Institutional Investors MCQs

1. Who is considered an institutional investor?
(A) Individual investor
(B) Pension fund, insurance company, or mutual fund
(C) Student trader
(D) Retail investor

2. Which of the following is NOT an institutional investor?
(A) Hedge fund
(B) Sovereign wealth fund
(C) Mutual fund
(D) Individual investor

3. Institutional investors typically manage:
(A) Large pools of money
(B) Small individual savings
(C) Household budgets only
(D) None of the above

4. Which investor type has greater bargaining power in markets?
(A) Retail investor
(B) Institutional investor
(C) Student trader
(D) Small entrepreneur

5. Which of the following is an example of an institutional investor?
(A) Public pension fund
(B) Bank trust department
(C) Insurance company
(D) All of the above

6. Institutional investors often get:
(A) Lower brokerage fees
(B) Access to bulk trades
(C) Early access to IPO allocations
(D) All of the above

7. Institutional investors usually follow:
(A) Fundamental and technical analysis
(B) Casual investment decisions
(C) Emotional investment behavior
(D) None of the above

8. Sovereign wealth funds are examples of:
(A) Retail investors
(B) Institutional investors
(C) Venture capitalists
(D) Private traders

9. Institutional investors are often called:
(A) Market makers
(B) Big players
(C) Smart money
(D) All of the above

10. Which is a key feature of institutional investors?
(A) Professional management
(B) Access to research
(C) Diversification
(D) All of the above

11. The largest investors in global markets are:
(A) Institutional investors
(B) Retail investors
(C) Students
(D) Housewives

12. Which of the following is often influenced by institutional investors?
(A) Stock prices
(B) Market liquidity
(C) Corporate governance
(D) All of the above

13. Institutional investors are regulated to ensure:
(A) Investor protection
(B) Market stability
(C) Transparency
(D) All of the above

14. Which type of investor can significantly move stock prices with bulk trades?
(A) Retail investor
(B) Institutional investor
(C) Student trader
(D) Individual investor

15. Which of the following is NOT an advantage for institutional investors?
(A) Access to research
(B) Economies of scale
(C) Higher transaction costs
(D) Negotiation power

16. Institutional investors contribute to:
(A) Market efficiency
(B) Liquidity
(C) Long-term stability
(D) All of the above

17. Which of the following is an institutional investor in India?
(A) LIC
(B) EPFO
(C) Mutual funds
(D) All of the above

18. Foreign Institutional Investors (FIIs) are:
(A) Foreign retail investors
(B) Overseas institutions investing in domestic markets
(C) Individual traders abroad
(D) Only hedge funds

19. Domestic Institutional Investors (DIIs) include:
(A) Indian banks
(B) Insurance companies
(C) Mutual funds
(D) All of the above

20. Which group provides large-scale funding to companies?
(A) Retail investors
(B) Institutional investors
(C) Farmers
(D) Small traders

21. Institutional investors generally prefer:
(A) Diversified portfolios
(B) Speculative stocks only
(C) Penny stocks only
(D) None of the above

22. Institutional investors are sometimes criticized for:
(A) Short-termism
(B) Herd behavior
(C) Market dominance
(D) All of the above

23. Which institutional investor type pools money from small investors?
(A) Mutual fund
(B) Hedge fund
(C) Pension fund
(D) Insurance fund

24. Institutional investors are also known as:
(A) Whales
(B) Anchors
(C) Bulk investors
(D) All of the above

25. Which institution is the largest institutional investor in India?
(A) EPFO
(B) LIC
(C) SBI Mutual Fund
(D) UTI

26. Hedge funds are classified as:
(A) Institutional investors
(B) Retail investors
(C) Informal investors
(D) None of the above

27. Which type of investor typically participates in private equity deals?
(A) Institutional investor
(B) Retail investor
(C) Student investor
(D) Farmer

28. Which of the following benefits do institutional investors enjoy?
(A) Bulk discounts on brokerage
(B) Preferential IPO allotments
(C) Influence on company management
(D) All of the above

29. Institutional investors can impact corporate governance by:
(A) Voting rights
(B) Demanding accountability
(C) Engaging with management
(D) All of the above

30. Which of the following is a foreign institutional investor?
(A) BlackRock
(B) Vanguard
(C) Fidelity Investments
(D) All of the above

31. Institutional investors’ strategies often include:
(A) Long-term investing
(B) Derivatives hedging
(C) Sector rotation
(D) All of the above

32. Institutional investors can improve markets by:
(A) Providing liquidity
(B) Increasing efficiency
(C) Reducing volatility
(D) All of the above

33. Which is a disadvantage of institutional investors’ dominance?
(A) Market manipulation risk
(B) Reduced retail participation
(C) Overconcentration
(D) All of the above

34. The role of institutional investors is important in:
(A) Pension systems
(B) Capital markets
(C) Economic growth
(D) All of the above

35. Which institutional investor provides life insurance-based investments?
(A) LIC
(B) EPFO
(C) Mutual fund
(D) Sovereign fund

36. Which group invests heavily in government bonds?
(A) Retail investors
(B) Institutional investors
(C) Students
(D) Households

37. The voting power of institutional investors in AGMs can:
(A) Influence decisions
(B) Be ignored
(C) Be symbolic only
(D) Have no impact

38. Institutional investors in India are regulated by:
(A) SEBI
(B) RBI
(C) Ministry of Finance
(D) All of the above

39. Which institutional investors are tax-exempt in many countries?
(A) Pension funds
(B) Mutual funds
(C) Hedge funds
(D) Insurance funds

40. Which of the following institutional investors is known for activist investing?
(A) Hedge funds
(B) Pension funds
(C) Mutual funds
(D) Insurance companies

41. Institutional investors provide stability by:
(A) Long-term commitments
(B) Regular inflows of funds
(C) Systematic investing
(D) All of the above

42. Which of the following is an institutional investor in the U.S.?
(A) CalPERS (California Public Employees’ Retirement System)
(B) Walmart
(C) Amazon
(D) Tesla

43. Institutional investors usually invest in:
(A) Equity markets
(B) Debt markets
(C) Alternative assets
(D) All of the above

44. Which of the following is a risk of institutional investor dominance?
(A) Systemic risk
(B) Herd behavior
(C) Overexposure
(D) All of the above

45. Which of the following statements about institutional investors is TRUE?
(A) They control large sums of money
(B) They influence financial markets
(C) They are professionally managed
(D) All of the above

46. Which institutional investor manages employee retirement contributions?
(A) Pension fund
(B) Hedge fund
(C) Sovereign wealth fund
(D) Insurance company

47. Institutional investors in India investing abroad are called:
(A) ODI (Overseas Direct Investors)
(B) FIIs
(C) DIIs
(D) NRIs

48. Institutional investors sometimes invest in startups through:
(A) Venture capital funds
(B) Hedge funds
(C) Private equity funds
(D) All of the above

49. Institutional investors differ from retail investors because they:
(A) Invest on behalf of others
(B) Manage pooled resources
(C) Have large-scale strategies
(D) All of the above

50. Which institutional investors provide funding for infrastructure projects?
(A) Sovereign wealth funds
(B) Pension funds
(C) Insurance funds
(D) All of the above