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
| 151. |
Which of the following is an advantage to investors of an open-end mutual fund? |
| A. | Once all the shares have been sold, the investor does not have to put in more money. |
| B. | The investors can sell their shares in the over-the-counter market with low transaction fees. |
| C. | The fund agrees to redeem shares at any time. |
| D. | The market value of the fund’s shares may be higher than the value of the assets held by the fund. |
| Answer» C. The fund agrees to redeem shares at any time. | |
| 152. |
In --------------- Securities share bond debentures are offered to the public for subscription for raising capital or fund. |
| A. | Prime Securities |
| B. | Public Securities |
| C. | Preferred Securities |
| D. | Primary Securities |
| Answer» A. Prime Securities | |
| 153. |
ADR Stands for: |
| A. | Asset Depository Receipt |
| B. | Asian Depository Receipt |
| C. | American Depository Receipt |
| D. | Adjustable Depository Receipt |
| Answer» C. American Depository Receipt | |
| 154. |
SEBI operates to fulfill the needs of these three groups, choose the one which is not in those three: |
| A. | the issuers of securities |
| B. | the police |
| C. | the investors |
| D. | the market intermediaries |
| Answer» B. the police | |
| 155. |
The largest industry group receiving venture capital funding is |
| A. | computer software. |
| B. | medical/health. |
| C. | computer hardware. |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 156. |
The source of venture capital funding has |
| A. | shifted from wealthy individuals to pension funds and corporations. |
| B. | shifted from pension funds and corporations to wealthy individuals. |
| C. | decreased since 1990. |
| D. | none of the above. |
| Answer» A. shifted from wealthy individuals to pension funds and corporations. | |
| 157. |
A typical venture capital firm has a ______ number of investors who each contribute a ______ amount of money to the fund. |
| A. | large; small |
| B. | small; large |
| C. | large; large |
| D. | small; small |
| Answer» B. small; large | |
| 158. |
Most automobile financing is provided by |
| A. | commercial banks. |
| B. | thrifts. |
| C. | finance companies owned by automobile companies. |
| D. | finance companies owned by real estate brokers. |
| Answer» C. finance companies owned by automobile companies. | |
| 159. |
Business finance companies provide specialized forms of credit to businesses by making loans and purchasing accounts receivable at a discount; this provision of credit is called |
| A. | discounting. |
| B. | factoring. |
| C. | refinancing |
| D. | sparking. |
| Answer» B. factoring. | |
| 160. |
Which one of the following is a regarded as classic venture capital? |
| A. | MBO finance |
| B. | Early stage |
| C. | Institutional |
| D. | Corporate |
| Answer» B. Early stage | |
| 161. |
Which agency regulates and supervises NBFCs? |
| A. | Finance Ministry |
| B. | SEBI |
| C. | RBI |
| D. | Respective state government |
| Answer» C. RBI | |
| 162. |
Which of the following statements is/are correct? 1. NBFCs does not hold a banking license. 2. NBFC can issue Demand Drafts like banks. |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both |
| D. | None |
| Answer» A. Only 1 | |
| 163. |
Consider the following statements 1. Chit Funds are type of NBFC 2. All NBFCs are ruled by RBI 3. RBI said any purchase of a stake of 26% or more in a company, or a change in more than 30% of its directors, would need the central bank's permission. Which of the above statements is/are correct? |
| A. | 1,2 |
| B. | 2,3 |
| C. | 1,3 |
| D. | All |
| Answer» C. 1,3 | |
| 164. |
Which of the following NBFC converted itself into a commercial Bank? |
| A. | Tata Finance |
| B. | Reliance Capital Trust |
| C. | Birla Mutual |
| D. | Kotak Mahindra |
| Answer» D. Kotak Mahindra | |
| 165. |
Indian Banks Association (IBA) has a common networking system for sharing the ATM facilities in Mumbai, which is known as |
| A. | ATM Network |
| B. | Shared Payment Network System |
| C. | Cash Network |
| D. | None of these |
| Answer» B. Shared Payment Network System | |
| 166. |
Markets in which derivatives are traded are classified as |
| A. | assets backed market |
| B. | cash flow backed markets |
| C. | mortgage backed markets |
| D. | derivative securities markets |
| Answer» D. derivative securities markets | |
| 167. |
Consider buying of put option, probability that a buyer would have negative payoff increases with the |
| A. | increase in stock price |
| B. | decrease in stock price |
| C. | increase in maturity duration |
| D. | decrease in maturity duration |
| Answer» A. increase in stock price | |
| 168. |
Price of an option is subtracted form time value of option to calculate |
| A. | book value index |
| B. | market index |
| C. | intrinsic value |
| D. | extrinsic value |
| Answer» C. intrinsic value | |
| 169. |
If intrinsic value of an option is $450 and price of an option is $560 then time value of an option is |
| A. | $110 |
| B. | $1,010 |
| C. | $450.00 |
| D. | $560 |
| Answer» A. $110 | |
| 170. |
Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called |
| A. | float-fixed swaps |
| B. | interest rate swaps |
| C. | indexed swaps |
| D. | counter party swaps |
| Answer» B. interest rate swaps | |
| 171. |
Type of bonds that pay coupon interest are classified as |
| A. | forward bond |
| B. | payment bonds |
| C. | coupon bond |
| D. | interest bonds |
| Answer» C. coupon bond | |
| 172. |
For given change in interest rates, percentage change in present value of bond is classified as |
| A. | price sensitivity |
| B. | yield sensitivity |
| C. | maturity sensitivity |
| D. | premium sensitivity |
| Answer» A. price sensitivity | |
| 173. |
Type of bond whose present value is lesser than that of its face value is classified as |
| A. | discount bond |
| B. | premium bond |
| C. | coupon bond |
| D. | interest bonds |
| Answer» A. discount bond | |
| 174. |
For an investment, weighted average time to maturity is considered as |
| A. | premium time |
| B. | standard time |
| C. | mean time |
| D. | duration |
| Answer» D. duration | |
| 175. |
Bonds that does not pay any interest rate are considered as |
| A. | interest free bond |
| B. | zero coupon bond |
| C. | price less coupon bond |
| D. | useless price bonds |
| Answer» B. zero coupon bond | |
| 176. |
Which of the following is not a characteristic feature of venture capital firms? |
| A. | Funding just one or a small number of firms. |
| B. | Holding equity in the firms that are funded. |
| C. | Having a long-term investment horizon. |
| D. | Providing advice and assistance to the firms that are funded. |
| Answer» A. Funding just one or a small number of firms. | |
| 177. |
Which of the following is a characteristic feature of venture capital firms? |
| A. | Developing a portfolio of companies. |
| B. | Holding debt in the firms that are funded. |
| C. | Allowing firms to use the funds as they see fit. |
| D. | Having a short-term investment horizon. |
| Answer» A. Developing a portfolio of companies. | |
| 178. |
Which of the following is not a primary function of a Bank? |
| A. | Granting Loans |
| B. | Collecting Cheques/Drafts customers |
| C. | Facilitating import of goods |
| D. | Issuing Bank Drafts |
| Answer» C. Facilitating import of goods | |
| 179. |
Which of the following is not an institutional credit rating agency in Indian financial system? |
| A. | CRISIL |
| B. | CIBIL |
| C. | CARE |
| D. | ICRA |
| Answer» B. CIBIL | |
| 180. |
___________ is regarded as “Hybrid securities”. |
| A. | Equity shares |
| B. | . Preference shares |
| C. | Debentures |
| D. | Treasury bills |
| Answer» B. . Preference shares | |
| 181. |
————— represent claims for the payment of a sum of money sometimes in the future and/or a periodic payment in the form of interest or dividend. |
| A. | Physical asset |
| B. | Fixed asset |
| C. | Financial asset |
| D. | All the above |
| Answer» C. Financial asset | |
| 182. |
SEBI was established in —————. |
| A. | 1988 |
| B. | 1985 |
| C. | 1991 |
| D. | 1990 |
| Answer» A. 1988 | |
| 183. |
RBI started functioning on —————. |
| A. | 1-4-1935 |
| B. | 1-4-1948 |
| C. | 1-4-1882 |
| D. | 1-4-1945 |
| Answer» A. 1-4-1935 | |
| 184. |
National Housing bank is a fully owned subsidiary of —————. |
| A. | HDFC |
| B. | HSBC |
| C. | RBI |
| D. | HUDCO |
| Answer» C. RBI | |
| 185. |
————— has the statutory powers to regulate and promote the Indian capital market. |
| A. | Registrar of issue |
| B. | Merchant banks |
| C. | SEBI |
| D. | RBI |
| Answer» C. SEBI | |
| 186. |
Any company making a public issue of value of more than Rs. ———— is required to file a draft offer document with SEBI. |
| A. | 100 lakh |
| B. | 25 lakh |
| C. | 50 lakh |
| D. | 10 lakh |
| Answer» C. 50 lakh | |
| 187. |
————— Committee was constituted by SEBI for deciding about derivatives trading. |
| A. | L.C.Gupta |
| B. | R. L. Gupta |
| C. | Vaghul |
| D. | Malhotra |
| Answer» A. L.C.Gupta | |
| 188. |
RBI is the lender of last resort for —————. |
| A. | Central Government |
| B. | State Governments |
| C. | Stock markets |
| D. | Commercial Banks |
| Answer» D. Commercial Banks | |
| 189. |
The market regulator of Indian Capital Market is …………… |
| A. | DFHI |
| B. | RBI |
| C. | SEBI |
| D. | STCI |
| Answer» C. SEBI | |
| 190. |
…………………… facilitate the transfer of funds from savers to the borrowers. |
| A. | goods market |
| B. | money market |
| C. | financial market |
| D. | consumer market |
| Answer» C. financial market | |
| 191. |
……………………… market is a market for old issues. |
| A. | Money market |
| B. | Primary market |
| C. | Secondary market |
| D. | All the above |
| Answer» C. Secondary market | |
| 192. |
Which of the following is a financial asset |
| A. | Gold |
| B. | silver |
| C. | share |
| D. | Land. |
| Answer» C. share | |
| 193. |
Which of the following is a cash asset? |
| A. | deposit created out of loans |
| B. | share |
| C. | bond |
| D. | Post office certificate. |
| Answer» A. deposit created out of loans | |
| 194. |
Govt. bond is a |
| A. | short term security |
| B. | long term security |
| C. | medium term security |
| D. | Either a or b. |
| Answer» B. long term security | |
| 195. |
Money market deals with ..................... instruments. |
| A. | long term |
| B. | short term |
| C. | medium term |
| D. | all of these. |
| Answer» B. short term | |
| 196. |
The market for extremely short period loan is called..................... |
| A. | call money market |
| B. | money at short notice |
| C. | T-bill market |
| D. | G-sec market |
| Answer» A. call money market | |
| 197. |
..................... acts as an intermediary between Govt. and money market |
| A. | RBI |
| B. | SEBI |
| C. | Commercial banks |
| D. | All the above |
| Answer» A. RBI | |
| 198. |
................... are drawn by contractors on the Govt. departments for the goods supplied to them |
| A. | treasury bills |
| B. | supply bill |
| C. | bill of lading |
| D. | documentary bill |
| Answer» B. supply bill | |
| 199. |
..................... are an important instrument of short term borrowing by the Govt. |
| A. | National saving certificate |
| B. | Bonds |
| C. | Treasury bill |
| D. | Any of the above |
| Answer» C. Treasury bill | |
| 200. |
..................... is a market for bankers’ acceptances |
| A. | discount market |
| B. | CDs market |
| C. | Interbank participation market |
| D. | Acceptance market |
| Answer» D. Acceptance market | |
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