McqMate
Chapters
| 201. |
The process of selling trade debts of a client to a financial intermediary is called ——— |
| A. | Bill discounting |
| B. | Factoring |
| C. | Securitisation |
| D. | Materialisation |
| Answer» B. Factoring | |
| 202. |
The idea of providing factoring services was first thought of in India by ————— |
| A. | Tandem Committee |
| B. | Malhotra committee |
| C. | Vaghul committee |
| D. | None of these |
| Answer» C. Vaghul committee | |
| 203. |
The central theme of forfaiting is the purchasing of ————— by a financial service company. |
| A. | Trade bills |
| B. | Export bills |
| C. | Import bills |
| D. | All of these |
| Answer» B. Export bills | |
| 204. |
In India, forfaiting is done by ————— bank |
| A. | Foreign bank |
| B. | RBI |
| C. | Commercial bank |
| D. | EXIM bank |
| Answer» D. EXIM bank | |
| 205. |
The minimum size of venture capital fund is Rs. ————— |
| A. | 1 crore |
| B. | 5 crore |
| C. | 10 crore |
| D. | 2 crore |
| Answer» C. 10 crore | |
| 206. |
Venture capital is originated in ————— |
| A. | India |
| B. | France |
| C. | Britain |
| D. | USA |
| Answer» D. USA | |
| 207. |
————— is considered to be the father of venture capital. |
| A. | Dariot |
| B. | Vaghul |
| C. | Modigliani |
| D. | Jimmy carter |
| Answer» A. Dariot | |
| 208. |
In the implementation stage of a project, venture capital firms provide ————— finance |
| A. | Mezzanine finance |
| B. | Seed finance |
| C. | Start up |
| D. | All of these |
| Answer» C. Start up | |
| 209. |
Which of the following is a fee based service |
| A. | hire purchase |
| B. | leasing |
| C. | capital issue management |
| D. | Underwriting. |
| Answer» C. capital issue management | |
| 210. |
Find the odd one out |
| A. | Commercial paper, |
| B. | Share certificate, |
| C. | Certificate of deposit, |
| D. | Treasury bill. |
| Answer» B. Share certificate, | |
| 211. |
The process of managing the sales ledger of a client by a financial service company is called factoring |
| A. | Factoring |
| B. | Forfaiting |
| C. | Bill discounting |
| D. | None of these |
| Answer» A. Factoring | |
| 212. |
The best suited fund to the business people is |
| A. | income fund, |
| B. | balanced fund, |
| C. | growth fund, |
| D. | None of these. |
| Answer» C. growth fund, | |
| 213. |
Mutual funds are very popular in |
| A. | USA, |
| B. | UK, |
| C. | Japan, |
| D. | India |
| Answer» A. USA, | |
| 214. |
In India, the company which actually deals with the corpus of the mutual fund is called |
| A. | sponsor company, |
| B. | trustee company, |
| C. | asset management company |
| D. | Mutual fund company. , |
| Answer» C. asset management company | |
| 215. |
Trade debts have to be assigned in favour of the financing company under |
| A. | discounting, |
| B. | forfaiting, |
| C. | factoring, |
| D. | All of these. |
| Answer» C. factoring, | |
| 216. |
Under factoring the factor acts in the capacity of |
| A. | an agent of his client, |
| B. | a trustee, |
| C. | a holder for value, |
| D. | An administrator. |
| Answer» C. a holder for value, | |
| 217. |
The first bank in India to start factoring business is |
| A. | Canara bank, |
| B. | SBI, |
| C. | Punjab National Bank, |
| D. | Allahabad Bank. |
| Answer» B. SBI, | |
| 218. |
The inflation free instrument is _____________. |
| A. | Option bond |
| B. | Variable rate bond |
| C. | Index-linked guilt bond |
| D. | Deep discount bond |
| Answer» C. Index-linked guilt bond | |
| 219. |
Financial derivatives are mainly used for ______________. |
| A. | Speculative activities |
| B. | Creating more risks |
| C. | Hedging risks. |
| D. | Earning income |
| Answer» C. Hedging risks. | |
| 220. |
In an option contract, if the option can be exercised only at the time of maturity, it. is called_____ |
| A. | Double option |
| B. | American option |
| C. | Put option. |
| D. | European option |
| Answer» D. European option | |
| 221. |
The predetermined price at which an underlying asset has to be bought or sold in. an option contract is called ________. |
| A. | Option price. |
| B. | Exercise price |
| C. | Spot price |
| D. | Future price |
| Answer» B. Exercise price | |
| 222. |
Combination of forwards by two counterparties with opposite but matching need is called |
| A. | Swap |
| B. | Option |
| C. | Forwa |
| Answer» A. Swap | |
| 223. |
The first Indian Bank to set up Merchant Banking division in India is ___________. |
| A. | UCO Bank |
| B. | State Bank of India |
| C. | ICICI. |
| D. | Punjab National Bank |
| Answer» B. State Bank of India | |
| 224. |
A very long tenure lease applicable to immovable properties is ____________. |
| A. | Leverage lease |
| B. | Conveyance lease |
| C. | Consumer leasing |
| D. | Balloon lease. |
| Answer» B. Conveyance lease | |
| 225. |
When the lessee is allowed to exchange equipment leased out whenever the original asset has to be sent to the lessor for some repair or maintenance, such type of lease is called _____. |
| A. | Wrap lease |
| B. | Import lease |
| C. | Swap lease. |
| D. | Leveraged lease |
| Answer» C. Swap lease. | |
| 226. |
Refactoring charges have to be paid in the case of ___________. |
| A. | Maturity factoring |
| B. | With recourse factoring |
| C. | Invoice factoring |
| D. | Full service factoring |
| Answer» B. With recourse factoring | |
| 227. |
Under forfaiting the client is able to get credit facility to the extent of ____________. |
| A. | 100 % of the value of the export bill |
| B. | 80% of the value of the export bill. |
| C. | 75% of the value of the export bill |
| D. | 90% of the value of the export bill |
| Answer» A. 100 % of the value of the export bill | |
| 228. |
The concept of securitisation is associated with ___________. |
| A. | Capital market |
| B. | Money market. |
| C. | Debt market. |
| D. | Foreign exchange market. |
| Answer» C. Debt market. | |
| 229. |
In the case of securitisation, the trade debts and receivables are mostly in the nature of _____. |
| A. | Short-term. |
| B. | Medium – term |
| C. | Long-term |
| D. | Both medium term and long term |
| Answer» D. Both medium term and long term | |
| 230. |
Under securitisation, selected pool of assets are ‘passed through’, for converting them into securities, to another institution called:. |
| A. | Originator. |
| B. | Special purpose vehicle |
| C. | Credit rating company |
| D. | Servicing agent. |
| Answer» B. Special purpose vehicle | |
| 231. |
Which one of the following is a short term debt instrument?. |
| A. | Preferred stock certificate |
| B. | Pass through certificate |
| C. | Asset based commercial certificate |
| D. | Principal only certificate |
| Answer» A. Preferred stock certificate | |
| 232. |
The asset generally not suitable for securitisation is ______________. |
| A. | Receivables from government department |
| B. | Trade receivables |
| C. | Hire purchase finance receivables |
| D. | Mortgage loans |
| Answer» B. Trade receivables | |
| 233. |
--------- variety of mutual fund is known as “Nest Eggs” |
| A. | Balanced Funds |
| B. | Fund of funds |
| C. | Money Market Mutual fund |
| D. | Growth oriented funds |
| Answer» D. Growth oriented funds | |
| 234. |
Generally mutual funds are of |
| A. | High risk |
| B. | Risk free |
| C. | Low risk |
| D. | Any of the above |
| Answer» C. Low risk | |
| 235. |
The corpus of funds and its duration is fixed in case of ------- fund |
| A. | Open ended |
| B. | Balanced |
| C. | Close ended |
| D. | Income fund |
| Answer» C. Close ended | |
| 236. |
The market performance of mutual fund can be judged on the basis of |
| A. | Net asset value or intrinsic value |
| B. | Capital appreciation |
| C. | Regular / stable income |
| D. | Any of these |
| Answer» C. Regular / stable income | |
| 237. |
----------- is the regulator of mutual funds in India |
| A. | RBI |
| B. | IRDA |
| C. | SEBI |
| D. | Both SEBI and GOI |
| Answer» D. Both SEBI and GOI | |
| 238. |
------ is the venture capital assistance at the stage where the project started to fetch profit but not reached in its full efficiency |
| A. | Start up capital |
| B. | Mezzanine capital |
| C. | Bridge capital |
| D. | Seed capital |
| Answer» B. Mezzanine capital | |
| 239. |
In ----------leasing, the risk of obsolescence is assumed by the lessee |
| A. | Financial lease |
| B. | Operating lease |
| C. | Both the above |
| D. | None the above |
| Answer» A. Financial lease | |
| 240. |
----------- is a tripartite lease arrangement |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Sale and lease back |
| Answer» C. Leverage lease | |
| 241. |
In hire purchase depreciation can be claimed by the |
| A. | Hirer |
| B. | Vendor |
| C. | Financiers |
| D. | All of these |
| Answer» A. Hirer | |
| 242. |
Equipment leasing is ............... financial service. |
| A. | fund based |
| B. | fee based |
| C. | non-fund based |
| D. | any of the above |
| Answer» A. fund based | |
| 243. |
Managing the capital issue is............. financial services. |
| A. | fund based |
| B. | fee based |
| C. | non-fund based |
| D. | both b and c above |
| Answer» D. both b and c above | |
| 244. |
Fee based financial services are also known as........... |
| A. | fund based |
| B. | capital based |
| C. | non- fund based |
| D. | cash based |
| Answer» C. non- fund based | |
| 245. |
............. is the design, the development and the implementation of innovative financial instruments and processes and the formulation of creative solutions to problem of finance. |
| A. | financial services |
| B. | financial inclusion |
| C. | financial engineering |
| D. | financial innovation |
| Answer» C. financial engineering | |
| 246. |
................ is more or less similar to “Consortium financing”. |
| A. | Merchant banking |
| B. | Retail banking |
| C. | Whole sale banking |
| D. | Loan syndication |
| Answer» D. Loan syndication | |
| 247. |
Yankee bonds are raised in.......... |
| A. | USA |
| B. | UK |
| C. | Japan |
| D. | India |
| Answer» A. USA | |
| 248. |
Samurai bonds are raised in............. |
| A. | USA |
| B. | UK |
| C. | Japan |
| D. | India |
| Answer» C. Japan | |
| 249. |
Type of debt instrument which permit investors to switch between two types of securities. |
| A. | Swap |
| B. | Option |
| C. | Flip-Flop notes |
| D. | ECU bonds |
| Answer» C. Flip-Flop notes | |
| 250. |
The inflation free instrument is........ |
| A. | Option bond |
| B. | Index-linked guilt bond |
| C. | Variable rate bond |
| D. | Deep discount bond |
| Answer» B. Index-linked guilt bond | |
| 251. |
------ bonds are issued at a large discount to their nominal value. |
| A. | Option bond |
| B. | Index-linked guilt bond |
| C. | Variable rate bond |
| D. | Deep discount bond |
| Answer» D. Deep discount bond | |
| 252. |
------- is referred as both fund based and fee based financial service. |
| A. | Hire purchase |
| B. | Leasing |
| C. | Factoring |
| D. | Underwriting |
| Answer» D. Underwriting | |
| 253. |
Direct sale of securities to investors is called.......... |
| A. | Public offer |
| B. | Private placement |
| C. | FPO |
| D. | IPO |
| Answer» B. Private placement | |
| 254. |
Hire Purchase Act passed in the year |
| A. | 1969 |
| B. | 1982 |
| C. | 1972 |
| D. | 1976 |
| Answer» C. 1972 | |
| 255. |
............... supplies machinery to small scale industries under hire purchase system. |
| A. | IDBI |
| B. | SIDMI |
| C. | NSIC |
| D. | DIC |
| Answer» C. NSIC | |
| 256. |
In India, Banks are permitted to carry on Hire purchase business |
| A. | Directly |
| B. | Through its Departments |
| C. | Through subsidiary |
| D. | Any of the above |
| Answer» C. Through subsidiary | |
| 257. |
In hire purchase, till the payment of last instalment, amount paid by hirer is treated as |
| A. | Rent |
| B. | interest |
| C. | cash price |
| D. | all of these |
| Answer» A. Rent | |
| 258. |
With -------- we rent and with .......... we buy the goods. |
| A. | Hire purchase, leasing |
| B. | Leasing, hire purchase |
| C. | Hire purchase, instalment |
| D. | Hire purchase, Credit sale |
| Answer» B. Leasing, hire purchase | |
| 259. |
In.............., lessor fulfils financing function |
| A. | Operating lease |
| B. | Swap lease |
| C. | Financial lease |
| D. | Balloon lease |
| Answer» C. Financial lease | |
| 260. |
In................., Lessor fulfils servicing function |
| A. | Operating lease |
| B. | Swap lease |
| C. | Financial lease |
| D. | Balloon lease |
| Answer» A. Operating lease | |
| 261. |
Credit card facility is a better example of |
| A. | Revolving credit |
| B. | Cash loan |
| C. | Secured credit |
| D. | Fixed credit |
| Answer» A. Revolving credit | |
| 262. |
............... card provides communication security |
| A. | Charge card |
| B. | Smart card |
| C. | Debit card |
| D. | Credit card |
| Answer» C. Debit card | |
| 263. |
--------- is pay later product |
| A. | Debit card |
| B. | Credit card |
| C. | Both a & b |
| D. | None of these |
| Answer» B. Credit card | |
| 264. |
---------- is pay now product |
| A. | Debit card |
| B. | Credit card |
| C. | Both a & b |
| D. | None of these |
| Answer» A. Debit card | |
| 265. |
ATM stands for |
| A. | Automatic Teller Machine |
| B. | Any Time Money |
| C. | Automated Teller machine |
| D. | All Time Machine |
| Answer» C. Automated Teller machine | |
| 266. |
Andhra bank and Central bank of India introduced credit card in India in |
| A. | 1991 |
| B. | 1981 |
| C. | 1984 |
| D. | 1990 |
| Answer» B. 1981 | |
| 267. |
“India Card” was introduced by |
| A. | Central Bank of India |
| B. | Bank of India |
| C. | Indian Overseas bank |
| D. | SBI |
| Answer» B. Bank of India | |
| 268. |
Full service factoring is often |
| A. | Recourse factoring |
| B. | Non-recourse factoring |
| C. | Agency factoring |
| D. | None of these |
| Answer» A. Recourse factoring | |
| 269. |
Disclosed factoring is also known as |
| A. | Recourse factoring |
| B. | Non-recourse factoring |
| C. | Agency factoring |
| D. | Notified factoring |
| Answer» D. Notified factoring | |
| 270. |
Maturity factoring is also known as |
| A. | Maturity factoring |
| B. | Disclosed factoring |
| C. | Agency factoring |
| D. | Notified factoring |
| Answer» A. Maturity factoring | |
| 271. |
“Confidential invoice discounting” is another name of |
| A. | Maturity factoring |
| B. | Disclosed factoring |
| C. | Undisclosed factoring |
| D. | Notified factoring |
| Answer» C. Undisclosed factoring | |
| 272. |
Re-Factoring fee is applicable in case of |
| A. | With recourse factoring |
| B. | Disclosed factoring |
| C. | Agency factoring |
| D. | Notified factoring |
| Answer» A. With recourse factoring | |
| 273. |
.............. Is an “invoice based export finance” technique. |
| A. | International factoring |
| B. | Disclosed factoring |
| C. | Agency factoring |
| D. | Notified factoring |
| Answer» A. International factoring | |
| 274. |
“EDI” in EDIFACTORING stands for |
| A. | Economic Deposit insurance |
| B. | Electronic Data interchange |
| C. | Export Division insurance |
| D. | None of these |
| Answer» B. Electronic Data interchange | |
| 275. |
In ............... lease, leasing company assumes risk of obsolescence. |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Cross boarder lease |
| Answer» B. Operating lease | |
| 276. |
---------- lease contracts are usually non cancellable. |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Cross boarder lease |
| Answer» A. Financial lease | |
| 277. |
Financial lease introduced in India by................... |
| A. | Tata group |
| B. | Reliance group |
| C. | Chidambaram group |
| D. | Murugappa group |
| Answer» C. Chidambaram group | |
| 278. |
Rental loans are given to |
| A. | Tenant |
| B. | Owner of the building |
| C. | Hirer of the cars |
| D. | Any of the above |
| Answer» B. Owner of the building | |
| 279. |
Loans for pensioners are given up to ------- months of pension amount. |
| A. | 12 |
| B. | 36 |
| C. | 24 |
| D. | 6 |
| Answer» D. 6 | |
| 280. |
Consumer loans are granted for |
| A. | Long period |
| B. | Medium period |
| C. | Short period |
| D. | Any of the above |
| Answer» C. Short period | |
| 281. |
Retail banking is confined to ............... customers |
| A. | Corporate |
| B. | Firm |
| C. | Individual |
| D. | Individual and corporate |
| Answer» C. Individual | |
| 282. |
Housing advances are ................. in nature |
| A. | Short term |
| B. | Medium term |
| C. | Long term |
| D. | Any of the above |
| Answer» C. Long term | |
| 283. |
In the private sector, ------------ plays a dominant role in housing finance. |
| A. | ICICI |
| B. | HDFC |
| C. | DHFL |
| D. | LICHFL |
| Answer» B. HDFC | |
| 284. |
Canara bank’s housing finance subsidiary is.......... |
| A. | Can HFL |
| B. | CHFL |
| C. | Can Fin Homes ltd |
| D. | CBHFL |
| Answer» C. Can Fin Homes ltd | |
| 285. |
Housing loan up To Rs................... is considered as priority sector advance. |
| A. | 5 lakh |
| B. | 25 lakh |
| C. | 10 lakh |
| D. | 15 lakh |
| Answer» C. 10 lakh | |
| 286. |
Apex institution set up to deal in housing finance is |
| A. | HDFC |
| B. | NHB |
| C. | HUDCO |
| D. | None of these |
| Answer» B. NHB | |
| 287. |
Institution which gives thrust to urban infrastructure development is |
| A. | HDFC |
| B. | NHB |
| C. | HUDCO |
| D. | DHFL |
| Answer» C. HUDCO | |
| 288. |
Education loan is maximum Rs........... for study in India |
| A. | 5 lakh |
| B. | 7.5 lakh |
| C. | 10 lakh |
| D. | 15 lakh |
| Answer» B. 7.5 lakh | |
| 289. |
No security is insisted upon .................loan |
| A. | Housing |
| B. | Education |
| C. | Vehicle |
| D. | Personal |
| Answer» B. Education | |
| 290. |
Which of the following is/are types of consumer credit? |
| A. | Revolving credit |
| B. | Unsecured credit |
| C. | Secured credit |
| D. | All the above |
| Answer» D. All the above | |
| 291. |
The difference between open-end and closed-end mutual funds is: |
| A. | The total number of shares under management grows and shrinks for open-end funds, but is fixed for closed-end funds |
| B. | Open-end funds can be purchase in a variety of international markets while closed- end funds can only be purchased in their home market |
| C. | The total number of shares under management grows and shrinks for closed-end funds, but is fixed for open-end funds |
| D. | Open-end funds contain securities from various countries while closed-end funds |
| Answer» C. The total number of shares under management grows and shrinks for closed-end funds, but is fixed for open-end funds | |
| 292. |
The material wealth of a society is equal to the sum of _________. |
| A. | All financial assets |
| B. | All real assets |
| C. | All financial and real assets |
| D. | All physical assets |
| Answer» B. All real assets | |
| 293. |
_______ are financial assets |
| A. | Bonds. |
| B. | Machines |
| C. | Stocks. |
| D. | A and C. |
| Answer» A. Bonds. | |
| 294. |
_______ are examples of financial intermediaries |
| A. | Commercial banks |
| B. | Insurance companies |
| C. | Investment companies |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 295. |
Financial intermediaries exist because small investors cannot efficiently ________. |
| A. | Diversify their portfolios |
| B. | Gather all relevant information |
| C. | Assess credit risk of borrowers |
| D. | All of the above |
| Answer» D. All of the above | |
| 296. |
Firms that specialize in helping companies raise capital by selling securities are called--- |
| A. | Commercial banks |
| B. | Merchant banks |
| C. | Savings banks |
| D. | Credit unions |
| Answer» B. Merchant banks | |
| 297. |
Financial assets ______. |
| A. | Directly contribute to the country's productive capacity |
| B. | Indirectly contribute to the country's productive capacity |
| C. | Contribute to the country's productive capacity both directly and indirectly. |
| D. | Do not contribute to the country's productive capacity either directly or indirectly. |
| Answer» B. Indirectly contribute to the country's productive capacity | |
| 298. |
The sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of ________. |
| A. | Credit enhancement |
| B. | Securitization. |
| C. | Unbundling |
| D. | Derivatives. |
| Answer» B. Securitization. | |
| 299. |
Merchant bankers perform the following role(s) ___________. |
| A. | Market new stock and bond issues for firms. |
| B. | Provide advice to the firms as to market conditions, price, etc. |
| C. | Provide consultancy services for expansion etc |
| D. | All of the above |
| Answer» D. All of the above | |
| 300. |
The means by which individuals hold their claims on real assets in a well-developed economy are ___________. |
| A. | Investment assets |
| B. | Depository assets |
| C. | Derivative assets |
| D. | Financial assets |
| Answer» D. Financial assets | |
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