Financial Services MCQs : This section focuses on the "Financial Services". These Multiple Choice Questions (MCQs) should be practiced to improve the Financial Services skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
————— includes all activities involved in the transformation of savings intoinvestment.
A. Financial system
B. Financial service
C. Economic system
D. Saving system
Question 2
Underwriting of shares by a financial intermediary is a kind of ————— activity.
A. Fee based
B. Fund based
C. Both of these
D. None of these
Question 3
————— services are mainly provided to foreign investors.
A. Custodial services
B. Financial services
C. Factoring services
D. None of these
Question 4
Term lending institutions are ————— market intermediaries.
A. Money market
B. Bill market
C. Capital market
D. None of these
Question 5
The minimum net worth for the first category of merchant banker is Rs. —————
A. 2 crore
B. 5 crore
C. 1crore
D. 10 crore
Question 6
A merchant banker can claim a charge —————% as the commission for the wholeissue.
A. 5
B. 10
C. 2.5
D. 0.5
Question 7
————— fund invests in highly liquid securities like commercial paper.
A. Equity fund
B. Balanced fund
C. Income fund
D. Money market mutual fund
Question 8
The company which sets up a mutual fund is called —————
A. Fund company
B. Sponsor
C. Originator
D. Obligator
Question 9
The small investors’ gateway to enter into big companies is —————
A. Equity shares
B. Debentures
C. Preference shares
D. Mutual fund
Question 10
The process of selling trade debts of a client to a financial intermediary is called ———
A. Bill discounting
B. Factoring
C. Securitisation
D. Materialisation
Question 11
The idea of providing factoring services was first thought of in India by —————
A. Tandem Committee
B. Malhotra committee
C. Vaghul committee
D. None of these
Question 12
The central theme of forfaiting is the purchasing of ————— by a financial servicecompany.
A. Trade bills
B. Export bills
C. Import bills
D. All of these
Question 13
In India, forfaiting is done by ————— bank
A. Foreign bank
B. RBI
C. Commercial bank
D. EXIM bank
Question 14
The minimum size of venture capital fund is Rs. —————
A. 1 crore
B. 5 crore
C. 10 crore
D. 2 crore
Question 15
Venture capital is originated in —————
A. India
B. France
C. Britain
D. USA
Question 16
————— is considered to be the father of venture capital.
A. Dariot
B. Vaghul
C. Modigliani
D. Jimmy carter
Question 17
In the implementation stage of a project, venture capital firms provide —————finance
A. Mezzanine finance
B. Seed finance
C. Start up
D. All of these
Question 18
Find the odd one out
A. Commercial paper,
B. Share certificate,
C. Certificate of deposit,
D. Treasury bill.
Question 19
The process of managing the sales ledger of a client by a financial service company iscalled factoring
A. Factoring
B. Forfaiting
C. Bill discounting
D. None of these
Question 20
The best suited fund to the business people is
A. income fund,
B. balanced fund,
C. growth fund,
D. None of these.
Question 21
Mutual funds are very popular in
A. USA,
B. UK,
C. Japan,
D. India
Question 22
In India, the company which actually deals with the corpus of the mutual fund is called
A. sponsor company,
B. trustee company,
C. asset management company
D. Mutual fund company. ,
Question 23
Trade debts have to be assigned in favour of the financing company under
A. discounting,
B. forfaiting,
C. factoring,
D. All of these.
Question 24
Under factoring the factor acts in the capacity of
A. an agent of his client,
B. a trustee,
C. a holder for value,
D. An administrator.
Question 25
The first bank in India to start factoring business is
A. Canara bank,
B. SBI,
C. Punjab National Bank,
D. Allahabad Bank.
Question 26
The inflation free instrument is _____________
A. Option bond
B. Variable rate bond
C. Index-linked guilt bond
D. Deep discount bond
Question 27
Financial derivatives are mainly used for ______________
A. Speculative activities
B. Creating more risks
C. Hedging risks.
D. Earning income
Question 28
In an option contract, if the option can be exercised only at the time of maturity, it. is called_____
A. Double option
B. American option
C. Put option.
D. European option
Question 29
The predetermined price at which an underlying asset has to be bought or sold in. anoption contract is called ________
A. Option price.
B. Exercise price
C. Spot price
D. Future price
Question 30
Combination of forwards by two counterparties with opposite but matching need iscalled
A. Swap
B. Option
C. Forwa
Question 31
The first Indian Bank to set up Merchant Banking division in India is ___________
A. UCO Bank
B. State Bank of India
C. ICICI.
D. Punjab National Bank
Question 32
A very long tenure lease applicable to immovable properties is ____________
A. Leverage lease
B. Conveyance lease
C. Consumer leasing
D. Balloon lease.
Question 33
When the lessee is allowed to exchange equipment leased out whenever the original assethas to be sent to the lessor for some repair or maintenance, such type of lease is called _____
A. Wrap lease
B. Import lease
C. Swap lease.
D. Leveraged lease
Question 34
Refactoring charges have to be paid in the case of ___________
A. Maturity factoring
B. With recourse factoring
C. Invoice factoring
D. Full service factoring
Question 35
Under forfaiting the client is able to get credit facility to the extent of ____________
A. 100 % of the value of the export bill
B. 80% of the value of the export bill.
C. 75% of the value of the export bill
D. 90% of the value of the export bill
Question 36
The concept of securitisation is associated with ___________
A. Capital market
B. Money market.
C. Debt market.
D. Foreign exchange market.
Question 37
In the case of securitisation, the trade debts and receivables are mostly in the nature of _____
A. Short-term.
B. Medium – term
C. Long-term
D. Both medium term and long term
Question 38
Under securitisation, selected pool of assets are ‘passed through’, for converting theminto securities, to another institution called:.
A. Originator.
B. Special purpose vehicle
C. Credit rating company
D. Servicing agent.
Question 39
Which one of the following is a short term debt instrument?.
A. Preferred stock certificate
B. Pass through certificate
C. Asset based commercial certificate
D. Principal only certificate
Question 40
Mr. Manoj is buying shares in a mutual fund that invests in companies that are all withinthe same industry. What type of mutual fund has he purchased?
A. A sector fund
B. A small cap fund.
C. An index fu
Question 41
The asset generally not suitable for securitisation is ______________
A. Receivables from government department
B. Trade receivables
C. Hire purchase finance receivables
D. Mortgage loans
Question 42
A market for existing financial securities that are currently traded between investors iscalled the____________ market
A. Fundamental.
B. Efficient.
C. Secondary.
D. Primary.
Question 43
________ variety of mutual fund is known as “Nest Eggs”
A. Balanced Funds
B. Fund of funds
C. Money Market Mutual fund
D. Growth oriented funds
Question 44
Mr. Praveen is thinking about buying an investment. The investment option that he isthinking about buying is an investment where investors pool their money. One of the key features is that it is managed by professional managers. What investment is Mr. Praveen thinking about purchasing?.
A. Common Stock
B. Corporate Bond
C. Real Estate.
D. Mutual Fund.
Question 45
Financial intermediaries’ _________
A. Solve some of the problems associated with asymmetric information.
B. Decrease transaction costs for borrowers and lenders
C. Allow borrowers and lenders to engage in risk sharing
D. All of the above
Question 46
__________ is the regulator of mutual funds in India
A. RBI
B. IRDA
C. SEBI
D. Both SEBI and GOI
Question 47
In __________leasing, the risk of obsolescence is assumed by the lessee
A. Financial lease
B. Operating lease
C. Both the above
D. None the above
Question 48
__________ is a tripartite lease arrangement
A. Financial lease
B. Operating lease
C. Leverage lease
D. Sale and lease back
Question 49
Equipment leasing is _______________ financial service.
A. fund based
B. fee based
C. non-fund based
D. any of the above
Question 50
Managing the capital issue is__________ financial services.
A. fund based
B. fee based
C. non-fund based
D. both b and c above
Question 51
Fee based financial services are also known as...........
A. fund based
B. capital based
C. non- fund based
D. cash based
Question 52
____________ is the design, the development and the implementation of innovative financialinstruments and processes and the formulation of creative solutions to problem of finance.
A. financial services
B. financial inclusion
C. financial engineering
D. financial innovation
Question 53
__________ is more or less similar to “Consortium financing”.
A. Merchant banking
B. Retail banking
C. Whole sale banking
D. Loan syndication
Question 54
Yankee bonds are raised in..........
A. USA
B. UK
C. Japan
D. India
Question 55
Samurai bonds are raised in.............
A. USA
B. UK
C. Japan
D. India
Question 56
Type of debt instrument which permit investors to switch between two types of securities.
A. Swap
B. Option
C. Flip-Flop notes
D. ECU bonds
Question 57
The inflation free instrument is........
A. Option bond
B. Index-linked guilt bond
C. Variable rate bond
D. Deep discount bond
Question 58
______ bonds are issued at a large discount to their nominal value.
A. Option bond
B. Index-linked guilt bond
C. Variable rate bond
D. Deep discount bond
Question 59
______ is referred as both fund based and fee based financial service.
A. Hire purchase
B. Leasing
C. Factoring
D. Underwriting
Question 60
Direct sale of securities to investors is called..........
A. Public offer
B. Private placement
C. FPO
D. IPO
Question 61
Hire Purchase Act passed in the year
A. 1969
B. 1982
C. 1972
D. 1976
Question 62
__________ supplies machinery to small scale industries under hire purchase system.
A. IDBI
B. SIDMI
C. NSIC
D. DIC
Question 63
In India, Banks are permitted to carry on Hire purchase business
A. Directly
B. Through its Departments
C. Through subsidiary
D. Any of the above
Question 64
In hire purchase, till the payment of last instalment, amount paid by hirer is treated as
A. Rent
B. interest
C. cash price
D. all of these
Question 65
With ________ we rent and with _________ we buy the goods.
A. Hire purchase, leasing
B. Leasing, hire purchase
C. Hire purchase, instalment
D. Hire purchase, Credit sale
Question 66
In.............., lessor fulfils financing function
A. Operating lease
B. Swap lease
C. Financial lease
D. Balloon lease
Question 67
In................., Lessor fulfils servicing function
A. Operating lease
B. Swap lease
C. Financial lease
D. Balloon lease
Question 68
Credit card facility is a better example of
A. Revolving credit
B. Cash loan
C. Secured credit
D. Fixed credit
Question 69
............... card provides communication security
A. Charge card
B. Smart card
C. Debit card
D. Credit card
Question 70
________ is pay later product
A. Debit card
B. Credit card
C. Both a & b
D. None of these
Question 71
__________ is pay now product
A. Debit card
B. Credit card
C. Both a & b
D. None of these
Question 72
ATM stands for
A. Automatic Teller Machine
B. Any Time Money
C. Automated Teller machine
D. All Time Machine
Question 73
Andhra bank and Central bank of India introduced credit card in India in
A. 1991
B. 1981
C. 1984
D. 1990
Question 74
“India Card” was introduced by
A. Central Bank of India
B. Bank of India
C. Indian Overseas bank
D. SBI
Question 75
Full service factoring is often
A. Recourse factoring
B. Non-recourse factoring
C. Agency factoring
D. None of these
Question 76
Disclosed factoring is also known as
A. Recourse factoring
B. Non-recourse factoring
C. Agency factoring
D. Notified factoring
Question 77
Maturity factoring is also known as
A. Maturity factoring
B. Disclosed factoring
C. Agency factoring
D. Notified factoring
Question 78
“Confidential invoice discounting” is another name of
A. Maturity factoring
B. Disclosed factoring
C. Undisclosed factoring
D. Notified factoring
Question 79
Re-Factoring fee is applicable in case of
A. With recourse factoring
B. Disclosed factoring
C. Agency factoring
D. Notified factoring
Question 80
.............. Is an “invoice based export finance” technique.
A. International factoring
B. Disclosed factoring
C. Agency factoring
D. Notified factoring
Question 81
“EDI” in EDIFACTORING stands for
A. Economic Deposit insurance
B. Electronic Data interchange
C. Export Division insurance
D. None of these
Question 82
In ............... lease, leasing company assumes risk of obsolescence.
A. Financial lease
B. Operating lease
C. Leverage lease
D. Cross boarder lease
Question 83
__________ lease contracts are usually non cancellable.
A. Financial lease
B. Operating lease
C. Leverage lease
D. Cross boarder lease
Question 84
Financial lease introduced in India by...................
A. Tata group
B. Reliance group
C. Chidambaram group
D. Murugappa group
Question 85
Rental loans are given to
A. Tenant
B. Owner of the building
C. Hirer of the cars
D. Any of the above
Question 86
Loans for pensioners are given up to ______ months of pension amount.
A. 12
B. 36
C. 24
D. 6
Question 87
Consumer loans are granted for
A. Long period
B. Medium period
C. Short period
D. Any of the above
Question 88
Retail banking is confined to ............... customers
A. Corporate
B. Firm
C. Individual
D. Individual and corporate
Question 89
Housing advances are ................. in nature
A. Short term
B. Medium term
C. Long term
D. Any of the above
Question 90
In the private sector, ____________ plays a dominant role in housing finance.
A. ICICI
B. HDFC
C. DHFL
D. LICHFL
Question 91
Canara bank’s housing finance subsidiary is..........
A. Can HFL
B. CHFL
C. Can Fin Homes ltd
D. CBHFL
Question 92
Housing loan up To Rs................... is considered as priority sector advance.
A. 5 lakh
B. 25 lakh
C. 10 lakh
D. 15 lakh
Question 93
Apex institution set up to deal in housing finance is
A. HDFC
B. NHB
C. HUDCO
D. None of these
Question 94
Institution which gives thrust to urban infrastructure development is
A. HDFC
B. NHB
C. HUDCO
D. DHFL
Question 95
Education loan is maximum Rs........... for study in India
A. 5 lakh
B. 7.5 lakh
C. 10 lakh
D. 15 lakh
Question 96
No security is insisted upon .................loan
A. Housing
B. Education
C. Vehicle
D. Personal
Question 97
Which of the following is/are types of consumer credit?
A. Revolving credit
B. Unsecured credit
C. Secured credit
D. All the above
Question 98
The difference between open-end and closed-end mutual funds is:
A. The total number of shares under management grows and shrinks for open-end funds, but is fixed for closed-end funds
B. Open-end funds can be purchase in a variety of international markets while closed- end funds can only be purchased in their home market
C. The total number of shares under management grows and shrinks for closed-end funds, but is fixed for open-end funds
D. Open-end funds contain securities from various countries while closed-end funds
Question 99
The material wealth of a society is equal to the sum of _________
A. All financial assets
B. All real assets
C. All financial and real assets
D. All physical assets
Question 100
_______ are financial assets
A. Bonds.
B. Machines
C. Stocks.
D. A and C.
Question 101
_______ are examples of financial intermediaries
A. Commercial banks
B. Insurance companies
C. Investment companies
D. All of the above.
Question 102
Financial intermediaries exist because small investors cannot efficiently ________
A. Diversify their portfolios
B. Gather all relevant information
C. Assess credit risk of borrowers
D. All of the above
Question 103
Firms that specialize in helping companies raise capital by selling securities are called__
A. Commercial banks
B. Merchant banks
C. Savings banks
D. Credit unions
Question 104
Financial assets ______
A. Directly contribute to the country's productive capacity
B. Indirectly contribute to the country's productive capacity
C. Contribute to the country's productive capacity both directly and indirectly.
D. Do not contribute to the country's productive capacity either directly or indirectly.
Question 105
The sale of a mortgage portfolio by setting up mortgage pass-through securities is anexample of ________
A. Credit enhancement
B. Securitization.
C. Unbundling
D. Derivatives.
Question 106
Merchant bankers perform the following role(s) ___________
A. Market new stock and bond issues for firms.
B. Provide advice to the firms as to market conditions, price, etc.
C. Provide consultancy services for expansion etc
D. All of the above
Question 107
The means by which individuals hold their claims on real assets in a well-developedeconomy are ___________
A. Investment assets
B. Depository assets
C. Derivative assets
D. Financial assets
Question 108
Commercial banks differ from other businesses in that both their assets and theirliabilities are mostly ________
A. Illiquid
B. Financial.
C. Real.
D. Owned by the government
Question 109
Although derivatives can be used as speculative instruments, businesses most often usethem to _________
A. Attract customers
B. Appease stockholders.
C. Offset debt.
D. Hedge.
Question 110
A fixed-income security pays ____________
A. A fixed level of income for the life of the owner.
B. A fixed level of income for the life of the security.
C. A variable level of income for owners on a fixed income
D. A fixed or variable income stream at the option of the owner.
Question 111
Money market securities ____________
A. Are short term.
B. Are highly marketable
C. Generally very low risk.
D. All of the above
Question 112
A mutual fund in which shares are issued only when the fund is organized is called a________fund.
A. Closed-end.
B. Load.
C. No-load
D. Open-end
Question 113
The value of the mutual fund's portfolio minus the mutual fund's liabilities divided bythe number of shares outstanding is called the:.
A. Book value
B. Outstanding balance
C. Per share value
D. Net asset value.
Question 114
When one investment company manages a group of mutual funds, it is called a(n):.
A. Family funds
B. Exchange fund
C. Diversification fund
D. Versatility fund
Question 115
Indian Banks Association (IBA) has a common net working system for sharing the ATMfacilities in Mumbai, which is known as _________
A. ATM Network
B. Shared Payment Network System.
C. Cash Network
D. None of these.
Question 116
Arbitrage is _________
A. Buying and selling in two markets simultaneously
B. A rate of interest
C. A Fee.
D. A dispute.
Question 117
Exchange risk in case of foreign currency Non Resident (Banks) scheme (FCNR) Isborne by_________
A. RBI.
B. Depositor.
C. Govt. Of India
D. Concerned Bank.
Question 118
Which of these is not a credit rating agency?
A. Moody.
B. Standard & Poors
C. Price water house
D. CRISIL
Question 119
Investment banks facilitate the sale of securities in the __________
A. Primary market.
B. Secondary market
C. Retail market.
D. Wholesale market.
Question 120
There are........ associated companies of GIC
A. 3
B. 4
C. 6
D. 5
Question 121
In India, banks cannot do hire purchase business without the permission of
A. SEBI
B. Central Govt.
C. State govt.
D. RBI
Question 122
LIC was nationalised in the year
A. 1956
B. 1954
C. 1969
D. 1972
Question 123
Banking Regulation Act was passed in the year
A. 1969
B. 1935
C. 1948
D. 1949
Question 124
Loans for pensioners are given up to__________months of pension amount.
A. 12
B. 6
C. 24
D. 36
Question 125
Consumer loans are granted for__________period.
A. Medium
B. Short
C. Long
D. Both long and medium
Question 126
The maximum amount of education loan is Rs________lakh for study in India.
A. 10
B. 15
C. 7.5
D. 20
Question 127
Housing advances are________________in nature.
A. Medium
B. Short
C. Long
D. Both long and medium
Question 128
Housing loan sanctioned to redeem prior debts obtained from friends for thepurchase of a house is called________loan.
A. Conversion
B. Flexible installment
C. Refinance
D. Renovation
Question 129
HDFC was established in the year
A. 1982
B. 1977
C. 1972
D. 1964
Question 130
Education loan maximum is__________lakh for study abroad.
A. 10
B. 15
C. 7.5
D. 20
Question 131
Housing loan sanctioned to pay off an old housing loan at a higher rate ofinterest and enjoy a new one at a lower rate is called:
A. Conversion loan
B. Flexible installment loan
C. Transfer plan loan
D. Refinance loan
Question 132
LIC Housing Finance Ltd was established in the year
A. 1982
B. 1989
C. 1972
D. 1964
Question 133
RBI Act passed in the year
A. 1934
B. 1935
C. 1936
D. 1949
Question 134
______________was the protector of funds and money in ancient Rome.
A. Juno Moneta
B. Henry Feyol
C. F.W.Taylor
D. None of these
Question 135
Money is matter of 4 function- A medium , a measure, a standard__________
A. Store
B. Bin-card
C. Commerce
D. Financial
Question 136
Indian Financial System consists of financial market,__________ and Financial intimidation.
A. financial instrument
B. services
C. underwriters
D. derivatives.
Question 137
__________________ are business organization that is mobilisers and depositorsof savings and providing financial services.
A. Financial Institutions
B. head offices
C. Branches
D. none of these.
Question 138
__________________ are differ from Non-financial Business organization.
A. Financial Institutions
B. head offices
C. Branches
D. none of these.
Question 139
__________ can be defined as the market in which financial assets arecreated or transferred.
A. Financial Market
B. financial service
C. Financial Instruments
D. head Offices.
Question 140
__________ this market is dominated by government, banks, and financialinstitutions.
A. money market
B. Capital Market
C. Organised Market
D. Unorganised
Question 141
______________market is also called as the security market.
A. Capital market
B. Money Market
C. Organised Market
D. Unorganised
Question 142
______________market deals with the multicurrency requirements.
A. Forex market
B. Money Market
C. Organised Market
D. Unorganised
Question 143
____________ bills are issued by central government.
A. Treasury Bills
B. Bills of Exchange
C. Dishonored bill
D. Unorganised
Question 144
Debt instruments are issued by corporate houses for raising short termfinancial resources from money market are called as __________
A. Commercial Paper
B. Certificate of deposits
C. . treasury bill
D. hybrid
Question 145
The markets which attracts funds in large volume and from all types ofinvestors are called as ________
A. Broad financial market
B. Money Market
C. Organised
D. Unorganised
Question 146
____________or liberalization aim at creating market oriented competitivefinancial system.
A. Financial Reforms
B. integration
C. financial repression
D. None of these
Question 147
____________appears to have an important role in the restructuring andliquidation of companies that are in distress.
A. Financial Intermediary
B. Financial Instruments
C. Organised Market
D. Firm’s Assets
Question 148
__________banker is any person who is engaged in the business of issue of management either by making arrangement regarding selling, buying, securities to manager.
A. Merchant
B. Money bankers
C. Non Banking Institutes
D. Unorganised
Question 149
______________banking is the development of banking from commerce whichfrequently encountered a prolonged intermediate.
A. Merchant
B. Money bankers
C. Non Banking Institutes
D. Unauthorized
Question 150
An outstanding development in this sphere was the conversion of the__________
A. Industrial Finance Corporation
B. Non banking financial Institutes
C. Insurance Companies
D. None of the above
Question 151
DFIs stands for__________
A. Development financial Institutes
B. Development of Banking institute
C. Development of financial Industries
D. Deputy Factor Service
Question 152
The bonds issued by the DFIs were no longer eligible as__________assets forbanks.
A. SLR
B. NSE
C. IFCI
D. DFIs
Question 153
The factors which had adversely affected the profitability of the bankingsystem were partly external is termed as ____________
A. macro –policy environment
B. staffing and branch spread
C. promoting savings
D. none of the above
Question 154
The factors which had adversely affected the profitability of the bankingsystem were partly internal is termed as ____________
A. staffing and branch spread
B. macro –policy environment
C. promoting savings
D. none of the above
Question 155
NBFCs Stands for
A. non banking financial corporations
B. Indian financial institutions
C. national banks factor corporation
D. none of the above
Question 156
NBFCs are partly ________ and partly__________
A. fees based and fund based
B. free and periodic
C. full fees and periodic
D. fund based and systematic
Question 157
__________are emerging as the backbone of Indian Capital Market.
A. Mutual Fund
B. Investments
C. savings
D. Interests
Question 158
The present structure consists of domestic mutual funds sponsored by the__________
A. UTI
B. LIC
C. NFCs
D. IFS
Question 159
__________are encouraged, both in public and private sectors and they havebeen permitted to invest overseas.
A. Mutual Funds
B. Shares
C. Capital
D. Investments
Question 160
Secondary market represented an institutional mechanism was ____________
A. inadequate
B. incorrect
C. aggregate
D. exact
Question 161
SEBI stands for ____________
A. security exchange board of India
B. State Bank of India
C. sate electronic board of India
D. none of the above
Question 162
CDs stands for ________ and CPs stands for________
A. certificate of deposit & commercial paper
B. certify deputy manager & commercial bills
C. clear deposit & contract papers
D. contractual deposit & compact project
Question 163
______________are appointed by the issuing companies in consultation withthe merchant bankers.
A. underwriters
B. Mutual fund
C. Certificate of deposits’
D. treasury bills
Question 164
Underwrites are appointed by the issuing companies in consultation withthe ______________
A. merchant banks
B. Mutual fund
C. Certificate of deposits’
D. treasury bills
Question 165
In ______________this case the issue is underwritten by two or moreunderwriters jointly.
A. joint underwriting
B. sub underwriting
C. syndicate underwriting
D. firm underwriting
Question 166
Under ____________this case involves more than one underwriters.
A. sub underwriting
B. joint underwriting
C. syndicate underwriting
D. firm underwriting
Question 167
__________in this case underwriter agrees to take up a specified number of securities.
A. firm underwriting
B. sub underwriting
C. syndicate underwriting
D. joint underwriting
Question 168
________is empowered to carry out the inspection of the bankers to the issue with a view to protecting the investors’ interest.
A. RBI
B. SBI
C. SEBI
D. Capital Market
Question 169
A ________is a deed which is executed by the company in favour of the trustees named for the benefit of the debenture holder.
A. trust deed
B. Agreement
C. contract
D. none of above
Question 170
A scheduled bank carrying on __________
A. commercial activity
B. financial activity
C. banking activity
D. none of the above
Question 171
____________is mandatory in order to act as debenture trustee.
A. . Certificate
B. agreement
C. contract
D. none of the above
Question 172
In primary MARKETS the first time issued shares to be publicly traded, instock market is considered as...
A. traded offering
B. public markets
C. initial public offering.
D. secondary market
Question 173
The stock or shares that are also sold to investors without transacting through financial institution are classified as
A. direct transfer
B. indirect transfer
C. global transfer
D. home transfer
Question 174
The type of financial security which have linked payoff to another issuedsecurity is classified as –
A. linked security
B. derivative security
C. payable security.
D. receivables
Question 175
In primary markets the property of shares which made it easy to sell newlyissued security is considered as __
A. increased liquidity
B. decreased liquidity
C. money flow
D. Surplus
Question 176
The money market where debt and stock are traded and maturity period ismore than a year is classified as__
A. short term markets
B. capital markets
C. long term markets
D. money market
Question 177
The example of derivative securities include.
A. swap contract
B. option contract
C. future contract
D. all of these
Question 178
In foreign financial markets , the growth is represented by the factors suchas __
A. saving in foreign countries
B. investment opportunity
C. a & b
D. none of these
Question 179
The services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as____
A. business allocation
B. sector allocation
C. credit allocation
D. factor allocation
Question 180
The type of market in which securities with less than one year maturity aretraded is classified as__
A. money market
B. capital market
C. global market
D. Stock exchange.
Question 181
The type of structured market through which the funds flow with the helpof financial instruments such as bond and stock is classified as –
A. financial market
B. funds market
C. flow market
D. capital market
Question 182
The process of selling and buying of stocks and bonds is classified as
A. S- trade
B. e trade
C. stock trade
D. none of these
Question 183
In capital markets the major suppliers of trading instruments are—
A. government and corporation
B. liquid corporation
C. instrumental corporation
D. Private Institutes
Question 184
The market in which transactions are done through computers andtelephone without any specific location are classified as ____
A. past counter
B. future counter market
C. over the counter markets
D. None of these
Question 185
The type of financial markets in which the corporation issues new funds toraise funds is classified as
A. flow market
B. primary market
C. secondary market
D. Money market
Question 186
The saving banks, insurance companies, mutual funds and commercialbanks are all examples of –
A. Non-financial institutions
B. derivative institutions
C. financial institutions
D. banking institutes.
Question 187
The additional debt instrument or equity instruments of publically tradedfirm are included in the markets classified as –
A. flow market
B. primary market
C. secondary markets
D. derivative market
Question 188
The financial instruments of public markets include –
A. Transfer funds
B. bearer bonds
C. shares
D. debentures
Question 189
The centralized market place where agents can have efficiently andquickly transaction is classified as –
A. secondary market
B. central market
C. traded market
D. primary market
Question 190
The ability of an asset to be converted into cash very quickly is classifiedas –
A. derivative security markets
B. convertible securities
C. liquidity
D. fixed
Question 191
The institutions classified as depository once and have loans as theirmajor assets are classified as
A. commercial banks
B. commercial mortgages
C. credit derivative
D. All of these
Question 192
Merchant bankers are ______
A. Merchants
B. Banks
C. Neither merchants nor banks
D. None of these.
Question 193
All type of activities which are of a financial nature are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Financial market
B. Primary market
C. Capital market
D. financial services.
Question 194
Find out odd one..
A. Fund based activity
B. Fee based activity
C. Modern activities
D. Purchase of raw materials.
Question 195
The number of lead merchant bankers may not exceeds in case any issueof , issue size less than Rs.50crore,number of MBs ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. 1
B. 3
C. 2
D. 4
Question 196
R O C stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Registrar of companies
B. Registered companies
C. Registrar of consulter
D. Registrar of capital.
Question 197
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a written consent or authorization representing oracting on behalf of an individual in matters of business, private affairs or other legal matters.
A. Memorandum of understanding
B. R O C
C. Agreement
D. Power of authority.
Question 198
Lead merchant banker should advice the issuer to enter into ‐‐‐‐‐‐‐‐ with aparticular intermediary for the purpose of issue management.
A. Memorandum of understanding
B. R O C
C. Agreement
D. Arrangement.
Question 199
The number of lead merchant bankers may not exceed in case any issue of,issue size 200crore to 400crore.
A. 4
B. 3
C. 6
D. 5
Question 200
Post issue management activities include:‐
A. Analysis of collection
B. Processing of data
C. Issue of refund orders
D. All of these.
Question 201
Pre‐issue management activities include:‐
A. Lead manager
B. Underwriting
C. Overall supervision
D. None of these.
Question 202
Merchant bank can help an organization specifically in promotionalfunctions, _____________‐.
A. Sponsoring the issue
B. Marketing
C. None of these
D. All of these.
Question 203
Role of merchant bankers ‐‐‐‐‐‐‐‐.
A. Mobilization of funds
B. Promotional function
C. Innovation
D. All of these.
Question 204
‐‐‐‐‐‐‐‐‐‐‐‐‐ is a financial intermediary who helps to mobilize and transfercapital from those who possess it to those who need it.
A. Lease finance
B. Venture capital
C. Merchant banker
D. hire purchaser .
Question 205
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a method of renting assets.
A. Hire purchase
B. Lease
C. hedge finance
D. Credit rating.
Question 206
‐‐‐‐‐‐ is the opinion of the rating agency on the relative ability and willingness of the issuer of by instrument to meet the debt service obligations as and when they arise.
A. Credit rating
B. rating by merchant banker
C. merit rating
D. operating feed back.
Question 207
The features of hire purchase:
A. The possession of goods is given to the buyer immediately.
B. The ownership in the goods remains with the vendor till the last installment is paid.
C. The seller can repossess the goods in case of default in payment .
D. All of these.
Question 208
Discounting of bills of exchange is an attractive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basedfinancial service provided by the finance companies.
A. Fee
B. Fund
C. Opinion
D. Capital.
Question 209
Factoring is method of raising ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ finance throughaccount receivable credit offered by commercial banks and factors.
A. Long term
B. Medium term
C. short term
D. all of these.
Question 210
Insurance is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Instrument
B. Contract
C. Agreement
D. Rating.
Question 211
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a fund based financial service, provides resources of finance receivable as well as facilities the collection of receivables.
A. Leasing
B. hedge finance
C. Merchant banker
D. Factoring.
Question 212
Financial service companies exclude ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Commercial banks
B. Insurance companies
C. Sole proprietorship
D. Crepitating agencies.
Question 213
Specialized financial institution, are also known as _____________.
A. Leasing companies
B. U T I
C. N B F C s
D. Development bank.
Question 214
Financial services offered financing risk project e.g. Risk capital scheme ofI F C I venture capital fund of I D F I etc. to provide ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Seed capital
B. Venture capital
C. Primary fund
D. secondary fund.
Question 215
Identify odd one.
A. C R I S I L
B. I C R A
C. C A R E
D. I C I C I.
Question 216
Services sector in India is booming and has become one of the biggest ________areas.
A. money spinning areas
B. Regulations area
C. venture capital
D. none of these
Question 217
The term__________ refers to the mobilizing and allocation of savings.
A. financial services
B. Financial Institutions
C. financial intermediaries
D. all of these
Question 218
____________of large public sector undertakings.
A. Port folio management
B. top management
C. fund management
D. financial planning
Question 219
____________has made way for the entry of innovation and advanced financialproducts in India.
A. globalization
B. liberalization
C. centralization
D. reconstruction
Question 220
If funds sells securities that have increased price the fund has________ Gain.
A. capital gain
B. Surplus
C. over gain
D. loss of profit policy
Question 221
________is define as the market value of Mutual Fund Scheme’s assets net of its Liability.
A. NAV
B. OVTCE
C. SWAP
D. loss of profit policy
Question 222
Funds that can sell and buy units at any point in the time are known as ____
A. open end fund
B. Surplus
C. Closed end fund
D. No load fund
Question 223
Funds that can sell a fixed number of units only during the new fund offerperiod are called as ______
A. Closed end fund
B. Surplus
C. Open end fund
D. No load fund
Question 224
______refers to the load changed to an investors when he /she enters into ascheme.
A. Entry load
B. Surplus
C. Closed end fund
D. No load fund
Question 225
____________ known as back end load.
A. Exit load
B. Entry load
C. Closed end fund
D. No load fund
Question 226
Which are not included in entry load, Exit load, deferred load is known as____
A. open end fund
B. Surplus
C. Closed end fund
D. No load fund
Question 227
__________are funds whose portfolio consists of a blend of equities, debts, andmoney market securities.
A. Hybrid fund
B. Balanced fund
C. Closed end fund
D. No load fund
Question 228
Exchange traded funds give investors joint benefits of ____ And ____ mutualfund.
A. close end & open end
B. Surplus & capital
C. Closed end & hybrid
D. No load & balanced
Question 229
ETF stands for__________
A. Exchange traded funds
B. Expensive Transactional Fund
C. Executive traded fun
D. No load fund
Question 230
The finance ministry is supervisor of ____ & ____
A. RBI & SBI
B. SBI & SEBI
C. SEBI &NABARD
D. SEBI & RBI
Question 231
Association of mutual fund in India was incorporated on__
A. 22nd Aug 1995
B. 23rd Aug 1996
C. 28th Aug 1995
D. 22nd Jan 1995
Question 232
______is keeps the safe custody of the valuables of customers or clients orinvestors.
A. Custodian
B. Registrar
C. Trader
D. Institutes
Question 233
______________ means financial transaction where exporter sells hisaccounts receivables to the 3rd party @a lesser rate in exchange for instant cash.
A. Factoring
B. Surplus
C. Mutual Fund
D. Interest
Question 234
Numerous factoring arrangements are possible if an agreement is reachedbetween the ______& ____
A. selling co.& the Factor
B. Factors & the Purchaser
C. Sole trader & Banks
D. None of these
Question 235
Domestic factoring include Customers, Client ____
A. All of these
B. Customers
C. Financial Intermediary
D. buyers & seller
Question 236
The word forfeit is derived from __
A. French word
B. Latin word
C. Greek word
D. None of these
Question 237
Forfiet means ________
A. Surrendered of rights
B. Factors & the Purchaser
C. Sole trader’s Banks
D. None of these
Question 238
Forfeiter determines ______risk & risk.
A. Country & Credit
B. Factors & the Purchaser
C. Cash & Banks
D. None of these
Question 239
Forfeiting transaction is covered with ______
A. Promissory Notes
B. Certificate
C. Dishonor bill
D. None of these
Question 240
The first rating AGENCY is ________was started in__
A. CRISIL, 1988
B. ICRA , 1993
C. DCR, 1996
D. ONICRA, 1995
Question 241
The term ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers financial investment in a highly risky andgrowth oriented venture with the objective of earning a high rate of return.
A. Venture capital
B. Merchant banking
C. Leasing
D. none of these.
Question 242
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a road towards a high growth economy.
A. Venture capital
B. Merchant banking
C. Leasing
D. None of these.
Question 243
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ act as an intermediary to link up the sources of ideas andthe sources of fund.
A. Venture capital
B. Merchant banking
C. Leasing
D. None of these.
Question 244
V C Fs of specialized financial institution promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Central government
B. RBI
C. state government
D. None of these.
Question 245
I D B I , I F C I , I C I C I etc. are promoted by _____________‐‐‐.
A. V C F s of specialized financial institution
B. V C F s of commercial bank
C. Private V C Fs
D. None of these.
Question 246
Write the example of V C Fs of state financial institution.
A. K S I D C
B. T D I C I
C. C V C F
D. None of these.
Question 247
Which of the following is a V C F promoted by specialized financialinstitution.
A. Indus venture capital fund
B. I L & FS Venture corporation ltd.
C. I D B I venture capital fund
D. None of these.
Question 248
Off shore VCFs are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ & financialinstitution.
A. Foreign banks
B. Private banks
C. State banks
D. None of these.
Question 249
High risk is an outstanding feature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Mutual fund
B. venture capital
C. Debenture finance
D. govt. bonds.
Question 250
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is needed for developing a product in the initial stages.
A. Seed capital
B. Startup capital
C. Second round financing
D. None of these.
Question 251
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is needed for product development and initialmarketing.
A. seed capital
B. Startup capital
C. first round financing
D. None of these.
Question 252
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ provided at a stage when product has been launched in themarket but has not earned enough profits to meet future capital needs.
A. first round financing
B. Second round financing
C. Startup capital
D. None of these.
Question 253
‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is provided for early manufacturing and marketingexpense.
A. Startup capital
B. seed capital
C. first round financing
D. Second round financing
Question 254
The additional finance provided by VCFs to overcome fledging stage iscalled ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A. Second round financing
B. ) first round financing
C. seed capital
D. None of these.
Question 255
Indian Commercial Banks are categorized into:
A. Public sector Banks
B. Foreign Banks
C. Private Sector Banks
D. All of the above
Question 256
Regional Rural Banks have been set up with the basic objectives of:
A. Providing credit to semi - urban & urban population
B. Providing deposits facilities to farmers
C. Providing credit & deposit facilities to rural areas
D. providing credit, deposit and other banking facilities to people in rural
Question 257
_____ is raised in capital markets
A. Funds through long term securities
B. Long term loans through Govt. securities
C. medium term loans
D. Short - term instruments
Question 258
Interest on Government secu-rities on fixed basis is known as:
A. Bank rate
B. Coupon
C. Prime Lending Rate
D. Bench mark PLR
Question 259
__ was not nationalized in 1969:
A. Punjab National Bank
B. Oriental Bank of commerce
C. Bank of Baroda
D. Union Bank of India
Question 260
In the first round 14 major banks with a liability base of ____ werenationalized:
A. 10 crore or more
B. 20 crore or more
C. 50 crore or more
D. 100 crore or more
Question 261
The maximum Statutory Liquidity Ratio to be maintained by banks is_____:
A. 25%
B. 30%
C. 35%
D. 40%
Question 262
CRR funds are kept by the Banks in ____:
A. Cash in hand at branches
B. Balance with other banks
C. Balance in a special Account with RBI
D. Funds in the currency chest
Question 263
An increase in CRR by RBI leads to:
A. Decrease in deposit
B. increase in deposit
C. Increase in lendable resources
D. Decrease in lendable resources
Question 264
When RBI reduce the CRR it results into:
A. Decrease in deposit
B. increase in deposit
C. Increase in lendable resources
D. Decrease in lendable resources
Question 265
What is meant by development Oriented banking?
A. Infrastructure financing
B. Extending loans to States, which are un development
C. Taking up the task of development of the economy by providing support to under privileged sections of the society
D. All the above
Question 266
Principal functions of SIDBI:
A. Promotion of SSI
B. Finance of SSI
C. Development of SSI
D. All the above
Question 267
____ heads and conducts the affairs of RBI:
A. Central Board
B. local board
C. Regional board
D. All of the above
Question 268
RBI Provides ____ for meeting day - to - day receipt and expendituremismatch to both Central and State Governments.
A. treasury bills
B. Ways and Means advance
C. date and securities
D. All the above
Question 269
These days RBI uses Selective credit control measures rather infrequentlybecause of:
A. Deregulation of functions
B. Autonomy given to banks
C. Comfortable liquidity
D. Reasonable inflation level
Question 270
Intervenes in markets to maintain the external value of the Indian rupee:
A. Exporters
B. Importers
C. RBI
D. IMF
Question 271
Which of the following can be categories as a Merchant Banking service?
A. Consultancy on finance to a company
B. Advance in capital structure
C. Managing mergers
D. Helping in finalizing take over
Question 272
The instrument which provides proprietary interest in company andwhich entitles a person to dividend on profits, is called?
A. Bond
B. Share
C. Debenture
D. Warrant
Question 273
Which of the following provides proper definition of a Mutual Funds?
A. It is an association of members of public
B. These members want to invest in financial instrument
C. They want to invest in financial instrument assts of business sector
D. All the above
Question 274
Which of the following organisations/agencies works solely to monitorand arrange flow of agriculture credit in India?
A. NABARD
B. SIDBI
C. RBI
D. SEBI
Question 275
The currency notes of which of the following denominations are notprinted in India ?
A. Rs. 5
B. Rs. 10
C. Rs. 50
D. Rs. 2500
Question 276
Which of the following is not the name of a bank functioning in India?
A. Central Bank of India
B. UCO Bank
C. Aegon Religare
D. Dena Bank
Question 277
When banks accept a fixed sum of money from an individual for a definiteterm and pay on maturity with interest, the deposit is known as :
A. Term Deposit
B. Demand Deposit
C. Bond
D. Mortgage
Question 278
Who amongst the following is the chief of SEBI?
A. Milind Bhave
B. UK Sinha
C. Shashikath Verma
D. Shyamala Gopinath
Question 279
Which of the following is a leading electronic-payment tec-hnology firm?
A. Visa
B. Max
C. BSE
D. Sensex
Question 280
The basic function of________are to accept to deposits, lend money and actas collection and paying agents.
A. Banks
B. . Non Banking Institutes
C. Sock exchange
D. Brokers
Question 281
The RBI was nationalized by the Reserve Bank (amendment ) ________
A. Act 1948
B. . Act 1932
C. Act 1962
D. Act 1963
Question 282
The baking system was______during the early 90’s which led to greatercompetition and higher Production.
A. Liberalized
B. Centralized
C. Decentralized
D. None of these
Question 283
The baking sector is the most important part of the______and it promoteseconomic development of the country.
A. financial system
B. Financial Procedure
C. Technology
D. Underwriting
Question 284
The________has economic significance and social purpose.
A. Insurance industry
B. Financial banks
C. mutual fund
D. Underwriting
Question 285
The______ are financial intermediate that collect and invest largeamount of premiums.
A. Insurance Companies
B. non banking Institutes
C. Stock Exchange
D. SEBI
Question 286
The 1st life insurance company namely______ was establishment inKolkata in 1818
A. oriental life insurance co
B. ICICI prudential
C. Tata LIC
D. SBI LIC
Question 287
The commercial banking system in India consists________&________
A. Scheduled & Unscheduled Banks
B. Bank & Non Banking Institutions
C. Organised & unorganized Banks
D. none of these
Question 288
______banks are considered as the heart of our financial structure thatmakes the completely utilization of the resources of the nation.
A. financial system
B. Financial Procedure
C. Technology
D. Underwriting
Question 289
________banks are known as local area banks.
A. Uncheduled banks
B. Financial Institutions
C. Organised Banks
D. none of these
Question 290
__________these banks are controlled by the Government.
A. Public Sector Banks
B. Organised Banks
C. Scheduled Banks
D. none of these
Question 291
____________banks are registered as companies with limited liability.
A. Private Sector Banks
B. Public sector Banks
C. Scheduled Banks
D. commercial banks
Question 292
__________ banks were establishment mainly due to the development of tradewith our countries.
A. Foreign Banks
B. Organised Banks
C. Scheduled Banks
D. none of these
Question 293
__________ banks are involved with financing of foreign trade and activities.
A. Foreign Banks
B. Organised Banks
C. Scheduled Banks
D. none of these
Question 294
__________ banks aims to increase the flow of credit and availability ofbanking facilities to Rural areas and to the poorer section of the rural population.
A. Regional Rural Banks
B. Organised Banks
C. Scheduled Banks
D. Cooperative Banks
Question 295
The basic ideamovement is that poor people should come together and develop banking habits within small means.
A. Cooperative
B. Organised
C. Scheduling
D. none of these
Question 296
________banks act as catalytic agents in promoting balanced development ofthe country.
A. Development Banks
B. Organised Banks
C. Scheduled Banks
D. none of these
Question 297
________ means indemnity or protection against risk of loss by spreading the risk over a number of a person, who are exposed to it and who is agree to insure themselves against risk.
A. Insurance
B. Bank Over Draft
C. Premium
D. none of these
Question 298
The LIC was Establishment on__________
A. 1st Sep 1956
B. 2nd Sep 1956
C. 15th Aug 1949
D. 1st Jan 1947
Question 299
__________banks can borrow from the Reserve Bank of India based on the eligible securities or get the financial assistance in times of need by rediscounting bills of Exchange.
A. Scheduled Banks
B. Organised Banks
C. Scheduled Banks
D. none of these
Question 300
The first bank to set up a separate merchant banking division in India.
A. Punjab national bank
B. Standard charted bank
C. National & Grin days bank
D. National city bank.
Question 301
As a discipline to be one of the most important element in the businessworld where money is almost everything.
A. Accounting
B. Standardizing
C. Recording
D. none of these
Question 302
Budgeting requires eliminating redundant expenditure that no longer servesany clearly defined purpose.
A. Zero based
B. Open end
C. Financial
D. none of these
Question 303
The second approach in the application of Zero-based Budgeting (ZBB) is toidentify and remove duplication or expenditure.
A. Multiplication
B. Divided
C. Adding
D. triple
Question 304
A system of zero-based budgeting was first introduced formally in theUnited States Department of Agriculture in preparing its budget.
A. Fiscal year
B. Leap Year
C. Academic Year
D. Draconic year
Question 305
Zero-based budgeting was introduced for the first time in a governmentsystem by ______________
A. Jimmy Carter
B. F.W.Tailor
C. Robert Shiller
D. Abhijit Banarjee
Question 306
A decision package includes________justification for budget estimates of anactivity.
A. Comprehensive
B. Comparative
C. Duplicated
D. none of these
Question 307
A main factor contributing to the failure of zero-based budgeting has beendue to too much of__________involved in the procedure.
A. Paper work
B. Computerized work
C. Manual Work
D. none of these
Question 308
____________ manpower is a hard task for management.
A. Re-Deploying
B. Deploying
C. Scheduling
D. none of these
Question 309
Situation of resource crunch when demands for desirable expenditure arefar ______________ the available resources.
A. out stripping
B. in stripping
C. overlapping
D. none of these
Question 310
Zero-based budgeting is an approach to budgeting that begins from the principle that____________ or activities Should be factored into the plans for the coming budget period.
A. no cost
B. no Value
C. zero budget
D. none of these
Question 311
Zero-based budgeting first came out in ________
A. 1960
B. 1980
C. 1950
D. 1999
Question 312
The ‘________ ’ is a term associated with ZBB, and refers to an analysis ofeach discrete activity, according to cost and purpose.
A. Decision Package
B. Zero budgeting Plan
C. Accountancy
D. Short Sales
Question 313
The key benefit is that serves to concentrate attention on the__________
A. Zero based budgeting
B. Activity based badgeting
C. Value preposition budgeting
D. none of these
Question 314
ZBB can offer a number of advantages when it is applied ________
A. intelligently
B. Ascending order
C. Descending order
D. none of these
Question 315
The basic process of zero-based budgeting is to justify budget requests for every , regardless of prior period budgets.
A. Budgeting cycle
B. Reuse cycle
C. recession cycle
D. none of these
Question 316
Zero-based budgeting addresses such problems that can take place with__________ rolling budgets.
A. Conventional
B. Non conventional
C. budging
D. none of these
Question 317
__________ accounting is a financial reporting process which records theresults of inflation on the financial statement that a firm prepare and published at the end of the financial year.
A. Inflation
B. Corporate
C. Management
D. Bank
Question 318
One of the most significant and basic principle of the accounting process iscalled as the ________Principle.
A. measuring Unit
B. Non Measuring Unit
C. Scheduled Unit
D. none of these
Question 319
Inflation accounting as already stated is also called as the ________ accounting.
A. Price Level Accounting
B. Inflationary Accounting
C. corporate accounting
D. Management Accounting
Question 320
The impact of inflation comes in the form of rising prices of__________ andAssets.
A. Output
B. Surplus
C. Liabilities
D. Deficit
Question 321
Which of the following assets is most liquid?.
A. 2 year Treasury bonds
B. Shares of common stock
C. Passbook savings accounts.
D. Gold bars
Question 322
Under “securitisation process”, the bank or financial institution which gives loan isknown as;
A. SPV
B. Obligor
C. Originator
D. Credit enhancer
Question 323
Under “securitisation process”, original borrower is known as;
A. SPV
B. Obligor
C. Originator
D. Credit enhancer
Question 324
Under “securitisation process”, organisation which gives insurance and guarantee isknown as;
A. SPV
B. Obligor
C. Originator
D. Credit enhancer
Question 325
Under “securitisation process”, __________ are instruments which issued subsidiarycompany in respect of receivables of holding or parent company
A. Pass through certificate
B. Pay through certificate
C. Preferred stock certificate
D. None of these
Question 326
________ certificate under securitisation have multiple maturity structure.
A. Pass through certificate
B. Pay through certificate
C. Preferred stock certificate
D. Interest only certificate
Question 327
________ certificate under securitisation have single maturity structure.
A. Pass through certificate
B. Pay through certificate
C. Preferred stock certificate
D. Principle only certificate
Question 328
Which of the following is / are securitisable asset/debt?
A. Credit card receivable
B. Lease finance
C. Mortgage loan
D. All the above
Question 329
Which of the following is / are securitisable asset/debt?
A. Hire purchase receivable
B. Receivable from Govt.
C. Term loan to financial reputed company
D. All the above
Question 330
Which of the following is / are not securitisable asset/debt?
A. Credit card receivable
B. Bills receivable
C. Mortgage loan
D. All the above
Question 331
Which of the following is not related to securitisation process?
A. Special purpose vehicle
B. Credit rating agency
C. Credit enhancer
D. None of these.
Question 332
Which of the following is tripartite system?
A. Financial lease
B. Operating lease
C. Leverage lease
D. Swap lease
Question 333
Equipment lease transaction is treated as contract of............
A. Bailment
B. Pledge
C. Guarantee
D. Agency
Question 334
............ lease is for a limited period
A. Financial lease
B. Operating lease
C. Leverage lease
D. Swap lease
Question 335
The entire lease rental is treated as........ in the books of lessor
A. Expense
B. Income
C. Receivable
D. Capital
Question 336
Leased asset is shown in the balance sheet of..................
A. Lessee
B. Lessor
C. Lender
D. Both lessor and lessee in 50:50 ratio
Question 337
Who can claim investment allowance in relation to leased asset?
A. Lessee
B. Lessor
C. Lender
D. Both lessor and lessee in 50:50 ratio
Question 338
An average lease agreement involves.............
A. Two parties
B. Three parties
C. Four parties
D. None of these
Question 339
................. Leasing companies are formrd to promote the sale of its parent company
A. Leverage
B. Financial
C. Vendor
D. Swap
Question 340
.......... fund generates regular income to the investors on periodical basis.
A. Balanced fund
B. Income fund
C. Growth fund
D. All of these
Question 341
Income-cum- growth fund is also known as.................
A. Balanced fund
B. Nest eggs
C. Open ended fund
D. Long haul
Question 342
............... fund concentrate mainly on capital appreciation.
A. Balanced fund
B. Income fund
C. Growth fund
D. All of these
Question 343
Pure growth fund is also known as
A. Nest eggs
B. Balanced fund
C. Leverage fund
D. Stop gap arrangement
Question 344
Investors generally use............... as a ‘parking place’ or ‘stop gap arrangement”
A. Balanced fund
B. Income fund
C. Growth fund
D. MMMF
Question 345
................. mutual fund otherwise known as “intrinsic value”
A. Income
B. Capital
C. Portfolio
D. Net asset value
Question 346
Best suited fund for a business people is...............
A. Balanced fund
B. Income fund
C. Growth fund
D. Taxation fund
Question 347
The facility offered to the investors to shift from one scheme to another under same fundis known as
A. Roll over facility
B. Re purchase facility
C. Re issue facility
D. Lateral shifting facility
Question 348
Which of the following is a type of international factoring?
A. Two factor system
B. Single factor system
C. Direct export factor system
D. All of these
Question 349
................ literally means “relinquish rights to something”.
A. Securitisation
B. Factoring
C. Forfaiting
D. Credit rating
Question 350
________ variety of mutual fund offers tax benefits to the investors
A. Balanced Funds
B. Fund of funds
C. Money Market Mutual fund
D. Taxation fund
Question 351
Which of the following fund is entirely opposite to bond fund?
A. Balanced
B. Close ended
C. Income fund
D. Aggressive growth fund
Question 352
______ is the venture capital assistance at the stage of development of business idea
A. Start up capital
B. Mezzanine capital
C. Bridge capital
D. Seed capital
Question 353
In __________leasing, maintenance expenses and taxes are born by the lessee
A. Financial lease
B. Operating lease
C. Both the above
D. None the above
Question 354
__________ is suitable lease arrangement for retail shop, mall etc
A. Financial lease
B. Operating lease
C. Leverage lease
D. Sale and lease back
Question 355
In hire purchase, who can be enjoying salvage value of asset?
A. Hirer
B. Vendor
C. Financiers
D. All of these
Question 356
“Native Stock and Share Brokers Association” is the old name of............
A. SEBI
B. NSE
C. BSE
D. NASDAQ
Question 357
General insurance business nationalised in the year__________
A. 1956
B. 1972
C. 1969
D. 1982
Question 358
............ is a product whose value is derived from the value of underlying asset
A. Repo
B. T-bills
C. G.sec
D. Derivatives
Question 359
.................. are negotiable instrument issued by an overseas depository
A. ADR
B. GDR
C. IDR
D. All of these
Question 360
Secured Premium Notes (SPN) always issued with...........
A. Premium
B. Discount
C. Detachable Warrant
D. Coupon
Question 361
................ bonds permit the bond holder to invest the interest income again in host bonds
A. Deep discount bond
B. Junk bonds
C. Bearer bond
D. Bunny bonds
Question 362
...............bonds are high risk and high yield bonds developed in USA
A. Deep discount bond
B. Junk bonds
C. Bearer bond
D. Bunny bonds
Question 363
Dunham Greenberg Formula is used for................
A. Individual credit rating
B. Institutional credit rating
C. Both of these
D. None of these
Question 364
CIBIL stands for............
A. Credit Information Bureau of India ltd
B. Central investment Board of India Ltd
C. Credit and Investment Bureau of India ltd
D. None of these
Question 365
UTI established in the year
A. 1968
B. 1964
C. 1988
D. 1969
Question 366
In mutual fund, ELSS stands for
A. Entry to Limited Subscribers Scheme
B. Equity Linked Saving Scheme
C. Entry Load for Saving Scheme
D. None of these
Question 367
.................fund is also known as sectoral fund.
A. Theme fund
B. Contra fund
C. Fund of fund
D. Bond fund
Question 368
____________ fund is invested in those companies whose share prices are far below theirreal worth
A. Theme fund
B. Contra fund
C. Fund of fund
D. Bond fund
Question 369
............ fund are used to purchase units of other Mutual funds.
A. Theme fund
B. Contra fund
C. Fund of fund
D. Bond fund
Question 370
In Mutual fund arena, SIP stands for
A. Structural investment plan
B. Systematic investment plan
C. Stable Income plan
D. None of these
Question 371
.................is pooling of risks
A. Mutual fund
B. Insurance
C. Credit rating
D. Guarantee
Question 372
.................. is pooling of small savings
A. Mutual fund
B. Insurance
C. Credit rating
D. Guarantee
Question 373
Which Institution was first SPV for securitisation in India?
A. City bank
B. Grindlays Bank
C. SBI
D. PNB
Question 374
Whose long term receivables were securitised first in India?
A. SBI
B. ICICI
C. PNB
D. Telco
Question 375
.................... card is a convenient means of payment rather than credit facility.
A. Smart card
B. Charge card
C. Credit card
D. None of these
Question 376
Central bank issued central card in the year...........
A. 1981
B. 1985
C. 1991
D. 1982
Question 377
.................. cards are issued by retailers or companies.
A. Smart card
B. Debit card
C. Charge card
D. In-store card
Question 378
Fourth-Round of venture capital financing is also called________
A. Seed capital
B. Mezzanine finance
C. Bridge finance
D. None of these
Question 379
Which of the ffollowing is / are the methods of venture financing?
A. Equity
B. Conditional loan
C. Income note
D. All of these
Question 380
In an option contract, if the option can be exercised only at the time of maturity, it iscalled___________
A. Double option
B. American option
C. Put option.
D. European option
Question 381
The predetermined price at which an underlying asset has to be bought or sold in anoption contract is called ________
A. Option price.
B. Exercise price
C. Spot price
D. Future price
Question 382
A combination of forwards by two counterparties with opposite but matching need iscalled:.
A. Swap
B. Option
C. Forwa
Question 383
The minimum size of venture capital fund is _______________
A. Rs. 10 crores
B. Rs. 20 crores
C. Rs. 25 crores
D. Rs. 50 crores.
Question 384
Equipment leasing is ............... financial service.
A. fund based
B. fee based
C. non-fund based
D. any of the above
Question 385
Managing the capital issue is............. financial services.
A. fund based
B. fee based
C. non-fund based
D. both b and c above
Question 386
............. is the design, the development and the implementation of innovative financialinstruments and processes and the formulation of creative solutions to problem of finance.
A. financial services
B. financial inclusion
C. financial engineering
D. financial innovation
Question 387
................ is more or less similar to “Consortium financing”.
A. Merchant banking
B. Retail banking
C. Whole sale banking
D. Loan syndication
Question 388
............... supplies machinery to small scale industries under hire purchase system.
A. IDBI
B. SIDMI
C. NSIC
D. DIC
Question 389
With ________ we rent and with .......... we buy the goods.
A. Hire purchase, leasing
B. Leasing, hire purchase
C. Hire purchase, instalment
D. Hire purchase, Credit sale