410+ Financial Services Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce in Finance (B.Com Finance) .

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51.	The market in which transactions are done through computers and telephone without any specific location are classified as ----
A.	past counter
B.	future counter market
C.	over the counter markets
D.	None of these
Answer» C. over the counter markets

discuss

52.	The type of financial markets in which the corporation issues new funds to raise funds is classified as
A.	flow market
B.	primary market
C.	secondary market
D.	Money market
Answer» B. primary market

discuss

53.	The saving banks, insurance companies, mutual funds and commercial banks are all examples of –
A.	Non-financial institutions
B.	derivative institutions
C.	financial institutions
D.	banking institutes.
Answer» C. financial institutions

discuss

54.	The additional debt instrument or equity instruments of publically traded firm are included in the markets classified as –
A.	flow market
B.	primary market
C.	secondary markets
D.	derivative market
Answer» B. primary market

discuss

55.	The financial instruments of public markets include –
A.	Transfer funds
B.	bearer bonds
C.	shares
D.	debentures
Answer» C. shares

discuss

56.	The centralized market place where agents can have efficiently and quickly transaction is classified as –
A.	secondary market
B.	central market
C.	traded market
D.	primary market
Answer» A. secondary market

discuss

57.	The ability of an asset to be converted into cash very quickly is classified as –
A.	derivative security markets
B.	convertible securities
C.	liquidity
D.	fixed
Answer» C. liquidity

discuss

58.	The institutions classified as depository once and have loans as their major assets are classified as
A.	commercial banks
B.	commercial mortgages
C.	credit derivative
D.	All of these
Answer» A. commercial banks

discuss

59.	Merchant bankers are ------
A.	Merchants
B.	Banks
C.	Neither merchants nor banks
D.	None of these.
Answer» C. Neither merchants nor banks

discuss

60.	All type of activities which are of a financial nature are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Financial market
B.	Primary market
C.	Capital market
D.	financial services.
Answer» D. financial services.

discuss

61.	Find out odd one..
A.	Fund based activity
B.	Fee based activity
C.	Modern activities
D.	Purchase of raw materials.
Answer» D. Purchase of raw materials.

discuss

62.	The number of lead merchant bankers may not exceeds in case any issue of , issue size less than Rs.50crore,number of MBs ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	1
B.	3
C.	2
D.	4.
Answer» C. 2

discuss

63.	R O C stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Registrar of companies
B.	Registered companies
C.	Registrar of consulter
D.	Registrar of capital.
Answer» A. Registrar of companies

discuss

64.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a written consent or authorization representing or acting 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.
Answer» D. Power of authority.

discuss

65.	Lead merchant banker should advice the issuer to enter into ‐‐‐‐‐‐‐‐ with a particular intermediary for the purpose of issue management.
A.	Memorandum of understanding
B.	R O C
C.	Agreement
D.	Arrangement.
Answer» A. Memorandum of understanding

discuss

66.	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.
Answer» D. 5.

discuss

67.	Post issue management activities include:‐
A.	Analysis of collection
B.	Processing of data
C.	Issue of refund orders
D.	All of these.
Answer» D. All of these.

discuss

68.	Pre‐issue management activities include:‐
A.	Lead manager
B.	Underwriting
C.	Overall supervision
D.	None of these.
Answer» D. None of these.

discuss

69.	Merchant bank can help an organization specifically in promotional functions, ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Sponsoring the issue
B.	Marketing
C.	None of these
D.	All of these.
Answer» D. All of these.

discuss ⁽¹⁾

70.	Role of merchant bankers ‐‐‐‐‐‐‐‐.
A.	Mobilization of funds
B.	Promotional function
C.	Innovation
D.	All of these.
Answer» D. All of these.

discuss

71.	‐‐‐‐‐‐‐‐‐‐‐‐‐ is a financial intermediary who helps to mobilize and transfer capital from those who possess it to those who need it.
A.	Lease finance
B.	Venture capital
C.	Merchant banker
D.	hire purchaser .
Answer» B. Venture capital

discuss

72.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a method of renting assets.
A.	Hire purchase
B.	Lease
C.	hedge finance
D.	Credit rating.
Answer» B. Lease

discuss

73.	‐‐‐‐‐‐ 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.
Answer» A. Credit rating

discuss

74.	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.
Answer» D. All of these.

discuss

75.	Discounting of bills of exchange is an attractive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ based financial service provided by the finance companies.
A.	Fee
B.	Fund
C.	Opinion
D.	Capital.
Answer» B. Fund

discuss

76.	Factoring is method of raising ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ finance through account receivable credit offered by commercial banks and factors.
A.	Long term
B.	Medium term
C.	short term
D.	all of these.
Answer» C. short term

discuss

77.	Insurance is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Instrument
B.	Contract
C.	Agreement
D.	Rating.
Answer» C. Agreement

discuss

78.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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.
Answer» D. Factoring.

discuss

79.	Financial service companies exclude ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Commercial banks
B.	Insurance companies
C.	Sole proprietorship
D.	Crepitating agencies.
Answer» C. Sole proprietorship

discuss

80.	Specialized financial institution, are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Leasing companies
B.	U T I
C.	N B F C s
D.	Development bank.
Answer» D. Development bank.

discuss

81.	Financial services offered financing risk project e.g. Risk capital scheme of I 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.
Answer» B. Venture capital

discuss

82.	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.
Answer» D. I C I C I.

discuss

83.	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
Answer» A. money spinning areas

discuss

84.	The term…………… refers to the mobilizing and allocation of savings.
A.	financial services
B.	Financial Institutions
C.	financial intermediaries
D.	all of these
Answer» A. financial services

discuss

85.	………………of large public sector undertakings.
A.	Port folio management
B.	top management
C.	fund management
D.	financial planning
Answer» A. Port folio management

discuss

86.	………………has made way for the entry of innovation and advanced financial products in India.
A.	globalization
B.	liberalization
C.	centralization
D.	reconstruction
Answer» A. globalization

discuss

87.	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
Answer» A. capital gain

discuss

88.	……….. …..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
Answer» A. NAV

discuss

89.	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
Answer» A. open end fund

discuss

90.	Funds that can sell a fixed number of units only during the new fund offer period are called as ………
A.	Closed end fund
B.	Surplus
C.	Open end fund
D.	No load fund
Answer» A. Closed end fund

discuss

91.	………refers to the load changed to an investors when he /she enters into a scheme.
A.	Entry load
B.	Surplus
C.	Closed end fund
D.	No load fund
Answer» A. Entry load

discuss

92.	……………… known as back end load.
A.	Exit load
B.	Entry load
C.	Closed end fund
D.	No load fund
Answer» A. Exit load

discuss ⁽¹⁾

93.	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
Answer» A. open end fund

discuss

94.	……………are funds whose portfolio consists of a blend of equities, debts, and money market securities.
A.	Hybrid fund
B.	Balanced fund
C.	Closed end fund
D.	No load fund
Answer» A. Hybrid fund

discuss

95.	Exchange traded funds give investors joint benefits of ……. And …… mutual fund.
A.	close end & open end
B.	Surplus & capital
C.	Closed end & hybrid
D.	No load & balanced
Answer» A. close end & open end

discuss

96.	ETF stands for……………..
A.	Exchange traded funds
B.	Expensive Transactional Fund
C.	Executive traded fun
D.	No load fund
Answer» A. Exchange traded funds

discuss

97.	The finance ministry is supervisor of …… & ……
A.	RBI & SBI
B.	SBI & SEBI
C.	SEBI &NABARD
D.	SEBI & RBI
Answer» A. RBI & SBI

discuss

98.	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
Answer» A. 22nd Aug 1995

discuss

99.	………is keeps the safe custody of the valuables of customers or clients or investors.
A.	Custodian
B.	Registrar
C.	Trader
D.	Institutes
Answer» A. Custodian

discuss

100.	………………….. means financial transaction where exporter sells his accounts receivables to the 3rd party @a lesser rate in exchange for instant cash.
A.	Factoring
B.	Surplus
C.	Mutual Fund
D.	Interest
Answer» A. Factoring

discuss

410+ Financial Services Solved MCQs

The market in which transactions are done through computers and telephone without any specific location are classified as ----

The type of financial markets in which the corporation issues new funds to raise funds is classified as

The saving banks, insurance companies, mutual funds and commercial banks are all examples of –

The additional debt instrument or equity instruments of publically traded firm are included in the markets classified as –

The financial instruments of public markets include –

The centralized market place where agents can have efficiently and quickly transaction is classified as –

The ability of an asset to be converted into cash very quickly is classified as –

The institutions classified as depository once and have loans as their major assets are classified as

Merchant bankers are ------

All type of activities which are of a financial nature are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Find out odd one..

The number of lead merchant bankers may not exceeds in case any issue of , issue size less than Rs.50crore,number of MBs ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

R O C stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a written consent or authorization representing or acting on behalf of an individual in matters of business, private affairs or other legal matters.

Lead merchant banker should advice the issuer to enter into ‐‐‐‐‐‐‐‐ with a particular intermediary for the purpose of issue management.

The number of lead merchant bankers may not exceed in case any issue of, issue size 200crore to 400crore.

Post issue management activities include:‐

Pre‐issue management activities include:‐

Merchant bank can help an organization specifically in promotional functions, ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Role of merchant bankers ‐‐‐‐‐‐‐‐.

‐‐‐‐‐‐‐‐‐‐‐‐‐ is a financial intermediary who helps to mobilize and transfer capital from those who possess it to those who need it.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a method of renting assets.

‐‐‐‐‐‐ 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.

The features of hire purchase:

Discounting of bills of exchange is an attractive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ based financial service provided by the finance companies.

Factoring is method of raising ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ finance through account receivable credit offered by commercial banks and factors.

Insurance is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a fund based financial service, provides resources of finance receivable as well as facilities the collection of receivables.

Financial service companies exclude ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Specialized financial institution, are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Financial services offered financing risk project e.g. Risk capital scheme of I F C I venture capital fund of I D F I etc. to provide ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Identify odd one.

Services sector in India is booming and has become one of the biggest -- ………..areas.

The term…………… refers to the mobilizing and allocation of savings.

………………of large public sector undertakings.

………………has made way for the entry of innovation and advanced financial products in India.

If funds sells securities that have increased price the fund has………….. Gain.

……….. …..is define as the market value of Mutual Fund Scheme’s assets net of its Liability.

Funds that can sell and buy units at any point in the time are known as ……..

Funds that can sell a fixed number of units only during the new fund offer period are called as ………

………refers to the load changed to an investors when he /she enters into a scheme.

……………… known as back end load.

Which are not included in entry load, Exit load, deferred load is known as ……

……………are funds whose portfolio consists of a blend of equities, debts, and money market securities.

Exchange traded funds give investors joint benefits of ……. And …… mutual fund.

ETF stands for……………..

The finance ministry is supervisor of …… & ……

Association of mutual fund in India was incorporated on…

………is keeps the safe custody of the valuables of customers or clients or investors.

………………….. means financial transaction where exporter sells his accounts receivables to the 3rd party @a lesser rate in exchange for instant cash.