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
102.
Domestic factoring include Customers, Client ……..
A.
All of these
B.
Customers
C.
Financial Intermediary
D.
buyers & seller
Answer»
A. All of these
103.
The word forfeit is derived from …..
A.
French word
B.
Latin word
C.
Greek word
D.
None of these
Answer»
A. French word
104.
Forfiet means …………
A.
Surrendered of rights
B.
Factors & the Purchaser
C.
Sole trader’s Banks
D.
None of these
Answer»
A. Surrendered of rights
105.
Forfeiter determines ………..risk & risk.
A.
Country & Credit
B.
Factors & the Purchaser
C.
Cash & Banks
D.
None of these
Answer»
A. Country & Credit
106.
Forfeiting transaction is covered with ………..
A.
Promissory Notes
B.
Certificate
C.
Dishonor bill
D.
None of these
Answer»
A. Promissory Notes
107.
The first rating AGENCY is …………was started in…..
A.
CRISIL, 1988
B.
ICRA , 1993
C.
DCR, 1996
D.
ONICRA, 1995
Answer»
A. CRISIL, 1988
108.
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
109.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a road towards a high growth economy.
A.
Venture capital
B.
Merchant banking
C.
Leasing
D.
None of these.
Answer»
A. Venture capital
110.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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
111.
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
112.
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
113.
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
114.
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
115.
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
116.
High risk is an outstanding feature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.
Mutual fund
B.
venture capital
C.
Debenture finance
D.
govt. bonds.
Answer»
B. venture capital
117.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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
118.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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
119.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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
120.
‐‐‐‐‐‐‐‐‐‐‐‐‐ 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
121.
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
Chapter: Banking and Insurance Sector in India
122.
Indian Commercial Banks are categorized into:
A.
Public sector Banks
B.
Foreign Banks
C.
Private Sector Banks
D.
All of the above
Answer»
D. All of the above
123.
Regional Rural Banks have been set up with the basic objectives of:
A.
Providing credit to semi - urban & urban population
B.
Providing deposits facilities to farmers
C.
Providing credit & deposit facilities to rural areas
D.
providing credit, deposit and other banking facilities to people in rural
Answer»
D. providing credit, deposit and other banking facilities to people in rural
124.
_____ is raised in capital markets
A.
Funds through long term securities
B.
Long term loans through Govt. securities
C.
medium term loans
D.
Short - term instruments
Answer»
A. Funds through long term securities
125.
Interest on Government secu-rities on fixed basis is known as:
A.
Bank rate
B.
Coupon
C.
Prime Lending Rate
D.
Bench mark PLR
Answer»
A. Bank rate
126.
__ was not nationalized in 1969:
A.
Punjab National Bank
B.
Oriental Bank of commerce
C.
Bank of Baroda
D.
Union Bank of India
Answer»
B. Oriental Bank of commerce
127.
In the first round 14 major banks with a liability base of ____ were
nationalized:
A.
10 crore or more
B.
20 crore or more
C.
50 crore or more
D.
100 crore or more
Answer»
C. 50 crore or more
128.
The maximum Statutory Liquidity Ratio to be maintained by banks is_____:
A.
25%
B.
30%
C.
35%
D.
40%
Answer»
D. 40%
129.
CRR funds are kept by the Banks in ____:
A.
Cash in hand at branches
B.
Balance with other banks
C.
Balance in a special Account with RBI
D.
Funds in the currency chest
Answer»
C. Balance in a special Account with RBI
130.
An increase in CRR by RBI leads to:
A.
Decrease in deposit
B.
increase in deposit
C.
Increase in lendable resources
D.
Decrease in lendable resources
Answer»
D. Decrease in lendable resources
131.
When RBI reduce the CRR it results into:
A.
Decrease in deposit
B.
increase in deposit
C.
Increase in lendable resources
D.
Decrease in lendable resources
Answer»
C. Increase in lendable resources
132.
What is meant by development Oriented banking?
A.
Infrastructure financing
B.
Extending loans to States, which are un development
C.
Taking up the task of development of the economy by providing support to under privileged sections of the society
D.
All the above
Answer»
C. Taking up the task of development of the economy by providing support to under privileged sections of the society
133.
Principal functions of SIDBI:
A.
Promotion of SSI
B.
Finance of SSI
C.
Development of SSI
D.
All the above
Answer»
D. All the above
134.
____ heads and conducts the affairs of RBI:
A.
Central Board
B.
local board
C.
Regional board
D.
All of the above
Answer»
A. Central Board
135.
RBI Provides ____ for meeting day - to - day receipt and expenditure
mismatch to both Central and State Governments.
A.
treasury bills
B.
Ways and Means advance
C.
date and securities
D.
All the above
Answer»
B. Ways and Means advance
136.
RBI known as lender of last resort because:
A.
It has to meet the credit need of citizens to whom no one else is willing to lend
B.
Banks lend to go to RBI as a last resort
C.
It comes to help banks in times of crisis
D.
All of the above
Answer»
C. It comes to help banks in times of crisis
137.
These days RBI uses Selective credit control measures rather infrequently
because of:
A.
Deregulation of functions
B.
Autonomy given to banks
C.
Comfortable liquidity
D.
Reasonable inflation level
Answer»
C. Comfortable liquidity
138.
Which is incorrect with regard to powers of RBI:
A.
Holds cash reserve banks
B.
Controls banking system through licensing
C.
Supervises Banking system through inspection
D.
None of the above
Answer»
D. None of the above
139.
Intervenes in markets to maintain the external value of the Indian rupee:
A.
Exporters
B.
Importers
C.
RBI
D.
IMF
Answer»
C. RBI
140.
Regional Rural Banks were set up on the recommendations of:
A.
Nariman committee
B.
Narasimham committee
C.
Gadgil committee
D.
Puri committee
Answer»
B. Narasimham committee
141.
Committee, launched the process of reforms of financial system in India:
A.
Gadgil committee
B.
Nariman committee
C.
Narasimham committee
D.
khanna Committee
Answer»
C. Narasimham committee
142.
Which of the following can be categories as a Merchant Banking service?
A.
Consultancy on finance to a company
B.
Advance in capital structure
C.
Managing mergers
D.
Helping in finalizing take over
Answer»
C. Managing mergers
143.
The instrument which provides proprietary interest in company and
which entitles a person to dividend on profits, is called?
A.
Bond
B.
Share
C.
Debenture
D.
Warrant
Answer»
B. Share
144.
Which of the following provides proper definition of a Mutual Funds?
A.
It is an association of members of public
B.
These members want to invest in financial instrument
C.
They want to invest in financial instrument assts of business sector
D.
All the above
Answer»
D. All the above
145.
Which of the following organisations/agencies works solely to monitor
and arrange flow of agriculture credit in India?
A.
NABARD
B.
SIDBI
C.
RBI
D.
SEBI
Answer»
A. NABARD
146.
The currency notes of which of the following denominations are not
printed in India ?
A.
Rs. 5
B.
Rs. 10
C.
Rs. 50
D.
Rs. 2500
Answer»
D. Rs. 2500
147.
Which of the following is not the name of a bank functioning in India?
A.
Central Bank of India
B.
UCO Bank
C.
Aegon Religare
D.
Dena Bank
Answer»
C. Aegon Religare
148.
When banks accept a fixed sum of money from an individual for a definite
term and pay on maturity with interest, the deposit is known as :
A.
Term Deposit
B.
Demand Deposit
C.
Bond
D.
Mortgage
Answer»
A. Term Deposit
149.
Who amongst the following is the chief of SEBI?
A.
Milind Bhave
B.
UK Sinha
C.
Shashikath Verma
D.
Shyamala Gopinath
Answer»
B. UK Sinha
150.
Which of the following is a leading electronic-payment tec-hnology firm?
A.
Visa
B.
Max
C.
BSE
D.
Sensex
Answer»
A. Visa
151.
The basic function of…………are to accept to deposits, lend money and act
as collection and paying agents.
A.
Banks
B.
. Non Banking Institutes
C.
Sock exchange
D.
Brokers
Answer»
A. Banks
152.
The RBI was nationalized by the Reserve Bank (amendment ) …………...
A.
Act 1948
B.
. Act 1932
C.
Act 1962
D.
Act 1963
Answer»
A. Act 1948
153.
The baking system was……….during the early 90’s which led to greater
competition and higher Production.
A.
Liberalized
B.
Centralized
C.
Decentralized
D.
None of these
Answer»
A. Liberalized
154.
The baking sector is the most important part of the……….and it promotes
economic development of the country.
A.
financial system
B.
Financial Procedure
C.
Technology
D.
Underwriting
Answer»
A. financial system
155.
The…………..has economic significance and social purpose.
A.
Insurance industry
B.
Financial banks
C.
mutual fund
D.
Underwriting
Answer»
A. Insurance industry
156.
The……… are financial intermediate that collect and invest large
amount of premiums.
A.
Insurance Companies
B.
non banking Institutes
C.
Stock Exchange
D.
SEBI
Answer»
A. Insurance Companies
157.
The 1st life insurance company namely………. was establishment in
Kolkata in 1818
A.
oriental life insurance co
B.
ICICI prudential
C.
Tata LIC
D.
SBI LIC
Answer»
A. oriental life insurance co
158.
The commercial banking system in India consists………….&………….
A.
Scheduled & Unscheduled Banks
B.
Bank & Non Banking Institutions
C.
Organised & unorganized Banks
D.
none of these
Answer»
A. Scheduled & Unscheduled Banks
159.
………..banks are considered as the heart of our financial structure that
makes the completely utilization of the resources of the nation.
A.
financial system
B.
Financial Procedure
C.
Technology
D.
Underwriting
Answer»
A. financial system
160.
………….banks are known as local area banks.
A.
Uncheduled banks
B.
Financial Institutions
C.
Organised Banks
D.
none of these
Answer»
A. Uncheduled banks
161.
…………….these banks are controlled by the Government.
A.
Public Sector Banks
B.
Organised Banks
C.
Scheduled Banks
D.
none of these
Answer»
A. Public Sector Banks
162.
………………banks are registered as companies with limited liability.
A.
Private Sector Banks
B.
Public sector Banks
C.
Scheduled Banks
D.
commercial banks
Answer»
A. Private Sector Banks
163.
…………… banks were establishment mainly due to the development of trade
with our countries.
A.
Foreign Banks
B.
Organised Banks
C.
Scheduled Banks
D.
none of these
Answer»
A. Foreign Banks
164.
…………… banks are involved with financing of foreign trade and activities.
A.
Foreign Banks
B.
Organised Banks
C.
Scheduled Banks
D.
none of these
Answer»
A. Foreign Banks
165.
…………… banks aims to increase the flow of credit and availability of
banking facilities to Rural areas and to the poorer section of the rural population.
A.
Regional Rural Banks
B.
Organised Banks
C.
Scheduled Banks
D.
Cooperative Banks
Answer»
A. Regional Rural Banks
166.
The basic ideamovement is that poor people should come together and
develop banking habits within small means.
A.
Cooperative
B.
Organised
C.
Scheduling
D.
none of these
Answer»
A. Cooperative
167.
…………..banks act as catalytic agents in promoting balanced development of
the country.
A.
Development Banks
B.
Organised Banks
C.
Scheduled Banks
D.
none of these
Answer»
A. Development Banks
168.
………… means indemnity or protection against risk of loss by spreading the risk over a number of a person, who are exposed to it and who is agree to insure themselves against risk.
A.
Insurance
B.
Bank Over Draft
C.
Premium
D.
none of these
Answer»
A. Insurance
169.
The LIC was Establishment on……………..
A.
1st Sep 1956
B.
2nd Sep 1956
C.
15th Aug 1949
D.
1st Jan 1947
Answer»
A. 1st Sep 1956
170.
…………….banks can borrow from the Reserve Bank of India based on the eligible securities or get the financial assistance in times of need by rediscounting bills of Exchange.
A.
Scheduled Banks
B.
Organised Banks
C.
Scheduled Banks
D.
none of these
Answer»
A. Scheduled Banks
171.
The first bank to set up a separate merchant banking division in India.
A.
Punjab national bank
B.
Standard charted bank
C.
National & Grin days bank
D.
National city bank.
Answer»
A. Punjab national bank
Chapter: Recent Trends in Accounting and Finance
172.
As a discipline to be one of the most important element in the business
world where money is almost everything.
A.
Accounting
B.
Standardizing
C.
Recording
D.
none of these
Answer»
A. Accounting
173.
Budgeting requires eliminating redundant expenditure that no longer serves
any clearly defined purpose.
A.
Zero based
B.
Open end
C.
Financial
D.
none of these
Answer»
A. Zero based
174.
The second approach in the application of Zero-based Budgeting (ZBB) is to
identify and remove duplication or expenditure.
A.
Multiplication
B.
Divided
C.
Adding
D.
triple
Answer»
A. Multiplication
175.
A system of zero-based budgeting was first introduced formally in the
United States Department of Agriculture in preparing its budget.
A.
Fiscal year
B.
Leap Year
C.
Academic Year
D.
Draconic year
Answer»
A. Fiscal year
176.
Zero-based budgeting was introduced for the first time in a government
system by …………………..
A.
Jimmy Carter
B.
F.W.Tailor
C.
Robert Shiller
D.
Abhijit Banarjee
Answer»
A. Jimmy Carter
177.
A decision package includes…………..justification for budget estimates of an
activity.
A.
Comprehensive
B.
Comparative
C.
Duplicated
D.
none of these
Answer»
A. Comprehensive
178.
A main factor contributing to the failure of zero-based budgeting has been
due to too much of……………..involved in the procedure.
A.
Paper work
B.
Computerized work
C.
Manual Work
D.
none of these
Answer»
A. Paper work
179.
………………. manpower is a hard task for management.
A.
Re-Deploying
B.
Deploying
C.
Scheduling
D.
none of these
Answer»
A. Re-Deploying
180.
Situation of resource crunch when demands for desirable expenditure are
far ………………….. the available resources.
A.
out stripping
B.
in stripping
C.
overlapping
D.
none of these
Answer»
A. out stripping
181.
Zero-based budgeting is an approach to budgeting that begins from the principle that………………. or activities Should be factored into the plans for the coming budget period.
A.
no cost
B.
no Value
C.
zero budget
D.
none of these
Answer»
A. no cost
182.
Zero-based budgeting first came out in …………..
A.
1960
B.
1980
C.
1950
D.
1999
Answer»
A. 1960
183.
The ‘………….. ’ is a term associated with ZBB, and refers to an analysis of
each discrete activity, according to cost and purpose.
A.
Decision Package
B.
Zero budgeting Plan
C.
Accountancy
D.
Short Sales
Answer»
A. Decision Package
184.
The key benefit is that serves to concentrate attention on the……………
A.
Zero based budgeting
B.
Activity based badgeting
C.
Value preposition budgeting
D.
none of these
Answer»
A. Zero based budgeting
185.
ZBB can offer a number of advantages when it is applied …………..
A.
intelligently
B.
Ascending order
C.
Descending order
D.
none of these
Answer»
A. intelligently
186.
The basic process of zero-based budgeting is to justify budget requests for every , regardless of prior period budgets.
A.
Budgeting cycle
B.
Reuse cycle
C.
recession cycle
D.
none of these
Answer»
A. Budgeting cycle
187.
Zero-based budgeting addresses such problems that can take place with
……………. rolling budgets.
A.
Conventional
B.
Non conventional
C.
budging
D.
none of these
Answer»
A. Conventional
188.
…………… accounting is a financial reporting process which records the
results of inflation on the financial statement that a firm prepare and published at the end of the financial year.
A.
Inflation
B.
Corporate
C.
Management
D.
Bank
Answer»
A. Inflation
189.
One of the most significant and basic principle of the accounting process is
called as the …………..Principle.
A.
measuring Unit
B.
Non Measuring Unit
C.
Scheduled Unit
D.
none of these
Answer»
A. measuring Unit
190.
Inflation accounting as already stated is also called as the …………..
accounting.
A.
Price Level Accounting
B.
Inflationary Accounting
C.
corporate accounting
D.
Management Accounting
Answer»
A. Price Level Accounting
191.
The impact of inflation comes in the form of rising prices of…………….. and
Assets.
A.
Output
B.
Surplus
C.
Liabilities
D.
Deficit
Answer»
A. Output
More MCQs
192.
————— includes all activities involved in the transformation of savings into
investment.
A.
Financial system
B.
Financial service
C.
Economic system
D.
Saving system
Answer»
B. Financial service
193.
Underwriting of shares by a financial intermediary is a kind of ————— activity.
A.
Fee based
B.
Fund based
C.
Both of these
D.
None of these
Answer»
B. Fund based
194.
————— services are mainly provided to foreign investors.
A.
Custodial services
B.
Financial services
C.
Factoring services
D.
None of these
Answer»
A. Custodial services
195.
Term lending institutions are ————— market intermediaries.
A.
Money market
B.
Bill market
C.
Capital market
D.
None of these
Answer»
C. Capital market
196.
The minimum net worth for the first category of merchant banker is Rs. —————
A.
2 crore
B.
5 crore
C.
1crore
D.
10 crore
Answer»
C. 1crore
197.
A merchant banker can claim a charge —————% as the commission for the whole
issue.
A.
5
B.
10
C.
2.5
D.
0.5
Answer»
D. 0.5
198.
————— fund invests in highly liquid securities like commercial paper.
A.
Equity fund
B.
Balanced fund
C.
Income fund
D.
Money market mutual fund
Answer»
D. Money market mutual fund
199.
The company which sets up a mutual fund is called —————
A.
Fund company
B.
Sponsor
C.
Originator
D.
Obligator
Answer»
B. Sponsor
200.
The small investors’ gateway to enter into big companies is —————
