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
| 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 | |
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