Chapter:

30+ Financial Services in India Solved MCQs

in Financial Services

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) .

Chapters

Take a Test

1.	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

2.	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

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

discuss

4.	………………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

5.	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

6.	……….. …..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

7.	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

8.	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

9.	………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

10.	……………… 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⁾

11.	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

12.	……………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

13.	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

14.	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

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

discuss

16.	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

17.	………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

18.	………………….. 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

19.	Numerous factoring arrangements are possible if an agreement is reached between the ………& ……
A.	selling co.& the Factor
B.	Factors & the Purchaser
C.	Sole trader & Banks
D.	None of these
Answer» A. selling co.& the Factor

discuss

20.	Domestic factoring include Customers, Client ……..
A.	All of these
B.	Customers
C.	Financial Intermediary
D.	buyers & seller
Answer» A. All of these

discuss

21.	The word forfeit is derived from …..
A.	French word
B.	Latin word
C.	Greek word
D.	None of these
Answer» A. French word

discuss

22.	Forfiet means …………
A.	Surrendered of rights
B.	Factors & the Purchaser
C.	Sole trader’s Banks
D.	None of these
Answer» A. Surrendered of rights

discuss

23.	Forfeiter determines ………..risk & risk.
A.	Country & Credit
B.	Factors & the Purchaser
C.	Cash & Banks
D.	None of these
Answer» A. Country & Credit

discuss

24.	Forfeiting transaction is covered with ………..
A.	Promissory Notes
B.	Certificate
C.	Dishonor bill
D.	None of these
Answer» A. Promissory Notes

discuss

25.	The first rating AGENCY is …………was started in…..
A.	CRISIL, 1988
B.	ICRA , 1993
C.	DCR, 1996
D.	ONICRA, 1995
Answer» A. CRISIL, 1988

discuss

26.	The term ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers financial investment in a highly risky and growth oriented venture with the objective of earning a high rate of return.
A.	Venture capital
B.	Merchant banking
C.	Leasing
D.	none of these.
Answer» A. Venture capital

discuss

27.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a road towards a high growth economy.
A.	Venture capital
B.	Merchant banking
C.	Leasing
D.	None of these.
Answer» A. Venture capital

discuss

28.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ act as an intermediary to link up the sources of ideas and the sources of fund.
A.	Venture capital
B.	Merchant banking
C.	Leasing
D.	None of these.
Answer» A. Venture capital

discuss

29.	V C Fs of specialized financial institution promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Central government
B.	RBI
C.	state government
D.	None of these.
Answer» A. Central government

discuss

30.	I D B I , I F C I , I C I C I etc. are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	V C F s of specialized financial institution
B.	V C F s of commercial bank
C.	Private V C Fs
D.	None of these.
Answer» A. V C F s of specialized financial institution

discuss

31.	Write the example of V C Fs of state financial institution.
A.	K S I D C
B.	T D I C I
C.	C V C F
D.	None of these.
Answer» A. K S I D C

discuss

32.	Which of the following is a V C F promoted by specialized financial institution.
A.	Indus venture capital fund
B.	I L & FS Venture corporation ltd.
C.	I D B I venture capital fund
D.	None of these.
Answer» C. I D B I venture capital fund

discuss

33.	Off shore VCFs are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ & financial institution.
A.	Foreign banks
B.	Private banks
C.	State banks
D.	None of these.
Answer» A. Foreign banks

discuss

34.	High risk is an outstanding feature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Mutual fund
B.	venture capital
C.	Debenture finance
D.	govt. bonds.
Answer» B. venture capital

discuss

35.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is needed for developing a product in the initial stages.
A.	Seed capital
B.	Startup capital
C.	Second round financing
D.	None of these.
Answer» A. Seed capital

discuss

36.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is needed for product development and initial marketing.
A.	seed capital
B.	Startup capital
C.	first round financing
D.	None of these.
Answer» B. Startup capital

discuss

37.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐ provided at a stage when product has been launched in the market but has not earned enough profits to meet future capital needs.
A.	first round financing
B.	Second round financing
C.	Startup capital
D.	None of these.
Answer» B. Second round financing

discuss

38.	‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is provided for early manufacturing and marketing expense.
A.	Startup capital
B.	seed capital
C.	first round financing
D.	Second round financing
Answer» C. first round financing

discuss

39.	The additional finance provided by VCFs to overcome fledging stage is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Second round financing
B.	) first round financing
C.	seed capital
D.	None of these.
Answer» A. Second round financing

discuss

30+ Financial Services in India Solved MCQs

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.

Numerous factoring arrangements are possible if an agreement is reached between the ………& ……

Domestic factoring include Customers, Client ……..

The word forfeit is derived from …..

Forfiet means …………

Forfeiter determines ………..risk & risk.

Forfeiting transaction is covered with ………..

The first rating AGENCY is …………was started in…..

The term ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers financial investment in a highly risky and growth oriented venture with the objective of earning a high rate of return.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a road towards a high growth economy.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ act as an intermediary to link up the sources of ideas and the sources of fund.

V C Fs of specialized financial institution promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

I D B I , I F C I , I C I C I etc. are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Write the example of V C Fs of state financial institution.

Which of the following is a V C F promoted by specialized financial institution.

Off shore VCFs are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ & financial institution.

High risk is an outstanding feature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is needed for developing a product in the initial stages.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is needed for product development and initial marketing.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐ provided at a stage when product has been launched in the market but has not earned enough profits to meet future capital needs.

‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is provided for early manufacturing and marketing expense.

The additional finance provided by VCFs to overcome fledging stage is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.