MCQOPTIONS
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MCQOPTIONS
This section includes 120 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. |
. this market is dominated by government, banks, and financial institutions. |
| A. | money market |
| B. | Capital Market |
| C. | Organised Market |
| D. | Unorganised |
| Answer» B. Capital Market | |
| 2. |
Indian Financial System consists of financial market, .. and Financial intimidation. |
| A. | financial instrument |
| B. | services |
| C. | underwriters |
| D. | derivatives. |
| Answer» B. services | |
| 3. |
.. can be defined as the market in which financial assets are created or transferred. |
| A. | Financial Market |
| B. | financial service |
| C. | Financial Instruments |
| D. | head Offices. |
| Answer» B. financial service | |
| 4. |
Debt instruments are issued by corporate houses for raising short term financial resources from money market are called as .. |
| A. | Commercial Paper |
| B. | Certificate of deposits |
| C. | . treasury bill |
| D. | hybrid |
| Answer» B. Certificate of deposits | |
| 5. |
appears to have an important role in the restructuring and liquidation of companies that are in distress. |
| A. | Financial Intermediary |
| B. | Financial Instruments |
| C. | Organised Market |
| D. | Firm s Assets |
| Answer» B. Financial Instruments | |
| 6. |
or liberalization aim at creating market oriented competitive financial system. |
| A. | Financial Reforms |
| B. | integration |
| C. | financial repression |
| D. | None of these |
| Answer» B. integration | |
| 7. |
..banking is the development of banking from commerce which frequently encountered a prolonged intermediate. |
| A. | Merchant |
| B. | Money bankers |
| C. | Non Banking Institutes |
| D. | Unauthorized |
| Answer» B. Money bankers | |
| 8. |
An outstanding development in this sphere was the conversion of the |
| A. | Industrial Finance Corporation |
| B. | Non banking financial Institutes |
| C. | Insurance Companies |
| D. | None of the above |
| Answer» B. Non banking financial Institutes | |
| 9. |
The bonds issued by the DFIs were no longer eligible as .assets for banks. |
| A. | SLR |
| B. | NSE |
| C. | IFCI |
| D. | DFIs |
| Answer» B. NSE | |
| 10. |
is keeps the safe custody of the valuables of customers or clients or investors. |
| A. | Custodian |
| B. | Registrar |
| C. | Trader |
| D. | Institutes |
| Answer» B. Registrar | |
| 11. |
The factors which had adversely affected the profitability of the banking system were partly external is termed as |
| A. | macro policy environment |
| B. | staffing and branch spread |
| C. | promoting savings |
| D. | none of the above |
| Answer» B. staffing and branch spread | |
| 12. |
The factors which had adversely affected the profitability of the banking system were partly internal is termed as |
| A. | staffing and branch spread |
| B. | macro policy environment |
| C. | promoting savings |
| D. | none of the above |
| Answer» B. macro policy environment | |
| 13. |
The present structure consists of domestic mutual funds sponsored by the |
| A. | UTI |
| B. | LIC |
| C. | NFCs |
| D. | IFS |
| Answer» B. LIC | |
| 14. |
Combination of forwards by two counterparties with opposite but matching need is called |
| A. | Swap |
| B. | Option |
| C. | Forwa |
| Answer» B. Option | |
| 15. |
A combination of forwards by two counterparties with opposite but matching need is called:. |
| A. | Swap |
| B. | Option |
| C. | Forwa |
| Answer» B. Option | |
| 16. |
refers to the load changed to an investors when he /she enters into a scheme. |
| A. | Entry load |
| B. | Surplus |
| C. | Closed end fund |
| D. | No load fund |
| Answer» B. Surplus | |
| 17. |
Under securitisation, selected pool of assets are passed through , for converting them into securities, to another institution called:. |
| A. | Originator. |
| B. | Special purpose vehicle |
| C. | Credit rating company |
| D. | Servicing agent. |
| Answer» C. Credit rating company | |
| 18. |
accounting is a financial reporting process which records the results of inflation on the financial statement that a firm prepare and published at the end of the financial year. |
| A. | Inflation |
| B. | Corporate |
| C. | Management |
| D. | Bank |
| Answer» B. Corporate | |
| 19. |
Mr. Manoj is buying shares in a mutual fund that invests in companies that are all within the same industry. What type of mutual fund has he purchased? |
| A. | A sector fund |
| B. | A small cap fund. |
| C. | An index fu |
| Answer» B. A small cap fund. | |
| 20. |
The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is called the:. |
| A. | Book value |
| B. | Outstanding balance |
| C. | Per share value |
| D. | Net asset value. |
| Answer» E. | |
| 21. |
The type of market in which securities with less than one year maturity are traded is classified as |
| A. | money market |
| B. | capital market |
| C. | global market |
| D. | Stock exchange. |
| Answer» B. capital market | |
| 22. |
The sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of ________. |
| A. | Credit enhancement |
| B. | Securitization. |
| C. | Unbundling |
| D. | Derivatives. |
| Answer» C. Unbundling | |
| 23. |
The additional debt instrument or equity instruments of publically traded firm are included in the markets classified as |
| A. | flow market |
| B. | primary market |
| C. | secondary markets |
| D. | derivative market |
| Answer» C. secondary markets | |
| 24. |
The type of structured market through which the funds flow with the help of financial instruments such as bond and stock is classified as |
| A. | financial market |
| B. | funds market |
| C. | flow market |
| D. | capital market |
| Answer» B. funds market | |
| 25. |
In foreign financial markets , the growth is represented by the factors such as -- |
| A. | saving in foreign countries |
| B. | investment opportunity |
| C. | a & b |
| D. | none of these |
| Answer» D. none of these | |
| 26. |
The type of financial security which have linked payoff to another issued security is classified as |
| A. | linked security |
| B. | derivative security |
| C. | payable security. |
| D. | receivables |
| Answer» C. payable security. | |
| 27. |
The market in which transactions are done through computers and telephone without any specific location are classified as ---- |
| A. | past counter |
| B. | future counter market |
| C. | over the counter markets |
| D. | None of these |
| Answer» D. None of these | |
| 28. |
The means by which individuals hold their claims on real assets in a well-developed economy are ___________. |
| A. | Investment assets |
| B. | Depository assets |
| C. | Derivative assets |
| D. | Financial assets |
| Answer» E. | |
| 29. |
The predetermined price at which an underlying asset has to be bought or sold in an option contract is called ________. |
| A. | Option price. |
| B. | Exercise price |
| C. | Spot price |
| D. | Future price |
| Answer» C. Spot price | |
| 30. |
The predetermined price at which an underlying asset has to be bought or sold in. an option contract is called ________. |
| A. | Option price. |
| B. | Exercise price |
| C. | Spot price |
| D. | Future price |
| Answer» C. Spot price | |
| 31. |
When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as : |
| A. | Term Deposit |
| B. | Demand Deposit |
| C. | Bond |
| D. | Mortgage |
| Answer» B. Demand Deposit | |
| 32. |
Funds that can sell a fixed number of units only during the new fund offer period are called as |
| A. | Closed end fund |
| B. | Surplus |
| C. | Open end fund |
| D. | No load fund |
| Answer» B. Surplus | |
| 33. |
The number of lead merchant bankers may not exceeds in case any issue of , issue size less than Rs.50crore,number of MBs . |
| A. | 1 |
| B. | 3 |
| C. | 2 |
| D. | 4. |
| Answer» D. 4. | |
| 34. |
The number of lead merchant bankers may not exceed in case any issue of, issue size 200crore to 400crore. |
| A. | 4 |
| B. | 3 |
| C. | 6 |
| D. | 5. |
| Answer» E. | |
| 35. |
A merchant banker can claim a charge % as the commission for the whole issue. |
| A. | 5 |
| B. | 10 |
| C. | 2.5 |
| D. | 0.5 |
| Answer» E. | |
| 36. |
The ability of an asset to be converted into cash very quickly is classified as |
| A. | derivative security markets |
| B. | convertible securities |
| C. | liquidity |
| D. | fixed |
| Answer» D. fixed | |
| 37. |
The basic function of are to accept to deposits, lend money and act as collection and paying agents. |
| A. | Banks |
| B. | . Non Banking Institutes |
| C. | Sock exchange |
| D. | Brokers |
| Answer» B. . Non Banking Institutes | |
| 38. |
The are financial intermediate that collect and invest large amount of premiums. |
| A. | Insurance Companies |
| B. | non banking Institutes |
| C. | Stock Exchange |
| D. | SEBI |
| Answer» B. non banking Institutes | |
| 39. |
..are encouraged, both in public and private sectors and they have been permitted to invest overseas. |
| A. | Mutual Funds |
| B. | Shares |
| C. | Capital |
| D. | Investments |
| Answer» B. Shares | |
| 40. |
In primary markets the property of shares which made it easy to sell newly issued security is considered as |
| A. | increased liquidity |
| B. | decreased liquidity |
| C. | money flow |
| D. | Surplus |
| Answer» B. decreased liquidity | |
| 41. |
Commercial banks differ from other businesses in that both their assets and their liabilities are mostly ________. |
| A. | Illiquid |
| B. | Financial. |
| C. | Real. |
| D. | Owned by the government |
| Answer» C. Real. | |
| 42. |
In the implementation stage of a project, venture capital firms provide finance |
| A. | Mezzanine finance |
| B. | Seed finance |
| C. | Start up |
| D. | All of these |
| Answer» D. All of these | |
| 43. |
The process of managing the sales ledger of a client by a financial service company is called factoring |
| A. | Factoring |
| B. | Forfaiting |
| C. | Bill discounting |
| D. | None of these |
| Answer» B. Forfaiting | |
| 44. |
Housing loan sanctioned to redeem prior debts obtained from friends for the purchase of a house is called loan. |
| A. | Conversion |
| B. | Flexible installment |
| C. | Refinance |
| D. | Renovation |
| Answer» D. Renovation | |
| 45. |
............. is the design, the development and the implementation of innovative financial instruments and processes and the formulation of creative solutions to problem of finance. |
| A. | financial services |
| B. | financial inclusion |
| C. | financial engineering |
| D. | financial innovation |
| Answer» D. financial innovation | |
| 46. |
banks were establishment mainly due to the development of trade with our countries. |
| A. | Foreign Banks |
| B. | Organised Banks |
| C. | Scheduled Banks |
| D. | none of these |
| Answer» B. Organised Banks | |
| 47. |
The baking sector is the most important part of the .and it promotes economic development of the country. |
| A. | financial system |
| B. | Financial Procedure |
| C. | Technology |
| D. | Underwriting |
| Answer» B. Financial Procedure | |
| 48. |
A system of zero-based budgeting was first introduced formally in the United States Department of Agriculture in preparing its budget. |
| A. | Fiscal year |
| B. | Leap Year |
| C. | Academic Year |
| D. | Draconic year |
| Answer» B. Leap Year | |
| 49. |
The second approach in the application of Zero-based Budgeting (ZBB) is to identify and remove duplication or expenditure. |
| A. | Multiplication |
| B. | Divided |
| C. | Adding |
| D. | triple |
| Answer» B. Divided | |
| 50. |
Zero-based budgeting was introduced for the first time in a government system by .. |
| A. | Jimmy Carter |
| B. | F.W.Tailor |
| C. | Robert Shiller |
| D. | Abhijit Banarjee |
| Answer» B. F.W.Tailor | |