MCQs on Investment

Investing can be defined as the method of placing down a definite aggregate of money, in a plan or scheme, project, to produce profit or income out of it in prospect. Investing objects at gathering money, by saving it aside, to spend it on multiple investment avenues, in the anticipation of gaining more money.

Given below are important MCQs on investment to analyse your understanding of the topic. The answers are also given for your reference.

Investment MCQs

Question 1

If there is an increase in interest rates than the fixed interest rate of the corporate bond will

A) Return to the corporation

B) Decrease in value

C) Remain unchanged

D) Increase in value

Answer B

Question 2

Which one of the following is shown first when the assets are arranged in the order of their liquidity?

A) Investment

B) Cash in hand

C) Debtors

D) None of the above

Answer B

Question 3

An investor invests in assets known as a

A) Securities

B) Block of Assets

C) Portfolio

D) None of the above

Answer C

Question 4

Over the period, investors determine the compound growth rate of an investment by

A) Arithmetic median

B) Arithmetic mean

C) Calculus mean

D) Geometric mean

Answer D

Question 5

Investors agree to invest in high- risk investments if only

A) There are any true speculations

B) The predicted return is satisfactory for taking a risk

C) There are no safe options except for holding cash

D) The return is short

Answer B

Question 6

In Capital Market Line every investment is

A) Finitely divisible

B) Infinitely divisible

C) Both a & b

D) None of the above

Answer B

Question 7

Investments would score high only if there is a protection to

A) Real estate

B) Preferred stock

C) Government bonds

D) Common stock

Answer C

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