McqMate
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
| 101. |
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 | |
| 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 | |
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