Question 1

The markets for funds traded in currencies other than the currency of the trading country are referred to as

Options :

A : off-shore banking centres.

B : international financial centres.

C : the world market.

D : Eurocurrency markets.

Answer: D

Question 2

Amount of liability of payment of gratuity is calculated at the rate of

Options :

A : One month’s wage for each completed year of service

B : 20days wages for each completed year of service

C : Half a month’s wage for each completed year of service

D : 15 day’s wage for each completed year of service

Answer: D

Question 3

Consider two stocks, A and B

The returns on the stocks are perfectly negatively correlated. What is the expected return of a portfolio comprising of stocks A and B when the portfolio is constructed to drive the standard deviation of portfolio return to zero?

Options :

A : 22.24

B : 20.48

C : 19.57

D : 24.62

Answer: B

Question 4

Purpose of budget is ____________

Options :

A : Spend money wisely

B : Reach financial goals

C : Prepare for financial emergencies

D : All of the above

Answer: D

Question 5

If one earns 10% on investment but inflation is 2%, real rate of return is

Options :

A : 10%

B : 8%

C : 7.84%

D : 7.70%

Answer: C