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Investment MCQ Questions & Answers

Investment MCQs : This section focuses on the "Investment". These Multiple Choice Questions (MCQs) should be practiced to improve the Investment skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

Investment requires a sacrifice of some present asset, such as time, money, or effort.

A. Yes
B. No

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Question 2

In Capital Market Line every investment is

A. Finitely divisible
B. Infinitely divisible
C. Both a & b
D. None of the above

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Question 3

Investment is the dedication of an asset to attain an increase in value over a period of time.

A. Yes
B. No

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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

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Question 5

Investments would score high only if there is a protection to

A. Real estate
B. Preferred stock
C. Government bonds
D. Common stock

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Question 6

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

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Question 7

In finance, the purpose of investing is to generate a return from the invested asset.

A. True
B. False

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Question 8

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

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Question 9

An investor invests in assets known as a

A. Securities
B. Block of Assets
C. Portfolio
D. None of the above

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Question 10

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

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