RD
3
SEMESTER
ASSIGNMENTS
FINANCE
SCDL
ASSIGNMENTS
CAPITAL MARKET -AMITA
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
Capital Market_2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Information technology, communication and entertainment represent ________
stocks.
Correct Answer ICE
Your Answer ICE
True/False
Question The public cannot give their complaints or comments on the issuer company or
others connected with the issue to SEBI.
Correct Answer False
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Your Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Your Answer 4 times
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Degree of popularity of the industry , Overall economic condition , Demand
and supply capital
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
Match The Following
-1 -
Capital Market_2
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high
standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely
decision regarding sale and purchase of securities
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment
and interest rate risk
Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and
interest rate risk
Multiple Choice Single Answer
Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans
Your Answer 60% of its outstanding housing loans
-2 -
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
What was the objective of setting up the Securities Trading
corporation of India Ltd?
Correct Answer To promote secondary market in government securities
Your Answer
To strengthen the capital markets
Multiple Choice Multiple Answer
Question
What are the salient features of Hire Purchase ?
Correct Answer Finance company purchases the equipment supplier and lets it
on hire , During the contract hirer can opt for an early repayment
and purchase the asset , Hirer may be required to make down
payment
Your Answer
During the contract hirer can opt for an early repayment and
purchase the asset , Hirer may be required to make down
payment , Finance company purchases the equipment supplier
and lets it on hire
True/False
Question
A mutual fund shall not invest more than 10% of is NAV in equity
shares in cases of open ended schemes.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer
Mutual funds
Multiple Choice Single Answer
Question
Who takes risk at the time of investment ?
Correct Answer Investor
Your Answer
Investor
True/False
Question
MIBOR is a security. Derivatives based on this interest rate have
legal recognition under SCRA.
Correct Answer False
Your Answer
True
Select The Blank
Question
It is the responsibility of the ________ to ensure the timely
refunds and allotments of the securities.
Correct Answer Lead managers
Your Answer
Lead managers
True/False
Question
A credit card is a payment mechanism which enables the holder
to buy goods and services on credit.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Looses the rights to vote
Non voting shares
Non voting shares
Book building
Bharati Televentures
Bharati Televentures
Depository
Bank of securities
Bank of securities
First to introduce rolling
NSE
settlements in the country
NSE
Select The Blank
Question
Final prospectus in the book building p________ess is to be filed
with the ROC.
Correct Answer ROC
Your Answer
ROC
Select The Blank
Question
A company with highly rated instrument has the opportunity to
________ by quoting less interest rates.
Correct Answer Reduce the cost of borrowing
Your Answer
True/False
Question
Reduce the cost of borrowing
Book building is a process whereby the price is determined on
the basis of actual demand as evident from the offers given by
the various institutional investors and underwriters.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
What are the norms for Approval of Housing finance companies
by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any
appointment of auditors
Your Answer
Minimum paid up capital 1 crore , At least 2 directors , At least
50% loans in long term nature
Multiple Choice Single Answer
Question
A portfolio manager could undertake the following on behalf of
his clients :Correct Answer Hedging and arbitrage transactions
Your Answer
Hedging and arbitrage transactions
Multiple Choice Multiple Answer
Question
How is price determined in an open offer?
Correct Answer Negotiated price , Price paid by acquirer , Average weekly high
low of closing share of the target company
Your Answer
Negotiated price , Price paid by acquirer , Average weekly high
low of closing share of the target company
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer
Experience , Sound General knowledge , Analytical ability and
marketing skills
Multiple Choice Single Answer
Question
Renewal of portfolio fund on maturity shall be deemed as a fresh
placement for a minimum period of :Correct Answer 1 year
Your Answer
2 years
True/False
Question
In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer
True
Select The Blank
Question
One of the process of book building is that the issuer appoints a
________ also known as the book runner.
Correct Answer Lead manager
Your Answer
Lead manager
Select The Blank
Question
The process of securitisation involves transfer of assets to a
person specially created called as ________.
Correct Answer Special purpose vehicle
Your Answer
Trust
True/False
Question
A custodian can transfer beneficial ownership legally.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Apart from the portfolio management fees what percentage of
returns can the portfolio manager share from their client's
profits?
Correct Answer 0
Your Answer
0
True/False
Question
The SEBI guidelines do not make it mandatory for the securities
purchased under the buy back arrangement to be extinguished
and physically destroyed.
Correct Answer False
Your Answer
False
Select The Blank
Question
BSE introduced an equity stock index known as ________.
Correct Answer SENSEX
Your Answer
SENSEX
Multiple Choice Multiple Answer
Question
As per the recommendations of the Kumarmangalam Birla
committee report who are the key components of an audit
committee.
Correct Answer Board , Internal auditor , External auditor
Your Answer
Board , Internal auditor , External auditor
Multiple Choice Multiple Answer
Question
Which companies have eroded market capitalization by Rs20
000 crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer
Infosys , Satyam , Wipro
Multiple Choice Multiple Answer
Question
What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material
information and should not be misleading. , The company must
pay the consideration only by the way of cash , The company
should not issue any fresh securities including bonus shares till
the date of the closure of the offer.
Your Answer
The offer letter should contain true, factual and material
information and should not be misleading. , The company must
pay the consideration only by the way of cash , The company
should not issue any fresh securities including bonus shares till
the date of the closure of the offer.
Multiple Choice Multiple Answer
Question
What are the different kinds of stock exchanges in India?
Correct Answer Voluntary non profit making organizations , Joint stock
companies limited by shares , Joint stock companies Limited by
guarantee
Your Answer
Voluntary non profit making organizations , Joint stock
companies limited by shares , Private limited companies
Multiple Choice Multiple Answer
Question
Companies are not allowed to buy back securities :Correct Answer Through any/ own subsidiary company , Through any/group of
investment company , If default subsists in respect of
repayments of deposits, term loans to any financial institutions
and redemption of preference shares or debentures
Your Answer
Through any/ own subsidiary company , Through any/group of
investment company , If default subsists in respect of
repayments of deposits, term loans to any financial institutions
and redemption of preference shares or debentures
True/False
Question
The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer
True
Select The Blank
Question
For issues upto Rs. 50 crores the number of lead managers will
not exceed ________.
Correct Answer 2
Your Answer
4
Match The Following
Question
Correct Answer
Your Answer
Ready forward transaction Interbank sale and
(Repo)
repurchase of securities
Operations in call money
markets
Commercial paper
Means of raising short
term debt by companies
Means of raising short term
debt by companies
STCI
Operations in call money
markets
Launched in fiscal 2004-05
Market stabilsation Bonds Launched in fiscal 200405
Interbank sale and
repurchase of securities
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their
trustees and asset management companies.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
What is the time frame to submit a report to SEBI for acquisition
transactions arising out of firm allotment in public issues right
issues etc?
Correct Answer 21 days
Your Answer
21 days
True/False
Question
The acquirer is required to appoint a merchant banker before
making a PA.
Correct Answer True
Your Answer
True
Select The Blank
Question
The right to buy is called ________.
Correct Answer Call option
Your Answer
Call option
Multiple Choice Single Answer
Question
Upto what percentage has the RBI permitted the banks to invest
in the capital market ?
Correct Answer 0.05
Your Answer
0.05
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital
markets?
Correct Answer Establishment of NSE
Your Answer
Opening of Indian Capital Markets to FII's
Multiple Choice Single Answer
Question
What is the eligibility norm for an unlisted company for making
an public issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer
Net worth of the company should not be less than 1 crore
Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were
debarred?
Correct Answer 1
Your Answer
3
Select The Blank
Question
Among the closed schemes, 4 long term assurance schemes
were launched with a return ranging between ________.
Correct Answer 13 - 14%
Your Answer
15 - 16%
Multiple Choice Multiple Answer
Question
What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations ,
Investment and interest rate risk
Your Answer
Investor characteristics , Liquidity needs and tax considerations ,
Investment and interest rate risk
Multiple Choice Single Answer
Question
What was the percentage of public offering under the IPOs
through the book building method ?
Correct Answer 0.1
Your Answer
0.25
Multiple Choice Multiple Answ er
Question
What are the main features of commercial paper?
Correct Answer Short term financial instrument , Negotiable and transferable
instrument , Companies issue it for raising short term debt
Your Answer
Short term financial instrument , Negotiable and transferable
instrument , Companies issue it for raising short term debt
Select The Blank
Question
A ________ can legally transfer beneficial ownership.
Correct Answer Depository
Your Answer
Depository
Multiple Choice Multiple Answer
Question
The setting up of NSE consists of:Correct Answer Set up by IDBI , Equity paid up capital of Rs25 crores , Started
operations in June 1994
Your Answer
Equity paid up capital of Rs25 crores , Started operations in
June 1994 , There is a trading floor in this exchange
Multiple Choice Single Answer
Question
Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer
Securities And Exchange Board of India
Multiple Choice Single Answer
Question
What was the objective of setting up the Securities Trading corporation of India Ltd?
Correct
Answer
Your Answer
To promote secondary market in government securities
To strengthen the capital markets
Multiple Choice Multiple Answer
Question
What are the salient features of Hire Purchase ?
Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
Finance company purchases the equipment supplier and lets it on hire , During the
contract hirer can opt for an early repayment and purchase the asset , Hirer may be
required to make down payment
During the contract hirer can opt for an early repayment and purchase the asset , Hirer
may be required to make down payment , Finance company purchases the equipment
supplier and lets it on hire
A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of open
ended schemes.
True
True
Select The Blank
Question
________ are a kind of portfolio schemes.
Correct
Answer
Your Answer
Mutual funds
Mutual funds
Multiple Choice Single Answer
Question
Who takes risk at the time of investment ?
Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
Investor
Investor
MIBOR is a security. Derivatives based on this interest rate have legal recognition under
SCRA.
False
True
Select The Blank
Question
It is the responsibility of the ________ to ensure the timely refunds and allotments of the
securities.
Correct
Lead managers
Answer
Your Answer
Lead managers
1
True/False
Question
Correct
Answer
Your Answer
A credit card is a payment mechanism which enables the holder to buy goods and
services on credit.
True
True
Match The Following
Question
Correct Answer
Your Answer
Looses the rights to vote
Non voting shares
Non voting shares
Book building
Bharati Televentures
Bharati Televentures
Depository
Bank of securities
Bank of securities
First to introduce rolling
settlements in the country
NSE
NSE
Select The Blank
Question
Final prospectus in the book building p________ess is to be filed with the ROC.
Correct
Answer
Your Answer
ROC
ROC
Select The Blank
Question
A company with highly rated instrument has the opportunity to ________ by quoting less
interest rates.
Correct
Reduce the cost of borrowing
Answer
Your Answer
Reduce the cost of borrowing
True/False
Question
Correct
Answer
Your Answer
Book building is a process whereby the price is determined on the basis of actual demand
as evident from the offers given by the various institutional investors and underwriters.
True
True
Multiple Choice Multiple Answer
Question
What are the norms for Approval of Housing finance companies by NHB?
Correct
Answer
Your Answer
Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
Minimum paid up capital 1 crore , At least 2 directors , At least 50% loans in long term
nature
Multiple Choice Single Answer
Question
A portfolio manager could undertake the following on behalf of his clients :-
2
Correct
Answer
Your Answer
Hedging and arbitrage transactions
Hedging and arbitrage transactions
Multiple Choice Multiple Answer
Question
How is price determined in an open offer?
Correct
Answer
Your Answer
Negotiated price , Price paid by acquirer , Average weekly high low of closing share of the
target company
Negotiated price , Price paid by acquirer , Average weekly high low of closing share of the
target company
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct
Answer
Your Answer
Sound General knowledge , Analytical ability and marketing skills , Experience
Experience , Sound General knowledge , Analytical ability and marketing skills
Multiple Choice Single Answer
Question
Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a
minimum period of :Correct
1 year
Answer
Your Answer
2 years
True/False
Question
Correct
Answer
Your Answer
In order to dematerialize the securities one has to fill DRF.
True
True
Select The Blank
Question
One of the process of book building is that the issuer appoints a ________ also known as
the book runner.
Correct
Lead manager
Answer
Your Answer
Lead manager
Select The Blank
Question
The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct
Special purpose vehicle
Answer
Your Answer
Trust
True/False
Question
Correct
Answer
A custodian can transfer beneficial ownership legally.
False
3
Your Answer
False
Multiple Choice Single Answer
Question
Apart from the portfolio management fees what percentage of returns can the portfolio
manager share from their client's profits?
Correct
0
Answer
Your Answer
0
True/False
Question
Correct
Answer
Your Answer
The SEBI guidelines do not make it mandatory for the securities purchased under the buy
back arrangement to be extinguished and physically destroyed.
False
False
Select The Blank
Question
BSE introduced an equity stock index known as ________.
Correct
Answer
Your Answer
SENSEX
SENSEX
Multiple Choice Multiple Answer
Question
As per the recommendations of the Kumarmangalam Birla committee report who are the
key components of an audit committee.
Correct
Board , Internal auditor , External auditor
Answer
Your Answer
Board , Internal auditor , External auditor
Multiple Choice Multiple Answer
Question
Which companies have eroded market capitalization by Rs20 000 crores?
Correct
Answer
Your Answer
Infosys , Satyam , Wipro
Infosys , Satyam , Wipro
Multiple Choice Multiple Answer
Question
What are the obligations of a company in a share buy back?
Correct
Answer
Your Answer
The offer letter should contain true, factual and material information and should not be
misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the
closure of the offer.
The offer letter should contain true, factual and material information and should not be
misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the
closure of the offer.
Multiple Choice Multiple Answer
Question
What are the different kinds of stock exchanges in India?
4
Correct
Answer
Your Answer
Voluntary non profit making organizations , Joint stock companies limited by shares ,
Joint stock companies Limited by guarantee
Voluntary non profit making organizations , Joint stock companies limited by shares ,
Private limited companies
Multiple Choice Multiple Answer
Question
Companies are not allowed to buy back securities :Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
Through any/ own subsidiary company , Through any/group of investment company , If
default subsists in respect of repayments of deposits, term loans to any financial
institutions and redemption of preference shares or debentures
Through any/ own subsidiary company , Through any/group of investment company , If
default subsists in respect of repayments of deposits, term loans to any financial
institutions and redemption of preference shares or debentures
The depository can legally transfer beneficial ownership.
True
True
Select The Blank
Question
For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct
Answer
Your Answer
2
4
Match The Following
Question
Correct Answer
Your Answer
Ready forward transaction (Repo) Interbank sale and repurchase of
securities
Operations in call money markets
Commercial paper
Means of raising short term debt
by companies
Means of raising short term debt
by companies
STCI
Operations in call money markets Launched in fiscal 2004-05
Market stabilsation Bonds
Launched in fiscal 2004-05
True/False
Question
Correct
Answer
Your Answer
Interbank sale and repurchase of
securities
SEBI cannot investigate the affairs of mutual funds and their trustees and asset
management companies.
False
False
Multiple Choice Single Answer
Question
What is the time frame to submit a report to SEBI for acquisition transactions arising out
of firm allotment in public issues right issues etc?
Correct
21 days
Answer
5
Your Answer
True/False
Question
Correct
Answer
Your Answer
21 days
The acquirer is required to appoint a merchant banker before making a PA.
True
True
Select The Blank
Question
The right to buy is called ________.
Correct
Answer
Your Answer
Call option
Call option
Multiple Choice Single Answer
Question
Upto what percentage has the RBI permitted the banks to invest in the capital market ?
Correct
Answer
Your Answer
0.05
0.05
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital markets?
Correct
Answer
Your Answer
Establishment of NSE
Opening of Indian Capital Markets to FII's
Multiple Choice Single Answer
Question
What is the eligibility norm for an unlisted company for making an public issue as regards
to its net worth?
Correct
Net worth of the company should not be less than 1 crore
Answer
Your Answer
Net worth of the company should not be less than 1 crore
Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct
Answer
Your Answer
1
3
Select The Blank
Question
Among the closed schemes, 4 long term assurance schemes were launched with a return
ranging between ________.
Correct
13 - 14%
Answer
Your Answer
15 - 16%
6
Multiple Choice Multiple Answer
Question
What are the major factors influencing portfolio decisions?
Correct
Answer
Your Answer
Investor characteristics , Liquidity needs and tax considerations , Investment and interest
rate risk
Investor characteristics , Liquidity needs and tax considerations , Investment and interest
rate risk
Multiple Choice Single Answer
Question
What was the percentage of public offering under the IPOs through the book building
method ?
Correct
0.1
Answer
Your Answer
0.25
Multiple Choice Multiple Answer
Question
What are the main features of commercial paper?
Correct
Answer
Your Answer
Short term financial instrument , Negotiable and transferable instrument , Companies
issue it for raising short term debt
Short term financial instrument , Negotiable and transferable instrument , Companies
issue it for raising short term debt
Select The Blank
Question
A ________ can legally transfer beneficial ownership.
Correct
Answer
Your Answer
Depository
Depository
Multiple Choice Multiple Answer
Question
Correct
Answer
Your Answer
The setting up of NSE consists of:Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations in June 1994
Equity paid up capital of Rs25 crores , Started operations in June 1994 , There is a
trading floor in this exchange
Multiple Choice Single Answer
Question
Which Act defines the term Stock Exchange?
Correct
Answer
Your Answer
Securities Contract Regulation Act
Securities And Exchange Board of India
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is an internationa l credit rating company.
Correct Answer FITSCH
Your Answer Crisil
True/False
Question The acquirer is required to appoint a merchant banker before making a PA.
7
Correct Answer True
Your Answer True
Select The Blank
Question Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
Your Answer Sales tax
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Single Answer
Question What is Discretionary Portfolio management service ?
Correct Answer Client gives his money for investment to the portfolio manager and leaves it to him to
make all the investment decisions.
Your Answer Client gives his money for investment to the portfolio manager and leaves it to him to
make all the investment decisions.
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid
from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Multiple Choice Multiple Answer
Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have
common financial goal , Issue units to investor which represent right in assets , Investments in mutual
funds may be in the form of stock, bond, money market securities
Your Answer A trust that pools in savings and funds from large number of investors who have common
financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may
be in the form of stock, bond, money market securities
True/False
Question If the credit rating is obtained from two different agencies in case of issue of debt
instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________.
Correct Answer Securities markets
8
Your Answer
Clients
Multiple Choice Multiple Answer
Question What qualities do the merchant bankers need to possess?
Correct Answer Knowledge and information about various aspects of capital markets , Ability to
evaluate and analyze , Update the knowledge
Your Answer Knowledge and information about various aspects of capital markets , Ability to evaluate
and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other who wishes to borrow
securities at market related rates , Lender is assured of getting equivalent the relevant securities by
NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee
Your Answer Involves two parties one who is willing to lend and other who wishes to borrow securities
at market related rates , Lender gets benefit of reasonable return called lending fee
Multiple Choice Multiple Answer
Question What are the limitations of refinance facility?
Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to
exceed 15 % of NOF of NHB
Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's , Not to
exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question The process of share buy back must be completed within what period from the date of passing
the resolution?
Correct Answer 12 months
Your Answer 12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign currency deal
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the age of the person borrowing
True/False
Question SEBI cannot investigate the affairs of mutual funds and their trus tees and asset management
companies.
Correct Answer False
Your Answer False
Select The Blank
9
Question In the L & T reliance case, Reliance was fined ________.
Correct Answer Rs. 5 lacs
Your Answer Rs. 5 lacs
Select The Blank
Question Recently many banks have started issuing ________ which could also be used as a debit card.
Correct Answer ATM card
Your Answer ATM card
Select The Blank
Question A ________ means any persons connected with a compan y and who is reasonably having
access to unpublished price sensitive information.
Correct Answer Insider
Your Answer Insider
Select The Blank
Question SENSEX is calculated using ________ method.
Correct Answer Market capitalization
Your Answer Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning surplus cash to the
shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is done by the
shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer True
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
10
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the system of rolling settlement prevalent in the USA ?
Correct Answer Transaction + 3
Your Answer Transaction + 3
Multiple Choice Single Answer
Question What is the most important objective for an investor?
Correct Answer Protection of the value of the investment
Your Answer Profit maximization
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer All the NBFC's must register with RBI , Without the registration certificate no company
can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits
Your Answer All the NBFC's must register with RBI , Without the registration certificate no company can
undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits
Multiple Choice Single Answer
Question What do you mean by venture capital?
Correct Answer Providing seed, start up capital and first stage financing
Your Answer Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Opening of Indian Capital Markets to FII's
Select The Blank
Question The continuing growth in ________ was one of the factors that contributed to the growth of
credit rating.
Correct Answer Information technology
Your Answer Information technology
Select The Blank
Question In case of a public issue by a listed company participation by promoters in the proposed
issues in excess of the required minimum percentage shall also be looked in for a period of ________.
Correct Answer 1 year
Your Answer 3 years
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net ,
Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the ne t ,
Operate in stock market privately through home or office
Select The Blank
Question The Kumarmangalam Birla report stressed on the importance of ________ with respect to
AGM's.
Correct Answer Proxy voting / ballot systems
Your Answer Proxy voting / ballot systems
11
True/False
Question The SEBI guidelines do not make it mandatory for the securities purchased under the buy
back arrangement to be extinguished and physically destroyed.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture
redemption reserve to be created
Your Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture
redemption reserve to be created
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment
strategy
Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose investment
strategy
Multiple Choice Single Answer
Question What is the minimum number of days for which the bid should remain open in book building?
Correct Answer 5 days
Your Answer 7 days
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net owned
funds?
Correct Answer 4 times
Your Answer 4 times
Select The Blank
Question With the introduction of ________ accounts the complaints about allotment have surely gone
down.
Correct Answer DEMAT
Your Answer DEMAT
12
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question The buy back of shares by Indian corporates has been very successful in India.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
Your Answer 0.76
Select The Blank
Question When one decides to have the shares in an electronic form one has to approach ________.
Correct Answer DP
Your Answer SEBI
True/False
Question The issue price for placement portion and net offer to public are not the same.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity of the
industry
Your Answer Overall economic condition , Degree of popularity of the industry , High profitability is
one of the criteria
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the repayment capacity
True/False
Question Mutual funds can do investments in any security issued by way of private placement by an
associate or group company of the sponsor.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are participatory notes?
Correct Answer Instruments used by foreign funds , Instruments used but investors not register with
SEBI , Investors interested in taking exposure in Indian securities
Your Answer Instruments used but investors not register with SEBI , Investors interested in taking
exposure in Indian securities
True/False
Question Employee stock option scheme granted to the employee is transferable.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Briefly describe the SEBI guidelines for the merchant bankers :Correct Answer Should have an authorization from SEBI , Expertise good financial standing and high
degree of professional integrity , Company abides by the various requirements relating to disclosers, listing
of instruments etc
Your Answer Should have an authorization from SEBI , Expertise good financial standing and high
degree of professional integrity , Company abides by the various requirements relating to disclosers, listing
of instruments etc
Select The Blank
Question In 2001 a case of rigging and short selling based insider trading was noticed in the case of
proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer UTI Bank with GTB
True/False
Question The lease agreement provides for a transfer of ownership to the lessee either at the end of the
period or during the period of lease.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are the eligibility norms for a listed company for making a public issue?
Correct Answer If the issue size is less than five times pre issue net worth , If the issue size is more than
or equal to five times pre issue networth then the listed company to take book building route , 60% of issue
size to be allotted to QIB's
Your Answer If the issue size is less than five times pre issue net worth , If the issue size is more than or
equal to five times pre issue networth then the listed company to take book building route , 60% of issue
size to be allotted to QIB's
Multiple Choice Multiple Answer
Question Where is the difference in buying and selling dematerialized shares ?
Correct Answer Process of delivery , Receipt of securities , Pledging the shares
Your Answer Process of delivery , Receipt of securities , Pledging the shares , Sale of shares
Multiple Choice Multiple Answer
Question When is the public announcement required to be made?
Correct Answer In case of indirect acquisition or change in control, the PA shall be made by acquirer
within 3 months of conummation of such acquisition , The offer prices in such case shall be determined
with reference to date of public announcement
Your Answer The offer prices in such case shall be determined with reference to date of public
announcement , PA shall be made by the target company , In case of indirect acquisition or change in
control, the PA shall be made by acquirer within 3 months of conummation of such acquisition
Multiple Choice Multiple Answer
Question What are the main features of commercial paper?
Correct Answer Short term financial instrument , Negotiable and transferable instrument , Companies
issue it for raising short term debt
Your Answer Short term financial instrument , Negotiable and transferable instrument , Companies issue
it for raising short term debt
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$18 bn
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Siphoning of excess cash by the
promoters
Dutch Auction Price of the Buy back is done by the shareholders No minimum price stipulation
Open market purchases No minimum price stipulation Returning surplus cash to the shareholders
Companies holding more than 90% equity Can be delisted Have to consider buy back
Multiple Choice Multiple Answer
Question The following are some of the procedures of converting physical holding into electronic form :Correct Answer Surrender certificates to DP , DP intimates request to depositary , DP submits the
certificates to registrar
Your Answer DP intimates request to depositary , DP submits the certificates to registrar , The pledgee
has to confirm the request through his her DP
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to be paid
from the primary market during this year?
Correct Answer 15000 crores
Your Answer 25000 crores
Multiple Choice Multiple Answer
Question The setting up of NSE consists of:Correct Answer Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations in June 1994
Your Answer Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations in June 1994
Multiple Choice Single Answer
Question What is issued by mutual funds?
Correct Answer Units
Your Answer Units
Select The Blank
Question AA rated companies can raise ________ of its net worth.
Correct Answer 2.5 times
Your Answer 1.5 times
True/False
Question Constant change would be one of the reasons for failure of corporate governance.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Upto what percentage has the RBI permitted the banks to invest in the capital market ?
Correct Answer 0.05
Your Answer 0.05
Multiple Choice Single Answer
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Your Answer 5 lacs
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Select The Blank
Question Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
Your Answer Mutual Funds Trading
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board , Government regulations
Select The Blank
Question The service charge is levied for allowing subscribers for entry into or exit from mutual schemes
is called as ________.
Correct Answer Load
Your Answer AMC
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and should not be
misleading. , The company must pay the consideration only by the way of cash , The company should not
issue any fresh securities including bonus shares till the date of the closure of the offer.
Your Answer The offer letter should contain true, factual and material information and should not be
misleading. , The company must pay the consideration only by the way of cash
Multiple Choice Single Answer
Question How much percentage of company's revenue would be accounted for by the business with new
name?
Correct Answer 0.5
Your Answer 0.3
Select The Blank
Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the
securities.
Correct Answer Lead managers
Your Answer Lead managers
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________.
Correct Answer Securities markets
Your Answer Securities markets
Multiple Choice Single Answer
Question Crisil's AAA rating stands for :Correct Answer Highest safety
Your Answer Highest safety
True/False
Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if
there is an underlying asset.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the main advantage of a rolling settlement?
Correct Answer Quicker payments
Your Answer Quicker payments
Multiple Choice Single Answer
Question What is the minimum offer an acquirer can make ?
Correct Answer Min 20%
Your Answer Min 15 %
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should be more than 5 crores
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks To make timely decision regarding sale
and purchase of securities
Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high standard
of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms Portfolio Manager must fulfill
the capital adequacy norms
Multiple Choice Single Answer
Question Who suffered heavy losses during bad times of stock markets?
Correct Answer Small investors
Your Answer Small investors
True/False
Question The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Information technology, communication and entertainment represent ________
stocks.
Correct Answer ICE
Your Answer ICE
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer True
Select The Blank
Question The right to buy is called ________.
Correct Answer Call option
Your Answer Call option
Multiple Choice Single Answer
Question What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
Your Answer 0.74
Multiple Choice Single Answer
Question Who is responsible to get the securities listed on all the stock exchanges?
Correct Answer Merchant banker
Your Answer SEBI
Select The Blank
Question A mutual fund scheme shall not invest more than ________ of its NAV in unrated
debt by a single issuer.
Correct Answer 0.1
Your Answer 0.1
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
True/False
Question The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 38200
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer Must disclose investment strategy , VCF's must be registered , Cannot carry
out another activity
Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question When can the American style option exercised?
Correct Answer On or before the expiry date
Your Answer On or before the expiry date
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What is the estimated figure of credit card defaults in India?
Correct Answer 800 crores
Your Answer 800 crores
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer False
Select The Blank
Question AA rated companies can raise ________ of its net worth.
Correct Answer 2.5 times
Your Answer 2 times
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the
net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the net ,
Operate in stock market privately through home or office
Multiple Choice Multiple Answer
Question What are the eligibility norms for an unlisted company for making a public issue?
Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of
distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net
worth
Your Answer Issue size shall not exceed five times of its pre issue net worth , Pre issue net
worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3
years
Select The Blank
Question Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
Your Answer Derivatives Trading
Multiple Choice Multiple Answer
Question During the budget 2003 - 04, Finance Minister made some announcements which he
hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year ,
Removal of income tax on dividends in the hands of receiver
Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year ,
Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend
reduced to 12.5%
Multiple Choice Single Answer
Question How many members are appointed by the central government?
Correct Answer 2
Your Answer 2
Multiple Choice Multiple Answer
Question Which acts were amended to remove some of the hurdles to corporatisation and
demutualisation of stock exchanges?
Correct Answer SCRA , Depository Act
Your Answer SCRA , Depository Act
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate
in general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and
debenture holders Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision,
mission and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process
Decision making
Multiple Choice Multiple Answer
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer Infosys , Satyam , Wipro
Multiple Choice Multiple Answer
Question What does SEBI do with its power ?
Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or
beneficiary owners , Investigate an acquirer
Your Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or
beneficiary owners , Investigate an acquirer
True/False
Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and
options if there is an underlying asset.
Correct Answer True
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Your Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Your Answer 4 times
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity
of the industry
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high
standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely
decision regarding sale and purchase of securities
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment
and interest rate risk
Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and
interest rate risk
Multiple Choice Single Answer
Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans
Your Answer 60% of its outstanding housing loans
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
Question What is dematerialization ?
Correct Answer Physical certificates converted into electronic from , Credited into investors
account with his/ her DP
Your Answer Physical certificates converted into electronic from , Credited into investors
account with his/ her DP , Selling shares
Select The Blank
Question ________ is in the form of a usance promissory note payable after 45 days from the
date of issue.
Correct Answer Certificate of Deposit
Your Answer Certificate of Deposit
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question What is the amount of net worth accompany should have for opting for an IPO ?
Correct Answer 1 Crore
Your Answer 1 Crore
Select The Blank
Question The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Your Answer Special purpose vehicle
True/False
Question A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of
open ended schemes.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question What is a put option?
Correct Answer Right to sell
Your Answer Right to sell
True/False
Question Venture capital finance is risk finance for entrepreneurial growth oriented companies.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Who can change the composition of securities?
Correct Answer Fund manager
Your Answer Fund manager
True/False
Question Employee stock option scheme granted to the employee is transferable.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
Your Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
True/False
Question Transactions that involve substantial payment towards goodwill, brand equity or
intellectual property must be placed before the board of directors as per the recommendations of
the Kumarmangalam Birla report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Deposits can be accepted for a maximum period of :Correct Answer 5 years
Your Answer 10 years
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 37775
Multiple Choice Single Answer
Question In the wake of boom of which sector the Indian mutual fund launched various sector
specific schemes?
Correct Answer Software
Your Answer Software
Select The Blank
Question In 2001 a case of rigging and short selling based insider trading was noticed in the
case of proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer OBC with GTB
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Multiple Choice Single Answer
Question What is equipment leasing ?
Correct Answer Contractual agreement where the lessor of equipment transfers the right to use
the equipment to the lessee
Your Answer Contractual agreement where the lessor of equipment transfers the right to use
the equipment to the lessee
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity
of the industry
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
True/False
Question Mergers and amalgamations of companies are also covered under the SEBI
regulations 1997.
Correct Answer False
Your Answer False
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
True/False
Question Constant change would be one of the reasons for failure of corporate governance.
Correct Answer True
Your Answer False
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
True/False
Question The company opting for an IPO should have net worth of at least Rs 1 crore in each
of the preceding two years.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository ,
Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on
exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository ,
Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on
exchanges
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Match The Following
Question Correct Answer Your Answer
Castrol FY 2003 - 03 Dividend Rs145 crores FY 2003 - 03 Dividend Rs145 crores
MS Verma committee Dual Flotation Dual Flotation
Hero Honda FY 2003 - 03 Dividend Rs187 crores FY 2003 - 03 Dividend Rs187 crores
VSNL FY 2003 - 03 Dividend Rs172 crores FY 2003 - 03 Dividend Rs172 crores
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Multiple Answer
Question What is dematerialization ?
Correct Answer Credited into investors account with his/ her DP , Physical certificates
converted into electronic from
Your Answer Physical certificates converted into electronic from , Credited into investors
account with his/ her DP
Select The Blank
Question No mutual fund under all its schemes should own more than ________ of any
company's paid up capital carrying voting rights.
Correct Answer 0.1
Your Answer 0.3
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the
net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the net ,
Operate in stock market privately through home or office
Multiple Choice Single Answer
Question If the unlisted company does not satisfy the criteria of net worth profitability and issue
size how can it come out with a public issue?
Correct Answer Through book building process
Your Answer Through book building process
Multiple Choice Single Answer
Question Which is the favorite destination for venture funds?
Correct Answer BPO
Your Answer BPO
Multiple Choice Multiple Answer
Question Who issues participatory notes?
Correct Answer Associates of India based foreign brokerages , Domestic institutional
brokerages
Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages
Multiple Choice Single Answer
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Your Answer 5 lacs
Match The Following
Question Correct Answer Your Answer
Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and
repurchase of securities
Commercial paper Means of raising short term debt by companies Means of raising short term
debt by companies
STCI Operations in call money markets Operations in call money markets
Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Multiple Choice Single Answer
Question What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Your Answer 0.25
True/False
Question Acquisition finance, which provide funding for acquiring another company are often
closely held or fairly owned.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to
be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Select The Blank
Question The acquirer is required to make the PA within ________ working days of entering
into an agreement to acquire shares or deciding to acquire share's voting rights of target
company.
Correct Answer 4
Your Answer 4
Multiple Choice Single Answer
Question What is the objective of public announcement?
Correct Answer Ensure that the shareholders of the target company are aware of the exit
opportunity available to them
Your Answer Ensure that the shareholders of the target company are aware of the exit
opportunity available to them
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
True/False
Question If the credit rating is obtained from two different agencies in case of issue of debt
instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Select The Blank
Question When one decides to have the shares in an electronic form one has to approach
________.
Correct Answer DP
Your Answer DP
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Who can change the composition of securities?
Correct Answer Fund manager
Your Answer Fund manager
True/False
Question Employee stock option scheme granted to the employee is transferable.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer Without the registration certificate no company can undertake activities of
NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must
register with RBI
Your Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
True/False
Question Transactions that involve substantial payment towards goodwill, brand equity or
intellectual property must be placed before the board of directors as per the recommendations of
the Kumarmangalam Birla report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Deposits can be accepted for a maximum period of :Correct Answer 5 years
Your Answer 10 years
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 37775
Multiple Choice Single Answer
Question In the wake of boom of which sector the Indian mutual fund launched various sector
specific schemes?
Correct Answer Software
Your Answer Software
Select The Blank
Question In 2001 a case of rigging and short selling based insider trading was noticed in the
case of proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer OBC with GTB
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Multiple Choice Single Answer
Question What is equipment leasing ?
Correct Answer Contractual agreement where the lessor of equipment transfers the right to use
the equipment to the lessee
Your Answer Contractual agreement where the lessor of equipment transfers the right to use
the equipment to the lessee
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity
of the industry
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
True/False
Question Mergers and amalgamations of companies are also covered under the SEBI
regulations 1997.
Correct Answer False
Your Answer False
Select The Blank
Question No mutual fund under all its schemes should own more than ________ of any
company's paid up capital carrying voting rights.
Correct Answer 0.1
Your Answer 0.3
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the
net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the net ,
Operate in stock market privately through home or office
Multiple Choice Single Answer
Question If the unlisted company does not satisfy the criteria of net worth profitability and issue
size how can it come out with a public issue?
Correct Answer Through book building process
Your Answer Through book building process
Multiple Choice Single Answer
Question Which is the favorite destination for venture funds?
Correct Answer BPO
Your Answer BPO
Multiple Choice Multiple Answer
Question Who issues participatory notes?
Correct Answer Associates of India based foreign brokerages , Domestic institutional
brokerages
Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages
Multiple Choice Single Answer
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Your Answer 5 lacs
Match The Following
Question Correct Answer Your Answer
Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and
repurchase of securities
Commercial paper Means of raising short term debt by companies Means of raising short term
debt by companies
STCI Operations in call money markets Operations in call money markets
Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Multiple Choice Single Answer
Question What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Your Answer 0.25
True/False
Question Acquisition finance, which provide funding for acquiring another company are often
closely held or fairly owned.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to
be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Select The Blank
Question The acquirer is required to make the PA within ________ working days of entering
into an agreement to acquire shares or deciding to acquire share's voting rights of target
company.
Correct Answer 4
Your Answer 4
Multiple Choice Single Answer
Question What is the objective of public announcement?
Correct Answer Ensure that the shareholders of the target company are aware of the exit
opportunity available to them
Your Answer Ensure that the shareholders of the target company are aware of the exit
opportunity available to them
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
True/False
Question If the credit rating is obtained from two different agencies in case of issue of debt
instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Select The Blank
Question When one decides to have the shares in an electronic form one has to approach
________.
Correct Answer DP
Your Answer DP
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
The NSE Nifty index comprises of ________companies.
Correct Answer
50
Your Answer
50
Match The Following
Question Correct Answer Your Answer
0.1 Government decided to pay dividend Government decided to pay dividend
0.15 MF cannot invest as percentage of NAV in debt instrument issued by single
issuer MF cannot invest as percentage of NAV in debt instrument issued by single
issuer
Annual statement of accounts of MF To be audited by auditor To be audited by
auditor
Rs. 8000 crores Current shortfall in UTI schemes Current shortfall in UTI
schemes
Select The Blank
Question
Hire Purchase transactions are liable to ________.
Correct Answer
Sales tax
Your Answer
Sales tax
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital
markets?
Correct Answer
Establishment of NSE
Your Answer
Establishment of NSE
Multiple Choice Multiple Answer
Question
What are the major factors influencing portfolio decisions?
Correct Answer
Investor characteristics , Liquidity needs and tax
considerations , Investment and interest rate risk
Your Answer
Investor characteristics , Liquidity needs and tax
considerations , Investment and interest rate risk
Select The Blank
Question
The portfolio manager has to place the funds of all their clients
in a separate account to be maintained by them with ________.
Correct Answer
Scheduled Commercial Bank
Your Answer
Scheduled Commercial Bank
True/False
Question
ISIN is a unique identification number for security.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
What do you understand by capital markets ?
Correct Answer
Market for long term funds and investments in long term
instruments
Your Answer
instruments
Market for long term funds and investments in long te rm
Multiple Choice Single Answer
Question
As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer
15000 crores
Your Answer
15000 crores
Multiple Choice Single Answer
Question
What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer
US$14 bn
Your Answer
US$14 bn
Multiple Choice Multiple Answer
Question
The features of mutual Fund are :Correct Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
Your Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
Multiple Choice Multiple Answer
Question
Companies are not allowed to buy back securities : Correct Answer
Through any/ own subsidiary company , Through any/group of
investment company , If default subsists in respect of repayments of deposits,
term loans to any financial institutions and redemption of preference shares or
debentures
Your Answer
Through any/ own subsidiary company , Through any/group of
investment company , If default subsists in respect of repayments of deposits,
term loans to any financial institutions and redemption of preference shares or
debentures
Multiple Choice Multiple Answer
Question
Briefly describe the SEBI guidelines for the merch ant bankers :Correct Answer
Should have an authorization from SEBI , Expertise good
financial standing and high degree of professional integrity , Company abides by
the various requirements relating to disclosers, listing of instruments etc
Your Answer
Should have an authorization from SEBI , Expertise good
financial standing and high degree of professional integrity , Company abides by
the various requirements relating to disclosers, listing of instruments etc
Multiple Choice Single Answer
Question
What is issued by mutual funds?
Correct Answer
Units
Your Answer
Units
Multiple Choice Multiple Answer
Question
During the budget 2003 - 04, Finance Minister made some
announcements which he hopes will make investors think in terms of returning to
stock market :-
Correct Answer
No capital gains tax on investment made in equity after
1/3/03 held for 1 year , Removal of income tax on dividends in the hands of
receiver
Your Answer
Removal of income tax on dividends in the hands of receiver ,
Investors income tax on dividend reduced to 12.5% , No capital gains tax on
investment made in equity after 1/3/03 held for 1 year
Select The Blank
Question
The merchant bankers should act as ________ of the investor's money
and put a lot of responsibility on them.
Correct Answer
Custodian
Your Answer
Custodian
True/False
Question
Reliance group has added over 10000 crores in market capital.
Correct Answer
True
Your Answer
True
Select The Blank
Question
BSE introduced an equity stock index known as ________.
Correct Answer
SENSEX
Your Answer
SENSEX
Multiple Choice Single Answer
Question
Which company was responsible for spr eading the equity culture in
India ?
Correct Answer
Reliance Industries
Your Answer
Reliance Industries
Multiple Choice Multiple Answer
Question
Which companies have eroded market capitalization by Rs20 000
crores?
Correct Answer
Infosys , Satyam , Wipro
Your Answer
Infosys , Satyam , Wipro
Multiple Choice Single Answer
Question
Since when have the Indian Stock markets risen ?
Correct Answer
37775
Your Answer
37834
Multiple Choice Single Answer
Question
What is the time frame to submit a report to SEBI for acquisition
transactions arising out of firm allotment in public issues right issues etc?
Correct Answer
21 days
Your Answer
21 days
Select The Blank
Question
The portfolio manager has to place the funds of all their clients
in a separate account to be maintained by them with ________.
Correct Answer
Scheduled Commercial Bank
Your Answer
Scheduled Commercial Bank
Multiple Choice Single Answer
Question
What is government's move towards Stock Exchanges ?
Correct Answer
Demutulisation
Your Answer
Dematerialization
Multiple Choice Multiple Answer
Question
As per the recommendations of the Kumarmangalam Birla committee
report who are the key components of an audit committee.
Correct Answer
External auditor , Board , Internal auditor
Your Answer
Board , Internal auditor , External auditor
True/False
Question
SEBI can investigate and inspect books of accounts and records of
insiders.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Multiple Choice Single Answer
Question
What is the objective of a credit information comp any?
Correct Answer
To ascertain the credit worthiness of
individuals/organizations and make the data available to all banks
Your Answer
To ascertain the credit worthiness of individuals/organizations
and make the data available to all banks
True/False
Question
Transactions that involve substantial payment towards goodwill,
brand equity or intellectual property must be placed before the board of
directors as per the recommendations of the Kumarmangalam Birla report.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
What is the amount of net worth accompany should have for opting
for an IPO ?
Correct Answer
1 Crore
Your Answer
1 Crore
True/False
Question
A credit card is a payment mechanism which enables the holder to
buy goods and services on credit.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
When are VCF's entitled to get its units listed on stock exchange?
Correct Answer
After expiration of 3 years form date of issuance of units
Your Answer
After expiration of 3 years form date of issuance of units
True/False
Question
Book building is a process whereby the price is determi ned on the
basis of actual demand as evident from the offers given by the various
institutional investors and underwriters.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
A portfolio manager could undertake the following on behalf of his
clients :Correct Answer
Hedging and arbitrage transactions
Your Answer
Hedging and arbitrage transactions
Multiple Choice Multiple Answer
Question
What are the SEBI guidelines for issue of de bt instruments?
Correct Answer
Credit rating , Maturity more than 18 months appoint
debenture trustee , Debenture redemption reserve to be created
Your Answer
Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Select The Blank
Question
________ are a kind of portfolio schemes.
Correct Answer
Mutual funds
Your Answer
Mutual funds
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and
Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and
fairness Observe high standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms
Portfolio Manager must fulfill the capital adequacy norms
Multiple Choice Multiple Answer
Question
What information is required to be furnished to stock exchanges in
compliance of SEBI regulations 1997 ?
Correct Answer
Details of proposed acquisition need to be filed with Stock
exchanges at least 4 days before the date , Any person holding more than 15% but
less than 75% voting rights shall be disclosed with 2 days , Annual disclosures
Your Answer
Details of proposed acquisition need to be filed with Stock
exchanges at least 4 days before the date , Any person holding more than 15% but
less than 75% voting rights shall be disclosed with 2 days , Annual disclosures
Multiple Choice Multiple Answer
Question
What are the requirements regarding promoter's contribution and
lock in?
Correct Answer
In case of IPO, promoters have to necessarily offer at least
20% of the post issue capital , In case of listed company promoters shall
participate either to extent of 20% of proposed or post issue , In case of any
issue of capital the minimum contribution shall be locked in for a period of 3
years
Your Answer
In case of IPO, promoters have to necessarily offer at least 20%
of the post issue capital , In case of listed company promoters shall
participate either to extent of 20% of proposed or post issue , In case of any
issue of capital the minimum contribution shall be locked in for a period of 3
years
True/False
Question
Constant change would be one of the reasons for failure of
corporate governance.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Final prospec tus in the book building p________ess is to be filed
with the ROC.
Correct Answer
ROC
Your Answer
ROC
Multiple Choice Single Answer
Question
Who forms the Asset management company (AMC)?
Correct Answer
Group of trustees
Your Answer
Group of trustees
True/False
Question
Employee stock option scheme granted to the employee is
transferable.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
How many companies are there to do business of credit rating?
Correct Answer
4
Your Answer
4
Multiple Choice Multiple Answer
Question
What are the general obligations of mutual fund ?
Correct Answer
Every AMC should maintain proper books of accounts ,
Financial year for all schemes to end as on March 31 each year , Every mutual
fund shall have the annual statements audited by auditor
Your Answer
Every AMC should maintain proper books of accounts , Financial
year for all schemes to end as on March 31 each year , Every mutual fund shall
have the annual statements audited by auditor
Select The Blank
Question
Recently, SEBI has allowed buy back of shares upto ________% of the
total shares without requirement of a special resolution
Correct Answer
10
Your Answer
10
Select The Blank
Question
Directors should not be member of more than________ committees.
Correct Answer
10
Your Answer
10
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
________ is an international credit rating company.
Correct Answer
FITSCH
Your Answer
Crisil
True/False
Question
The acquirer is required to appoint a merchant banker before making
a PA.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Hire Purchase transactions are liable to ________.
Correct Answer
Sales tax
Your Answer
Sales tax
Multiple Choice Single Answer
Question
What do you understand by capital markets ?
Correct Answer
Market for long term funds and investments in long term
instruments
Your Answer
Market for long term funds and investments in long term
instruments
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Multiple Choice Single Answer
Question
What is Discretionary Portfolio management service ?
Correct Answer
Client gives his money for investment to the portfolio
manager and leaves it to him to make all the investment decisions.
Your Answer
Client gives his money for investment to the portfolio manager
and leaves it to him to make all the investment decisions.
True/False
Question
Depositary facilitates transfers without having to handle money.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer
US$14 bn
Your Answer
US$14 bn
Multiple Choice Single Answer
Question
As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer
15000 crores
Your Answer
15000 crores
Multiple Choice Multiple Answer
Question
The features of mutual Fund are :Correct Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
Your Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
True/False
Question
If the credit rating is obtained from two different agencies in
case of issue of debt instruments, all the ratings need not be disclosed in the
document.
Correct Answer
False
Your Answer
True
Select The Blank
Question
As per SEBI regulations, PMS must not be involved in any litigation
connected with ________.
Correct Answ er
Securities markets
Your Answer
Clients
Multiple Choice Multiple Answer
Question
What qualities do the merchant bankers need to possess?
Correct Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Your Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question
Describ e the stock lending mechanism:Correct Answer
Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender is assured of
getting equivalent the relevant securities by NSSCL on the settlement date ,
Lender gets benefit of reasonable return called lending fee
Your Answer
Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender gets benefit of
reasonable return called lending fee
Multiple Choice Multiple Answer
Question
What are the limitations of refinance facility?
Correct Answer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Your A nswer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question
The process of share buy back must be completed within what period
from the date of passing the resolution?
Correct Answer
12 months
Your Answer
12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific
Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign
currency deal
Multiple Choice Single Answer
Question
When did the trading in foreign currency options start in India?
Correct Answer
37809
Your Answer
37829
Multiple Choice Single Answer
Question
What is the main objective of credit appraisal ?
Correct Answer
Assess the repayment capacity
Your Answer
Assess the age of the person borrowing
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their
trustees and asset management companies.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In the L & T reliance case, Reliance was fined ________.
Correct Answer
Rs. 5 lacs
Your Answer
Rs. 5 lacs
Select The Blank
Question
Recently many banks have started issuing ________ which could also
be used as a debit card.
Correct Answer
ATM card
Your Answer
ATM card
Select The Blank
Question
A ________ means any persons connected with a company and who is
reasonably having access to unpublished price sensitive information.
Correct Answer
Insider
Your Answer
Insider
Select The Blank
Question
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning
surplus cash to the shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy
back is done by the shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question
The public cannot give their complaints or comments on the issuer
company or others connected with the issue to SEBI.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer
1
Your Answer
1
True/False
Question
A portfolio manager need not necessarily sell or purchase
securities separately for each client.
Correct Answer
False
Your Answer
True
True/False
Question
RBI has permitted all commercial banks, financial institutions and
large corporates to issue certificate of deposits.
Correct Answer
False
Your Answer
True
True/False
Question
Book building is a process whereby the price is determined on the
basis of actual demand as evident from the offers given by the various
institutional investors and underwriters.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
What is the system of rolling settlement prevalent in the USA ?
Correct Answer
Transaction + 3
Your Answer
Transaction + 3
Multiple Choice Single Answer
Question
What is the most important objective for an investor?
Correct Answer
Protection of the value of the investment
Your Answer
Profit maximization
Multiple Choice Multiple Answer
Question
The following are some of the regulations governing the NBFC's
issued by RBI :Correct Answer
All the NBFC's must register with RBI , Without the
registration certificate no company can undertake activities of NBFC , All
companies must be liquid assets equal to 15% of deposits
Your Answer
All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be
liquid assets equal to 15% of deposits
Multiple Choice Single Answer
Question
What do you mean by venture capital?
Correct Answer
Providing seed, start up capital and first stage financing
Your Answer
Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital
markets?
Correct Answer
Establishment of NSE
Your Answer
Opening of Indian Capital Markets to FII's
Select The Blank
Question
The continuing growth in ________ was one of the factors that
contributed to the growth of credit rating.
Correct Answer
Informa tion technology
Your Answer
Information technology
Select The Blank
Question
In case of a public issue by a listed company participation by
promoters in the proposed issues in excess of the required minimum percentage
shall also be looked in for a period of ________.
Correct Answer
1 year
Your Answer
3 years
True/False
Question
A portfolio manager has to assure a guaranteed return to his
client.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
Describe E-trading :Correct Answer
Screen based trading
Communication through the net , Operate
or office
Your Answer
Screen based trading in
Communication through the net , Operate
or office
in place of traditional ring ,
in stock market privately through home
place of traditional ring ,
in stock market privately through home
Select The Blank
Question
The Kumarmangalam Birla report stressed on the importance of
________ with respect to AGM's.
Correct Answer
Proxy voting / ballot systems
Your Answer
Proxy voting / ballot systems
True/False
Question
The SEBI guidelines do not make it mandatory for the securities
purchased under the buy back arrangement to be extinguished and physically
destroyed.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
What are the SEBI guidelines for issue of debt instruments?
Correct Answer
Credit rating , Maturity more than 18 months appoint
debenture trustee , Debenture redemption reserve to be created
Your Answer
Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Multiple Choice Single Answer
Question
Which company was responsible for spreading the equity culture in
India ?
Correct Answer
Reliance Industries
Your Answer
Reliance Industries
Multiple Choice Multiple Answer
Question
Describe in brief the SEBI regulations for venture capital funds :Correct Answer
VCF's must be registered , Cannot carry out another activity
, Must disclose investment strategy
Your Answer
VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
Multiple Choice Single Answer
Question
What is the minimum number of days for which the bid should remain
open in book building?
Correct Answer
5 days
Your Answer
7 days
Multiple Choice Single Answer
Question
As per RBI regulation, bank borrowings should not exceed how many
times of the net owned funds?
Correct Answer
4 times
Your Answer
4 times
Select The Blank
Question
With the introduction of ________ accounts the complaints abo ut
allotment have surely gone down.
Correct Answer
DEMAT
Your Answer
DEMAT
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
A portfolio manager has to assure a guaranteed return to his
client.
Correct Answer False
Your Answer
True
True/False
Question
A mutual fund shall not invest more than 10% of is NAV in equity
shares in cases of open ended schemes.
Correct Answer True
Your Answer
True
True/False
Question
Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer
False
Select The Blank
Question
Most of the deals struck on the fist day of foreign currency
options were of ________ maturity.
Correct Answer 1 year
Your Answer
5 years
Multiple Choice Multiple Answer
Question
Explain the important achievements of SEBI :Correct Answer Takeover code formulated , Proper disclosure to investors
through prospectus mandatory , Guidelines for merchant banker
Your Answer
Takeover code formulated , Proper disclosure to investors
through prospectus mandatory , Guidelines for merchant banker
Multiple Choice Multiple Answer
Question
What are participatory notes?
Correct Answer Instruments used by foreign funds , Instruments used but
investors not register with SEBI , Investors interested in taking
exposure in Indian securities
Your Answer
Instruments used by foreign funds , Instruments used but
investors not register with SEBI , Investors interested in taking
exposure in Indian securities
Select The Blank
Question
Directors should not be member of more than________
committees.
Correct Answer 10
Your Answer
7
Multiple Choice Single Answer
Question
Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer
Group of trustees
Multiple Choice Single Answer
Question
What is the main objective of the promoting Discount and
finance house of India (DFHI) ?
Correct Answer Increasing transactions of money market assets
Your Answer
Increasing transactions of money market assets
Multiple Choice Single Answer
Question
What is the amount of net tangible assets, company should have
to make an IPO?
Correct Answer 3 crores
Your Answer
5crores
Select The Blank
Question
No mutual fund under all its schemes should own more than
________ of any company's paid up capital carrying voting
rights.
Correct Answer 0.1
Your Answer
0.3
Multiple Choice Single Answer
Question
The process of share buy back must be completed within what
period from the date of passing the resolution?
Correct Answer 12 months
Your Answer
12 months
Select The Blank
Question
In case of a public issue by a listed company participation by
promoters in the proposed issues in excess of the required
minimum percentage shall also be looked in for a period of
________.
Correct Answer 1 year
Your Answer
3 years
Multiple Choice Multiple Answer
Question
What is the procedure to make a public announcement ?
Correct Answer Acquirer to appoint a Merchant Banker , PA to be made through
Merchant Banker , PA to be made within four working days of
entering an agreement to acquire shares
Your Answer
Acquirer to appoint a Merchant Banker , PA to be made through
Merchant Banker , PA to be made within four working days of
entering an agreement to acquire shares
Multiple Choice Single Answer
Question
As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during
this year?
Correct Answer 15000 crores
Your Answer
25000 crores
Multiple Choice Multiple Answer
Question
Companies are not allowed to buy back securities :Correct Answer Through any/ own subsidiary company , Through any/group of
investment company , If default subsists in respect of
repayments of deposits, term loans to any financial institutions
and redemption of preference shares or debentures
Your Answer
Through any/ own subsidiary company , Through any/group of
investment company , If default subsists in respect of
repayments of deposits, term loans to any financial institutions
and redemption of preference shares or debentures
Match The Following
Question
Correct Answer
Your Answer
ESPS
Stock option method
Stock option method
Sweat equity
Share issue for
consideration other than
cash
Share issue for
consideration other than
cash
Stock lending mechanism Introduced by SEBI in
1997
Introduced by SEBI in
1997
ESOP
Recipe to make employees
millionaires
Recipe to make
employees millionaires
True/False
Question
The public cannot give their complaints or comments on the
issuer company or others connected with the issue to SEBI.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
What is the status of Stock exchanges today?
Correct Answer Joint stock companies
Your Answer
Joint stock companies
Multiple Choice Single Answer
Question
Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer
38200
Multiple Choice Multiple Answer
Question
What are the objectives of NHB?
Correct Answer To promote, establish, aid in promotion and support of housing
finance institutions , To make loans advances or render any
other form of financial assistance to focusing finance institutions
, To guarantee financial obligations
Your Answer
To promote, establish, aid in promotion and support of housing
finance institutions , To make loans advances or render any
other form of financial assistance to focusing finance institutions
, To guarantee financial obligations
Multiple Choice Single Answer
Question
Apart from the portfolio management fees what percentage of
returns can the portfolio manager share from their client's
profits?
Correct Answer 0
Your Answer
0
Multiple Choice Single Answer
Question
What is the percentage of restriction on HFC's disbursement on
project lending for refinance ?
Correct Answer 0.3
Your Answer
0.3
Select The Blank
Question
Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
Your Answer
Mutual Funds Trading
True/False
Question
MIBOR is a security. Derivatives based on this interest rate have
legal recognition under SCRA.
Correct Answer False
Your Answer
False
True/False
Question
The buy back of shares by Indian corporates has been very
successful in India.
Correct Answer False
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
0.1
Government decided to
pay dividend
NAV
0.15
MF cannot invest as
percentage of NAV in debt
instrument issued by
single issuer
MF cannot invest as
percentage of NAV in debt
instrument issued by single
issuer
Annual statement of
accounts of MF
To be audited by auditor
To be audited by auditor
Rs. 8000 crores
Current shortfall in UTI
schemes
Current shortfall in UTI
schemes
Multiple Choice Single Answer
Question
What is government's move towards Stock Exchanges ?
Correct Answer Demutulisation
Your Answer
Dematerialization
Multiple Choice Single Answer
Question
How much should be the minimum post issue capital of the
company?
Correct Answer 10 crores
Your Answer
10 crores
Multiple Choice Multiple Answer
Question
What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form
, Effect settlement of securities traded on exchanges
Your Answer
Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form
, Effect settlement of securities traded on exchanges
True/False
Question
A portfolio manager need not necessarily sell or purchase
securities separately for each client.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
For a VCF to be registered with SEBI what is the registration fee
?
Correct Answer 5 lacs
Your Answer
5 lacs
Select The Blank
Question
The VCs to flourish requires a well developed ________.
Correct Answer Capital market
Your Answer
Long term funds
Multiple Choice Multiple Answer
Question
What should be done if the address of investor changes?
Correct Answer Inform DP and update records , Inform different companies
Your Answer
Inform DP and update records , Inform different companies
Multiple Choice Single Answer
Question
When did the concept of corporate governance evolve?
Correct Answer During the watergate scandal
Your Answer
During the watergate scandal
Multiple Choice Single Answer
Question
How many times Refinance cannot exceed net owned funds of
Housing finance companies?
Correct Answer 5 times
Your Answer
5 times
True/False
Question
Money market mutual funds are not permitted to invest in
treasury bills and commercial paper.
Correct Answer False
Your Answer
False
Select The Blank
Question
In case of an IPO of any security of issue size of Rs________ or
more security shall be issued only in demat form.
Correct Answer 10 crores
Your Answer
1 crore
True/False
Question
The issue price for placement portion and net offer to public are
not the same.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
What are the salient features of Hire Purchase ?
Correct Answer Finance company purchases the equipment supplier and lets it
on hire , During the contract hirer can opt for an early repayment
and purchase the asset , Hirer may be required to make down
payment
Your Answer
Finance company purchases the equipment supplier and lets it
on hire , During the contract hirer can opt for an early repayment
and purchase the asset , Hirer may be required to make down
payment
Multiple Choice Multiple Answer
Question
What is Sweat equity ?
Correct Answer Equity shares issued by the company to the employees , Issued
to directors at a discount , For consideration other than cash for
providing now
Your Answer
Equity shares issued by the company to the employees , Issued
to directors at a discount , For consideration other than cash for
providing now
Multiple Choice Multiple Answer
Question
Which companies have eroded market capitalization by Rs20
000 crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer
Infosys , Wipro , IBM
True/False
Question
February UTI sought permission of SEBI to close 7 assured
plans prematurely.
Correct Answer True
Your Answer
True
Select The Blank
Question
The service charge is levied for allowing subscribers for entry
into or exit from mutual schemes is called as ________.
Correct Answer Load
Your Answer
Load
Select The Blank
Question
________ is an international credit rating company.
Correct Answer FITSCH
Your Answer
FITSCH
Select The Blank
Question
The NSE Nifty index comprises of ________companies.
Correct Answer 50
Your Answer
50
Select The Blank
Question
For an approval of HFC one of the norms is that the promoter's
contribution has to be minimum ________ of paid up capital.
Correct Answer 0.3
Your Answer
0.3
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
The liability of the underwriters in the MS shoes case was
estimated to be ________.
Correct Answer Rs. 500 crores
Your Answer
Rs. 500 crores
Select The Blank
Question
Largest deal struck on Day 1 of foreign currency option got
underway in India was of ________.
Correct Answer Standard Chartered Bank
Your Answer
ICICI Bank
True/False
Question
If the credit rating is obtained from two different agencies in case
of issue of debt instruments, all the ratings need not be disclosed
in the document.
Correct Answer False
Your Answer
True
True/False
Question
Venture capital finance is risk finance for entrepreneurial growth
oriented companies.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
What qualities do the merchant bankers need to possess?
Correct Answer Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Your Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question
The following are some of the procedures of converting physical
holding into electronic form :Correct Answer Surrender certificates to DP , DP intimates request to depositary
, DP submits the certificates to registrar
Your Answer
Surrender certificates to DP , DP intimates request to depositary
, DP submits the certificates to registrar
Select The Blank
Question
The continuing growth in ________ was one of the factors that
contributed to the growth of credit rating.
Correct Answer Information technology
Your Answer
Information technology
True/False
Question
At the inception of the hire purchases transaction the finance
company records the hire purchase installment receivable as
current asset.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Which company was responsible for spreading the equity culture
in India ?
Correct Answer Reliance Industries
Your Answer
Reliance Industries
Select The Blank
Question
When one decides to have the shares in an electronic form one
has to approach ________.
Correct Answer DP
Your Answer
DP
True/False
Question
The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
What is issued by mutual funds?
Correct Answer Units
Your Answer
Units
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer
Analytical ability and marketing skills , Experience , High risk
taking capacity
Multiple Choice Multiple Answer
Question
Who can buy or sell securities on containing the certificate of
registration?
Correct Answer Underwriter , Merchant banker , Investment advisor
Your Answer
Merchant banker , Investment advisor , RBI
Multiple Choice Multiple Answer
Question
Describe in brief the SEBI regulations for venture capital funds :Correct Answer Must disclose investment strategy , VCF's must be registered ,
Cannot carry out another activity
Your Answer
VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
True/False
Question
DRR is treated as part of general reserve for consideration of
bonus issue of proposals.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
1995
MS shoes scam
MS shoes scam
9/1/2001
SENSEX touched low of
2600
UTI GTB merger
4/1/2001
Tata finance scam came
to light
Tata finance scam came to
light
11/1/2001
Reliance sale of 10.5%
stake in L&T to grasim
Reliance sale of 10.5%
stake in L&T to grasim
Multiple Choice Single Answer
Question
What is the underwriter paid ?
Correct Answer Commission
Your Answer
Commission
Multiple Choice Single Answer
Question
How is a share buy back a useful mechanism in preventing
hostile takeovers?
Correct Answer Share buyback reduces the floating stock in the market thereby
reducing the scope for a raider to acquire enough stock to gain
management control.
Your Answer
Share buyback reduces the floating stock in the market thereby
reducing the scope for a raider to acquire enough stock to gain
management control.
Select The Blank
Question
The process of securitisation involves transfer of assets to a
person specially created called as ________.
Correct Answer Special purpose vehicle
Your Answer
Special purpose vehicle
Multiple Choice Multiple Answer
Question
Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home
or office
Your Answer
Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home
or office
Multiple Choice Single Answer
Question
If the unlisted company does not satisfy the criteria of net worth
profitability and issue size how can it come out with a public
issue?
Correct Answer Through book building process
Your Answer
Merchant bankers
Multiple Choice Multiple Answer
Question
Who issues participatory notes?
Correct Answer Associates of India based foreign brokerages , Domestic
institutional brokerages
Your Answer
Associates of India based foreign brokerages , Domestic
institutional brokerages , Banks for a second or pari passu
charge in case of debt instruments
Multiple Choice Single Answer
Question
What is equipment leasing ?
Correct Answer Contractual agreement where the lessor of equipment transfers
the right to use the equipment to the lessee
Your Answer
Contractual agreement where the lessor of equipment transfers
the right to use the equipment to the lessee
Multiple Choice Single Answer
Question
Renewal of portfolio fund on maturity shall be deemed as a fresh
placement for a minimum period of :Correct Answer 1 year
Your Answer
1 year
Multiple Choice Multiple Answer
Question
What are the likely costs incurred by a credit card issuing bank?
Correct Answer Membership fees to visa/MasterCard , Marketing cost ,
Administrative cost and cost of bad debts
Your Answer
Membership fees to visa/MasterCard , Marketing cost ,
Administrative cost and cost of bad debts
Multiple Choice Multiple Answer
Question
When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
Your Answer
Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
Multiple Choice Single Answer
Question
How many points the sensex went up in January 2000 during the
ketan parekh scam?
Correct Answer 700 points
Your Answer
700 points
Multiple Choice Multiple Answer
Question
What are ESOP's ?
Correct Answer Employees can take part in the prosperity of the company , Is a
reward and linked with the increase in the prices of the shares ,
One of the methods of giving part ownership of the company to
the employees
Your Answer
One of the methods of giving part ownership of the company to
the employees , Employees can take part in the prosperity of the
company
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material
information and should not be misleading. , The company must
pay the consideration only by the way of cash , The company
should not issue any fresh securities including bonus shares till
the date of the closure of the offer.
Your Answer
The shares have to be delisted from the exchange after
completion of the buy back , The offer letter should contain true,
factual and material information and should not be misleading. ,
The company should not issue any fresh securities including
bonus shares till the date of the closure of the offer.
Multiple Choice Single Answer
Question
What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term
instruments
Your Answer
Investment in equities
Multiple Choice Multiple Answer
Question
What are the limitations of refinance facility?
Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Your Answer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital
markets?
Correct Answer Establishment of NSE
Your Answer
Establishment of regional stock exchanges
True/False
Question
Acquisition finance, which provide funding for acquiring another
company are often closely held or fairly owned.
Correct Answer True
Your Answer
True
Select The Blank
Question
In the L & T reliance case, Reliance was fined ________.
Correct Answer Rs. 5 lacs
Your Answer
Rs. 5 lacs
Multiple Choice Multiple Answer
Question
What is the information to be placed before the board of
directors as per the Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer
Annual operating plans , Capital budgets , Quarterly results
Select The Blank
Question
________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer
Mutual funds
Multiple Choice Multiple Answer
Question
What does SEBI do with its power ?
Correct Answer Cancel certificate issued to custodian , Inspect books of DP ,
issuers or beneficiary owners , Investigate an acquirer
Your Answer
Cancel certificate issued to custodian , Inspect books of DP ,
issuers or beneficiary owners , Investigate an acquirer
Multiple Choice Single Answer
Question
What is the eligibility norm for an unlisted company for making
an public issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer
Net worth of the company should not be less than 1 crore
Multiple Choice Multiple Answ er
Question
The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to
investor which represent right in assets , Investments in mutual
funds may be in the form of stock, bond, money market
securities
Your Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to
investor which represent right in assets , Investments in mutual
funds may be in the form of stock, bond, money market
securities
Multiple Choice Single Answer
Question
Who suffered heavy losses during bad times of stock markets?
Correct Answer Small investors
Your Answer
Large investors
Multiple Choice Single Answer
Question
What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer US$14 bn
Your Answer
US$18 bn
Multiple Choice Single Answer
Question
The capital Adequacy ratio for NBFC's has been fixed at :Correct Answer 0.12
Your Answer
0.1
Multiple Choice Multiple Answer
Question
What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a
demat account , Bank payment gateway or online banking facility
Your Answer
Bank payment gateway or online banking facility , A net
connection , A registered account with a broker and a demat
account
Select The Blank
Question
A significant portion of the investment through the participatory
notes is managed by ________ entities.
Correct Answer 114
Your Answer
135
Multiple Choice Multiple Answer
Question
What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Your Answer
Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Select The Blank
Question
Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
Your Answer
Sales tax
Multiple Choice Multiple Answer
Question
What are the features of a Certificate of deposit?
Correct Answer It is a document title to a time deposit , Freely negotiable and
marketable , Can be issued only by commercial banks
Your Answer
It is a document title to a time deposit , Freely negotiable and
marketable , Can be issued only by commercial banks
Select The Blank
Question
________ is in the form of a usance promissory note payable
after 45 days from the date of issue.
Correct Answer Certificate of Deposit
Your Answer
Certificate of Deposit
Multiple Choice Single Answer
Question
Who was the first to introduce rolling settlement in India?
Correct Answer NSE
Your Answer
NSDL
Multiple Choice Single Answer
Question
In the wake of boom of which sector the Indian mutual fund
launched various sector specific schemes?
Correct Answer Software
Your Answer
Software
Multiple Choice Single Answer
Question
What is the most important objective for an investor?
Correct Answer Protection of the value of the investment
Your Answer
Profit maximization
CAPITAL MARKET -AMITA
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat
account , Bank payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment
gateway or online banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors
to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till
approval of trustees and offer document has been filed with the board , With each offer
document pay filing fees , Offer document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain
disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions
arising out of firm allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional investors and
underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of
these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the
employees , Employees can take part in the prosperity of the company , Is a reward and
linked with the increase in the prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One
of the methods of giving part ownership of the company to the employees , Employees
can take part in the prosperity of the company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively
participate in general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and
debenture holders Look into defaults to depositors creditors shareholders and debenture
holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to
vision, mission and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making
process Assisting the board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by
NRI , OCB controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI ,
OCB controlled by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of
proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped ,
Investor should fill in target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor
should fill in target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can
acquire such additional shares as would entitle him to exercise more than ________ of
voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public
issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Your Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in
compliance of SEBI regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges
at least 4 days before the date , Any person holding more than 15% but less than 75%
voting rights shall be disclosed with 2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall
be disclosed with 2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments
made by SEBI and then send within ________ days from the date of PA to all
shareholders whose names appear in the register of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
True/False
Question The public cannot give their complaints or comments on the issuer company
or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in
transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds
funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form , Effect settlement of
securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository
, Maintain the investor's holdings in an electronic form , Effect settlement of securities
traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What is a call option?
Correct Answer Right to buy
Your Answer Right to buy
Select The Blank
Question For an approval of HFC one of the norms is that the promoter's contribution has to be minimum
________ of paid up capital.
Correct Answer 0.3
Your Answer 0.3
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question What is the time frame stipulated by SEBI for members intending to avail of the buy back
offer?
Correct Answer Minimum 15 days and not exceeding 30 days
Your Answer Minimum 15 days and not exceeding 30 days
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters ,
Issue participatory notes by FII to non regulated entities
Multiple Choice Single Answer
Question What is government's move towards Stock Exchanges ?
Correct Answer Demutulisation
Your Answer Demutulisation
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the installment being paid
Multiple Choice Multiple Answer
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors
True/False
Question A bidder can request for a transaction registration slip as the proof of his having entered the
bid.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investment and interest rate risk , Investor characteristics , Liquidity needs and tax
considerations
Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest
rate risk
True/False
Question Acquisition finance, which provide funding for acquiring another company are often closely
held or fairly owned.
Correct Answer True
Your Answer True
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________.
Correct Answer Securities markets
Your Answer Securities markets
Select The Blank
Question In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes.
Correct Answer 7
Your Answer 8
True/False
Question At the inception of the hire purchases transaction the finance company records the hire
purchase installment receivable as current asset.
Correct Answer True
Your Answer True
Select The Blank
Question The company intending to buy back their shares must open a ________ account as per SEBI
regulations.
Correct Answer Escrow
Your Answer Escrow
Match The Following
Question Correct Answer Your Answer
Rs. 8000 crores Current shortfall in UTI schemes Current shortfall in UTI schemes
0.1 Government decided to pay dividend Government decided to pay dividend
0.15 MF cannot invest as percentage of NAV in debt instrument issued by single issuer MF cannot invest
as percentage of NAV in debt instrument issued by single issuer
Annual statement of accounts of MF To be audited by auditor To be audited by auditor
Select The Blank
Question The right to buy is called ________.
Correct Answer Call option
Your Answer Call option
True/False
Question The buy back of shares by Indian corporates has been very successful in India.
Correct Answer False
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture
redemption reserve to be created
Your Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture
redemption reserve to be created
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 38200
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Select The Blank
Question The VCs to flourish requires a well developed ________.
Correct Answer Capital market
Your Answer Capital market
Match The Following
Question Correct Answer Your Answer
Rematerialisation RRF RRF
NSE Settlement cycle T + 3 Settlement cycle T + 3
RBI Gilt securities mobilization Gilt securities mobilization
Non corporate benefit Bonus Bonus
Select The Blank
Question In 2001 a case of rigging and short selling based insider trading was noticed in the case of
proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer UTI Bank with GTB
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer Reduction in paperless work , Reduction in transaction cost , No stamp duty
Your Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Select The Blank
Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________.
Correct Answer 2
Your Answer 2
Multiple Choice Single Answer
Question How is a share buy back a useful mechanism in preventing hostile takeovers?
Correct Answer Share buyback reduces the floating stock in the market thereby reducing the scope for a
raider to acquire enough stock to gain management control.
Your Answer Share buyback reduces the floating stock in the market thereby reducing the scope for a
raider to acquire enough stock to gain management control.
Multiple Choice Multiple Answer
Question To open a DP account, following things are required :Correct Answer Proof of identity , Proof of address , Photograph
Your Answer Proof of identity , Proof of address , Photograph
Multiple Choice Single Answer
Question What is the objective of a credit information company?
Correct Answer To ascertain the credit worthiness of individuals/organizations and make the data
available to all banks
Your Answer To ascertain the credit worthiness of individuals/organizations and make the data available
to all banks
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
True/False
Question Mutual funds can do investments in any security issued by way of private placement by an
associate or group company of the sponsor.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
True/False
Question Transactions that involve substantial payment towards goodwill, brand equity or intellectual
property must be placed before the board of directors as per the recommendations of the Kumarmangalam
Birla report.
Correct Answer True
Your Answer True
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Multiple Answer
Question Which acts were amended to remove some of the hurdles to corporatisation and
demutualisation of stock exchanges?
Correct Answer SCRA , Depository Act
Your Answer SCRA
Multiple Choice Multiple Answer
Question What are the stages in the process of book building broadly divided into?
Correct Answer Syndicate formation , Issue process
Your Answer Syndicate formation , Issue process
Multiple Choice Multiple Answer
Question What are the eligibility norms for an unlisted company for making a public issue?
Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of
distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth
Your Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable
profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth
Multiple Choice Single Answer
Question What is the most common complaint of the investors?
Correct Answer Non receipt of refund orders and allotment advise
Your Answer Non receipt of refund orders and allotment advise
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer To conduct business in accordance with the shareholders interest while conforming to the
local laws and customs
Multiple Choice Multiple Answer
Question What are the eligibility norms for a listed company for making a public issue?
Correct Answer If the issue size is less than five times pre issue net worth , If the issue size is more than
or equal to five times pre issue networth then the listed company to take book building route , 60% of issue
size to be allotted to QIB's
Your Answer If the issue size is less than five times pre issue net worth , If the issue size is more than or
equal to five times pre issue networth then the listed company to take book building route , 60% of issue
size to be allotted to QIB's
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Single Answer
Question What is the underwriter paid ?
Correct Answer Commission
Your Answer Commission
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer Crisil
True/False
Question The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer True
Your Answer True
Select The Blank
Question Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
Your Answer Sales tax
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Single Answer
Question What is Discretionary Portfolio management service ?
Correct Answer Client gives his money for investment to the portfolio manager and leaves it to
him to make all the investment decisions.
Your Answer Client gives his money for investment to the portfolio manager and leaves it to
him to make all the investment decisions.
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to
be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Multiple Choice Multiple Answer
Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who
have common financial goal , Issue units to investor which represent right in assets , Investments
in mutual funds may be in the form of stock, bond, money market securities
Your Answer A trust that pools in savings and funds from large number of investors who have
common financial goal , Issue units to investor which represent right in assets , Investments in
mutual funds may be in the form of stock, bond, money market securities
True/False
Question If the credit rating is obtained from two different agencies in case of issue of debt
instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any litigation connected with
________.
Correct Answer Securities markets
Your Answer Clients
Multiple Choice Multiple Answer
Question What qualities do the merchant bankers need to possess?
Correct Answer Knowledge and information about various aspects of capital markets , Ability to
evaluate and analyze , Update the knowledge
Your Answer Knowledge and information about various aspects of capital markets , Ability to
evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other who wishes to borrow
securities at market related rates , Lender is assured of getting equivalent the relevant securities
by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee
Your Answer Involves two parties one who is willing to lend and other who wishes to borrow
securities at market related rates , Lender gets benefit of reasonable return called lending fee
Multiple Choice Multiple Answer
Question What are the limitations of refinance facility?
Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's
, Not to exceed 15 % of NOF of NHB
Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFC's ,
Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question The process of share buy back must be completed within what period from the date
of passing the resolution?
Correct Answer 12 months
Your Answer 12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign currency deal
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the age of the person borrowing
True/False
Question SEBI cannot investigate the affairs of mutual funds and their trustees and asset
management companies.
Correct Answer False
Your Answer False
Select The Blank
Question In the L & T reliance case, Reliance was fined ________.
Correct Answer Rs. 5 lacs
Your Answer Rs. 5 lacs
Select The Blank
Question Recently many banks have started issuing ________ which could also be used as a
debit card.
Correct Answer ATM card
Your Answer ATM card
Select The Blank
Question A ________ means any persons connected with a company and who is reasonably
having access to unpublished price sensitive information.
Correct Answer Insider
Your Answer Insider
Select The Blank
Question SENSEX is calculated using ________ method.
Correct Answer Market capitalization
Your Answer Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning surplus cash to
the shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is done by
the shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question The public cannot give their complaints or comments on the issuer company or
others connected with the issue to SEBI.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for
each client.
Correct Answer False
Your Answer True
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Your Answer True
True/False
Question Book building is a process whereby the price is determined on the basis of actual
demand as evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the system of rolling settlement prevalent in the USA ?
Correct Answer Transaction + 3
Your Answer Transaction + 3
Multiple Choice Single Answer
Question What is the most important objective for an investor?
Correct Answer Protection of the value of the investment
Your Answer Profit maximization
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
Your Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
Multiple Choice Single Answer
Question What do you mean by venture capital?
Correct Answer Providing seed, start up capital and first stage financing
Your Answer Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Opening of Indian Capital Markets to FII's
Select The Blank
Question The continuing growth in ________ was one of the factors that contributed to the
growth of credit rating.
Correct Answer Information technology
Your Answer Information technology
Select The Blank
Question In case of a public issue by a listed company participation by promoters in the
proposed issues in excess of the required minimum percentage shall also be looked in for a
period of ________.
Correct Answer 1 year
Your Answer 3 years
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the
net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the net
, Operate in stock market privately through home or office
Select The Blank
Question The Kumarmangalam Birla report stressed on the importance of ________ with
respect to AGM's.
Correct Answer Proxy voting / ballot systems
Your Answer Proxy voting / ballot systems
True/False
Question The SEBI guidelines do not make it mandatory for the securities purchased under the
buy back arrangement to be extinguished and physically destroyed.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture trustee ,
Debenture redemption reserve to be created
Your Answer Credit rating , Maturity more than 18 months appoint debenture trustee ,
Debenture redemption reserve to be created
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Multiple Choice Single Answer
Question What is the minimum number of days for which the bid should remain open in book
building?
Correct Answer 5 days
Your Answer 7 days
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Your Answer 4 times
Select The Blank
Question With the introduction of ________ accounts the complaints about allotment have
surely gone down.
Correct Answer DEMAT
Your Answer DEMAT
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Information technology, communication and entertainment represent ________
stocks.
Correct Answer ICE
Your Answer ICE
True/False
Question The public cannot give their complaints or comments on the issuer company or
others connected with the issue to SEBI.
Correct Answer False
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Your Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Your Answer 4 times
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Degree of popularity of the industry , Overall economic condition , Demand
and supply capital
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high
standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely
decision regarding sale and purchase of securities
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment
and interest rate risk
Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and
interest rate risk
Multiple Choice Single Answer
Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans
Your Answer 60% of its outstanding housing loans
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Information technology, communication and entertainment represent
________ stocks.
Correct Answer ICE
Your Answer ICE
True/False
Question The public cannot give their complaints or comments on the issuer
company or others connected with the issue to SEBI.
Correct Answer False
Your Answer True
Select The Blank
Question The right to buy is called ________.
Correct Answer Call option
Your Answer Call option
Multiple Choice Single Answer
Question What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
Your Answer 0.74
Multiple Choice Single Answer
Question Who is responsible to get the securities listed on all the stock
exchanges?
Correct Answer Merchant banker
Your Answer SEBI
Select The Blank
Question A mutual fund scheme shall not invest more than ________ of its
NAV in unrated debt by a single issuer.
Correct Answer 0.1
Your Answer 0.1
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer US$14 bn
Your Answer US$14 bn
True/False
Question The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 38200
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any
scheme till approval of trustees and offer document has been filed with the board
, With each offer document pay filing fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme
till approval of trustees and offer document has been filed with the board , With
each offer document pay filing fees , Offer document to contain disclosures
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer Must disclose investment strategy , VCF's must be registered ,
Cannot carry out another activity
Your Answer VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
True/False
Question Money market mutual funds are not permitted to invest in treasury
bills and commercial paper.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question When can the American style option exercised?
Correct Answer On or before the expiry date
Your Answer On or before the expiry date
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What is the estimated figure of credit card defaults in India?
Correct Answer 800 crores
Your Answer 800 crores
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer False
Select The Blank
Question AA rated companies can raise ________ of its net worth.
Correct Answer 2.5 times
Your Answer 2 times
Multiple Choice Multiple Answer
Question Describe E-trading :-
Correct Answer Screen based trading in place of traditional ring ,
Communication through the net , Operate in stock market privately through home
or office
Your Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Multiple Choice Multiple Answer
Question What are the eligibility norms for an unlisted company for making a
public issue?
Correct Answer Pre issue net worth not less than 1 crores in the last 3 years ,
Track record of distributable profits for at least 3 years , Issue size shall not
exceed five times of its pre issue net worth
Your Answer Issue size shall not exceed five times of its pre issue net worth ,
Pre issue net worth not less than 1 crores in the last 3 years , Track record of
distributable profits for at least 3 years
Select The Blank
Question Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
Your Answer Derivatives Trading
Multiple Choice Multiple Answer
Question During the budget 2003 - 04, Finance Minister made some
announcements which he hopes will make investors think in terms of returning to
stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03
held for 1 year , Removal of income tax on dividends in the hands of receiver
Your Answer No capital gains tax on investment made in equity after 1/3/03
held for 1 year , Removal of income tax on dividends in the hands of receiver ,
Investors income tax on dividend reduced to 12.5%
Multiple Choice Single Answer
Question How many members are appointed by the central government?
Correct Answer 2
Your Answer 2
Multiple Choice Multiple Answer
Question Which acts were amended to remove some of the hurdles to
corporatisation and demutualisation of stock exchanges?
Correct Answer SCRA , Depository Act
Your Answer SCRA , Depository Act
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should
effectively participate in general body meetings
Objective of Audit committee Look into defaults to depositors creditors
shareholders and debenture holders Look into defaults to depositors creditors
shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial
commitment to vision, mission and values Superficial commitment to vision,
mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision
making process Decision making
Multiple Choice Multiple Answer
Question Which companies have eroded market capitalization by Rs20 000
crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer Infosys , Satyam , Wipro
Multiple Choice Multiple Answer
Question What does SEBI do with its power ?
Correct Answer Cancel certificate issued to custodian , Inspect books of DP ,
issuers or beneficiary owners , Investigate an acquirer
Your Answer Cancel certificate issued to custodian , Inspect books of DP ,
issuers or beneficiary owners , Investigate an acquirer
True/False
Question Amendment to SCRA will facilitate derivatives trading in interest rate
futures and options if there is an underlying asset.
Correct Answer True
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or
more security shall be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material
information and should not be misleading. , The company must pay the
consideration only by the way of cash , The company should not issue any fresh
securities including bonus shares till the date of the closure of the offer.
Your Answer The offer letter should contain true, factual and material
information and should not be misleading. , The company must pay the
consideration only by the way of cash , The company should not issue any fresh
securities including bonus shares till the date of the closure of the offer.
Select The Blank
Question The DP opens investor account in the system and gives an account
number also known as ________.
Correct Answer BO ID
Your Answer BO ID
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how
many times of the net owned funds?
Correct Answer 4 times
Your Answer 4 times
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital ,
Degree of popularity of the industry
Your Answer Overall economic condition , Demand and supply capital ,
Degree of popularity of the industry
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and
Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and
fairness Observe high standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To
make timely decision regarding sale and purchase of securities
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax
considerations , Investment and interest rate risk
Your Answer Investor characteristics , Liquidity needs and tax considerations ,
Investment and interest rate risk
Multiple Choice Single Answer
Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans
Your Answer 60% of its outstanding housing loans
True/False
Question RBI has permitted all commercial banks, financial institutions and
large corporates to issue certificate of deposits.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term
instruments
Your Answer Market for long term funds and investments in long term
instruments
Multiple Choice Multiple Answer
Question What is dematerialization ?
Correct Answer Physical certificates converted into electronic from , Credited
into investors account with his/ her DP
Your Answer Physical certificates converted into electronic from , Credited into
investors account with his/ her DP , Selling shares
Select The Blank
Question ________ is in the form of a usance promissory note payable after
45 days from the date of issue.
Correct Answer Certificate of Deposit
Your Answer Certificate of Deposit
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in
India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question What is the amount of net worth accompany should have for opting
for an IPO ?
Correct Answer 1 Crore
Your Answer 1 Crore
Select The Blank
Question The process of securitisation involves transfer of assets to a person
specially created called as ________.
Correct Answer Special purpose vehicle
Your Answer Special purpose vehicle
True/False
Question A mutual fund shall not invest more than 10% of is NAV in equity
shares in cases of open ended schemes.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question What is a put option?
Correct Answer Right to sell
Your Answer Right to sell
True/False
Question Venture capital finance is risk finance for entrepreneurial growth
oriented companies.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Who can change the composition of securities?
Correct Answer Fund manager
Your Answer Fund manager
True/False
Question Employee stock option scheme granted to the employee is
transferable.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's
issued by RBI :-
Correct Answer Without the registration certificate no company can undertake
activities of NBFC , All companies must be liquid assets equal to 15% of deposits
, All the NBFC's must register with RBI
Your Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be
liquid assets equal to 15% of deposits
True/False
Question Transactions that involve substantial payment towards goodwill,
brand equity or intellectual property must be placed before the board of directors
as per the recommendations of the Kumarmangalam Birla report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Deposits can be accepted for a maximum period of :Correct Answer 5 years
Your Answer 10 years
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in
India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 37775
Multiple Choice Single Answer
Question In the wake of boom of which sector the Indian mutual fund launched
various sector specific schemes?
Correct Answer Software
Your Answer Software
Select The Blank
Question In 2001 a case of rigging and short selling based insider trading was
noticed in the case of proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer OBC with GTB
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Multiple Choice Single Answer
Question What is equipment leasing ?
Correct Answer Contractual agreement where the lessor of equipment
transfers the right to use the equipment to the lessee
Your Answer Contractual agreement where the lessor of equipment transfers
the right to use the equipment to the lessee
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital ,
Degree of popularity of the industry
Your Answer Overall economic condition , Demand and supply capital ,
Degree of popularity of the industry
True/False
Question Mergers and amalgamations of companies are also covered under
the SEBI regulations 1997.
Correct Answer False
Your Answer False
Select The Blank
Question No mutual fund under all its schemes should own more than
________ of any company's paid up capital carrying voting rights.
Correct Answer 0.1
Your Answer 0.3
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills
, Experience
Multiple Choice Multiple Answer
Question Describe E-trading :-
Correct Answer Screen based trading in place of traditional ring ,
Communication through the net , Operate in stock market privately through home
or office
Your Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Multiple Choice Single Answer
Question If the unlisted company does not satisfy the criteria of net worth
profitability and issue size how can it come out with a public issue?
Correct Answer Through book building process
Your Answer Through book building process
Multiple Choice Single Answer
Question Which is the favorite destination for venture funds?
Correct Answer BPO
Your Answer BPO
Multiple Choice Multiple Answer
Question Who issues participatory notes?
Correct Answer Associates of India based foreign brokerages , Domestic
institutional brokerages
Your Answer Associates of India based foreign brokerages , Domestic
institutional brokerages
Multiple Choice Single Answer
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Your Answer 5 lacs
Match The Following
Question Correct Answer Your Answer
Ready forward transaction (Repo) Interbank sale and repurchase of securities
Interbank sale and repurchase of securities
Commercial paper Means of raising short term debt by companies Means of
raising short term debt by companies
STCI Operations in call money markets Operations in call money markets
Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05
True/False
Question Money market mutual funds are not permitted to invest in treasury
bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the norms for Approval of Housing finance companies by
NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any
appointment of auditors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any
appointment of auditors
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any
scheme till approval of trustees and offer document has been filed with the board
, With each offer document pay filing fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme
till approval of trustees and offer document has been filed with the board , With
each offer document pay filing fees , Offer document to contain disclosures
Multiple Choice Single Answer
Question What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Your Answer 0.25
True/False
Question Acquisition finance, which provide funding for acquiring another
company are often closely held or fairly owned.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Select The Blank
Question The acquirer is required to make the PA within ________ working
days of entering into an agreement to acquire shares or deciding to acquire
share's voting rights of target company.
Correct Answer 4
Your Answer 4
Multiple Choice Single Answer
Question What is the objective of public announcement?
Correct Answer Ensure that the shareholders of the target company are aware
of the exit opportunity available to them
Your Answer Ensure that the shareholders of the target company are aware of
the exit opportunity available to them
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
True/False
Question If the credit rating is obtained from two different agencies in case of
issue of debt instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Who can change the composition of securities?
Correct Answer Fund manager
Your Answer Fund manager
True/False
Question Employee stock option scheme granted to the employee is
transferable.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's
issued by RBI :Correct Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be
liquid assets equal to 15% of deposits
Your Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be
liquid assets equal to 15% of deposits
True/False
Question Transactions that involve substantial payment towards goodwill,
brand equity or intellectual property must be placed before the board of directors
as per the recommendations of the Kumarmangalam Birla report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Deposits can be accepted for a maximum period of :Correct Answer 5 years
Your Answer 10 years
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in
India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 37775
Multiple Choice Single Answer
Question In the wake of boom of which sector the Indian mutual fund launched
various sector specific schemes?
Correct Answer Software
Your Answer Software
Select The Blank
Question In 2001 a case of rigging and short selling based insider trading was
noticed in the case of proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer OBC with GTB
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Multiple Choice Single Answer
Question What is equipment leasing ?
Correct Answer Contractual agreement where the lessor of equipment
transfers the right to use the equipment to the lessee
Your Answer Contractual agreement where the lessor of equipment transfers
the right to use the equipment to the lessee
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital ,
Degree of popularity of the industry
Your Answer Overall economic condition , Demand and supply capital ,
Degree of popularity of the industry
True/False
Question Mergers and amalgamations of companies are also covered under
the SEBI regulations 1997.
Correct Answer False
Your Answer False
Select The Blank
Question The DP opens investor account in the system and gives an account
number also known as ________.
Correct Answer BO ID
Your Answer BO ID
True/False
Question Constant change would be one of the reasons for failure of corporate
governance.
Correct Answer True
Your Answer False
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or
more security shall be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
True/False
Question The company opting for an IPO should have net worth of at least Rs
1 crore in each of the preceding two years.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form , Effect
settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form , Effect
settlement of securities traded on exchanges
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term
instruments
Your Answer Market for long term funds and investments in long term
instruments
Match The Following
Question Correct Answer Your Answer
Castrol FY 2003 - 03 Dividend Rs145 crores FY 2003 - 03 Dividend Rs145
crores
MS Verma committee Dual Flotation Dual Flotation
Hero Honda FY 2003 - 03 Dividend Rs187 crores FY 2003 - 03 Dividend Rs187
crores
VSNL FY 2003 - 03 Dividend Rs172 crores FY 2003 - 03 Dividend Rs172 crores
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Multiple Answer
Question What is dematerialization ?
Correct Answer Credited into investors account with his/ her DP , Physical
certificates converted into electronic from
Your Answer Physical certificates converted into electronic from , Credited into
investors account with his/ her DP
Select The Blank
Question No mutual fund under all its schemes should own more than
________ of any company's paid up capital carrying voting rights.
Correct Answer 0.1
Your Answer 0.3
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills
, Experience
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring ,
Communication through the net , Operate in stock market privately through home
or office
Your Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Multiple Choice Single Answer
Question If the unlisted company does not satisfy the criteria of net worth
profitability and issue size how can it come out with a public issue?
Correct Answer Through book building process
Your Answer Through book building process
Multiple Choice Single Answer
Question Which is the favorite destination for venture funds?
Correct Answer BPO
Your Answer BPO
Multiple Choice Multiple Answer
Question Who issues participatory notes?
Correct Answer Associates of India based foreign brokerages , Domestic
institutional brokerages
Your Answer Associates of India based foreign brokerages , Domestic
institutional brokerages
Multiple Choice Single Answer
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Your Answer 5 lacs
Match The Following
Question Correct Answer Your Answer
Ready forward transaction (Repo) Interbank sale and repurchase of securities
Interbank sale and repurchase of securities
Commercial paper Means of raising short term debt by companies Means of
raising short term debt by companies
STCI Operations in call money markets Operations in call money markets
Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05
True/False
Question Money market mutual funds are not permitted to invest in treasury
bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the norms for Approval of Housing finance companies by
NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any
appointment of auditors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any
appointment of auditors
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any
scheme till approval of trustees and offer document has been filed with the board
, With each offer document pay filing fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme
till approval of trustees and offer document has been filed with the board , With
each offer document pay filing fees , Offer document to contain disclosures
Multiple Choice Single Answer
Question What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Your Answer 0.25
True/False
Question Acquisition finance, which provide funding for acquiring another
company are often closely held or fairly owned.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Select The Blank
Question The acquirer is required to make the PA within ________ working
days of entering into an agreement to acquire shares or deciding to acquire
share's voting rights of target company.
Correct Answer 4
Your Answer 4
Multiple Choice Single Answer
Question What is the objective of public announcement?
Correct Answer Ensure that the shareholders of the target company are aware
of the exit opportunity available to them
Your Answer Ensure that the shareholders of the target company are aware of
the exit opportunity available to them
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
True/False
Question If the credit rating is obtained from two different agencies in case of
issue of debt instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not
misused by NRI , OCB controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused
by NRI , OCB controlled by Indians promoters
Select The Blank
Question When one decides to have the shares in an electronic form one has
to approach ________.
Correct Answer DP
Your Answer DP
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not
misused by NRI , OCB controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused
by NRI , OCB controlled by Indians promoters
Select The Blank
Question When one decides to have the shares in an electronic form one has
to approach ________.
Correct Answer DP
Your Answer DP
CAPITAL MARKET -AMITA
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat
account , Bank payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment
gateway or online banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors
to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till
approval of trustees and offer document has been filed with the board , With each offer
document pay filing fees , Offer document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain
disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions
arising out of firm allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional investors and
underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of
these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the
employees , Employees can take part in the prosperity of the company , Is a reward and
linked with the increase in the prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One
of the methods of giving part ownership of the company to the employees , Employees
can take part in the prosperity of the company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively
participate in general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and
debenture holders Look into defaults to depositors creditors shareholders and debenture
holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to
vision, mission and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making
process Assisting the board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by
NRI , OCB controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI ,
OCB controlled by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of
proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped ,
Investor should fill in target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor
should fill in target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can
acquire such additional shares as would entitle him to exercise more than ________ of
voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public
issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Your Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in
compliance of SEBI regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges
at least 4 days before the date , Any person holding more than 15% but less than 75%
voting rights shall be disclosed with 2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall
be disclosed with 2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments
made by SEBI and then send within ________ days from the date of PA to all
shareholders whose names appear in the register of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
True/False
Question The public cannot give their complaints or comments on the issuer company
or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in
transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds
funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form , Effect settlement of
securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository
, Maintain the investor's holdings in an electronic form , Effect settlement of securities
traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Correct Answer False
Your Answer False
CAPITAL MARKET -AMITA
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat
account , Bank payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment
gateway or online banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors
to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till
approval of trustees and offer document has been filed with the board , With each offer
document pay filing fees , Offer document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain
disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions
arising out of firm allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional investors and
underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of
these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the
employees , Employees can take part in the prosperity of the company , Is a reward and
linked with the increase in the prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One
of the methods of giving part ownership of the company to the employees , Employees
can take part in the prosperity of the company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively
participate in general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and
debenture holders Look into defaults to depositors creditors shareholders and debenture
holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to
vision, mission and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making
process Assisting the board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by
NRI , OCB controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI ,
OCB controlled by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of
proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped ,
Investor should fill in target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor
should fill in target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can
acquire such additional shares as would entitle him to exercise more than ________ of
voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public
issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Your Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in
compliance of SEBI regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges
at least 4 days before the date , Any person holding more than 15% but less than 75%
voting rights shall be disclosed with 2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall
be disclosed with 2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments
made by SEBI and then send within ________ days from the date of PA to all
shareholders whose names appear in the register of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
True/False
Question The public cannot give their complaints or comments on the issuer company
or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in
transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds
funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form , Effect settlement of
securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository
, Maintain the investor's holdings in an electronic form , Effect settlement of securities
traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Correct Answer False
Your Answer False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer Crisil
True/False
Question The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer True
Your Answer True
Select The Blank
Question Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
Your Answer Sales tax
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Multiple Choice Single Answer
Question What is Discretionary Portfolio management service ?
Correct Answer Client gives his money for investment to the portfolio manager and
leaves it to him to make all the investment decisions.
Your Answer Client gives his money for investment to the portfolio manager and
leaves it to him to make all the investment decisions.
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is
expected to be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Multiple Choice Multiple Answer
Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors
who have common financial goal , Issue units to investor which represent right in assets ,
Investments in mutual funds may be in the form of stock, bond, money market securities
Your Answer A trust that pools in savings and funds from large number of investors
who have common financial goal , Issue units to investor which represent right in assets ,
Investments in mutual funds may be in the form of stock, bond, money market securities
True/False
Question If the credit rating is obtained from two different agencies in case of issue of
debt instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any litigation
connected with ________.
Correct Answer Securities markets
Your Answer Clients
Multiple Choice Multiple Answer
Question What qualities do the merchant bankers need to possess?
Correct Answer Knowledge and information about various aspects of capital markets ,
Ability to evaluate and analyze , Update the knowledge
Your Answer Knowledge and information about various aspects of capital markets ,
Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other who wishes
to borrow securities at market related rates , Lender is assured of getting equivalent the
relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable
return called lending fee
Your Answer Involves two parties one who is willing to lend and other who wishes to
borrow securities at market related rates , Lender gets benefit of reasonable return called
lending fee
Multiple Choice Multiple Answer
Question What are the limitations of refinance facility?
Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds
of HFC's , Not to exceed 15 % of NOF of NHB
Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of
HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question The process of share buy back must be completed within what period from
the date of passing the resolution?
Correct Answer 12 months
Your Answer 12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign
currency deal
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the age of the person borrowing
True/False
Question SEBI cannot investigate the affairs of mutual funds and their trustees and
asset management companies.
Correct Answer False
Your Answer False
Select The Blank
Question In the L & T reliance case, Reliance was fined ________.
Correct Answer Rs. 5 lacs
Your Answer Rs. 5 lacs
Select The Blank
Question Recently many banks have started issuing ________ which could also be
used as a debit card.
Correct Answer ATM card
Your Answer ATM card
Select The Blank
Question A ________ means any persons connected with a company and who is
reasonably having access to unpublished price sensitive information.
Correct Answer Insider
Your Answer Insider
Select The Blank
Question SENSEX is calculated using ________ method.
Correct Answer Market capitalization
Your Answer Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning surplus
cash to the shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is
done by the shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question The public cannot give their complaints or comments on the issuer company
or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Correct Answer False
Your Answer True
True/False
Question RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
True/False
Question Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional investors and
underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the system of rolling settlement prevalent in the USA ?
Correct Answer Transaction + 3
Your Answer Transaction + 3
Multiple Choice Single Answer
Question What is the most important objective for an investor?
Correct Answer Protection of the value of the investment
Your Answer Profit maximization
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by
RBI :Correct Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be liquid
assets equal to 15% of deposits
Your Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be liquid
assets equal to 15% of deposits
Multiple Choice Single Answer
Question What do you mean by venture capital?
Correct Answer Providing seed, start up capital and first stage financing
Your Answer Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Opening of Indian Capital Markets to FII's
Select The Blank
Question The continuing growth in ________ was one of the factors that contributed to
the growth of credit rating.
Correct Answer Information technology
Your Answer Information technology
Select The Blank
Question In case of a public issue by a listed company participation by promoters in
the proposed issues in excess of the required minimum percentage shall also be looked in
for a period of ________.
Correct Answer 1 year
Your Answer 3 years
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Select The Blank
Question The Kumarmangalam Birla report stressed on the importance of ________
with respect to AGM's.
Correct Answer Proxy voting / ballot systems
Your Answer Proxy voting / ballot systems
True/False
Question The SEBI guidelines do not make it mandatory for the securities purchased
under the buy back arrangement to be extinguished and physically destroyed.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Your Answer Credit rating , Maturity more than 18 months appoint debenture trustee ,
Debenture redemption reserve to be created
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must
disclose investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity , Must
disclose investment strategy
Multiple Choice Single Answer
Question What is the minimum number of days for which the bid should remain open
in book building?
Correct Answer 5 days
Your Answer 7 days
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times
of the net owned funds?
Correct Answer 4 times
Your Answer 4 times
Select The Blank
Question With the introduction of ________ accounts the complaints about allotment
have surely gone down.
Correct Answer DEMAT
Your Answer DEMAT
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer Crisil
True/False
Question The acquirer is required to appoint a merchant banker before making a PA.
Correct Answer True
Your Answer True
Select The Blank
Question Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
Your Answer Sales tax
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Multiple Choice Single Answer
Question What is Discretionary Portfolio management service ?
Correct Answer Client gives his money for investment to the portfolio manager and
leaves it to him to make all the investment decisions.
Your Answer Client gives his money for investment to the portfolio manager and
leaves it to him to make all the investment decisions.
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is
expected to be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Multiple Choice Multiple Answer
Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors
who have common financial goal , Issue units to investor which represent right in assets ,
Investments in mutual funds may be in the form of stock, bond, money market securities
Your Answer A trust that pools in savings and funds from large number of investors
who have common financial goal , Issue units to investor which represent right in assets ,
Investments in mutual funds may be in the form of stock, bond, money market securities
True/False
Question If the credit rating is obtained from two different agencies in case of issue of
debt instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any litigation
connected with ________.
Correct Answer Securities markets
Your Answer Clients
Multiple Choice Multiple Answer
Question What qualities do the merchant bankers need to possess?
Correct Answer Knowledge and information about various aspects of capital markets ,
Ability to evaluate and analyze , Update the knowledge
Your Answer Knowledge and information about various aspects of capital markets ,
Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other who wishes
to borrow securities at market related rates , Lender is assured of getting equivalent the
relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable
return called lending fee
Your Answer Involves two parties one who is willing to lend and other who wishes to
borrow securities at market related rates , Lender gets benefit of reasonable return called
lending fee
Multiple Choice Multiple Answer
Question What are the limitations of refinance facility?
Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds
of HFC's , Not to exceed 15 % of NOF of NHB
Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of
HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question The process of share buy back must be completed within what period from
the date of passing the resolution?
Correct Answer 12 months
Your Answer 12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign
currency deal
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the age of the person borrowing
True/False
Question SEBI cannot investigate the affairs of mutual funds and their trustees and
asset management companies.
Correct Answer False
Your Answer False
Select The Blank
Question In the L & T reliance case, Reliance was fined ________.
Correct Answer Rs. 5 lacs
Your Answer Rs. 5 lacs
Select The Blank
Question Recently many banks have started issuing ________ which could also be
used as a debit card.
Correct Answer ATM card
Your Answer ATM card
Select The Blank
Question A ________ means any persons connected with a company and who is
reasonably having access to unpublished price sensitive information.
Correct Answer Insider
Your Answer Insider
Select The Blank
Question SENSEX is calculated using ________ method.
Correct Answer Market capitalization
Your Answer Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning surplus
cash to the shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy back is
done by the shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question The public cannot give their complaints or comments on the issuer company
or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Correct Answer False
Your Answer True
True/False
Question RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
True/False
Question Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional investors and
underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the system of rolling settlement prevalent in the USA ?
Correct Answer Transaction + 3
Your Answer Transaction + 3
Multiple Choice Single Answer
Question What is the most important objective for an investor?
Correct Answer Protection of the value of the investment
Your Answer Profit maximization
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by
RBI :Correct Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be liquid
assets equal to 15% of deposits
Your Answer All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be liquid
assets equal to 15% of deposits
Multiple Choice Single Answer
Question What do you mean by venture capital?
Correct Answer Providing seed, start up capital and first stage financing
Your Answer Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Opening of Indian Capital Markets to FII's
Select The Blank
Question The continuing growth in ________ was one of the factors that contributed to
the growth of credit rating.
Correct Answer Information technology
Your Answer Information technology
Select The Blank
Question In case of a public issue by a listed company participation by promoters in
the proposed issues in excess of the required minimum percentage shall also be looked in
for a period of ________.
Correct Answer 1 year
Your Answer 3 years
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication
through the net , Operate in stock market privately through home or office
Select The Blank
Question The Kumarmangalam Birla report stressed on the importance of ________
with respect to AGM's.
Correct Answer Proxy voting / ballot systems
Your Answer Proxy voting / ballot systems
True/False
Question The SEBI guidelines do not make it mandatory for the securities purchased
under the buy back arrangement to be extinguished and physically destroyed.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Your Answer Credit rating , Maturity more than 18 months appoint debenture trustee ,
Debenture redemption reserve to be created
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must
disclose investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity , Must
disclose investment strategy
Multiple Choice Single Answer
Question What is the minimum number of days for which the bid should remain open
in book building?
Correct Answer 5 days
Your Answer 7 days
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times
of the net owned funds?
Correct Answer 4 times
Your Answer 4 times
Select The Blank
Question With the introduction of ________ accounts the complaints about allotment
have surely gone down.
Correct Answer DEMAT
Your Answer DEMAT
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat
account , Bank payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment
gateway or online banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors
to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till
approval of trustees and offer document has been filed with the board , With each offer
document pay filing fees , Offer document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain
disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions
arising out of firm allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional investors and
underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of
these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the
Kumarmangalam report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the
employees , Employees can take part in the prosperity of the company , Is a reward and
linked with the increase in the prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One
of the methods of giving part ownership of the company to the employees , Employees
can take part in the prosperity of the company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively
participate in general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and
debenture holders Look into defaults to depositors creditors shareholders and debenture
holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to
vision, mission and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making
process Assisting the board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by
NRI , OCB controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI ,
OCB controlled by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of
proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped ,
Investor should fill in target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor
should fill in target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can
acquire such additional shares as would entitle him to exercise more than ________ of
voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public
issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate
account to be maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Your Answer Corporate Governance is all about promoting corporate fairness,
transparency and accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in
compliance of SEBI regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges
at least 4 days before the date , Any person holding more than 15% but less than 75%
voting rights shall be disclosed with 2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall
be disclosed with 2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments
made by SEBI and then send within ________ days from the date of PA to all
shareholders whose names appear in the register of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died ,
Circumstances as in opinion of board
True/False
Question The public cannot give their complaints or comments on the issuer company
or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in
transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds
funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the
depository , Maintain the investor's holdings in an electronic form , Effect settlement of
securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository
, Maintain the investor's holdings in an electronic form , Effect settlement of securities
traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question
What was the objective of setting up the Securities Trading corporation of
India Ltd?
Correct Answer To promote secondary market in government securities
Your Answer
To strengthen the capital markets
Multiple Choice Multiple Answer
Question
What are the salient features of Hire Purchase ?
Correct Answer Finance company purchases the equipment supplier and lets it on hire ,
During the contract hirer can opt for an early repayment and purchase the
asset , Hirer may be required to make down payment
Your Answer
During the contract hirer can opt for an early repayment and purchase the
asset , Hirer may be required to make down payment , Finance company
purchases the equipment supplier and lets it on hire
True/False
Question
A mutual fund shall not invest more than 10% of is NAV in equity shares in
cases of open ended schemes.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer
Mutual funds
Multiple Choice Single Answer
Question
Who takes risk at the time of investment ?
Correct Answer Investor
Your Answer
Investor
True/False
Question
MIBOR is a security. Derivatives based on this interest rate have legal
recognition under SCRA.
Correct Answer False
Your Answer
True
Select The Blank
Question
It is the responsibility of the ________ to ensure the timely refunds and
allotments of the securities.
Correct Answer Lead managers
Your Answer
Lead managers
True/False
Question
A credit card is a payment mechanism which enables the holder to buy
goods and services on credit.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Looses the rights to vote
Non voting shares
Non voting shares
Book building
Bharati Televentures
Bharati Televentures
Depository
Bank of securities
Bank of securities
First to introduce rolling
settlements in the country
NSE
NSE
Select The Blank
Question
Final prospectus in the book building p________ess is to be filed with the
ROC.
Correct Answer ROC
Your Answer
ROC
Select The Blank
Question
A company with highly rated instrument has the opportunity to ________
by quoting less interest rates.
Correct Answer Reduce the cost of borrowing
Your Answer
Reduce the cost of borrowing
True/False
Question
Book building is a process whereby the price is determined on the basis of
actual demand as evident from the offers given by the various institutional
investors and underwriters.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
Your Answer
Minimum paid up capital 1 crore , At least 2 directors , At least 50% loans
in long term nature
Multiple Choice Single Answer
Question
A portfolio manager could undertake the following on behalf of his clients :Correct Answer Hedging and arbitrage transactions
Your Answer
Hedging and arbitrage transactions
Multiple Choice Multiple Answer
Question
How is price determined in an open offer?
Correct Answer Negotiated price , Price paid by acquirer , Average weekly high low of
closing share of the target company
Your Answer
Negotiated price , Price paid by acquirer , Average weekly high low of
closing share of the target company
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills ,
Experience
Your Answer
Experience , Sound General knowledge , Analytical ability and marketing
skills
Multiple Choice Single Answer
Question
Renewal of portfolio fund on maturity shall be deemed as a fresh
placement for a minimum period of :Correct Answer 1 year
Your Answer
2 years
True/False
Question
In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer
True
Select The Blank
Question
One of the process of book building is that the issuer appoints a ________
also known as the book runner.
Correct Answer Lead manager
Your Answer
Lead manager
Select The Blank
Question
The process of securitisation involves transfer of assets to a person
specially created called as ________.
Correct Answer Special purpose vehicle
Your Answer
Trust
True/False
Question
A custodian can transfer beneficial ownership legally.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Apart from the portfolio management fees what percentage of returns can
the portfolio manager share from their client's profits?
Correct Answer 0
Your Answer
0
True/False
Question
The SEBI guidelines do not make it mandatory for the securities
purchased under the buy back arrangement to be extinguished and
physically destroyed.
Correct Answer False
Your Answer
False
Select The Blank
Question
BSE introduced an equity stock index known as ________.
Correct Answer SENSEX
Your Answer
SENSEX
Multiple Choice Multiple Answer
Question
As per the recommendations of the Kumarmangalam Birla committee
report who are the key components of an audit committee.
Correct Answer Board , Internal auditor , External auditor
Your Answer
Board , Internal auditor , External auditor
Multiple Choice Multiple Answer
Question
Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer
Infosys , Satyam , Wipro
Multiple Choice Multiple Answer
Question
What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and
should not be misleading. , The company must pay the consideration only
by the way of cash , The company should not issue any fresh securities
including bonus shares till the date of the closure of the offer.
Your Answer
The offer letter should contain true, factual and material information and
should not be misleading. , The company must pay the consideration only
by the way of cash , The company should not issue any fresh securities
including bonus shares till the date of the closure of the offer.
Multiple Choice Multiple Answer
Question
What are the different kinds of stock exchanges in India?
Correct Answer Voluntary non profit making organizations , Joint stock companies limited
by shares , Joint stock companies Limited by guarantee
Your Answer
Voluntary non profit making organizations , Joint stock companies limited
by shares , Private limited companies
Multiple Choice Multiple Answer
Question
Companies are not allowed to buy back securities :Correct Answer Through any/ own subsidiary company , Through any/group of investment
company , If default subsists in respect of repayments of deposits, term
loans to any financial institutions and redemption of preference shares or
debentures
Your Answer
Through any/ own subsidiary company , Through any/group of investment
company , If default subsists in respect of repayments of deposits, term
loans to any financial institutions and redemption of preference shares or
debentures
True/False
Question
The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer
True
Select The Blank
Question
For issues upto Rs. 50 crores the number of lead managers will not
exceed ________.
Correct Answer 2
Your Answer
4
Match The Following
Question
Correct Answer
Your Answer
Ready forward transaction
(Repo)
Interbank sale and
repurchase of securities
Operations in call money
markets
Commercial paper
Means of raising short term
debt by companies
Means of raising short term
debt by companies
STCI
Operations in call money
markets
Launched in fiscal 2004-05
Market stabilsation Bonds
Launched in fiscal 2004-05
Interbank sale and repurchase
of securities
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their trustees and
asset management companies.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
What is the time frame to submit a report to SEBI for acquisition
transactions arising out of firm allotment in public issues right issues etc?
Correct Answer 21 days
Your Answer
21 days
True/False
Question
The acquirer is required to appoint a merchant banker before making a
PA.
Correct Answer True
Your Answer
True
Select The Blank
Question
The right to buy is called ________.
Correct Answer Call option
Your Answer
Call option
Multiple Choice Single Answer
Question
Upto what percentage has the RBI permitted the banks to invest in the
capital market ?
Correct Answer 0.05
Your Answer
0.05
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer
Opening of Indian Capital Markets to FII's
Multiple Choice Single Answer
Question
What is the eligibility norm for an unlisted company for making an public
issue as regards to its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer
Net worth of the company should not be less than 1 crore
Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer
3
Select The Blank
Question
Among the closed schemes, 4 long term assurance schemes were
launched with a return ranging between ________.
Correct Answer 13 - 14%
Your Answer
15 - 16%
Multiple Choice Multiple Answer
Question
What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations ,
Investment and interest rate risk
Your Answer
Investor characteristics , Liquidity needs and tax considerations ,
Investment and interest rate risk
Multiple Choice Single Answer
Question
What was the percentage of public offering under the IPOs through the
book building method ?
Correct Answer 0.1
Your Answer
0.25
Multiple Choice Multiple Answer
Question
What are the main features of commercial paper?
Correct Answer Short term financial instrument , Negotiable and transferable instrument ,
Companies issue it for raising short term debt
Your Answer
Short term financial instrument , Negotiable and transferable instrument ,
Companies issue it for raising short term debt
Select The Blank
Question
A ________ can legally transfer beneficial ownership.
Correct Answer Depository
Your Answer
Depository
Multiple Choice Multiple Answer
Question
The setting up of NSE consists of:Correct Answer Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations
in June 1994
Your Answer
Equity paid up capital of Rs25 crores , Started operations in June 1994 ,
There is a trading floor in this exchange
Multiple Choice Single Answer
Question
Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer
Securities And Exchange Board of India
Capital Market_20
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Information technology, communication and entertainment represent ________
stocks.
Correct Answer ICE
Your Answer ICE
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer True
Select The Blank
Question The right to buy is called ________.
Correct Answer Call option
Your Answer Call option
Multiple Choice Single Answer
Question What percentage of funds should be invested in unlisted companies?
Correct Answer 0.74
Your Answer 0.74
Multiple Choice Single Answer
Question Who is responsible to get the securities listed on all the stock exchanges?
Correct Answer Merchant banker
Your Answer SEBI
Select The Blank
Question A mutual fund scheme shall not invest more than ________ of its NAV in unrated
debt by a single issuer.
Correct Answer 0.1
Your Answer 0.1
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
True/False
Question The depository can legally transfer beneficial ownership.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 38200
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
-1-
Capital Market_20
Your Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer Must disclose investment strategy , VCF's must be registered , Cannot carry
out another activity
Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question When can the American style option exercised?
Correct Answer On or before the expiry date
Your Answer On or before the expiry date
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What is the estimated figure of credit card defaults in India?
Correct Answer 800 crores
Your Answer 800 crores
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Your Answer False
Select The Blank
Question AA rated companies can raise ________ of its net worth.
Correct Answer 2.5 times
Your Answer 2 times
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the
net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the net ,
Operate in stock market privately through home or office
Multiple Choice Multiple Answer
Question What are the eligibility norms for an unlisted company for making a public issue?
Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of
distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net
worth
-2-
Capital Market_20
Your Answer Issue size shall not exceed five times of its pre issue net worth , Pre issue net
worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3
years
Select The Blank
Question Markets have moved away from Badla system to ________ .
Correct Answer Derivatives Trading
Your Answer Derivatives Trading
Multiple Choice Multiple Answer
Question During the budget 2003 - 04, Finance Minister made some announcements which he
hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year ,
Removal of income tax on dividends in the hands of receiver
Your Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year ,
Removal of income tax on dividends in the hands of receiver , Investors income tax on dividend
reduced to 12.5%
Multiple Choice Single Answer
Question How many members are appointed by the central government?
Correct Answer 2
Your Answer 2
Multiple Choice Multiple Answer
Question Which acts were amended to remove some of the hurdles to corporatisation and
demutualisation of stock exchanges?
Correct Answer SCRA , Depository Act
Your Answer SCRA , Depository Act
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate
in general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and
debenture holders Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision,
mission and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process
Decision making
Multiple Choice Multiple Answer
Question Which companies have eroded market capitalization by Rs20 000 crores?
Correct Answer Infosys , Satyam , Wipro
Your Answer Infosys , Satyam , Wipro
Multiple Choice Multiple Answer
Question What does SEBI do with its power ?
Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or
beneficiary owners , Investigate an acquirer
Your Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or
beneficiary owners , Investigate an acquirer
-3-
Capital Market_20
True/False
Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and
options if there is an underlying asset.
Correct Answer True
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Your Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Your Answer 4 times
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity
of the industry
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and Market risks
-4-
Capital Market_20
Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high
standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely
decision regarding sale and purchase of securities
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment
and interest rate risk
Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and
interest rate risk
Multiple Choice Single Answer
Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans
Your Answer 60% of its outstanding housing loans
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to
issue certificate of deposits.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Multiple Choice Multiple Answer
Question What is dematerialization ?
Correct Answer Physical certificates converted into electronic from , Credited into investors
account with his/ her DP
Your Answer Physical certificates converted into electronic from , Credited into investors
account with his/ her DP , Selling shares
Select The Blank
Question ________ is in the form of a usance promissory note payable after 45 days from the
date of issue.
Correct Answer Certificate of Deposit
Your Answer Certificate of Deposit
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question What is the amount of net worth accompany should have for opting for an IPO ?
Correct Answer 1 Crore
-5-
Capital Market_20
Your Answer 1 Crore
Select The Blank
Question The process of securitisation involves transfer of assets to a person specially created
called as ________.
Correct Answer Special purpose vehicle
Your Answer Special purpose vehicle
True/False
Question A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of
open ended schemes.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question What is a put option?
Correct Answer Right to sell
Your Answer Right to sell
True/False
Question Venture capital finance is risk finance for entrepreneurial growth oriented companies.
Correct Answer True
Your Answer True
-6-
Capital Market_21
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Who can change the composition of securities?
Correct Answer Fund manager
Your Answer Fund manager
True/False
Question Employee stock option scheme granted to the employee is transferable.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
Your Answer All the NBFC's must register with RBI , Without the registration certificate no
company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of
deposits
True/False
Question Transactions that involve substantial payment towards goodwill, brand equity or
intellectual property must be placed before the board of directors as per the recommendations of
the Kumarmangalam Birla report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Deposits can be accepted for a maximum period of :Correct Answer 5 years
Your Answer 10 years
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Single Answer
Question Since when have the Indian Stock markets risen ?
Correct Answer 37775
Your Answer 37775
Multiple Choice Single Answer
Question In the wake of boom of which sector the Indian mutual fund launched various sector
specific schemes?
Correct Answer Software
Your Answer Software
Select The Blank
-1-
Capital Market_21
Question In 2001 a case of rigging and short selling based insider trading was noticed in the
case of proposed merger of ________.
Correct Answer UTI Bank with GTB
Your Answer OBC with GTB
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Select The Blank
Question ________ are a kind of portfolio schemes.
Correct Answer Mutual funds
Your Answer Mutual funds
Multiple Choice Single Answer
Question What is equipment leasing ?
Correct Answer Contractual agreement where the lessor of equipment transfers the right to use
the equipment to the lessee
Your Answer Contractual agreement where the lessor of equipment transfers the right to use
the equipment to the lessee
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Overall economic condition , Demand and supply capital , Degree of popularity
of the industry
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
True/False
Question Mergers and amalgamations of companies are also covered under the SEBI
regulations 1997.
Correct Answer False
Your Answer False
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
True/False
Question Constant change would be one of the reasons for failure of corporate governance.
Correct Answer True
Your Answer False
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
True/False
Question The company opting for an IPO should have net worth of at least Rs 1 crore in each
of the preceding two years.
Correct Answer True
-2-
Capital Market_21
Your Answer False
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository ,
Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on
exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository ,
Maintain the investor's holdings in an electronic form , Effect settlement of securities traded on
exchanges
Multiple Choice Multiple Answer
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity , Must disclose
investment strategy
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
Match The Following
Question Correct Answer Your Answer
Castrol FY 2003 - 03 Dividend Rs145 crores FY 2003 - 03 Dividend Rs145 crores
MS Verma committee Dual Flotation Dual Flotation
Hero Honda FY 2003 - 03 Dividend Rs187 crores FY 2003 - 03 Dividend Rs187 crores
VSNL FY 2003 - 03 Dividend Rs172 crores FY 2003 - 03 Dividend Rs172 crores
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Multiple Answer
Question What is dematerialization ?
Correct Answer Credited into investors account with his/ her DP , Physical certificates
converted into electronic from
Your Answer Physical certificates converted into electronic from , Credited into investors
account with his/ her DP
Select The Blank
Question No mutual fund under all its schemes should own more than ________ of any
company's paid up capital carrying voting rights.
Correct Answer 0.1
-3-
Capital Market_21
Your Answer 0.3
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the
net , Operate in stock market privately through home or office
Your Answer Screen based trading in place of traditional ring , Communication through the net ,
Operate in stock market privately through home or office
Multiple Choice Single Answer
Question If the unlisted company does not satisfy the criteria of net worth profitability and issue
size how can it come out with a public issue?
Correct Answer Through book building process
Your Answer Through book building process
Multiple Choice Single Answer
Question Which is the favorite destination for venture funds?
Correct Answer BPO
Your Answer BPO
Multiple Choice Multiple Answer
Question Who issues participatory notes?
Correct Answer Associates of India based foreign brokerages , Domestic institutional
brokerages
Your Answer Associates of India based foreign brokerages , Domestic institutional brokerages
Multiple Choice Single Answer
Question For a VCF to be registered with SEBI what is the registration fee ?
Correct Answer 5 lacs
Your Answer 5 lacs
Match The Following
Question Correct Answer Your Answer
Ready forward transaction (Repo) Interbank sale and repurchase of securities Interbank sale and
repurchase of securities
Commercial paper Means of raising short term debt by companies Means of raising short term
debt by companies
STCI Operations in call money markets Operations in call money markets
Market stabilsation Bonds Launched in fiscal 2004-05 Launched in fiscal 2004-05
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and
commercial paper.
Correct Answer False
Your Answer False
-4-
Capital Market_21
Multiple Choice Multiple Answer
Question What are the norms for Approval of Housing finance companies by NHB?
Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
Your Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of
auditors
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Your Answer The Asset management company shall not launch any scheme till approval of
trustees and offer document has been filed with the board , With each offer document pay filing
fees , Offer document to contain disclosures
Multiple Choice Single Answer
Question What is the limit for aggregate investment of FII's NRI's and OCB's?
Correct Answer 0.3
Your Answer 0.25
True/False
Question Acquisition finance, which provide funding for acquiring another company are often
closely held or fairly owned.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what amount is expected to
be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Select The Blank
Question The acquirer is required to make the PA within ________ working days of entering
into an agreement to acquire shares or deciding to acquire share's voting rights of target
company.
Correct Answer 4
Your Answer 4
Multiple Choice Single Answer
Question What is the objective of public announcement?
Correct Answer Ensure that the shareholders of the target company are aware of the exit
opportunity available to them
Your Answer Ensure that the shareholders of the target company are aware of the exit
opportunity available to them
True/False
Question A portfolio manager has to assure a guaranteed return to his client.
Correct Answer False
Your Answer False
-5-
Capital Market_21
True/False
Question If the credit rating is obtained from two different agencies in case of issue of debt
instruments, all the ratings need not be disclosed in the document.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Select The Blank
Question When one decides to have the shares in an electronic form one has to approach
________.
Correct Answer DP
Your Answer DP
-6-
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
________ is an international credit rating company.
Correct Answer
FITSCH
Your Answer
Crisil
True/False
Question
The acquirer is required to appoint a merchant banker before making
a PA.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Hire Purchase transactions are liable to ________.
Correct Answer
Sales tax
Your Answer
Sales tax
Multiple Choice Single Answer
Question
What do you understand by capital markets ?
Correct Answer
Market for long term funds and investments in long term
instruments
Your Answer
Market for long term funds and investments in long term
instruments
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Multiple Choice Single Answer
Question
What is Discretionary Portfolio management service ?
Correct Answer
Client gives his money for investment to the portfolio
manager and leaves it to him to make all the investment decisions.
Your Answer
Client gives his money for investment to the portfolio manager
and leaves it to him to make all the investment decisions.
True/False
Question
Depositary facilitates transfers without having to handle money.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer
US$14 bn
Your Answer
US$14 bn
Multiple Choice Single Answer
Question
As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer
15000 crores
Your Answer
15000 crores
Multiple Choice Multiple Answer
Question
The features of mutual Fund are :Correct Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
Your Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
True/False
Question
If the credit rating is obtained from two different agencies in
case of issue of debt instruments, all the ratings need not be disclosed in the
document.
Correct Answer
False
Your Answer
True
Select The Blank
Question
As per SEBI regulations, PMS must not be involved in any litigation
connected with ________.
Correct Answ er
Securities markets
Your Answer
Clients
Multiple Choice Multiple Answer
Question
What qualities do the merchant bankers need to possess?
Correct Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Your Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question
Describ e the stock lending mechanism:Correct Answer
Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender is assured of
getting equivalent the relevant securities by NSSCL on the settlement date ,
Lender gets benefit of reasonable return called lending fee
Your Answer
Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender gets benefit of
reasonable return called lending fee
Multiple Choice Multiple Answer
Question
What are the limitations of refinance facility?
Correct Answer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Your A nswer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question
The process of share buy back must be completed within what period
from the date of passing the resolution?
Correct Answer
12 months
Your Answer
12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific
Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign
currency deal
Multiple Choice Single Answer
Question
When did the trading in foreign currency options start in India?
Correct Answer
37809
Your Answer
37829
Multiple Choice Single Answer
Question
What is the main objective of credit appraisal ?
Correct Answer
Assess the repayment capacity
Your Answer
Assess the age of the person borrowing
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their
trustees and asset management companies.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In the L & T reliance case, Reliance was fined ________.
Correct Answer
Rs. 5 lacs
Your Answer
Rs. 5 lacs
Select The Blank
Question
Recently many banks have started issuing ________ which could also
be used as a debit card.
Correct Answer
ATM card
Your Answer
ATM card
Select The Blank
Question
A ________ means any persons connected with a company and who is
reasonably having access to unpublished price sensitive information.
Correct Answer
Insider
Your Answer
Insider
Select The Blank
Question
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning
surplus cash to the shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy
back is done by the shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question
The public cannot give their complaints or comments on the issuer
company or others connected with the issue to SEBI.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer
1
Your Answer
1
True/False
Question
A portfolio manager need not necessarily sell or purchase
securities separately for each client.
Correct Answer
False
Your Answer
True
True/False
Question
RBI has permitted all commercial banks, financial institutions and
large corporates to issue certificate of deposits.
Correct Answer
False
Your Answer
True
True/False
Question
Book building is a process whereby the price is determined on the
basis of actual demand as evident from the offers given by the various
institutional investors and underwriters.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
What is the system of rolling settlement prevalent in the USA ?
Correct Answer
Transaction + 3
Your Answer
Transaction + 3
Multiple Choice Single Answer
Question
What is the most important objective for an investor?
Correct Answer
Protection of the value of the investment
Your Answer
Profit maximization
Multiple Choice Multiple Answer
Question
The following are some of the regulations governing the NBFC's
issued by RBI :Correct Answer
All the NBFC's must register with RBI , Without the
registration certificate no company can undertake activities of NBFC , All
companies must be liquid assets equal to 15% of deposits
Your Answer
All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be
liquid assets equal to 15% of deposits
Multiple Choice Single Answer
Question
What do you mean by venture capital?
Correct Answer
Providing seed, start up capital and first stage financing
Your Answer
Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital
markets?
Correct Answer
Establishment of NSE
Your Answer
Opening of Indian Capital Markets to FII's
Select The Blank
Question
The continuing growth in ________ was one of the factors that
contributed to the growth of credit rating.
Correct Answer
Informa tion technology
Your Answer
Information technology
Select The Blank
Question
In case of a public issue by a listed company participation by
promoters in the proposed issues in excess of the required minimum percentage
shall also be looked in for a period of ________.
Correct Answer
1 year
Your Answer
3 years
True/False
Question
A portfolio manager has to assure a guaranteed return to his
client.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
Describe E-trading :Correct Answer
Screen based trading
Communication through the net , Operate
or office
Your Answer
Screen based trading in
Communication through the net , Operate
or office
in place of traditional ring ,
in stock market privately through home
place of traditional ring ,
in stock market privately through home
Select The Blank
Question
The Kumarmangalam Birla report stressed on the importance of
________ with respect to AGM's.
Correct Answer
Proxy voting / ballot systems
Your Answer
Proxy voting / ballot systems
True/False
Question
The SEBI guidelines do not make it mandatory for the securities
purchased under the buy back arrangement to be extinguished and physically
destroyed.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
What are the SEBI guidelines for issue of debt instruments?
Correct Answer
Credit rating , Maturity more than 18 months appoint
debenture trustee , Debenture redemption reserve to be created
Your Answer
Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Multiple Choice Single Answer
Question
Which company was responsible for spreading the equity culture in
India ?
Correct Answer
Reliance Industries
Your Answer
Reliance Industries
Multiple Choice Multiple Answer
Question
Describe in brief the SEBI regulations for venture capital funds :Correct Answer
VCF's must be registered , Cannot carry out another activity
, Must disclose investment strategy
Your Answer
VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
Multiple Choice Single Answer
Question
What is the minimum number of days for which the bid should remain
open in book building?
Correct Answer
5 days
Your Answer
7 days
Multiple Choice Single Answer
Question
As per RBI regulation, bank borrowings should not exceed how many
times of the net owned funds?
Correct Answer
4 times
Your Answer
4 times
Select The Blank
Question
With the introduction of ________ accounts the complaints abo ut
allotment have surely gone down.
Correct Answer
DEMAT
Your Answer
DEMAT
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
________ is an international credit rating company.
Correct Answer
FITSCH
Your Answer
Crisil
True/False
Question
The acquirer is required to appoint a merchant banker before making
a PA.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Hire Purchase transactions are liable to ________.
Correct Answer
Sales tax
Your Answer
Sales tax
Multiple Choice Single Answer
Question
What do you understand by capital markets ?
Correct Answer
Market for long term funds and investments in long term
instruments
Your Answer
Market for long term funds and investments in long term
instruments
Multiple Choice Multiple Answer
Question
What must be the quality of a good portfolio manager?
Correct Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Your Answer
Sound General knowledge , Analytical ability and marketing
skills , Experience
Multiple Choice Single Answer
Question
What is Discretionary Portfolio management service ?
Correct Answer
Client gives his money for investment to the portfolio
manager and leaves it to him to make all the investment decisions.
Your Answer
Client gives his money for investment to the portfolio manager
and leaves it to him to make all the investment decisions.
True/False
Question
Depositary facilitates transfers without having to handle money.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer
US$14 bn
Your Answer
US$14 bn
Multiple Choice Single Answer
Question
As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer
15000 crores
Your Answer
15000 crores
Multiple Choice Multiple Answer
Question
The features of mutual Fund are :Correct Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
Your Answer
A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
True/False
Question
If the credit rating is obtained from two different agencies in
case of issue of debt instruments, all the ratings need not be disclosed in the
document.
Correct Answer
False
Your Answer
True
Select The Blank
Question
As per SEBI regulations, PMS must not be involved in any litigation
connected with ________.
Correct Answ er
Securities markets
Your Answer
Clients
Multiple Choice Multiple Answer
Question
What qualities do the merchant bankers need to possess?
Correct Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Your Answer
Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question
Describ e the stock lending mechanism:Correct Answer
Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender is assured of
getting equivalent the relevant securities by NSSCL on the settlement date ,
Lender gets benefit of reasonable return called lending fee
Your Answer
Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender gets benefit of
reasonable return called lending fee
Multiple Choice Multiple Answer
Question
What are the limitations of refinance facility?
Correct Answer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Your A nswer
Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question
The process of share buy back must be completed within what period
from the date of passing the resolution?
Correct Answer
12 months
Your Answer
12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India Specific
Funds
0.57 FII current free float sensex company FII free float stock NIFTY companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC foreign
currency deal
Multiple Choice Single Answer
Question
When did the trading in foreign currency options start in India?
Correct Answer
37809
Your Answer
37829
Multiple Choice Single Answer
Question
What is the main objective of credit appraisal ?
Correct Answer
Assess the repayment capacity
Your Answer
Assess the age of the person borrowing
True/False
Question
SEBI cannot investigate the affairs of mutual funds and their
trustees and asset management companies.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In the L & T reliance case, Reliance was fined ________.
Correct Answer
Rs. 5 lacs
Your Answer
Rs. 5 lacs
Select The Blank
Question
Recently many banks have started issuing ________ which could also
be used as a debit card.
Correct Answer
ATM card
Your Answer
ATM card
Select The Blank
Question
A ________ means any persons connected with a company and who is
reasonably having access to unpublished price sensitive information.
Correct Answer
Insider
Your Answer
Insider
Select The Blank
Question
SENSEX is calculated using ________ method.
Correct Answer
Market capitalization
Your Answer
Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders Returning
surplus cash to the shareholders
Dutch Auction Price of the Buy back is done by the shareholders Price of the Buy
back is done by the shareholders
Open market purchases No minimum price stipulation No minimum price stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question
The public cannot give their complaints or comments on the issuer
company or others connected with the issue to SEBI.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer
1
Your Answer
1
True/False
Question
A portfolio manager need not necessarily sell or purchase
securities separately for each client.
Correct Answer
False
Your Answer
True
True/False
Question
RBI has permitted all commercial banks, financial institutions and
large corporates to issue certificate of deposits.
Correct Answer
False
Your Answer
True
True/False
Question
Book building is a process whereby the price is determined on the
basis of actual demand as evident from the offers given by the various
institutional investors and underwriters.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
What is the system of rolling settlement prevalent in the USA ?
Correct Answer
Transaction + 3
Your Answer
Transaction + 3
Multiple Choice Single Answer
Question
What is the most important objective for an investor?
Correct Answer
Protection of the value of the investment
Your Answer
Profit maximization
Multiple Choice Multiple Answer
Question
The following are some of the regulations governing the NBFC's
issued by RBI :Correct Answer
All the NBFC's must register with RBI , Without the
registration certificate no company can undertake activities of NBFC , All
companies must be liquid assets equal to 15% of deposits
Your Answer
All the NBFC's must register with RBI , Without the registration
certificate no company can undertake activities of NBFC , All companies must be
liquid assets equal to 15% of deposits
Multiple Choice Single Answer
Question
What do you mean by venture capital?
Correct Answer
Providing seed, start up capital and first stage financing
Your Answer
Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question
What was the turning point in the working of Indian capital
markets?
Correct Answer
Establishment of NSE
Your Answer
Opening of Indian Capital Markets to FII's
Select The Blank
Question
The continuing growth in ________ was one of the factors that
contributed to the growth of credit rating.
Correct Answer
Informa tion technology
Your Answer
Information technology
Select The Blank
Question
In case of a public issue by a listed company participation by
promoters in the proposed issues in excess of the required minimum percentage
shall also be looked in for a period of ________.
Correct Answer
1 year
Your Answer
3 years
True/False
Question
A portfolio manager has to assure a guaranteed return to his
client.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
Describe E-trading :Correct Answer
Screen based trading
Communication through the net , Operate
or office
Your Answer
Screen based trading in
Communication through the net , Operate
or office
in place of traditional ring ,
in stock market privately through home
place of traditional ring ,
in stock market privately through home
Select The Blank
Question
The Kumarmangalam Birla report stressed on the importance of
________ with respect to AGM's.
Correct Answer
Proxy voting / ballot systems
Your Answer
Proxy voting / ballot systems
True/False
Question
The SEBI guidelines do not make it mandatory for the securities
purchased under the buy back arrangement to be extinguished and physically
destroyed.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
What are the SEBI guidelines for issue of debt instruments?
Correct Answer
Credit rating , Maturity more than 18 months appoint
debenture trustee , Debenture redemption reserve to be created
Your Answer
Credit rating , Maturity more than 18 months appoint debenture
trustee , Debenture redemption reserve to be created
Multiple Choice Single Answer
Question
Which company was responsible for spreading the equity culture in
India ?
Correct Answer
Reliance Industries
Your Answer
Reliance Industries
Multiple Choice Multiple Answer
Question
Describe in brief the SEBI regulations for venture capital funds :Correct Answer
VCF's must be registered , Cannot carry out another activity
, Must disclose investment strategy
Your Answer
VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
Multiple Choice Single Answer
Question
What is the minimum number of days for which the bid should remain
open in book building?
Correct Answer
5 days
Your Answer
7 days
Multiple Choice Single Answer
Question
As per RBI regulation, bank borrowings should not exceed how many
times of the net owned funds?
Correct Answer
4 times
Your Answer
4 times
Select The Blank
Question
With the introduction of ________ accounts the complaints abo ut
allotment have surely gone down.
Correct Answer
DEMAT
Your Answer
DEMAT
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Information technology, communication and entertainment represent ________
stocks.
Correct Answer ICE
Your Answer ICE
True/False
Question The public cannot give their complaints or comments on the issuer company or
others connected with the issue to SEBI.
Correct Answer False
Your Answer True
True/False
Question In order to dematerialize the securities one has to fill DRF.
Correct Answer True
Your Answer True
Select The Blank
Question In case of an IPO of any security of issue size of Rs________ or more security shall
be issued only in demat form.
Correct Answer 10 crores
Your Answer 10 crores
Multiple Choice Multiple Answer
Question What are the obligations of a company in a share buy back?
Correct Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Your Answer The offer letter should contain true, factual and material information and should
not be misleading. , The company must pay the consideration only by the way of cash , The
company should not issue any fresh securities including bonus shares till the date of the closure
of the offer.
Select The Blank
Question The DP opens investor account in the system and gives an account number also
known as ________.
Correct Answer BO ID
Your Answer BO ID
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how many times of the net
owned funds?
Correct Answer 4 times
Your Answer 4 times
Multiple Choice Multiple Answer
Question What are the factors that determine the value of a firm?
Correct Answer Degree of popularity of the industry , Overall economic condition , Demand
and supply capital
Your Answer Overall economic condition , Demand and supply capital , Degree of popularity of
the industry
Match The Following
Question Correct Answer Your Answer
Portfolio Collection of assets Collection of assets
Factors influencing portfolio decisions Business and Market risks Business and Market risks
Code of conduct- Portfolio Manager Observe high standard of integrity and fairness Observe high
standard of integrity and fairness
SEBI Regulations Portfolio Manager must fulfill the capital adequacy norms To make timely
decision regarding sale and purchase of securities
Multiple Choice Multiple Answer
Question What are the major factors influencing portfolio decisions?
Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment
and interest rate risk
Your Answer Investor characteristics , Liquidity needs and tax considerations , Investment and
interest rate risk
Multiple Choice Single Answer
Question The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans
Your Answer 60% of its outstanding housing loans
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Which Act defines the term Stock Exchange?
Correct Answer Securities Contract Regulation Act
Your Answer Securities Contract Regulation Act
Multiple Choice Multiple Answer
Question What are the preconditions for trading on the net?
Correct Answer A net connection , A registered account with a broker and a demat account , Bank
payment gateway or online banking facility
Your Answer A registered account with a broker and a demat account , Bank payment gateway or online
banking facility , A net connection
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term instruments
Your Answer Market for long term funds and investments in long term instruments
True/False
Question Sweat equity shares are shares issued by company to employees or directors to discount.
Correct Answer True
Your Answer True
True/False
Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under various SEBI regulations how many brokers suspended?
Correct Answer 8
Your Answer 8
Multiple Choice Multiple Answer
Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees
and offer document has been filed with the board , With each offer document pay filing fees , Offer
document to contain disclosures
Your Answer With each offer document pay filing fees , Offer document to contain disclosures
Match The Following
Question Correct Answer Your Answer
Charge card Form of plastic money Member establishment
Warning Bulletin Authenticity test Authenticity test
Credit information company SBI, HDFC bank SBI, HDFC bank
Credit card issuing company Visa/Master Card Visa/Master Card
Multiple Choice Single Answer
Question Who forms the Asset management company (AMC)?
Correct Answer Group of trustees
Your Answer Group of trustees
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm
allot meant in public issues and rights issues etc?
Correct Answer Regulation (3) 4
Your Answer Regulation (3) 4
True/False
Question Book building is a process whereby the price is determined on the basis of actual demand as
evident from the offers given by the various institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities?
Correct Answer Call/notice money
Your Answer Call/notice money
Multiple Choice Multiple Answer
Question What is the information to be placed before the board of directors as per the Kumarmangalam
report?
Correct Answer Annual operating plans , Capital budgets , Quarterly results
Your Answer Annual operating plans , Capital budgets , Quarterly results
True/False
Question Bidder cannot revise his bids.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question What are ESOP's ?
Correct Answer One of the methods of giving part ownership of the company to the employees ,
Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the
prices of the shares
Your Answer Is a reward and linked with the increase in the prices of the shares , One of the methods of
giving part ownership of the company to the employees , Employees can take part in the prosperity of the
company
Match The Following
Question Correct Answer Your Answer
Shareholders Should effectively participate in general body meetings Should effectively participate in
general body meetings
Objective of Audit committee Look into defaults to depositors creditors shareholders and debenture holders
Look into defaults to depositors creditors shareholders and debenture holders
Reasons of failures of corporate governance in spite of norms Superficial commitment to vision, mission
and values Superficial commitment to vision, mission and values
Functions of Chief Executive, ED, Managers Assisting the board in decision making process Assisting the
board in decision making process
Multiple Choice Multiple Answer
Question How does SEBI react to the Scams in participatory notes issuance?
Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB
controlled by Indians promoters
Your Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled
by Indians promoters
Select The Blank
Question While structuring the deal the entrepreneur seeks ________.
Correct Answer Voting control
Your Answer Goodwill
True/False
Question DRR is treated as part of general reserve for consideration of bonus issue of proposals.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing skills , Experience
Multiple Choice Multiple Answer
Question What precautions are to be taken with respect to delivery instruction slip ?
Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
Your Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in
target account id
True/False
Question Reliance group has added over 10000 crores in market capital.
Correct Answer True
Your Answer False
Select The Blank
Question An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such
additional shares as would entitle him to exercise more than ________ of voting rights in an financial year.
Correct Answer 0.05
Your Answer 0.2
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer FITSCH
Select The Blank
Question The appointment of a ________ is mandatory in a offer process.
Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is the eligibility norm for an unlisted company for making an public issue as regards to
its net worth?
Correct Answer Net worth of the company should not be less than 1 crore
Your Answer Net worth of the company should not be less than 1 crore
Select The Blank
Question The portfolio manager has to place the funds of all their clients in a separate account to be
maintained by them with ________.
Correct Answer Scheduled Commercial Bank
Your Answer Scheduled Commercial Bank
Multiple Choice Single Answer
Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker
Your Answer Merchant Banker
Multiple Choice Single Answer
Question What is a more contemporary definition of corporate governance?
Correct Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Your Answer Corporate Governance is all about promoting corporate fairness, transparency and
accountability
Multiple Choice Multiple Answer
Question What information is required to be furnished to stock exchanges in compliance of SEBI
regulations 1997 ?
Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days
before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days , Annual disclosures
Your Answer Any person holding more than 15% but less than 75% voting rights shall be disclosed with
2 days
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Select The Blank
Question The merger of GTB and UTI was called off due to intervention of ________
Correct Answer SEBI and RBI
Your Answer SEBI and RBI
Select The Blank
Question The Merchant banker will incorporate in the letter of offer the comments made by SEBI and
then send within ________ days from the date of PA to all shareholders whose names appear in the register
of the company.
Correct Answer 45
Your Answer 45
Multiple Choice Multiple Answer
Question When can an offer be withdrawn?
Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in
opinion of board
Your Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion
of board
True/False
Question The public cannot give their complaints or comments on the issuer company or others
connected with the issue to SEBI.
Correct Answer False
Your Answer False
True/False
Question SEBI has taken an action to ban on Badla.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost
Your Answer Reduction in paperless work , Reduction in transaction cost , Holds funds in an account
Multiple Choice Multiple Answer
Question What are the facilities offered by NSDL?
Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
Your Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the
investor's holdings in an electronic form , Effect settlement of securities traded on exchanges
True/False
Question RBI has permitted all commercial banks, financial institutions and large corporates to issue
certificate of deposits.
Correct Answer False
Your Answer True
Select The Blank
Question Directors should not be member of more than________ committees.
Correct Answer 10
Your Answer 10
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital markets?
Correct Answer Establishment of NSE
Your Answer Establishment of NSE
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase securities separately for each client.
Correct Answer False
Your Answer False
Capital Market_26
CM LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is an international credit rating company.
Correct Answer FITSCH
Your Answer Crisil
True/False
Question The acquirer is required to appoint a merchant banker before
making a PA.
Correct Answer True
Your Answer True
Select The Blank
Question Hire Purchase transactions are liable to ________.
Correct Answer Sales tax
Your Answer Sales tax
Multiple Choice Single Answer
Question What do you understand by capital markets ?
Correct Answer Market for long term funds and investments in long term
instruments
Your Answer Market for long term funds and investments in long term
instruments
Multiple Choice Multiple Answer
Question What must be the quality of a good portfolio manager?
Correct Answer Sound General knowledge , Analytical ability and
marketing skills , Experience
Your Answer Sound General knowledge , Analytical ability and marketing
skills , Experience
Multiple Choice Single Answer
Question What is Discretionary Portfolio management service ?
Correct Answer Client gives his money for investment to the portfolio
manager and leaves it to him to make all the investment decisions.
Your Answer Client gives his money for investment to the portfolio
manager and leaves it to him to make all the investment decisions.
True/False
Question Depositary facilitates transfers without having to handle money.
Correct Answer False
Page 1
Capital Market_26
Your Answer True
Multiple Choice Single Answer
Question What is the amount invested by the FII's in the Indian Capital
market?
Correct Answer US$14 bn
Your Answer US$14 bn
Multiple Choice Single Answer
Question As per the reports and the letter of intent filed with SEBI, what
amount is expected to be paid from the primary market during this year?
Correct Answer 15000 crores
Your Answer 15000 crores
Multiple Choice Multiple Answer
Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number
of investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
Your Answer A trust that pools in savings and funds from large number of
investors who have common financial goal , Issue units to investor which
represent right in assets , Investments in mutual funds may be in the form of
stock, bond, money market securities
True/False
Question If the credit rating is obtained from two different agencies in case
of issue of debt instruments, all the ratings need not be disclosed in the
document.
Correct Answer False
Your Answer True
Select The Blank
Question As per SEBI regulations, PMS must not be involved in any
litigation connected with ________.
Correct Answer Securities markets
Your Answer Clients
Multiple Choice Multiple Answer
Question What qualities do the merchant bankers need to possess?
Correct Answer Knowledge and information about various aspects of
capital markets , Ability to evaluate and analyze , Update the knowledge
Page 2
Capital Market_26
Your Answer Knowledge and information about various aspects of capital
markets , Ability to evaluate and analyze , Update the knowledge
Multiple Choice Multiple Answer
Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other
who wishes to borrow securities at market related rates , Lender is assured of
getting equivalent the relevant securities by NSSCL on the settlement date ,
Lender gets benefit of reasonable return called lending fee
Your Answer Involves two parties one who is willing to lend and other who
wishes to borrow securities at market related rates , Lender gets benefit of
reasonable return called lending fee
Multiple Choice Multiple Answer
Question What are the limitations of refinance facility?
Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total
Loan funds of HFC's , Not to exceed 15 % of NOF of NHB
Your Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan
funds of HFC's , Not to exceed 15 % of NOF of NHB
Multiple Choice Single Answer
Question The process of share buy back must be completed within what
period from the date of passing the resolution?
Correct Answer 12 months
Your Answer 12 months
Match The Following
Question Correct Answer Your Answer
10 HDFC foreign currency deal Global investors pumping funds in India
Specific Funds
0.57 FII current free float sensex company FII free float stock NIFTY
companies
0.45 FII free float stock NIFTY companies FII's total free float sex and NIFTY
$ 476 mn Global investors pumping funds in India Specific Funds HDFC
foreign currency deal
Multiple Choice Single Answer
Page 3
Capital Market_26
Question When did the trading in foreign currency options start in India?
Correct Answer 37809
Your Answer 37829
Multiple Choice Single Answer
Question What is the main objective of credit appraisal ?
Correct Answer Assess the repayment capacity
Your Answer Assess the age of the person borrowing
True/False
Question SEBI cannot investigate the affairs of mutual funds and their
trustees and asset management companies.
Correct Answer False
Your Answer False
Select The Blank
Question In the L & T reliance case, Reliance was fined ________.
Correct Answer Rs. 5 lacs
Your Answer Rs. 5 lacs
Select The Blank
Question Recently many banks have started issuing ________ which
could also be used as a debit card.
Correct Answer ATM card
Your Answer ATM card
Select The Blank
Question A ________ means any persons connected with a company and
who is reasonably having access to unpublished price sensitive information.
Correct Answer Insider
Your Answer Insider
Select The Blank
Question SENSEX is calculated using ________ method.
Correct Answer Market capitalization
Your Answer Weighted
Match The Following
Question Correct Answer Your Answer
Share buy back is a way of Returning surplus cash to the shareholders
Returning surplus cash to the shareholders
Page 4
Capital Market_26
Dutch Auction Price of the Buy back is done by the shareholders Price of the
Buy back is done by the shareholders
Open market purchases No minimum price stipulation No minimum price
stipulation
Companies holding more than 90% equity Can be delisted Can be delisted
True/False
Question The public cannot give their complaints or comments on the issuer
company or others connected with the issue to SEBI.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Under section 11 B of SEBI act how many issuers were debarred?
Correct Answer 1
Your Answer 1
True/False
Question A portfolio manager need not necessarily sell or purchase
securities separately for each client.
Correct Answer False
Your Answer True
True/False
Question RBI has permitted all commercial banks, financial institutions and
large corporates to issue certificate of deposits.
Correct Answer False
Your Answer True
True/False
Question Book building is a process whereby the price is determined on the
basis of actual demand as evident from the offers given by the various
institutional investors and underwriters.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the system of rolling settlement prevalent in the USA ?
Page 5
Capital Market_26
Correct Answer Transaction + 3
Your Answer Transaction + 3
Multiple Choice Single Answer
Question What is the most important objective for an investor?
Correct Answer Protection of the value of the investment
Your Answer Profit maximization
Multiple Choice Multiple Answer
Question The following are some of the regulations governing the NBFC's
issued by RBI :Correct Answer All the NBFC's must register with RBI , Without the
registration certificate no company can undertake activities of NBFC , All
companies must be liquid assets equal to 15% of deposits
Your Answer All the NBFC's must register with RBI , Without the
registration certificate no company can undertake activities of NBFC , All
companies must be liquid assets equal to 15% of deposits
Multiple Choice Single Answer
Question What do you mean by venture capital?
Correct Answer Providing seed, start up capital and first stage financing
Your Answer Providing seed, start up capital and first stage financing
Multiple Choice Single Answer
Question What was the turning point in the working of Indian capital
markets?
Correct Answer Establishment of NSE
Your Answer Opening of Indian Capital Markets to FII's
Select The Blank
Question The continuing growth in ________ was one of the factors that
contributed to the growth of credit rating.
Correct Answer Information technology
Your Answer Information technology
Select The Blank
Question In case of a public issue by a listed company participation by
promoters in the proposed issues in excess of the required minimum
percentage shall also be looked in for a period of ________.
Correct Answer 1 year
Your Answer 3 years
Page 6
Capital Market_26
True/False
Question A portfolio manager has to assure a guaranteed return to his
client.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring ,
Communication through the net , Operate in stock market privately through
home or office
Your Answer Screen based trading in place of traditional ring ,
Communication through the net , Operate in stock market privately through
home or office
Select The Blank
Question The Kumarmangalam Birla report stressed on the importance of
________ with respect to AGM's.
Correct Answer Proxy voting / ballot systems
Your Answer Proxy voting / ballot systems
True/False
Question The SEBI guidelines do not make it mandatory for the securities
purchased under the buy back arrangement to be extinguished and physically
destroyed.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the SEBI guidelines for issue of debt instruments?
Correct Answer Credit rating , Maturity more than 18 months appoint
debenture trustee , Debenture redemption reserve to be created
Your Answer Credit rating , Maturity more than 18 months appoint
debenture trustee , Debenture redemption reserve to be created
Multiple Choice Single Answer
Question Which company was responsible for spreading the equity culture
in India ?
Correct Answer Reliance Industries
Your Answer Reliance Industries
Multiple Choice Multiple Answer
Page 7
Capital Market_26
Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer VCF's must be registered , Cannot carry out another
activity , Must disclose investment strategy
Your Answer VCF's must be registered , Cannot carry out another activity ,
Must disclose investment strategy
Multiple Choice Single Answer
Question What is the minimum number of days for which the bid should
remain open in book building?
Correct Answer 5 days
Your Answer 7 days
Multiple Choice Single Answer
Question As per RBI regulation, bank borrowings should not exceed how
many times of the net owned funds?
Correct Answer 4 times
Your Answer 4 times
Select The Blank
Question With the introduction of ________ accounts the complaints
about allotment have surely gone down.
Correct Answer DEMAT
Your Answer DEMAT
Page 8
ASSIGNMENTS
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
The Shipping Credit and Investment Company of India Ltd. has
changed its name to ________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer
SCICI Ltd
Multiple Choice Multiple Answer
Question
IFC provides financial assistance :Correct Answer Through loans , Through purchase of shares , For economic
development
Your Answer
Largely as aid , Through loans
Select The Blank
Question
Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer
Six months or less
Multiple Choice Multiple Answer
Question
From time to time RBI has issued :Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds
Your Answer
Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds
Multiple Choice Multiple Answer
Question
R B I issues currency notes against the security of:Correct Answer Gold bullion , Foreign securities , GOI securities
Your Answer
Gold bullion , Foreign securities , GOI securities
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
True/False
Wholesale Banking
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ are buy and hold investors and almost never
trade on their investments.
Correct Answer Provident Funds
Your Answer
Mutual Funds
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
Multiple Choice Multiple Answer
Question
In case of a Life policy it is possible to withdraw from the
obligation to contribute further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Your Answer
Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Multiple Choice Multiple Answer
Question
IDA lends to poor countries : Correct Answer By lending at 0% interest. , For periods up to ten years , By
borrowing from IBRD
Your Answer
By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Multiple Answer
Question
Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer
Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Single Answer
Question
Treasury bills are issued by :Correct Answer RBI
Your Answer
RBI
True/False
Question
The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer
True
True/False
Question
No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder
is contained in :-
Correct Answer SGL pass book
Your Answer
SGL pass book
Multiple Choice Single Answer
Question
The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer
Indigenous bankers
Multiple Choice Single Answer
Question
SIDCs & SIICs are under the control of :Correct Answer State Governments
Your Answer
State Governments
True/False
Question
PFC has been persuading State Governments restructuring of
their power sector to make them viable.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Advances
Loans/cash credits
Loans/cash credits
Cash withdrawal facility
ATM
ATM
Remittances
MT/DD/TT/EFT
MT/DD/TT/EFT
Government business
Collection of taxes
Collection of taxes
Select The Blank
Question
GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer
Premium collected
Select The Blank
Question
The CRAFICARD recommended the establishment of
________.
Correct Answer NABARD
Your Answer
NABARD
Multiple Choice Multiple Answer
Question
The objective NEF Scheme of SIDBI is to provide equity support
to :Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
units in tiny & small scale sector
Your Answer
New Units in tiny Sector , New Units in Small Sector , Existing
units in tiny & small scale sector
Multiple Choice Single Answer
Question
Which of the following institution was set up as a subsidy of RBI
in 1964?
Correct Answer IDBI
Your Answer
IDBI
Select The Blank
Question
Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer
Post Offices
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Companies Act, 1956
Multiple Choice Single Answer
Question
Which one of the following is not a deposit account?
Correct Answer Cash Credit account
Your Answer
Cash Certificate
True/False
Question
CP is a usance promissory note hence it can be negotiated by
endorsement & delivery.
Correct Answer True
Your Answer
False
Select The Blank
Question
The ________ meet the long and medium term credit needs of
agriculture.
Correct Answer Land Development Banks
Your Answer
Regional Rural Banks
Multiple Choice Single Answer
Question
Zero Coupon Bonds are issued at a : Correct Answer Discount to face value
Your Answer
Discount to face value
True/False
Question
NABARD provides Refinance for Marketing of Crops.
Correct Answer True
Your Answer
False
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
Soft Loan Scheme for modernisation is provided by :Correct Answer IFCI , ICICI , SIDBI
Your Answer
ICICI
True/False
Question
In case of T-Bills potential investors have to put in competitive
bids.
Correct Answer True
Your Answer
True
Match The Following
Question
Development financial
institutions
Correct Answer
Your Answer
IFCI
IFCI
Organised sector
Banking System
Banking System
Unorganised sector
Indigenous banks
Indigenous banks
Mutual funds
UTI
UTI
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Instruments issued by DFIs and Banks carry :Correct Answer Highest credit ratings
Your Answer
Highest credit ratings
Multiple Choice Single Answer
Question
For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer
SIDF
True/False
Question
Amongst others, ICICI also provided long and medium term
loans or equity finance.
Correct Answer True
Your Answer
True
Select The Blank
Question
Interest on advances is generally calculated on ________
products.
Correct Answer Daily
Your Answer
Fortnightly
Select The Blank
Question
The ________ has been accredited by RBI as a Primary Dealer
in Governemt Securities.
Correct Answer STCI
Your Answer
GIC
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
SDR
Multiple Choice Single Answer
Question
Development Financial Institutions provide finance to the needy
Correct Answer Corporates & govt. institutions
Your Answer
Corporates & govt. institutions
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
SIDBI provides :Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer
Refinance , Rediscounting of Bills , Financial support to SSIDC
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Which of the following services is not provided by Commercial
banks?
Correct Answer Deposit Insurance
Your Answer
Deposit Insurance
Multiple Choice Single Answer
Question
IDBI has helped in the establishment of :Correct Answer EXIM Bank
Your Answer
IFCI
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
A Cheque is a Negotiable Instrument.
Correct Answer True
Your Answer
True/False
True
Question
State loans are much less liquid than GOI Securities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
True/False
Question
Development financial institutions primarily lend to Agriculture
sector.
Correct Answer False
Your Answer
False
True/False
Question
Banks do not invest in the GOI securities .
Correct Answer False
Your Answer
False
Select The Blank
Question
NABARDs Criteria for Refinance covers Technical ________ of
the project.
Correct Answer Feasibility
Your Answer
Feasibility
True/False
Question
IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer
True
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer
Planned Savings
Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances comprise of
:Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
Your Answer
Donations/Charity , Payments of Royalty
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
Power
Multiple Choice Single Answer
Question
A major part of the credit of SFCs went to :Correct Answer SSI units
Your Answer
SSI units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over one year
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
True/False
Question
A Bill of Exchange is negotiable.
Correct Answer True
Your Answer
True
Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer
Paid-up
Select The Blank
Question
The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer
Negotiation
True/False
Question
Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer True
Your Answer
True
Select The Blank
Question
The loans under________ are based on Poverty Reduction
Strategy Paper.
Correct Answer PRGF
Your Answer
PRGF
Multiple Choice Multiple Answer
Question
The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer
Marine insurance , Fire insurance , Miscellaneous
Multiple Choice Single Answer
Question
FIs can be classified into two categories depending on the basis
of incorporation and :Correct Answer Operation
Your Answer
Size
Multiple Choice Multiple Answer
Question
The main objective of ICICI was :-
Correct Answer To augment export finance in India , To channelise World
Bank's funds to industries in India , To help in building up a
Capital Market in India
Your Answer
To augment export finance in India , To help in building up a
Capital Market in India , To aid Rural Development in India
Multiple Choice Single Answer
Question
SIDCs & SIICs give loans ,guarantees & : Correct Answer Lease finance
Your Answer
Lease finance
Multiple Choice Single Answer
Question
Commercial Papers are issued by :Correct Answer Corporates
Your Answer
Corporates
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
True/False
Question
Gramin banks are State Owned Banks.
Correct Answer True
Your Answer
False
True/False
Question
NIDHIS are Trading Organisations.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
Corporate Debentures are :Correct Answer Long term debt instruments
Your Answer
Long term debt instruments
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Correct Answer
Your Answer
Largest borrower in the
world
IBRD
IBRD
International Monetary
Cooperation
IMF
IMF
Prevention of crises
CCL
CCL
Political insurance
MIGA
MIGA
Multiple Choice Single Answer
Question
The apex institution in the field of Industrial Development is :Correct Answer IDBI
Your Answer
IDBI
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year
:Correct Answer 1965
Your Answer
1965
Select The Blank
Question
Development financial institutions have been established to
cater to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer
Long term financial needs
Select The Blank
Question
The ________ was set up to help corrections in BOP
maladjustments.
Correct Answer IMF
Your Answer
UNO
Multiple Choice Multiple Answer
Question
A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power , Drawing power
Multiple Choice Multiple Answer
Question
Functions of R.O. of a bank include :Correct Answer Inspection/audit , Control on branches , Grant loans/advances
Your Answer
Control on branches , Grant loans/advances , Pay interest on
deposits
Multiple Choice Single Answer
Question
IDBI introduced Automatic Refinance Scheme in the year :Correct Answer 1978
Your Answer
1975
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
EXIM bank
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Match The Following
Question
Correct Answer
Your Answer
Aquaculture ,Brackish
Water
Fisheries
Fisheries
Ploughing, weeding,
transplantation
Seasonal Agricultural
Operations
Irrigation & Drainage
Market Yards, Storage & Agricultural Marketing
Warehousing
Agricultural Marketing
Hill ,Tribal Area
development
Area Development
Area Development
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
NABARD provides short term refinance for procurement
activities also.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Tourism promotes :Correct Answer Credit Card Business , International remittances , Travellers'
Cheques
Your Answer
Credit Card Business , International remittances , Travellers'
Cheques
True/False
Question
HDFC was set up by NHB.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
IMF articles were amended in 1978 to legalise the :Correct Answer Floating exchange rates
Your Answer
Special drawing rights
Select The Blank
Question
Syndication involves ________ sanction.
Correct Answer In principle
Your Answer
In principle
Multiple Choice Single Answer
Question
The organised financial system includes :Correct Answer Commercial banks
Your Answer
Commercial banks
Match The Following
Question
Correct Answer
Your Answer
CRR
Primary reserve
requirement
Prevention of speculative
hoarding in
Bankers Bank
Controlling the reserves of Controlling the reserves of
commercial banks
commercial banks
Exchange control
FEMA
FEMA
OMO
Government securities
Secondary reserve
requirement
Multiple Choice Multiple Answer
Question
The prominent Bond issuing PSU are :Correct Answer MTNL , NTPC , SAIL
Your Answer
MTNL , NTPC , SAIL
Select The Blank
Question
The Premium of ________ is obtained through obligatory
reinsurance premium.
Correct Answer GIC
Your Answer
GIC
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
Development Financial institutions include :Correct Answer State financial institutions
Your Answer
State financial institutions
Match The Following
Question
Correct Answer
Your Answer
Money Market
Instruments
CP, T- Bills
CP, T- Bills
Negotaible Instruments
Bills of exchange
,Cheques
Bills of exchange
,Cheques
GOI securities
ZCB, ILBonds
ZCB, ILBonds
Long Term Debt
instruments
PSU Bonds
PSU Bonds
Select The Blank
Question
NABARD took over the functions of ACD, RPCC of RBI &
________.
Correct Answer ARDC
Your Answer
ARDC
Select The Blank
Question
The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer
Rate of interest
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
True/False
Question
Under open market operation RBI conducts buying /selling
shares/debentures of blue chip companies.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Initial Quantum of resources of IMF were contributed by
members according to :Correct Answer Quotas fixed for members
Your Answer
Quotas fixed for members
Multiple Choice Single Answer
Question
The ultimate source of money in India is:Correct Answer RBI
Your Answer
RBI
Multiple Choice Multiple Answer
Question
ECGC Board comprises of Directors representing :Correct Answer Government , Banking/Insurance , Trade/Industry
Your Answer
Government
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder
is contained in :Correct Answer SGL pass book
Your Answer
SGL pass book
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Cash Book , Trial Balance , P/L statement
Multiple Choice Single Answer
Question
Size of the Quota depended upon :Correct Answer GNP
Your Answer
GNP
Multiple Choice Multiple Answer
Question
DICGC does not insure the deposits :Correct Answer Of foreign Governments , Of State Cooperative Banks , Of the
Central Government
Your Answer
Of foreign Governments , Of State Cooperative Banks , Of the
Central Government
Select The Blank
Question
Financial markets are the centres that provide facilities for
buying and selling of ________.
Correct Answer Financial claims and services
Your Answer
Goods and services
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Regional /Sectoral planning , Benchmark Surveys , Prefeasibility studies
Your Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
Select The Blank
Question
In a Bank, the investment decisions are taken at ________
level.
Correct Answer Head Office
Your Answer
Head Office
True/False
Question
The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
SFCs suffer from a very high ratio of: Correct Answer Overdues
Your Answer
Overdues
Multiple Choice Multiple Answer
Question
Functions of NIDHIs include :Correct Answer Accepting Deposits , Granting loans , Encourage thrift
Your Answer
Accepting Deposits , Granting loans , Speculation
Multiple Choice Multiple Answer
Question
R B I conducts monetary control by way of O M O in :-
Correct Answer Treasury bills , State /central Government Securities
Your Answer
Treasury bills , State /central Government Securities
Multiple Choice Single Answer
Question
The foreign currency account maintained by an authorised
dealer with its correspondent abroad is :Correct Answer Nostro Account
Your Answer
Nostro Account
Select The Blank
Question
Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer
Bulk investment
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Irrevocable
Multiple Choice Single Answer
Question
The primary sources of IMF resources are :Correct Answer Quotas
Your Answer
Quotas
Multiple Choice Multiple Answer
Question
The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer
Indigenous bankers
Multiple Choice Single Answer
Question
The first long term industrial financing corporation set up in the
country was :Correct Answer IFCI
Your Answer
IFCI
Select The Blank
Question
The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Single Answer
Question
One of the leading All India FI is :Correct Answer SIDBI
Your Answer
LIC
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer
True
True/False
Question
The overdraft facility is also known as Cash credit facility.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
RBI was established under the:Correct Answer RBI Act
Your Answer
RBI Act
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
True/False
Question
The currency notes issued by RBI are legal tender everywhere
in India without any limit.
Correct Answer True
Your Answer
False
Multiple Choice Multiple Answer
Question
Post Offices are popular for mobilizing small savings of the
public due to :Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer
Low returns , Wide network , Saftey of funds
Multiple Choice Multiple Answer
Question
Bonds issued by institutions through SPVs to execute
infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd
Your Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional
/Sectoral planning
Your Answer
Benchmark Surveys , Pre-feasibility studies , Regional
/Sectoral planning
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
Select The Blank
Question
The ________ is the apex institution in the field of foreign
trade in India.
Correct Answer EXIM bank
Your Answer
FEDAI
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
True
True/False
Question
NABARD does not provide Refinance for stocking &
distribution of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
True/False
Question
Power
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
False
Match The Following
Question
Insurance of all
employees of a Firm
Correct Answer
Your Answer
Group Insurance
Group Insurance
Premium Throughout Life Whole Life
Whole Life
Fixed Period Insurance
Endowment
Endowment
Insurance of ocean
Cargo
Marine Insurance
Marine Insurance
Select The Blank
Question
DFIs are the second largest issuer of ________ after the
Govt and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
Mortgage Loans are loans against property.
Correct Answer True
Your Answer
True
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Revocable
Multiple Choice Single Answer
Question
Liabilities of Insurance Cos are mostly :Correct Answer Long term
Your Answer
Long term
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0.05
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the
year :Correct Answer 1965
Your Answer
1975
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Banking Regulation Act,1949
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
The first development Bank of India, established in 1948 was
:Correct Answer IFCI
Your Answer
IFCI
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for
:Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over three years
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Audited Balance Sheet , Trial Balance , P/L statement
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Treasury Bills are issued by the :Correct Answer RBI
Your Answer
RBI
Multiple Choice Single Answer
Question
Account where lump sum investment is made for specific
period is :Correct Answer Term Deposit account
Your Answer
Term Deposit account
Multiple Choice Single Answer
Question
The apex institution in the field of foreign trade in India is :Correct Answer EXIM Bank
Your Answer
EXIM Bank
Multiple Choice Multiple Answer
Question
Basic Life insurance policies include :Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Lease or hire purchase finance , Consultancy & managerial
services , Rural credit activities
Select The Blank
Question
Syndication of Loans Globally does not involve any funds as
it is ________ activity.
Correct Answer Non-fund based
Your Answer
Non-fund based
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
EFF
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
Global Banking
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the
size of its ________.
Correct Answer Business
Your Answer
Business
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Correct Answer
Your Answer
Inter Bank Call Money
Markets
BRs, Call Money
Receipts
Currencies
Money Market
Instuments
CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market
Instruments
Shares
Shares
Debt Market Instruments GOI Securities ,Bonds
Shares
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low
income groups.
Correct Answer Weaker sections
Your Answer
Weaker sections
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables
member countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Select The Blank
Question
The repayment holiday period is also known as ________
period.
Correct Answer Moratorium
Your Answer
Moratorium
Multiple Choice Single Answer
Question
A non-scheduled bank does not deal in :Correct Answer Foreign Exchange
Your Answer
Foreign Exchange
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Public sector
Companies
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
SIDBI provides :Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer
Refinance , Rediscounting of Bills , Financial support to SSIDC
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Which of the following services is not provided by Commercial
banks?
Correct Answer Deposit Insurance
Your Answer
Deposit Insurance
Multiple Choice Single Answer
Question
IDBI has helped in the establishment of :Correct Answer EXIM Bank
Your Answer
IFCI
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
A Cheque is a Negotiable Instrument.
Correct Answer True
Your Answer
True
True/False
Question
State loans are much less liquid than GOI Securities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
True/False
Question
Development financial institutions primarily lend to Agriculture
sector.
Correct Answer False
Your Answer
False
True/False
Question
Banks do not invest in the GOI securities .
Correct Answer False
Your Answer
False
Select The Blank
Question
NABARDs Criteria for Refinance covers Technical ________ of
the project.
Correct Answer Feasibility
Your Answer
Feasibility
True/False
Question
IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer
True
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer
Planned Savings
Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances comprise of
:Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
Your Answer
Donations/Charity , Payments of Royalty
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
Power
Multiple Choice Single Answer
Question
A major part of the credit of SFCs went to :Correct Answer SSI units
Your Answer
SSI units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over one year
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
True/False
Question
A Bill of Exchange is negotiable.
Correct Answer True
Your Answer
True
Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer
Paid-up
Select The Blank
Question
The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer
Negotiation
True/False
Question
Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer True
Your Answer
True
Select The Blank
Question
The loans under________ are based on Poverty Reduction
Strategy Paper.
Correct Answer PRGF
Your Answer
PRGF
Multiple Choice Multiple Answer
Question
The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer
Marine insurance , Fire insurance , Miscellaneous
Multiple Choice Single Answer
Question
FIs can be classified into two categories depending on the basis
of incorporation and :Correct Answer Operation
Your Answer
Size
Multiple Choice Multiple Answer
Question
The main objective of ICICI was :Correct Answer To augment export finance in India , To channelise World
Bank's funds to industries in India , To help in building up a
Capital Market in India
Your Answer
To augment export finance in India , To help in building up a
Capital Market in India , To aid Rural Development in India
Multiple Choice Single Answer
Question
SIDCs & SIICs give loans ,guarantees & :Correct Answer Lease finance
Your Answer
Lease finance
Multiple Choice Single Answer
Question
Commercial Papers are issued by :Correct Answer Corporates
Your Answer
Corporates
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
True/False
Question
Gramin banks are State Owned Banks.
Correct Answer True
Your Answer
False
True/False
Question
NIDHIS are Trading Organisations.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
Corporate Debentures are :Correct Answer Long term debt instruments
Your Answer
Long term debt instruments
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Correct Answer
Your Answer
Largest borrower in the
world
IBRD
IBRD
International Monetary
Cooperation
IMF
IMF
Prevention of crises
CCL
CCL
Political insurance
MIGA
MIGA
Multiple Choice Single Answer
Question
The apex institution in the field of Industrial Development is :Correct Answer IDBI
Your Answer
IDBI
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year
:Correct Answer 1965
Your Answer
1965
Select The Blank
Question
Development financial institutions have been established to
cater to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer
Long term financial needs
Select The Blank
Question
The ________ was set up to help corrections in BOP
maladjustments.
Correct Answer IMF
Your Answer
UNO
Multiple Choice Multiple Answer
Question
A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power , Drawing power
Multiple Choice Multiple Answer
Question
Functions of R.O. of a bank include :Correct Answer Inspection/audit , Control on branches , Grant loans/advances
Your Answer
Control on branches , Grant loans/advances , Pay interest on
deposits
Multiple Choice Single Answer
Question
IDBI introduced Automatic Refinance Scheme in the year :Correct Answer 1978
Your Answer
1975
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
EXIM bank
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Match The Following
Question
Correct Answer
Your Answer
Aquaculture ,Brackish
Water
Fisheries
Fisheries
Ploughing, weeding,
transplantation
Seasonal Agricultural
Operations
Irrigation & Drainage
Market Yards, Storage & Agricultural Marketing
Warehousing
Agricultural Marketing
Hill ,Tribal Area
development
Area Development
Area Development
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning
Your Answer
Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade in India.
Correct Answer EXIM bank
Your Answer
FEDAI
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
True
True/False
Question
NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
Power
True/False
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
False
Match The Following
Question
Correct Answer
Your Answer
Insurance of all employees of Group Insurance
a Firm
Group Insurance
Premium Throughout Life
Whole Life
Whole Life
Fixed Period Insurance
Endowment
Endowment
Insurance of ocean Cargo
Marine Insurance
Marine Insurance
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt and
Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
Mortgage Loans are loans against property.
Correct Answer True
Your Answer
True
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer without the
seller's consent.
Correct Answer Irrevocable
Your Answer
Revocable
Multiple Choice Single Answer
Question
Liabilities of Insurance Cos are mostly :Correct Answer Long term
Your Answer
Long term
Select The Blank
Question
As a banker to the Government, RBI accepts Government deposits at
________% interest.
Correct Answer 0
Your Answer
0.05
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year :Correct Answer 1965
Your Answer
1975
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Banking Regulation Act,1949
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
The first development Bank of India, established in 1948 was :Correct Answer IFCI
Your Answer
IFCI
True/False
Question
Non bank financial institutions undertake fund and non fund based
activities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over three years
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily basis in
branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Audited Balance Sheet , Trial Balance , P/L statement
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Treasury Bills are issued by the :Correct Answer RBI
Your Answer
RBI
Multiple Choice Single Answer
Question
Account where lump sum investment is made for specific period is :Correct Answer Term Deposit account
Your Answer
Term Deposit account
Multiple Choice Single Answer
Question
The apex institution in the field of foreign trade in India is :Correct Answer EXIM Bank
Your Answer
EXIM Bank
Multiple Choice Multiple Answer
Question
Basic Life insurance policies include :Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for modernisation
is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :Correct Answer Merchant Banking activities , Lease or hire purchase finance , Consultancy
& managerial services
Your Answer
Lease or hire purchase finance , Consultancy & managerial services ,
Rural credit activities
Select The Blank
Question
Syndication of Loans Globally does not involve any funds as it is ________
activity.
Correct Answer Non-fund based
Your Answer
Non-fund based
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
EFF
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large Customers
viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
Global Banking
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size of its
________.
Correct Answer Business
Your Answer
Business
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Correct Answer
Your Answer
Inter Bank Call Money
Markets
BRs, Call Money Receipts
Currencies
Money Market Instuments
CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market Instruments
Shares
Shares
Debt Market Instruments
GOI Securities ,Bonds
Shares
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer
Weaker sections
True/False
Question
Banks authorised to deal in foreign exchange are known as Authorised
Dealers.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member countries to
:Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Select The Blank
Question
The repayment holiday period is also known as ________ period.
Correct Answer Moratorium
Your Answer
Moratorium
Multiple Choice Single Answer
Question
A non-scheduled bank does not deal in :Correct Answer Foreign Exchange
Your Answer
Foreign Exchange
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Public sector Companies
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
The Shipping Credit and Investment Company of India Ltd. has
changed its name to ________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer
SCICI Ltd
Multiple Choice Multiple Answer
Question
IFC provides financial assistance :Correct Answer Through loans , Through purchase of shares , For economic
development
Your Answer
Largely as aid , Through loans
Select The Blank
Question
Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer
Six months or less
Multiple Choice Multiple Answer
Question
From time to time RBI has issued :Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds
Your Answer
Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds
Multiple Choice Multiple Answer
Question
R B I issues currency notes against the security of:Correct Answer Gold bullion , Foreign securities , GOI securities
Your Answer
Gold bullion , Foreign securities , GOI securities
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
Wholesale Banking
True/False
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ are buy and hold investors and almost never
trade on their investments.
Correct Answer Provident Funds
Your Answer
Mutual Funds
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
Multiple Choice Multiple Answer
Question
In case of a Life policy it is possible to withdraw from the
obligation to contribute further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Your Answer
Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Multiple Choice Multiple Answer
Question
IDA lends to poor countries :Correct Answer By lending at 0% interest. , For periods up to ten years , By
borrowing from IBRD
Your Answer
By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Multiple Answer
Question
Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer
Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Single Answer
Question
Treasury bills are issued by :Correct Answer RBI
Your Answer
RBI
True/False
Question
The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer
True
True/False
Question
No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder
is contained in :-
Correct Answer SGL pass book
Your Answer
SGL pass book
Multiple Choice Single Answer
Question
The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer
Indigenous bankers
Multiple Choice Single Answer
Question
SIDCs & SIICs are under the control of :Correct Answer State Governments
Your Answer
State Governments
True/False
Question
PFC has been persuading State Governments restructuring of
their power sector to make them viable.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Advances
Loans/cash credits
Loans/cash credits
Cash withdrawal facility
ATM
ATM
Remittances
MT/DD/TT/EFT
MT/DD/TT/EFT
Government business
Collection of taxes
Collection of taxes
Select The Blank
Question
GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer
Premium collected
Select The Blank
Question
The CRAFICARD recommended the establishment of
________.
Correct Answer NABARD
Your Answer
NABARD
Multiple Choice Multiple Answer
Question
The objective NEF Scheme of SIDBI is to provide equity support
to :Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
units in tiny & small scale sector
Your Answer
New Units in tiny Sector , New Units in Small Sector , Existing
units in tiny & small scale sector
Multiple Choice Single Answer
Question
Which of the following institution was set up as a subsidy of RBI
in 1964?
Correct Answer IDBI
Your Answer
IDBI
Select The Blank
Question
Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer
Post Offices
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Companies Act, 1956
Multiple Choice Single Answer
Question
Which one of the following is not a deposit account?
Correct Answer Cash Credit account
Your Answer
Cash Certificate
True/False
Question
CP is a usance promissory note hence it can be negotiated by
endorsement & delivery.
Correct Answer True
Your Answer
False
Select The Blank
Question
The ________ meet the long and medium term credit needs of
agriculture.
Correct Answer Land Development Banks
Your Answer
Regional Rural Banks
Multiple Choice Single Answer
Question
Zero Coupon Bonds are issued at a : Correct Answer Discount to face value
Your Answer
Discount to face value
True/False
Question
NABARD provides Refinance for Marketing of Crops.
Correct Answer True
Your Answer
False
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
Soft Loan Scheme for modernisation is provided by :Correct Answer IFCI , ICICI , SIDBI
Your Answer
ICICI
True/False
Question
In case of T-Bills potential investors have to put in competitive
bids.
Correct Answer True
Your Answer
True
Match The Following
Question
Development financial
institutions
Correct Answer
Your Answer
IFCI
IFCI
Organised sector
Banking System
Banking System
Unorganised sector
Indigenous banks
Indigenous banks
Mutual funds
UTI
UTI
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Instruments issued by DFIs and Banks carry :Correct Answer Highest credit ratings
Your Answer
Highest credit ratings
Multiple Choice Single Answer
Question
For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer
SIDF
True/False
Question
Amongst others, ICICI also provided long and medium term
loans or equity finance.
Correct Answer True
Your Answer
True
Select The Blank
Question
Interest on advances is generally calculated on ________
products.
Correct Answer Daily
Your Answer
Fortnightly
Select The Blank
Question
The ________ has been accredited by RBI as a Primary Dealer
in Governemt Securities.
Correct Answer STCI
Your Answer
GIC
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
SDR
Multiple Choice Single Answer
Question
Development Financial Institutions provide finance to the needy
Correct Answer Corporates & govt. institutions
Your Answer
Corporates & govt. institutions
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
NABARD provides short term refinance for procurement
activities also.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Tourism promotes :Correct Answer Credit Card Business , International remittances , Travellers'
Cheques
Your Answer
Credit Card Business , International remittances , Travellers'
Cheques
True/False
Question
HDFC was set up by NHB.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
IMF articles were amended in 1978 to legalise the :Correct Answer Floating exchange rates
Your Answer
Special drawing rights
Select The Blank
Question
Syndication involves ________ sanction.
Correct Answer In principle
Your Answer
In principle
Multiple Choice Single Answer
Question
The organised financial system includes :Correct Answer Commercial banks
Your Answer
Commercial banks
Match The Following
Question
Correct Answer
Your Answer
CRR
Primary reserve
requirement
Prevention of speculative
hoarding in
Bankers Bank
Controlling the reserves of Controlling the reserves of
commercial banks
commercial banks
Exchange control
FEMA
FEMA
OMO
Government securities
Secondary reserve
requirement
Multiple Choice Multiple Answer
Question
The prominent Bond issuing PSU are :Correct Answer MTNL , NTPC , SAIL
Your Answer
MTNL , NTPC , SAIL
Select The Blank
Question
The Premium of ________ is obtained through obligatory
reinsurance premium.
Correct Answer GIC
Your Answer
GIC
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
Development Financial institutions include :Correct Answer State financial institutions
Your Answer
State financial institutions
Match The Following
Question
Correct Answer
Your Answer
Money Market
Instruments
CP, T- Bills
CP, T- Bills
Negotaible Instruments
Bills of exchange
,Cheques
Bills of exchange
,Cheques
GOI securities
ZCB, ILBonds
ZCB, ILBonds
Long Term Debt
instruments
PSU Bonds
PSU Bonds
Select The Blank
Question
NABARD took over the functions of ACD, RPCC of RBI &
________.
Correct Answer ARDC
Your Answer
ARDC
Select The Blank
Question
The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer
Rate of interest
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
True/False
Question
Under open market operation RBI conducts buying /selling
shares/debentures of blue chip companies.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Initial Quantum of resources of IMF were contributed by
members according to :Correct Answer Quotas fixed for members
Your Answer
Quotas fixed for members
Multiple Choice Single Answer
Question
The ultimate source of money in India is:Correct Answer RBI
Your Answer
RBI
Multiple Choice Multiple Answer
Question
ECGC Board comprises of Directors representing :Correct Answer Government , Banking/Insurance , Trade/Industry
Your Answer
Government
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder
is contained in :Correct Answer SGL pass book
Your Answer
SGL pass book
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Cash Book , Trial Balance , P/L statement
Multiple Choice Single Answer
Question
Size of the Quota depended upon :Correct Answer GNP
Your Answer
GNP
Multiple Choice Multiple Answer
Question
DICGC does not insure the deposits :Correct Answer Of foreign Governments , Of State Cooperative Banks , Of the
Central Government
Your Answer
Of foreign Governments , Of State Cooperative Banks , Of the
Central Government
Select The Blank
Question
Financial markets are the centres that provide facilities for
buying and selling of ________.
Correct Answer Financial claims and services
Your Answer
Goods and services
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Regional /Sectoral planning , Benchmark Surveys , Prefeasibility studies
Your Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
Select The Blank
Question
In a Bank, the investment decisions are taken at ________
level.
Correct Answer Head Office
Your Answer
Head Office
True/False
Question
The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
SFCs suffer from a very high ratio of: -
Correct Answer Overdues
Your Answer
Overdues
Multiple Choice Multiple Answer
Question
Functions of NIDHIs include :Correct Answer Accepting Deposits , Granting loans , Encourage thrift
Your Answer
Accepting Deposits , Granting loans , Speculation
Multiple Choice Multiple Answer
Question
R B I conducts monetary control by way of O M O in :Correct Answer Treasury bills , State /central Government Securities
Your Answer
Treasury bills , State /central Government Securities
Multiple Choice Single Answer
Question
The foreign currency account maintained by an authorised
dealer with its correspondent abroad is :Correct Answer Nostro Account
Your Answer
Nostro Account
Select The Blank
Question
Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer
Bulk investment
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Irrevocable
Multiple Choice Single Answer
Question
The primary sources of IMF resources are :Correct Answer Quotas
Your Answer
Quotas
Multiple Choice Multiple Answer
Question
The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer
Indigenous bankers
Multiple Choice Single Answer
Question
The first long term industrial financing corporation set up in the
country was :Correct Answer IFCI
Your Answer
IFCI
Select The Blank
Question
The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Single Answer
Question
One of the leading All India FI is :Correct Answer SIDBI
Your Answer
LIC
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer
True
True/False
Question
The overdraft facility is also known as Cash credit facility.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
RBI was established under the:Correct Answer RBI Act
Your Answer
RBI Act
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
True/False
Question
The currency notes issued by RBI are legal tender everywhere
in India without any limit.
Correct Answer True
Your Answer
False
Multiple Choice Multiple Answer
Question
Post Offices are popular for mobilizing small savings of the
public due to :Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer
Low returns , Wide network , Saftey of funds
Multiple Choice Multiple Answer
Question
Bonds issued by institutions through SPVs to execute
infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd
Your Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
SIDBI provides :Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer
Refinance , Rediscounting of Bills , Financial support to SSIDC
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Which of the following services is not provided by Commercial
banks?
Correct Answer Deposit Insurance
Your Answer
Deposit Insurance
Multiple Choice Single Answer
Question
IDBI has helped in the establishment of :Correct Answer EXIM Bank
Your Answer
IFCI
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
A Cheque is a Negotiable Instrument.
Correct Answer True
Your Answer
True
True/False
Question
State loans are much less liquid than GOI Securities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
True/False
Question
Development financial institutions primarily lend to Agriculture
sector.
Correct Answer False
Your Answer
False
True/False
Question
Banks do not invest in the GOI securities .
Correct Answer False
Your Answer
False
Select The Blank
Question
NABARDs Criteria for Refinance covers Technical ________ of
the project.
Correct Answer Feasibility
Your Answer
Feasibility
True/False
Question
IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer
True
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer
Planned Savings
Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances comprise of
:Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
Your Answer
Donations/Charity , Payments of Royalty
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
Power
Multiple Choice Single Answer
Question
A major part of the credit of SFCs went to :Correct Answer SSI units
Your Answer
SSI units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over one year
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
True/False
Question
A Bill of Exchange is negotiable.
Correct Answer True
Your Answer
True
Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer
Paid-up
Select The Blank
Question
The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer
Negotiation
True/False
Question
Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer True
Your Answer
True
Select The Blank
Question
The loans under________ are based on Poverty Reduction
Strategy Paper.
Correct Answer PRGF
Your Answer
PRGF
Multiple Choice Multiple Answer
Question
The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer
Marine insurance , Fire insurance , Miscellaneous
Multiple Choice Single Answer
Question
FIs can be classified into two categories depending on the basis
of incorporation and :Correct Answer Operation
Your Answer
Size
Multiple Choice Multiple Answer
Question
The main objective of ICICI was :Correct Answer To augment export finance in India , To channelise World
Bank's funds to industries in India , To help in building up a
Capital Market in India
Your Answer
To augment export finance in India , To help in building up a
Capital Market in India , To aid Rural Development in India
Multiple Choice Single Answer
Question
SIDCs & SIICs give loans ,guarantees & : Correct Answer Lease finance
Your Answer
Lease finance
Multiple Choice Single Answer
Question
Commercial Papers are issued by :Correct Answer Corporates
Your Answer
Corporates
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
True/False
Question
Gramin banks are State Owned Banks.
Correct Answer True
Your Answer
False
True/False
Question
NIDHIS are Trading Organisations.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
Corporate Debentures are :Correct Answer Long term debt instruments
Your Answer
Long term debt instruments
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Correct Answer
Your Answer
Largest borrower in the
world
IBRD
IBRD
International Monetary
Cooperation
IMF
IMF
Prevention of crises
CCL
CCL
Political insurance
MIGA
MIGA
Multiple Choice Single Answer
Question
The apex institution in the field of Industrial Development is :Correct Answer IDBI
Your Answer
IDBI
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year
:Correct Answer 1965
Your Answer
1965
Select The Blank
Question
Development financial institutions have been established to
cater to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer
Long term financial needs
Select The Blank
Question
The ________ was set up to help corrections in BOP
maladjustments.
Correct Answer IMF
Your Answer
UNO
Multiple Choice Multiple Answer
Question
A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power , Drawing power
Multiple Choice Multiple Answer
Question
Functions of R.O. of a bank include :-
Correct Answer Inspection/audit , Control on branches , Grant loans/advances
Your Answer
Control on branches , Grant loans/advances , Pay interest on
deposits
Multiple Choice Single Answer
Question
IDBI introduced Automatic Refinance Scheme in the year :Correct Answer 1978
Your Answer
1975
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
EXIM bank
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Match The Following
Question
Correct Answer
Your Answer
Aquaculture ,Brackish
Water
Fisheries
Fisheries
Ploughing, weeding,
transplantation
Seasonal Agricultural
Operations
Irrigation & Drainage
Market Yards, Storage & Agricultural Marketing
Warehousing
Agricultural Marketing
Hill ,Tribal Area
development
Area Development
Area Development
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market! is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well a!
s:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government reg! ulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p; Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer &n! bsp; Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is
:Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :&n! bsp; Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning
it in the open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller
against a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
!
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Draw ing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
Financial Institution and Banking
Topic
organised sector
financial services
Indian financial system
commercial banks
development financial institutions
insurance companies
other public sector financial institutions
post office savings
mutual funds
non banking finanical institutions
Reserve bank of India
functions of RBI
banker to the government
bankers bank
supervising authority
exchange control authority
promoter of financial system
fiscal and monetary policy
open market operations
developmental financial institutions
industrial finance corporation of India
Industrial development bank of india - idbi
industrial credit and investment corporation of india Ltd - icici
irbi
sfcs
sidc and siics
state small industries development corporation (SSIDC)
power finance corporation (PFC)
financial services offered by the corporation
term loans
lease financing
direct discounting of bills
guarantee services
loan syndication
short term loan
institutional development services
utility development plans
financial assistance for power sector studies
reform and restructuring related studies
reform and restructuring of SEBs
OFAP
export import bank of india
national bank of agriculture and rural development
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genesis of NABARD
ARC
GOI
ACD
CRAFICARD
types of refinance facilities
interest rates
production credits
financing weavers
OSAO
refinance for marketing of crops
other refinance facilities
long term loans to state governments
investment credit ( medium and long term) refinance
shipping credit and investment company of India (SCICI)
principal activities
agricultural finance consultancy ltd (AFC)
area of specialisation
surveys and studies
National co-operative development corporation (NCDC)
finance and financing
procedure of santion / disbursal of assistance
promotional and development role
marketing
agricultural inputs
agro-processing industries
storage and cold storage
program for weaker sections
consumer business
area based integrated co-operative development project
national housing bank (NHB)
housing and urban development corporation (HUDCO)
housing development finance corporation (HDFC)
land development banks
banking sector
retail banking
cash credit
safe custody services for safe keeping of important documents
acceptance of deposits from non resident indians
difference between retail banking and wholesale banking
global banking
scheduled bank in india
commercial bank and cooperative bank
public sector banks
private sector banks
bank accounts
deposit account
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lump sum investment
periodic investment
cash credit
loan syndication
repayment period
bill
discount
remittance
letter of credit
bank guarantee
negotiation
cash reserve ratio
statutory reserve ratio
note pertaining to reserve ratio
clearing operation
daily product basis
monthly product basis
repayment holiday
credit instruments
negotiable instruments
acceptance
credit report
syndication
custodial services
security
foreign exchange
securitisation
international banking
international trade
tourism
remittance of funds from one place to another place besides tourism
syndication of loans global for corporate houses
foreign exchange management
profile of a bank
branch banking
different layers of banking
duties of an international banking department
exchange operations
administrative functions in a bank
administrative units
banking business
Deposit insurance and credit guarantee corporation (DICGC)
export credit guarantee corporation (ECGC)
indian money market
instrument
comercial paper
certificates of deposit
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treasury bills
short term debentures
bill of exchange
long term debt instruments
government of India dated securities (GOISEC)
inflation linked bonds
zero coupon bonds
state government securities (state loans)
public sector undertaking bonds (PSU Bonds)
bonds of public financial institutions (PFI)
corporate debentures
Pass through certificates (PTC)
issuers
government of India and other sovereign bodies
banks and development financial institutions
public sector undertaking (PSU )
private sector companies
government owned or quasi governement non corporate entities
investors
banks
insurance companies
provident funds
mutual funds
trusts
corporate treasuries
foreign institutional investors
securities trading corporation of india (STCI)
discount and finance house of india
non banking financial intermediaries
LIC
general nature of insurance companies
instroduction of Life Insurance corporations
types and structure of insurance plans
general insurance corporation
unit trust of india
provident / pension funds
post offices
Non bank financial companies (NBFC)
investment companies
loan companies
chit funds
NIDHIS
hire purchase finance companies
equipment leasing finance companies
international monetary fund (IMF)
quotas
concessional and non concessional lending
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poverty reduction and growth facility (PRGF)
stand by arrangments (SBA)
extended fund facility (EFF)
supplement reserve facility (SRF)
contingent credit lines (CCL)
compensatory financing facility (CFF)
emergency assistance
special drawing rights
the international bank for reconstruction and development
world bank
international finance corporation
international development assiciation (IDA)
the bank for international settlements
regional development agencies
RBI
non performing assets
out of order status
overdue
income recognition
reversal of income
appropriation of recovery in NPA
NPA
sub standard Assets
subtful assets
loss assets
account with temporary deficiancies
upgradation of loan accounts classified as NPA
account regularised near about the balance sheet date
agricultural advances
government guaranteed advances
restructuring rescheduling of loans
upgradation of restructured accounts
corporate debt restructuring (CDR systems)
CDR
stand still clause
category 2 CDR system
projects under implementation
assest classification
income recognition
provisioning
availability of security / net worth of borrower / guarantor
take-out finance
post shipment supplier credit
export project finance
advances under rehabiliation approved by BIFR/TLI
provisioning norms general
sub standard Assets
113
114
114
114
114
114
114
114
115
115
115
116
116
116
119
120
121
121
121
122
122
122
123
124
124
124
125
125
126
128
128
130
131
131
138
139
142
142
144
145
145
145
145
146
146
146
148
leased assets
advances
advances covered by CGTSI guarantee
take-out finance
reserve for exchange rate fluctuations account (RERFA)
country risk
securitisation company (SC) / reconstruction company (RC)
writing off of NPA
direct finance to farmers for agricultural purposes
purchase of agricultural implements and machinery
development of irrigation potential through
lending to priority sector
priority sector advances
direct finance to farmers for agricultural purposes
indirect finance to agriculture
small scale and ancillary industries
tiny enterprises
small scale service and business enterprises(SSSBE)
industrial estates
KVI sector
small road and water transport operators (SRWTO)
retail trade
small business
professional and self emplyed persons
state sponsored organisations for scheduled castes / scheduled tribes
education
housing
compsumption loans
loans to self help groups (SHG)/NGO/MICROEDIT
food and agro based processing sector
software industry
venture capital
investments in special bonds
HUDCO
NSIC
NHB
lines of credit
bills rediscounting
deposits in rural infrastructure development (RIDF)
leasing and hire purchase
targets for priority sector lending by scheduled commercial bank s
scheduled commercial banks excluding foreign banks
direct / indirect agricultural lending
small scale industries
DRI advances
Weaker sections
Targets for foreign banks
148
150
151
152
152
153
154
155
156
156
156
158
161
161
163
166
166
166
167
167
167
168
168
168
169
170
170
170
170
171
171
171
173
174
174
174
174
175
175
175
177
177
177
178
178
178
178
rural infrastructure developments fund (RIDF )
common guidelines for priority sector advances
application forms
mode of disbursement of loan
repayment schedule
rates of interest
penal interest
inspection charges
insurance against fire and other risks
other charges
photographs of borrowers
discretionary powers
machinery to look into complants
amendments
180
183
183
184
184
184
185
185
185
186
186
186
186
186
Chapter – 1 : Overview of Financial markets Meaning and scope
Following groups; organized sector and unorganized sector ; financial services
Financial systems commercial banks ; development financial institutions ;
insurance companies ; other public sector financial institutions ; post office
savings bank ; national bank for agriculture and rural development ; Mutual
funds ; non – banking financial institutions
Chapter – 2 Reserve bank of India – The main functions of RBI are ; Note
issuing authority ; banker to the Government ; Bankers’ Bank ; Supervising
authority ; Exchange control Authority ; Promoter of Financial System ; Fiscal
and Monetary policy ; open market operations ;
Chapter – 3 – Development Financial Institutions – Introduction ; Industrial
Finance Corporation of India ; Industrial development bank of India ;
Industrial credit and investment corporation of India ltd., The purpose IRBI ;
SFCs ; The SIDCs and SIICs ; Functions ; state small industries development
corporations (SSIDCs) Power Finance Corporation (PFC) Financial Services
Offered by the Corporation ; Lease Financing – Direct Discounting of Bills;;
Guarantee Services; Loan Syndication ; short term loan ;
Institutional Development Services
Acting as an instrument for ushering in reforms in the state utilities both
financial and technical ; utility development plans ; Financial Assistance for
power sector studies ; Reform & Restructuring related studies ; Reforms &
Restructuring of SEBs ; Export import bank of India ; National Bank for
agriculture and rural development ; Genesis of NABARD
Types of refinance facilities ; interest rates ; production credits ; Other
refinance facilities ; investment credit (Medium and long term) Refinance
Shipping credit and investment company of India (SCICI)
Agricultural Finance Consultancy Ltd (AFC)
Membership ; Organization ; Services ; Area of specialization ; surveys &
studies ; crop production ; Forestry ; Irrigation & Drainage ; Agricultural
Engineering ; Horticulture & Plantation ; Fisheries ; Livestock & Dairy ;
Agricultural & Livestock Marketing ; Agri-Business & Agro-Industries ; Area
Development Planning ; Agricultural & Rural Credit ; Project Formulation &
Appraisal ; Institution Building ;
1–5
9 – 12
17 – 21
22 - 31
33 – 37
Social Sector Development ; Remote Sensing Application & Resources
Management Centre ; Training & Manpower Development ; Rural
Infrastructure ; Surveys and Studies ; National Co-operative Development
Corporation (NCDC) ; Genesis ; Functions ; Organization and Management ;
Finance and Financing ; Purposes for which assistance is provided ; Procedure
of sanction / disbursal of assistance ; Promotional and development role ;
Activities and program ; Marketing ; Agricultural inputs ; Agro- Processing
industries ; Sugar ; Spinning Mill ; Others ; Storage and Cold Storage ; Storage
; Cold Storage ; Program for weaker sections ; Consumer business
Are based integrated co-operative development project ; National housing bank
(NHB) Role and functions in Housing sector ; Role NHB; Housing and urban
development corporation (HUDCO); Housing development finance
corporation (HDFC) ; land development banks ;
Chapter - 4 – Banking Sector – What is bank and what is banking Extending
financial assistance to exports on soft terms ; safe custody services for safe
keeping of important documents ; acceptance of deposits from non-resident
Indians ; difference between retail banking and wholesale banking
What is a schedule bank in India ; What is the difference between a
commercial bank and a co-operative bank ; different bank accounts – deposit ;
deposit account without withdrawals facility – different categories ;
Different bank accounts – advances and loans ; cash credit loan ; repayment
period ; banking terms often used / common banking practices ; discount ;
remittance ; letter of credit ; advantage ; Bank guarantee ; example of financial
guarantee example of performance guarantee ; letters of credit and bank
guarantees play a very important role in international banking statutory
Reserve ratio ; Note pertaining to reserve ratio ; clearing operation ; daily
product basis ; repayment holiday
Credit instruments ; Negotiable instruments ; acceptance ; credit report ;
syndication ; custodial service ; security ; foreign exchange ; securitization ;
international banking internal trade tourism ; remittance of funds from one
place to another place besides tourism / international trade ; Syndication of
loans globally for corporate houses ;
Accessing international market for equity / borrowing in the form of ADR /
GDR and Ero Bonds Etc., Foreign exchange management ; profile of a bank
different layers of banking operations in India in general ; what are the duties
of an international banking department? Exchange operations administrative
functions in a bank ; different administrative units in a bank
Typical functions of different administration units of a bank ; at the head office
level ; banking business vs. other business ; deposit insurance and credit
guarantee corporation (DICGC) ; Export credit guarantee corporation (ECGC)
Chapter – 5 Indian Money Market – Indian Money Market ; instruments ;
Money market instruments ; commercial paper (CP) certificates of deposit
(CD) ; Treasury Bills (T – Bills); long term debt instruments ; government of
India dated securities (GOISECs) ; New types of Goisecs ;
State government securities (State Loans) ; Public Sector Undertaking Bonds
(PSU Bonds ) ; Bonds of public financial institutions (PFIs) Corporate
38 – 41
42 – 45
49 – 51
52 – 53
54 – 58
59 -61
62 – 63
64 – 68
73 – 77
78 - 83
debentures ; Pass Through Certificates (PTSs) Issuers ; Government of India
and other sovereign bodies ; Banks and development financial instructions ;
public sector undertaking (PSUs) private sector companies ; Government
owned or quasi government non corporate entities ; investors ; banks ; banks ;
Insurance companies ; provident funds ; Several factors have contributed to the
growth of PFs in India ; Mutual funds ; trusts ; corporate treasuries ; foreign
instructional investors ; securities trading corporation of India ltd., (STCI) ;
discount and finance house of India;
Chapter – 6 – Non Banking Financial intermediaries
LIC ; General Nature of Insurance Companies ; Introduction of Life Insurance
Corporations ; Types and structure of insurance plans ; valuation of life policy
; growth of life business and fund ; investment pattern and policy ; general
insurance corporation ; organization ; types and structure of business; income
and investment pattern
Unit trust of India and other mutual funds ; provident / pension funds; post
offices ; other non-bank financial companies’ (NBFCs) ; Investment
companies ;
Loans companies chit funds ; nidhis functions ; accepting deposits loan and
advances ; other aspects ; Hire – purchase finance companies ; functions ;
installment – credit ; financing of purchase of equipment, vehicles etc. ;
purchase of old assets ; consumer credit ; equipment leasing finance
companies;
Chapter – 7 ; International Financing agencies – International monetary Fund
(IMF) ; Funding facilities ; Schemes of the IMF funding ; concessional and
non-concessional lending ; IMF Facilities ;
poverty reduction and growth facility ; stand – by arrangement ; extended fund
facility ; supplemental reserve facility ; contingent credit lines ; compensatory
financing facility ; emergency assistance ; special drawing rights ; the
international bank for reconstruction and development ; international finance
corporation ; 1956; international development association ; the bank for
international settlements ; regional development agencies ; European bank for
reconstruction and development;
Important regulatory instructions issued by the RBI ; contents ; general ;
definitions ; non – performing assets ; year ending march 31 specified period ;
out of order status ; overdue ; income recognition ; income recognitions ;
income recognition – policy ; reversal of income this will apply to government
guaranteed accounts also ; appropriation of recovery in NPAs ; interest
application ; reporting of NPAs; Asset classification ; categories of NPAs ; sub
– standard assets ; NPA for a period less than or equal to 18 months ;
Guidance note on asset classifications ; provisioning norms ; doubtful assets
loss assets ; guidelines for classification off assets ; accounts with temporary
deficiencies ; up gradation of loan accounts classified as NPAs ; Accounts
regularized near about the balance sheet date ;
Asset classification to be borrower – wise and not facility wise ; ; advances
under consortium arrangements ; record of recovery of the individual member;
accounts where there is a erosion in the value of security ; advances to
84 – 89
93 - 97
98-101
102 – 105
109 – 113
114 – 117
119 – 123
124 – 125
126-127
PACs/FSS ceded to commercial banks ; advances against term deposits NSC’s
KVP / IVP ; loans with moratorium for payment of interest ; agricultural
advances;
Government guaranteed advances ; restructuring of loans ; upgradation of
restructured accounts; general ; corporate debt restructuring (CDR System)
Background ; objective structure CDR system in the country will have a three
tier structure ; cdr standing forum and its core group ; cdr empowered group ;
cdr cell ;
Other features ; eligibility criteria ; reference to CDR system ; legal basis ;
stand – still clause ; additional finance ; exit option ; conversion option ;
category 2 cdr system ; accounting treatment for restructured accounts ;
Disclosure ; implementation of the revised guidelines ; projects under
implementation ; asset classification ; category II ; category III ; income
recognition ; provisioning ; availability of security / net worth of borrower /
guarantor ; take – out finance ; post – shipment supplier’s credit
Export project finance ; advances under rehabilitation approved by BIFR / RLI
; provisioning norms general ; loss assets ; doubtful assets ; period for which
the advance has been considered as doubtful ; provisions requirement ;
valuation of security for provisioning purposes ; sub-standard assets ; standard
assets ; floating provisions ; provisions on leased assets sub – standard assets ;
doubtful assets ; period age provisions loss assets ; loss assets ; guidelines for
provisions under special circumstances ; government guaranteed advances
Advances granted under rehabilitation packages approved by BIFR / term
lending institutions ; treatment of interest suspense account ; Advances
covered by ECG / DICGC guarantee ; advance covered by CGTSI guarantee ;
Take out finance ; reserve for exchange rate fluctuations account (RERFA) ;
Provisioning for country risk ; Risk category ; ECGC classification ;
Provisioning requirement (per cent)
Provisioning norms for sale of financial assets to securitization company (SC) /
Reconstruction company (RC) ; writing off of NPAs
Annexure – II Revelant extract of the list of direct agricultural advances from
the Master Circular on lending to priority sector – RPCD. Plan.BC. 42A /
01.09.01/ 2001-02 dated 11 November, 2002.
Direct Finance of farmers for Agricultural Purposes ; purchase of agricultural
implements and machinery ; development of irrigation potential through ;
reclamation and loan development schemes ; construction of farm buildings
and structure etc., ; construction and running of storage facilities ; production
and processing of hybrid seeds for crops ; payment of irrigation charges etc., ;
other types of direct finance of farmers ; Lending to Priority Sector
Section – 1 – Classification of Priority Sector advances ; Agriculture ; direct
Finance to Framers for Agricultural Purposes ; Indirect Finance to agriculture ;
small scale industries ; small scale and ancillary industries ;
Tiny Enterprises ; small scale service & Business Enterprises (SSSBE’s) ;
Indirect finance in the small – scale industrial sector will include credit to ;
industrial estates KVI Sector ; Other Activities / Borrowers in the Priority
sector ; Small road & Water Transport operators (SRWTO)
128- 134
135 – 140
141 – 145
146 – 149
150 – 153
154-156
156 - 158
161 – 165
166 - 167
Retail trade – advances granted to small business ; professional & self –
employed persons ; state sponsored organizations for scheduled castes /
scheduled tribes
Education ; housing ; consumption loans ; loans to self – help groups (SHGs) /
NGOs / Microcredit ; Food and agro – based processing sector ; software
industry ; venture capital
Section – II ; Certain Types of Funds deployment eligible as priority sector
advances ; State Financial Corporations (SFCs) / State Industrial Development
Corporations (SIDCs) ; Rural Electrification Corporation (REC) ; Nabard ;
Small industries development Bank of India (SIDBI) ; the National industries
corporation ltd., (NSIC) ; National housing bank (NHB) ; Housing & Urban
development corporation (HUDCO) ;
Other investments ; lines of credit ; bills rediscounting ; deposits in rural
infracture development fund (RIDF) leasing and hire purchase
Section – III – Targets for priority sector lending by scheduled commercial
banks (excluding RRBs) ; Main Targets for all scheduled commercial banks
excluding foreign banks ; sub-targets for all scheduled commercial banks
excluding foreign banks ; Direct / Indirect Agricultura lending
Small scale industries ; DRI advances ; weaker sections ; Targets for foreign
banks ; deposit by foreign banks with SIDBI towards shortfall in priority sector
lending ; contribution by banks to rural infrastructure development fund
(RIDF)
Section – IV – Common guidelines for priority sector advances
Processing of applications ; completion of application forms ; issue of
acknowledgement of loan applications ; disposal of applications ; rejection of
proposals ; register of rejected applications ; mode of disbursement of loan ;
repayment schedule ; rates of interest
Penal interest ; inspection charges ; insurance against fire and other risks ;
banks may waive insurance of assets financed by bank credit in the following
cases;
Other charges ; Photographs borrowers; discretionary powers; machinery to
look into complaints ; amendments ; annexure I – general guidelines on
priority sector lending ; general guidelines on priority sector lending
168 – 169
170 – 171
173 - 174
174 – 175
177
178 – 181
183 – 184
185
186 -189
For its long term operations NABARD raises funds by :-
a)
b)
Floating Bonds in open
market
Drawing from the Central
c) Govt.
d)
Drawing from National Rural
credit Funds
Borrowing from RRBs
Secured Premium Notes are
Bonds
.
Most of the Indian PS Banks practice retail banking.
True
False
1. Pure NBFI
1. REC
2. Specialised NBFI
2. FFC
3. Film Finance
3. HDFC
4. Rural Electrification
4. Chit Funds
5. UTI
6. NICo Ltd.
Marks : 2
26.
facilities
are for economies in transition.
Legally speaking Pass Through Certificates
are
freely.
and are tradeable
EXIM Bank can
raise resources by:-
a)
Issuing bonds
b)
c)
Borrowing from
RBI
d)
Borrowing from
International
Financial
Institutions
Borrowing from
State Govt
1. LIC of
India Ltd
1. Gen.Insurance
2. Life Insurance
2. HDFC
3. Mutual fund
3. PPF
4. Small
Savings
4. Chit Funds
5. UTI
6. NICo of
India Ltd.
If the Bank allows a finance of Rs 95 against a Bill of Rs 100 the difference of Rs. 5
is known as the :-
a)
Discount
b)
Margin
c)
Interest
d)
Commission
41.
DFHI was set up with the following objective :-
a)
Executor Trustee Services
b)
To even out imbalances
c)
To provide liquidity
d)
To promote secondary market
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
SIDBI provides :-
Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer
Refinance , Rediscounting of Bills , Financial support to SSIDC
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Which of the following services is not provided by Commercial
banks?
Correct Answer Deposit Insurance
Your Answer
Deposit Insurance
Multiple Choice Single Answer
Question
IDBI has helped in the establishment of :Correct Answer EXIM Bank
Your Answer
IFCI
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
A Cheque is a Negotiable Instrument.
Correct Answer True
Your Answer
True
True/False
Question
State loans are much less liquid than GOI Securities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
True/False
Question
Development financial institutions primarily lend to Agriculture
sector.
Correct Answer False
Your Answer
False
True/False
Question
Banks do not invest in the GOI securities .
Correct Answer False
Your Answer
False
Select The Blank
Question
NABARDs Criteria for Refinance covers Technical ________ of
the project.
Correct Answer Feasibility
Your Answer
Feasibility
True/False
Question
IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer
True
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer
Planned Savings
Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances comprise of
:Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
Your Answer
Donations/Charity , Payments of Royalty
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
Power
Multiple Choice Single Answer
Question
A major part of the credit of SFCs went to :Correct Answer SSI units
Your Answer
SSI units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over one year
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
True/False
Question
A Bill of Exchange is negotiable.
Correct Answer True
Your Answer
True
Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer
Paid-up
Select The Blank
Question
The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer
Negotiation
True/False
Question
Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer True
Your Answer
True
Select The Blank
Question
The loans under________ are based on Poverty Reduction
Strategy Paper.
Correct Answer PRGF
Your Answer
PRGF
Multiple Choice Multiple Answer
Question
The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer
Marine insurance , Fire insurance , Miscellaneous
Multiple Choice Single Answer
Question
FIs can be classified into two categories depending on the basis
of incorporation and :Correct Answer Operation
Your Answer
Size
Multiple Choice Multiple Answer
Question
The main objective of ICICI was :Correct Answer To augment export finance in India , To channelise World
Bank's funds to industries in India , To help in building up a
Capital Market in India
Your Answer
To augment export finance in India , To help in building up a
Capital Market in India , To aid Rural Development in India
Multiple Choice Single Answer
Question
SIDCs & SIICs give loans ,guarantees & : Correct Answer Lease finance
Your Answer
Lease finance
Multiple Choice Single Answer
Question
Commercial Papers are issued by :Correct Answer Corporates
Your Answer
Corporates
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
True/False
Question
Gramin banks are State Owned Banks.
Correct Answer True
Your Answer
False
True/False
Question
NIDHIS are Trading Organisations.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
Corporate Debentures are :-
Correct Answer Long term debt instruments
Your Answer
Long term debt instruments
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Correct Answer
Your Answer
Largest borrower in the
world
IBRD
IBRD
International Monetary
Cooperation
IMF
IMF
Prevention of crises
CCL
CCL
Political insurance
MIGA
MIGA
Multiple Choice Single Answer
Question
The apex institution in the field of Industrial Development is :Correct Answer IDBI
Your Answer
IDBI
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year
:Correct Answer 1965
Your Answer
1965
Select The Blank
Question
Development financial institutions have been established to
cater to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer
Long term financial needs
Select The Blank
Question
The ________ was set up to help corrections in BOP
maladjustments.
Correct Answer IMF
Your Answer
UNO
Multiple Choice Multiple Answer
Question
A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power , Drawing power
Multiple Choice Multiple Answer
Question
Functions of R.O. of a bank include :Correct Answer Inspection/audit , Control on branches , Grant loans/advances
Your Answer
Control on branches , Grant loans/advances , Pay interest on
deposits
Multiple Choice Single Answer
Question
IDBI introduced Automatic Refinance Scheme in the year :Correct Answer 1978
Your Answer
1975
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
EXIM bank
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Match The Following
Question
Correct Answer
Your Answer
Aquaculture ,Brackish
Water
Fisheries
Fisheries
Ploughing, weeding,
transplantation
Seasonal Agricultural
Operations
Irrigation & Drainage
Market Yards, Storage & Agricultural Marketing
Warehousing
Agricultural Marketing
Hill ,Tribal Area
development
Area Development
Area Development
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Financial Institutions & Banking_6
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning
Your Answer
Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
FEDAI
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
True
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
Power
True/False
-1-
Financial Institutions & Banking_6
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
False
Match The Following
Question
Insurance of all
employees of a Firm
Correct Answer
Your Answer
Group Insurance
Group Insurance
Premium Throughout Life Whole Life
Whole Life
Fixed Period Insurance
Endowment
Endowment
Insurance of ocean Cargo Marine Insurance
Marine Insurance
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
Mortgage Loans are loans against property.
Correct Answer True
Your Answer
True
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Revocable
Multiple Choice Single Answer
Question
Liabilities of Insurance Cos are mostly :Correct Answer Long term
Your Answer
Long term
Select The Blank
-2-
Financial Institutions & Banking_6
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0.05
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year :Correct Answer 1965
Your Answer
1975
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Banking Regulation Act,1949
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
The first development Bank of India, established in 1948 was :Correct Answer IFCI
Your Answer
IFCI
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
-3-
Financial Institutions & Banking_6
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over three years
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Audited Balance Sheet , Trial Balance , P/L statement
True/False
Question
Banks lend to corporates directly.
Correct Answer True
-4-
Financial Institutions & Banking_6
Your Answer
True
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Treasury Bills are issued by the :Correct Answer RBI
Your Answer
RBI
Multiple Choice Single Answer
Question
Account where lump sum investment is made for specific period
is :Correct Answer Term Deposit account
Your Answer
Term Deposit account
Multiple Choice Single Answer
Question
The apex institution in the field of foreign trade in India is :Correct Answer EXIM Bank
Your Answer
EXIM Bank
Multiple Choice Multiple Answer
Question
Basic Life insurance policies include :Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :-
-5-
Financial Institutions & Banking_6
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Lease or hire purchase finance , Consultancy & managerial
services , Rural credit activities
Select The Blank
Question
Syndication of Loans Globally does not involve any funds as it is
________ activity.
Correct Answer Non-fund based
Your Answer
Non-fund based
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
EFF
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
Global Banking
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
-6-
Financial Institutions & Banking_6
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Inter Bank Call Money
Markets
Correct Answer
Your Answer
BRs, Call Money Receipts Currencies
Money Market Instuments CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market
Instruments
Shares
Shares
Debt Market Instruments
GOI Securities ,Bonds
Shares
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income
groups.
Correct Answer Weaker sections
Your Answer
Weaker sections
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Select The Blank
Question
The repayment holiday period is also known as ________
period.
Correct Answer Moratorium
Your Answer
Moratorium
-7-
Financial Institutions & Banking_6
Multiple Choice Single Answer
Question
A non-scheduled bank does not deal in :Correct Answer Foreign Exchange
Your Answer
Foreign Exchange
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Public sector
Companies
-8-
Financial Institutions & Banking_7
38.
Initial Quantum of resources of IMF were contributed by members according to :-
Quotas fixed for members
SDR fixed for members
Population
Wealth of the nation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
Zero Coupon Bonds are issued at a :Correct Answer Discount to face value
Your Answer
Discount to face value
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Irrevocable
Multiple Choice Single Answer
Question
Which of the following institution was set up as a subsidy of RBI
in 1964?
Correct Answer IDBI
Your Answer
IDBI
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer
Planned Savings
Multiple Choice Multiple Answer
Question
IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Your Answer
By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
True/False
Question
HDFC was set up by NHB.
-1 -
Financial Institutions & Banking_7
Correct Answer False
Your Answer
False
True/False
Question
IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer
False
Multiple Choice Multiple Answer
Question
Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer
Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question
Post Offices are popular for mobilizing small savings of the
public due to :Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer
Wide network , Tax concessions
True/False
Question
In case of T-Bills potential investors have to put in competitive
bids.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
The apex institution in the field of foreign trade in India is :Correct Answer EXIM Bank
Your Answer
EXIM Bank
Multiple Choice Single Answer
Question
NABARD was established on the recommendations of :Correct Answer CRAFICARD
Your Answer
CRAFICARD
Select The Blank
-2 -
Financial Institutions & Banking_7
Question
Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer
Six months or less
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Multiple Answer
Question
R B I issues currency notes against the security of:Correct Answer Gold bullion , Foreign securities , GOI securities
Your Answer
Gold bullion , Foreign securities , GOI securities
Select The Blank
Question
AFC's membership consists of commercial, cooperative banks
and DFIs including ________.
Correct Answer EXIM bank
Your Answer
EXIM bank
Multiple Choice Single Answer
Question
SIDCs & SIICs give loans ,guarantees & :Correct Answer Lease finance
Your Answer
Lease finance
Multiple Choice Multiple Answer
Question
Bonds issued by institutions through SPVs to execute
infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer
SSN Nigam Ltd , MSR Dev.Corporation , MKV Dev. Corporation.
Select The Blank
Question
SCICI provides domestic & foreign loans for capital equipment
and________ services.
Correct Answer Technical
Your Answer
Technical
-3 -
Financial Institutions & Banking_7
Multiple Choice Single Answer
Question
Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer
Usance promissory note
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
Select The Blank
Question
The Premium of ________ is obtained through obligatory
reinsurance premium.
Correct Answer GIC
Your Answer
GIC
Multiple Choice Multiple Answer
Question
A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power , Drawing power
Multiple Choice Multiple Answer
Question
The main objective of ICICI was :Correct Answer To augment export finance in India , To channelise World Bank's
funds to industries in India , To help in building up a Capital
Market in India
Your Answer
To augment export finance in India , To channelise World Bank's
funds to industries in India , To help in building up a Capital
Market in India
Select The Blank
Question
The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Single Answer
-4 -
Financial Institutions & Banking_7
Question
A company issues CP to save on :-
Correct Answer Interest cost
Your Answer
Interest cost
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Granting lines of Credit , Handling foreign currency , Handling
Doc. credits
Your Answer
Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Multiple Choice Single Answer
Question
Commercial Papers are issued by :Correct Answer Corporates
Your Answer
Corporates
True/False
Question
The currency notes issued by RBI are legal tender everywhere in
India without any limit.
Correct Answer True
Your Answer
True
Select The Blank
Question
The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer
Negotiation
True/False
Question
NIDHIS are Trading Organisations.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
From time to time RBI has issued :Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds
Your Answer
Straight coupon bonds , Inflation linked bonds , Zero coupon
-5 -
Financial Institutions & Banking_7
bonds
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Multiple Choice Single Answer
Question
DICGC also provides :Correct Answer Security to deposits
Your Answer
Guarantee to banks
Match The Following
Question
Correct Answer
Your Answer
Small Savings
Chit Funds
Chit Funds
Gen.Insurance
NICo of India Ltd.
NICo of India Ltd.
Life Insurance
LIC of India Ltd
LIC of India Ltd
Mutual fund
UTI
UTI
Select The Blank
Question
Financial markets are the centres that provide facilities for
buying and selling of ________.
Correct Answer Financial claims and services
Your Answer
Goods and services
Multiple Choice Multiple Answer
Question
Tourism promotes :Correct Answer Credit Card Business , International remittances , Travellers'
Cheques
Your Answer
Credit Card Business , International remittances , Travellers'
Cheques
Multiple Choice Multiple Answer
Question
The major area of AFC's specialisation included Crop Production
as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
-6 -
Financial Institutions & Banking_7
Your Answer
Crop Planning , Plant Protection , Farm Management
True/False
Question
CP is a usance promissory note hence it can be negotiated by
endorsement & delivery.
Correct Answer True
Your Answer
False
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
In a Bank, the investment decisions are taken at ________ level.
Correct Answer Head Office
Your Answer
Head Office
Match The Following
Question
Correct Answer
Your Answer
NABARD
Rural Development
Rural Development
AFC Ltd
Consultancy
Consultancy
HUDCO
Housing
Housing
-7 -
Financial Institutions & Banking_7
NCDC
True/False
Question
Development of
Cooperatives
Development of
Cooperatives
Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
NonBanking Financial Companies are :Correct Answer Financial institutions
Your Answer
Financial institutions
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder is
contained in :Correct Answer SGL pass book
Your Answer
SGL pass book
-8 -
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
True
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Confirmed
Select The Blank
Question
The ________ of NABARD covers release of refinance without
prior sanction for refinance limit.
Correct Answer ARS
Your Answer
CFSF
True/ False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
True/False
Question
Development financial institutions primarily lend to Agriculture
sector.
Correct Answer False
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Development financial
institutions
IFCI
Banking System
Organised sector
Banking System
IFCI
Unorganised sector
Indigenous banks
Indigenous banks
Mutual funds
UTI
UTI
Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer
Paid-up
Select The Blank
Question
Development financial institutions have been established to cater
to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer
Short term financial needs
Select The Blank
Question
General insurance policies are genarally issued for ________
year.
Correct Answer One
Your Answer
Ten
True/False
Question
PFC has been persuading State Governments restructuring of
their power sector to make them viable.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
RBI was established under the:Correct Answer RBI Act
Your Answer
Banking Regulation Act
Multiple Choice Single Answer
Question
Development Financial institutions include :Correct Answer State financial institutions
Your Answer
Commercial banks
Multiple Choice Single Answer
Question
The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer
Money markets
True/False
Question
NIDHIS are Trading Organisations.
Correct Answer False
Your Answer
True
True/False
Question
Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
The apex institution in the field of Industrial Development is :Correct Answer IDBI
Your Answer
IDBI
Multiple Choice Single Answer
Question
Zero Coupon Bonds are issued at a :Correct Answer Discount to face value
Your Answer
Discount to face value
Multiple Choice Multiple Answer
Question
SIDBI provides :Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer
Financial support to SSIDC
Multiple Choice Multiple Answer
Question
R B I conducts monetary control by way of O M O in :-
Correct Answer Treasury bills , State /central Government Securities
Your Answer
Treasury bills , Ways and means advances , TOD
Select The Blank
Question
SCICI provides domestic & foreign loans for capital equipment
and________ services.
Correct Answer Technical
Your Answer
After sales
Multiple Choice Single Answer
Question
The organised financial system includes :Correct Answer Commercial banks
Your Answer
Financial companies
True/False
Question
The overdraft facility is also known as Cash credit facility.
Correct Answer True
Your Answer
True
True/False
Question
IDA does not lend to countries that are not in a position to
borrow from IBRD.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Multiple Answer
Question
Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer
Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :-
Correct Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
Your Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
Multiple Choice Multiple Answer
Question
Tourism promotes :Correct Answer International remittances , Travellers' Cheques , Credit Card
Business
Your Answer
Credit Card Business , International remittances , Travellers'
Cheques
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder is
contained in :Correct Answer SGL pass book
Your Answer
NSE
Select The Blank
Question
The Premium of ________ is obtained through obligatory
reinsurance premium.
Correct Answer GIC
Your Answer
OF&GICO Ltd.
Multiple Choice Single Answer
Question
IDBI introduced Automatic Refinance Scheme in the year :Correct Answer 1978
Your Answer
1975
Multiple Choice Multiple Answer
Question
ECGC Board comprises of Directors representing :Correct Answer Government , Banking/Insurance , Trade/Industry
Your Answer
Government , Banking/Insurance , Trade/Industry
Multiple Choice Single Answer
Question
Cetificate of deposit are issued by
Correct Answer Banks
Your Answer
Banks
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Select The Blank
Question
Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer
Long term returns
Multiple Choice Multiple Answer
Question
DFHI was set up jointly by :Correct Answer RBI , Banks , All India Fis
Your Answer
RBI , All India Fis , SEBI
Match The Following
Question
Correct Answer
Your Answer
Small Savings
Chit Funds
HDFC
Gen.Insurance
NICo of India Ltd.
UTI
Life Insurance
LIC of India Ltd
LIC of India Ltd
Mutual fund
UTI
Chit Funds
Multiple Choice Single Answer
Question
Corporate Debentures are :Correct Answer Long term debt instruments
Your Answer
Short term deposit receipts
True/False
Question
HDFC was set up by NHB.
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer
At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question
A record of the holdings of GOI dated securities of each holder is
contained in :Correct Answer SGL pass book
Your Answer
SGL pass book
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
HUDCO
Select The Blank
Question
Financial markets are the centres that provide facilities for
buying and selling of ________.
Correct Answer Financial claims and services
Your Answer
Fixed assets
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0.05
Multiple Choice Single Answer
Question
A company issues CP to save on :Correct Answer Interest cost
Your Answer
Taxes
Select The Blank
Question
The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer
Premium
Multiple Choice Single Answer
Question
Treasury bills are issued by :Correct Answer RBI
Your Answer
RBI
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer
Legal Tender
True/False
Question
Cancellation of a Guarantee is known as "revocation".
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
IFCI raises its funds by way of :Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from IDBI
Your Answer
Issuing bonds , Issuing shares
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
Cetificate of deposit are issued by
Correct Answer Banks
Your Answer
Corporates
Match The Following
Question
Correct Answer
Your Answer
Film Finance
FFC
Chit Funds
Rural Electrification
REC
REC
Pure NBFI
UTI
UTI
Specialised NBFI
HDFC
HDFC
Multiple Choice Single Answer
Question
SFCs suffer from a very high ratio of:Correct Answer Overdues
Your Answer
Overdues
Multiple Choice Multiple Answer
Question
Bonds issued by institutions through SPVs to execute
infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer
Konkan Railway Corporation , MSR Dev.Corporation
Multiple Choice Multiple Answer
Question
EXIM Bank can raise resources by:Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from
International Financial Institutions
Your Answer
Issuing bonds , Borrowing from RBI
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer
Planned Savings
True/False
Question
CPs have to be compulsorily rated.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
The major area of AFC's specialisation included Crop Production
as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer
Crop Planning , Plant Protection
Multiple Choice Multiple Answer
Question
EXIM Bank provides financial assistance to:-
Correct Answer Indian Companies , Commercial Banks , Foreign Governments
Your Answer
Investment trusts , Indian Companies
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Client's Report
Multiple Choice Single Answer
Question
The ultimate source of money in India is:Correct Answer RBI
Your Answer
RBI
True/False
Question
IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Credit Risk under NEF Scheme of SIDBI is borne by :Correct Answer Central Govt & SIDBI
Your Answer
SIDBI
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Deposits
Multiple Choice Single Answer
Question
FIs can be classified into two categories depending on the basis
of incorporation and :Correct Answer Operation
Your Answer
Operation
Select The Blank
Question
Financial markets are the centres that provide facilities for
buying and selling of ________.
Correct Answer Financial claims and services
Your Answer
Financial claims and services
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Audited Balance Sheet , Trial Balance , P/L statement
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
Your Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
True/False
Question
EXIM Bank provides Lines of Credit to other nations for Indian
exports.
Correct Answer True
Your Answer
True
True/False
Question
In case of T-Bills potential investors have to put in competitive
bids.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Which of the following services is not provided by Commercial
banks?
Correct Answer Deposit Insurance
Your Answer
Deposit Insurance
True/False
Question
NABARD provides Refinance for Marketing of Crops.
Correct Answer True
Your Answer
True
Select The Blank
Question
Legally speaking Pass Through Certificates are ________ and
are tradeable freely.
Correct Answer Promissory notes
Your Answer
Bills of Exchange
Select The Blank
Question
The loans under________ are based on Poverty Reduction
Strategy Paper.
Correct Answer PRGF
Your Answer
RPFG
Select The Blank
Question
AFC's membership consists of commercial, cooperative banks
and DFIs including ________.
Correct Answer EXIM bank
Your Answer
EXIM bank
Match The Following
Question
Correct Answer
Your Answer
Largest borrower in the
world
IBRD
MIGA
International Monetary
Cooperation
IMF
PRGF
Prevention of crises
CCL
IBRD
Political insurance
MIGA
CFF
Multiple Choice Single Answer
Question
Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer
One year
Multiple Choice Single Answer
Question
The word ' Tranche ' is a French word which means :Correct Answer A Slice
Your Answer
A Slice
Multiple Choice Multiple Answer
Question
Basic Life insurance policies include :Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
Select The Blank
Question
The department handing ________ in the banks is known as the
Treasury.
Correct Answer Investments
Your Answer
Cash & currency
True/False
Question
State loans are much less liquid than GOI Securities.
Correct Answer True
Your Answer
True
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income
groups.
Correct Answer Weaker sections
Your Answer
Salaried persons
Multiple Choice Multiple Answer
Question
The objective NEF Scheme of SIDBI is to provide equity support
to :Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
units in tiny & small scale sector
Your Answer
Existing Large Industrial Units , New Units in tiny Sector , New
Units in Small Sector
Multiple Choice Multiple Answer
Question
Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer
PSUs , Private Sector Cos. , FIIs
Select The Blank
Question
NABARDs Criteria for Refinance covers Technical ________ of
the project.
Correct Answer Feasibility
Your Answer
Viability
Multiple Choice Single Answer
Question
Treasury Bills are issued by the :Correct Answer RBI
Your Answer
Central Govt.
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
False
Select The Blank
Question
Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer
Post Offices
Multiple Choice Single Answer
Question
NonBanking Financial Companies are :Correct Answer Financial institutions
Your Answer
Manufacturing units
Multiple Choice Multiple Answer
Question
The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer
Money lenders , Indigenous bankers , Chit funds
True/False
Question
Most of the Indian PS Banks practice retail banking.
Correct Answer True
Your Answer
True
Select The Blank
Question
Secured Premium Notes are ________.
Correct Answer Debentures
Your Answer
Bonds
True/False
Question
No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer
False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market! is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well
as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government reg! ulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p;
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer &n! bsp; Rate of interest
Your Answer Rate of interest
Match The Following
Question
Correct Answer
Development financial institutions
IFCI
Organised sector
Banking System
Unorganised sector
Indigenous banks
Mutual funds
UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Your Answer
IFCI
Banking System
Indigenous banks
UTI
Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance
is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question
Correct Answer
NABARD
Rural Development
AFC Ltd
Consultancy
HUDCO
Housing
NCDC
Your Answer
Rural Development
Consultancy
Housing
Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
!
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well
as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question
Correct Answer
Development financial institutions
IFCI
Your Answer
IFCI
Organised sector
Banking System
Banking System
Unorganised sector
Indigenous banks
Indigenous banks
UTI
UTI
Mutual funds
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance
is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :-
Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
Select The Blank
Question Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer Post Offices
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
Match The Following
Question
Correct Answer
Corporates
NGOs
DFI
PSUs
RIL, HPCL
RIL, HPCL
CSP, CRY, PLAN
CSP, CRY, PLAN
IDBI, IFCI, ICICI
IDBI, IFCI, ICICI
NTPC, NHPC, Coal India NTPC, NHPC, Coal India
Your Answer
Multiple Choice Multiple Answer
Question DFHI was set up jointly by :Correct Answer RBI , Banks , All India Fis
Your Answer RBI , Banks , All India Fis , SEBI
Select The Blank
Question In addition to IFCI and ________ the Soft Loan Scheme for modernisation is
also undertaken by IDBI.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Investment on a monthly basis and repayment on due date
is made in :Correct Answer Recurring deposit
Your Answer Term deposit account
Multiple Choice Multiple Answer
Question Tourism promotes :Correct Answer Credit Card Business , International remittances ,
Travellers' Cheques
Your Answer Credit Card Business , International remittances ,
Travellers' Cheques
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Taxes
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance
is :Correct Answer Overdraft
Your Answer Overdraft
Select The Blank
Question AFC's membership consists of commercial, cooperative
banks and DFIs including ________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Multiple Answer
Question Functions of R.O. do not cover :Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
Your Answer Liaison with RBI/IBA , Issuing Lending Policy
Select The Blank
Question The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
Correct Answer ARS
Your Answer CFSF
Select The Blank
Question The ________ regulation makes the banks the largest
investor in the GOI securities.
Correct Answer SLR
Your Answer SLR
Multiple Choice Multiple Answer
Question Post Offices are popular for mobilizing small savings of
the public due to :Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer Wide network , Tax concessions , Saftey of funds
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question SIDBI commenced its operations from :Correct Answer April 2,1990
Your Answer April 2,1990
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Financial companies
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years
Multiple Choice Multiple Answer
Question The prominent Bond issuing PSU are :Correct Answer MTNL , NTPC , SAIL
Your Answer MTNL , NTPC , SAIL
Match The Following
Question
Correct Answer
Your Answer
Hill ,Tribal Area development
Area Development
Area Development
Brackish Water
Fisheries Fisheries
Aquaculture ,
Ploughing, weeding, transplantation
Seasonal
Agricultural Operations
Market Yards, Storage &
Warehousing
Agricultural Marketing
Irrigation & Drainage
Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question The financial Assistance provided by the IMF enables member countries to
:Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer Rebuild resources , Stabilise currencies , Undertake specific projects
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
Multiple Choice Single Answer
Question IDBI has helped in the establishment of :Correct Answer EXIM Bank
Your Answer ICICI
Select The Blank
Question NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer Paid-up
True/False
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer False
Select The Blank
Question In a Bank, the investment decisions are taken at ________ level.
Correct Answer Head Office
Your Answer Head Office
Multiple Choice Single Answer
Question RBI is also referred to as :Correct Answer Apex Bank
Your Answer Apex Bank
Multiple Choice Multiple Answer
Question EXIM Bank can raise resources by:Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International Financial Institutions
Multiple Choice Single Answer
Question PFC is committed to the integrated development of :Correct Answer Power
Your Answer Power
True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question SIDBI provides :Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer Refinance , Financial support to SSIDC , Cash Credit facilities
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Other than Tourism, International funds remittances comprise of :Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
Your Answer Payments of Royalty , Travel related payments
True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer False
Select The Blank
Question HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer Planned Savings
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
Select The Blank
Question Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer Portfolio management
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer True
Your Answer True
True/False
Question Non bank financial institutions undertake fund and non fund based activities.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Functions of R.O. of a bank include :Correct Answer Inspection/audit , Control on branches , Grant loans/advances
Your Answer Inspection/audit , Control on branches , Grant loans/advances
Multiple Choice Multiple Answer
Question Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit
Select The Blank
Question Secured Premium Notes are ________.
Correct Answer Debentures
Your Answer Debentures
Select The Blank
Question Syndication involves ________ sanction.
Correct Answer In principle
Your Answer Funded
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning
Your Answer
Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
FEDAI
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
True
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
True/False
Power
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
False
Match The Following
Question
Insurance of all
employees of a Firm
Correct Answer
Your Answer
Group Insurance
Group Insurance
Premium Throughout Life Whole Life
Whole Life
Fixed Period Insurance
Endowment
Endowment
Insurance of ocean Cargo Marine Insurance
Marine Insurance
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
Mortgage Loans are loans against property.
Correct Answer True
Your Answer
True
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Revocable
Multiple Choice Single Answer
Question
Liabilities of Insurance Cos are mostly :Correct Answer Long term
Your Answer
Long term
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0.05
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year :Correct Answer 1965
Your Answer
1975
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Banking Regulation Act,1949
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by : Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
The first development Bank of India, established in 1948 was :Correct Answer IFCI
Your Answer
IFCI
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over three years
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Audited Balance Sheet , Trial Balance , P/L statement
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Treasury Bills are issued by the :Correct Answer RBI
Your Answer
RBI
Multiple Choice Single Answer
Question
Account where lump sum investment is made for specific period
is :Correct Answer Term Deposit account
Your Answer
Term Deposit account
Multiple Choice Single Answer
Question
The apex institution in the field of foreign trade in India is :Correct Answer EXIM Bank
Your Answer
EXIM Bank
Multiple Choice Multiple Answ er
Question
Basic Life insurance policies include :Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :-
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Lease or hire purchase finance , Consultancy & managerial
services , Rural credit activities
Select The Blank
Question
Syndication of Loans Globally does not involve any funds as it is
________ activity.
Correct Answer Non-fund based
Your Answer
Non-fund based
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
EFF
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
Global Banking
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Inter Bank Call Money
Markets
Correct Answer
Your Answer
BRs, Call Money Receipts Currencies
Money Market Instuments CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market
Instruments
Shares
Shares
Debt Market Instruments
GOI Securities ,Bonds
Shares
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income
groups.
Correct Answer Weaker sections
Your Answer
Weaker sections
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Select The Blank
Question
The repayment holiday period is also known as ________
period.
Correct Answer Moratorium
Your Answer
Moratorium
Multiple Choice Single Answer
Question
A non-scheduled bank does not deal in :Correct Answer Foreign Exchange
Your Answer
Foreign Exchange
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Public sector
Companies
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
The Shipping Credit and Investment Company of India Ltd. has
changed its name to ________ effective from October 1992.
Correct Answer
SCICI Ltd
Your Answer
SCICI Ltd
Select The Blank
Question
AFC's membership consists of commercial, cooperative banks and DFIs
including ________.
Correct Answer
EXIM bank
Your Answer
EXIM bank
Multiple Choice Single Answer
Question
Financi al institutions deal in :Correct Answer
Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
The lender of the last resort to the market! is the :Correct Answer
RBI
Your Answer
RBI
Select The Blank
Question
One of the objectives of NHB is to augment the ________ resources
for the housing sector.
Correct Answer
Financial
Your Answer
Financial
Multiple Choice Multiple Answer
Question
IDA lends to poor countries :Correct Answer
By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Your Answer
By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Multiple Choice Single Answer
Question
A company issues CP to save on : Correct Answer
Interest cost
Your Answer
Interest cost
True/False
Question
PFC has been persuading State Governments restructuring of their
power sector to make them viable.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The ultimate source of money in India is:Correct Answer
RBI
Your Answer
RBI
True/False
Question
The SFCs also borrow from SIDBI & IDBI.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
RBI was established under the:Correct Answer
RBI Act
Your Answer
RBI Act
Multiple Choice Multiple Answer
Question
The major area of AFC's specialisation included Crop Production as
well a! s:Correct Answer
Crop Planning , Plant Protection , Farm Management
Your Answer
Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question
A member's IMF Quota determines its : Correct Answer
Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power , Drawing power
Select The Blank
Question
Period of Holiday Insurance is ________.
Correct Answer
Six months or less
Your Answer
Three years
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by : Correct Answer
Government regulation and control
Your Answer
Government reg! ulation and control
Multiple Choice Single Answer
Question
Cetificate of deposit are issued by : Correct Answer
Banks
Your Answer
Banks
True/False
Question
The bids for T-Bills are on price/interest basis.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The unorganised financial system includes : Correct Answer
Indigenous bankers
Your Answer
Indigenous bankers
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer
Over one year
Your Answer
Over one year
Multiple Choice Multiple Answer
Question
The general insurance business can be :Correct Answer
Marine insurance , Fire insurance , Miscellaneous
Your Answer
Fire insurance , Miscellaneous , Marine insurance
True/False
Question
NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
The unorganised financial system comprises of :Correct Answer
Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer
Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
&nbs! p; Correct Answer
True
Your Answer
True
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer
Weaker sections
Your Answer
Weaker sections
Multiple Choice Single Answer
Question
Development Financial institutions include : Correct Answer
State financial institutions
Your Answer
State financial institutions
Multiple Choice Single Answer
Question
Money Markets Instruments have a maturity of less than : Correct Answer
One year
Your Answer
One year
Select The Blank
Question
The price in financial markets is known as ________.
Correct Answer &n! bsp; Rate of interest
Your Answer
Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question
The HDFC was set up in 1977 by the ________.
Correct Answer
ICICI
Your Answer
ICICI
Multiple Choice Single Answer
Question
Certificate of deposit is a :Correct Answer
Usance promissory note
Your Answer
Term Deposit Receipt
True/False
Question
A Bill of Exchange is negotiable.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Commercial Papers are issued by :Correct Answer
Corporates
Your Answer
Corporates
Multiple Choice Single Answer
Question
A current account where the customer can withdraw more than the
balance is :Correct Answer
Overdraft
Your Answer
Overdraft
Multiple Choice Multiple Answer
Question
The loans of finance companies are generally :Correct Answer
At high interest , Unsecured , Based on borrowers worth
Your Answer
At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question
For a focus on the SSI Sector in 1986 IDBI created :&n! bsp; Correct Answer
SIDF
Your Answer
SIDF
True/False
Question
Issuance of CD attracts reserve requirements.
Correct Answer
False
Your Answer
False
True/False
Question
Banks issue Guarant ees on behalf of their clients.
Correct Answer
True
Your Answer
True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question
Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
In case of a Life policy it is possible to withdraw from the
obligation to contribute further premium by :Correct Answer
Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Your Answer
Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Multiple Choice Single Answer
Question
The organised financial system includes :Correct Answer
Commercial banks
Your Answer
Commercial banks
Select The Blank
Question
The term ________ refers to the act of a bank extending finance to
the seller against a letter of credit.
Correct Answer
Negotiation
Your Answer
Negotiation
Multiple Choice Multiple Answer
Question
Functions of a Bank's H.O. include:Correct Answer
Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer
Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question
Bonds issued by institutions through SPVs to execute infrastructure
projects are :Correct Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Niga m Ltd
Select The Blank
Question
GIC raises funds to meet claims from ________.
Correct Answer
Premium collected
Your Answer
Premium collected
!
Multiple Choice Multiple Answer
Question
Treasuries could be either those of the :Correct Answer
PSUs , Private Sector Cos. , Govt.bodies
Your Answer
PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer
New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
Select The Blank
Question
Kisan Vikas Patra are issued through ________.
Correct Answer
Post Offices
Your Answer
Post Offices
Multiple Choice Single Answer
Question
For a focus on the SSI Sector in 1986 IDBI created :Correct Answer
SIDF
Your Answer
SIDF
Match The Following
Question Correct Answer Your Answer
Corporates RIL, HPCL RIL, HPCL
NGOs CASP, CRY, PLAN CASP, CRY, PLAN
DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI
PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India
Multiple Choice Multiple Answer
Question
DFHI was set up jointly by :Correct Answer
RBI , Banks , All India Fis
Your Answer
RBI , Banks , All India Fis , SEBI
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
Correct Answer
ICICI
Your Answer
ICICI
Multiple Choice Single Answer
Question
The unorganised financial system includes :Correct Answer
Indigenous bankers
Your Answer
Indigenous bankers
Multiple Choice Single Answer
Question
Investment on a monthly basis and repayment on due date
is made in :Correct Answer
Recurring deposit
Your Answer
Term deposit account
Multiple Choice Multiple Answer
Question
Tourism promotes :Correct Answer
Credit Card Business , International remittances ,
Travellers' Cheques
Your Answer
Credit Card Business , International rem ittances ,
Travellers' Cheques
Multiple Choice Single Answer
Question
A company issues CP to save on : Correct Answer
Interest cost
Your Answer
Taxes
Multiple Choice Single Answer
Question
A current account where the customer can withdraw more
than the balance is :Correct Answer
Overdraft
Your Answer
Overdraft
Select The Blank
Question
AFC's membership consists of commercial, cooperative
banks and DFIs including ________.
Correc t Answer
EXIM bank
Your Answer
EXIM bank
Multiple Choice Multiple Answer
Question
Functions of R.O. do not cover : Correct Answer
SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
Your Answer
Liaison with RBI/IBA , Issuing Lending Policy
Select The Blank
Question
The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
Correct Answer
ARS
Your Answer
CFSF
Select The Blank
Question
The ________ regulation makes the banks the largest
investor in the GOI securities.
Correct Answer
SLR
Your Answer
SLR
Multiple Choice Multiple Answer
Question
Post Offices are popular for mobilizing small savings of
the public due to :Correct Answer
Wide network , Tax concessions , Saftey of funds
Your Answer
Wide network , Tax concessions , Saftey of funds
True/False
Question
The SFCs also borrow from SIDBI & IDBI.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
SIDBI commenced its operations from : Correct Answer
April 2,1990
Your Answer
April 2,1990
Multiple Choice Single Answer
Question
The ultimate source of money in India is:Correct Answer
RBI
Your Answer
RBI
Multiple Choice Single Answer
Question
The organised financial system includes :Correct Answer
Commercial banks
Your Answer
Financial companies
Multiple Choice Multiple Answer
Question
IDA lends to poor countries :-
Correct Answer
By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
Your Answer
By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years
Multiple Choice Multiple Answer
Question
The prominent Bond issuing PSU are :Correct Answer
MTNL , NTPC , SAIL
Your Answer
MTNL , NTPC , SAIL
Match The Following
Question Correct Answer Your Answer
Hill ,Tribal Area development Area Development Area Development
Aquaculture ,Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation Seasonal Agricultural Operations
Irrigation & Drainage
Market Yards, Storage & Warehousing Agricultural Marketing
Agricultural Marketing
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer
True
Your Answer
False
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables
member countries to :Correct Answer
Rebuild resources , Stabilise currencies , Pay for
imports
Your Answer
Rebuild resources , Stabilise currencies , Undertake
specific projects
Multiple Choice Single Answer
Question
Cetificate of deposit are issued by : Correct Answer
Banks
Your Answer
Banks
Multiple Choice Single Answer
Question
IDBI has helped in the establishment of :Correct Answer
EXIM Bank
Your Answer
ICICI
Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer
Paid-up
Your Answer
Paid -up
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In a Bank, the investment decisions are taken at
________ level.
Correct Answer
Head Office
Your Answer
Head Office
Multiple Choice Single Answer
Question
RBI is also referred to as :Correct Answer
Apex Bank
Your Answer
Apex Bank
Multiple Choice Multiple Answer
Question
EXIM Bank can raise resources by:Correct Answer
Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
Your Answer
Borrowing from RBI , Borrowing from International
Financial Institutions
Multiple Choice Single Answer
Question
PFC is committed to the i ntegrated development of :Correct Answer
Power
Your Answer
Power
True/False
Question
PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
SIDBI provides :Correct Answer
Refinance , Rediscounting of Bills , Financial
support to SSIDC
Your Answer
Refinance , Financial support to SSIDC , Cash Credit
facilities
True/False
Question
Under MIGA the World bank offers various forms of
Political Insurance.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances
comprise of :Correct Answer
Donations/Charity , Payments of Salaries ,
Payments of Royalty
Your Answer
Payments of Royalty , Travel related payments
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer
True
Your Answer
False
Select The Blank
Question
HDFCs loans were linked up with________.
Correct Answer
Planned Savings
Your Answer
Planned Savings
True/False
Question
A Bill of Exchange is negotiable.
Correct Answer
True
Your Answer
True
True/False
Question
HDFC was set up by NHB.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Mutual Funds provide the benefits of ________.
Correct Answer
Portfolio management
Your Answer
Portfolio management
True/False
Question
In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer
True
Your Answer
True
True/False
Question
Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Functions of R.O. of a bank include : Correct Answer
Inspection/audit , Control on branches , Grant
loans/advances
Your Answer
Inspection/audit , Control on branches , Grant
loans/advances
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer
Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
Your Answer
Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit
Select The Blank
Question
Secured Premium Notes are ________.
Correct Answer
Debentures
Your Answer
Debentures
Select The Blank
Question
Syndication involves ________ sanction.
Correct Answer
In principle
Your Answer
Funded
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning
Your Answer
Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning
Multiple Choice Multiple Answer
Question
Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Your Answer
Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Select The Blank
Question
The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer
FEDAI
True/False
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer
True
True/False
Question
NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
PFC is committed to the integrated development of :Correct Answer Power
Your Answer
True/False
Power
Question
NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer
False
Match The Following
Question
Insurance of all
employees of a Firm
Correct Answer
Your Answer
Group Insurance
Group Insurance
Premium Throughout Life Whole Life
Whole Life
Fixed Period Insurance
Endowment
Endowment
Insurance of ocean Cargo Marine Insurance
Marine Insurance
Select The Blank
Question
DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer
Debt instruments
True/False
Question
Mortgage Loans are loans against property.
Correct Answer True
Your Answer
True
Select The Blank
Question
An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer
Revocable
Multiple Choice Single Answer
Question
Liabilities of Insurance Cos are mostly :Correct Answer Long term
Your Answer
Long term
Select The Blank
Question
As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer
0.05
Multiple Choice Single Answer
Question
Bills Rediscounting Scheme of IDBI was introduced in the year :Correct Answer 1965
Your Answer
1975
Multiple Choice Single Answer
Question
DFHI was incorporated under the :Correct Answer Companies Act, 1956
Your Answer
Banking Regulation Act,1949
Multiple Choice Single Answer
Question
The underdeveloped markets are characterised by : Correct Answer Government regulation and control
Your Answer
Government regulation and control
Multiple Choice Single Answer
Question
Financial institutions deal in :Correct Answer Financial assets
Your Answer
Financial assets
Multiple Choice Single Answer
Question
The first development Bank of India, established in 1948 was :Correct Answer IFCI
Your Answer
IFCI
True/False
Question
Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer
New Projects , Renovation , Modernisation
True/False
Question
SCICI is a member of the OTCEI.
Correct Answer True
Your Answer
True
Select The Blank
Question
The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer
NIICO Ltd.
Multiple Choice Single Answer
Question
IRBI was set up with a focus on :Correct Answer Sick Units
Your Answer
Sick Units
Multiple Choice Single Answer
Question
Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer
Over three years
Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer
Audited Balance Sheet , Trial Balance , P/L statement
True/False
Question
Banks lend to corporates directly.
Correct Answer True
Your Answer
True
True/False
Question
Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Treasury Bills are issued by the :Correct Answer RBI
Your Answer
RBI
Multiple Choice Single Answer
Question
Account where lump sum investment is made for specific period
is :Correct Answer Term Deposit account
Your Answer
Term Deposit account
Multiple Choice Single Answer
Question
The apex institution in the field of foreign trade in India is :Correct Answer EXIM Bank
Your Answer
EXIM Bank
Multiple Choice Multiple Answ er
Question
Basic Life insurance policies include :Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer
ICICI
Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :-
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services
Your Answer
Lease or hire purchase finance , Consultancy & managerial
services , Rural credit activities
Select The Blank
Question
Syndication of Loans Globally does not involve any funds as it is
________ activity.
Correct Answer Non-fund based
Your Answer
Non-fund based
Multiple Choice Multiple Answer
Question
Mutual fund has main entities like :Correct Answer Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
Select The Blank
Question
________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer
EFF
Multiple Choice Multiple Answer
Question
SFCs provide finance to :Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer
Corporates , Partnerships , Proprietary firms
Multiple Choice Single Answer
Question
The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :Correct Answer Wholesale Banking
Your Answer
Global Banking
Select The Blank
Question
The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer
Business
Multiple Choice Multiple Answer
Question
Credit Information report is also known as :Correct Answer Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
Match The Following
Question
Inter Bank Call Money
Markets
Correct Answer
Your Answer
BRs, Call Money Receipts Currencies
Money Market Instuments CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market
Instruments
Shares
Shares
Debt Market Instruments
GOI Securities ,Bonds
Shares
Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income
groups.
Correct Answer Weaker sections
Your Answer
Weaker sections
True/False
Question
Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member
countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer
Rebuild resources , Stabilise currencies , Pay for imports
Select The Blank
Question
The repayment holiday period is also known as ________
period.
Correct Answer Moratorium
Your Answer
Moratorium
Multiple Choice Single Answer
Question
A non-scheduled bank does not deal in :Correct Answer Foreign Exchange
Your Answer
Foreign Exchange
Multiple Choice Multiple Answer
Question
Prominent Institutional Investors are :Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Public sector
Companies
Financial Institutions & Banking_18
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has
changed its name to ________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd
Select The Blank
Question AFC's membership consists of commercial, cooperative banks and
DFIs including ________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Single Answer
Question Financial institutions deal in :Correct Answer Financial assets
Your Answer Financial assets
Multiple Choice Single Answer
Question The lender of the last resort to the market! is the :Correct Answer RBI
Your Answer RBI
Select The Blank
Question One of the objectives of NHB is to augment the ________
resources for the housing sector.
Correct Answer Financial
Your Answer Financial
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Interest cost
Page 1
Financial Institutions & Banking_18
True/False
Question PFC has been persuading State Governments restructuring of
their power sector to make them viable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:Correct Answer RBI Act
Your Answer RBI Act
Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production
as well a! s:Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management
Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power
Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years
Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :Correct Answer Government regulation and control
Your Answer Government reg! ulation and control
Page 2
Financial Institutions & Banking_18
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :Correct Answer Over one year
Your Answer Over one year
Multiple Choice Multiple Answer
Question The general insurance business can be :Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :Correct Answer Money lenders , Indigenous bankers , Lending pawn
brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural
Development.
&nbs! p; Correct Answer True
Your Answer True
Page 3
Financial Institutions & Banking_18
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income
groups.
Correct Answer Weaker sections
Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :Correct Answer State financial institutions
Your Answer State financial institutions
Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :Correct Answer One year
Your Answer One year
Select The Blank
Question The price in financial markets is known as ________.
Correct Answer &n! bsp; Rate of interest
Your Answer Rate of interest
Match The Following
Question Correct Answer Your Answer
Development financial institutions IFCI IFCI
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question Certificate of deposit is a :Correct Answer Usance promissory note
Page 4
Financial Institutions & Banking_18
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :Correct Answer Corporates
Your Answer Corporates
Multiple Choice Single Answer
Question A current account where the customer can withdraw more than
the balance is :Correct Answer Overdraft
Your Answer Overdraft
Multiple Choice Multiple Answer
Question The loans of finance companies are generally :Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :&n! bsp; Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
NABARD Rural Development Rural Development
Page 5
Financial Institutions & Banking_18
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In case of a Life policy it is possible to withdraw from the
obligation to contribute further premium by :Correct Answer Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Your Answer Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Commercial banks
Select The Blank
Question The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute
infrastructure projects are :Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN
Page 6
Financial Institutions & Banking_18
Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
!
Multiple Choice Multiple Answer
Question Treasuries could be either those of the :Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies
Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
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Page 7
Financial Institution and Banking
Topic
PageNo
organised sector
2
financial services
2
Indian financial system
3
commercial banks
4
development financial institutions
5
insurance companies
5
other public sector financial institutions
5
post office savings
5
mutual funds
5
non banking finanical institutions
6
Reserve bank of India
9
functions of RBI
9
banker to the government
10
bankers bank
10
supervising authority
10
exchange control authority
10
promoter of financial system
11
fiscal and monetary policy
12
open market operations
12
developmental financial institutions
17
industrial finance corporation of India
17
Industrial development bank of india - idbi
18
industrial credit and investment corporation of india Ltd - icici
19
irbi
20
sfcs
20
sidc and siics
20
state small industries development corporation (SSIDC)
21
power finance corporation (PFC)
21
financial services offered by the corporation
21
term loans
21
lease financing
22
direct discounting of bills
22
guarantee services
22
loan syndication
22
short term loan
22
institutional development services
22
utility development plans
23
financial assistance for power sector studies
23
reform and restructuring related studies
23
reform and restructuring of SEBs
23
OFAP
23
export import bank of india
24
national bank of agriculture and rural development
24
genesis of NABARD
24
ARC
24
GOI
24
ACD
24
CRAFICARD
24
types of refinance facilities
26
interest rates
26
production credits
28
financing weavers
28
OSAO
29
refinance for marketing of crops
other refinance facilities
long term loans to state governments
investment credit ( medium and long term) refinance
shipping credit and investment company of India (SCICI)
principal activities
agricultural finance consultancy ltd (AFC)
area of specialisation
surveys and studies
National co-operative development corporation (NCDC)
finance and financing
procedure of santion / disbursal of assistance
promotional and development role
marketing
agricultural inputs
agro-processing industries
storage and cold storage
program for weaker sections
consumer business
area based integrated co-operative development project
national housing bank (NHB)
housing and urban development corporation (HUDCO)
housing development finance corporation (HDFC)
land development banks
banking sector
retail banking
cash credit
safe custody services for safe keeping of important documents
acceptance of deposits from non resident indians
difference between retail banking and wholesale banking
global banking
scheduled bank in india
commercial bank and cooperative bank
public sector banks
private sector banks
bank accounts
deposit account
lump sum investment
periodic investment
cash credit
loan syndication
repayment period
bill
discount
remittance
letter of credit
bank guarantee
negotiation
cash reserve ratio
statutory reserve ratio
note pertaining to reserve ratio
clearing operation
daily product basis
monthly product basis
repayment holiday
credit instruments
29
30
30
31
33
33
34
36
38
38
39
40
40
40
40
41
41
41
41
42
42
44
44
45
49
49
50
50
51
51
51
52
52
52
52
53
53
54
54
54
54
54
55
55
55
55
56
56
56
57
57
57
57
58
58
59
negotiable instruments
acceptance
credit report
syndication
custodial services
security
foreign exchange
securitisation
international banking
international trade
tourism
remittance of funds from one place to another place besides tourism
syndication of loans global for corporate houses
foreign exchange management
profile of a bank
branch banking
different layers of banking
duties of an international banking department
exchange operations
administrative functions in a bank
administrative units
banking business
Deposit insurance and credit guarantee corporation (DICGC)
export credit guarantee corporation (ECGC)
indian money market
instrument
comercial paper
certificates of deposit
treasury bills
short term debentures
bill of exchange
long term debt instruments
government of India dated securities (GOISEC)
inflation linked bonds
zero coupon bonds
state government securities (state loans)
public sector undertaking bonds (PSU Bonds)
bonds of public financial institutions (PFI)
corporate debentures
Pass through certificates (PTC)
issuers
government of India and other sovereign bodies
banks and development financial institutions
public sector undertaking (PSU )
private sector companies
government owned or quasi governement non corporate entities
investors
banks
insurance companies
provident funds
mutual funds
trusts
corporate treasuries
foreign institutional investors
securities trading corporation of india (STCI)
discount and finance house of india
59
59
59
59
60
60
60
60
60
61
61
61
61
62
62
62
62
63
63
63
64
65
66
67
73
73
74
75
75
75
75
76
76
77
77
78
78
78
79
79
79
80
80
81
81
82
82
83
84
84
86
86
87
87
88
88
non banking financial intermediaries
LIC
general nature of insurance companies
instroduction of Life Insurance corporations
types and structure of insurance plans
general insurance corporation
unit trust of india
provident / pension funds
post offices
Non bank financial companies (NBFC)
investment companies
loan companies
chit funds
NIDHIS
hire purchase finance companies
equipment leasing finance companies
international monetary fund (IMF)
quotas
concessional and non concessional lending
poverty reduction and growth facility (PRGF)
stand by arrangments (SBA)
extended fund facility (EFF)
supplement reserve facility (SRF)
contingent credit lines (CCL)
compensatory financing facility (CFF)
emergency assistance
special drawing rights
the international bank for reconstruction and development
world bank
international finance corporation
international development assiciation (IDA)
the bank for international settlements
regional development agencies
RBI
non performing assets
out of order status
overdue
income recognition
reversal of income
appropriation of recovery in NPA
NPA
sub standard Assets
subtful assets
loss assets
account with temporary deficiancies
upgradation of loan accounts classified as NPA
account regularised near about the balance sheet date
agricultural advances
government guaranteed advances
restructuring rescheduling of loans
upgradation of restructured accounts
corporate debt restructuring (CDR systems)
CDR
stand still clause
category 2 CDR system
projects under implementation
93
93
93
93
94
96
98
99
99
99
100
102
102
103
104
104
109
109
113
113
114
114
114
114
114
114
114
115
115
115
116
116
116
119
120
121
121
121
122
122
122
123
124
124
124
125
125
126
128
128
130
131
131
138
139
142
assest classification
142
income recognition
144
provisioning
145
availability of security / net worth of borrower / guarantor
145
take-out finance
145
post shipment supplier credit
145
export project finance
146
advances under rehabiliation approved by BIFR/TLI
146
provisioning norms general
146
sub standard Assets
148
leased assets
148
advances
150
advances covered by CGTSI guarantee
151
take-out finance
152
reserve for exchange rate fluctuations account (RERFA)
152
country risk
153
securitisation company (SC) / reconstruction company (RC)
154
writing off of NPA
155
direct finance to farmers for agricultural purposes
156
purchase of agricultural implements and machinery
156
development of irrigation potential through
156
lending to priority sector
158
priority sector advances
161
direct finance to farmers for agricultural purposes
161
indirect finance to agriculture
163
small scale and ancillary industries
166
tiny enterprises
166
small scale service and business enterprises(SSSBE)
166
industrial estates
167
KVI sector
167
small road and water transport operators (SRWTO)
167
retail trade
168
small business
168
professional and self emplyed persons
168
state sponsored organisations for scheduled castes / scheduled tribes
169
education
170
housing
170
compsumption loans
170
loans to self help groups (SHG)/NGO/MICROEDIT
170
food and agro based processing sector
171
software industry
171
venture capital
171
investments in special bonds
173
HUDCO
174
NSIC
174
NHB
174
lines of credit
174
bills rediscounting
175
deposits in rural infrastructure development (RIDF)
175
leasing and hire purchase
175
targets for priority sector lending by scheduled commercial banks 177
scheduled commercial banks excluding foreign banks
177
direct / indirect agricultural lending
177
small scale industries
178
DRI advances
178
Weaker sections
178
Targets for foreign banks
rural infrastructure developments fund (RIDF )
common guidelines for priority sector advances
application forms
mode of disbursement of loan
repayment schedule
rates of interest
penal interest
inspection charges
insurance against fire and other risks
other charges
photographs of borrowers
discretionary powers
machinery to look into complants
amendments
178
180
183
183
184
184
184
185
185
185
186
186
186
186
186
Financial Institutions & Banking_20
Select The Blank
Question Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer Post Offices
Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :Correct Answer SIDF
Your Answer SIDF
Match The Following
Question Correct Answer Your Answer
Corporates RIL, HPCL RIL, HPCL
NGOs CASP, CRY, PLAN CASP, CRY, PLAN
DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI
PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India
Multiple Choice Multiple Answer
Question DFHI was set up jointly by :Correct Answer RBI , Banks , All India Fis
Your Answer RBI , Banks , All India Fis , SEBI
Select The Blank
Question In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer ICICI
Multiple Choice Single Answer
Question The unorganised financial system includes :Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Investment on a monthly basis and repayment on due date
is made in :Correct Answer Recurring deposit
Page 1
Financial Institutions & Banking_20
Your Answer Term deposit account
Multiple Choice Multiple Answer
Question Tourism promotes :Correct Answer Credit Card Business , International remittances ,
Travellers' Cheques
Your Answer Credit Card Business , International remittances ,
Travellers' Cheques
Multiple Choice Single Answer
Question A company issues CP to save on :Correct Answer Interest cost
Your Answer Taxes
Multiple Choice Single Answer
Question A current account where the customer can withdraw more
than the balance is :Correct Answer Overdraft
Your Answer Overdraft
Select The Blank
Question AFC's membership consists of commercial, cooperative
banks and DFIs including ________.
Correct Answer EXIM bank
Your Answer EXIM bank
Multiple Choice Multiple Answer
Question Functions of R.O. do not cover :Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
Your Answer Liaison with RBI/IBA , Issuing Lending Policy
Select The Blank
Question The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
Correct Answer ARS
Your Answer CFSF
Select The Blank
Question The ________ regulation makes the banks the largest
investor in the GOI securities.
Correct Answer SLR
Page 2
Financial Institutions & Banking_20
Your Answer SLR
Multiple Choice Multiple Answer
Question Post Offices are popular for mobilizing small savings of
the public due to :Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer Wide network , Tax concessions , Saftey of funds
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question SIDBI commenced its operations from :Correct Answer April 2,1990
Your Answer April 2,1990
Multiple Choice Single Answer
Question The ultimate source of money in India is:Correct Answer RBI
Your Answer RBI
Multiple Choice Single Answer
Question The organised financial system includes :Correct Answer Commercial banks
Your Answer Financial companies
Multiple Choice Multiple Answer
Question IDA lends to poor countries :Correct Answer By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years
Multiple Choice Multiple Answer
Question The prominent Bond issuing PSU are :Correct Answer MTNL , NTPC , SAIL
Your Answer MTNL , NTPC , SAIL
Match The Following
Question Correct Answer Your Answer
Page 3
Financial Institutions & Banking_20
Hill ,Tribal Area development Area Development Area Development
Aquaculture ,Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation Seasonal Agricultural Operations
Irrigation & Drainage
Market Yards, Storage & Warehousing Agricultural Marketing
Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question The financial Assistance provided by the IMF enables
member countries to :Correct Answer Rebuild resources , Stabilise currencies , Pay for
imports
Your Answer Rebuild resources , Stabilise currencies , Undertake
specific projects
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :Correct Answer Banks
Your Answer Banks
Multiple Choice Single Answer
Question IDBI has helped in the establishment of :Correct Answer EXIM Bank
Your Answer ICICI
Select The Blank
Question NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer Paid-up
True/False
Page 4
Financial Institutions & Banking_20
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer False
Select The Blank
Question In a Bank, the investment decisions are taken at
________ level.
Correct Answer Head Office
Your Answer Head Office
Multiple Choice Single Answer
Question RBI is also referred to as :Correct Answer Apex Bank
Your Answer Apex Bank
Multiple Choice Multiple Answer
Question EXIM Bank can raise resources by:Correct Answer Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International
Financial Institutions
Multiple Choice Single Answer
Question PFC is committed to the integrated development of :Correct Answer Power
Your Answer Power
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question SIDBI provides :Correct Answer Refinance , Rediscounting of Bills , Financial
support to SSIDC
Your Answer Refinance , Financial support to SSIDC , Cash Credit
facilities
True/False
Question Under MIGA the World bank offers various forms of
Page 5
Financial Institutions & Banking_20
Political Insurance.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Other than Tourism, International funds remittances
comprise of :Correct Answer Donations/Charity , Payments of Salaries ,
Payments of Royalty
Your Answer Payments of Royalty , Travel related payments
True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer False
Select The Blank
Question HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer Planned Savings
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False
Select The Blank
Question Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer Portfolio management
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer True
Your Answer True
Page 6
Financial Institutions & Banking_20
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Functions of R.O. of a bank include :Correct Answer Inspection/audit , Control on branches , Grant
loans/advances
Your Answer Inspection/audit , Control on branches , Grant
loans/advances
Multiple Choice Multiple Answer
Question Duties of an International Banking unit cover :Correct Answer Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit
Select The Blank
Question Secured Premium Notes are ________.
Correct Answer Debentures
Your Answer Debentures
Select The Blank
Question Syndication involves ________ sanction.
Correct Answer In principle
Your Answer Funded
Page 7
ASSIGNMENTS
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Match The Following
Question Correct Answer Your Answer
Project Financing Help improving Corporate Return on Equity Industrial Finance
Corporation of India
Finance in international financial markets Issue of Euro bonds Issue of Euro bonds
International financial institutions World Bank Increasing emphasis on the Private
initiative
Policy of Liberalisation, Privatisation and Globalisation Increasing emphasis on the
Private initiative Help improving Corporate Return on Equity
Multiple Choice Multiple Answer
Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Auditors report , Balance Sheet
Multiple Choice Single Answer
Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Select The Blank
Question The Project Cycle should be in the ________ order
Correct Answer Identification of Project - Project Appraisal - Negotiations for loans
Your Answer Identification of Project - Project Appraisal - Negotiations for loans
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The industrial concern earned profits by increasing the sales volume under
the :Correct Answer Sales concept
Your Answer Marketing concept
True/False
Question Cost and time overrun of the project may lead to loss on account of lost
market opportunities.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Initiative , Too ambitious promoters
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Chain ratio Relationship , Exponential Relationship
True/False
Question Financial analysis based on accounting ratios will give mis-leading results if
the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To indicate the
financial strength and weakness of the business , To help to understand the changes in
assets as well as asset sources which are not revealed by the income statement
Your Answer To indicate the financial strength and weakness of the business , To help
to understand the changes in assets as well as asset sources which are not revealed by the
income statement , Helps to prepare financial statements
True/False
Question The maximum Seed Capital assistance provided by IDBI under the project
will be restricted to 50% of the required promoter's contribution or Rs. 50 lakhs
whichever is lower.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect , Social aspect
Multiple Choice Single Answer
Question Strategic Position and Action Evaluation Model :Correct Answer Is an approach to hammer out an appropriate strategic posture for a
firm and its individual business
Your Answer Which is highly respected for the sophistication, maturity and quality in
its planning systems
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products which are
being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Multiple Choice Multiple Answer
Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant
Your Answer Technology , Layout of the plant , Design of the plant
True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution
Control Authorities before setting up any project.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure
, Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Select The Blank
Question Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Inflow of cash
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question Details regarding Administrative / controlling office comes under the
________ category.
Correct Answer General
Your Answer Project organisation
Multiple Choice Multiple Answer
Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
Select The Blank
Question Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer Source
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Single Answer
Question In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth
rate
Your Answer Products which enjoy a high market share as well as a high growth rate
Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit
Your Answer Unsecured loans
Match The Following
Question Correct Answer Your Answer
Econometric method Mathematical representation of economic relationship Suitable for
forecasting the demand for intermediate products
Primary source of data Market survey Market survey
Secondary source of data Collected in some other context Collected in some other
context
Leading indicators Variables that change faster than others Mathematical representation
of economic relationship
Multiple Choice Multiple Answer
Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured
borrowing
Your Answer Depreciation , Increase in secured borrowing
True/False
Question The construction of National Golden Quadrilateral can be recognised as
Project.
Correct Answer True
Your Answer True
True/False
Question The cost factors of the product mixed is also taken into account to arrive at
cost at various levels of production and its cost impact of the manufacturing.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Capital Issue expenses include :Correct Answer Brokerage fees to registrars
Your Answer Market research expenses
Select The Blank
Question Having decided on the location and product, the promoter takes into account
the ________ that is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Single Answer
Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the
society as a whole
Your Answer A list of industries wherein the product is used is made and quantity and
volume is arrived at
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board
Your Answer Managing Director , Electrical engineers , Committees of the board
Multiple Choice Single Answer
Question Sanctioned bank limits is categorised under :Correct Answer Working capital
Your Answer Production, Sales and Profitability
Multiple Choice Single Answer
Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness
Your Answer Business strength and Industrial Attractiveness
Multiple Choice Multiple Answer
Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Multiple Choice Single Answer
Question Cost of overheads include :Correct Answer Cost of repairs and maintenance
Your Answer Cost of repairs and maintenance
Multiple Choice Multiple Answer
Question External sources of cash are as follows :Correct Answer Issue of new shares , Long term loans , Short term borrowings
Your Answer Issue of new shares , Long term loans , Short term borrowings
Select The Blank
Question The company having ________, is appropriate for the strategic posture of
Conservative under the SPACE approach.
Correct Answer Limited competitive advantage, belonging to a not so attractive
industry but enjoying financial strength and operating in a relatively stable environment
Your Answer High financial strength, high industrial strength, enjoying a competitive
advantage and belonging to an attractive industry, operating in a relatively stable
environmental conditions
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors
is more than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The cost of Plant and Machinery includes :Correct Answer Cost of stores and spares
Your Answer Building and civil construction
Select The Blank
Question The basic difference between the feasibility study report and ________ is the
level of accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer Audit report
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer Public deposit , Equity shares
Your Answer
Equity shares , Bridge loan , Working capital loan
Multiple Choice Multiple Answer
Question
Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend
Your Answer
Increase in working capital , Dividend , Preliminary expenses
written off
Select The Blank
Question
The company having ________, is appropriate for the strategic
posture of Conservative under the SPACE approach.
Correct Answer Limited competitive advantage, belonging to a not so attractive
industry but enjoying financial strength and operating in a
relatively stable environment
Your Answer
Limited financial strength, enjoying competitive advantage,
belonging to attractive industry and operating in a relatively
volatile environment
Select The Blank
Question
A market survey generally is a ________ survey.
Correct Answer Sample
Your Answer
Sample
Multiple Choice Single Answer
Question
The ratio which covers those assets which can be converted into
cash immediately is known as :Correct Answer Quick ratio
Your Answer
Quick ratio
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians
may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer
Consumption-level method , Econometric method
Select The Blank
Question
Having decided on the location and product, the promoter takes
into account the ________ that is to be adopted for producing
the product.
Correct Answer Manufacturing process and technology
Your Answer
Manufacturing process and technology
Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To indicate
the financial strength and weakness of the business , To help to
understand the changes in assets as well as asset sources
which are not revealed by the income statement
Your Answer
To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources
which are not revealed by the income statement , Helps to
prepare financial statements
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Balance Sheet , Cash flow statement
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Multiple Choice Single Answer
Question
Technology, design, layout of the plant as well as inputs and
infrastructural facilities are to be considered under :Correct Answer Technical appraisal
Your Answer
Technical appraisal
True/False
Question
The Detailed Project report must indicate the gestation period of
the project.
Correct Answer True
Your Answer
False
True/False
Question
Interest and Dividend are to be considered while calculating
Operating ratio.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Ratio should be computed on the basis of inter-related figures
which have a cause and effect relationship.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost
is known as :Correct Answer Finance cost aspect
Your Answer
Finance cost aspect
Select The Blank
Question
More accurate the estimation of the level of current assets and
current liabilities, more accurate will be estimation of the
requirement of ________.
Correct Answer Working capital
Your Answer
Working capital
Multiple Choice Single Answer
Question
The rate of discount which would equate the present value of
investments to the present value of benefits over the life of the
project is known as :Correct Answer Internal rate of return
Your Answer
Net Present value
Multiple Choice Multiple Answ er
Question
The various aspects which need to be considered while
assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer
Environmental factors , Risk involved , Political issues
Match The Following
Question
Correct Answer
Your Answer
Private investment
Power generation
Nearness to market
Project
Time -bound
Time -bound
Programme
Not necessarily time
bound
Not necessarily time bound
Foreign direct investment Machine tools
Power generation
True/False
Question
The advantage of secondary sources of data is that it is readily
and economically available.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed
as :Correct Answer Strategic perspective
Your Answer
Strategic perspective
Multiple Choice Multiple Answer
Question
A project objective can be said to have the following dimensions
viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer
True/False
Strategic perspective , Time span , Finance cost aspect
Question
A project is unique and no two projects are similar.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new shares
Your Answer
Cash from operations , Sale of machinery , Issue of new shares
Multiple Choice Single Answer
Question
Profit is the result of customer satisfaction, indeed customer
delight under the :Correct Answer Marketing concept
Your Answer
Marketing concept
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it involves current outlay of funds in expectation of future
benefits
Select The Blank
Question
________ is the summary of cash book or Receipts and
Payments statement.
Correct Answer Cash flow statement
Your Answer
Cash flow statement
Select The Blank
Question
Under the SPACE Model, Customer loyalty is determined under
the ________ dimension.
Correct Answer Company's competitive advantage
Your Answer
Company's competitive advantage
True/False
Question
The 'BCG Matrix 'analysis various products of the organisation in
the terms of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer
False
Select The Blank
Question
A smaller unit into which the overall requirement of capital of a
company is sub-divided is termed as ________.
Correct Answer Share
Your Answer
Share
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify
substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Your Answer
Average Business Strength and Medium Industry Attractiveness
, Average Business strength and high Industry attractiveness ,
Average Business Strength and Low Industry attractiveness
Multiple Choice Single Answer
Question
The ratio which indicates the ability of the company to meet
current obligations is termed as :Correct Answer Current ratio
Your Answer
Current ratio
True/False
Question
The General Electric Company incorporated in the USA, is highly
respected for the sophistication, maturity and quality in its
planning systems.
Correct Answer True
Your Answer
False
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer
Outflow of cash
Match The Following
Question
Correct Answer
Your Answer
Current ratio
Liquidity ratio
Current liability
Debt-Equity ratio
Solvency ratio
Debt
External liabilities
Debt
Relationship between Net
Profit after taxes and total
shareholders funds
Shareholders funds
Equity
Equity
True/False
Question
There is a need for studying Project finance both for the lenders
as well as the borrowers as both of them have equal stake in
making the Project a success.
Correct Answer True
Your Answer
True
Select The Blank
Question
Sometimes the term ________ is interpreted as cash equivalent
i.e. cash and marketable securities.
Correct Answer Fund
Your Answer
Investment
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to
as :Correct Answer Project finance
Your Answer
Balance Sheet
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer
Determination , Organisation Building , Person / system oriented
Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer
Source
True/False
Question
It is mandatory for each unit to obtain necessary clearance from
Pollution Control Authorities before setting up any project.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share
Your Answer
Products which have high growth potential but low market share
True/False
Question
Production line diagrams show the organisation structure of the
project along with information on location, personnel required for
various departments, and their inter-relationship.
Correct Answer False
Your Answer
True
PROJECT FINANCE
Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :Correct Answer To help to understand the changes in assets as well as asset sources
which are not revealed by the income statement , To find out the uses of loans raised by
the business , To indicate the financial strength and weakness of the business
Your Answer To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources which are not revealed by
the income statement , Helps to prepare financial statements
Select The Blank
Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Inflow of cash
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
True/False
Question The Detailed Project report spells out the modus operandi for the
implementation of the Project and the realization of the Project objectives.
Correct Answer True
Your Answer True
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Decreases
Multiple Choice Multiple Answer
Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written
off
Your Answer Funds from operation , Loss on sale of fixed assets
Multiple Choice Single Answer
Question End use method of Commercial appraisal technique is :Correct Answer A list of industries wherein the product is used is made and quantity
and volume is arrived at
Your Answer A list of industries wherein the product is used is made and quantity and
volume is arrived at
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Payment of long term loans
True/False
Question In small scale organisation, requirement of working capital is quite high due
to high amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
Qnt.
Project Manager
General category of Project
report
Cost aspect of the project
Financing plan
Correct
Finance Manager
Location of factory
Your Ans
Finance Manager
Location of factory
Consultancy fees
Unsecured
Consultancy fees
Unsecured
Select The Blank
Question Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital
Your Answer Working capital
Multiple Choice Single Answer
Question Sanctioned bank limits is categorised under :Correct Answer Working capital
Your Answer Production, Sales and Profitability
Select The Blank
Question Cost of fencing comes under the ________ category of the Project report.
Correct Answer Land and site development
Your Answer Land and site development
True/False
Question Trend projection method is the important technique for forecasting demand.
Correct Answer True
Your Answer True
True/False
Question The emphasis of a finance manager should be on taking a synergistic view of
the project rather than looking at it only from the financial aspects.
Correct Answer True
Your Answer True
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
Select The Blank
Question The basic difference between the feasibility study report and ________ is the
level of accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer Detailed Project report
Multiple Choice Single Answer
Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question Location of the factory comes under the ________ category of the Project
report.
Correct Answer General
Your Answer General
Multiple Choice Multiple Answer
Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
True/False
Question Market potential should be determined under the Marketing aspect of the
Project report.
Correct Answer True
Your Answer True
Select The Blank
Question ________ tries to have what the customer will want- where, when, in what
form and at what price.
Correct Answer Marketing
Your Answer Marketing
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is known as
:Correct Answer Finance cost aspect
Your Answer Strategic perspective
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Social aspect
True/False
Question Nominal maximum capacity is the capacity that is technically attainable and
this corresponds to the supplier's guaranteed capacity.
Correct Answer True
Your Answer True
Select The Blank
Question In order to meet the cost of large project, the technique of ________ has
been developed so that the financial commitment and risks associated with a project are
shared between the project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer Long term financing
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Single Answer
Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the
society as a whole
Your Answer Adopted as a guide depending on the consumption pattern of the society
as a whole
Multiple Choice Single Answer
Question The norms for providing open areas have to be strictly followed for safety of
labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit
Your Answer Chemical unit
Multiple Choice Single Answer
Question Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question Investors who invest in the debentures of the company are the ________ of
the company.
Correct Answer Creditors
Your Answer Creditors
Match The Following
QuestionCorrect Answer
Your Answer
Private investment
Project
Programme
Foreign direct
investment
Power generation
Time-bound
Not necessarily time bound
Machine tools
Multiple Choice Multiple Answer
Question As per the GE's Stop Light Matrix, Products may justify substantial
commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Your Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Multiple Choice Multiple Answer
Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question The industrial concern earned profits by increasing the sales volume under
the :Correct Answer Sales concept
Your Answer Sales concept
True/False
Question The 'BCG Matrix 'analysis various products of the organisation in the terms
of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer False
Select The Blank
Question Detailed Project Report is generally prepared from a ________ report with
additional information.
Correct Answer Feasibility
Your Answer Feasibility
Multiple Choice Single Answer
Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
True/False
Question Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the
factory
Your Answer Name of the Industrial concern , Proposed product , Location of the
factory
Multiple Choice Single Answer
Question A Project is a temporary endeavor to achieve some specific objectives within
a :Correct Answer Predefined time
Your Answer Predefined time
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Multiple Choice Multiple Answer
Question The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer Equity shares , Public deposit
Multiple Choice Single Answer
Question The cost which change in the same proportion in which the level of
production changes is known as :-
Correct Answer Variable cost
Your Answer Variable cost
Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon appraising
the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementation
Your Answer Problems faced during the Construction and Project implementation
Multiple Choice Single Answer
Question The third phase of the technical appraisal which focuses upon appraising the
likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation
Your Answer Problems pertaining to the period when the project is in operation
True/False
Question In the BCG Matrix, the key term of Cash Cows require further commitment
of funds.
Correct Answer False
Your Answer False
Select The Blank
Question In the GE's Stop Light Matrix, when ________ situation prevails , Products
call for divestment.
Correct Answer Average Business Strength and Low Industry attractiveness
Your Answer Average Business Strength and Low Industry attractiveness
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Select The Blank
Question ________ tries to have what the customer will want- where, when, in what
form and at what price.
Correct Answer Marketing
Your Answer Finance
Multiple Choice Single Answer
Question Financial aspect of Detailed Project report includes :-
Correct Answer Fixation of means of financial structure
Your Answer Fixation of means of financial structure
Multiple Choice Single Answer
Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result
Your Answer Specific result
Multiple Choice Single Answer
Question Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Single Answer
Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation
Your Answer Is a tool for strategic ( product ) planning and resource allocation
Multiple Choice Single Answer
Question End use method of Commercial appraisal technique is :Correct Answer A list of industries wherein the product is used is made and quantity
and volume is arrived at
Your Answer A list of industries wherein the product is used is made and quantity and
volume is arrived at
Select The Blank
Question ________ capital represents permanent capital.
Correct Answer Equity
Your Answer Debentures
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relati onship
Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any one of the
following basic strategic postures :-
Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question ________ in liabilities involves inflow of funds.
Correct Answer Increase
Your Answer Cash
Select The Blank
Question ________ occupies a unique position in the macro economic development
which helps in induction of new technology and facilitates, greater efficiency as well as
higher productivity.
Correct Answer Investment
Your Answer Investment
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
True/False
Question Financial analysis based on accounting ratios will give mis-leading results if
the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question Appointments made at senior level during the half-year is categorised under
:Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question Delays in infrastructure Development by State Agencies may lead to :-
Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question As per the GE's Stop Light Matrix, Products may justify substantial
commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Your Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Multiple Choice Single Answer
Question The cost of Plant and Machinery may be adjusted for a possible increase
known as :Correct Answer Escalation
Your Answer Inflation
Multiple Choice Multiple Answer
Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future
availability and supply of the product
Your Answer Future demand of the product , Proper survey of the product , Future
availability and supply of the product
Multiple Choice Single Answer
Question The BCG product Portfolio Matrix, General Electric Stop Light Matrix and
Strategic Position and Action Evaluation Model are considered to be highly relevant as :Correct Answer Portfolio Planning Tools
Your Answer Portfolio Planning Tools
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Decreases
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Issue of new machinery
True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors
is more than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question Ratio analysis is a technique of planning and control.
Correct Answer False
Your Answer False
True/False
Question Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer True
Your Answer False
Select The Blank
Question Cost of fencing comes under the ________ category of the Project report.
Correct Answer Land and site development
Your Answer Land and site development
Multiple Choice Single Answer
Question The ratio which covers those assets which can be converted into cash
immediately is known as :Correct Answer Quick ratio
Your Answer Quick ratio
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products which
are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the
company are not distributed by it by way of ________ but are kept aside for use in future
for expansion or other purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Multiple Answer
Question Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
True/False
Question Unlike financial projections, there cannot be any fixed, well-recognised or
structure formula/steps for management evaluation/appraisal.
Correct Answer True
Your Answer True
True/False
Question Production line diagrams show the organisation structure of the project
along with information on location, personnel required for various departments, and their
inter-relationship.
Correct Answer False
Your Answer False
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Trade credit
True/False
Question For computing Interest coverage ratio, Profit after Interest and taxes are
taken into account.
Correct Answer False
Your Answer True
Select The Blank
Question Details regarding Internal accruals comes under the ________ category of
Project report.
Correct Answer Financing plan
Your Answer Cost aspect
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board
Your Answer Managing Director , Institutional nominees , Committees of the board
True/False
Question Nominal maximum capacity is the capacity that is technically attainable and
this corresponds to the supplier's guaranteed capacity.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of cash is
termed as :Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Multiple Choice Multiple Answer
Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Dividends
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money
Your Answer Margin money
Multiple Choice Multiple Answer
Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer Factory building , Auxiliary buildings , Administrative block
Multiple Choice Single Answer
Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential
Your Answer Products which have high market share but low growth potential
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Single Answer
Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
True/False
Question In both the extreme situations of trade cycles i.e. Inflation and depression, requirement of
working capital may be high.
Correct Answer True
Your Answer True
True/False
Question Name of the finance manager comes under the Project organisation category of the Project
report.
Correct Answer True
Your Answer True
True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities
before setting up any project.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration level/ conservative
Organisational Climate Person oriented Person oriented
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate
Your Answer Relative Market share and Industry Growth rate
Select The Blank
Question ________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer Stable
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing Project finance financing are
:Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Single Answer
Question "Fly by night" operator mentality is a :Correct Answer Management quality
Your Answer Management quality
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Increases
Multiple Choice Multiple Answer
Question Debt Service coverage ratio may be considered to be one of the most important ratios
calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer Shareholders , Bankers , Financial Institutions
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges the various facts , It does
not consider non-fund transactions
Your Answer It does not provide any new information but only rearranges the various facts , It does not
consider non-fund transactions , It does not help in determining future requirement of funds
Multiple Choice Single Answer
Question The third phase of the technical appraisal which focuses upon appraising the likely technical
gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation
Your Answer Problems pertaining to the period when the project is in operation
Multiple Choice Single Answer
Question Receivables is categorised under :Correct Answer Current assets and liabilities
Your Answer Current assets and liabilities
Multiple Choice Single Answer
Question It is said that a second rate project in the hands of first rate management is better than a first
rate project in the hands of :Correct Answer Second rate management
Your Answer Second rate management
Select The Blank
Question The company having ________, is appropriate for the strategic posture of Defensive under the
SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and belongs to a not so
attractive industry, operating in an unstable environment
Your Answer Lacks both competitive advantage as well as financial strength and belongs to a not so
attractive industry, operating in an unstable environment
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Profit maximisation
True/False
Question The 'BCG Matrix 'analysis various products of the organisation in the terms of Business
strength and Industry Attractiveness.
Correct Answer False
Your Answer False
Select The Blank
Question Having decided on the location and product, the promoter takes into account the ________ that
is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Multiple Answer
Question Financial and economic aspect of the Visit report consists of :Correct Answer Company's financial year , Impact of Government policies on company operations ,
Comments on the last published accounts
Your Answer Company's financial year , Impact of Government policies on company operations ,
Comments on the last published accounts
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question In the BCG Matrix "DOGS" indicate products which are generally during the stage of Decline
of a Product Life Cycle.
Correct Answer True
Your Answer True
True/False
Question The construction of National Golden Quadrilateral can be recognised as Project.
Correct Answer True
Your Answer True
Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the ________ dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
True/False
Question The cost factors of the product mixed is also taken into account to arrive at cost at various
levels of production and its cost impact of the manufacturing.
Correct Answer True
Your Answer True
True/False
Question The emphasis of a finance manager should be on taking a synergistic view of the project rather
than looking at it only from the financial aspects.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer Quality standards , Raw material requirement , Power / telecom facilities
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
True/False
Question Market potential should be determined under the Marketing aspect of the Project report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis
Your Answer Financial analysis
Multiple Choice Single Answer
Question Preoperative expenses includes :Correct Answer Bank guarantees
Your Answer Bank guarantees
Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
True/False
Question If the organisation is a trading organisation, the requirement of working capital will be on the
lower side.
Correct Answer False
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question In the BCG Matrix, the key term of Cash Cows require further commitment
of funds.
Correct Answer False
Your Answer False
Select The Blank
Question In the GE's Stop Light Matrix, when ________ situation prevails , Products
call for divestment.
Correct Answer Average Business Strength and Low Industry attractiveness
Your Answer Average Business Strength and Low Industry attractiveness
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Select The Blank
Question ________ tries to have what the customer will want- where, when, in what
form and at what price.
Correct Answer Marketing
Your Answer Finance
Multiple Choice Single Answer
Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure
Your Answer Fixation of means of financial structure
Multiple Choice Single Answer
Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result
Your Answer Specific result
Multiple Choice Single Answer
Question Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Single Answer
Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation
Your Answer Is a tool for strategic ( product ) planning and resource allocation
Multiple Choice Single Answer
Question End use method of Commercial appraisal technique is :Correct Answer A list of industries wherein the product is used is made and quantity
and volume is arrived at
Your Answer A list of industries wherein the product is used is made and quantity and
volume is arrived at
Select The Blank
Question ________ capital represents permanent capital.
Correct Answer Equity
Your Answer Debentures
Match The Following
Question Correct Answer Your Answer
Export market technique of Commercial appraisal Government provides ample
encouragement Government provides ample encouragement
Demand Technique forecasting of Commercial appraisal Future demand of the product
Future demand of the product
Past trend method of Commercial appraisal Adopted as a guide depending on the
consumption pattern of the society as a whole Adopted as a guide depending on the
consumption pattern of the society as a whole
End use method of Commercial appraisal A list of industries wherein the product is used
is made and quantity and volume is arrived at A list of industries wherein the product is
used is made and quantity and volume is arrived at
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any one of the
following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question ________ in liabilities involves inflow of funds.
Correct Answer Increase
Your Answer Cash
Select The Blank
Question ________ occupies a unique position in the macro economic development
which helps in induction of new technology and facilitates, greater efficiency as well as
higher productivity.
Correct Answer Investment
Your Answer Investment
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
True/False
Question Financial analysis based on accounting ratios will give mis-leading results if
the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question Appointments made at senior level during the half-year is categorised under
:Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question As per the GE's Stop Light Matrix, Products may justify substantial
commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Your Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Match The Following
Question Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Investment
Current liability Trade credit Debtors
Multiple Choice Single Answer
Question The cost of Plant and Machinery may be adjusted for a possible increase
known as :Correct Answer Escalation
Your Answer Inflation
Multiple Choice Multiple Answer
Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future
availability and supply of the product
Your Answer Future demand of the product , Proper survey of the product , Future
availability and supply of the product
Multiple Choice Single Answer
Question The BCG product Portfolio Matrix, General Electric Stop Light Matrix and
Strategic Position and Action Evaluation Model are considered to be highly relevant as :Correct Answer Portfolio Planning Tools
Your Answer Portfolio Planning Tools
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Decreases
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Issue of new machinery
True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors
is more than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question Ratio analysis is a technique of planning and control.
Correct Answer False
Your Answer False
True/False
Question Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer True
Your Answer False
Select The Blank
Question Cost of fencing comes under the ________ category of the Project report.
Correct Answer Land and site development
Your Answer Land and site development
Multiple Choice Single Answer
Question The ratio which covers those assets which can be converted into cash
immediately is known as :Correct Answer Quick ratio
Your Answer Quick ratio
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products which are
being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the company
are not distributed by it by way of ________ but are kept aside for use in future for
expansion or other purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Multiple Answer
Question Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
True/False
Question Unlike financial projections, there cannot be any fixed, well-recognised or
structure formula/steps for management evaluation/appraisal.
Correct Answer True
Your Answer True
True/False
Question Production line diagrams show the organisation structure of the project along
with information on location, personnel required for various departments, and their interrelationship.
Correct Answer False
Your Answer False
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Trade credit
True/False
Question For computing Interest coverage ratio, Profit after Interest and taxes are taken
into account.
Correct Answer False
Your Answer True
Select The Blank
Question Details regarding Internal accruals comes under the ________ category of
Project report.
Correct Answer Financing plan
Your Answer Cost aspect
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board
Your Answer Managing Director , Institutional nominees , Committees of the board
True/False
Question Nominal maximum capacity is the capacity that is technically attainable and
this corresponds to the supplier's guaranteed capacity.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of cash is
termed as :Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Multiple Choice Multiple Answer
Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Dividends
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question 1 The advantage of secondary sources of data is that it is readily and
economically available.
Correct Answer True
Your Answer True
True/False
Question2 In small scale organisation, requirement of working capital is quite high due
to high amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
True/False
Question3 Banks and Financial Institutions, world-wide, are now financing projects
with strategies and terms that would have been hard to believe/imagine just a few years
back.
Correct Answer True
Your Answer True
Select The Blank
Question 4 ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Multiple Answer
Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Multiple Choice Single Answer
Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering
Your Answer Detailed Project Engineering
Multiple Choice Multiple Answer
Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured
borrowing
Your Answer Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Single Answer
Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to
:Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question 10 A smaller unit into which the overall requirement of capital of a company
is sub-divided is termed as ________.
Correct Answer Share
Your Answer Share
Multiple Choice Single Answer
Question11 A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Single Answer
Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Multiple Answer
Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written
off
Your Answer Funds from operation , Goodwill written off
Multiple Choice Multiple Answer
Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Determination , Organisation Building , Person / system oriented
Select The Blank
Question15 Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer One
True/False
Question16 Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question17 The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Multiple Answer
Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question 19 ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
True/False
Question20 Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
Select The Blank
Question21 Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question22 Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Short term
Select The Blank
Question23 ________ is the summary of cash book or Receipts and Payments
statement.
Correct Answer Cash flow statement
Your Answer Trial balance
True/False
Question24 In the BCG Matrix, the key term of Cash Cows require further
commitment of funds.
Correct Answer False
Your Answer True
True/False
Question25 Cost and time overrun of the project may lead to loss on account of lost
market opportunities.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question26 A project objective which states What "achieving it " would cost is known
as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Multiple Choice Multiple Answer
Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Multiple Choice Single Answer
Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth
rate
Your Answer Products which enjoy a high market share as well as a high growth rate
Multiple Choice Single Answer
Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy?
Your Answer Why they buy?
True/False
Question30 Production line diagrams show the organisation structure of the project
along with information on location, personnel required for various departments, and their
inter-relationship.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question31 While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure
, Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Multiple Choice Single Answer
Question32 The cost which change in the same proportion in which the level of
production changes is known as :Correct Answer Variable cost
Your Answer Variable cost
Select The Blank
Question33 Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Decreases
Multiple Choice Multiple Answer
Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
Multiple Choice Single Answer
Question35 Appointments made at senior level during the half-year is categorised
under :Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question36 Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
Multiple Choice Multiple Answer
Question37 Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Match The Following
Question38 Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question 40 General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the
factory
Your Answer Name of the Industrial concern , Proposed product , Location of the
factory
Multiple Choice Multiple Answer
Question 41 The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question43 After the SPACE chart is constructed, we would normally get any one of
the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question 44 ________ occupies a unique position in the macro economic development
which helps in induction of new technology and facilitates, greater efficiency as well as
higher productivity.
Correct Answer Investment
Your Answer Marketing
Multiple Choice Single Answer
Question45 Infrastructural projects include :-
Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question46 Name and designation of the chief executive comes under the ________
category.
Correct Answer General
Your Answer General
Match The Following
Question47 Correct Answer Your Answer
Private investment Power generation Machine tools
Project Time -bound Time -bound
Programme Not necessarily time bound Not necessarily time bound
Foreign direct investment Machine tools Power generation
Project Finance _15
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :Correct Answer To help to understand the changes in assets as well as asset
sources which are not revealed by the income statement , To
find out the uses of loans raised by the business , To indicate the
financial strength and weakness of the business
Your Answer
To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources
which are not revealed by the income statement , Helps to
prepare financial statements
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer
Inflow of cash
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to
as :Correct Answer Project finance
Your Answer
Project finance
True/False
Question
The Detailed Project report spells out the modus operandi for the
implementation of the Project and the realization of the Project
objectives.
Correct Answer True
Your Answer
True
Select The Blank
Question
As the plant capacity increase, the investment cost unit capacity
________.
Correct Answer Decreases
Your Answer
Decreases
Multiple Choice Multiple Answer
Question
Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill
written off
-1 -
Project Finance _15
Your Answer
Funds from operation , Loss on sale of fixed assets
Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :Correct Answer A list of industries wherein the product is used is made and
quantity and volume is arrived at
Your Answer
A list of industries wherein the product is used is made and
quantity and volume is arrived at
Multiple Choice Multiple Answer
Question
The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans
True/False
Question
In small scale organisation, requirement of working capital is
quite high due to high amount of overheads, high buying costs
and high selling cost.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of
Project report
Location of factory
Location of factory
Cost aspect of the project Consultancy fees
report
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank
Question
Longer the duration of production cycle, higher the requirement
of ________.
Correct Answer Working capital
Your Answer
Working capital
Multiple Choice Single Answer
Question
Sanctioned bank limits is categorised under :-
-2 -
Project Finance _15
Correct Answer Working capital
Your Answer
Production, Sales and Profitability
Select The Blank
Question
Cost of fencing comes under the ________ category of the
Project report.
Correct Answer Land and site development
Your Answer
Land and site development
True/False
Question
Trend projection method is the important technique for
forecasting demand.
Correct Answer True
Your Answer
True
True/False
Question
The emphasis of a finance manager should be on taking a
synergistic view of the project rather than looking at it only from
the financial aspects.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Select The Blank
Question
The basic difference between the feasibility study report and
________ is the level of accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer
Detailed Project report
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may
lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
-3 -
Project Finance _15
Select The Blank
Question
Location of the factory comes under the ________ category of
the Project report.
Correct Answer General
Your Answer
General
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False
Question
Market potential should be determined under the Marketing
aspect of the Project report.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ tries to have what the customer will want- where,
when, in what form and at what price.
Correct Answer Marketing
Your Answer
Marketing
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost
is known as :Correct Answer Finance cost aspect
Your Answer
Strategic perspective
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed
as :-
-4 -
Project Finance _15
Correct Answer Strategic perspective
Your Answer
Social aspect
True/False
Question
Nominal maximum capacity is the capacity that is technically
attainable and this corresponds to the supplier's guaranteed
capacity.
Correct Answer True
Your Answer
True
Select The Blank
Question
In order to meet the cost of large project, the technique of
________ has been developed so that the financial commitment
and risks associated with a project are shared between the
project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer
Long term financing
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Single Answer
Question
Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the
society as a whole
Your Answer
Adopted as a guide depending on the consumption pattern of the
society as a whole
Multiple Choice Single Answer
Question
The norms for providing open areas have to be strictly followed
for safety of labour and allow sufficient space for outflow of
effluents safely in case of :Correct Answer Chemical unit
Your Answer
Chemical unit
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :-
-5 -
Project Finance _15
Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Investors who invest in the debentures of the company are the
________ of the company.
Correct Answer Creditors
Your Answer
Creditors
Match The Following
Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time
bound
Not necessarily time bound
Foreign direct investment Machine tools
Machine tools
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify
substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question
The industrial concern earned profits by increasing the sales
volume under the :Correct Answer Sales concept
Your Answer
Sales concept
True/False
-6 -
Project Finance _15
Question
The 'BCG Matrix 'analysis various products of the organisation in
the terms of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer
False
Select The Blank
Question
Detailed Project Report is generally prepared from a ________
report with additional information.
Correct Answer Feasibility
Your Answer
Feasibility
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians
may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Miscellaneous expenditure is written on the asset side of the
Balance sheet.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of
the factory
Your Answer
Name of the Industrial concern , Proposed product , Location of
the factory
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific
objectives within a :Correct Answer Predefined time
Your Answer
Predefined time
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors
should be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
-7 -
Project Finance _15
Your Answer
Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer
Equity shares , Public deposit
Multiple Choice Single Answer
Question
The cost which change in the same proportion in which the level
of production changes is known as :Correct Answer Variable cost
Your Answer
Variable cost
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project
implementation
Your Answer
Problems faced during the Construction and Project
implementation
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in
operation
Your Answer
Problems pertaining to the period when the project is in
operation
-8 -
Project Finance _16
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer
Source
Your Answer
Source
Multiple Choice Multiple Answer
Question
External sources of cash are as follows :Correct Answer
Your Answer
Issue of new shares , Long term loans , Short term
borrowings
Long term loans , Short term borrowings , Issue of new
shares
Multiple Choice Single Answer
Question
In BCG Matrix " CASH COWS" indicate :Correct Answer
Your Answer
Products which have high market share but low growth
potential
Products which have high market share but low growth
potential
Select The Blank
Question
________ tries to have what the customer will want- where,
when, in what form and at what price.
Correct Answer Marketing
Your Answer
Marketing
Multiple Choice Multiple Answer
Question
Financial and economic aspect of the Visit report consists of
:Correct Answer Company's financial year , Impact of Government policies
on company operations , Comments on the last published
accounts
Your Answer
Company's financial year , Impact of Government policies
on company operations , Comments on the last published
accounts
True/False
Question
Ratio should be computed on the basis of inter-related
figures which have a cause and effect relationship.
-1 -
Project Finance _16
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Preoperative expenses includes :Correct Answer
Bank guarantees
Your Answer
Bank guarantees
Select The Blank
Question
Retained earnings is a source of ________ finance.
Correct Answer
Internal
Your Answer
Internal
Select The Blank
Question
________ profitability reduces the strain on working capital.
Correct Answer
High
Your Answer
High
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :Correct Answer
Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Balance Sheet
True/False
Question
Cost under-estimation at the project preparation and
evaluation stage leads to cost and time over run.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Cost of laying roads comes under :Correct Answer Land and site cost
Your Answer
Preoperative cost
-2 -
Project Finance _16
Multiple Choice Multiple Answer
Question
Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer
Current ratio , Internal measure , Quick ratio
True/False
Question
A project is unique and no two projects are similar.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Borrower's contribution towards Working capital is known
as :Correct Answer Margin money
Your Answer
Margin money
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :Correct Answer
Your Answer
Name of the Industrial concern , Proposed product ,
Location of the factory
Name of the Industrial concern , Proposed product ,
Location of the factory
Multiple Choice Multiple Answer
Question
A project objective can be said to have the following
dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer
Time span , Finance cost aspect , Strategic perspective
Multiple Choice Single Answer
Question
Cost of overheads include :Correct Answer Cost of repairs and maintenance
Your Answer
Cost of repairs and maintenance
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :-
-3 -
Project Finance _16
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Correct Answer
Unlike financial projections, there cannot be any fixed,
well-recognised or structure formula/steps for management
evaluation/appraisal.
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer
Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Match The Following
Question
Correct Answer
Your Answer
Preliminary and capital Brokerage and
issue expenses
commission
Foundation and erection
charges
Land and site
development cost
Cost of laying roads
Brokerage and
commission
Building cost
Cost of factory building Cost of factory building
Plant and machinery
cost
Foundation and
erection charges
Cost of laying roads
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer
Your Answer
That it involves current outlay of funds in expectation of
future benefits
That it involves current outlay of funds in expectation of
future benefits
Select The Blank
Question
________ capital represents permanent capital.
Correct Answer
Equity
Your Answer
Equity
-4 -
Project Finance _16
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify
substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Multiple Choice Single Answer
Question
The entire life of the project is taken into account under
Correct Answer Average rate of return method
Your Answer
Pay back method
Select The Blank
Question
________ in liabilities involves inflow of funds.
Correct Answer
Increase
Your Answer
Increase
Multiple Choice Single Answer
Question
BCG Product Portfolio Matrix analyses products on the
basis of :Correct Answer Relative Market share and Industry Growth rate
Your Answer
True/False
Question
Relative Market share and Industry Growth rate
Correct Answer
A high debt equity ratio may indicate that the financial stake
of the creditors is more than that of the owners.
True
Your Answer
True
Match The Following
Question
Correct Answer
Project Financing
Help improving
Corporate Return on
Equity
Finance in international Issue of Euro bonds
financial markets
-5 -
Your Answer
Help improving
Corporate Return on
Equity
World Bank
Project Finance _16
International financial World Bank
institutions
Issue of Euro bonds
Policy of Liberalisation, Increasing emphasis on Increasing emphasis on
Privatisation and
the Private initiative
the Private initiative
Globalisation
True/False
Question
Correct Answer
Land and site development comes under the cost aspect of
the Project report.
True
Your Answer
True
Select The Blank
Question
In order to meet the cost of large project, the technique of
________ has been developed so that the financial
commitment and risks associated with a project are shared
between the project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer
Limited recourse financing
Multiple Choice Multiple Answer
Question
Debt Service coverage ratio may be considered to be one of
the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer
Bankers , Financial Institutions
True/False
Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Technical aspect of detailed project report includes :Correct Answer
Detailed Project Engineering
Your Answer
Detailed Project Engineering
True/False
-6 -
Project Finance _16
Question
Correct Answer
Cost and time overrun of the project may lead to loss on
account of lost market opportunities.
True
Your Answer
True
Select The Blank
Question
A smaller unit into which the overall requirement of capital
of a company is sub-divided is termed as ________.
Correct Answer Share
Your Answer
True/False
Question
Share
Correct Answer
There is a need for studying Project finance both for the
lenders as well as the borrowers as both of them have equal
stake in making the Project a success.
True
Your Answer
True
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer
Increase
Your Answer
Increase
Multiple Choice Multiple Answer
Question
Production and sales aspect of Visit report consists of :Correct Answer
Your Answer
Utilisation of installed capacity , Input availability , Sales
trends
Utilisation of installed capacity , Input availability , Sales
trends
Multiple Choice Single Answer
Question
The rate of discount which would equate the present value
of investments to the present value of benefits over the life
of the project is known as :Correct Answer Internal rate of return
Your Answer
Internal rate of return
Select The Blank
-7 -
Project Finance _16
Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Book debts
Multiple Choice Multiple Answer
Question
Building cost consists of :Correct Answer
Your Answer
True/False
Question
Factory building , Auxiliary buildings , Administrative
block
Factory building , Auxiliary buildings , Administrative
block
Correct Answer
Nominal maximum capacity is the capacity that is
technically attainable and this corresponds to the supplier's
guaranteed capacity.
True
Your Answer
True
Multiple Choice Single Answer
Question
In the Cash flow statement, the sources of funds include
Correct Answer
Share Issue
Your Answer
Share Issue
Multiple Choice Multiple Answer
Question
The permanent requirement of working capital should be
financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer
Cash Profits , Shares , Debentures
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer
Inflow of cash
Your Answer
Inflow of cash
-8 -
Project Finance _17
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money
Your Answer Margin money
Multiple Choice Multiple Answer
Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer Factory building , Auxiliary buildings , Administrative block
Multiple Choice Single Answer
Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential
Your Answer Products which have high market share but low growth potential
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Single Answer
Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
True/False
Question In both the extreme situations of trade cycles i.e. Inflation and depression, requirement of
working capital may be high.
Correct Answer True
Your Answer True
True/False
Question Name of the finance manager comes under the Project organisation category of the Project
report.
Correct Answer True
Your Answer True
True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities
before setting up any project.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
-1-
Project Finance _17
Management Perception Aspiration level/ conservative Aspiration level/ conservative
Organisational Climate Person oriented Person oriented
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate
Your Answer Relative Market share and Industry Growth rate
Select The Blank
Question ________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer Stable
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing Project finance financing are
:Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Single Answer
Question "Fly by night" operator mentality is a :Correct Answer Management quality
Your Answer Management quality
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Increases
Multiple Choice Multiple Answer
Question Debt Service coverage ratio may be considered to be one of the most important ratios
calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer Shareholders , Bankers , Financial Institutions
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect
-2-
Project Finance _17
Your Answer Finance cost aspect
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges the various facts , It does
not consider non-fund transactions
Your Answer It does not provide any new information but only rearranges the various facts , It does not
consider non-fund transactions , It does not help in determining future requirement of funds
Multiple Choice Single Answer
Question The third phase of the technical appraisal which focuses upon appraising the likely technical
gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation
Your Answer Problems pertaining to the period when the project is in operation
Multiple Choice Single Answer
Question Receivables is categorised under :Correct Answer Current assets and liabilities
Your Answer Current assets and liabilities
Multiple Choice Single Answer
Question It is said that a second rate project in the hands of first rate management is better than a first
rate project in the hands of :Correct Answer Second rate management
Your Answer Second rate management
Select The Blank
Question The company having ________, is appropriate for the strategic posture of Defensive under the
SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and belongs to a not so
attractive industry, operating in an unstable environment
Your Answer Lacks both competitive advantage as well as financial strength and belongs to a not so
attractive industry, operating in an unstable environment
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Profit maximisation
True/False
Question The 'BCG Matrix 'analysis various products of the organisation in the terms of Business
strength and Industry Attractiveness.
Correct Answer False
Your Answer False
Select The Blank
Question Having decided on the location and product, the promoter takes into account the ________ that
is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
-3-
Project Finance _17
Multiple Choice Multiple Answer
Question Financial and economic aspect of the Visit report consists of :Correct Answer Company's financial year , Impact of Government policies on company operations ,
Comments on the last published accounts
Your Answer Company's financial year , Impact of Government policies on company operations ,
Comments on the last published accounts
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question In the BCG Matrix "DOGS" indicate products which are generally during the stage of Decline
of a Product Life Cycle.
Correct Answer True
Your Answer True
True/False
Question The construction of National Golden Quadrilateral can be recognised as Project.
Correct Answer True
Your Answer True
Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the ________ dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
True/False
Question The cost factors of the product mixed is also taken into account to arrive at cost at various
levels of production and its cost impact of the manufacturing.
Correct Answer True
Your Answer True
True/False
Question The emphasis of a finance manager should be on taking a synergistic view of the project rather
than looking at it only from the financial aspects.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Multiple Answer
-4-
Project Finance _17
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer Quality standards , Raw material requirement , Power / telecom facilities
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
True/False
Question Market potential should be determined under the Marketing aspect of the Project report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis
Your Answer Financial analysis
Multiple Choice Single Answer
Question Preoperative expenses includes :Correct Answer Bank guarantees
Your Answer Bank guarantees
Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
True/False
Question If the organisation is a trading organisation, the requirement of working capital will be on the
lower side.
Correct Answer False
Your Answer True
-5-
Project Finance _18
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer Public deposit , Equity shares
Your Answer
Equity shares , Bridge loan , Working capital loan
Multiple Choice Multiple Answer
Question
Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend
Your Answer
Increase in working capital , Dividend , Preliminary expenses
written off
Select The Blank
Question
The company having ________, is appropriate for the strategic
posture of Conservative under the SPACE approach.
Correct Answer Limited competitive advantage, belonging to a not so attractive
industry but enjoying financial strength and operating in a
relatively stable environment
Your Answer
Limited financial strength, enjoying competitive advantage,
belonging to attractive industry and operating in a relatively
volatile environment
Select The Blank
Question
A market survey generally is a ________ survey.
Correct Answer Sample
Your Answer
Sample
Multiple Choice Single Answer
Question
The ratio which covers those assets which can be converted into
cash immediately is known as :Correct Answer Quick ratio
Your Answer
Quick ratio
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians
may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
-1 -
Project Finance _18
Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer
Consumption-level method , Econometric method
Select The Blank
Question
Having decided on the location and product, the promoter takes
into account the ________ that is to be adopted for producing
the product.
Correct Answer Manufacturing process and technology
Your Answer
Manufacturing process and technology
Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To indicate
the financial strength and weakness of the business , To help to
understand the changes in assets as well as asset sources
which are not revealed by the income statement
Your Answer
To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources
which are not revealed by the income statement , Helps to
prepare financial statements
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Balance Sheet , Cash flow statement
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Multiple Choice Single Answer
Question
Technology, design, layout of the plant as well as inputs and
infrastructural facilities are to be considered under :Correct Answer Technical appraisal
Your Answer
Technical appraisal
-2 -
Project Finance _18
True/False
Question
The Detailed Project report must indicate the gestation period of
the project.
Correct Answer True
Your Answer
False
True/False
Question
Interest and Dividend are to be considered while calculating
Operating ratio.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Ratio should be computed on the basis of inter-related figures
which have a cause and effect relationship.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost
is known as :Correct Answer Finance cost aspect
Your Answer
Finance cost aspect
Select The Blank
Question
More accurate the estimation of the level of current assets and
current liabilities, more accurate will be estimation of the
requirement of ________.
Correct Answer Working capital
Your Answer
Working capital
Multiple Choice Single Answer
Question
The rate of discount which would equate the present value of
investments to the present value of benefits over the life of the
-3 -
Project Finance _18
project is known as :Correct Answer Internal rate of return
Your Answer
Net Present value
Multiple Choice Multiple Answ er
Question
The various aspects which need to be considered while
assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer
Environmental factors , Risk involved , Political issues
Match The Following
Question
Correct Answer
Your Answer
Private investment
Power generation
Nearness to market
Project
Time -bound
Time -bound
Programme
Not necessarily time
bound
Not necessarily time bound
Foreign direct investment Machine tools
Power generation
True/False
Question
The advantage of secondary sources of data is that it is readily
and economically available.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed
as :Correct Answer Strategic perspective
Your Answer
Strategic perspective
Multiple Choice Multiple Answer
Question
A project objective can be said to have the following dimensions
viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer
Strategic perspective , Time span , Finance cost aspect
True/False
-4 -
Project Finance _18
Question
A project is unique and no two projects are similar.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new shares
Your Answer
Cash from operations , Sale of machinery , Issue of new shares
Multiple Choice Single Answer
Question
Profit is the result of customer satisfaction, indeed customer
delight under the :Correct Answer Marketing concept
Your Answer
Marketing concept
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it involves current outlay of funds in expectation of future
benefits
Select The Blank
Question
________ is the summary of cash book or Receipts and
Payments statement.
Correct Answer Cash flow statement
Your Answer
Cash flow statement
Select The Blank
Question
Under the SPACE Model, Customer loyalty is determined under
the ________ dimension.
Correct Answer Company's competitive advantage
Your Answer
Company's competitive advantage
-5 -
Project Finance _18
True/False
Question
The 'BCG Matrix 'analysis various products of the organisation in
the terms of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer
False
Select The Blank
Question
A smaller unit into which the overall requirement of capital of a
company is sub-divided is termed as ________.
Correct Answer Share
Your Answer
Share
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify
substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Your Answer
Average Business Strength and Medium Industry Attractiveness
, Average Business strength and high Industry attractiveness ,
Average Business Strength and Low Industry attractiveness
Multiple Choice Single Answer
Question
The ratio which indicates the ability of the company to meet
current obligations is termed as :Correct Answer Current ratio
Your Answer
Current ratio
True/False
Question
The General Electric Company incorporated in the USA, is highly
respected for the sophistication, maturity and quality in its
planning systems.
Correct Answer True
Your Answer
False
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer
Outflow of cash
Match The Following
-6 -
Project Finance _18
Question
Correct Answer
Your Answer
Current ratio
Liquidity ratio
Current liability
Debt-Equity ratio
Solvency ratio
Debt
External liabilities
Debt
Relationship between Net
Profit after taxes and total
shareholders funds
Shareholders funds
Equity
Equity
True/False
Question
There is a need for studying Project finance both for the lenders
as well as the borrowers as both of them have equal stake in
making the Project a success.
Correct Answer True
Your Answer
True
Select The Blank
Question
Sometimes the term ________ is interpreted as cash equivalent
i.e. cash and marketable securities.
Correct Answer Fund
Your Answer
Investment
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to
as :Correct Answer Project finance
Your Answer
Balance Sheet
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer
Determination , Organisation Building , Person / system oriented
Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer
Source
-7 -
Project Finance _18
True/False
Question
It is mandatory for each unit to obtain necessary clearance from
Pollution Control Authorities before setting up any project.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share
Your Answer
Products which have high growth potential but low market share
True/False
Question
Production line diagrams show the organisation structure of the
project along with information on location, personnel required for
various departments, and their inter-relationship.
Correct Answer False
Your Answer
True
-8 -
Project Finance _19
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
Multiple Choice Multiple Answer
Question Marketing category of the Project report consists of :Correct Answer Target market , Market potential , Pricing policy
Your Answer Target market , Market potential , Pricing policy
Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the ________
dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
Multiple Choice Single Answer
Question Sources of funds include :Correct Answer Increase in secured borrowing
Your Answer Increase in secured borrowing
True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution Control
Authorities before setting up any project.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Select The Blank
Question ________ tries to have what the customer will want- where, when, in what form and at
what price.
Correct Answer Marketing
Your Answer Marketing
True/False
Question Debt Service Coverage Ratio is one of the most important ratios calculated by the
bankers or financial institutions giving long term finance to the organisation.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon appraising the likely
technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementation
Your Answer Problems faced during the Construction and Project implementation
-1-
Project Finance _19
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Land and site development cost includes cost of :Correct Answer Gates
Your Answer Gates
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration level/ conservative
Organisational Climate Person oriented Person oriented
Match The Following
Question Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question Disposal of fixed assets is categorised under :Correct Answer Miscellaneous
Your Answer Miscellaneous
True/False
Question The emphasis of a finance manager should be on taking a synergistic view of the
project rather than looking at it only from the financial aspects.
Correct Answer True
Your Answer True
-2-
Project Finance _19
Multiple Choice Single Answer
Question Geographic market appraisal answers to :Correct Answer Where do the customers live?
Your Answer Where do the customers live?
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question ________ occupies a unique position in the macro economic development which
helps in induction of new technology and facilitates, greater efficiency as well as higher
productivity.
Correct Answer Investment
Your Answer Production
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Single Answer
Question Pre-operative expenses include :Correct Answer Interest on deferred payments
Your Answer Interest on deferred payments
Multiple Choice Multiple Answer
Question Advantages of fund flow statement are :Correct Answer It determines financial consequences of the business operations , It enables
the firm to plan its financial resources properly , It helps as a reliable guide for the future
requirement of funds
Your Answer It determines financial consequences of the business operations , It considers
non-fund transactions , It enables the firm to plan its financial resources properly
True/False
Question Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
True/False
Question In the BCG Matrix "DOGS" indicate products which are generally during the stage of
Decline of a Product Life Cycle.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Payment of long term loans , Issue of new machinery
True/False
Question Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True
Your Answer True
-3-
Project Finance _19
True/False
Question Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Multiple Choice Single Answer
Question Liabilities side of Balance sheet includes :Correct Answer Unsecured loans
Your Answer Unsecured loans
Multiple Choice Single Answer
Question The rate of discount which would equate the present value of investments to the
present value of benefits over the life of the project is known as :Correct Answer Internal rate of return
Your Answer Internal rate of return
Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any one of the following
basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question ________ is the summary of cash book or Receipts and Payments statement.
Correct Answer Cash flow statement
Your Answer Cash flow statement
Multiple Choice Single Answer
Question The point at which the unit neither earns profit nor incurs loss is known as :Correct Answer Break Even Point
Your Answer Break Even Point
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing Project finance
financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Multiple Answer
Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
-4-
Project Finance _19
Your Answer Consumption-level method , Econometric method
Select The Blank
Question Under ________ method, the forecasts are modified in the light of observed errors.
Correct Answer Exponential smoothing
Your Answer Exponential smoothing
Multiple Choice Multiple Answer
Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit and loss
account to arrive at operating profits
Your Answer Added back to the profit as per profit and loss account to arrive at operating
profits , Item of current assets , Item of working capital
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the company are not
distributed by it by way of ________ but are kept aside for use in future for expansion or other
purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of cash is termed as
:Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Select The Blank
Question Name and designation of the chief executive comes under the ________ category.
Correct Answer General
Your Answer General
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Single Answer
Question In the Cash flow statement, the sources of funds include
Correct Answer Share Issue
Your Answer Share Issue
-5-
Project Finance _20
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Land and site development comes under the cost aspect of the Project report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Location of the factory comes under the :Correct Answer General category
Your Answer General category
Match The Following
Question Correct Answer Your Answer
Project appraisal It is the evaluation of project from technical, market, financial, economic and
social perspective before committing funds for investment It is a preliminary assessment of the
project idea to determine whether or not the investment opportunity is promising
Program It is large in scope, is activity oriented and is not necessarily time bound It is large in
scope, is activity oriented and is not necessarily time bound
Project It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of
varied skills and resources It deals with the impact of the investment project on people and their
lives
Pre-feasibility study It is a preliminary assessment of the project idea to determine whether or not
the investment opportunity is promising It is one-shot, time-limited, goal oriented, major
undertaking requiring the commitment of varied skills and resources
Multiple Choice Single Answer
Question The sources of funding have expanded from banks, insurance companies and
multilateral agencies to include the :Correct Answer Capital market
Your Answer Debt market
Multiple Choice Single Answer
Question Cost of overheads include :Correct Answer Cost of repairs and maintenance
Your Answer Cost of electricity
True/False
Question The Detailed Project report spells out the modus operandi for the implementation of
the Project and the realization of the Project objectives.
Correct Answer True
Your Answer True
True/False
Question Debt Service means payment of installments and interest against an amount
borrowed as per terms of loan.
Correct Answer True
Your Answer True
True/False
-1-
Project Finance _20
Question The ratios of one organisation compared with the ratios of the same organisation is
termed as inter-firm comparison.
Correct Answer False
Your Answer False
Select The Blank
Question Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer Application
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Multiple Answer
Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks
Your Answer Stars , Question marks , Invest
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Auditors report , Balance Sheet
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Chain ratio Relationship , Exponential Relationship
Multiple Choice Single Answer
Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun
Your Answer Profit maximisation
Multiple Choice Single Answer
Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the society as a
whole
Your Answer Adopted as a guide depending on the consumption pattern of the society as a
whole
Multiple Choice Multiple Answer
Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges the various facts ,
It does not consider non-fund transactions
Your Answer It does not consider non-fund transactions , It does not help in determining future
requirement of funds , It does not provide any new information but only rearranges the various
facts
Select The Blank
-2-
Project Finance _20
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Increases
Multiple Choice Single Answer
Question Preoperative expenses includes :Correct Answer Bank guarantees
Your Answer Brokerage on capital issue
Multiple Choice Single Answer
Question Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question In order to meet the cost of large project, the technique of ________ has been
developed so that the financial commitment and risks associated with a project are shared
between the project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer Limited recourse financing
True/False
Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into
account.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question The ratio which covers those assets which can be converted into cash immediately is
known as :Correct Answer Quick ratio
Your Answer Current ratio
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board
Your Answer Managing Director , Electrical engineers , Institutional nominees
Multiple Choice Single Answer
Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness
Your Answer Relative Market share and Industry Growth rate
Multiple Choice Single Answer
Question The basic document for facilitating Project financing is the :Correct Answer Detailed Project report
Your Answer Detailed Project report
Select The Blank
Question The ________ market is longer the order of the day since this is an era of
professionalization and specialised services are available at cost.
Correct Answer Monopolistic
Your Answer Monopolistic
True/False
-3-
Project Finance _20
Question Ratio should be computed on the basis of inter-related figures which have a cause
and effect relationship.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future
availability and supply of the product
Your Answer Future demand of the product , Export market , Future availability and supply of
the product
Select The Blank
Question Having decided on the location and product, the promoter takes into account the
________ that is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Multiple Answer
Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question More accurate the estimation of the level of current assets and current liabilities, more
accurate will be estimation of the requirement of ________.
Correct Answer Working capital
Your Answer Working capital
Multiple Choice Multiple Answer
Question Defaults category of the Project report may be in respect of :Correct Answer Term loans , Principal , Interest
Your Answer Term loans , Principal , Interest
Match The Following
Question Correct Answer Your Answer
General functional layout Present the general relationship between equipment buildings and civil
works The plan of work concerning installation as well as initial operation
Location Broad area such as city, industrial belt etc. The diagrams indicating the flow of materials,
utilities, final product, by-products and emission
Site Specific piece of land where the project would be set up Broad area such as city, industrial
belt etc.
Plant layout Physical layout of the factory Specific piece of land where the project would be set up
True/False
Question If the organisation is a trading organisation, the requirement of working capital will be
on the lower side.
Correct Answer False
Your Answer True
Select The Blank
-4-
Project Finance _20
Question Cost of fencing comes under the ________ category of the Project report.
Correct Answer Land and site development
Your Answer Building cost
Multiple Choice Multiple Answer
Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend
Your Answer Increase in working capital , Preliminary expenses , Preliminary expenses written
off
Multiple Choice Multiple Answer
Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing
Your Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing ,
Preliminary expenses
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products which are being
used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Select The Blank
Question In the GE's Stop Light Matrix, when ________ situation prevails , Products call for
divestment.
Correct Answer Average Business Strength and Low Industry attractiveness
Your Answer Weak Business strength and high Industry attractiveness
Select The Blank
Question Investors who invest in the debentures of the company are the ________ of the
company.
Correct Answer Creditors
Your Answer Creditors
Multiple Choice Multiple Answer
Question Debt Service coverage ratio may be considered to be one of the most important ratios
calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer Shareholders , Bankers , Creditors
Multiple Choice Single Answer
Question Dissentions among the promoters is a :Correct Answer Management problem
Your Answer Management perception
Select The Blank
Question Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Does not result
True/False
Question The secondary data is collected through market survey, specific for the project being
appraised.
Correct Answer False
Your Answer False
-5-
Project Finance _20
Multiple Choice Single Answer
Question Profit is the result of customer satisfaction, indeed customer delight under the :Correct Answer Marketing concept
Your Answer Marketing concept
Multiple Choice Multiple Answer
Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer Funds from operation , Goodwill written off , Funds from long term loans
-6-
Project Finance _21
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Debentures , Cash Profits , Shares
Your Answer Debentures , Cash Profits , Shares
Multiple Choice Multiple Answer
Question The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer Equity shares , Bridge loan , Public deposit
Multiple Choice Single Answer
Question The emphasis of the Banks and Financial institutions particularly in India has shifted
from 'Sanctions', 'Disbursements' and 'Security-orientation' to 'Recovery/Recycling' and :Correct Answer Activity orientation
Your Answer Activity orientation
Multiple Choice Single Answer
Question Technology, design, layout of the plant as well as inputs and infrastructural facilities
are to be considered under :Correct Answer Technical appraisal
Your Answer Financial appraisal
Select The Blank
Question Detailed Project Report is generally prepared from a ________ report with additional
information.
Correct Answer Feasibility
Your Answer Feasibility
True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors is more
than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price - Variables)
Your Answer (Profit after tax +Depreciation + Interest)/ Interest
Multiple Choice Single Answer
Question Receivables is categorised under :Correct Answer Current assets and liabilities
Your Answer Material inputs and utilities
Multiple Choice Multiple Answer
Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Internal measure
Select The Blank
Question Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital
Your Answer Fixed assets
-1-
Project Finance _21
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Organisation Building , Person / system oriented , Promoter's equity / stake
True/False
Question Financial analysis based on accounting ratios will give mis-leading results if the
effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer Plant capacity , Quality standards , Raw material requirement
Select The Blank
Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Decrease in funds
Multiple Choice Multiple Answer
Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer cost of development , Factory building , Auxiliary buildings
Match The Following
Question Correct Answer Your Answer
Increase in current liabilities Decreases working capital Stability of funds
Increase in liabilities Inflow of funds Inflow of funds
Decrease in liabilities Outflow of funds Increases working capital
Increase in current assets Increases working capital Outflow of funds
Select The Blank
Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and
marketable securities.
Correct Answer Fund
Your Answer Fund
True/False
Question Name of the finance manager comes under the Project organisation category of the
Project report.
Correct Answer True
Your Answer False
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
True/False
-2-
Project Finance _21
Question The maximum Seed Capital assistance provided by IDBI under the project will be
restricted to 50% of the required promoter's contribution or Rs. 50 lakhs whichever is lower.
Correct Answer False
Your Answer True
Match The Following
Question Correct Answer Your Answer
Project organisation Finance manager Completion date of the project
General category of Project report Location of factory Reasons for cost escalations
Cost aspect of the project report Consultancy fees Finance manager
Financing plan Unsecured loans Location of factory
True/False
Question Trend projection method is the important technique for forecasting demand.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability
Multiple Choice Multiple Answer
Question The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new shares
Your Answer Purchase of fixed assets , Cash from operations , Sale of machinery
Multiple Choice Multiple Answer
Question External sources of cash are as follows :Correct Answer Issue of new shares , Long term loans , Short term borrowings
Your Answer Issue of new shares , Long term loans , Short term borrowings
True/False
Question Production line diagrams show the organisation structure of the project along with
information on location, personnel required for various departments, and their inter-relationship.
Correct Answer False
Your Answer True
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Book debts
Select The Blank
Question The company having ________, is appropriate for the strategic posture of Defensive
under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and belongs to
a not so attractive industry, operating in an unstable environment
Your Answer High financial strength, high industrial strength, enjoying a competitive advantage
and belonging to an attractive industry, operating in a relatively stable environmental conditions
-3-
Project Finance _21
Multiple Choice Single Answer
Question Management aspect of detailed project report includes
Correct Answer Organisation structure
Your Answer Demand forecasting
Select The Blank
Question ________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer High
Multiple Choice Multiple Answer
Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Operating Loss , Non operating Income
Multiple Choice Single Answer
Question The cash flow of all the years during the expected life of the project are discounted at
a pre-determined cut off rate and :Correct Answer Net Present value is obtained
Your Answer Internal rate of return is obtained
Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To indicate the financial
strength and weakness of the business , To help to understand the changes in assets as well as
asset sources which are not revealed by the income statement
Your Answer To find out the uses of loans raised by the business , To indicate the financial
strength and weakness of the business , To help to understand the changes in assets as well as
asset sources which are not revealed by the income statement
Multiple Choice Single Answer
Question Cost of materials include :Correct Answer Cost of components and consumable stores
Your Answer Cost of electricity
True/False
Question The Detailed Project report must indicate the gestation period of the project.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Strategic Position and Action Evaluation Model :Correct Answer Is an approach to hammer out an appropriate strategic posture for a firm and
its individual business
Your Answer Which is highly respected for the sophistication, maturity and quality in its
planning systems
Select The Blank
Question Location of the factory comes under the ________ category of the Project report.
Correct Answer General
Your Answer General
Select The Blank
Question Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Internal
-4-
Project Finance _21
Multiple Choice Multiple Answer
Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory
Your Answer Name of the Industrial concern , Proposed product , Location of the factory
Select The Blank
Question Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer Two
Multiple Choice Single Answer
Question Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management
Your Answer Current assets and liabilities
Select The Blank
Question Commission outstanding is ________ of funds.
Correct Answer Application
Your Answer Application
Multiple Choice Single Answer
Question The statement which shows the movement of cash into and out of firm's kittie is
known as :Correct Answer Cash flow statement
Your Answer Profit and Loss statement
Multiple Choice Single Answer
Question Cost of utilities include :Correct Answer Cost of electricity
Your Answer Cost of components and consumable stores
Multiple Choice Single Answer
Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting
Your Answer Detailed Project Engineering
True/False
Question In both the extreme situations of trade cycles i.e. Inflation and depression,
requirement of working capital may be high.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should be considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Your Answer Proximity to raw materials and markets , Plant capacity , Availability of
infrastructure
-5-
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
For computing Interest coverage ratio, Profit after Interest and
taxes are taken into account.
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer
Working capital loan , Equity shares
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False
Question
Debt Service means payment of installments and interest
against an amount borrowed as per terms of loan.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Sewerage and drainage cost of the project is categorised under
:Correct Answer Building cost
Your Answer
Land and site cost
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed
as :Correct Answer Strategic perspective
Your Answer
Strategic perspective
Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :-
Correct Answer A list of industries wherein the product is used is made and
quantity and volume is arrived at
Your Answer
A method based on the assumption that the behavior of the
variables would continue in similar/same direction and
magnitude, as in the past
Select The Blank
Question
Longer the duration of production cycle, higher the requirement
of ________.
Correct Answer Working capital
Your Answer
Equity financing
True/False
Question
There is a need for studying Project finance both for the lenders
as well as the borrowers as both of them have equal stake in
making the Project a success.
Correct Answer True
Your Answer
True
Select The Blank
Question
Details regarding Bridge finance comes under the ________
category of Project report.
Correct Answer Financing plan
Your Answer
Cost aspect
Multiple Choice Single Answer
Question
Cost of utilities include :Correct Answer Cost of electricity
Your Answer
Cost of insurance
Select The Blank
Question
A market survey generally is a ________ survey.
Correct Answer Sample
Your Answer
Census
Multiple Choice Multiple Answer
Question
The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may
lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Position regarding requirement and training of operational staff
comes under the ________ category of Project report.
Correct Answer Project organisation
Your Answer
General category
Select The Blank
Question
________ is the summary of cash book or Receipts and
Payments statement.
Correct Answer Cash flow statement
Your Answer
Fund flow statement
Multiple Choice Multiple Answer
Question
A project objective can be said to have the following dimensions
viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer
Strategic perspective , Finance cost aspect
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it is for an indefinite period of time
True/False
Question
It is mandatory for each unit to obtain necessary clearance from
Pollution Control Authorities before setting up any project.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Time Series Projection Methods of Demand forecasting consists
of :Correct Answer Trend Projection method , Moving Averages method
Your Answer
Consumption-level method , Econometric method
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians
may lead to :Correct Answer Cost and time overrun
Your Answer
Profit maximisation
True/False
Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True
Your Answer
True
Select The Blank
Question
Having decided on the location and product, the promoter takes
into account the ________ that is to be adopted for producing
the product.
Correct Answer Manufacturing process and technology
Your Answer
Size of the plant
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer
Cost / Time overruns , Promotion
Match The Following
Question
Increase in current
liabilities
Correct Answer
Your Answer
Decreases working capital Decreases working capital
Increase in liabilities
Inflow of funds
Cash flow analysis
Decrease in liabilities
Outflow of funds
Increases working capital
Increase in current assets Increases working capital Outflow of funds
Select The Blank
Question
In order to meet the cost of large project, the technique of
________ has been developed so that the financial commitment
and risks associated with a project are shared between the
project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer
Limited recourse financing
Select The Blank
Question
Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer
One
Select The Blank
Question
________ tries to have what the customer will want- where,
when, in what form and at what price.
Correct Answer Marketing
Your Answer
Selling
True/False
Question
Nominal maximum capacity is the capacity that is technically
attainable and this corresponds to the supplier's guaranteed
capacity.
Correct Answer True
Your Answer
True
Select The Blank
Question
Commission outstanding is ________ of funds.
Correct Answer Application
Your Answer
Application
Multiple Choice Single Answer
Question
Profit is the result of customer satisfaction, indeed customer
delight under the :Correct Answer Marketing concept
Your Answer
Profitability concept
True/False
Question
The secondary data is collected through market survey, specific
for the project being appraised.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
The method for evaluating the profitability of industrial projects
whose object is to ascertain the period required for recovering
the entire investment made in a project is known as :Correct Answer Pay back method
Your Answer
Pay back method
Multiple Choice Single Answer
Question
Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering
Your Answer
Fixation of means of financial structure
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to
as :Correct Answer Project finance
Your Answer
Project finance
Multiple Choice Multiple Answer
Question
Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit
and loss account to arrive at operating profits
Your Answer
Item of current liabilities , Added back to the profit as per profit
and loss account to arrive at operating profits
True/False
Question
Trend projection method is the important technique for
forecasting demand.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Organisation and
Management
Strikes/lay-offs/lockouts
etc.
Sanctioned bank limit
Material inputs and utilities Stock of raw material
Stock of raw material
Working capital
Sanctioned bank limit
Finished goods
Marketing
Pricing policy
Receivables
True/False
Question
Cost under-estimation at the project preparation and evaluation
stage leads to cost and time over run.
Correct Answer True
Your Answer
True
True/False
Question
In small scale organisation, requirement of working capital is
quite high due to high amount of overheads, high buying costs
and high selling cost.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Financial and economic aspect of the Visit report consists of :Correct Answer Company's financial year , Impact of Government policies on
company operations , Comments on the last published accounts
Your Answer
Company's financial year
Multiple Choice Single Answer
Question
The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price - Variables)
Your Answer
Fixed cost / ( Sales Price - Variables)
Multiple Choice Single Answer
Question
Sanctioned bank limits is categorised under :-
Correct Answer Working capital
Your Answer
Production, Sales and Profitability
Select The Blank
Question
Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer
Does not result
Multiple Choice Single Answer
Question
The assets held by a business which can be converted in the
form of cash or used during the course of normal operations is
termed as :Correct Answer Current assets
Your Answer
Current assets
True/False
Question
The Detailed Project report spells out the modus operandi for the
implementation of the Project and the realization of the Project
objectives.
Correct Answer True
Your Answer
True
Project Finance _2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer
Sales rise
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Multiple Answer
Question
The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks
Your Answer
Stars , Question marks
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Auditors report
Match The Following
Question
Correct Answer
Your Answer
Technical aspect of
detailed project report
Detailed Project
Engineering
Transport
Financial aspect of
Detailed Project report
Profitability
Detailed Project
Engineering
Marketing aspect of
Detailed Project report
Distribution
Conservativeness
Management aspect of
detailed project report
Conservativeness
Distribution
True/False
Question
Nominal maximum capacity is the capacity that is technically
attainable and this corresponds to the supplier's guaranteed
capacity.
-1 -
Project Finance _2
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting
Your Answer
Demand forecasting
True/False
Question
In the BCG Matrix, the key term of Cash Cows require further
commitment of funds.
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend
Your Answer
Increase in working capital , Preliminary expenses
Match The Following
Question
Correct Answer
Your Answer
Project appraisal
It is the evaluation of
project from technical,
market, financial,
economic and social
perspective before
committing funds for
investment
It is a preliminary
assessment of the project
idea to determine whether
or not the investment
opportunity is promising
Program
It is large in scope, is
It deals with the impact of
activity oriented and is not the investment project on
necessarily time bound
people and their lives
Project
It is one-shot, time-limited, It involves the allocation of
goal oriented, major
resources among
undertaking requiring the competing projects
commitment of varied
skills and resources
Pre-feasibility study
It is a preliminary
It is large in scope, is
assessment of the project activity oriented and is not
idea to determine whether necessarily time bound
or not the investment
opportunity is promising
-2 -
Project Finance _2
True/False
Question
Change in the project concept itself may lead to cost and time
overrun.
Correct Answer True
Your Answer
True
True/False
Question
Land and site development comes under the cost aspect of the
Project report.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
It is said that a second rate project in the hands of first rate
management is better than a first rate project in the hands of :Correct Answer Second rate management
Your Answer
Second rate management
Select The Blank
Question
Location of the factory comes under the ________ category of
the Project report.
Correct Answer General
Your Answer
Cost aspect
True/False
Question
Production line diagrams show the organisation structure of the
project along with information on location, personnel required for
various departments, and their inter-relationship.
Correct Answer False
Your Answer
True
Select The Blank
Question
The Project Cycle should be in the ________ order
Correct Answer Identification of Project - Project Appraisal - Negotiations for
loans
Your Answer
Procurement of Goods/services - Project Appraisal - Monitoring
of operations on completion
Multiple Choice Single Answer
Question
Cost of materials include :-
-3 -
Project Finance _2
Correct Answer Cost of components and consumable stores
Your Answer
Cost of components and consumable stores
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans
True/False
Question
The Detailed Project report must indicate the gestation period of
the project.
Correct Answer True
Your Answer
True
Select The Blank
Question
Having decided on the location and product, the promoter takes
into account the ________ that is to be adopted for producing
the product.
Correct Answer Manufacturing process and technology
Your Answer
Size of the plant
Multiple Choice Single Answer
Question
The cost of Plant and Machinery may be adjusted for a possible
increase known as :Correct Answer Escalation
Your Answer
Escalation
Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer
No flow
Select The Blank
Question
________ is that scarce input which financial resources alone
cannot mobilise.
Correct Answer Management
Your Answer
Sales
-4 -
Project Finance _2
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in
operation
Your Answer
Problems pertaining to the period when the project is in
operation
Select The Blank
Question
Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer
Short term
Multiple Choice Single Answer
Question
In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share
Your Answer
Products which enjoy a high market share as well as a high
growth rate
Select The Blank
Question
________ capital represents permanent capital.
Correct Answer Equity
Your Answer
Equity
Multiple Choice Single Answer
Question
Demographic market appraisal answers to
Correct Answer Who they are?
Your Answer
When they buy?
Select The Blank
Question
________ is a current liability.
Correct Answer Trade credit
Your Answer
True/False
Question
Trade credit
The construction of National Golden Quadrilateral can be
recognised as Project.
-5 -
Project Finance _2
Correct Answer True
Your Answer
True
Select The Blank
Question
Cost of fencing comes under the ________ category of the
Project report.
Correct Answer Land and site development
Your Answer
Building cost
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors
should be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Single Answer
Question
The norms for providing open areas have to be strictly followed
for safety of labour and allow sufficient space for outflow of
effluents safely in case of :Correct Answer Chemical unit
Your Answer
Chemical unit
True/False
Question
Name of the finance manager comes under the Project
organisation category of the Project report.
Correct Answer True
Your Answer
True
True/False
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer
Plant and machinery
-6 -
Project Finance _2
Select The Blank
Question
Name and designation of the chief executive comes under the
________ category.
Correct Answer General
Your Answer
Project organisation
Multiple Choice Multiple Answer
Question
The various aspects which need to be considered while
assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer
Environmental factors , Risk involved , Managerial compensation
Multiple Choice Multiple Answer
Question
Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in
secured borrowing
Your Answer
Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Multiple Answer
Question
Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant
Your Answer
Technology , Layout of the plant , Production costs
Multiple Choice Multiple Answer
Question
Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer
Utilisation of installed capacity , Input availability
Select The Blank
Question
________ is a current asset
Correct Answer Book debts
Your Answer
Book debts
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :-
-7 -
Project Finance _2
Correct Answer Problems faced during the Construction and Project
implementation
Your Answer
Problems faced during the Construction and Project
implementation
Multiple Choice Multiple Answer
Question
The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer
Operating Profit , Non operating Income , Dividends
True/False
Question
A high debt equity ratio may indicate that the financial stake of
the creditors is more than that of the owners.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Multiple Answer
Question
The permanent requirement of working capital should be
financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer
Cash Profits , Shares
-8 -
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer
Sales rise
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Multiple Answer
Question
The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks
Your Answer
Stars , Question marks
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Auditors report
Match The Following
Question
Correct Answer
Your Answer
Technical aspect of
detailed project report
Detailed Project
Engineering
Transport
Financial aspect of
Detailed Project report
Profitability
Detailed Project
Engineering
Marketing aspect of
Detailed Project report
Distribution
Conservativeness
Management aspect of
detailed project report
Conservativeness
Distribution
True/False
Question
Nominal maximum capacity is the capacity that is technically
attainable and this corresponds to the supplier's guaranteed
capacity.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting
Your Answer
Demand forecasting
True/False
Question
In the BCG Matrix, the key term of Cash Cows require further
commitment of funds.
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend
Your Answer
Increase in working capital , Preliminary expenses
Match The Following
Question
Correct Answer
Your Answer
Project appraisal
It is the evaluation of
project from technical,
market, financial,
economic and social
perspective before
committing funds for
investment
It is a preliminary
assessment of the project
idea to determine whether
or not the investment
opportunity is promising
Program
It is large in scope, is
It deals with the impact of
activity oriented and is not the investment project on
necessarily time bound
people and their lives
Project
It is one-shot, time-limited, It involves the allocation of
goal oriented, major
resources among
undertaking requiring the competing projects
commitment of varied
skills and resources
Pre-feasibility study
It is a preliminary
It is large in scope, is
assessment of the project activity oriented and is not
idea to determine whether necessarily time bound
or not the investment
opportunity is promising
True/False
Question
Change in the project concept itself may lead to cost and time
overrun.
Correct Answer True
Your Answer
True
True/False
Question
Land and site development comes under the cost aspect of the
Project report.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
It is said that a second rate project in the hands of first rate
management is better than a first rate project in the hands of :Correct Answer Second rate management
Your Answer
Second rate management
Select The Blank
Question
Location of the factory comes under the ________ category of
the Project report.
Correct Answer General
Your Answer
Cost aspect
True/False
Question
Production line diagrams show the organisation structure of the
project along with information on location, personnel required for
various departments, and their inter-relationship.
Correct Answer False
Your Answer
True
Select The Blank
Question
The Project Cycle should be in the ________ order
Correct Answer Identification of Project - Project Appraisal - Negotiations for
loans
Your Answer
Procurement of Goods/services - Project Appraisal - Monitoring
of operations on completion
Multiple Choice Single Answer
Question
Cost of materials include :-
Correct Answer Cost of components and consumable stores
Your Answer
Cost of components and consumable stores
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans
True/False
Question
The Detailed Project report must indicate the gestation period of
the project.
Correct Answer True
Your Answer
True
Select The Blank
Question
Having decided on the location and product, the promoter takes
into account the ________ that is to be adopted for producing
the product.
Correct Answer Manufacturing process and technology
Your Answer
Size of the plant
Multiple Choice Single Answer
Question
The cost of Plant and Machinery may be adjusted for a possible
increase known as :Correct Answer Escalation
Your Answer
Escalation
Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer
No flow
Select The Blank
Question
________ is that scarce input which financial resources alone
cannot mobilise.
Correct Answer Management
Your Answer
Sales
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in
operation
Your Answer
Problems pertaining to the period when the project is in
operation
Select The Blank
Question
Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer
Short term
Multiple Choice Single Answer
Question
In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share
Your Answer
Products which enjoy a high market share as well as a high
growth rate
Select The Blank
Question
________ capital represents permanent capital.
Correct Answer Equity
Your Answer
Equity
Multiple Choice Single Answer
Question
Demographic market appraisal answers to
Correct Answer Who they are?
Your Answer
When they buy?
Select The Blank
Question
________ is a current liability.
Correct Answer Trade credit
Your Answer
True/False
Question
Trade credit
The construction of National Golden Quadrilateral can be
recognised as Project.
Correct Answer True
Your Answer
True
Select The Blank
Question
Cost of fencing comes under the ________ category of the
Project report.
Correct Answer Land and site development
Your Answer
Building cost
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors
should be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Single Answer
Question
The norms for providing open areas have to be strictly followed
for safety of labour and allow sufficient space for outflow of
effluents safely in case of :Correct Answer Chemical unit
Your Answer
Chemical unit
True/False
Question
Name of the finance manager comes under the Project
organisation category of the Project report.
Correct Answer True
Your Answer
True
True/False
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer
Plant and machinery
Select The Blank
Question
Name and designation of the chief executive comes under the
________ category.
Correct Answer General
Your Answer
Project organisation
Multiple Choice Multiple Answer
Question
The various aspects which need to be considered while
assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer
Environmental factors , Risk involved , Managerial compensation
Multiple Choice Multiple Answer
Question
Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in
secured borrowing
Your Answer
Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Multiple Answer
Question
Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant
Your Answer
Technology , Layout of the plant , Production costs
Multiple Choice Multiple Answer
Question
Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer
Utilisation of installed capacity , Input availability
Select The Blank
Question
________ is a current asset
Correct Answer Book debts
Your Answer
Book debts
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :-
Correct Answer Problems faced during the Construction and Project
implementation
Your Answer
Problems faced during the Construction and Project
implementation
Multiple Choice Multiple Answer
Question
The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer
Operating Profit , Non operating Income , Dividends
True/False
Question
A high debt equity ratio may indicate that the financial stake of
the creditors is more than that of the owners.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Multiple Answer
Question
The permanent requirement of working capital should be
financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer
Cash Profits , Shares
Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :Correct Answer To help to understand the changes in assets as well as asset sources
which are not revealed by the income statement , To find out the uses of
loans raised by the business , To indicate the financial strength and
weakness of the business
Your Answer
To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources which are not
revealed by the income statement , Helps to prepare financial statements
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer
Inflow of cash
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer
Project finance
True/False
Question
The Detailed Project report spells out the modus operandi for the
implementation of the Project and the realization of the Project objectives.
Correct Answer True
Your Answer
True
Select The Blank
Question
As the plant capacity increase, the investment cost unit capacity
________.
Correct Answer Decreases
Your Answer
Decreases
Multiple Choice Multiple Answer
Question
Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer
Funds from operation , Loss on sale of fixed assets
Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :-
Correct Answer A list of industries wherein the product is used is made and quantity and
volume is arrived at
Your Answer
A list of industries wherein the product is used is made and quantity and
volume is arrived at
Multiple Choice Multiple Answer
Question
The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans
True/False
Question
In small scale organisation, requirement of working capital is quite high
due to high amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project
report
Location of factory
Location of factory
Cost aspect of the project
report
Consultancy fees
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank
Question
Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer
Working capital
Multiple Choice Single Answer
Question
Sanctioned bank limits is categorised under :Correct Answer Working capital
Your Answer
Select The Blank
Production, Sales and Profitability
Question
Cost of fencing comes under the ________ category of the Project report.
Correct Answer Land and site development
Your Answer
Land and site development
True/False
Question
Trend projection method is the important technique for forecasting
demand.
Correct Answer True
Your Answer
True
True/False
Question
The emphasis of a finance manager should be on taking a synergistic view
of the project rather than looking at it only from the financial aspects.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Select The Blank
Question
The basic difference between the feasibility study report and ________ is
the level of accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer
Detailed Project report
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Location of the factory comes under the ________ category of the Project
report.
Correct Answer General
Your Answer
General
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False
Question
Market potential should be determined under the Marketing aspect of the
Project report.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ tries to have what the customer will want- where, when, in what
form and at what price.
Correct Answer Marketing
Your Answer
Marketing
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost is known
as :Correct Answer Finance cost aspect
Your Answer
Strategic perspective
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer
True/False
Question
Social aspect
Nominal maximum capacity is the capacity that is technically attainable
and this corresponds to the supplier's guaranteed capacity.
Correct Answer True
Your Answer
True
Select The Blank
Question
In order to meet the cost of large project, the technique of ________ has
been developed so that the financial commitment and risks associated with
a project are shared between the project sponsor and the lending
institutions.
Correct Answer Limited recourse financing
Your Answer
Long term financing
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer
That it involves current outlay of funds in expectation of future benefits
Multiple Choice Single Answer
Question
Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the society
as a whole
Your Answer
Adopted as a guide depending on the consumption pattern of the society
as a whole
Multiple Choice Single Answer
Question
The norms for providing open areas have to be strictly followed for safety
of labour and allow sufficient space for outflow of effluents safely in case of
:Correct Answer Chemical unit
Your Answer
Chemical unit
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Investors who invest in the debentures of the company are the ________
of the company.
Correct Answer Creditors
Your Answer
Creditors
Match The Following
Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment
Machine tools
Machine tools
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial
commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question
The industrial concern earned profits by increasing the sales volume under
the :Correct Answer Sales concept
Your Answer
Sales concept
True/False
Question
The 'BCG Matrix 'analysis various products of the organisation in the terms
of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer
False
Select The Blank
Question
Detailed Project Report is generally prepared from a ________ report with
additional information.
Correct Answer Feasibility
Your Answer
Feasibility
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians may lead to
:Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Miscellaneous expenditure is written on the asset side of the Balance
sheet.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory
Your Answer
Name of the Industrial concern , Proposed product , Location of the factory
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific objectives
within a :Correct Answer Predefined time
Your Answer
Predefined time
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer
Equity shares , Public deposit
Multiple Choice Single Answer
Question
The cost which change in the same proportion in which the level of
production changes is known as :-
Correct Answer Variable cost
Your Answer
Variable cost
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementation
Your Answer
Problems faced during the Construction and Project implementation
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon appraising
the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation
Your Answer
Problems pertaining to the period when the project is in operation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question 1 The advantage of secondary sources of data is that it is readily and economically
available.
Correct Answer True
Your Answer True
True/False
Question2 In small scale organisation, requirement of working capital is quite high due to high
amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
True/False
Question3 Banks and Financial Institutions, world-wide, are now financing projects with
strategies and terms that would have been hard to believe/imagine just a few years back.
Correct Answer True
Your Answer True
Select The Blank
Question 4 ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Multiple Answer
Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Multiple Choice Single Answer
Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question 7 Technical aspect of detailed project report includes : Correct Answer Detailed Project Engineering
Your Answer Detailed Project Engineering
Multiple Choice Multiple Answer
Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing
Your Answer Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Single Answer
Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question 10 A smaller unit into which the overall requirement of capital of a company is subdivided is termed as ________.
Correct Answer Share
Your Answer Share
Multiple Choice Single Answer
Question11 A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Single Answer
Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Multiple Answer
Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer Funds from operation , Goodwill written off
Multiple Choice Multiple Answer
Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Determination , Organisation Building , Person / system oriented
Select The Blank
Question15 Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer One
True/False
Question16 Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question17 The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Multiple Answer
Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question 19 ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
True/False
Question20 Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
Select The Blank
Question21 Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question22 Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Short term
Select The Blank
Question23 ________ is the summary of cash book or Receipts and Payments statement.
Correct Answer Cash flow statement
Your Answer Trial balance
True/False
Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of
funds.
Correct Answer False
Your Answer True
True/False
Question25 Cost and time overrun of the project may lead to loss on account of lost market
opportunities.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Multiple Choice Multiple Answer
Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Multiple Choice Single Answer
Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate
Your Answer Products which enjoy a high market share as well as a high growth rate
Multiple Choice Single Answer
Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy?
Your Answer Why they buy?
True/False
Question30 Production line diagrams show the organisation structure of the project along with
information on location, personnel required for various departments, and their inter-relationship.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question31 While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Multiple Choice Single Answer
Question32 The cost which change in the same proportion in which the level of production
changes is known as :Correct Answer Variable cost
Your Answer Variable cost
Select The Blank
Question33 Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Decreases
Multiple Choice Multiple Answer
Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
Multiple Choice Single Answer
Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question36 Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
Multiple Choice Multiple Answer
Question37 Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Match The Following
Question38 Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question 40 General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory
Your Answer Name of the Industrial concern , Proposed product , Location of the factory
Multiple Choice Multiple Answer
Question 41 The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question43 After the SPACE chart is constructed, we would normally get any one of the
following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question 44 ________ occupies a unique position in the macro economic development which
helps in induction of new technology and facilitates, greater efficiency as well as higher
productivity.
Correct Answer Investment
Your Answer Marketing
Multiple Choice Single Answer
Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question46 Name and designation of the chief executive comes under the ________ category.
Correct Answer General
Your Answer General
Match The Following
Question47 Correct Answer Your Answer
Private investment Power generation Machine tools
Project Time -bound Time -bound
Programme Not necessarily time bound Not necessarily time bound
Foreign direct investment Machine tools Power generation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Match The Following
Question
Correct Answer
Your Answer
Econometric method
Mathematical
representation of
economic relationship
Mathematical
representation of
economic relationship
Primary source of data
Market survey
Market survey
Secondary source of data Collected in some other
context
Collected in some other
context
Leading indicators
Variables that change
faster than others
Variables that change
faster than others
Select The Blank
Question
Details regarding Internal accruals comes under the ________
category of Project report.
Correct Answer Financing plan
Your Answer
Financing plan
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer
Plant capacity , Quality standards , Raw material requirement
Select The Blank
Question
A smaller unit into which the overall requirement of capital of a
company is sub-divided is termed as ________.
Correct Answer Share
Your Answer
Share
Select The Blank
Question
In order to meet the cost of large project, the technique of
________ has been developed so that the financial commitment
and risks associated with a project are shared between the
project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer
Limited recourse financing
Select The Blank
Question
________ is a current liability.
Correct Answer Trade credit
Your Answer
Trade credit
Select The Blank
Question
________ is a current asset
Correct Answer Book debts
Your Answer
Book debts
Multiple Choice Multiple Answer
Question
Debt Service coverage ratio may be considered to be one of the
most important ratios calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer
Bankers , Creditors , Financial Institutions
Multiple Choice Multiple Answer
Question
Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer
Current ratio , Internal measure , Quick ratio
Multiple Choice Single Answer
Question
Cost of laying roads comes under :Correct Answer Land and site cost
Your Answer
Preoperative cost
Multiple Choice Single Answer
Question
Pre-operative expenses include :Correct Answer Interest on deferred payments
Your Answer
True/False
Market research expenses
Question
The cost factors of the product mixed is also taken into account
to arrive at cost at various levels of production and its cost
impact of the manufacturing.
Correct Answer True
Your Answer
True
Select The Blank
Question
Retained earnings indicates that whatever profits are earned by
the company are not distributed by it by way of ________ but
are kept aside for use in future for expansion or other purpose.
Correct Answer Dividend
Your Answer
Dividend
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system
oriented
Your Answer
Organisation Building , Person / system oriented , Promoter's
equity / stake
True/False
Question
The Detailed Project report spells out the modus operandi for
the implementation of the Project and the realization of the
Project objectives.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
General Electric Stop Light Matrix analyses products in terms of
:Correct Answer Business strength and Industrial Attractiveness
Your Answer
Company's competitive advantage and Company's financial
strength
True/False
Question
The emphasis of a finance manager should be on taking a
synergistic view of the project rather than looking at it only from
the financial aspects.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
After the SPACE chart is constructed, we would normally get
any one of the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer
Aggressive Posture , Competitive Posture , Defensive Posture
True/False
Question
The ratios of one organisation compared with the ratios of the
same organisation is termed as inter-firm comparison.
Correct Answer False
Your Answer
False
Select The Blank
Question
Detailed Project Report is generally prepared from a ________
report with additional information.
Correct Answer Feasibility
Your Answer
Feasibility
Select The Blank
Question
Under ________ method, the forecasts are modified in the light
of observed errors.
Correct Answer Exponential smoothing
Your Answer
Cobb Douglas Relationship
Match The Following
Question
Correct Answer
Your Answer
Source of funds
Depreciation
Investment
Fixed assets
Building
Building
Current assets
Debtors
Debtors
Current liability
Trade credit
Trade credit
True/False
Question
The Detailed Project report must indicate the gestation period of
the project.
Correct Answer True
Your Answer
True/False
True
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may
lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer
Power Generation and Distribution
Multiple Choice Single Answer
Question
The method for evaluating the profitability of industrial projects
whose object is to ascertain the period required for recovering
the entire investment made in a project is known as :Correct Answer Pay back method
Your Answer
Pay back method
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Multiple Choice Single Answer
Question
The rate of discount which would equate the present value of
investments to the present value of benefits over the life of the
project is known as :Correct Answer Internal rate of return
Your Answer
Internal rate of return
Select The Blank
Question
Cost of fencing comes under the ________ category of the
Project report.
Correct Answer Land and site development
Your Answer
Land and site development
Multiple Choice Single Answer
Question
The ratio that roughly measures the company's potential
reserve of cash is termed as :Correct Answer Net Working capital to total assets
Your Answer
Quick ratio
Multiple Choice Single Answer
Question
The sources of funding have expanded from banks, insurance
companies and multilateral agencies to include the :Correct Answer Capital market
Your Answer
Capital market
True/False
Question
Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
The permanent requirement of working capital should be
financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer
Cash Profits , Shares
Multiple Choice Single Answer
Question
Sources of funds include :Correct Answer Increase in secured borrowing
Your Answer
Increase in secured borrowing
True/False
Question
Nominal maximum capacity is the capacity that is technically
attainable and this corresponds to the supplier's guaranteed
capacity.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors
should be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
True/False
Question
Ratio should be computed on the basis of inter-related figures
which have a cause and effect relationship.
Correct Answer True
Your Answer
True
True/False
Question
In the BCG Matrix "DOGS" indicate products which are
generally during the stage of Decline of a Product Life Cycle.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer
Linear Relationship , Chain ratio Relationship , Exponential
Relationship
Multiple Choice Multiple Answer
Question
Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant
Your Answer
Technology , Layout of the plant , Design of the plant
Multiple Choice Single Answer
Question
Demographic market appraisal answers to
Correct Answer Who they are?
Your Answer
Where do the customers live?
Select The Blank
Question
A Project has a ________ represented by growth, maturity and
decay.
Correct Answer Life cycle
Your Answer
Life cycle
Multiple Choice Multiple Answer
Question
A project objective can be said to have the following dimensions
viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer
Strategic perspective , Time span , Social aspect
Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer
Trend Projection method , Consumption-level method , Moving
Averages method
Multiple Choice Single Answer
Question
The statement which shows the movement of cash into and out
of firm's kittie is known as :Correct Answer Cash flow statement
Your Answer
Cash flow statement
Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :Correct Answer To help to understand the changes in assets as well as asset
sources which are not revealed by the income statement , To
find out the uses of loans raised by the business , To indicate
the financial strength and weakness of the business
Your Answer
To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources
which are not revealed by the income statement , Helps to
prepare financial statements
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer
Inflow of cash
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to
as :Correct Answer Project finance
Your Answer
Project finance
True/False
Question
The Detailed Project report spells out the modus operandi for
the implementation of the Project and the realization of the
Project objectives.
Correct Answer True
Your Answer
True
Select The Blank
Question
As the plant capacity increase, the investment cost unit capacity
________.
Correct Answer Decreases
Your Answer
Decreases
Multiple Choice Multiple Answer
Question
Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill
written off
Your Answer
Funds from operation , Loss on sale of fixed assets
Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :Correct Answer A list of industries wherein the product is used is made and
quantity and volume is arrived at
Your Answer
A list of industries wherein the product is used is made and
quantity and volume is arrived at
Multiple Choice Multiple Answer
Question
The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer
True/False
Question
Purchase of fixed assets , Payment of long term loans
In small scale organisation, requirement of working capital is
quite high due to high amount of overheads, high buying costs
and high selling cost.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of
Project report
Location of factory
Location of factory
Cost aspect of the project Consultancy fees
report
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank
Question
Longer the duration of production cycle, higher the requirement
of ________.
Correct Answer Working capital
Your Answer
Working capital
Multiple Choice Single Answer
Question
Sanctioned bank limits is categorised under :Correct Answer Working capital
Your Answer
Production, Sales and Profitability
Select The Blank
Question
Cost of fencing comes under the ________ category of the
Project report.
Correct Answer Land and site development
Your Answer
Land and site development
True/False
Question
Trend projection method is the important technique for
forecasting demand.
Correct Answer True
Your Answer
True/False
True
Question
The emphasis of a finance manager should be on taking a
synergistic view of the project rather than looking at it only from
the financial aspects.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer
Increase
Select The Blank
Question
The basic difference between the feasibility study report and
________ is the level of accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer
Detailed Project report
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may
lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Location of the factory comes under the ________ category of
the Project report.
Correct Answer General
Your Answer
General
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False
Question
Market potential should be determined under the Marketing
aspect of the Project report.
Correct Answer True
Your Answer
True
Select The Blank
Question
________ tries to have what the customer will want- where,
when, in what form and at what price.
Correct Answer Marketing
Your Answer
Marketing
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost
is known as :Correct Answer Finance cost aspect
Your Answer
Strategic perspective
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is
termed as :Correct Answer Strategic perspective
Your Answer
Social aspect
True/False
Question
Nominal maximum capacity is the capacity that is technically
attainable and this corresponds to the supplier's guaranteed
capacity.
Correct Answer True
Your Answer
True
Select The Blank
Question
In order to meet the cost of large project, the technique of
________ has been developed so that the financial
commitment and risks associated with a project are shared
between the project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer
Long term financing
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer
That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Single Answer
Question
Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of
the society as a whole
Your Answer
Adopted as a guide depending on the consumption pattern of
the society as a whole
Multiple Choice Single Answer
Question
The norms for providing open areas have to be strictly followed
for safety of labour and allow sufficient space for outflow of
effluents safely in case of :Correct Answer Chemical unit
Your Answer
Chemical unit
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Investors who invest in the debentures of the company are the
________ of the company.
Correct Answer Creditors
Your Answer
Creditors
Match The Following
Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time
bound
Not necessarily time
bound
Foreign direct investment Machine tools
Machine tools
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify
substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question
The industrial concern earned profits by increasing the sales
volume under the :Correct Answer Sales concept
Your Answer
Sales concept
True/False
Question
The 'BCG Matrix 'analysis various products of the organisation
in the terms of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer
False
Select The Blank
Question
Detailed Project Report is generally prepared from a ________
report with additional information.
Correct Answer Feasibility
Your Answer
Feasibility
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians
may lead to :Correct Answer Cost and time overrun
Your Answer
True/False
Cost and time overrun
Question
Miscellaneous expenditure is written on the asset side of the
Balance sheet.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of
the factory
Your Answer
Name of the Industrial concern , Proposed product , Location of
the factory
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific
objectives within a :Correct Answer Predefined time
Your Answer
Predefined time
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors
should be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer
Equity shares , Public deposit
Multiple Choice Single Answer
Question
The cost which change in the same proportion in which the
level of production changes is known as :Correct Answer Variable cost
Your Answer
Variable cost
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses
upon appraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project
implementation
Your Answer
Problems faced during the Construction and Project
implementation
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in
operation
Your Answer
Problems pertaining to the period when the project is in
operation
Topic
industrial policy after independence
project
investment decisions and resource identification
foreign direct investment
location of project
environmental aspects - a matter of public interest
object of environmental clearance
project objective
project financing - a strategic prespective and models
BCG product portfolio matrix
seynive tiles
SPACE
relative market share
STARS
QUESTION MARKS
CASH COWS
DOGS
GE's stop light matrix
business strength
industry attractiveness
the SPACE model
dimesion and factor evaluated
company's competitive advantage
company's financial strength
industry strength
environmental stability
SPACE modus operandi
SPACE chart
THE OUTCOME strategic posture
postures
Pg
Number
1
2
2
2
3
3
4
4
7
7
7
7
8
8
8
8
8
9
10
10
10
11
11
11
11
11
11
13
13
13
aggressive posture
competetive posture
conservative posture
defensive posture
SPACE CHART
generic strategies and key options
project finance
what / why is the need for project financing
project
project cycle
types of project
new projects
expansion project
diversification project
backward integration projects
forward integration projects
modernisation projects
rehabiliation projects
short term finance
long term finance
bridge loan
seed money
seed capital
technical appraisal
phase I , II , III
process / production technology
project engineering
competitiveness indicators
manufacturing process / technology
technical arrangements
size of the plant
product mix
selection of the plant and machinery
procurement of plant and machinery
plant layout
appraisal - financial
capital cost of the project
sources of funds
financial projections
ratio analysis
break even point
cost of the project
land and site development
buildings and civil construction / works
plant and machinery
technical know-how and related feeds / charges
expenses on foregin technicians
misc fixed assets
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preliminary expenses
capital issue expenses
pre-operative expenses
provision of contingencies
margin money for working capital
initial cash loses
sources of funds
sales / production forecast
cost of production
discounted cash flow techniques
pay back method
average rate of return method
time value of money - discounting technique
net present value method
internal rate of return
information required for calculation of net present value and IRR
life of the project
cash outflow
cash inflow
residual or terminal value of the project
cost of the capital
cost of convertibe debentures
cost of working capital
break even point analysis
fixed costs
variable cost
BEP
significance / utility of BEP for financial appraisal
projected cash flow
sources of funds
deployment of funds
cash flows
cash inflow
projected balance sheets
liablities
assets
financial indicators
debt serice coverage ratio
interest cover ratio
appraisal - commercial
demand technique forecasting
past trend method
end use method
export market
supply depth of competition
marketing aspects
appraisal market
market appraisal
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demand analysis
qualitative methods
time series projection methods
casual methods
quantitative methods
jury or executive opninion method
delphi method
time series projection methods
trend projection method
exponential smoothing method
casual methods
chain ratio method
consumption level method
end use method
appraisal management
management perception
management qualities
organisational climate
organisational structure form
management problems
appraisal environmental
working capital requirement / fianancing
working capital
margin money for working capital
ratio analysis
net working capital to total assets
current ratio
quick (acid test) ratio
internal measure
projected working results
profitablity projections or estimates of working results
project implementation
financing plan
comments
project organization
project scheduling
additional comments
capital expenditure and financing
production sales and profitability
current assets and liabilities
material inputs and utilities
working capital commercial bank borrowing
organization and management
visit report
production and sales
financial and economic
financial projections
key steps in market and demand analysis and their relationships
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project report
norms of regulatory authority and Fis
key business considerations
detailed project report
financial aspects
marketing aspects
management aspects
technical aspects
government policies
infrastructure
social cost benefit
sensitivity analysis
vegprotein LTS
basic assumptions underlying financial projections
depreciation schedule
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LIST OF ATTEMPTED QUESTIONS AND
ANSWERS
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question 1 The advantage of secondary sources of data is that it is readily and
economically available.
Correct Answer True
Your Answer True
True/False
Question2 In small scale organisation, requirement of working capital is quite
high due to high amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
True/False
Question3 Banks and Financial Institutions, world-wide, are now financing
projects with strategies and terms that would have been hard to believe/imagine just
a few years back.
Correct Answer True
Your Answer True
Select The Blank
Question 4 ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Multiple Answer
Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Multiple Choice Single Answer
Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering
Your Answer Detailed Project Engineering
Multiple Choice Multiple Answer
Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in
secured borrowing
Your Answer Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Single Answer
Question 9 Delay in arrival of domestic/foreign machinery and technicians may
lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question 10 A smaller unit into which the overall requirement of capital of a
company is sub-divided is termed as ________.
Correct Answer Share
Your Answer Share
Multiple Choice Single Answer
Question11 A project objective which states "What' is to be viewed" is termed as
:Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Single Answer
Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Multiple Answer
Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill
written off
Your Answer Funds from operation , Goodwill written off
Multiple Choice Multiple Answer
Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Determination , Organisation Building , Person / system oriented
Select The Blank
Question15 Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer One
True/False
Question16 Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question17 The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Multiple Answer
Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question 19 ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
True/False
Question20 Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
Select The Blank
Question21 Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question22 Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Short term
Select The Blank
Question23 ________ is the summary of cash book or Receipts and Payments
statement.
Correct Answer Cash flow statement
Your Answer Trial balance
True/False
Question24 In the BCG Matrix, the key term of Cash Cows require further
commitment of funds.
Correct Answer False
Your Answer True
True/False
Question25 Cost and time overrun of the project may lead to loss on account of
lost market opportunities.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question26 A project objective which states What "achieving it " would cost is
known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Multiple Choice Multiple Answer
Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Multiple Choice Single Answer
Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high
growth rate
Your Answer Products which enjoy a high market share as well as a high growth
rate
Multiple Choice Single Answer
Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy?
Your Answer Why they buy?
True/False
Question30 Production line diagrams show the organisation structure of the
project along with information on location, personnel required for various
departments, and their inter-relationship.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question31 While choosing the location for a project, the following factors should
be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Single Answer
Question32 The cost which change in the same proportion in which the level of
production changes is known as :Correct Answer Variable cost
Your Answer Variable cost
Select The Blank
Question33 Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Decreases
Multiple Choice Multiple Answer
Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
Multiple Choice Single Answer
Question35 Appointments made at senior level during the half-year is categorised
under :Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question36 Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
Multiple Choice Multiple Answer
Question37 Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Match The Following
Question38 Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question 40 General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of
the factory
Your Answer Name of the Industrial concern , Proposed product , Location of the
factory
Multiple Choice Multiple Answer
Question 41 The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question43 After the SPACE chart is constructed, we would normally get any one
of the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question 44 ________ occupies a unique position in the macro economic
development which helps in induction of new technology and facilitates, greater
efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Marketing
Multiple Choice Single Answer
Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question46 Name and designation of the chief executive comes under the
________ category.
Correct Answer General
Your Answer General
Match The Following
Question47 Correct Answer Your Answer
Private investment Power generation Machine tools
Project Time -bound Time -bound
Programme Not necessarily time bound Not necessarily time bound
Foreign direct investment Machine tools Power generation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question In the BCG Matrix, the key term of Cash Cows require further
commitment of funds.
Correct Answer False
Your Answer False
Select The Blank
Question In the GE's Stop Light Matrix, when ________ situation prevails ,
Products call for divestment.
Correct Answer Average Business Strength and Low Industry attractiveness
Your Answer Average Business Strength and Low Industry attractiveness
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future
benefits
Select The Blank
Question ________ tries to have what the customer will want- where, when, in
what form and at what price.
Correct Answer Marketing
Your Answer Finance
Multiple Choice Single Answer
Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure
Your Answer Fixation of means of financial structure
Multiple Choice Single Answer
Question A project can be regarded as the sum of the activities directed towards a
:Correct Answer Specific result
Your Answer Specific result
Multiple Choice Single Answer
Question Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Single Answer
Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation
Your Answer Is a tool for strategic ( product ) planning and resource allocation
Multiple Choice Single Answer
Question End use method of Commercial appraisal technique is :Correct Answer A list of industries wherein the product is used is made and
quantity and volume is arrived at
Your Answer A list of industries wherein the product is used is made and
quantity and volume is arrived at
Select The Blank
Question ________ capital represents permanent capital.
Correct Answer Equity
Your Answer Debentures
Match The Following
Question Correct Answer Your Answer
Export market technique of Commercial appraisal Government provides ample
encouragement Government provides ample encouragement
Demand Technique forecasting of Commercial appraisal Future demand of the
product Future demand of the product
Past trend method of Commercial appraisal Adopted as a guide depending on the
consumption pattern of the society as a whole Adopted as a guide depending on the
consumption pattern of the society as a whole
End use method of Commercial appraisal A list of industries wherein the product is
used is made and quantity and volume is arrived at A list of industries wherein the
product is used is made and quantity and volume is arrived at
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any one of
the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question ________ in liabilities involves inflow of funds.
Correct Answer Increase
Your Answer Cash
Select The Blank
Question ________ occupies a unique position in the macro economic
development which helps in induction of new technology and facilitates, greater
efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Investment
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
True/False
Question Financial analysis based on accounting ratios will give mis-leading
results if the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question Appointments made at senior level during the half-year is categorised
under :Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question As per the GE's Stop Light Matrix, Products may justify substantial
commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Your Answer Strong Business Strength and high Industry attractiveness ,
Average Business strength and high Industry attractiveness
Match The Following
Question Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Investment
Current liability Trade credit Debtors
Multiple Choice Single Answer
Question The cost of Plant and Machinery may be adjusted for a possible increase
known as :Correct Answer Escalation
Your Answer Inflation
Multiple Choice Multiple Answer
Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product ,
Future availability and supply of the product
Your Answer Future demand of the product , Proper survey of the product ,
Future availability and supply of the product
Multiple Choice Single Answer
Question The BCG product Portfolio Matrix, General Electric Stop Light Matrix
and Strategic Position and Action Evaluation Model are considered to be highly
relevant as :Correct Answer Portfolio Planning Tools
Your Answer Portfolio Planning Tools
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity
________.
Correct Answer Decreases
Your Answer Decreases
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Issue of new machinery
True/False
Question A high debt equity ratio may indicate that the financial stake of the
creditors is more than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out
of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question Ratio analysis is a technique of planning and control.
Correct Answer False
Your Answer False
True/False
Question Miscellaneous expenditure is written on the asset side of the Balance
sheet.
Correct Answer True
Your Answer False
Select The Blank
Question Cost of fencing comes under the ________ category of the Project
report.
Correct Answer Land and site development
Your Answer Land and site development
Multiple Choice Single Answer
Question The ratio which covers those assets which can be converted into cash
immediately is known as :Correct Answer Quick ratio
Your Answer Quick ratio
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products
which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the
company are not distributed by it by way of ________ but are kept aside for use in
future for expansion or other purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Multiple Answer
Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
True/False
Question Unlike financial projections, there cannot be any fixed, well-recognised
or structure formula/steps for management evaluation/appraisal.
Correct Answer True
Your Answer True
True/False
Question Production line diagrams show the organisation structure of the project
along with information on location, personnel required for various departments,
and their inter-relationship.
Correct Answer False
Your Answer False
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Trade credit
True/False
Question For computing Interest coverage ratio, Profit after Interest and taxes
are taken into account.
Correct Answer False
Your Answer True
Select The Blank
Question Details regarding Internal accruals comes under the ________ category
of Project report.
Correct Answer Financing plan
Your Answer Cost aspect
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the
board
Your Answer Managing Director , Institutional nominees , Committees of the
board
True/False
Question Nominal maximum capacity is the capacity that is technically attainable
and this corresponds to the supplier's guaranteed capacity.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of cash
is termed as :Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Multiple Choice Multiple Answer
Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Dividends
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question 1 The advantage of secondary sources of data is that it is readily and
economically available.
Correct Answer True
Your Answer True
True/False
Question2 In small scale organisation, requirement of working capital is quite
high due to high amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
True/False
Question3 Banks and Financial Institutions, world-wide, are now financing
projects with strategies and terms that would have been hard to believe/imagine just
a few years back.
Correct Answer True
Your Answer True
Select The Blank
Question 4 ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Multiple Answer
Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Multiple Choice Single Answer
Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering
Your Answer Detailed Project Engineering
Multiple Choice Multiple Answer
Question 8 Sources of funds includes :-
Correct Answer Depreciation , Preliminary expenses written off , Increase in
secured borrowing
Your Answer Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Single Answer
Question 9 Delay in arrival of domestic/foreign machinery and technicians may
lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question 10 A smaller unit into which the overall requirement of capital of a
company is sub-divided is termed as ________.
Correct Answer Share
Your Answer Share
Multiple Choice Single Answer
Question11 A project objective which states "What' is to be viewed" is termed as
:Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Single Answer
Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Multiple Answer
Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill
written off
Your Answer Funds from operation , Goodwill written off
Multiple Choice Multiple Answer
Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Determination , Organisation Building , Person / system oriented
Select The Blank
Question15 Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer One
True/False
Question16 Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question17 The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Multiple Answer
Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question 19 ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
True/False
Question20 Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
Select The Blank
Question21 Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question22 Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Short term
Select The Blank
Question23 ________ is the summary of cash book or Receipts and Payments
statement.
Correct Answer Cash flow statement
Your Answer Trial balance
True/False
Question24 In the BCG Matrix, the key term of Cash Cows require further
commitment of funds.
Correct Answer False
Your Answer True
True/False
Question25 Cost and time overrun of the project may lead to loss on account of
lost market opportunities.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question26 A project objective which states What "achieving it " would cost is
known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Multiple Choice Multiple Answer
Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Multiple Choice Single Answer
Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high
growth rate
Your Answer Products which enjoy a high market share as well as a high growth
rate
Multiple Choice Single Answer
Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy?
Your Answer Why they buy?
True/False
Question30 Production line diagrams show the organisation structure of the
project along with information on location, personnel required for various
departments, and their inter-relationship.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question31 While choosing the location for a project, the following factors should
be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Single Answer
Question32 The cost which change in the same proportion in which the level of
production changes is known as :Correct Answer Variable cost
Your Answer Variable cost
Select The Blank
Question33 Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Decreases
Multiple Choice Multiple Answer
Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
Multiple Choice Single Answer
Question35 Appointments made at senior level during the half-year is categorised
under :Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question36 Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
Multiple Choice Multiple Answer
Question37 Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Match The Following
Question38 Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question 40 General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of
the factory
Your Answer Name of the Industrial concern , Proposed product , Location of the
factory
Multiple Choice Multiple Answer
Question 41 The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question43 After the SPACE chart is constructed, we would normally get any one
of the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question 44 ________ occupies a unique position in the macro economic
development which helps in induction of new technology and facilitates, greater
efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Marketing
Multiple Choice Single Answer
Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question46 Name and designation of the chief executive comes under the
________ category.
Correct Answer General
Your Answer General
Match The Following
Question47 Correct Answer Your Answer
Private investment Power generation Machine tools
Project Time -bound Time -bound
Programme Not necessarily time bound Not necessarily time bound
Foreign direct investment Machine tools Power generation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money
Your Answer Margin money
Multiple Choice Multiple Answer
Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer Factory building , Auxiliary buildings , Administrative block
Multiple Choice Single Answer
Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential
Your Answer Products which have high market share but low growth potential
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Single Answer
Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
True/False
Question In both the extreme situations of trade cycles i.e. Inflation and depression,
requirement of working capital may be high.
Correct Answer True
Your Answer True
True/False
Question Name of the finance manager comes under the Project organisation category
of the Project report.
Correct Answer True
Your Answer True
True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution
Control Authorities before setting up any project.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration level/ conservative
Organisational Climate Person oriented Person oriented
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate
Your Answer Relative Market share and Industry Growth rate
Select The Blank
Question ________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer Stable
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing Project
finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Single Answer
Question "Fly by night" operator mentality is a :Correct Answer Management quality
Your Answer Management quality
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer Decreases
Your Answer Increases
Multiple Choice Multiple Answer
Question Debt Service coverage ratio may be considered to be one of the most
important ratios calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer Shareholders , Bankers , Financial Institutions
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is known as
:Correct Answer Finance cost aspect
Your Answer Finance cost aspect
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges the
various facts , It does not consider non-fund transactions
Your Answer It does not provide any new information but only rearranges the various
facts , It does not consider non-fund transactions , It does not help in determining future
requirement of funds
Multiple Choice Single Answer
Question The third phase of the technical appraisal which focuses upon appraising the
likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation
Your Answer Problems pertaining to the period when the project is in operation
Multiple Choice Single Answer
Question Receivables is categorised under :Correct Answer Current assets and liabilities
Your Answer Current assets and liabilities
Multiple Choice Single Answer
Question It is said that a second rate project in the hands of first rate management is
better than a first rate project in the hands of :Correct Answer Second rate management
Your Answer Second rate management
Select The Blank
Question The company having ________, is appropriate for the strategic posture of
Defensive under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and
belongs to a not so attractive industry, operating in an unstable environment
Your Answer Lacks both competitive advantage as well as financial strength and
belongs to a not so attractive industry, operating in an unstable environment
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Profit maximisation
True/False
Question The 'BCG Matrix 'analysis various products of the organisation in the terms
of Business strength and Industry Attractiveness.
Correct Answer False
Your Answer False
Select The Blank
Question Having decided on the location and product, the promoter takes into account
the ________ that is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Multiple Answer
Question Financial and economic aspect of the Visit report consists of :Correct Answer Company's financial year , Impact of Government policies on
company operations , Comments on the last published accounts
Your Answer Company's financial year , Impact of Government policies on company
operations , Comments on the last published accounts
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question In the BCG Matrix "DOGS" indicate products which are generally during the
stage of Decline of a Product Life Cycle.
Correct Answer True
Your Answer True
True/False
Question The construction of National Golden Quadrilateral can be recognised as
Project.
Correct Answer True
Your Answer True
Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the
________ dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
True/False
Question The cost factors of the product mixed is also taken into account to arrive at
cost at various levels of production and its cost impact of the manufacturing.
Correct Answer True
Your Answer True
True/False
Question The emphasis of a finance manager should be on taking a synergistic view of
the project rather than looking at it only from the financial aspects.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer Quality standards , Raw material requirement , Power / telecom facilities
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
True/False
Question Market potential should be determined under the Marketing aspect of the
Project report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis
Your Answer Financial analysis
Multiple Choice Single Answer
Question Preoperative expenses includes :Correct Answer Bank guarantees
Your Answer Bank guarantees
Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
True/False
Question If the organisation is a trading organisation, the requirement of working
capital will be on the lower side.
Correct Answer False
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
Multiple Choice Multiple Answer
Question Marketing category of the Project report consists of :Correct Answer Target market , Market potential , Pricing policy
Your Answer Target market , Market potential , Pricing policy
Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the
________ dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
Multiple Choice Single Answer
Question Sources of funds include :Correct Answer Increase in secured borrowing
Your Answer Increase in secured borrowing
True/False
Question It is mandatory for each unit to obtain necessary clearance from
Pollution Control Authorities before setting up any project.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as
:Correct Answer Strategic perspective
Your Answer Strategic perspective
Select The Blank
Question ________ tries to have what the customer will want- where, when, in
what form and at what price.
Correct Answer Marketing
Your Answer Marketing
True/False
Question Debt Service Coverage Ratio is one of the most important ratios
calculated by the bankers or financial institutions giving long term finance to the
organisation.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project
implementation
Your Answer Problems faced during the Construction and Project
implementation
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Land and site development cost includes cost of :Correct Answer Gates
Your Answer Gates
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is
known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration level/
conservative
Organisational Climate Person oriented Person oriented
Match The Following
Question Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question Disposal of fixed assets is categorised under :Correct Answer Miscellaneous
Your Answer Miscellaneous
True/False
Question The emphasis of a finance manager should be on taking a
synergistic view of the project rather than looking at it only from the financial
aspects.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Geographic market appraisal answers to :Correct Answer Where do the customers live?
Your Answer Where do the customers live?
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question ________ occupies a unique position in the macro economic
development which helps in induction of new technology and facilitates, greater
efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Production
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Single Answer
Question Pre-operative expenses include :Correct Answer Interest on deferred payments
Your Answer Interest on deferred payments
Multiple Choice Multiple Answer
Question Advantages of fund flow statement are :Correct Answer It determines financial consequences of the business
operations , It enables the firm to plan its financial resources properly , It helps as
a reliable guide for the future requirement of funds
Your Answer It determines financial consequences of the business operations
, It considers non-fund transactions , It enables the firm to plan its financial
resources properly
True/False
Question Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
True/False
Question In the BCG Matrix "DOGS" indicate products which are generally
during the stage of Decline of a Product Life Cycle.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Payment of long term loans , Issue of
new machinery
True/False
Question Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True
Your Answer True
True/False
Question Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Multiple Choice Single Answer
Question Liabilities side of Balance sheet includes :Correct Answer Unsecured loans
Your Answer Unsecured loans
Multiple Choice Single Answer
Question The rate of discount which would equate the present value of
investments to the present value of benefits over the life of the project is known
as :Correct Answer Internal rate of return
Your Answer Internal rate of return
Select The Blank
Question A Project has a ________ represented by growth, maturity and
decay.
Correct Answer Life cycle
Your Answer Life cycle
Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any
one of the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question ________ is the summary of cash book or Receipts and Payments
statement.
Correct Answer Cash flow statement
Your Answer Cash flow statement
Multiple Choice Single Answer
Question The point at which the unit neither earns profit nor incurs loss is
known as :Correct Answer Break Even Point
Your Answer Break Even Point
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing
Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial
compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Multiple Answer
Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Select The Blank
Question Under ________ method, the forecasts are modified in the light of
observed errors.
Correct Answer Exponential smoothing
Your Answer Exponential smoothing
Multiple Choice Multiple Answer
Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit
and loss account to arrive at operating profits
Your Answer Added back to the profit as per profit and loss account to arrive
at operating profits , Item of current assets , Item of working capital
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the
company are not distributed by it by way of ________ but are kept aside for use
in future for expansion or other purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of
cash is termed as :Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Select The Blank
Question Name and designation of the chief executive comes under the
________ category.
Correct Answer General
Your Answer General
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Single Answer
Question In the Cash flow statement, the sources of funds include
Correct Answer Share Issue
Your Answer Share Issue
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
Multiple Choice Multiple Answer
Question Marketing category of the Project report consists of :Correct Answer Target market , Market potential , Pricing policy
Your Answer Target market , Market potential , Pricing policy
Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the
________ dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
Multiple Choice Single Answer
Question Sources of funds include :Correct Answer Increase in secured borrowing
Your Answer Increase in secured borrowing
True/False
Question It is mandatory for each unit to obtain necessary clearance from
Pollution Control Authorities before setting up any project.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as
:-
Correct Answer Strategic perspective
Your Answer Strategic perspective
Select The Blank
Question ________ tries to have what the customer will want- where, when, in
what form and at what price.
Correct Answer Marketing
Your Answer Marketing
True/False
Question Debt Service Coverage Ratio is one of the most important ratios
calculated by the bankers or financial institutions giving long term finance to the
organisation.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon
appraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project
implementation
Your Answer Problems faced during the Construction and Project
implementation
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Land and site development cost includes cost of :Correct Answer Gates
Your Answer Gates
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is
known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration level/
conservative
Organisational Climate Person oriented Person oriented
Match The Following
Question Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question Disposal of fixed assets is categorised under :Correct Answer Miscellaneous
Your Answer Miscellaneous
True/False
Question The emphasis of a finance manager should be on taking a
synergistic view of the project rather than looking at it only from the financial
aspects.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Geographic market appraisal answers to :Correct Answer Where do the customers live?
Your Answer Where do the customers live?
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question ________ occupies a unique position in the macro economic
development which helps in induction of new technology and facilitates, greater
efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Production
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future
benefits
Multiple Choice Single Answer
Question Pre-operative expenses include :Correct Answer Interest on deferred payments
Your Answer Interest on deferred payments
Multiple Choice Multiple Answer
Question Advantages of fund flow statement are :Correct Answer It determines financial consequences of the business
operations , It enables the firm to plan its financial resources properly , It helps as
a reliable guide for the future requirement of funds
Your Answer It determines financial consequences of the business operations
, It considers non-fund transactions , It enables the firm to plan its financial
resources properly
True/False
Question Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
True/False
Question In the BCG Matrix "DOGS" indicate products which are generally
during the stage of Decline of a Product Life Cycle.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans
Your Answer Purchase of fixed assets , Payment of long term loans , Issue of
new machinery
True/False
Question Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True
Your Answer True
True/False
Question Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Multiple Choice Single Answer
Question Liabilities side of Balance sheet includes :Correct Answer Unsecured loans
Your Answer Unsecured loans
Multiple Choice Single Answer
Question The rate of discount which would equate the present value of
investments to the present value of benefits over the life of the project is known
as :Correct Answer Internal rate of return
Your Answer Internal rate of return
Select The Blank
Question A Project has a ________ represented by growth, maturity and
decay.
Correct Answer Life cycle
Your Answer Life cycle
Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any
one of the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question ________ is the summary of cash book or Receipts and Payments
statement.
Correct Answer Cash flow statement
Your Answer Cash flow statement
Multiple Choice Single Answer
Question The point at which the unit neither earns profit nor incurs loss is
known as :Correct Answer Break Even Point
Your Answer Break Even Point
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing
Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial
compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Multiple Answer
Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Select The Blank
Question Under ________ method, the forecasts are modified in the light of
observed errors.
Correct Answer Exponential smoothing
Your Answer Exponential smoothing
Multiple Choice Multiple Answer
Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit
and loss account to arrive at operating profits
Your Answer Added back to the profit as per profit and loss account to arrive
at operating profits , Item of current assets , Item of working capital
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the
company are not distributed by it by way of ________ but are kept aside for use
in future for expansion or other purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of
cash is termed as :Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Select The Blank
Question Name and designation of the chief executive comes under the
________ category.
Correct Answer General
Your Answer General
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Single Answer
Question In the Cash flow statement, the sources of funds include
Correct Answer Share Issue
Your Answer Share Issue
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Land and site development comes under the cost aspect of the
Project report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Location of the factory comes under the :Correct Answer General category
Your Answer General category
Match The Following
Question Correct Answer Your Answer
Project appraisal It is the evaluation of project from technical, market, financial,
economic and social perspective before committing funds for investment It is a
preliminary assessment of the project idea to determine whether or not the
investment opportunity is promising
Program It is large in scope, is activity oriented and is not necessarily time bound
It is large in scope, is activity oriented and is not necessarily time bound
Project It is one-shot, time-limited, goal oriented, major undertaking requiring the
commitment of varied skills and resources It deals with the impact of the
investment project on people and their lives
Pre-feasibility study It is a preliminary assessment of the project idea to
determine whether or not the investment opportunity is promising It is one-shot,
time-limited, goal oriented, major undertaking requiring the commitment of varied
skills and resources
Multiple Choice Single Answer
Question The sources of funding have expanded from banks, insurance
companies and multilateral agencies to include the :Correct Answer Capital market
Your Answer Debt market
Multiple Choice Single Answer
Question Cost of overheads include :Correct Answer Cost of repairs and maintenance
Your Answer Cost of electricity
True/False
Question The Detailed Project report spells out the modus operandi for the
implementation of the Project and the realization of the Project objectives.
Correct Answer True
Your Answer True
True/False
Question Debt Service means payment of installments and interest against an
amount borrowed as per terms of loan.
Correct Answer True
Your Answer True
True/False
Question The ratios of one organisation compared with the ratios of the same
organisation is termed as inter-firm comparison.
Correct Answer False
Your Answer False
Select The Blank
Question Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer Application
Select The Blank
Question Excessive expenditures on foreign technicians leads to ________.
Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Multiple Answer
Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks
Your Answer Stars , Question marks , Invest
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Auditors report , Balance Sheet
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Chain ratio Relationship , Exponential
Relationship
Multiple Choice Single Answer
Question Delay in arrival of domestic/foreign machinery and technicians may
lead to :Correct Answer Cost and time overrun
Your Answer Profit maximisation
Multiple Choice Single Answer
Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of
the society as a whole
Your Answer Adopted as a guide depending on the consumption pattern of the
society as a whole
Multiple Choice Multiple Answer
Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges
the various facts , It does not consider non-fund transactions
Your Answer It does not consider non-fund transactions , It does not help in
determining future requirement of funds , It does not provide any new information
but only rearranges the various facts
Select The Blank
Question As the plant capacity increase, the investment cost unit capacity
________.
Correct Answer Decreases
Your Answer Increases
Multiple Choice Single Answer
Question Preoperative expenses includes :Correct Answer Bank guarantees
Your Answer Brokerage on capital issue
Multiple Choice Single Answer
Question Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question In order to meet the cost of large project, the technique of ________
has been developed so that the financial commitment and risks associated with a
project are shared between the project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer Limited recourse financing
True/False
Question For computing Interest coverage ratio, Profit after Interest and taxes
are taken into account.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question The ratio which covers those assets which can be converted into
cash immediately is known as :Correct Answer Quick ratio
Your Answer Current ratio
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :-
Correct Answer Managing Director , Institutional nominees , Committees of the
board
Your Answer Managing Director , Electrical engineers , Institutional nominees
Multiple Choice Single Answer
Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness
Your Answer Relative Market share and Industry Growth rate
Multiple Choice Single Answer
Question The basic document for facilitating Project financing is the :Correct Answer Detailed Project report
Your Answer Detailed Project report
Select The Blank
Question The ________ market is longer the order of the day since this is an
era of professionalization and specialised services are available at cost.
Correct Answer Monopolistic
Your Answer Monopolistic
True/False
Question Ratio should be computed on the basis of inter-related figures which
have a cause and effect relationship.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product ,
Future availability and supply of the product
Your Answer Future demand of the product , Export market , Future availability
and supply of the product
Select The Blank
Question Having decided on the location and product, the promoter takes into
account the ________ that is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Multiple Answer
Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question More accurate the estimation of the level of current assets and
current liabilities, more accurate will be estimation of the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Multiple Choice Multiple Answer
Question Defaults category of the Project report may be in respect of :Correct Answer Term loans , Principal , Interest
Your Answer Term loans , Principal , Interest
Match The Following
Question Correct Answer Your Answer
General functional layout Present the general relationship between equipment
buildings and civil works The plan of work concerning installation as well as initial
operation
Location Broad area such as city, industrial belt etc. The diagrams indicating the
flow of materials, utilities, final product, by-products and emission
Site Specific piece of land where the project would be set up Broad area such as
city, industrial belt etc.
Plant layout Physical layout of the factory Specific piece of land where the project
would be set up
True/False
Question If the organisation is a trading organisation, the requirement of
working capital will be on the lower side.
Correct Answer False
Your Answer True
Select The Blank
Question Cost of fencing comes under the ________ category of the Project
report.
Correct Answer Land and site development
Your Answer Building cost
Multiple Choice Multiple Answer
Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend
Your Answer Increase in working capital , Preliminary expenses , Preliminary
expenses written off
Multiple Choice Multiple Answer
Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in
secured borrowing
Your Answer Depreciation , Preliminary expenses written off , Increase in
secured borrowing , Preliminary expenses
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products
which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Select The Blank
Question In the GE's Stop Light Matrix, when ________ situation prevails ,
Products call for divestment.
Correct Answer Average Business Strength and Low Industry attractiveness
Your Answer Weak Business strength and high Industry attractiveness
Select The Blank
Question Investors who invest in the debentures of the company are the
________ of the company.
Correct Answer Creditors
Your Answer Creditors
Multiple Choice Multiple Answer
Question Debt Service coverage ratio may be considered to be one of the
most important ratios calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer Shareholders , Bankers , Creditors
Multiple Choice Single Answer
Question Dissentions among the promoters is a :Correct Answer Management problem
Your Answer Management perception
Select The Blank
Question Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Does not result
True/False
Question The secondary data is collected through market survey, specific for
the project being appraised.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Profit is the result of customer satisfaction, indeed customer delight
under the :Correct Answer Marketing concept
Your Answer Marketing concept
Multiple Choice Multiple Answer
Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill
written off
Your Answer Funds from operation , Goodwill written off , Funds from long
term loans
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed
out of :Correct Answer Debentures , Cash Profits , Shares
Your Answer Debentures , Cash Profits , Shares
Multiple Choice Multiple Answer
Question The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit
Your Answer Equity shares , Bridge loan , Public deposit
Multiple Choice Single Answer
Question The emphasis of the Banks and Financial institutions particularly in
India has shifted from 'Sanctions', 'Disbursements' and 'Security-orientation' to
'Recovery/Recycling' and :Correct Answer Activity orientation
Your Answer Activity orientation
Multiple Choice Single Answer
Question Technology, design, layout of the plant as well as inputs and
infrastructural facilities are to be considered under :Correct Answer Technical appraisal
Your Answer Financial appraisal
Select The Blank
Question Detailed Project Report is generally prepared from a ________
report with additional information.
Correct Answer Feasibility
Your Answer Feasibility
True/False
Question A high debt equity ratio may indicate that the financial stake of the
creditors is more than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price - Variables)
Your Answer (Profit after tax +Depreciation + Interest)/ Interest
Multiple Choice Single Answer
Question Receivables is categorised under :Correct Answer Current assets and liabilities
Your Answer Material inputs and utilities
Multiple Choice Multiple Answer
Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Internal measure
Select The Blank
Question Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Fixed assets
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system
oriented
Your Answer Organisation Building , Person / system oriented , Promoter's
equity / stake
True/False
Question Financial analysis based on accounting ratios will give mis-leading
results if the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer Plant capacity , Quality standards , Raw material requirement
Select The Blank
Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Decrease in funds
Multiple Choice Multiple Answer
Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer cost of development , Factory building , Auxiliary buildings
Match The Following
Question Correct Answer Your Answer
Increase in current liabilities Decreases working capital Stability of funds
Increase in liabilities Inflow of funds Inflow of funds
Decrease in liabilities Outflow of funds Increases working capital
Increase in current assets Increases working capital Outflow of funds
Select The Blank
Question Sometimes the term ________ is interpreted as cash equivalent i.e.
cash and marketable securities.
Correct Answer Fund
Your Answer Fund
True/False
Question Name of the finance manager comes under the Project organisation
category of the Project report.
Correct Answer True
Your Answer False
True/False
Question Change in the project concept itself may lead to cost and time
overrun.
Correct Answer True
Your Answer True
True/False
Question The maximum Seed Capital assistance provided by IDBI under the
project will be restricted to 50% of the required promoter's contribution or Rs. 50
lakhs whichever is lower.
Correct Answer False
Your Answer True
Match The Following
Question Correct Answer Your Answer
Project organisation Finance manager Completion date of the project
General category of Project report Location of factory Reasons for cost
escalations
Cost aspect of the project report Consultancy fees Finance manager
Financing plan Unsecured loans Location of factory
True/False
Question Trend projection method is the important technique for forecasting
demand.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability
Multiple Choice Multiple Answer
Question The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new
shares
Your Answer Purchase of fixed assets , Cash from operations , Sale of
machinery
Multiple Choice Multiple Answer
Question External sources of cash are as follows :Correct Answer Issue of new shares , Long term loans , Short term borrowings
Your Answer Issue of new shares , Long term loans , Short term borrowings
True/False
Question Production line diagrams show the organisation structure of the
project along with information on location, personnel required for various
departments, and their inter-relationship.
Correct Answer False
Your Answer True
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Book debts
Select The Blank
Question The company having ________, is appropriate for the strategic
posture of Defensive under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength
and belongs to a not so attractive industry, operating in an unstable environment
Your Answer High financial strength, high industrial strength, enjoying a
competitive advantage and belonging to an attractive industry, operating in a
relatively stable environmental conditions
Multiple Choice Single Answer
Question Management aspect of detailed project report includes
Correct Answer Organisation structure
Your Answer Demand forecasting
Select The Blank
Question ________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer High
Multiple Choice Multiple Answer
Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Operating Loss , Non operating Income
Multiple Choice Single Answer
Question The cash flow of all the years during the expected life of the project
are discounted at a pre-determined cut off rate and :Correct Answer Net Present value is obtained
Your Answer Internal rate of return is obtained
Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To
indicate the financial strength and weakness of the business , To help to
understand the changes in assets as well as asset sources which are not
revealed by the income statement
Your Answer To find out the uses of loans raised by the business , To indicate
the financial strength and weakness of the business , To help to understand the
changes in assets as well as asset sources which are not revealed by the income
statement
Multiple Choice Single Answer
Question Cost of materials include :Correct Answer Cost of components and consumable stores
Your Answer Cost of electricity
True/False
Question The Detailed Project report must indicate the gestation period of the
project.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Strategic Position and Action Evaluation Model :Correct Answer Is an approach to hammer out an appropriate strategic
posture for a firm and its individual business
Your Answer Which is highly respected for the sophistication, maturity and
quality in its planning systems
Select The Blank
Question Location of the factory comes under the ________ category of the
Project report.
Correct Answer General
Your Answer General
Select The Blank
Question Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Internal
Multiple Choice Multiple Answer
Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location
of the factory
Your Answer Name of the Industrial concern , Proposed product , Location of
the factory
Select The Blank
Question Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer Two
Multiple Choice Single Answer
Question Appointments made at senior level during the half-year is
categorised under :Correct Answer Organisation and management
Your Answer Current assets and liabilities
Select The Blank
Question Commission outstanding is ________ of funds.
Correct Answer Application
Your Answer Application
Multiple Choice Single Answer
Question The statement which shows the movement of cash into and out of
firm's kittie is known as :Correct Answer Cash flow statement
Your Answer Profit and Loss statement
Multiple Choice Single Answer
Question Cost of utilities include :Correct Answer Cost of electricity
Your Answer Cost of components and consumable stores
Multiple Choice Single Answer
Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting
Your Answer Detailed Project Engineering
True/False
Question In both the extreme situations of trade cycles i.e. Inflation and
depression, requirement of working capital may be high.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should
be considered :Correct Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Your Answer Proximity to raw materials and markets , Plant capacity ,
Availability of infrastructure
Project Finance assgn :01: Sushant
True/False
Question Trend projection method is the important technique for
forecasting demand.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and
resource allocation
Your Answer
allocation
Is a tool for strategic ( product ) planning and resource
Select The Blank
Question A market survey generally is a ________ survey.
Correct Answer Sample
Your Answer Primary
Select The Blank
Question ________ capital represents permanent capital.
Correct Answer Equity
Your Answer Equity
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in
expectation of future benefits
Your Answer That it involves current outlay of funds in expectation
of future benefits
True/False
Question Nominal maximum capacity is the capacity that is
technically attainable and this corresponds to the supplier's
guaranteed capacity.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a
project
Your Answer The total of all items of outlay associated with a
project
True/False
Question There is a need for studying Project finance both for the
lenders as well as the borrowers as both of them have equal stake in
making the Project a success.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :-
Correct Answer Managing Director , Institutional nominees ,
Committees of the board
Your Answer Managing Director , Institutional nominees ,
Committees of the board
Multiple Choice Single Answer
Question Every project involves financial outlay which can be
referred to as :Correct Answer Project finance
Your Answer Financial arrangement
True/False
Question Debt service coverage ratio indicates whether cash earned
is sufficient for debt service.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while
assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial
compensation
Your Answer Environmental factors , Risk involved , Political issues
Multiple Choice Multiple Answer
Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Non operating Income
Select The Blank
Question ________ occupies a unique position in the macro
economic development which helps in induction of new technology and
facilitates, greater efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Production
True/False
Question In both the extreme situations of trade cycles i.e. Inflation
and depression, requirement of working capital may be high.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes
:Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain
products which require the products of existing units as raw material is
known as :Correct Answer Forward Integration Projects
Your Answer Backward Integration Projects
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Person oriented
Management Perception Aspiration level/ conservative Corporate
Organisational Climate Person oriented Aspiration level/ conservative
Multiple Choice Multiple Answer
Question Demand technique forecasting of Commercial appraisal
includes :Correct Answer Future demand of the product , Proper survey of the
product , Future availability and supply of the product
Your Answer Future demand of the product , Proper survey of the
product , Export market , Future availability and supply of the product
Select The Blank
Question Details regarding Administrative / controlling office comes
under the ________ category.
Correct Answer General
Your Answer Cost aspect
Multiple Choice Multiple Answer
Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off ,
Increase in secured borrowing
Your Answer Preliminary expenses written off , Increase in secured
borrowing
Multiple Choice Single Answer
Question A project objective which states What "achieving it " would
cost is known as :-
Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following
factors should be considered :Correct Answer Proximity to raw materials and markets , Availability
of infrastructure , Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of
infrastructure , Government policies and other factors
Multiple Choice Single Answer
Question The profit earned from operations of the project during life
of the project is known as :Correct Answer Cash inflow
Your Answer Profit after appropriation
Multiple Choice Multiple Answer
Question Financial and economic aspect of the Visit report consists
of :Correct Answer Company's financial year , Impact of Government
policies on company operations , Comments on the last published
accounts
Your Answer Company's financial year , Impact of Government
policies on company operations , Sales trends
Select The Blank
Question A Project has a ________ represented by growth,
maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
True/False
Question Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Export market technique of Commercial appraisal Government
provides ample encouragement Government provides ample
encouragement
Demand Technique forecasting of Commercial appraisal Future
demand of the product A method based on the assumption that the
behaviour of the variables would continue in similar/same direction
and magnitude, as in the past
Past trend method of Commercial appraisal Adopted as a guide
depending on the consumption pattern of the society as a whole
Adopted as a guide depending on the consumption pattern of the
society as a whole
End use method of Commercial appraisal A list of industries wherein
the product is used is made and quantity and volume is arrived at A
list of industries wherein the product is used is made and quantity and
volume is arrived at
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is
termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
True/False
Question The emphasis of a finance manager should be on taking a
synergistic view of the project rather than looking at it only from the
financial aspects.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question Disposition of funds includes :Correct Answer Interest on term loans
Your Answer Increase in secured borrowing
Multiple Choice Single Answer
Question Gross Working Capital means :Correct Answer Current assets
Your Answer Current assets less Current liabilities
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
Select The Blank
Question The Project Cycle should be in the ________ order
Correct Answer Identification of Project - Project Appraisal Negotiations for loans
Your Answer Identification of Project - Project Appraisal Negotiations for loans
True/False
Question Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True
Your Answer True
Select The Blank
Question Investors who invest in the debentures of the company
are the ________ of the company.
Correct Answer Creditors
Your Answer Creditors
Select The Blank
Question Longer the duration of production cycle, higher the
requirement of ________.
Correct Answer Working capital
Your Answer Working capital
True/False
Question Cost and time overrun of the project may lead to loss on
account of lost market opportunities.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The ratio which indicates the ability of the company to
meet current obligations is termed as :Correct Answer Current ratio
Your Answer Current ratio
Multiple Choice Single Answer
Question The third phase of the technical appraisal which focuses
upon appraising the likely technical gaps consists of :-
Correct Answer Problems pertaining to the period when the project
is in operation
Your Answer Problems pertaining to the period when the project is
in operation
Multiple Choice Multiple Answer
Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the
plant
Your Answer Technology , Layout of the plant , Design of the plant
True/False
Question Market potential should be determined under the
Marketing aspect of the Project report.
Correct Answer True
Your Answer True
Select The Blank
Question Having decided on the location and product, the promoter
takes into account the ________ that is to be adopted for producing
the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question BCG Product Portfolio Matrix analyses products on the
basis of :Correct Answer Relative Market share and Industry Growth rate
Your Answer Relative Market share and Industry Growth rate
Multiple Choice Single Answer
Question Preliminary expenses include :Correct Answer Drafting of Memorandum expenses
Your Answer Drafting of Memorandum expenses
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Cost under-estimation at the project preparation and evaluation stage leads to
cost and time over run.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Match The Following
Question Correct Answer Your Answer
Project organisation Finance manager Completion date of the project
General category of Project report Location of factory Location of factory
Cost aspect of the project report Consultancy fees Reasons for cost escalations
Financing plan Unsecured loans Finance manager
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Single Answer
Question Disposition of funds includes :Correct Answer Interest on term loans
Your Answer Increase in secured borrowing
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Commercial Papers
True/False
Question Cost and time overrun of the project may lead to loss on account of lost
market opportunities.
Correct Answer True
Your Answer True
Select The Blank
Question Commission outstanding is ________ of funds.
Correct Answer Application
Your Answer No flow
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To indicate the
financial strength and weakness of the business , To help to understand the changes in
assets as well as asset sources which are not revealed by the income statement
Your Answer To find out the uses of loans raised by the business , To help to
understand the changes in assets as well as asset sources which are not revealed by the
income statement , Helps to prepare financial statements
Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon appraising
the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementation
Your Answer Problems faced during the Construction and Project implementation
True/False
Question The Detailed Project report spells out the modus operandi for the
implementation of the Project and the realization of the Project objectives.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure
, Government policies and other factors
Your Answer Proximity to raw materials and markets , Plant capacity , Availability of
infrastructure
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
Select The Blank
Question Name and designation of the chief executive comes under the ________
category.
Correct Answer General
Your Answer Project organisation
Select The Blank
Question ________ occupies a unique position in the macro economic development
which helps in induction of new technology and facilitates, greater efficiency as well as
higher productivity.
Correct Answer Investment
Your Answer Production
Multiple Choice Multiple Answer
Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written
off
Your Answer Funds from operation , Funds from long term loans
Multiple Choice Multiple Answer
Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals
Your Answer Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure
Your Answer Fixation of means of financial structure
Select The Blank
Question ________ is that scarce input which financial resources alone cannot
mobilise.
Correct Answer Management
Your Answer Management
Multiple Choice Single Answer
Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result
Your Answer Specific result
Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Select The Blank
Question Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer One
Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing Project
finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
Multiple Choice Multiple Answer
Question As per the GE's Stop Light Matrix, Products may justify substantial
commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average
Business strength and high Industry attractiveness
Your Answer Strong Business Strength and high Industry attractiveness , Average
Business Strength and Medium Industry Attractiveness , Average Business strength and
high Industry attractiveness
Select The Blank
Question Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
True/False
Question For computing Interest coverage ratio, Profit after Interest and taxes are taken
into account.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question The cash flow of all the years during the expected life of the project are
discounted at a pre-determined cut off rate and :Correct Answer Net Present value is obtained
Your Answer Average rate of return is obtained
Multiple Choice Single Answer
Question The ratio which indicates the ability of the company to meet current
obligations is termed as :Correct Answer Current ratio
Your Answer Current ratio
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
True/False
Question In small scale organisation, requirement of working capital is quite high due
to high amount of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting
Your Answer Demand forecasting
True/False
Question The secondary data is collected through market survey, specific for the
project being appraised.
Correct Answer False
Your Answer True
True/False
Question Debt service coverage ratio indicates whether cash earned is sufficient for
debt service.
Correct Answer True
Your Answer True
Select The Blank
Question Position regarding requirement and training of operational staff comes under
the ________ category of Project report.
Correct Answer Project organisation
Your Answer Project organisation
Match The Following
Question Correct Answer Your Answer
Moving into new areas/product lines Diversification Projects Rehabilitation Projects
Suppliers' credit Short term finance Short term finance
Deferred credit Long term finance Long term finance
Setting up new units New Projects Diversification Projects
Select The Blank
Question Retained earnings indicates that whatever profits are earned by the company
are not distributed by it by way of ________ but are kept aside for use in future for
expansion or other purpose.
Correct Answer Dividend
Your Answer Dividend
Multiple Choice Single Answer
Question The basic document for facilitating Project financing is the :Correct Answer Detailed Project report
Your Answer Articles of Association
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement
Your Answer Plant capacity , Quality standards , Power / telecom facilities
Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of cash is
termed as :Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Multiple Choice Single Answer
Question General Electric Stop Light Matrix :Correct Answer Which is highly respected for the sophistication, maturity and quality
in its planning systems
Your Answer Which is highly respected for the sophistication, maturity and quality in
its planning systems
Multiple Choice Single Answer
Question Geographic market appraisal answers to :Correct Answer Where do the customers live?
Your Answer Where do the customers live?
Select The Blank
Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and
marketable securities.
Correct Answer Fund
Your Answer Fund
Multiple Choice Multiple Answer
Question The temporary requirement of working capital can be financed out of :Correct Answer Inter-corporate Deposits , Commercial Papers
Your Answer Inter-corporate Deposits , Commercial Papers
True/False
Question Current assets includes stock-in-process.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Match The Following
Question Correct Answer Your Answer
Project Financing Help improving Corporate Return on Equity Industrial Finance
Corporation of India
Finance in international financial markets Issue of Euro bonds Issue of Euro bonds
International financial institutions World Bank Increasing emphasis on the Private
initiative
Policy of Liberalisation, Privatisation and Globalisation Increasing emphasis on the
Private initiative Help improving Corporate Return on Equity
Multiple Choice Multiple Answer
Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Auditors report , Balance Sheet
Multiple Choice Single Answer
Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Select The Blank
Question The Project Cycle should be in the ________ order
Correct Answer Identification of Project - Project Appraisal - Negotiations for loans
Your Answer Identification of Project - Project Appraisal - Negotiations for loans
True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The industrial concern earned profits by increasing the sales volume under
the :Correct Answer Sales concept
Your Answer Marketing concept
True/False
Question Cost and time overrun of the project may lead to loss on account of lost
market opportunities.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Initiative , Too ambitious promoters
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial
Relationship
Your Answer Linear Relationship , Chain ratio Relationship , Exponential Relationship
True/False
Question Financial analysis based on accounting ratios will give mis-leading results if
the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , To indicate the
financial strength and weakness of the business , To help to understand the changes in
assets as well as asset sources which are not revealed by the income statement
Your Answer To indicate the financial strength and weakness of the business , To help
to understand the changes in assets as well as asset sources which are not revealed by the
income statement , Helps to prepare financial statements
True/False
Question The maximum Seed Capital assistance provided by IDBI under the project
will be restricted to 50% of the required promoter's contribution or Rs. 50 lakhs
whichever is lower.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect , Social aspect
Multiple Choice Single Answer
Question Strategic Position and Action Evaluation Model :Correct Answer Is an approach to hammer out an appropriate strategic posture for a
firm and its individual business
Your Answer Which is highly respected for the sophistication, maturity and quality in
its planning systems
Multiple Choice Single Answer
Question The Projects which are undertaken to manufacture certain products which are
being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects
Your Answer Backward Integration Projects
Multiple Choice Multiple Answer
Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant
Your Answer Technology , Layout of the plant , Design of the plant
True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution
Control Authorities before setting up any project.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should be
considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure
, Government policies and other factors
Your Answer Proximity to raw materials and markets , Availability of infrastructure ,
Government policies and other factors
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future
benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Select The Blank
Question Longer the duration of production cycle, higher the requirement of
________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Inflow of cash
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question Details regarding Administrative / controlling office comes under the
________ category.
Correct Answer General
Your Answer Project organisation
Multiple Choice Multiple Answer
Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
Select The Blank
Question Depreciation is sometimes treated as ________ funds.
Correct Answer Source
Your Answer Source
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Single Answer
Question In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth
rate
Your Answer Products which enjoy a high market share as well as a high growth rate
Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit
Your Answer Unsecured loans
Match The Following
Question Correct Answer Your Answer
Econometric method Mathematical representation of economic relationship Suitable for
forecasting the demand for intermediate products
Primary source of data Market survey Market survey
Secondary source of data Collected in some other context Collected in some other
context
Leading indicators Variables that change faster than others Mathematical representation
of economic relationship
Multiple Choice Multiple Answer
Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured
borrowing
Your Answer Depreciation , Increase in secured borrowing
True/False
Question The construction of National Golden Quadrilateral can be recognised as
Project.
Correct Answer True
Your Answer True
True/False
Question The cost factors of the product mixed is also taken into account to arrive at
cost at various levels of production and its cost impact of the manufacturing.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Capital Issue expenses include :Correct Answer Brokerage fees to registrars
Your Answer Market research expenses
Select The Blank
Question Having decided on the location and product, the promoter takes into account
the ________ that is to be adopted for producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Single Answer
Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the
society as a whole
Your Answer A list of industries wherein the product is used is made and quantity and
volume is arrived at
Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board
Your Answer Managing Director , Electrical engineers , Committees of the board
Multiple Choice Single Answer
Question Sanctioned bank limits is categorised under :Correct Answer Working capital
Your Answer Production, Sales and Profitability
Multiple Choice Single Answer
Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness
Your Answer Business strength and Industrial Attractiveness
Multiple Choice Multiple Answer
Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Multiple Choice Single Answer
Question Cost of overheads include :Correct Answer Cost of repairs and maintenance
Your Answer Cost of repairs and maintenance
Multiple Choice Multiple Answer
Question External sources of cash are as follows :Correct Answer Issue of new shares , Long term loans , Short term borrowings
Your Answer Issue of new shares , Long term loans , Short term borrowings
Select The Blank
Question The company having ________, is appropriate for the strategic posture of
Conservative under the SPACE approach.
Correct Answer Limited competitive advantage, belonging to a not so attractive
industry but enjoying financial strength and operating in a relatively stable environment
Your Answer High financial strength, high industrial strength, enjoying a competitive
advantage and belonging to an attractive industry, operating in a relatively stable
environmental conditions
True/False
Question Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True
Your Answer True
True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors
is more than that of the owners.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The cost of Plant and Machinery includes :Correct Answer Cost of stores and spares
Your Answer Building and civil construction
Select The Blank
Question The basic difference between the feasibility study report and ________ is the
level of accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer Audit report
True/False
Question
Correct Answer
The Detailed Project report spells out the modus operandi for the implementation of the Project
and the realization of the Project objectives.
True
Your Answer
True
True/False
Question
Correct Answer
Production line diagrams show the organisation structure of the project along with information on
location, personnel required for various departments, and their inter-relationship.
False
Your Answer
False
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses upon appraising the likely technical
gaps consists of :Correct Answer
Problems faced during the Construction and Project implementation
Your Answer
Problems faced during the Construction and Project implementation
Multiple Choice Single Answer
Question
In BCG Matrix "STARS" indicate :Correct Answer
Products which enjoy a high market share as well as a high growth rate
Your Answer
Products which enjoy a high market share as well as a high growth rate
Multiple Choice Multiple Answer
Question
Management category of Visit report consists of :Correct Answer
Managing Director , Institutional nominees , Committees of the board
Your Answer
Managing Director , Institutional nominees , Committees of the board
Select The Blank
Question
A Project has a ________ represented by growth, maturity and decay.
Correct Answer
Life cycle
Your Answer
Set of objectives
Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :Correct Answer
Consumption-level method , Econometric method
Your Answer
Consumption-level method
Select The Blank
1
Question
Excessive expenditures on foreign technicians leads to ________.
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost is known as :Correct Answer
Finance cost aspect
Your Answer
Time span
Multiple Choice Single Answer
Question
Marketing aspect of Detailed Project report includes :Correct Answer
Demand forecasting
Your Answer
Demand forecasting
Multiple Choice Multiple Answer
Question
The sources of cash are :Correct Answer
Sale of machinery , Cash from operations , Issue of new shares
Your Answer
Cash from operations , Sale of machinery , Issue of new shares
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer
Power Generation and Distribution
Your Answer
Industrial machinery
Select The Blank
Question
________ is the summary of cash book or Receipts and Payments statement.
Correct Answer
Cash flow statement
Your Answer
Trial balance
Multiple Choice Single Answer
Question
Receivables is categorised under :Correct Answer
Current assets and liabilities
Your Answer
Current assets and liabilities
True/False
Question
A project is unique and no two projects are similar.
Correct Answer
True
2
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
End use method of Commercial
appraisal
A list of industries wherein the product A list of industries wherein the product is
is used is made and quantity and
used is made and quantity and volume
volume is arrived at
is arrived at
Export market technique of
Commercial appraisal
Government provides ample
encouragement
Government provides ample
encouragement
Demand Technique forecasting of
Commercial appraisal
Future demand of the product
Future demand of the product
Past trend method of Commercial
appraisal
Adopted as a guide depending on the Adopted as a guide depending on the
consumption pattern of the society as consumption pattern of the society as a
a whole
whole
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific objectives within a :Correct Answer
Predefined time
Your Answer
Predefined time
Select The Blank
Question
________ in liabilities involves inflow of funds.
Correct Answer
Increase
Your Answer
Increase
True/False
Question
Correct Answer
The emphasis of a finance manager should be on taking a synergistic view of the project rather
than looking at it only from the financial aspects.
True
Your Answer
True
Multiple Choice Single Answer
Question
Cost of utilities include :Correct Answer
Cost of electricity
Your Answer
Cost of electricity
Multiple Choice Multiple Answer
Question
Marketing category of the Project report consists of :Correct Answer
Target market , Market potential , Pricing policy
Your Answer
Target market , Market potential , Pricing policy
Multiple Choice Single Answer
3
Question
In BCG Matrix "QUESTION MARKS" indicate :-
Correct Answer
Products which have high growth potential but low market share
Your Answer
Products which have high growth potential but low market share
Select The Blank
Question
Location of the factory comes under the ________ category of the Project report.
Correct Answer
General
Your Answer
General
True/False
Question
Correct Answer
It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities
before setting up any project.
True
Your Answer
False
Multiple Choice Single Answer
Question
Disposition of funds includes :Correct Answer
Interest on term loans
Your Answer
Interest on term loans
Multiple Choice Multiple Answer
Question
Internal sources of funds are :Correct Answer
Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer
Funds from operation
Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer
Source
Your Answer
Application
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where
there is :Correct Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high
Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high
Industry attractiveness , Average Business Strength and Low Industry attractiveness
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer
Equity shares , Public deposit
4
Your Answer
True/False
Question
Equity shares , Bridge loan , Working capital loan
Correct Answer
The cost factors of the product mixed is also taken into account to arrive at cost at various levels of
production and its cost impact of the manufacturing.
True
Your Answer
True
Multiple Choice Multiple Answer
Question
The various aspects which need to be considered while assessing Project finance financing are :Correct Answer
Environmental factors , Risk involved , Managerial compensation
Your Answer
Environmental factors , Risk involved , Managerial compensation
Multiple Choice Single Answer
Question
Technical aspect of detailed project report includes :Correct Answer
Detailed Project Engineering
Your Answer
Detailed Project Engineering
Match The Following
Question
Correct Answer
Your Answer
Technical aspect of detailed project
report
Detailed Project Engineering
Detailed Project Engineering
Financial aspect of Detailed Project
report
Profitability
Profitability
Marketing aspect of Detailed Project
report
Distribution
Distribution
Management aspect of detailed project Conservativeness
report
Conservativeness
Multiple Choice Multiple Answer
Question
Advantages of fund flow statement are :Correct Answer
Your Answer
It determines financial consequences of the business operations , It enables the firm to plan its
financial resources properly , It helps as a reliable guide for the future requirement of funds
It determines financial consequences of the business operations , It enables the firm to plan its
financial resources properly , It helps as a reliable guide for the future requirement of funds
Multiple Choice Multiple Answer
Question
After the SPACE chart is constructed, we would normally get any one of the following basic
strategic postures :Correct Answer
Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer
Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
5
Question
Details regarding Internal accruals comes under the ________ category of Project report.
Correct Answer
Financing plan
Your Answer
General category
True/False
Question
Correct Answer
The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength
and Industry Attractiveness.
False
Your Answer
False
Multiple Choice Multiple Answer
Question
The applications of cash are :Correct Answer
Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans , Issue of new machinery
Select The Blank
Question
The Project Cycle should be in the ________ order
Correct Answer
Identification of Project - Project Appraisal - Negotiations for loans
Your Answer
Identification of Project - Project Appraisal - Negotiations for loans
True/False
Question
Correct Answer
Financial analysis based on accounting ratios will give mis-leading results if the effects of changes
in price level are not taken into account.
True
Your Answer
True
True/False
Question
Correct Answer
There is a need for studying Project finance both for the lenders as well as the borrowers as both
of them have equal stake in making the Project a success.
True
Your Answer
True
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed as :Correct Answer
Strategic perspective
Your Answer
Strategic perspective
True/False
Question
Current assets includes stock-in-process.
Correct Answer
True
6
Your Answer
False
Multiple Choice Multiple Answer
Question
External sources of cash are as follows :Correct Answer
Issue of new shares , Long term loans , Short term borrowings
Your Answer
Issue of new shares , Depreciation
Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :Correct Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at
Your Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at
Multiple Choice Single Answer
Question
The Projects which are undertaken for further enhancing/augmenting the existing capacity is
known as :Correct Answer
Expansion Projects
Your Answer
Select The Blank
Question
Expansion Projects
Correct Answer
Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable
securities.
Fund
Your Answer
Investment
7
True/False
Question 1 The advantage of secondary sources of data is that it is readily and economically available.
Correct Answer True
Your Answer True
True/False
Question2 In small scale organisation, requirement of working capita l is quite high due to high amount
of overheads, high buying costs and high selling cost.
Correct Answer True
Your Answer True
True/False
Question3 Banks and Financial Institutions, world-wide, are now financing projects with strategies and
terms that would have been hard to believe/imagine just a few years back.
Correct Answer True
Your Answer True
Select The Blank
Question 4 ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Multiple Answer
Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Multiple Choice Single Answer
Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun
Your Answer Management problems
Multiple Choice Single Answer
Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering
Your Answer Detailed Project Engineering
Multiple Choice Multiple Answer
Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing
Your Answer Preliminary expenses written off , Increase in secured borrowing
Multiple Choice Single Answer
Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Select The Blank
Question 10 A smaller unit into which the overall requirement of capital of a company is sub-divided is
termed as ________.
Correct Answer Share
Your Answer Share
Multiple Choice Single Answer
Question11 A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Single Answer
1
Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost
Your Answer Building cost
Multiple Choice Multiple Answer
Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer Funds from operation , Goodwill written off
Multiple Choice Multiple Answer
Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Determination , Organisation Building , Person / system oriented
Select The Blank
Question15 Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer One
True/False
Question16 Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question17 The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits
Your Answer That it involves current outlay of funds in expectation of future benefits
Multiple Choice Multiple Answer
Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method
Your Answer Trend Projection method , Moving Averages method
Select The Blank
Question 19 ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
True/False
Question20 Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
Select The Blank
Question21 Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital
Your Answer Working capital
Select The Blank
Question22 Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Short term
Select The Blank
Question23 ________ is the summary of cash book or Receipts and Payments statement.
Correct Answer Cash flow statement
Your Answer Trial balance
2
True/False
Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of funds.
Correct Answer False
Your Answer True
True/False
Question25 Cost and time overrun of the project may lead to loss on account of lost market
opportunities.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Multiple Choice Multiple Answer
Question27 Casual methods of Demand forecasting consists of : Correct Answer Consumption-level method , Econometric method
Your Answer Consumption-level method , Econometric method
Multiple Choice Single Answer
Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate
Your Answer Products which enjoy a high market share as well as a high growth rate
Multiple Choice Single Answer
Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy?
Your Answer Why they buy?
True/False
Question30 Production line diagrams show the organisation structure of the project along with
information on location, personnel required for various departments, and their inter-relationship.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question31 While choosing the location for a project, the following factors should be considered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Government
policies and other factors
Your Answer Proximity to raw materials and markets , Availability of infrastructure , Government
policies and other factors
Multiple Choice Single Answer
Question32 The cost which change in the same proportion in which the level of production changes is
known as :Correct Answer Variable cost
Your Answer Variable cost
Select The Blank
Question33 Goods purchased on credit ________ in flow of funds.
Correct Answer Does not result
Your Answer Decreases
Multiple Choice Multiple Answer
Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Quick ratio
3
Multiple Choice Single Answer
Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management
Your Answer Organisation and management
Multiple Choice Single Answer
Question36 Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project
Your Answer The total of all items of outlay associated with a project
Multiple Choice Multiple Answer
Question37 Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability , Sales trends
Match The Following
Question38 Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance
Multiple Choice Multiple Answer
Question 40 General category of the Project report consists of : Correct Answer Name of the Industrial concern , Proposed product , Location of the factory
Your Answer Name of the Industrial concern , Proposed product , Location of the factory
Multiple Choice Multiple Answer
Question 41 The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet
Your Answer Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Multiple Choice Multiple Answer
Question43 After the SPACE chart is constructed, we would normally get any one of the following basic
strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer Aggressive Posture , Competitive Posture , Defensive Posture
Select The Blank
Question 44 ________ occupies a unique position in the macro economic development which helps in
induction of new technology and facilitates, greater efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Marketing
4
Multiple Choice Single Answer
Question45 Infrastructural projects include : Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Select The Blank
Question46 Name and designation of the chief executive comes under the ________ category.
Correct Answer General
Your Answer General
Match The Following
Question47 Correct Answer Your Answer
Private investment Power generation Machine tools
Project Time -bound Time -bound
Programme Not necessarily time bound Not necessarily time bound
Foreign direct investment Machine tools Power generation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Match The Following
Question
Correct Answer
Your Answer
Econometric method
Mathematical representation of
economic relationship
Mathematical representation of
economic relationship
Primary source of data
Market survey
Market survey
Secondary source of data
Collected in some other context
Collected in some other context
Leading indicators
Variables that change faster than
others
Variables that change faster than
others
Select The Blank
Question
Details regarding Internal accruals comes under the ________ category of Project
report.
Correct Answer
Financing plan
Your Answer
Financing plan
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Technical aspects includes :Correct Answer
Plant capacity , Quality standards , Raw material requirement
Your Answer
Plant capacity , Quality standards , Raw material requirement
Select The Blank
Question
A smaller unit into which the overall requirement of capital of a company is subdivided is termed as ________.
Correct Answer
Share
5
Your Answer
Share
Select The Blank
Question
In order to meet the cost of large project, the technique of ________ has been
developed so that the financial commitment and risks associated with a project are
shared between the project sponsor and the lending institutions.
Correct Answer
Limited recourse financing
Your Answer
Limited recourse financing
Select The Blank
Question
________ is a current liability.
Correct Answer
Trade credit
Your Answer
Trade credit
Select The Blank
Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Book debts
Multiple Choice Multiple Answer
Question
Debt Service coverage ratio may be considered to be one of the most important ratios
calculated by the :Correct Answer
Bankers , Financial Institutions
Your Answer
Bankers , Creditors , Financial Institutions
Multiple Choice Multiple Answer
Question
Ratios relating to working capital are :Correct Answer
Current ratio , Internal measure , Quick ratio
Your Answer
Current ratio , Internal measure , Quick ratio
Multiple Choice Single Answer
Question
Cost of laying roads comes under :Correct Answer
Land and site cost
Your Answer
Preoperative cost
Multiple Choice Single Answer
Question
Pre-operative expenses include :Correct Answer
Interest on deferred payments
Your Answer
Market research expenses
6
True/False
Question
Correct Answer
The cost factors of the product mixed is also taken into account to arrive at cost at
various levels of production and its cost impact of the manufacturing.
True
Your Answer
True
Select The Blank
Question
Retained earnings indicates that whatever profits are earned by the company are not
distributed by it by way of ________ but are kept aside for use in future for expansion
or other purpose.
Correct Answer
Dividend
Your Answer
Dividend
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Management aspects includes :Correct Answer
Determination , Organisation Building , Person / system oriented
Your Answer
Organisation Building , Person / system oriented , Promoter's equity / stake
True/False
Question
Correct Answer
The Detailed Project report spells out the modus operandi for the implementation of
the Project and the realization of the Project objectives.
True
Your Answer
True
Multiple Choice Single Answer
Question
General Electric Stop Light Matrix analyses products in terms of :Correct Answer
Business strength and Industrial Attractiveness
Your Answer
Company's competitive advantage and Company's financial strength
True/False
Question
Correct Answer
The emphasis of a finance manager should be on taking a synergistic view of the
project rather than looking at it only from the financial aspects.
True
Your Answer
True
Multiple Choice Multiple Answer
Question
After the SPACE chart is constructed, we would normally get any one of the following
basic strategic postures :Correct Answer
Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer
Aggressive Posture , Competitive Posture , Defensive Posture
True/False
7
Question
Correct Answer
The ratios of one organisation compared with the ratios of the same organisation is
termed as inter-firm comparison.
False
Your Answer
False
Select The Blank
Question
Detailed Project Report is generally prepared from a ________ report with additional
information.
Correct Answer
Feasibility
Your Answer
Feasibility
Select The Blank
Question
Under ________ method, the forecasts are modified in the light of observed errors.
Correct Answer
Exponential smoothing
Your Answer
Cobb Douglas Relationship
Match The Following
Question
Correct Answer
Your Answer
Source of funds
Depreciation
Investment
Fixed assets
Building
Building
Current assets
Debtors
Debtors
Current liability
Trade credit
Trade credit
True/False
Question
The Detailed Project report must indicate the gestation period of the project.
Correct Answer
True
Your Answer
True
True/False
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
8
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer
Power Generation and Distribution
Your Answer
Power Generation and Distribution
Multiple Choice Single Answer
Question
The method for evaluating the profitability of industrial projects whose object is to
ascertain the period required for recovering the entire investment made in a project is
known as :Correct Answer
Pay back method
Your Answer
Pay back method
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer
Increase
Your Answer
Increase
Multiple Choice Single Answer
Question
The rate of discount which would equate the present value of investments to the
present value of benefits over the life of the project is known as :Correct Answer
Internal rate of return
Your Answer
Internal rate of return
Select The Blank
Question
Cost of fencing comes under the ________ category of the Project report.
Correct Answer
Land and site development
Your Answer
Land and site development
Multiple Choice Single Answer
Question
The ratio that roughly measures the company's potential reserve of cash is termed as
:Correct Answer
Net Working capital to total assets
Your Answer
Quick ratio
Multiple Choice Single Answer
Question
The sources of funding have expanded from banks, insurance companies and
multilateral agencies to include the :Correct Answer
Capital market
Your Answer
Capital market
True/False
9
Question
Sensitivity analysis consists of assessing the degree of risk.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
The permanent requirement of working capital should be financed out of :Correct Answer
Cash Profits , Shares , Debentures
Your Answer
Cash Profits , Shares
Multiple Choice Single Answer
Question
Sources of funds include :Correct Answer
Increase in secured borrowing
Your Answer
Increase in secured borrowing
True/False
Question
Correct Answer
Nominal maximum capacity is the capacity that is technically attainable and this
corresponds to the supplier's guaranteed capacity.
True
Your Answer
True
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors should be considered :Correct Answer
Your Answer
Proximity to raw materials and markets , Availability of infrastructure , Government
policies and other factors
Proximity to raw materials and markets , Availability of infrastructure , Government
policies and other factors
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer
Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
True/False
Question
Correct Answer
Ratio should be computed on the basis of inter-related figures which have a cause and
effect relationship.
True
Your Answer
True
True/False
Question
Correct Answer
In the BCG Matrix "DOGS" indicate products which are generally during the stage of
Decline of a Product Life Cycle.
True
10
Your Answer
True
Multiple Choice Multiple Answer
Question
Trend Projection method of demand forecasting consists of :Correct Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer
Linear Relationship , Chain ratio Relationship , Exponential Relationship
Multiple Choice Multiple Answer
Question
Technical appraisal is basically concerned with :Correct Answer
Technology , Layout of the plant , Design of the plant
Your Answer
Technology , Layout of the plant , Design of the plant
Multiple Choice Single Answer
Question
Demographic market appraisal answers to
Correct Answer
Who they are?
Your Answer
Where do the customers live?
Select The Blank
Question
A Project has a ________ represented by growth, maturity and decay.
Correct Answer
Life cycle
Your Answer
Life cycle
Multiple Choice Multiple Answer
Question
A project objective can be said to have the following dimensions viz.:
Correct Answer
Strategic perspective , Time span , Finance cost aspect
Your Answer
Strategic perspective , Time span , Social aspect
Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :Correct Answer
Consumption-level method , Econometric method
Your Answer
Trend Projection method , Consumption-level method , Moving Averages method
Multiple Choice Single Answer
Question
The statement which shows the movement of cash into and out of firm's kittie is
known as :Correct Answer
Cash flow statement
Your Answer
Cash flow statement
11
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :Correct Answer
Your Answer
To help to understand the changes in assets as well as asset sources which are not
revealed by the income statement , To find out the uses of loans raised by the business
, To indicate the financial strength and weakness of the business
To find out the uses of loans raised by the business , To help to understand the changes
in assets as well as asset sources which are not revealed by the income statement ,
Helps to prepare financial statements
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer
Inflow of cash
Your Answer
Inflow of cash
Multiple Choice Single Answer
Question
Every project involves financial outlay which can be referred to as :Correct Answer
Project finance
Your Answer
Project finance
True/False
Question
Correct Answer
The Detailed Project report spells out the modus operandi for the implementation of the
Project and the realization of the Project objectives.
True
Your Answer
True
Select The Blank
Question
As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer
Decreases
Your Answer
Decreases
Multiple Choice Multiple Answer
Question
Internal sources of funds are :Correct Answer
Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer
Funds from operation , Loss on sale of fixed assets
Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :Correct Answer
Your Answer
A list of industries wherein the product is used is made and quantity and volume is
arrived at
A list of industries wherein the product is used is made and quantity and volume is
arrived at
12
Multiple Choice Multiple Answer
Question
The applications of cash are :Correct Answer
Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans
True/False
Question
Correct Answer
In small scale organisation, requirement of working capital is quite high due to high
amount of overheads, high buying costs and high selling cost.
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report Location of factory
Location of factory
Cost aspect of the project report
Consultancy fees
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank
Question
Longer the duration of production cycle, higher the requirement of ________.
Correct Answer
Working capital
Your Answer
Working capital
Multiple Choice Single Answer
Question
Sanctioned bank limits is categorised under :Correct Answer
Working capital
Your Answer
Production, Sales and Profitability
Select The Blank
Question
Cost of fencing comes under the ________ category of the Project report.
Correct Answer
Land and site development
Your Answer
Land and site development
True/False
Question
Correct Answer
Trend projection method is the important technique for forecasting demand.
True
13
Your Answer
True/False
Question
True
Correct Answer
The emphasis of a finance manager should be on taking a synergistic view of the project
rather than looking at it only from the financial aspects.
True
Your Answer
True
Select The Blank
Question
________ in assets involves outflow of funds.
Correct Answer
Increase
Your Answer
Increase
Select The Blank
Question
The basic difference between the feasibility study report and ________ is the level of
accuracy and degree of detail.
Correct Answer Detailed Project report
Your Answer
Detailed Project report
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Location of the factory comes under the ________ category of the Project report.
Correct Answer
General
Your Answer
General
Multiple Choice Multiple Answer
Question
Financing plans consists of :Correct Answer
Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer
Question
Infrastructural projects include :Correct Answer
Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False
14
Question
Market potential should be determined under the Marketing aspect of the Project report.
Correct Answer
True
Your Answer
True
Select The Blank
Question
________ tries to have what the customer will want- where, when, in what form and at
what price.
Correct Answer Marketing
Your Answer
Marketing
Multiple Choice Single Answer
Question
A project objective which states What "achieving it " would cost is known as :Correct Answer
Finance cost aspect
Your Answer
Strategic perspective
Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed as :Correct Answer
Strategic perspective
Your Answer
Social aspect
True/False
Question
Correct Answer
Nominal maximum capacity is the capacity that is technically attainable and this
corresponds to the supplier's guaranteed capacity.
True
Your Answer
True
Select The Blank
Question
In order to meet the cost of large project, the technique of ________ has been
developed so that the financial commitment and risks associated with a project are
shared between the project sponsor and the lending institutions.
Correct Answer Limited recourse financing
Your Answer
Long term financing
Multiple Choice Single Answer
Question
The basic characteristic of a project is :Correct Answer
That it involves current outlay of funds in expectation of future benefits
Your Answer
That it involves current outlay of funds in expectation of future benefits
Multiple Choice Single Answer
Question
Past trend method of Commercial appraisal technique is :-
15
Correct Answer
Adopted as a guide depending on the consumption pattern of the society as a whole
Your Answer
Adopted as a guide depending on the consumption pattern of the society as a whole
Multiple Choice Single Answer
Question
The norms for providing open areas have to be strictly followed for safety of labour and
allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit
Your Answer
Chemical unit
Multiple Choice Single Answer
Question
Short supplies of materials may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank
Question
Investors who invest in the debentures of the company are the ________ of the
company.
Correct Answer Creditors
Your Answer
Creditors
Match The Following
Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment
Machine tools
Machine tools
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds
where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average Business strength
and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average Business strength
and high Industry attractiveness
Multiple Choice Multiple Answer
Question
Management qualities includes :Correct Answer
Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
16
Question
The industrial concern earned profits by increasing the sales volume under the :-
Correct Answer
Sales concept
Your Answer
Sales concept
True/False
Question
Correct Answer
The 'BCG Matrix 'analysis various products of the organisation in the terms of Business
strength and Industry Attractiveness.
False
Your Answer
False
Select The Blank
Question
Detailed Project Report is generally prepared from a ________ report with additional
information.
Correct Answer Feasibility
Your Answer
Feasibility
Multiple Choice Single Answer
Question
Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :Correct Answer
Name of the Industrial concern , Proposed product , Location of the factory
Your Answer
Name of the Industrial concern , Proposed product , Location of the factory
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific objectives within a :Correct Answer
Predefined time
Your Answer
Predefined time
Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors should be considered :Correct Answer
Proximity to raw materials and markets , Availability of infrastructure , Government
policies and other factors
17
Your Answer
Proximity to raw materials and markets , Availability of infrastructure , Government
policies and other factors
Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :Correct Answer
Equity shares , Public deposit
Your Answer
Equity shares , Public deposit
Multiple Choice Single Answer
Question
The cost which change in the same proportion in which the level of production changes
is known as :Correct Answer Variable cost
Your Answer
Variable cost
Multiple Choice Single Answer
Question
The second phase of the technical appraisal which focuses upon appraising the likely
technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementation
Your Answer
Problems faced during the Construction and Project implementation
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon appraising the likely
technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation
Your Answer
Problems pertaining to the period when the project is in operation
18
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
Question Borrower's contribution towards Working capital is
known as :Correct Answer Margin money
Your Answer Margin money
Multiple Choice Multiple Answer
Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings ,
Administrative block
Your Answer Factory building , Auxiliary buildings ,
Administrative block
Multiple Choice Single Answer
Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low
growth potential
Your Answer Products which have high market share but low
growth potential
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects
includes :Correct Answer Demand forecasting , Promotion , Distribution
Your Answer Demand forecasting , Promotion , Distribution
Multiple Choice Single Answer
Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a
project
Your Answer The total of all items of outlay associated with a
project
True/False
Question In both the extreme situations of trade cycles i.e.
Inflation and depression, requirement of working capital may be
high.
Correct Answer True
Your Answer True
True/False
Question Name of the finance manager comes under the Project
organisation category of the Project report.
Correct Answer True
Your Answer True
True/False
Question It is mandatory for each unit to obtain necessary
clearance from Pollution Control Authorities before setting up any
project.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following
dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost
aspect
Your Answer Strategic perspective , Time span , Finance cost
aspect
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration
level/ conservative
Organisational Climate Person oriented Person oriented
Multiple Choice Single Answer
Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question BCG Product Portfolio Matrix analyses products on
the basis of :Correct Answer Relative Market share and Industry Growth rate
Your Answer Relative Market share and Industry Growth rate
Select The Blank
Question ________ profitability reduces the strain on working
capital.
Correct Answer High
Your Answer Stable
Multiple Choice Single Answer
Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in
expectation of future benefits
Your Answer That it involves current outlay of funds in
expectation of future benefits
Multiple Choice Multiple Answer
Question The various aspects which need to be considered while
assessing Project finance financing are :Correct Answer Environmental factors , Risk involved ,
Managerial compensation
Your Answer Environmental factors , Risk involved ,
Managerial compensation
Multiple Choice Single Answer
Question "Fly by night" operator mentality is a :Correct Answer Management quality
Your Answer Management quality
Multiple Choice Single Answer
Question Every project involves financial outlay which can be
referred to as :Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question As the plant capacity increase, the investment cost unit
capacity ________.
Correct Answer Decreases
Your Answer Increases
Multiple Choice Multiple Answer
Question Debt Service coverage ratio may be considered to be
one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions
Your Answer Shareholders , Bankers , Financial Institutions
Multiple Choice Single Answer
Question A project objective which states What "achieving it "
would cost is known as :Correct Answer Finance cost aspect
Your Answer Finance cost aspect
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but
only rearranges the various facts , It does not consider non-fund
transactions
Your Answer It does not provide any new information but only
rearranges the various facts , It does not consider non-fund
transactions , It does not help in determining future requirement of
funds
Multiple Choice Single Answer
Question The third phase of the technical appraisal which
focuses upon appraising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the
project is in operation
Your Answer Problems pertaining to the period when the project
is in operation
Multiple Choice Single Answer
Question Receivables is categorised under :Correct Answer Current assets and liabilities
Your Answer Current assets and liabilities
Multiple Choice Single Answer
Question It is said that a second rate project in the hands of first
rate management is better than a first rate project in the hands of :Correct Answer Second rate management
Your Answer Second rate management
Select The Blank
Question The company having ________, is appropriate for the
strategic posture of Defensive under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as
financial strength and belongs to a not so attractive industry,
operating in an unstable environment
Your Answer Lacks both competitive advantage as well as
financial strength and belongs to a not so attractive industry,
operating in an unstable environment
Select The Blank
Question Excessive expenditures on foreign technicians leads to
________.
Correct Answer Cost and time overrun
Your Answer Profit maximisation
True/False
Question The 'BCG Matrix 'analysis various products of the
organisation in the terms of Business strength and Industry
Attractiveness.
Correct Answer False
Your Answer False
Select The Blank
Question Having decided on the location and product, the
promoter takes into account the ________ that is to be adopted for
producing the product.
Correct Answer Manufacturing process and technology
Your Answer Manufacturing process and technology
Multiple Choice Multiple Answer
Question Financial and economic aspect of the Visit report
consists of :Correct Answer Company's financial year , Impact of
Government policies on company operations , Comments on the
last published accounts
Your Answer Company's financial year , Impact of Government
policies on company operations , Comments on the last published
accounts
True/False
Question Sensitivity analysis consists of assessing the degree of
risk.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question A project objective which states "What' is to be
viewed" is termed as :Correct Answer Strategic perspective
Your Answer Strategic perspective
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should
be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits , Shares , Debentures
True/False
Question In the BCG Matrix "DOGS" indicate products which
are generally during the stage of Decline of a Product Life Cycle.
Correct Answer True
Your Answer True
True/False
Question The construction of National Golden Quadrilateral can
be recognised as Project.
Correct Answer True
Your Answer True
Select The Blank
Question Under the SPACE Model, Customer loyalty is
determined under the ________ dimension.
Correct Answer Company's competitive advantage
Your Answer Company's competitive advantage
True/False
Question The cost factors of the product mixed is also taken into
account to arrive at cost at various levels of production and its cost
impact of the manufacturing.
Correct Answer True
Your Answer True
True/False
Question The emphasis of a finance manager should be on
taking a synergistic view of the project rather than looking at it
only from the financial aspects.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :Correct Answer Cables
Your Answer Cables
Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects
includes :Correct Answer Plant capacity , Quality standards , Raw
material requirement
Your Answer Quality standards , Raw material requirement ,
Power / telecom facilities
Multiple Choice Multiple Answer
Question Trend Projection method of demand forecasting
consists of :-
Correct Answer Linear Relationship , Exponential Relationship ,
Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship ,
Polynomial Relationship
True/False
Question Market potential should be determined under the
Marketing aspect of the Project report.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis
Your Answer Financial analysis
Multiple Choice Single Answer
Question Preoperative expenses includes :Correct Answer Bank guarantees
Your Answer Bank guarantees
Select The Blank
Question A Project has a ________ represented by growth,
maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
True/False
Question If the organisation is a trading organisation, the
requirement of working capital will be on the lower side.
Correct Answer False
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Cost under-estimation at the project preparation and evaluation stage leads to
cost and time over run.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Short supplies of materials may lead to :Correct Answer Cost and time overrun
Your Answer Cost and time overrun
Match The Following
Question Correct Answer Your Answer
Project organisation Finance manager Completion date of the project
General category of Project report Location of factory Location of factory
Cost aspect of the project report Consultancy fees Reasons for cost escalations
Financing plan Unsecured loans Finance manager
Select The Blank
Question ________ is a current asset
Correct Answer Book debts
Your Answer Furniture
Multiple Choice Single Answer
Question Disposition of funds includes :Correct Answer Interest on term loans
Your Answer Increase in secured borrowing
Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures
Your Answer Cash Profits ,