Question 1

Which of the following is not true?

Options :

A : The prices of zero coupon bonds fluctuate less than bonds with large coupons.

B : The concept of duration stresses when a bond will make its payments to bondholders.

C : The smaller a bond-s coupon implies a longer duration.

D : A conservative investor will prefer a bond with a smaller duration even though it may have a longer term to maturity.

Answer: A

Question 2

Default risk is

Options :

A : Borrower may not pay principal in time

B : Borrower may not be able to sell the security easily

C : Fluctuation in price due to change in interest rate

D : All of the above

Answer: A

Question 3

The credit balance in Non resident (external) account is exempt from wealth tax provided depositor is a person

Options :

A : Resident in India

B : Resident outside India

C : Resident put not ordinarily resident in India

D : None of the above

Answer: B

Question 4

Which of the following statement is/are correct?

Options :

A : Only (i)

B : Only (ii)

C : Both of the above

D : None of the above

Answer: C

Question 5

The economic environment covers following factors..........

Options :

A : Inflation

B : Unemployment

C : Productivity

D : All the above

Answer: D

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