Investments

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List of Investment MCQs

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

A. Loan
B. Investment
C. Liability
D. Assets

2. What is a Treasury Bill?

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
D. An unsecured money market instrument

3. What is National Savings Certificate?

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
D. An unsecured money market instrument

4. 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
D. An unsecured money market instrument

5. What is a Commercial Paper?

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
D. An unsecured money market instrument
6. What is an Unsecured Promissory Note?

A. A fixed-income investment scheme


B. A financial product commonly sold by banks, thrift institutions, and credit
unions
C. An obligation for payment without any property securing the payment
D. A legal agreement that requires a borrower to provide security for a loan

7. What is a Secured Promissory Note?

A. A fixed-income investment scheme


B. A financial product commonly sold by banks, thrift institutions, and credit
unions
C. An obligation for payment without any property securing the payment
D. A legal agreement that requires a borrower to provide security for a loan

8. Which of the following is a type of Investment?

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

9. What is an Economic Investment?

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


practices
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

10. What is Investment Banking?

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


practices
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

11. 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

12. Who is authorised to decide the basis of allotment?

A. Manager
B. Banks
C. Registrar
D. Government

13. Who is an Insurance Underwriter?

A. Underwriters that assess the risk of insuring a home, car or driver


B. Most commonly used underwriters in the loan industry
C. Underwriter that determines if the loan is safe for all parties
D. Underwriters that work with initial public offerings (IPOs)

14. Who is a Mortgage Underwriter?

A. Underwriters that assess the risk of insuring a home, car or driver


B. Most commonly used underwriters in the loan industry
C. An underwriter that determines if the loan is safe for all parties
D. Underwriters that work with initial public offerings (IPOs)

15. Who is a Loan Underwriter?

A. Underwriters that assess the risk of insuring a home, car or driver


B. Most commonly used underwriters in the loan industry
C. An underwriter that determines if the loan is safe for all parties
D. Underwriters that work with initial public offerings (IPOs)

16. Who is a Securities Underwriter?

A. Underwriters that assess the risk of insuring a home, car or driver


B. Most commonly used underwriters in the loan industry
C. An underwriter that determines if the loan is safe for all parties
D. Underwriters that work with initial public offerings (IPOs)

17. The risk-free investment comprises of which of the following?

A. Equity in a house
B. Gold
C. Machines
D. Bonds

18. What has greatly increased the cost of security trading?

A. Unsecured Promissory Note


B. Internet
C. Mutual Funds
D. Commercial Banks

19. In which market do the investment bankers operate?

A. Primary Market
B. Secondary Market
C. Third Market
D. Fourth Market

20. Which risk increases when the cost of the Internet rises?

A. Business Risk
B. Financial Risk
C. Inflation Risk
D. Liquidity Risk

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