41. Which order allows buying/selling at the current market price?
a) Market order
b) Limit order
c) Stop-loss order
d) Good-till-cancelled order
Answer:
a) Market order
Explanation:
A market order is an instruction given to a broker to buy or sell an asset immediately at the best available current market price.
42. The call money market deals with:
a) Long-term securities
b) Short-term lending between banks
c) Buying and selling of stocks
d) Foreign exchange transactions
Answer:
b) Short-term lending between banks
Explanation:
The call money market is an interbank market where surplus funds are lent and borrowed on an extremely short-term basis, usually for one day.
43. Which of the following increases working capital needs?
a) Longer production cycle
b) Quick inventory turnover
c) Cash sales only
d) Advance payments from customers
Answer:
a) Longer production cycle
Explanation:
A longer production cycle means that funds are tied up in raw materials and work-in-progress for an extended period, thus increasing the total working capital requirement.
44. Which of the following is considered an essential goal that Financial Planning helps to
achieve?
a) Increasing advertising expenditure
b) Building an emergency fund
c) Expanding the product line rapidly
d) Reducing the workforce
Answer:
b) Building an emergency fund
Explanation:
A core goal of strategic financial planning is ensuring adequate liquidity and reserves (an emergency fund) to cover unexpected financial shortfalls or business interruptions.
45. A market for newly issued securities is called:
a) Secondary market
b) Futures market
c) OTC market
d) Primary market
Answer:
d) Primary market
Explanation:
The primary market is the segment of the capital market where governments and companies raise capital by issuing new, original securities directly to investors.
46. The speed of a CPU is mainly determined by which of the following factors?
a) RAM size and Hard Disk speed
b) Number of transistors and clock speed
c) Number of input devices connected
d) Size of the power supply unit
Answer:
b) Number of transistors and clock speed
Explanation:
A CPU’s processing capability and speed are fundamentally dictated by its architecture (number/density of transistors) and its clock rate (measured in GHz).
47. Which of the following types of memory is the fastest and directly accessible by the CPU?
a) RAM
b) ROM
c) Cache Memory
d) Hard Disk
Answer:
c) Cache Memory
Explanation:
Cache memory is a small, extremely fast type of volatile memory located directly on or close to the CPU chip, making it significantly faster to access than standard RAM.
48. Which protocol is responsible for encrypting data transmitted over a secure website
(HTTPS)?
a) HTTP
b) TCP/IP
c) SSL/TLS
d) FTP
Answer:
c) SSL/TLS
Explanation:
Secure Sockets Layer (SSL) and its successor Transport Layer Security (TLS) are the cryptographic protocols used to encrypt data and secure the HTTPS connection.
49. Which network device works at the Data Link Layer of the OSI model and is used to divide a network into smaller collision domains?
a) Router
b) Switch
c) Hub
d) Repeater
Answer:
b) Switch
Explanation:
A network switch operates at Layer 2 (Data Link Layer) and intelligently forwards data frames based on MAC addresses, effectively separating collision domains on each port.
50. Which of the following best describes firmware?
a) Software that runs inside the operating system
b) A combination of application software and hardware components
c) A type of system software that does not require updates
d) Pre-installed software embedded into a hardware device
Answer:
d) Pre-installed software embedded into a hardware device
Explanation:
Firmware is a specific class of computer software that provides the low-level control for a device’s specific hardware and is permanently embedded into its non-volatile memory.
