MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 45 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
When an organization opts to convert private capital in to public capital, it is called _____________ |
| A. | Going Out |
| B. | Being Open |
| C. | Being Listed |
| D. | Going Public |
| Answer» E. | |
| 2. |
Inclusion of a security in the official list of a stock exchange is called _________ and for that the company has to apply with ___________. |
| A. | Listing, Managing Committee of Stock Exchange |
| B. | Enrollment, Managing Committee of Stock Exchange |
| C. | Listing, Board of Directors of Stock Exchange |
| D. | Registration, ROC |
| Answer» B. Enrollment, Managing Committee of Stock Exchange | |
| 3. |
Which of the following enables issuers to reap benefits arising from price and demand discovery? |
| A. | Public Issue by Prospectus |
| B. | Book Building |
| C. | Listing |
| D. | None of the above |
| Answer» C. Listing | |
| 4. |
____________ was set up, as a strong need was felt to protect the interest of investors and to have a systematic and organized working of the securities market in India. |
| A. | Bombay Stock Exchange |
| B. | National Stock Exchange |
| C. | Over the Counter Exchange of India |
| D. | Securities and Exchange Board of India |
| Answer» E. | |
| 5. |
Sentence A Through Rights issue fresh capital can be raised and Sentence B Through a Bonus Issue Fresh capital can be raised. |
| A. | Only Sentence A is true |
| B. | Both Sentences A and B are true |
| C. | Only Sentence of B is true |
| D. | Both Sentences A and B are False |
| Answer» B. Both Sentences A and B are true | |
| 6. |
Which Stock Exchange of India was set up with an objective to meet the current international standards of securities market? |
| A. | BSE |
| B. | ISE |
| C. | OTCEI |
| D. | NSE |
| Answer» E. | |
| 7. |
The purchase and sell of which of the following instrument is effected through Subsidiary General Ledger (SGL) account? |
| A. | Treasury Bills |
| B. | Options |
| C. | Equity Shares |
| D. | All of the Above |
| Answer» B. Options | |
| 8. |
To provide a focal point for central bank (RBI) intervention for influencing liquidity and general level of interest rates in the economy is an important function of |
| A. | Secondary Market |
| B. | Money Market |
| C. | Capital Market |
| D. | Forex Market |
| Answer» C. Capital Market | |
| 9. |
Which instrument was introduced in year 1990 with a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowings? |
| A. | Certificate of Deposit |
| B. | Commercial Paper |
| C. | Commercial Bill |
| D. | None of the Above |
| Answer» C. Commercial Bill | |
| 10. |
What type of relationship is there between call rates and short-term money market instruments such as CDs and CPs? |
| A. | Inverse |
| B. | Direct |
| C. | Negative |
| D. | None of the Above |
| Answer» B. Direct | |
| 11. |
Which instrument involves high risk and high returnsand helps corporates in solving temporary capital crisis without many formalities? |
| A. | Equity Shares |
| B. | Term Loan |
| C. | Inter-corporate Deposits |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 12. |
Which sentence is true? Sentence A Rating once given remains unchanged Sentence B Rating may be upgraded, downgraded or continue to be unchanged. |
| A. | Sentence A is True |
| B. | Sentence B is True |
| C. | none |
| D. | none |
| Answer» C. none | |
| 13. |
CARE has been set up by ___________ in collaboration with some banks and financial institutions. |
| A. | IDBI |
| B. | IFCI |
| C. | ICICI |
| D. | UTI |
| Answer» B. IFCI | |
| 14. |
Until February 1973, which one of the following was prevalent in World Monetary System? |
| A. | Free Floating Exchange Rate System |
| B. | Adjustable Peg Exchange Rate System |
| C. | Bench marking Exchange Rate System |
| D. | None of the above |
| Answer» C. Bench marking Exchange Rate System | |
| 15. |
Loss on sale of Fixed Assets / Investment will be shown on the credit side of adjusted profit and loss account. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 16. |
The proposed dividend for the Current Year would appear on the debit side of which account? |
| A. | Profit and Loss Account |
| B. | Balance Sheet |
| C. | Adjusted Profit and Loss Account |
| D. | Adjusted Balance Sheet |
| Answer» D. Adjusted Balance Sheet | |
| 17. |
If the shares are issued at a premium during the year then the amount of premium received will appear as a _______ |
| A. | Source of Fund |
| B. | Application of Fund |
| C. | Profit |
| D. | Loss |
| Answer» B. Application of Fund | |
| 18. |
Last year s proposed dividend has been paid during the current year and hence will be shown as________ |
| A. | A source of funds |
| B. | An application of funds |
| C. | Increase in liabilities |
| D. | None of the above |
| Answer» C. Increase in liabilities | |
| 19. |
From the following details find out the fund from operations PAT Rs. 2,500 Accumulated Depreciation Rs. 2,900 Retained Earning Rs. 4,200 Goodwill Written off Rs. 300 Profit on Sale of Fixed Assets Rs. 200 |
| A. | Rs. 9,900 |
| B. | Rs. 9,600 |
| C. | Rs. 9,700 |
| D. | Rs. 5,100 |
| Answer» D. Rs. 5,100 | |
| 20. |
Funds Flow Statement indicates the necessity of arranging external funds in advance if projected outflow is more than inflow. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 21. |
Which of the below financial product / instrument cab be traded in the secondary market? |
| A. | Equity Shares |
| B. | Commercial Paper |
| C. | Bonds |
| D. | All of the above |
| Answer» E. | |
| 22. |
When the exposed position in a foreign currency is covered through borrowing or lending in the money market, it is called ______________. |
| A. | Borrowing-Lending technique |
| B. | Futures Contract |
| C. | Currency Swap |
| D. | Money Market Hedge |
| Answer» E. | |
| 23. |
In a two way foreign exchange quotation, the difference between ask and bid prices is called ____________. |
| A. | Difference |
| B. | Margin |
| C. | Spread |
| D. | None of the above |
| Answer» D. None of the above | |
| 24. |
From the data given below which option is true? Spot 1 month s Forward Rs./GBP 94.85 94.95 |
| A. | 1 month s forward is at 1.27% premium |
| B. | 1 month s forward is at 0.11% premium |
| C. | 1 month s forward is at 1.27% discount |
| D. | 1 month s forward is at 0.11% discount |
| Answer» B. 1 month s forward is at 0.11% premium | |
| 25. |
There is a close link between the interest rates in two countries and the forward rate premium or discount. The theory about this is : |
| A. | Purchasing Power Parity |
| B. | Expectations Theory |
| C. | Covered Interest Arbitrage and interest Rate Parity |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 26. |
According to Fisher effect, the nominal rate is equal to the real interest rate plus an adjustment for ______________ |
| A. | FD Rate |
| B. | Spot Rate |
| C. | Inflation |
| D. | Premium |
| Answer» D. Premium | |
| 27. |
Credit Rating performs the function of credit risk evaluation reflecting the borrower s expected capability to repay the debt as per terms of issue. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 28. |
Among the following items which item is shown on the debit side of Adjusted Profit and Loss Account? |
| A. | Depreciation and other Non-cash Adjustments |
| B. | Appropriation of Profit |
| C. | Provision for Taxation |
| D. | All of the Above |
| Answer» E. | |
| 29. |
When an American Company acquires a division or unit of Indian company, the US is said to be a ______________ Country. |
| A. | Sending |
| B. | Receiving |
| C. | Promoting |
| D. | None of the above |
| Answer» B. Receiving | |
| 30. |
A facility of carrying forward the transaction from one settlement to another in BSE was called _______ |
| A. | Carry forward |
| B. | Badla |
| C. | Vayda |
| D. | Forward |
| Answer» C. Vayda | |
| 31. |
Non-cash adjustments like Depreciation, Preliminary Expenses and Goodwill Written off are shown on the debit side of which account? |
| A. | Balance Sheet |
| B. | Funds Flow Statement |
| C. | Adjusted Profit and Loss Account |
| D. | Working Capital Statement |
| Answer» D. Working Capital Statement | |
| 32. |
When a part of the Fixed Assets is sold during the year, the Profit on sale is shown on the credit side of which Account? |
| A. | Adjusted Profit and Loss Account |
| B. | Profit and Loss Account |
| C. | Fixed Assets Accounts |
| D. | Liabilities Accounts |
| Answer» B. Profit and Loss Account | |
| 33. |
The Rate of Exchange applicable for delivery of Foreign Exchange at a future date is called ______ |
| A. | Spot Rate |
| B. | Current Rate |
| C. | Forward Rate |
| D. | Expected Rate |
| Answer» D. Expected Rate | |
| 34. |
The Funds Flow and Cash Flow statements fail to give a clear idea about profitability of the company. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 35. |
The act of arbitrage that involves three foreign currencies involving three different foreign exchange market is called __________ |
| A. | Geographical Arbitrage |
| B. | Triangular Arbitrage |
| C. | Cross Arbitrage |
| D. | None of the Above |
| Answer» C. Cross Arbitrage | |
| 36. |
The current spot rate for the Euro is Rs. 86,the expected inflation rate is 5 in India and 3 in Europe. What is the expected Spot Rate of Euro one year hence? |
| A. | Rs. 87.67/Euro |
| B. | Rs. 84.36/Euro |
| C. | Rs. 86/Euro |
| D. | Rs. 93/Euro |
| Answer» B. Rs. 84.36/Euro | |
| 37. |
Is it necessary for an organization to own 100 % of an overseas firm for its investment to be classified as an FDI? |
| A. | Yes |
| B. | No |
| C. | none |
| D. | none |
| Answer» C. none | |
| 38. |
ICRA was promoted by _____________ jointly with other leading investment institutions, commercial banks and financial service companies. |
| A. | ICICI |
| B. | IFCI |
| C. | IDBI |
| D. | LIC |
| Answer» C. IDBI | |
| 39. |
A statement demonstrating the movement of funds into and out of the business during the course of accounting period is known as ___________ |
| A. | Cash Flow Statement |
| B. | Fund Flow Statement |
| C. | Adjusted Profit & Loss Statement |
| D. | Statement of changes in Working Capital |
| Answer» C. Adjusted Profit & Loss Statement | |
| 40. |
Which of the following rules stands true while preparation of Schedule of changes in workingcapital?1) An increase in current assets increases working capital.2) An increase in current assets decreases working capital.3) An increase in current liabilities decreases working capital.4) An increase in current liabilities increases working capital |
| A. | 1 and 3 |
| B. | 1 and 4 |
| C. | 2 and 4 |
| D. | 1, 2,3 and 4 |
| Answer» B. 1 and 4 | |
| 41. |
There are basically two approaches to find out NPV of a foreign based project s capital budgeting exercise. Which are those two? |
| A. | Home Currency and foreign currency approaches |
| B. | One Currency and Multi Currency Approaches |
| C. | Home Country and Foreign Country Approaches |
| D. | None of the Above |
| Answer» B. One Currency and Multi Currency Approaches | |
| 42. |
Any change in the Current assets is positively correlated to the change in working capital |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 43. |
Which Stock Exchange of India was the first to grant permission to brokers for internet trading? |
| A. | National Stock Exchange |
| B. | Bombay Stock Exchange |
| C. | Ahmedabad Stock Exchange |
| D. | Kolkata Stock Exchange |
| Answer» B. Bombay Stock Exchange | |
| 44. |
One of the features of Capital Market is Ready and Continuous market which provides _____________ to the investors. |
| A. | Safety |
| B. | Long term Guarantee |
| C. | Liquidity |
| D. | None of the above |
| Answer» D. None of the above | |
| 45. |
Which Money Market instrument is a time deposit of specific maturity and issued in bearer form? |
| A. | Commercial Paper |
| B. | Commercial Bill |
| C. | Certificate of Deposit |
| D. | Call Money |
| Answer» D. Call Money | |