Interest
and Annuity
MCQ with
Answer
1. An annuity the enforcement of which is
delayed for a certain period is :
(i) Immediate annuity
(ii) Deffered annuity
(iii) Annuity due
(iv) Annuity prepaid
Ans : (ii) Deffered
annuity
2. The person entitled to receive the annuity
payment is :
(i) Annuitator (ii) Annuitant
(iii) Drawer (iv) Annuity
Ans : (i) Annuitator
3. An annuity which is payable at the beginning
of each period :
(i) Annuity due
(ii) Dffered annuity
(iii) Perpetual annuity
(iv) Immediate annuity
Ans : (iv) Immediate annuity
4. Annuity which becomes due for payment at the endof each
period :
(i) Deffered annuity
(ii) Perpetual annuity
(iii) Annuity due
(iv) Annuity prepaid
Ans : (iii) Annuity due
5. Annuity that is payable for ever without stop:
(i) Immediate annuity
(ii) Perpetual annuity
(iii) Annuity due
(iv) Annuity certain
Ans : (ii) Perpetual annuity
6. Periodical payment of a fixed amount
payable at regular interval.
(i) Interest (ii) Instalment
(iii) Annuity (iv) Premium
Ans : (iii) Annuity
7. An annuity which is payable till the
happening of a certain contigent event is :
(i) Deferred annuity
(ii) Contigent annuity
(iii) Immediate annuity
(iv) Perpetuity
Ans : (ii) Contigent annuity
8. Annuity payable for a certain number of
time is :
(i) Perpetual annuity
(ii) Defered annuity
(iii) Caontigent annuity
(iv) Annuity certain
Ans : (iv) Annuity certain
9. The interval between two consecutive
annuity payaments are :
(i) Fixed
(ii) Variable
(iii) Partly Fixed
(iv) Partly Variable
Ans : (i) Fixed
10. The present value of 1020 due 3 months
hence at 8% per annum is :
(i) 900 (ii) 996
(iii) 1000 (iv) 1010
Ans : (iii) 1000
11. B. D. is :
(i) > T. D. (ii) < T. D.
(iii) = T. D. (iv) = B.G.
Ans : (ii) < T. D.
12. The person to whom the payment of the bill
is to be made is called.
(i) Drawer (ii) Drawee
(iii) Holder (iv) Payee
Ans : (iv) Payee
13. The bankers discount on 2600 due 6
months hence at 8% p.a. is :
(i) 208 (ii) 104
(iii) 260 (iv) 130
Ans :(ii) 104
14. The difference between B.D. and T.D. is :
(i) B.V. (ii) B.G.
(iii) P.V. (iv) D.V.
Ans : (ii) B.G.
15. True discount is interest on :
(i) B.V. (ii) P.V.
(iii) D.V. (iv) B.G.
Ans : (ii) P.V.
16. Banker’s gain is interest on :
(i) B.V. (ii) T.D.
(iii) P.V. (iv) B.V.
Ans : (ii) T.D.
17. The nominal due date of a bill drawn on 14th
August 2016 payable after 4 months is :
(i) 14th November 2016
(ii) 17th November 2016
(iii) 15th November 2016
(iv) 16th November 2016
Ans : (i) 14th November 2016
18. A bill of exchange is a/an :
(i) Unconditional order
(ii) Unconditional promise
(iii) Conditional Order
(iv) Qualified promise
Ans : (i) Unconditional order
19. The true discount on a bill of 5100 for 3
months at 8% p.a. is :
(i) 100 (ii) 105
(iii) 110 (iv) 120
Ans : (i) 100
20. The banker’s discount on a bill of 5100
for 3 months at 8% p.a. is :
(i) 100 (ii) 102
(iii) 108 (iv) 408
Ans : (ii) 102
21. The party who accepts a bill is :
(i) Drawer
(ii) Drawee
(iii) Payee
(iv) Holder in due course
Ans : (ii) Drawee
22. If B.D. is 525 and T.D. is 500, then the
B.V. is :
(i) 10,000 (ii) 10,200
(iii) 10,500 (iv) 11,000
Ans : (iii) 10,500
23. The legal due data of a bill drawn on 24th
March 2020 for 6 months after date is
(i) 24.09.20 (ii) 21.09.20
(iii) 26.09.20 (iv) 27.09.20
Ans : (iv) 27.09.20
24. The unexpired period of a bill due on
31.03.20 but retired on 17.01.20 is :
(i) 70 days (ii) 72 days
(iii) 73 days (iv) 75 days
Ans : (iii) 73 days
25. By investing 1920 in 8% stock. Mr. X earns
160. The stock is then
quoted at :
(i) 106 (ii) 96
(iii) 80 (iv) 108
Ans : (ii) 96
26. 6% stock at par cum dividend will be quoted at
(i) 106 (ii) 100
(iii) 94 (iv) 112
Ans : (i) 106
27. 8% stock at 10% discount cum dividend will
be quoted at :
(i) 100 (ii) 90
(iii) 98 (iv) 118
Ans : (iii) 98
28. The amount of stock which can be brought
by investing 4900 in 5% stock at 98 is :
(i) 4900 (ii) 5000
(iii) 5500 (iv) 4800
Ans : (ii) 5000
29. A stock is said to be at pur when :
(i) M.V. > S. V. (ii) M.V. < S. V.
(iii) M. V. = S. V. (iv) M.V. = C.V
Ans : (iii) M. V. = S. V.
30. The amount required to buy 7% 1000 stock
at 8% discount :
(i) 800 (ii) 820
(iii) 900 (iv) 920
Ans : (iv) 920
31. Annual income from 9500 5% stock is :
(i) 425 (ii) 450
(iii) 475 (iv) 525
Ans : (iii) 475
32. Commission payable by a speculative seller
to the broker is known as :
(i) Backwardition (ii) Forwardition
(iii) Brokerage (iv) Contago
Ans : (iv) Contago
33. Commission payable by speculative buyer to the broker is
:
(i) Backwardition (ii) Forwardition
(iii) Stepwardition (iv) Contago
Ans : (i) Backwardition
34. The amount to be realised by selling 3000
5% stock at 95 is :
(i) 2650 (ii) 2750
(iii) 2850 (iv) 2950
Ans : (iii) 2850
35. In ex-dividend quotation the next dividend
is received by :
(i) Buyer
(ii) Seller
(iii) Broker
(iv) Both buyer & seller
Ans : (ii) Seller
36. In security trading stamp duty is paid by :
(i) Buyer
(ii) Seller
(iii) Boker
(iv) Both by buyer and seller
Ans :(iv) Both by buyer and seller
37. If annual income on 6% stock is 9000 then
the value of stock is :
(i) 15,000 (ii) 16,000
(iii) 18,000 (iv) 20,000
Ans : (i) 15,000
38. Yeild from 3.75% stock at 10% discount is :
(i) 4% (ii) 4.17%
(iii) 5% (iv) 5.17%
Ans : (ii) 4.17%
39. The dividend on 5%, 5000 stock at 10%
premium is :
(i) 200 (ii) 250
(iii) 255 (iv) 500
Ans : (ii) 250
40. The income of a broker from 80,000 4%
stock at 90 contago 3% is :
(i) 2400 (ii) 2700
(iii) 3200 (iv) 3600
Ans : (i) 2400
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