QUIZ 1

Q1. Which Of the following is not affected by how a firm is financed whether by debt or equity ?
a) Balance Sheet
b) Income Statement
c) Operating Income
d) Net Income

Q2. Default risk is lower in :

a) Treasury bills
b) Government bonds
c) ICICI bonds
d) IDBI bonds

Q3. Which financial statement measures the amount of profits generated by a firm over a given period
of time ?
a) Statement of cash flow
b) Balance sheet
c) Income statement or profit and loss statement
d) Operating income statement

Q4. Which of the following is NOT included in the calculation of the Quick Ratio ?
a) Account Receivable
b) Fixed Assets
c) Account Payable
d) Cash

Q5. The government made a cut in the interest rate by 25 basis points. This means there is a change of :
a) 25%
b) 2.5%
c) 0.025%
d) 0.25%

Q6. GDP is a logical factor to analyze the economy in picking up a stock because it indicates :
a) Inflation or deflation
b) Market value of assets
c) Status of the economy
d) Condition of the stock market

Q7. One of the following factors leads the activity of stock markets :
a) Money supply
b) Per capita income
 c) Unemployment rate
d) Manufacturing and trade

Q8. Mr. A is a daring portfolio manager. He wants to increase the return of his portfolio.He should
choose stocks from a :
a) Defensive industry
b) Industry at a growth stage
c) Industry in the maturity period
d) Industry with more export potential

Q9.The growth in book value per share shows the :

a) Rise in the share price
b) Increase in the physical assets of the firm
c) Increase in the net worth
d) Growth in reserves

Q10. The price-earnings ratio of a stock reflects the :

a) Growth of the company
b) Market mood for the companys stock
c) Earnings retained and invested in the company
d) Dividend paid out for the companys stock