10 Questions
What is the key difference between investing in equity shares and bonds?
Equity investors are owners of the asset, while bond investors are lenders.
Which of the following asset classes is most likely to generate a predictable, periodic cash flow?
Bonds
What is the key advantage of investing in foreign equity shares compared to domestic equity shares?
Foreign equity shares provide exposure to another currency.
Which of the following asset classes is most likely to provide capital appreciation?
Equity shares
Why are the future returns from equity, real estate and commodities considered highly uncertain?
Because the investor's cash flows or receipts are unknown in these asset classes.
Which of the following statements about the bond market is most accurate?
The bond market is characterized by high liquidity and transparency.
Why are commodities not considered to be a source of intermittent cash flow?
Commodities do not generate any income or dividends.
Which of the following is the most accurate description of a fixed-income security?
A financial instrument that provides a guaranteed, fixed rate of return.
How does the risk profile of investing in gold (a commodity) compare to investing in equity shares?
Investing in gold has a lower risk profile than investing in equity shares.
Which of the following is the most accurate statement about the role of fixed-income securities in an investment portfolio?
Fixed-income securities offer a stable and predictable source of income.
Test your knowledge on investment purity and fixed income, including the importance of purity certificates in metal investments and the concept of fixed income in borrowing money.
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