McqMate
Chapters
| 1. |
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. | |
| 2. |
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. | |
| 3. |
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 | |
| 4. |
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. | |
| 5. |
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. | |
| 6. |
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 | |
| 7. |
Which agency regulates and supervises NBFCs? |
| A. | Finance Ministry |
| B. | SEBI |
| C. | RBI |
| D. | Respective state government |
| Answer» C. RBI | |
| 8. |
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 | |
| 9. |
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 | |
| 10. |
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 | |
| 11. |
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 | |
| 12. |
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 | |
| 13. |
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 | |
| 14. |
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 | |
| 15. |
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 | |
| 16. |
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 | |
| 17. |
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 | |
| 18. |
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 | |
| 19. |
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 | |
| 20. |
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 | |
| 21. |
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 | |
| 22. |
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. | |
| 23. |
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. | |
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