Free Practice Questions for IBBI Securities & Financial Assets

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card

100+ Questions

100% Free

Loading practice questions...

Same family resources

Explore More IBBI Registered Valuer Examinations (India)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

IBBI Registered Valuers Exam — Land & Building Asset Class

Practice Questions100 questions

IBBI Registered Valuers Exam — Plant & Machinery Asset Class

Practice Questions100 questions

Exam Review

Key Facts: IBBI Securities & Financial Assets Exam

MCQs in the exam

IBBI Valuation Examination FAQs

120 minutes

Test duration

IBBI Valuation Examination FAQs

60%

Minimum marks to pass

IBBI Valuation Examination FAQs

25%

Negative marking per wrong answer

IBBI Valuation Examination FAQs

IBBI Securities & Financial Assets valuation exam is a 2-hour, 100-mark online MCQ test with 90 questions including case studies. A candidate must score 60% to pass and 25% negative marking applies.

Sample IBBI Securities & Financial Assets Practice Questions

Try these sample questions to review concepts for the IBBI Securities & Financial Assets exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1If a 5% fall in the price of a product leads to a 10% rise in quantity demanded, the demand is classified as

A.elastic

B.inelastic

C.unitary elastic

D.perfectly inelastic

Explanation: Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Here, elasticity = 10% / 5% = 2, which is greater than 1. When the absolute value of elasticity exceeds 1, demand is elastic, meaning consumers are highly responsive to price changes.

2Which of the following best describes the law of demand in a normal market?

A.Price and quantity demanded move together

B.Price and quantity demanded move in opposite directions

C.Higher income always raises demand

D.Supply changes cause identical demand changes

Explanation: The law of demand states that, ceteris paribus, there is an inverse relationship between price and quantity demanded: as price falls, quantity demanded rises, and vice versa. This relationship is represented by a downward-sloping demand curve. The rationale is the income effect (lower prices increase real purchasing power) and substitution effect (cheaper goods become more attractive relative to alternatives).

3In macroeconomics, gross domestic product (GDP) at market prices includes

A.Only goods sold in markets

B.Only income earned by residents abroad

C.The value of all final goods and services produced within a country in a given period

D.Only government spending

Explanation: GDP at market prices measures the total market value of all final goods and services produced within a country's geographical boundaries in a given period. Intermediate goods are excluded to avoid double counting, and the valuation uses market prices including indirect taxes net of subsidies. The key word is 'final' — only end-use goods and services count.

4When the Reserve Bank of India (RBI) reduces the repo rate, the intended effect is usually

A.Higher borrowing costs and lower inflation

B.Reduced money supply

C.Appreciation of the rupee

D.Lower borrowing costs and higher economic activity

Explanation: The repo rate is the rate at which the RBI lends short-term funds to commercial banks. When the RBI reduces the repo rate, banks' cost of borrowing falls, which typically transmits to lower lending rates for businesses and consumers. Lower borrowing costs stimulate investment and consumption, boosting economic activity. The RBI uses repo rate changes as its primary monetary policy tool to manage inflation and growth.

5A persistent rise in the general price level is best defined as

A.inflation

B.deflation

C.stagflation

D.disinflation

Explanation: Inflation is a sustained rise in the general price level of goods and services over time, eroding purchasing power. It is typically measured by indices such as the Consumer Price Index (CPI) or Wholesale Price Index (WPI). A moderate inflation rate is generally considered normal in a growing economy, while hyperinflation or deflation can be destabilising.

6Which market structure is characterised by a single seller with no close substitutes?

A.monopolistic competition

B.monopoly

C.oligopoly

D.perfect competition

Explanation: A monopoly is a market structure with a single seller and no close substitutes for the product. Entry barriers — such as patents, government licences, control of essential resources, or economies of scale — prevent competitors from entering. The monopolist has significant price-setting power, though it is still constrained by the demand curve. In contrast, monopolistic competition has many sellers with differentiated products, oligopoly has a few dominant sellers, and perfect competition has many sellers of identical products.

7If the Indian rupee depreciates against the US dollar, Indian exports to the US tend to

A.become more expensive

B.be unaffected

C.become cheaper and more competitive

D.fall due to higher import costs

Explanation: A weaker rupee means US buyers pay fewer dollars for Indian goods, boosting export competitiveness.

8The price elasticity of supply measures how responsive

A.quantity demanded is to a change in income

B.price is to a change in taxes

C.consumers are to advertising

D.quantity supplied is to a change in price

Explanation: Price elasticity of supply measures the percentage change in quantity supplied in response to a percentage change in price. The formula is Es = (% change in quantity supplied) / (% change in price). A higher elasticity means producers can quickly adjust output when prices change, which depends on factors like spare capacity, inventory levels, and the time horizon considered. Supply is generally more elastic in the long run when producers can adjust all inputs.

9Fiscal policy in India is primarily implemented by

A.the Ministry of Finance through the Union Budget

B.the Reserve Bank of India

C.SEBI

D.the Competition Commission of India

Explanation: Fiscal policy involves government spending, taxation and borrowing, implemented through the budget.

10In an economy, the opportunity cost of producing more capital goods today is

A.more consumer goods today

B.fewer consumer goods today

C.lower future growth

D.zero because capital is free

Explanation: Opportunity cost is the value of the next best alternative forgone when a choice is made. Because resources (labour, capital, materials) are scarce, producing more capital goods (machinery, infrastructure) requires diverting resources away from consumer goods. The opportunity cost of additional capital goods today is therefore the consumer goods that could have been produced with those same resources. This trade-off is illustrated by the production possibility frontier.

About the IBBI Securities & Financial Assets Exam

The IBBI Registered Valuers Examination for Securities & Financial Assets is a 2-hour online proctored MCQ test. It covers valuation of equity, debt and derivatives, financial statement analysis, M&A, and legal frameworks.

Exam sponsor: Insolvency and Bankruptcy Board of India (IBBI). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

90 multiple-choice questions (80 of 1 mark + 10 of 2 marks, including case-study questions)

Time Limit

120 minutes (2 hours)

Passing Score

60% of total marks

Exam / Certification Fees

INR 1,500 per enrolment

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

10%

Principles of Economics

Economic concepts relevant to valuation

15%

Financial System & Corporate Finance

Indian financial system and corporate finance

15%

Valuation Concepts & Principles

Fundamental valuation concepts

25%

Valuation of Securities & Financial Assets

Equity, debt, derivatives and M&A valuation

20%

Legal & Regulatory Framework

Relevant Indian laws and valuation standards

15%

Case Studies

Case-based application of securities valuation

Preparing for the IBBI Securities & Financial Assets Exam

What You Need to Know

Passing score: 60% of total marks
Assessment: 90 multiple-choice questions (80 of 1 mark + 10 of 2 marks, including case-study questions)
Time limit: 120 minutes (2 hours)
Exam / certification fees: INR 1,500 per enrolment Official sources

Using Our Practice Resources

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

IBBI Securities & Financial Assets: Suggested Study Strategy

1Master DCF, comparable company and asset-based valuation for equity and debt

2Review SEBI, RBI and FEMA regulations related to securities

3Work through case studies involving business combinations and M&A

Frequently Asked Questions

How many questions are in the Securities & Financial Assets valuation exam?

There are 90 MCQs: 80 carry 1 mark each and 10 carry 2 marks each (including case studies).

What is the negative marking?

A wrong answer attracts a negative mark of 25% of the marks assigned to that question.

What is the passing criterion?

A candidate must secure at least 60% of the total marks to pass.