Stocks and Shares Questions and Answers for Bank Exams - 1

Question: 1

A wants to secure an annual income of Rs.1500 by investing in 15% debentures of face value of Rs.100 each and available for Rs.104 each. If the brokerage is 1% then the sum of money he should invest is

(A) Rs. 10504

(B) Rs. 10784

(C) Rs. 15072

(D) Rs. 19642

Ans: A

Income on each debenture = 15% of Rs. 100 = Rs. 15.

Number of debenture required = Rs. $$({1500}/{15})$$ = Rs. 100.

Cost of each debenture

= Rs. (104 + 1% of 104) = (104 + 1.04) = Rs. 105.04.

∴ Total investment = Rs. (105.04 × 100) = Rs. 10504.

Question: 2

Find out the income percent of a buyer on 5% debentures of face value Rs.95 and available in the market for Rs.125.

(A) 2.8%

(B) 3.8%

(C) 4.8%

(D) 5.8%

Ans: B

The market value of a debenture = Rs. 125.

∴ Income on Rs. 125 is Rs. 5.

∴ Income on Rs. 95 is Rs. $$({5}/{125} × 95)$$ = $${19}/{5}$$.

∴ Percent income on the debentures is 3.8%.

Question: 3

A man invested Rs.4455 in Rs.10 shares quoted at Rs.8.25. If the rate of dividend be 12%, his annual income is

(A) Rs. 207.40

(B) Rs. 534.60

(C) Rs. 548

(D) Rs. 648

Ans: D

Number of shares = $$({4455} / {8.25})$$ = 540.

Face value = Rs. (540 x 10) = Rs. 5400.

Annual income = Rs. $$({12}/{100} × 5400)$$ = Rs. 648.

Question: 4

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being $$13{1}/{2}$$%. The rate of interest obtained is

(A) $$12{1}/{2}$$%

(B) $$13{1}/{2}$$%

(C) $$14{1}/{2}$$%

(D) 15%

Ans: D

Investment = Rs. [120 x (50 – 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = Rs. $$({27}/{2} × {1000}/{100})$$ = Rs. 135.

Interest obtained = $$({135} /{900} × 100)$$% = 15%.

Question: 5

A person has deposited Rs.13200 in a bank which pays 14% interest. He withdraws the money and invests in Rs.100 stock at Rs.110 which pays a dividend of 15%. How much does he gain or lose.

(A) Loses Rs. 48

(B) Gains Rs.48

(C) Loses Rs. 132

(D) Gains Rs. 132

Ans: A

Income from bank = 14% of 13200 = Rs. 1848.

Number of shares purchased = Rs. $$({13200} / {110})$$ = Rs. 120.

Income from stock

= (15% of Rs. 100) × 120 = Rs. (15 × 120) = Rs. 1800.

∴ Loss = Rs. (1848 – 1800) = Rs. 48.

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