McqMate
Chapters
| 301. |
Commercial banks differ from other businesses in that both their assets and their liabilities are mostly ________. |
| A. | Illiquid |
| B. | Financial. |
| C. | Real. |
| D. | Owned by the government |
| Answer» B. Financial. | |
| 302. |
Although derivatives can be used as speculative instruments, businesses most often use them to _________. |
| A. | Attract customers |
| B. | Appease stockholders. |
| C. | Offset debt. |
| D. | Hedge. |
| Answer» D. Hedge. | |
| 303. |
A fixed-income security pays ____________. |
| A. | A fixed level of income for the life of the owner. |
| B. | A fixed level of income for the life of the security. |
| C. | A variable level of income for owners on a fixed income |
| D. | A fixed or variable income stream at the option of the owner. |
| Answer» B. A fixed level of income for the life of the security. | |
| 304. |
Money market securities ____________. |
| A. | Are short term. |
| B. | Are highly marketable |
| C. | Generally very low risk. |
| D. | All of the above |
| Answer» D. All of the above | |
| 305. |
A mutual fund in which shares are issued only when the fund is organized is called a ________fund. |
| A. | Closed-end. |
| B. | Load. |
| C. | No-load |
| D. | Open-end |
| Answer» A. Closed-end. | |
| 306. |
The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is called the:. |
| A. | Book value |
| B. | Outstanding balance |
| C. | Per share value |
| D. | Net asset value. |
| Answer» D. Net asset value. | |
| 307. |
When one investment company manages a group of mutual funds, it is called a(n):. |
| A. | Family funds |
| B. | Exchange fund |
| C. | Diversification fund |
| D. | Versatility fund |
| Answer» A. Family funds | |
| 308. |
Mr. Manoj is buying shares in a mutual fund that invests in companies that are all within the same industry. What type of mutual fund has he purchased? |
| A. | A sector fund |
| B. | A small cap fund. |
| C. | An index fu |
| Answer» A. A sector fund | |
| 309. |
A market for existing financial securities that are currently traded between investors is called the____________ market |
| A. | Fundamental. |
| B. | Efficient. |
| C. | Secondary. |
| D. | Primary. |
| Answer» C. Secondary. | |
| 310. |
Mr. Praveen is thinking about buying an investment. The investment option that he is thinking about buying is an investment where investors pool their money. One of the key features is that it is managed by professional managers. What investment is Mr. Praveen thinking about purchasing?. |
| A. | Common Stock |
| B. | Corporate Bond |
| C. | Real Estate. |
| D. | Mutual Fund. |
| Answer» D. Mutual Fund. | |
| 311. |
Financial intermediaries’ _________. |
| A. | Solve some of the problems associated with asymmetric information. |
| B. | Decrease transaction costs for borrowers and lenders |
| C. | Allow borrowers and lenders to engage in risk sharing |
| D. | All of the above |
| Answer» D. All of the above | |
| 312. |
Which of the following assets is most liquid?. |
| A. | 2 year Treasury bonds |
| B. | Shares of common stock |
| C. | Passbook savings accounts. |
| D. | Gold bars |
| Answer» C. Passbook savings accounts. | |
| 313. |
Under “securitisation process”, the bank or financial institution which gives loan is known as; |
| A. | SPV |
| B. | Obligor |
| C. | Originator |
| D. | Credit enhancer |
| Answer» C. Originator | |
| 314. |
Under “securitisation process”, original borrower is known as; |
| A. | SPV |
| B. | Obligor |
| C. | Originator |
| D. | Credit enhancer |
| Answer» B. Obligor | |
| 315. |
Under “securitisation process”, organisation which gives insurance and guarantee is known as; |
| A. | SPV |
| B. | Obligor |
| C. | Originator |
| D. | Credit enhancer |
| Answer» D. Credit enhancer | |
| 316. |
Under “securitisation process”, ---------- are instruments which issued subsidiary company in respect of receivables of holding or parent company |
| A. | Pass through certificate |
| B. | Pay through certificate |
| C. | Preferred stock certificate |
| D. | None of these |
| Answer» C. Preferred stock certificate | |
| 317. |
-------- certificate under securitisation have multiple maturity structure. |
| A. | Pass through certificate |
| B. | Pay through certificate |
| C. | Preferred stock certificate |
| D. | Interest only certificate |
| Answer» B. Pay through certificate | |
| 318. |
-------- certificate under securitisation have single maturity structure. |
| A. | Pass through certificate |
| B. | Pay through certificate |
| C. | Preferred stock certificate |
| D. | Principle only certificate |
| Answer» A. Pass through certificate | |
| 319. |
Which of the following is / are securitisable asset/debt? |
| A. | Credit card receivable |
| B. | Lease finance |
| C. | Mortgage loan |
| D. | All the above |
| Answer» D. All the above | |
| 320. |
Which of the following is / are securitisable asset/debt? |
| A. | Hire purchase receivable |
| B. | Receivable from Govt. |
| C. | Term loan to financial reputed company |
| D. | All the above |
| Answer» D. All the above | |
| 321. |
Which of the following is / are not securitisable asset/debt? |
| A. | Credit card receivable |
| B. | Bills receivable |
| C. | Mortgage loan |
| D. | All the above |
| Answer» B. Bills receivable | |
| 322. |
Which of the following is not related to securitisation process? |
| A. | Special purpose vehicle |
| B. | Credit rating agency |
| C. | Credit enhancer |
| D. | None of these. |
| Answer» D. None of these. | |
| 323. |
Which of the following is tripartite system? |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Swap lease |
| Answer» C. Leverage lease | |
| 324. |
Equipment lease transaction is treated as contract of............ |
| A. | Bailment |
| B. | Pledge |
| C. | Guarantee |
| D. | Agency |
| Answer» A. Bailment | |
| 325. |
............ lease is for a limited period |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Swap lease |
| Answer» B. Operating lease | |
| 326. |
The entire lease rental is treated as........ in the books of lessor |
| A. | Expense |
| B. | Income |
| C. | Receivable |
| D. | Capital |
| Answer» B. Income | |
| 327. |
Leased asset is shown in the balance sheet of.................. |
| A. | Lessee |
| B. | Lessor |
| C. | Lender |
| D. | Both lessor and lessee in 50:50 ratio |
| Answer» B. Lessor | |
| 328. |
Who can claim investment allowance in relation to leased asset? |
| A. | Lessee |
| B. | Lessor |
| C. | Lender |
| D. | Both lessor and lessee in 50:50 ratio |
| Answer» B. Lessor | |
| 329. |
An average lease agreement involves............. |
| A. | Two parties |
| B. | Three parties |
| C. | Four parties |
| D. | None of these |
| Answer» A. Two parties | |
| 330. |
................. Leasing companies are formrd to promote the sale of its parent company |
| A. | Leverage |
| B. | Financial |
| C. | Vendor |
| D. | Swap |
| Answer» C. Vendor | |
| 331. |
.......... fund generates regular income to the investors on periodical basis. |
| A. | Balanced fund |
| B. | Income fund |
| C. | Growth fund |
| D. | All of these |
| Answer» B. Income fund | |
| 332. |
Income-cum- growth fund is also known as................. |
| A. | Balanced fund |
| B. | Nest eggs |
| C. | Open ended fund |
| D. | Long haul |
| Answer» A. Balanced fund | |
| 333. |
............... fund concentrate mainly on capital appreciation. |
| A. | Balanced fund |
| B. | Income fund |
| C. | Growth fund |
| D. | All of these |
| Answer» C. Growth fund | |
| 334. |
Pure growth fund is also known as |
| A. | Nest eggs |
| B. | Balanced fund |
| C. | Leverage fund |
| D. | Stop gap arrangement |
| Answer» A. Nest eggs | |
| 335. |
Investors generally use............... as a ‘parking place’ or ‘stop gap arrangement” |
| A. | Balanced fund |
| B. | Income fund |
| C. | Growth fund |
| D. | MMMF |
| Answer» D. MMMF | |
| 336. |
................. mutual fund otherwise known as “intrinsic value” |
| A. | Income |
| B. | Capital |
| C. | Portfolio |
| D. | Net asset value |
| Answer» C. Portfolio | |
| 337. |
Best suited fund for a business people is............... |
| A. | Balanced fund |
| B. | Income fund |
| C. | Growth fund |
| D. | Taxation fund |
| Answer» C. Growth fund | |
| 338. |
The facility offered to the investors to shift from one scheme to another under same fund is known as |
| A. | Roll over facility |
| B. | Re purchase facility |
| C. | Re issue facility |
| D. | Lateral shifting facility |
| Answer» D. Lateral shifting facility | |
| 339. |
Which of the following is a type of international factoring? |
| A. | Two factor system |
| B. | Single factor system |
| C. | Direct export factor system |
| D. | All of these |
| Answer» D. All of these | |
| 340. |
................ literally means “relinquish rights to something”. |
| A. | Securitisation |
| B. | Factoring |
| C. | Forfaiting |
| D. | Credit rating |
| Answer» C. Forfaiting | |
| 341. |
Investment Information and Credit Rating Agency of India (IICRA) is a |
| A. | Private company |
| B. | Public company |
| C. | Govt. Company |
| D. | Statutory company |
| Answer» B. Public company | |
| 342. |
--------- variety of mutual fund offers tax benefits to the investors |
| A. | Balanced Funds |
| B. | Fund of funds |
| C. | Money Market Mutual fund |
| D. | Taxation fund |
| Answer» D. Taxation fund | |
| 343. |
Which of the following fund is entirely opposite to bond fund? |
| A. | Balanced |
| B. | Close ended |
| C. | Income fund |
| D. | Aggressive growth fund |
| Answer» D. Aggressive growth fund | |
| 344. |
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» A. Net asset value or intrinsic value | |
| 345. |
------ is the venture capital assistance at the stage of development of business idea |
| A. | Start up capital |
| B. | Mezzanine capital |
| C. | Bridge capital |
| D. | Seed capital |
| Answer» D. Seed capital | |
| 346. |
In ----------leasing, maintenance expenses and taxes are born by the lessee |
| A. | Financial lease |
| B. | Operating lease |
| C. | Both the above |
| D. | None the above |
| Answer» A. Financial lease | |
| 347. |
----------- is suitable lease arrangement for retail shop, mall etc |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Sale and lease back |
| Answer» D. Sale and lease back | |
| 348. |
In hire purchase, who can be enjoying salvage value of asset? |
| A. | Hirer |
| B. | Vendor |
| C. | Financiers |
| D. | All of these |
| Answer» A. Hirer | |
| 349. |
in the case of -------- bonds, the value is inversely related to short term interest rates. |
| A. | Fixed rate bonds |
| B. | Inverse float bonds |
| C. | Perpetual bonds |
| D. | Option bonds |
| Answer» B. Inverse float bonds | |
| 350. |
“D vs. P” system for government securities market means |
| A. | Delivery and payment settlement |
| B. | Dividend and principal settlement |
| C. | Dollar and Pound settlement |
| D. | Delaying and postponement |
| Answer» A. Delivery and payment settlement | |
| 351. |
Non banking financial institutions (NBFIs) are registered under |
| A. | RBI Act |
| B. | Banking Regulation Act |
| C. | Companies Act |
| D. | SEBI Act |
| Answer» C. Companies Act | |
| 352. |
According to IFRS, the term financial asset includes |
| A. | Cash or Cash equivalent |
| B. | Equity shares |
| C. | Contractual right to receive cash |
| D. | All the above |
| Answer» A. Cash or Cash equivalent | |
| 353. |
Which of the following is /are example of primary or direct financial instrument |
| A. | Fixed deposit receipt |
| B. | Insurance policies |
| C. | Mutual fund Unit |
| D. | Debentures |
| Answer» D. Debentures | |
| 354. |
Which of the following is /are example of Secondary or indirect financial instrument |
| A. | Equity shares |
| B. | Preference shares |
| C. | Post office saving deposit |
| D. | Bonds |
| Answer» C. Post office saving deposit | |
| 355. |
A Non Banking Financial Institution |
| A. | Can accept demand deposit |
| B. | Can issue cheques to customers |
| C. | Cannot accept fixed deposit |
| D. | Cannot accept demand deposit and cannot issue cheques |
| Answer» D. Cannot accept demand deposit and cannot issue cheques | |
| 356. |
Kerala State Financial Enterprises ltd (KSFE) is an example of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | State level development banks |
| Answer» C. NBFI | |
| 357. |
UTI, LIC etc are examples of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | Development banks |
| Answer» B. Investment institution | |
| 358. |
SFC is an example of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | Development Institution |
| Answer» D. Development Institution | |
| 359. |
Which of the following is /are not regulatory institutions |
| A. | RBI |
| B. | SEBI |
| C. | IRDA |
| D. | IFCI |
| Answer» C. IRDA | |
| 360. |
Which of the following is not a negotiable instrument? |
| A. | ADR |
| B. | GDR |
| C. | FDR |
| D. | IDR |
| Answer» C. FDR | |
| 361. |
_______ is a financial service which pooling risks of people |
| A. | Mutual fund |
| B. | Venture capital |
| C. | insurance |
| D. | all of these |
| Answer» C. insurance | |
| 362. |
In India Insurance business are regulated by |
| A. | IRBI |
| B. | RBI |
| C. | IRDA |
| D. | IRDP |
| Answer» C. IRDA | |
| 363. |
“Native Stock and Share Brokers Association” is the old name of............ |
| A. | SEBI |
| B. | NSE |
| C. | BSE |
| D. | NASDAQ |
| Answer» C. BSE | |
| 364. |
General insurance business nationalised in the year---------- |
| A. | 1956 |
| B. | 1972 |
| C. | 1969 |
| D. | 1982 |
| Answer» B. 1972 | |
| 365. |
............ is a product whose value is derived from the value of underlying asset |
| A. | Repo |
| B. | T-bills |
| C. | G.sec |
| D. | Derivatives |
| Answer» D. Derivatives | |
| 366. |
BOLT stands for |
| A. | Borrowing or Lending Trade |
| B. | Bombay Online Trading |
| C. | Bond or Loan Transaction |
| D. | None of these |
| Answer» B. Bombay Online Trading | |
| 367. |
--------------is also known as “G.Secs” |
| A. | Gold Traded Fund (GTF) |
| B. | General Securities |
| C. | Govt. Securities |
| D. | Growth oriented fund |
| Answer» C. Govt. Securities | |
| 368. |
.................. are negotiable instrument issued by an overseas depository |
| A. | ADR |
| B. | GDR |
| C. | IDR |
| D. | All of these |
| Answer» D. All of these | |
| 369. |
Perpetual bond is also known as |
| A. | Deep discount bond |
| B. | Irredeemable bond |
| C. | Bearer bond |
| D. | Registered bond |
| Answer» B. Irredeemable bond | |
| 370. |
Zero Coupon Bond is also known as |
| A. | Deep discount bond |
| B. | Irredeemable bond |
| C. | Bearer bond |
| D. | Zero Interest bond |
| Answer» A. Deep discount bond | |
| 371. |
Secured Premium Notes (SPN) always issued with........... |
| A. | Premium |
| B. | Discount |
| C. | Detachable Warrant |
| D. | Coupon |
| Answer» C. Detachable Warrant | |
| 372. |
................ bonds permit the bond holder to invest the interest income again in host bonds |
| A. | Deep discount bond |
| B. | Junk bonds |
| C. | Bearer bond |
| D. | Bunny bonds |
| Answer» D. Bunny bonds | |
| 373. |
...............bonds are high risk and high yield bonds developed in USA |
| A. | Deep discount bond |
| B. | Junk bonds |
| C. | Bearer bond |
| D. | Bunny bonds |
| Answer» B. Junk bonds | |
| 374. |
Dunham Greenberg Formula is used for................ |
| A. | Individual credit rating |
| B. | Institutional credit rating |
| C. | Both of these |
| D. | None of these |
| Answer» A. Individual credit rating | |
| 375. |
CIBIL stands for............ |
| A. | Credit Information Bureau of India ltd |
| B. | Central investment Board of India Ltd |
| C. | Credit and Investment Bureau of India ltd |
| D. | None of these |
| Answer» A. Credit Information Bureau of India ltd | |
| 376. |
UTI established in the year |
| A. | 1968 |
| B. | 1964 |
| C. | 1988 |
| D. | 1969 |
| Answer» B. 1964 | |
| 377. |
In mutual fund, ELSS stands for |
| A. | Entry to Limited Subscribers Scheme |
| B. | Equity Linked Saving Scheme |
| C. | Entry Load for Saving Scheme |
| D. | None of these |
| Answer» B. Equity Linked Saving Scheme | |
| 378. |
.................fund is also known as sectoral fund. |
| A. | Theme fund |
| B. | Contra fund |
| C. | Fund of fund |
| D. | Bond fund |
| Answer» A. Theme fund | |
| 379. |
------------ fund is invested in those companies whose share prices are far below their real worth |
| A. | Theme fund |
| B. | Contra fund |
| C. | Fund of fund |
| D. | Bond fund |
| Answer» B. Contra fund | |
| 380. |
............ fund are used to purchase units of other Mutual funds. |
| A. | Theme fund |
| B. | Contra fund |
| C. | Fund of fund |
| D. | Bond fund |
| Answer» C. Fund of fund | |
| 381. |
In Mutual fund arena, SIP stands for |
| A. | Structural investment plan |
| B. | Systematic investment plan |
| C. | Stable Income plan |
| D. | None of these |
| Answer» B. Systematic investment plan | |
| 382. |
.................is pooling of risks |
| A. | Mutual fund |
| B. | Insurance |
| C. | Credit rating |
| D. | Guarantee |
| Answer» B. Insurance | |
| 383. |
.................. is pooling of small savings |
| A. | Mutual fund |
| B. | Insurance |
| C. | Credit rating |
| D. | Guarantee |
| Answer» A. Mutual fund | |
| 384. |
Which Institution was first SPV for securitisation in India? |
| A. | City bank |
| B. | Grindlays Bank |
| C. | SBI |
| D. | PNB |
| Answer» A. City bank | |
| 385. |
Whose long term receivables were securitised first in India? |
| A. | SBI |
| B. | ICICI |
| C. | PNB |
| D. | Telco |
| Answer» B. ICICI | |
| 386. |
.................... card is a convenient means of payment rather than credit facility. |
| A. | Smart card |
| B. | Charge card |
| C. | Credit card |
| D. | None of these |
| Answer» B. Charge card | |
| 387. |
Central bank issued central card in the year........... |
| A. | 1981 |
| B. | 1985 |
| C. | 1991 |
| D. | 1982 |
| Answer» A. 1981 | |
| 388. |
.................. cards are issued by retailers or companies. |
| A. | Smart card |
| B. | Debit card |
| C. | Charge card |
| D. | In-store card |
| Answer» D. In-store card | |
| 389. |
Fourth-Round of venture capital financing is also called…………... |
| A. | Seed capital |
| B. | Mezzanine finance |
| C. | Bridge finance |
| D. | None of these |
| Answer» C. Bridge finance | |
| 390. |
Which of the ffollowing is / are the methods of venture financing? |
| A. | Equity |
| B. | Conditional loan |
| C. | Income note |
| D. | All of these |
| Answer» D. All of these | |
| 391. |
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 | |
| 392. |
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 | |
| 393. |
A combination of forwards by two counterparties with opposite but matching need is called:. |
| A. | Swap |
| B. | Option |
| C. | Forwa |
| Answer» A. Swap | |
| 394. |
The minimum size of venture capital fund is _______________. |
| A. | Rs. 10 crores |
| B. | Rs. 20 crores |
| C. | Rs. 25 crores |
| D. | Rs. 50 crores. |
| Answer» A. Rs. 10 crores | |
| 395. |
Indian Banks Association (IBA) has a common net working system for sharing the ATM facilities in Mumbai, which is known as _________. |
| A. | ATM Network |
| B. | Shared Payment Network System. |
| C. | Cash Network |
| D. | None of these. |
| Answer» D. None of these. | |
| 396. |
Arbitrage is _________. |
| A. | Buying and selling in two markets simultaneously |
| B. | A rate of interest |
| C. | A Fee. |
| D. | A dispute. |
| Answer» A. Buying and selling in two markets simultaneously | |
| 397. |
Exchange risk in case of foreign currency Non Resident (Banks) scheme (FCNR) Is borne by_________. |
| A. | RBI. |
| B. | Depositor. |
| C. | Govt. Of India |
| D. | Concerned Bank. |
| Answer» D. Concerned Bank. | |
| 398. |
Which of these is not a credit rating agency? |
| A. | Moody. |
| B. | Standard & Poors |
| C. | Price water house |
| D. | CRISIL |
| Answer» C. Price water house | |
| 399. |
Investment banks facilitate the sale of securities in the __________. |
| A. | Primary market. |
| B. | Secondary market |
| C. | Retail market. |
| D. | Wholesale market. |
| Answer» A. Primary market. | |
| 400. |
There are........ associated companies of GIC |
| A. | 3 |
| B. | 4 |
| C. | 6 |
| D. | 5 |
| Answer» B. 4 | |
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