McqMate
| 101. |
CARE has been set up by ___________ in collaboration with some banks and financial institutions. |
| A. | IDBI |
| B. | IFCI |
| C. | ICICI |
| D. | UTI |
| Answer» A. IDBI | |
| 102. |
The concept of Credit Rating was originated in which country? |
| A. | UK |
| B. | USA |
| C. | Russia |
| D. | UAE |
| Answer» B. USA | |
| 103. |
Which was the first ever instruments that was rated? |
| A. | US Rail Road Bonds |
| B. | UK Rail Road Bonds |
| C. | US Mines Bonds |
| D. | None of the Above |
| Answer» A. US Rail Road Bonds | |
| 104. |
Which sentence is true? Sentence A – Rating once given remains unchanged Sentence B – Rating may be upgraded, downgraded or continue to be unchanged. |
| A. | Sentence A is True |
| B. | Sentence B is True |
| C. | none |
| D. | none |
| Answer» B. Sentence B is True | |
| 105. |
Which of the following is NOT true with respect to Credit Rating |
| A. | Credit Rating helps the market regulators in promoting stability and efficiency in securities market. |
| B. | Credit Rating helps issuers to have a wider access to capital with better pricing |
| C. | Credit Rating saves the investor’s time and enables him to take quick decision. |
| D. | Credit Rating is a recommendation for the issuers to buy, sell or hold the security. |
| Answer» D. Credit Rating is a recommendation for the issuers to buy, sell or hold the security. | |
| 106. |
Which one of the following is the Regulator of the Credit Rating Agencies in India? |
| A. | RBI |
| B. | SBI |
| C. | SIDBI |
| D. | SEBI |
| Answer» D. SEBI | |
| 107. |
‘Where Got’ Where Gone’ Statement is also known as |
| A. | Balance Sheet |
| B. | Profit and Loss Statement |
| C. | Funds Flow Statement |
| D. | Capital Budget |
| Answer» C. Funds Flow Statement | |
| 108. |
Operating Loss is a |
| A. | Application of Fund |
| B. | Source of Fund |
| C. | Loss of Assets |
| D. | None of the Above |
| Answer» A. Application of Fund | |
| 109. |
Public Deposit accepted by a company represents |
| A. | Use of Fund |
| B. | Source of Fund |
| C. | Application of Fund |
| D. | Equilibrium |
| Answer» B. Source of Fund | |
| 110. |
Redemption of Debenture by a company represents |
| A. | Application of Fund |
| B. | Source of Fund |
| C. | Loss of the Company |
| D. | None of the Above |
| Answer» A. Application of Fund | |
| 111. |
Only Current Assets and Current Liabilities are shown in the statement showing |
| A. | Changes in Assets |
| B. | Changes in Liabiliteis |
| C. | Changes in Working Capital |
| D. | Changes in Fixed Capital |
| Answer» C. Changes in Working Capital | |
| 112. |
Decrease in Working Capital Denotes |
| A. | Application of Fund |
| B. | Source of Fund |
| C. | Disposition of Fund |
| D. | Operating Loss |
| Answer» B. Source of Fund | |
| 113. |
Which one of the following is not an Application of Fund? |
| A. | Purchase of Fixed Assets |
| B. | Repayment of Loans |
| C. | Operating Loss |
| D. | Operating Profit |
| Answer» D. Operating Profit | |
| 114. |
When liability decreases it is a ________ |
| A. | Source of Funds |
| B. | Profit |
| C. | Application of Funds |
| D. | Loss |
| Answer» C. Application of Funds | |
| 115. |
Loss on sale of Fixed Assets / Investment will be shown on the credit side of adjusted profit and loss account. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 116. |
The balances of Provision for Taxation were Rs. 20000 and Rs. 15000 in 2019 and 2020 respectively, if in the current year taxed paid were Rs. 10000 then what will be the current year provision for tax made from profit? |
| A. | Rs. 7000 |
| B. | Rs. 5000 |
| C. | Rs. 15000 |
| D. | Rs. 10000 |
| Answer» B. Rs. 5000 | |
| 117. |
The proposed dividend for the Current Year would appear on the debit side of which account? |
| A. | Profit and Loss Account |
| B. | Balance Sheet |
| C. | Adjusted Profit and Loss Account |
| D. | Adjusted Balance Sheet |
| Answer» C. Adjusted Profit and Loss Account | |
| 118. |
If the shares are issued at a premium during the year then the amount of premium received will appear as a _______ |
| A. | Source of Fund |
| B. | Application of Fund |
| C. | Profit |
| D. | Loss |
| Answer» A. Source of Fund | |
| 119. |
If we want to prepare the funds flow statement, we should have |
| A. | Balance sheets of two consecutive years |
| B. | Funds flow statements of two consecutive years |
| C. | Budget for next financial year |
| D. | All of the Above |
| Answer» A. Balance sheets of two consecutive years | |
| 120. |
Last year’s proposed dividend has been paid during the current year and hence will be shown as________ |
| A. | A source of funds |
| B. | An application of funds |
| C. | Increase in liabilities |
| D. | None of the above |
| Answer» B. An application of funds | |
| 121. |
Any change in Current Liabilities will effect inverse change in the working capital. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 122. |
From the following details find out the funds from operations: Net Profit after Tax Rs. 48,000 Depreciation Rs. 30,000 Loss on Sale of Outdated Machinary : Rs. 4000 |
| A. | Rs. 82,000 |
| B. | Rs. 22,000 |
| C. | Rs. 74,000 |
| D. | Rs. 14,000 |
| Answer» A. Rs. 82,000 | |
| 123. |
From the following details find out the fund from operations PAT Rs. 2,500 Accumulated Depreciation Rs. 2,900 Retained Earning Rs. 4,200 Goodwill Written off Rs. 300 Profit on Sale of Fixed Assets Rs. 200 |
| A. | Rs. 9,900 |
| B. | Rs. 9,600 |
| C. | Rs. 9,700 |
| D. | Rs. 5,100 |
| Answer» C. Rs. 9,700 | |
| 124. |
Funds Flow Statement indicates the necessity of arranging external funds in advance if projected outflow is more than inflow. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 125. |
Any change in the Current assets is positively correlated to the change in working capital |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 126. |
Non-cash adjustments like Depreciation, Preliminary Expenses and Goodwill Written off are shown on the debit side of which account? |
| A. | Balance Sheet |
| B. | Funds Flow Statement |
| C. | Adjusted Profit and Loss Account |
| D. | Working Capital Statement |
| Answer» C. Adjusted Profit and Loss Account | |
| 127. |
Part of Profit transferred to General Reserve will be shown on the debit side of _________ |
| A. | Balance Sheet |
| B. | Funds Flow |
| C. | Cash Flow |
| D. | Adjusted Profit and Loss Account |
| Answer» D. Adjusted Profit and Loss Account | |
| 128. |
A projected Funds Flow Statement informs the management about |
| A. | Future Financial Stringency |
| B. | Future Requirement of Funds |
| C. | Funds Position of the Company |
| D. | All of the above |
| Answer» D. All of the above | |
| 129. |
Funds Flow Statement can be prepared in which form? |
| A. | Vertical Form |
| B. | Horizontal Form |
| C. | Complex Form |
| D. | Both a and b |
| Answer» D. Both a and b | |
| 130. |
Funds flow statement being based on ________________, which is of limited utility for future planning is a limitation of funds flow statement. |
| A. | Historical Facts |
| B. | Traditional Facts |
| C. | Hypothetical Facts |
| D. | Current Facts |
| Answer» A. Historical Facts | |
| 131. |
Which one of the following is NOT a theory of International Parity Relationship |
| A. | Purchasing Power Parity |
| B. | Covered Interest Arbitrage and Interest Rate Parity |
| C. | Money Market Hedge Theory |
| D. | Expectations Theory |
| Answer» C. Money Market Hedge Theory | |
| 132. |
Indirect Quotation is also known as ___________ |
| A. | European Quotation |
| B. | Indian Quotation |
| C. | American Quotation |
| D. | Euro Quotation |
| Answer» C. American Quotation | |
| 133. |
The spread in a two way quotation is affected by |
| A. | Currency involved |
| B. | The volume of business |
| C. | Market sentiments/rumours about the currency |
| D. | All of the above |
| Answer» D. All of the above | |
| 134. |
The Rate of Exchange applicable for delivery of Foreign Exchange at a future date is called ______ |
| A. | Spot Rate |
| B. | Current Rate |
| C. | Forward Rate |
| D. | Expected Rate |
| Answer» C. Forward Rate | |
| 135. |
The act of arbitrage that involves three foreign currencies involving three different foreign exchange market is called __________ |
| A. | Geographical Arbitrage |
| B. | Triangular Arbitrage |
| C. | Cross Arbitrage |
| D. | None of the Above |
| Answer» B. Triangular Arbitrage | |
| 136. |
An option to buy is called a _______ |
| A. | Put Option |
| B. | Bid Option |
| C. | Call Option |
| D. | Preemptive Option |
| Answer» C. Call Option | |
| 137. |
‘Speculators’ in the market _______________ |
| A. | Need foreign currency to pay their import obligations |
| B. | Invest in securities of foreign country |
| C. | Try to profit from exchange rate movements |
| D. | None of the Above |
| Answer» C. Try to profit from exchange rate movements | |
| 138. |
Which one of the following is NOT a Foreign Exchange Risk Management Technique |
| A. | Forward Contract |
| B. | Futures Contract |
| C. | External Commercial Borrowing |
| D. | Currency Options |
| Answer» C. External Commercial Borrowing | |
| 139. |
Default risk is higher in which one of the following? |
| A. | Forward Contracts |
| B. | Futures Contracts |
| C. | Equal in both a and b |
| D. | None of the Above |
| Answer» A. Forward Contracts | |
| 140. |
A financial instrument that provides its holder a right but no obligation to buy or sell a pre-specified amount of a foreign currency at a pre-determined rate is referred to as ____________ |
| A. | A Promise |
| B. | An Option |
| C. | An Obligation |
| D. | A Swap |
| Answer» B. An Option | |
| 141. |
Establishment of new plants and offices overseas by MNC as a mean of FDI is |
| A. | A Greenfield Investment |
| B. | A Brownfield Investment |
| C. | Vertical FDI |
| D. | None of the Above |
| Answer» A. A Greenfield Investment | |
| 142. |
Hilton Hotels of United States opening a hotel in Mumbai, India is ____________ |
| A. | A Horizontal FDI |
| B. | A Vertical FDI |
| C. | A Conglomerate FDI |
| D. | None of the Above |
| Answer» A. A Horizontal FDI | |
| 143. |
There are basically two approaches to find out NPV of a foreign based project’s capital budgeting exercise. Which are those two? |
| A. | Home Currency and foreign currency approaches |
| B. | One Currency and Multi Currency Approaches |
| C. | Home Country and Foreign Country Approaches |
| D. | None of the Above |
| Answer» A. Home Currency and foreign currency approaches | |
| 144. |
F1 = 𝑆1 𝑒 denotes |
| A. | Purchasing Power Parity |
| B. | Covered Interest Arbitrage and Interest Rate Parity |
| C. | Expectations Theory |
| D. | International Fisher Effect |
| Answer» C. Expectations Theory | |
| 145. |
If there are no costs or other barriers associated with the movement of goods or services across countries, the price of each product should be the same in each country, after making appropriate currency conversions. It is called ____________ in Economics. |
| A. | Law of Similar Mortgage Rate |
| B. | Law of Similar Labour Rules |
| C. | Law of One Price |
| D. | Law of One type of Manufacturing |
| Answer» C. Law of One Price | |
| 146. |
The current spot rate for the Euro is Rs. 86,the expected inflation rate is 5 in India and 3 in Europe. What is the expected Spot Rate of Euro one year hence? |
| A. | Rs. 87.67/Euro |
| B. | Rs. 84.36/Euro |
| C. | Rs. 86/Euro |
| D. | Rs. 93/Euro |
| Answer» A. Rs. 87.67/Euro | |
| 147. |
When an Option can be exercised on any date up to maturity, it is called |
| A. | A Flexible Option |
| B. | An European Option |
| C. | A British Option |
| D. | An American Option |
| Answer» D. An American Option | |
| 148. |
Is it necessary for an organization to own 100 % of an overseas firm for its investment to be classified as an FDI? |
| A. | Yes |
| B. | No |
| C. | none |
| D. | none |
| Answer» B. No | |
| 149. |
Capital investment made by firms in another county is called______ |
| A. | Foreign Direct Investment |
| B. | Foreign Direct Involvement |
| C. | Foreign Debt Investment |
| D. | None of he Above |
| Answer» A. Foreign Direct Investment | |
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