (b) Equity (c) Fixed Deposit (d) Bank Deposit
(e) I am not attempting the ques.

Q39 The lenders use ______________ ratio to assess debt servicing capacity of a firm. [ two Marks ]
(a) Interest Coverage ratio (b) Debt-Asset Ratio (c) Acid-test Ratio (d) Current Ratio
(e) I am not attempting the ques.

Q40 _______ funds do not have a fixed date of redemption. [ two Marks ]
(a) Open ended funds (b) Close ended funds (c) Diversified funds
(d) Both A and B (e) I am not attempting the ques.

Q41 'Ask' means the ________. [ three Marks ]
(a) Buyer's price (b) Seller's price (c) Market price (d) Traded Price (e) I am not attempting the ques.

Q42 ________________ is maintained by NSE to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the Exchange. [ one Mark ]
(a) Investor Education and Reimbursement Fund (IERF)
(b) Investor Reimbursement Fund (IRF)
(c) Investor Education and Protection Fund (IEPF)
(d) Investor Protection Fund (IPF)
(e) I am not attempting the ques.

Q43 At 10% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after 1 year. [ three Marks ]
(a) Rs.101 (b) Rs. 110 (c) Rs.115 (d) Rs. 109 (e) I am not attempting the ques.

Q44 What is the current value of Rs. 3000 receivable after 2 years at a discount rate of 5% under continuous discounting? [ two Marks ]
(a) Rs. 3150 (b) Rs. 2714.51 (c) Rs. 2850 (d) Rs. 2970 (e) I am not attempting the ques.

Q45 The future value of a Rs.12,000 investment made today, which provide an annual rate of return of 10% per annum, after 1 year should be _________. [ three Marks ]
(a) Rs. 12,200 (b) Rs. 12,500 (c) Rs. 13,200 (d) Rs. 13,100 (e) I am not attempting the ques.

Q46 Nifty index is used in _________. [ one Mark ]
(a) Derivatives (b) Index Funds (c) Exchange Traded Funds (ETFs) (d) All of the above
(e) I am not attempting the ques.

Q47 Demutualisation of stock exchanges refer to _________. [ three Marks ]
(a) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange are segregated from 1 a different
(b) the legal structure of an exchange whereby the ownership and the management at the exchange are segregated from 1 a different
(c) the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange vests in 1 person
(d) None of the above
(e) I am not attempting the ques.

Q48 Which securities can an investor invest in? [ one Mark ]
(a) Shares (b) Debentures (c) Mutual Funds (d) All of the above (e) I am not attempting the ques.

Q49 _____________ provide the buyer the right, but not the obligation to sell a provided volume of underlying asset at a provided price on or before a provided future date. [ one Mark ]
(a) Put choice (b) Forward (c) Future (d) Call choice (e) I am not attempting the ques.

Q50 The holders of which instrument are members of the company and have voting rights? [ three Marks ]
(a) Treasury Bill (b) Commercial Paper (c) Debenture (d) Equity (e) I am not attempting the question

Earning:   Approval pending.