McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) , Master of Business Administration (MBA) .
Chapters
| 101. |
If interest rates rise, the present value of any future earnings is bound to: |
| A. | Fall |
| B. | Rise |
| C. | Suffer from inflation |
| D. | Increase in risk |
| Answer» A. Fall | |
| 102. |
In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to: |
| A. | A reduction in the amount of saving |
| B. | More employment |
| C. | Higher interest rates |
| D. | Higher prices |
| Answer» C. Higher interest rates | |
| 103. |
If savers decide to save more, ceteris paribus, the loanable funds theory predicts: |
| A. | A reduction in investment and interest rates |
| B. | An increase in investment and interest rates |
| C. | Higher economic growth |
| D. | A reduction in interest rates and more investment |
| Answer» D. A reduction in interest rates and more investment | |
| 104. |
According to the Fisher hypothesis, the nominal rate of interest consists of: |
| A. | A stable real rate plus a variable risk premium |
| B. | A real rate plus a liquidity premium plus a risk premium |
| C. | A stable real rate plus a variable inflation premium |
| D. | An inflation premium plus a liquidity premium |
| Answer» C. A stable real rate plus a variable inflation premium | |
| 105. |
According to the liquidity preference theory of interest, an increase in uncertainty, other things being equal, will: |
| A. | Decrease output and employment |
| B. | Increase risk aversion |
| C. | Reduce the demand for money |
| D. | Raise interest rates |
| Answer» D. Raise interest rates | |
| 106. |
The ability of central banks to influence short-term interest rates rests upon: |
| A. | Government policy |
| B. | Their role as lenders of last resort |
| C. | Their supervisory role |
| D. | Sales of government bonds |
| Answer» B. Their role as lenders of last resort | |
| 107. |
A central bank which sets the short-term rate of interest must: |
| A. | Buy treasury bills |
| B. | Meet the resulting demand for reserves |
| C. | Sell government bonds |
| D. | Change the reserve ratios |
| Answer» B. Meet the resulting demand for reserves | |
| 108. |
According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | None of these |
| Answer» A. Loanable Fund theory | |
| 109. |
According to ------- theory interest arises on account of the productivity of capital. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | Classical theory |
| Answer» B. Productivity theory | |
| 110. |
The Time- Preference Theory of Interest was expounded by----------- |
| A. | John Rae |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» A. John Rae | |
| 111. |
----------- defined Interest as “an index of the community’s preference for a dollar of present over a dollar of future income.” |
| A. | Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» A. Fisher | |
| 112. |
According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | Classical theory |
| Answer» D. Classical theory | |
| 113. |
Loanable Fund theory is also known as----------- |
| A. | Classical theory |
| B. | Neo-classical theory |
| C. | Demand and Supply theory |
| D. | Productivity theory |
| Answer» B. Neo-classical theory | |
| 114. |
Neo- Classical theory of interest was expounded by------------ |
| A. | Prof. Fisher |
| B. | Alfred Marshall |
| C. | Knot Wicksel |
| D. | JB Clark |
| Answer» C. Knot Wicksel | |
| 115. |
According to Keynes, Interest is purely a ‘monetary phenomenon’. |
| A. | Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» C. JM Keynes | |
| 116. |
Who propounded liquidity preference theory of interest? |
| A. | Prof.Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» C. JM Keynes | |
| 117. |
----------- is called as “Real Theory of Interest” |
| A. | Classical theory |
| B. | Neo-classical theory |
| C. | Demand and Supply theory |
| D. | Productivity theory |
| Answer» A. Classical theory | |
| 118. |
Technical consultancy Organisations were set up by........................ |
| A. | IFCI |
| B. | IDBI |
| C. | RBI |
| D. | SEBI |
| Answer» B. IDBI | |
| 119. |
ICICI was set up in ........................ |
| A. | 1955 |
| B. | 1964 |
| C. | 1989 |
| D. | 1935 |
| Answer» A. 1955 | |
| 120. |
........................ assists mainly to industrial undertakings in the private sector |
| A. | IFCI |
| B. | IDBI |
| C. | ICICI |
| D. | SEBI |
| Answer» C. ICICI | |
| 121. |
LIC was established in........................ |
| A. | 1956 |
| B. | 1964 |
| C. | 1989 |
| D. | gcv1935 |
| Answer» A. 1956 | |
| 122. |
UTI was set up in the year ........................ |
| A. | 1956 |
| B. | 1964 |
| C. | 1969 |
| D. | 1948 |
| Answer» B. 1964 | |
| 123. |
................known as Brettonwood twins |
| A. | IDBI and IFCI |
| B. | IDBI and UTI |
| C. | IBRD and IMF |
| D. | RBI and SEBI |
| Answer» C. IBRD and IMF | |
| 124. |
World bank is also known as........................ |
| A. | IMF |
| B. | ADB |
| C. | IBRD |
| D. | UNICEF |
| Answer» C. IBRD | |
| 125. |
World bank was set up in ........................ |
| A. | 1945 |
| B. | 1946 |
| C. | 1947 |
| D. | 1948 |
| Answer» A. 1945 | |
| 126. |
IMF commenced financial operation on........................ |
| A. | 1945 |
| B. | 1946 |
| C. | 1947 |
| D. | 1948 |
| Answer» C. 1947 | |
| 127. |
Which of the following gives long term finance? |
| A. | IDBI |
| B. | ICICI |
| C. | IFCI |
| D. | All the above |
| Answer» D. All the above | |
| 128. |
Find the odd one out |
| A. | commercial paper |
| B. | share certificate |
| C. | certificate of deposit |
| D. | Treasury bill. |
| Answer» B. share certificate | |
| 129. |
The process of managing the sales ledger of a client by a financial service company is called |
| A. | forfaiting |
| B. | factoring |
| C. | leasing |
| D. | None of these. |
| Answer» B. factoring | |
| 130. |
Mutual funds are very popular in |
| A. | USA |
| B. | UK |
| C. | Japan |
| D. | India |
| Answer» A. USA | |
| 131. |
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. |
| Answer» C. asset management company | |
| 132. |
The first bank in India to start factoring business is |
| A. | Canara bank |
| B. | SBI |
| C. | Punjab National Bank |
| D. | Allahabad Bank. |
| Answer» B. SBI | |
| 133. |
An asset with a physical value is called |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Fixed asset |
| Answer» B. Non financial asset | |
| 134. |
An asset which derives its value because of a contractual claim is |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Fixed asset |
| Answer» A. Financial asset | |
| 135. |
Gold is -----------asset |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» B. Non financial asset | |
| 136. |
Cash is --------------asset |
| A. | Financial asset |
| B. | Non financial asset |
| C. | Fictitious asset |
| D. | Intangible asset |
| Answer» A. Financial asset | |
| 137. |
-------------is a whole sale market for short term debt instrument. |
| A. | capital market |
| B. | forex market |
| C. | money market |
| D. | any of the above |
| Answer» C. money market | |
| 138. |
Money lent in the inter-bank market for 15 days or more is called ----------- |
| A. | Call money |
| B. | Term money |
| C. | Money at short notice |
| D. | All the above |
| Answer» B. Term money | |
| 139. |
Call money is a loan given for a period of |
| A. | 15 days |
| B. | 30 days |
| C. | 1 day |
| D. | 1 year |
| Answer» C. 1 day | |
| 140. |
When money lent for more than a day but up to a fortnight is called |
| A. | Call money |
| B. | Term money |
| C. | Money at short notice |
| D. | None of the above |
| Answer» C. Money at short notice | |
| 141. |
CBLO stands for |
| A. | Collateralised Borrowing and Lending Obligation |
| B. | Central Banks Lending Obligation |
| C. | Commercial Borrowing and Lending Option |
| D. | Corporate Borrowing and Lending organisation |
| Answer» A. Collateralised Borrowing and Lending Obligation | |
| 142. |
The NSDL established in |
| A. | August 1996 |
| B. | August 1998 |
| C. | January 1996 |
| D. | January 1998 |
| Answer» A. August 1996 | |
| 143. |
In a private placement the maximum number of investors shall not exceed |
| A. | 51 |
| B. | 49 |
| C. | 100 |
| D. | 25 |
| Answer» B. 49 | |
| 144. |
Merchant banks in India started in |
| A. | 1955 |
| B. | 1969 |
| C. | 1972 |
| D. | 1992 |
| Answer» B. 1969 | |
| 145. |
Merchant banks concept in India introduced by |
| A. | SBI |
| B. | PNB |
| C. | ANZ Grindlays |
| D. | City bank |
| Answer» C. ANZ Grindlays | |
| 146. |
SENSEX is the index of |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | CSE |
| Answer» A. BSE | |
| 147. |
NIFTY is the index of |
| A. | BSE |
| B. | NSE |
| C. | OTCEI |
| D. | CSE |
| Answer» B. NSE | |
| 148. |
The first Indian equity index is |
| A. | Nifty |
| B. | Sensex |
| C. | Dollex |
| D. | Defty |
| Answer» B. Sensex | |
| 149. |
........... is a product whose value is derived from the value of underlying asset |
| A. | Repo |
| B. | T-bills |
| C. | G.sec |
| D. | Derivatives |
| Answer» D. Derivatives | |
| 150. |
In Indian Capital market, ‘BOLT’ stands for |
| A. | Borrowing or Lending Trade |
| B. | Bombay Online Trading |
| C. | Bond or Loan Transaction |
| D. | None of these |
| Answer» B. Bombay Online Trading | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.