Guardians of the Portfolio- Ashoka Women in Fin

Which of the following factors is most likely to lead to an increase in gold prices?

• Increased geopolitical tensions

• High inflation and strong stock market performance

• Strong economic growth in major economies

• Rising interest rates in the U.S.

What impact would a strengthening U.S. dollar generally have on the price of gold?

• It would have no impact on gold prices

• It would cause gold prices to rise due to increased investor demand

• • It would cause gold prices to fall as gold becomes more expensive in other currencies

• • It would make gold prices fluctuate with no clear direction

Who has recently taken over as the chairman of Tata Trusts?

• Ratan Tata

• • Noel Tata

• Natarajan Chandrasekaran

• Cyrus Mistry

In CAMELS rating system used to assess health of banks, what does the “A” stand for, what aspect does it evaluate?

• Asset Quality – Evaluate quality of a bank's assets and the risk of loan defaults

• Audit Compliance – Measures a bank's adherence to financial audit standards

• Accountability – Assesses the transparency of a bank's financial practices

• Asset Allocation – Analyzes the bank’s asset diversification and investment spread

What is true about the relationship between a bond’s duration and interest rate risk?

• Bonds with a longer duration are less sensitive to interest rate changes

• • Longer duration bonds have higher

  •  price volatility

• Duration has no impact on interest rate sensitivity

•  A shorter duration bond generally has a higher yield than a longer duration bond

Which of the following asset classes would most likely benefit from rising inflation and help an investor protect their purchasing power?

• Long-term government bonds

• Cash in a savings account

• Real estate and commodities

• Corporate debt mutual funds

Leo is planning a wedding and sets a strict budget for the event. However, unexpected costs keep appearing. Which budgeting concept did Leo likely overlook?

• • The sunk cost fallacy

•  The opportunity cost principle

• The 50/30/20 rule

•  A contingency fund

Alex is considering investing in a company with a low debt-to-equity ratio. What might a low debt-to-equity ratio suggest about the company?

• The company may be highly leveraged, increasing its risk of default.

•  The company is relatively conservative in its financing approach, potentially reducing financial risk. 

• The company relies mostly on debt financing, which boosts its return on equity.

• The company has no potential for growth due to limited financing options

How does dollar-cost averaging help investors?

•  maximizes returns through market timing
  

• ensures investments are made at the lowest possible prices

• concentrates investments in a single asset class

  
  

• reduces average cost per share over time

Which indicator is most likely to provide early signals of a potential recession?

• Yield curve inversion

• Consumer Price Index (CPI)

• Unemployment rate

  
  

• Gross Domestic Product (GDP) growth