Quiz 1

Finance Quiz 1

Note: Answers of each question have been given at the end of the quiz.

1. Nifty index shows the value of how many actively traded companies?

20
100
50
80

2. Which bank merged with JPMC after the 2008 financial crises?

Lehman Brothers
Merrill Lynch
Bear Sterns
Fortis

3. Which of the following countries have negative interest rates?

Mozambique
Argentina
United Kingdomd
Sweden

4. What was the cap of issue price of the IRCTC IPO?

120
320
220
520

5. A preliminary prospectus is knows as?

Golden Parachute
Red Hearing
Blue Sky
Green Shoe

6. Which Basel norm is RBI still trying to implement?

Basel I
Basel II
Basel III
Basel IV

7. Which of the following bonds offer investor most protection?

First Mortgage Bonds
Debentures
Subordinated Debentures
Income Bonds

8. The type of lease that includes a third party, a lender is called as which of the following?

Sale and Leaseback
Leveraged Lease
Direct Leasing Arrangement
Operational Lease

9. The forward market is especially well suited to offer hedging protection against?

Translational risk exposure
Transactional risk exposure
Political Risk exposure
Taxation

10. If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?

The stock has low level of risk
The stock offers a high dividend payment ratio
The market is undervaluing the stock
The market is overvaluing the stock

Show me the answers!

Question 1: The answer is 50.

Question 2: The answer is Bear Sterns.

Question 3: The answer is Sweden.

Question 4: The answer is 320.

Question 5: The answer is Red Herring.

Question 6: The correct answer is Basel III.

Question 7: The correct answer is First Mortgage Bonds.

Question 8: The correct answer is Leveraged Lease.

Question 9: The correct answer is Transactional risk exposure.

Question 10: The correct answer is The market is undervaluing the stock.