Table of Contents

## MCQ on Profit and Loss

Business Mathematics MCQ questions with answers PDF – 1

1. The formula for Profit is :

(a) C.P. – S.P.

(b) M.P. – C.P.

(c) S.P. – C.P.

(d) None of These

**Answer (c) S. P. – C.P.**

2. The formula for Loss is :

(a) C.P. – S.P.

(b) M.P. – C.P.

(c) S.P. – C.P.

(d) None of These

**Answer – (a) C. P. – S. P.**

3. Which of the Following is a discount?

(a) Cash Discount

(b) Trade Discount

(c) Bill Discount

(d) All of These

**Answer – (d) All of these**

4. Profit percentage is always calculated on:

(a) Marked Price

(b) Selling Price

(c) Cost Price

(d) None of These

**Answer – (c) Cost Price**

5. If S.P. is Half of C.P. then Loss percentage is :

(a) 20%

(b)30%

(c) 25%

(d) 50%

**Answer – (d) 50%**

6. Trade discount is calculated on :

(a) Marked Price

(b) Cost Price

(c) Selling Price

(d) None of These

**Answer – (a) Marked Price**

7. Marked price is the sum of Cost price and :

(a) Profit

(b) loss

(c) Margin of Profit

(d) None of These

**Answer – (c) Margin of Profit**

8. Name of the Price at which an article quoted:

(a) Marked Price

(b) Sale Price

(c) Invoice Price

(d) None of These

**Answer – (a) Marked Price**

9. The Marked price of an article which rules in the market at a Particular time is:

(a) Marked Price

(b) Selling Price

(c) Cost Price

(d) Market Price

**Answer – (d) Market Price**

10. Tender cost is the estimation on :

(a) Materials

(b) Project

(c) Labour

(d) None of These

**Answe (b) Project**

11. By selling a T.V at 8,100 a dealer makes a loss of 10%,. The cost price of the T.V. is

(a) ₹ 8,500,

(b)₹9,000,

(c)₹9,800,

(d) ₹10,000

**Answer (b)₹9,000,**

12. If the cost price of a computer is 18,750 and Selling Price is 20,250, the profit percentage is?

(a) 10%

(b) 8%

(c) 12%

(d) 18%

**Answer (b) 8%**

13. Geeta made a profit of 25% on Cost Price by selling an article. How much it represents on selling price?

(a) 16. 3%

(b) 25%

(c) 33%

(d) 20%

**Answer (d) 20%**

14. If the cost price is 83.33 and the selling price is 100, the gain percentage is,

(a) 20%

(b) 25%

(c) 15%

(d) 13.66%

**Answer (a) 20%**

15. If the marked price of a book is 210 and trade discount is 10%, the selling price of the book is,

(a) ₹ 200

(b) ₹195

(c) ₹189

(d)₹ 179

**Answer (c) ₹189**

16. If the marked price of a ready made garment is ₹ 1,250 and the trader allows two successive discounts of 8% and the 12%, the selling price of the garments is,

(a)₹ 1,150

(b) ₹1,050

(c) ₹1,012

(d) ₹1,000

**Answer (c) ₹1,012**

17. Ramesh, a vegitable shopkeeper sold tomatto at a loss of 61%. If the cost price of 4 the tomatto is 16 per kg, the selling price of the tomatto per kg is,

(a) 14

(b) 15

(c) 14.50

(d) 15.25

**Answer (b) 15**

18. An article was sold at a profit of 450 which is 12% of the selling price. The cost price of the article is,

(a) ₹4,500

(b) ₹4,850

(c) ₹4,950

(d) ₹ 5,000

**Answer (c) ₹4,950**

19. Mr. A sold an article at a profit of 30 which is 15% of the selling price. Then the cost price of the article is,

(a) ₹ 200

(b) ₹ 170

(c) ₹ 180

(d) ₹ 210

**Answer (b) ₹ 170**

20. If a fruit seller bought 16 oranges for a certain price and sold 12 oranges at the price he had purchased, his gain or loss per cents,

(a) 33. 33-%

(b) 20%

(c) 10%

(d) 23. 3%

**Answer (a) 33. 33-%**

## MCQ on Partnership

Business Mathematics MCQ questions with answers PDF – 2

1.Mininum number of Partner required to start a partnership business is

(A) 2

(B) 10

(C) 4

(D) 20

**Answer: (A) 2**

2.Type of agreement required to form a partnership business is

(A) Written agreement

(B) Oral agreement

(C) Written or oral agreement

(D) None of them

**Answer: (C) Written or oral agreement**

3. In partnership, partners liabilities are

(A) Unlimited

(B) Limited to the capital of the business

(C) Limited

(D) Both A and C

**Answer: (A) Unlimited**

4. Is a partnership firm considered as a separate legal entity?

(A) No

(B) Yes

(C) Don’t Know

(d) None of the above

**Answer: (A) No**

5. What happens when interest on drawings is charged to partner?

(A) Credited to partner’s current a/c

(B) Not shown in current account

(C) Debited to partner’s capital a/c

(D) None of the above

**Answer: (C) Debited to partner’s capital a/c**

6.The written agreement of partnership is known as:

(A) Partnership contract

(B) Agreement

(C) Partnership deed

(D) Partnership Act

**Answer: (C) Partnership deed**

7. How will the Partners share their profit In absence of a partnership agreement?

(A) Unequal

(B) Equally

(C) It will depend on the experience of a partner

(D) It will depend on a partner’s capital

**Answer: (B) Equally**

8. Which is not a feature of a partnership business?

(A) Ease of formation

(B) Limited liability

(C) Limited life

(D) Mutual agency

**Answer: (B) Limited liability**

9. In which kind of partnership one partner has unlimited liability and other partner have limited liability?

(A) Partnership-at-will

(B) Limited liability partnership

(C) General partnership

(D) Particular partnership

**Answer: (B) Limited liability partnership**

10. Which types of partnership have no agreement in terms of the duration of partnership?

(A) Partnership-at-will

(B) Limited partnership

(C) General partnership

(D) Particular partnership

**Answer: (C) General partnership**

11. A and B are partners sharing profit and losses equally, if A gets 5% profit then how many percent B will get:

(a) 5%

(b) 10%

(c) 8%

(d) 12%

**Answer (a) 5%**

12. M and S are partners sharing profits and losses in the ratio of 3: 2. They admitted R allowing him 1/5th of the total profit. Then the new profit sharing ratio will be?

(a) 12:8:5

(b) 5:4:3

(c) 6:5:4

(d) 2:2:1

**Answer (a) 12:8:5**

13. X, Y and Z are partners with Capital of 15,000, 10,000 and 5,000 respectively. If the profit earned is 12,000, then what shall be the X’s share in that profit?

(a) 4,000

(b) 6,000

(c) 5,000

(d) None of these

**Answer (a) 4,000**

14. X and Y are partners agreed to share profit and loss as per capital ratio and started business with a total capital of 1,00,000. If profit earned during the year is ₹ 40,000 and X’s share on the profit is 25,000, find the amount of capital invested by X.

(a) ₹ 52,500

(b) 62,500

(c) 75,000

(d) 60,000

**Answer (b) 62,500**

15. P, Q and R were partners sharing profits and losses in the ratio of 5: 4:2 respectively. R retires due to ill health. In the absence of any further agreement what shall be new profit sharing ratio.

(a) 5:2

(6) 3:2

(c) 5:4

(d) 3:1

**Answer (c) 5:4**

16. A and B enter into a partnership with capitals in the ratio of 15: 16. A withdraws from the business after 9th months. If they received profits in the ratio of 45: 64. then, B’s capital was used for how many months

(a) 8 months

(b) 10 months

(c) 6 months

(d) 12 months

**Answer (d) 12 months**

17. C began a business with 8,000. After 2 moths, D joined him with a certain capital. At the end of the year, the profits were divided in the ratio of their effective capital i.e. 3:2. Find how much money was invested by D.

(a) 52,500

(b) 68,000

(c) 75,000

(d) 60,000

**Answer (b) 68,000**

18. P’ starts a business with 15,000 and is joined afterward by Q with 45,000. At the end of the year the profits are equally divided. When did Q join the business?

(a)After 8 months

(b) after 10 months

(c) after 6 months

(d) After 12 months

**Answer (a) After 8 months**

19. A and B starts a business. A invests 7,875 and B5,250. B manages the business and gets 20% of the profits and the rest is divided between them proportionally. Find the total profits, if A gets 1,248.

(a) 2400

(b) 2500

(c) 2100

(d) 2600

**Answer (d) 2600**

20. A began a business with 8,000. After 4 months B joined with a certain capital. At the end of the year, in 4: 1. ratio they were distributed their profits sharing ratio .How much did B invest?

(a) 3100

(b) 3400

(c) 2800

(d) 3000

**Answer (d) 3000**

## MCQ on Logarithms

Business Mathematics MCQ questions with answers PDF – 3

1. The power of a given basic value that produces desired number or value is :

(a) Anti-logarithm

(b) Logarithm

(c) Common Logarithm

(d) Natural Logarithm

**Answer (b) Logarithm**

2. The logarithm of the number 1 to any base is:

(a) 1

(b)10

(c) 0

(d) 100

**Answer (c) 0**

3. The logarithm of any quantity to the same base is:

(a) 1

(b)10

(c) 0

(d) 100

**Answer (a) 1**

4. The sign of the mantissa in a logarithm.

(a) Positive

(b) Negative

(c) Either of two

(d)None of the above

**Answer (a) Positive**

5. Who has invented Natural logarithm?

(a) Henry Briggs

(b) John Napier

(c) Gabriel Cramer

(d) David Hilbert

**Answer (b) John Napier**

6. Who has invented Common logarithm?

(a) Henry Briggs

(b) John Napier

(c) Gabriel Cramer

(d) David Hilbert

**Answer (a) Henry Briggs**

7. If standard form of a number is x = A x 10^{n} then what is A?

(a) A >1

(b) A<1

(c) A≤1≤10

(d) 1≤ A <10

**Answer (d) 1≤ A <10**

8. What is the value of log_{2} 64?

(a) 6

(b) 10

(c) 0

(d) 8

**Answer (a) 6**

9. What is the value of log _{√2} 4 ?

(a) 2

(b)4

(c) 6

(d) 8

**Answer (b)4**

10. What is the value of log_{10} 0.0001 ?

(a) 2

(b) 10

(c) 4

(d) 8

**Answer (c) 4**

11. Logarithm of 625 to the base 5 in

(a) 4

(b)3

(c) 2

(d) None

**Answer (a) 4**

12. The logarithm of 0.1024 to the base 0.4 is;

(a) 4

(b)3

(c) 5

(d) None

**Answer (c) 5**

13. The logarithm of 784 to the base 2√7 is:

(a) 4

(b) 2

(c) 3√7

(d) 2√7

**Answer (a) 4**

14. The logarithm of 1/32 to the base 2 is:

(a) -3

(b) -4

(c) -5

(d) None

**Answer (c) -5**

15. The characteristics of the log .0087 is

(a) -2

(b) -3

(c) 2

(d) 3

**Answer (b) -3**

16. If log 3=0.4771, then the value of log_{10} 81 is:

(a) 1.9084

(b) 1.3286

(c) 0.9084

(d) 0.3286

**Answer (a) 1.9084**

17. If log 3=0.4771 then the number digits in 3^{50} is:

(a) 23

(b) 24

(c) 25

(d) 50

**Answer (b) 24**

18. What is the value of x if log_{81}x = 1.5?

(a) 729

(b) 829

(c) 81

(d) 819

**Answer (a) 729**

19. If log 5=0.6990 and log 3=0.4771, then log 45 is:

(a) 1.8751

(b) 1.9085

(c) 2.1303

(d) 1.6532

**Answer (d) 1.6532**

20. The sum of 2.5386 and 3.0899 is:

(a) 5.6285

(b) 1.6285

(c) 0.5513

(d) None

**Answer (b) 1.6285**

## MCQ on Simple and Compound interest

Business Mathematics MCQ questions with answers PDF – 4

1. The money borrowed or lent for a certain period is:

(a) Amount

(b) Principal

(c) Interest

(d) Loan

**Answer (b) Principal**

2. The extra amount paid by the borrower to the lender is:

(a) Amount

(b) Principal

(c) Interest

(d) Loan

**Answer (c) Interest**

3. The interest calculated at a fixed rate on the original amount of principal borrowed is:

(a) Amount

(b) Principal

(c) Simple Interest

(d) Compound Interest

**Answer (c) Simple Interest**

4. The interest calculated on accumulated sum of the principal.

(a)Compound Interest

(b) Principal

(c) Simple Interest

(d) Amount

**Answer (a)Compound Interest**

5. The difference between the amount and the principal is:

(a) Amount

(b) Principal

(c) Interest

(d) Time

**Answer (c) Interest**

6. The simple interest on sum for one year is 60. What will be the compound on the same sum and at the same rate of interest for one year ?

(a) 66

(b) 60

(c) 70

(d) 76

**Answer (b) 60**

7. The time in which a sum of 10,000 fetches an interest of ₹ 3,500 at 5% is:

(a) 6 year

(b) 7 years

(c) 8 years

(d) 10 years

**Answer (b) 7 years**

8. The gradual decrease in the value of assets is:

(a) Appreciation

(b) Amortization

(c) Depreciation

(d) Depletion

**Answer (c) Depreciation**

9. What sum will amount to Rs.1000 in 2 years @5% p.a. compounded half yearly?

(a) 509.50

(b) 809.50

(c) 409.10

(d) 905.80

**Answer (d) 905.80**

10. The number of years in which a sum doubles itself at 4% p.a. compound is:

(a) 10 years

(b) 15 years

(c) 20 years

(d) 18 years

**Answer (d) 18 years**

11. In how many years the Simple interest on 600 at 10% rate will become 300?

(a) 5

(b) 3

(c) 2

(d) 6

**Answer (a) 5**

12. Rs.300 is lent on 8% simple interest. What amount will be repaid after 2.5 years?

(a) 400

(b) 500

(c) 350

(d) 360

**Answer (d) 360**

13. What is the rate of interest per annum if a sum fetches its one-fourth on simple interest at the end of five years?

(a) 5%

(b) 2.5%

(c) 4%

(d) None.

**Answer (a) 5%**

14. A sum of money doubles itself in 8 years at simple interest. What will be the rate of interest p.a.?

(a) 11.5

(b) 12

(c) 12.5

(d) 11.3

**Answer (c) 12.5**

15. How long it will take to increase the value of the sum by 40%, if the sum is invested at 5% p.a. simple interest?

(a) 5 years

(b) 6 years

(c) 7 years

(d) 8 years

**Answer (d) 8 years**

16. What will be the interest on 1,500 invested for 2 year at 5% compoun ?

(a) 158.25

(b) 153.25

(c) 143.25

(d) 140.25

**Answer (b) 153.25**

17. A man borrowed 3,125 and at the end of 2 years he repaid 4,500. What is rate of interest charged by the lender if it is compounded annually?

(a) 30%

(b) 25%

(c) 20%

(d) 15%

**Answer (c) 20%**

18. If the total interest earned after 2 years at the rate of 12% p.a. compounded annually is 254.40, then the principal amount is

(a) 1,200

(b) 1,100

(c) 1,000

(d) 900

**Answer (c) 1,000**

19. If the difference between C.I. and S.I. is 1,440 when the rate of interest is 12% per annum for a period of 2 years, what is the amount of investment?

(a) 1.5 lakh

(b) 1 lakh

(c) 2.5 lakh

(d) 1.2 lakh

**Answer (b) 1 lakh**

20. What would be the S.I. if the C.I. is 2,100 invested on a certain sum for 2 years at 10% per annum.

(a) 10,000

(b) 20,000

(c) 12,000

(d) 18,000

**Answer (b) 20,000**

## MCQ on Annuities

Business Mathematics MCQ questions with answers PDF – 5

1. Any periodical payment of a fixed amount made at a regular interval :

(a) Annuity

(b) Installment

(c) Fee

(d) Deferred Annuity.

**Answer (a) Annuity**

2. The person obliged to make annuity payment is:

(a) Annuity holder

(b) Annuity Receiver

(c) Annuitator

(d) None of the above

**Answer (c)Annuitator**

3. A lump sum consideration against which Annuity Payments are granted is:

(a) Annuity value

(b) Present value

(c) future value

(d) None of the above

**Answer (b) Present value**

4. The lumpsum amount which is recovered after a certain period against such regular payments (Annuity):

(a) Annuity value

(b) Present value

(c) future value

(d) Accumalated value

**Answer (d) Accumulated value**

5. A fund which is created through periodical contribution for a certain period to meet the expenditure like redemption of debt or replacement of asset:

(a) Annuity Fund

(b) Endowment Fund

(c) Sinking Fund

(d) None of the above

**Answer (c) Sinking Fund**

6. A fund which is created by setting aside a lump sum of money to grow with compound interest to pay for an award, Prize, Scholarship or grant for certain or forever:

(a) Annuity Fund

(b) Endowment Fund

(c) Sinking Fund

(d) None of the above

**Answer (b) Endowment Fund**

7. Annuity which is paid for ever without any stop is:

(a) Annuity Certain

(b) Deferred Annuity

(c) Annuity Contingent

(d) Annuity perpetual

**Answer (d) Annuity perpetual**

8. Annuity which is payable till the happening of a certain event is:

(a) Annuity Certain

(b) Deferred Annuity

(c) Annuity Contingent

(d) Annuity perpetual

**Answer (c) Annuity Contingent**

9. Annuity which is payable at the end of the year is:

(a) Annuity Certain due immediate

(b) Deferred Annuity

(c) Annuity Contingent

(d) Annuity perpetual

**Answer (a) Annuity Certain due immediate**

10. Annuity which is payable at the beginning of the year:

(a) Annuity Certain due immediate

(b) Deferred Annuity

(c) Annuity Contingent

(d) Annuity due prepaid immediate

**Answer (d) Annuity due prepaid immediate**

11. Installments paid at the end of the year are an Annuity refers to:

(a) Annuity certain due immediate.

(b) Annuity due prepaid immediate.

(c) Contingent Annuity.

(d) Deferred Annuity.

**Answer (a) Annuity certain due immediate**

12. What is the future value (amount) of an annuity of 1000 payable for 20 year at the

rate of 8% p.a. compound interest?

(a) 36,868

(b) 40,996

(c) 45,700

(d) 51,160

**Answer (c) 45,700**

13. The present value of perpetuity of Rs.900 a year @ 9% p.a. is:

(a) 9,000

(b) 90

(c) 10,000

(d) 9

**Answer (c) 10,000**

14. A bank pays interest, compounded quarterly, what equal deposits have to be made at the end of each quarter for three years, if we went to have Rs.1,500 at the end of three years:

(a) 110.05

(b) 115.03

(c) 120.03

(d) 125.30

**Answer (b) 115.03**

15. Find the prosent value of an annuity of Rs.1,000 for 14 years reckoning interest at 5% p.a. compound :

(a) 10,000

(b) 9,000

(c) 9,900

(d) 10,500

**Answer (c) 9,900**

16. Determine the amount of an annuity of Rs.3,000 for 15 years allowing compound interest at 4 ¼ % p.a. :

(a) 61,200

(b) 60,000

(c) 55,000

(d) 62,100

**Answer (a) 61,200**

17. Mr. X borrows Rs.6000 upon a contract to repay the same in 20 equal annual instalments beginning with the end of the first year. Determine the annual payment charging interest at 6 p.a. compound:

(a) 525

(b) 523.11

(c) 520.20

(d) 560.10

**Answer (b) 523.11**

18. Find the present value of an annuity of Rs. 3,000, for 15 years allowing interest at 4 ½ % p.a.:

(a) 30,000

(b) 33,000

(c) 32,200

(d) 34,200

**Answer (c) 32,200**

19. A man creates an endowment fund to provide for an annual prize of 500 out of its income. If the fund is invested in 2 ½ % p.a. , the amount of the fund is:

(a) 25,000

(b) 30,000

(c) 32,200

(d) 20,000

**Answer (d) 20,000**

14. The present value of an annuity of Rs.1,000, for 11 years to begin with the maturity of a life insurance policy at the end of 4 years reckoning interest at 5% p.a. compound is:

(a) 7,178

(b) 7,718

(c) 7,700

(d) 7,600

**Answer (b) 7,718**

## MCQ on Discounting of Bills of exchange

1. The Simple interest on the present value of a bill is:

(a) True Discount

(b) Banker’s Discount

(c) Cash Discount

(d) Trade Discount

**Answer – (a) True Discount**

2. The Simple interest on the Bill value of a bill is:

(a) True Discount

(b) Banker’s Discount

(c) Cash Discount

(d) Trade Discount

**Answer – (b) Banker’s Discount**

3. The Simple interest on the True discount of a bill is:

(a) True Discount

(b) Banker’s Discount

(c) Banker’s Gain

(d) Bill Value

**Answer – (c) Banker’s Gain**

4. Excess of Banker’s discount over True discount is :

(a) True Discount

(b) Banker’s Discount

(c) Cash Discount

(d) Banker’s Gain

**Answer – (d) Banker’s Gain**

5. The date which falls after addition of the term of the bill is :

(a) Nominal due date

(b) Legal due date

(c) After date bill

(d) After sight bill

**Answer – (a) Normal due date**

6. The kind of bill where the nominal date is calculated from the date of acceptance of

the bill is:

(a) Nominal due date

(b) Legal due date

(c) After date bill

(d) After sight bill

**Answer – (d) After sight bill**

7. The kind of bill where the nominal date is calculated from the date of drawal of the bill is:

(a) Nominal due date

(b) Legal due date

(c) After date bill

(d) After sight bill

**Answer – (c) After date bill**

8. The date which falls after addition of 3 days of grace in the nominal due date is:

(a) Nominal due date

(b) Legal due date

(c) After date bill

(d) After sight bill

**Answer – (b) Legal due date**

9. The period between the date of retirement of Bill and the legal due date is:

(a) Nominal due date

(b) Legal due date

(c) Discounting period

(d) After sight bill

**Answer – (c) Discounting period**

10.The Bills of exchange is regulated by an Act :

(a) Negotiable instrument Act 1881

(b) Bills of exchange Act 1882

(c) Bills of exchange Act 1949

(d) None of the Above

**Answer – (a) Negotiable instrument act 1881**

11. If The banker’s discount due for 4 months @ 15% = 420.Then The true discount is:

(a) 460

(b) 400

(c) 380

(d) 360

**Answer – (b) 400**

12.The banker’s gain due for 3 years @ 12% per annum is 270. The banker’s

discount is:

(a) 2010

(b) 1020

(c) 920

(d) 760

**Answer – (b)1020**

13.The present worth of a sum = Rs.576 , the banker’s gain = Rs. 16. The true discount is

(a) 86

(b) 72

(c) 42

(d) 96

**Answer – (d) 96**

14.If the legal due date of a bill falls on a usual bank holiday, the Bill is payable on:

(a) The day before

(b) The day after

(c) The same day

(d) Two days after

**Answer – (a) The day before**

15. The true discount of a bill is equal to

(a)BVxRxT/100+RxT

(b) BV-BD

(c) B.V./1+RxT

(d) PV (1+ Rx T)

**Answer – (a) BVxRxT/100+RxT**

16. The banker’s discount due 2 years, hence is 11/10 of true discount.

Then the rate of percentage is

(a) 15%

(b) 10%

(c) 5%

(d) 5.5%

**Answer – (c) 5%**

17. The banker’s discount is Rs. 72 and the true discount is Rs. 60. The sum due is:

(a) 360

(b) 460

(c) 540

(d) ₹ 440

**Answer – (a) 360**

18.The Banker’s gain on a bill due one year hence at 12% per annum is 60. The true

discount is :

(a) ₹ 720

(b) 360

(c) 540

(d) 500

**Answer – (d) 500**

19.The present worth of ₹ 930 due 3 years @ 8% per annum is

(a) 950

(b) 850

(c) 750

(d) 700

**Answer – (c) 750**

20. If true discount on ₹ 360 due 4 years hence is ₹ 60, then rate of interest is :

(a) 5%

(b) 7.5%

(c) 5.5%

(d) 4.5%

**Answer – (a) 5%**

## MCQ on Stocks and Shares

1. An instrument acknowledging the indebtedness is:

(a) Debenture

(b) Share

(c) Stock

(d) Dividend

**Answer – (a) Debenture**

2. A share in the share capital of a company is:

(a) Debenture

(b) Share

(c) Stock

(d) Dividend

**Answer – (b) Share**

3. A statutory body created by law to undertake some public enterprises is:

(a) Company

(b) Corporation

(c) Joint Venture

(d) Partnership

**Answer – (b) Corporation**

4. A unit of capital which is formed by consolidation or conversion of fully paid shares or securities into one instrument is:

(a) Debenture

(b) Share

(c) Stock

(d) Dividend

**Answer – (c) Stock**

5. A speculator who always anticipate raise in price and go on buying the instruments is:

(a) Bear

(b) Speculator

(c) Bull

(d) None of these

**Answer – (c) Bull**

6. The commission which is payable to the broker.

(a) Dividend

(b) Interest

(c) Stock

(d) Brokerage

**Answer – (d) Brokerage**

7. The commission which is payable to the broker for the guarantted sell of some

shares or securities is:

(a) Dividend

(b) Underwriting Commission

(c) Stock

(d) Brokerage

**Answer -(b) Underwriting Commission**

8.The paid up value of an instument issued is:

(a) Dividend value

(b) Share value

(c) Stock value

(d) Brokerage

**Answer – (c) Stock value**

9. The proportions of profit distributed to share holders according to their holdings is:

(a) Dividend value

(b) Share value

(c) Stock value

(d) Brokerage

**Answer – (a) Dividend value**

10. The percentage of earning per share to the investment value per share is:

(a) Dividend value

(b) Share value

(c) Stock value

(d) Yield rate

**Answer – (d) Yield rate**

11.Market value of ₹ 3,000 stock at ₹ 95 at 6 1/4% per annum is:

(a) ₹ 2800

(b) ₹ 2850

(c) ₹ 2750

(d) ₹ 2550

**Answer – (b) ₹ 2850**

12. How much stock 5% at 89 1/8 should be sold to get ₹ 2670, if the brokerage is 1/8:

(a) ₹ 3000

(b) ₹ 3200

(c) ₹ 3250

(d) ₹ 3500

**Answer – (a) ₹ 3000**

13. A man buys a stock of ₹ 5600 at 85 and sells it when its market value raises to 93. His gain is:

(a) ₹ 450

(b) ₹ 445

(c) ₹ 448

(d) ₹ 440

**Answer – (c) ₹ 448**

14. If annual income on 6% stock is ₹ 9,000 then value of stock is:

(a) ₹ 16,000

(b) ₹ 15,140

(c) ₹ 12,540

(d) ₹ 10,800

**Answer – (a) 16,000**

15. A 6% stock yields 8%. Then the market value of the stock is:

(a) ₹ 48

(b) ₹ 96

(c) ₹ 75

(d) ₹ 108

**Answer – (c) 75**

16. By investing ₹ 1620 in 8% stock. Mr. Z earns ₹ 135. The stock is then quoted at:

(a) ₹ 106

(b) ₹ 96

(c) ₹ 80

(d) ₹ 108

**Answer – (b) ₹ 96**

17. A company declares 7% dividend. If Mr. Ram has 77 shares of face value ₹ 10 each, then how much dividend will he get?

(a) ₹ 110

(b) ₹ 77

(c) ₹ 53.90

(d) ₹ 11.22

**Answer – (c) ₹ 53.90**

18. A 9% stock yields 8%. Then the market value of the stock is:

(a) ₹ 112.50

(b) ₹ 100

(c) ₹ 96.50

(d) ₹ 92

**Answer – (a) 112.50**

19. Mr. A buys ₹ 5000 stock at 96 and sells it when its price rises to 98. His gain is:

(a) ₹ 100

(b) ₹ 120

(c) ₹ 140

(d) ₹ 150

**Answer – (a) ₹ 100**

20. What would be the rate of interest obtained by investing in 4% stock at ₹ 80 is:

(a) 5%

(b) 6%

(c) 4.5%

(d) 6.5%

**Answer – (a) 5%**