# Stocks and Shares Quiz Set 006

### Question 1

What will be my annual income if I invest Rs. 6050 in a 9% stock at Rs. 121?

A

Rs. 450.

B

Rs. 550.

C

Rs. 350.

D

Rs. 650.

Soln.
Ans: a

The required income is $9/121$ × 6050 = Rs. 450.

### Question 2

How much cash is realized by selling Rs. 1100 of 12% stock at a discount of 7%? Take the brokerage to be 2%.

A

Rs. 1001.

B

Rs. 1101.

C

Rs. 901.

D

Rs. 1201.

Soln.
Ans: a

If Rs. 100 stock is sold, the amount realized is $(100 - \text"discount" - \text"brokerage")$ = $(100 - 7 - 2)$. So cash realized by selling Rs. 1100 stock is $(100 - 7 - 2)/100$ × 1100 = Rs. 1001.

### Question 3

An amount of Rs. 2482 is invested in 5% stock. The investor earns Rs. 146. What is the market value of the stock?

A

Rs. 85.

B

Rs. 185.

C

Rs. 135.

D

Rs. 285.

Soln.
Ans: a

Rs. 146 is earned when Rs. 2482 is invested. So, Rs. 5 will be earned if the investment is $2482/146$ × 5 = Rs. 85.

### Question 4

Mr. M buys Rs. 50(face value) shares paying 4% dividend. If his investment is getting him an interest of Rs. 2%, what is the market value of the share?

A

100.

B

110.

C

115.

D

120.

Soln.
Ans: a

Dividend on share of Rs. 50 is $4/100$ × 50.
Rs. 2 is earned on an investment of Rs. 100.
So the dividend $4/100$ × 50 is earned on $100/2$ × $4/100$ × 50 = Rs. 100.

### Question 5

Mr. X invests Rs. 10500 in 9% stock at Rs. 90. How much will he earn?

A

Rs. 1050.

B

Rs. 1150.

C

Rs. 950.

D

Rs. 1250.

Soln.
Ans: a

His earning = $9/90$ × 10500 = Rs. 1050. 