TFC Quiz 1

For investment, a project is accepted when:

• Net present value is greater than zero

• Internal Rate of Return is greater than cost of capital

• Profitability index is more than one

• All of the above

Most common emotions that drive decision making in the stock market are ___________

• Hope and fear

• Greed and fear

• Greed and hope

• Happiness and guilt

The liberalization of Indian Banking and Regulation was done based on recommendation of _______

• R Gandhi Committee

• Narsimham Comittee

• Khusro Comittee

• None of the above

In behavioral economics, what cognitive bias refers to the tendency of individuals to rely on the first piece of information they receive when making decisions?

• Anchoring bias

• Confirmation bias

• Availability bias

• Recency bias

Which of the following regulates Credit Rating agencies in India?

• RBI

• SEBI

• Ministry of Finance

• ICRA

The "Black Monday" stock market crash occurred on which date?

• October 19, 1987

• September 29, 2008

• July 31, 2002

• Dec 4, 1996

In the context of personal finance, what does the term "FIRE" stand for?

• Financial Independence, Retire Early

• Frugal Investment, Regular Earnings

• Fixed Income, Retirement Essentials

• Future Investment, Risk Evaluation

If a bank has to borrow funds from RBI for a long term, which among the following will be applicable?

• Repo rate

• Reverse repo rate

• Bank rate

• None of the above

What term is used to describe the risk that changes in foreign exchange rates may negatively impact an international investment's value?

• Market risk

• Currency risk

• Credit risk

• Liquidity risk

Horse racing, game of cards, lottery are the typical examples of ______________

• Investment

• Gambling

• Speculation

• Arbitrage