MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Mr. Manoj is buying shares in a mutual fund that invests in companies that are all withinthe 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. | |
| 2. |
………………or liberalization aim at creating market oriented competitivefinancial system. |
| A. | Financial Reforms |
| B. | integration |
| C. | financial repression |
| D. | None of these |
| Answer» B. integration | |
| 3. |
The process of selling trade debts of a client to a financial intermediary is called ——— |
| A. | Bill discounting |
| B. | Factoring |
| C. | Securitisation |
| D. | Materialisation |
| Answer» C. Securitisation | |
| 4. |
ETF stands for…………….. |
| A. | Exchange traded funds |
| B. | Expensive Transactional Fund |
| C. | Executive traded fun |
| D. | No load fund |
| Answer» B. Expensive Transactional Fund | |
| 5. |
Housing loan sanctioned to pay off an old housing loan at a higher rate ofinterest and enjoy a new one at a lower rate is called: |
| A. | Conversion loan |
| B. | Flexible installment loan |
| C. | Transfer plan loan |
| D. | Refinance loan |
| Answer» D. Refinance loan | |
| 6. |
Under “securitisation process”, ---------- are instruments which issued subsidiarycompany in respect of receivables of holding or parent company |
| A. | Pass through certificate |
| B. | Pay through certificate |
| C. | Preferred stock certificate |
| D. | None of these |
| Answer» D. None of these | |
| 7. |
The additional debt instrument or equity instruments of publically tradedfirm are included in the markets classified as – |
| A. | flow market |
| B. | primary market |
| C. | secondary markets |
| D. | derivative market |
| Answer» C. secondary markets | |
| 8. |
In the private sector, ------------ plays a dominant role in housing finance. |
| A. | ICICI |
| B. | HDFC |
| C. | DHFL |
| D. | LICHFL |
| Answer» C. DHFL | |
| 9. |
............ is a product whose value is derived from the value of underlying asset |
| A. | Repo |
| B. | T-bills |
| C. | G.sec |
| D. | Derivatives |
| Answer» E. | |
| 10. |
A market for existing financial securities that are currently traded between investors iscalled the____________ market |
| A. | Fundamental. |
| B. | Efficient. |
| C. | Secondary. |
| D. | Primary. |
| Answer» D. Primary. | |
| 11. |
-------- certificate under securitisation have single maturity structure. |
| A. | Pass through certificate |
| B. | Pay through certificate |
| C. | Preferred stock certificate |
| D. | Principle only certificate |
| Answer» B. Pay through certificate | |
| 12. |
Financial services offered financing risk project e.g. Risk capital scheme ofI F C I venture capital fund of I D F I etc. to provide ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Seed capital |
| B. | Venture capital |
| C. | Primary fund |
| D. | secondary fund. |
| Answer» C. Primary fund | |
| 13. |
Funds that can sell and buy units at any point in the time are known as …….. |
| A. | open end fund |
| B. | Surplus |
| C. | Closed end fund |
| D. | No load fund |
| Answer» B. Surplus | |
| 14. |
‐‐‐‐‐‐‐‐‐‐‐‐‐ is a financial intermediary who helps to mobilize and transfercapital from those who possess it to those who need it. |
| A. | Lease finance |
| B. | Venture capital |
| C. | Merchant banker |
| D. | hire purchaser . |
| Answer» C. Merchant banker | |
| 15. |
“India Card” was introduced by |
| A. | Central Bank of India |
| B. | Bank of India |
| C. | Indian Overseas bank |
| D. | SBI |
| Answer» C. Indian Overseas bank | |
| 16. |
Income-cum- growth fund is also known as................. |
| A. | Balanced fund |
| B. | Nest eggs |
| C. | Open ended fund |
| D. | Long haul |
| Answer» B. Nest eggs | |
| 17. |
Financial intermediaries’ _________. |
| A. | Solve some of the problems associated with asymmetric information. |
| B. | Decrease transaction costs for borrowers and lenders |
| C. | Allow borrowers and lenders to engage in risk sharing |
| D. | All of the above |
| Answer» E. | |
| 18. |
Discounting of bills of exchange is an attractive ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basedfinancial service provided by the finance companies. |
| A. | Fee |
| B. | Fund |
| C. | Opinion |
| D. | Capital. |
| Answer» C. Opinion | |
| 19. |
The ‘………….. ’ is a term associated with ZBB, and refers to an analysis ofeach discrete activity, according to cost and purpose. |
| A. | Decision Package |
| B. | Zero budgeting Plan |
| C. | Accountancy |
| D. | Short Sales |
| Answer» B. Zero budgeting Plan | |
| 20. |
Zero-based budgeting addresses such problems that can take place with……………. rolling budgets. |
| A. | Conventional |
| B. | Non conventional |
| C. | budging |
| D. | none of these |
| Answer» B. Non conventional | |
| 21. |
As a discipline to be one of the most important element in the businessworld where money is almost everything. |
| A. | Accounting |
| B. | Standardizing |
| C. | Recording |
| D. | none of these |
| Answer» B. Standardizing | |
| 22. |
…………….banks can borrow from the Reserve Bank of India based on the eligible securities or get the financial assistance in times of need by rediscounting bills of Exchange. |
| A. | Scheduled Banks |
| B. | Organised Banks |
| C. | Scheduled Banks |
| D. | none of these |
| Answer» B. Organised Banks | |
| 23. |
Under “securitisation process”, original borrower is known as; |
| A. | SPV |
| B. | Obligor |
| C. | Originator |
| D. | Credit enhancer |
| Answer» C. Originator | |
| 24. |
Debt instruments are issued by corporate houses for raising short termfinancial resources from money market are called as …………….. |
| A. | Commercial Paper |
| B. | Certificate of deposits |
| C. | . treasury bill |
| D. | hybrid |
| Answer» B. Certificate of deposits | |
| 25. |
------- is referred as both fund based and fee based financial service. |
| A. | Hire purchase |
| B. | Leasing |
| C. | Factoring |
| D. | Underwriting |
| Answer» E. | |
| 26. |
A merchant banker can claim a charge —————% as the commission for the wholeissue. |
| A. | 5 |
| B. | 10 |
| C. | 2.5 |
| D. | 0.5 |
| Answer» E. | |
| 27. |
------------ fund is invested in those companies whose share prices are far below theirreal worth |
| A. | Theme fund |
| B. | Contra fund |
| C. | Fund of fund |
| D. | Bond fund |
| Answer» C. Fund of fund | |
| 28. |
The RBI was nationalized by the Reserve Bank (amendment ) …………... |
| A. | Act 1948 |
| B. | . Act 1932 |
| C. | Act 1962 |
| D. | Act 1963 |
| Answer» B. . Act 1932 | |
| 29. |
Kerala State Financial Enterprises ltd (KSFE) is an example of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | State level development banks |
| Answer» D. State level development banks | |
| 30. |
The basic function of…………are to accept to deposits, lend money and actas collection and paying agents. |
| A. | Banks |
| B. | . Non Banking Institutes |
| C. | Sock exchange |
| D. | Brokers |
| Answer» B. . Non Banking Institutes | |
| 31. |
The entire lease rental is treated as........ in the books of lessor |
| A. | Expense |
| B. | Income |
| C. | Receivable |
| D. | Capital |
| Answer» C. Receivable | |
| 32. |
Which of the following is tripartite system? |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Swap lease |
| Answer» D. Swap lease | |
| 33. |
Type of debt instrument which permit investors to switch between two types of securities. |
| A. | Swap |
| B. | Option |
| C. | Flip-Flop notes |
| D. | ECU bonds |
| Answer» D. ECU bonds | |
| 34. |
Which of the following assets is most liquid?. |
| A. | 2 year Treasury bonds |
| B. | Shares of common stock |
| C. | Passbook savings accounts. |
| D. | Gold bars |
| Answer» D. Gold bars | |
| 35. |
Budgeting requires eliminating redundant expenditure that no longer servesany clearly defined purpose. |
| A. | Zero based |
| B. | Open end |
| C. | Financial |
| D. | none of these |
| Answer» B. Open end | |
| 36. |
Role of merchant bankers ‐‐‐‐‐‐‐‐. |
| A. | Mobilization of funds |
| B. | Promotional function |
| C. | Innovation |
| D. | All of these. |
| Answer» E. | |
| 37. |
Which of the ffollowing is / are the methods of venture financing? |
| A. | Equity |
| B. | Conditional loan |
| C. | Income note |
| D. | All of these |
| Answer» E. | |
| 38. |
SEBI stands for ………………. |
| A. | security exchange board of India |
| B. | State Bank of India |
| C. | sate electronic board of India |
| D. | none of the above |
| Answer» B. State Bank of India | |
| 39. |
Principal functions of SIDBI: |
| A. | Promotion of SSI |
| B. | Finance of SSI |
| C. | Development of SSI |
| D. | All the above |
| Answer» E. | |
| 40. |
…………… banks aims to increase the flow of credit and availability ofbanking facilities to Rural areas and to the poorer section of the rural population. |
| A. | Regional Rural Banks |
| B. | Organised Banks |
| C. | Scheduled Banks |
| D. | Cooperative Banks |
| Answer» B. Organised Banks | |
| 41. |
“EDI” in EDIFACTORING stands for |
| A. | Economic Deposit insurance |
| B. | Electronic Data interchange |
| C. | Export Division insurance |
| D. | None of these |
| Answer» C. Export Division insurance | |
| 42. |
Consumer loans are granted for |
| A. | Long period |
| B. | Medium period |
| C. | Short period |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 43. |
A scheduled bank carrying on …………….. |
| A. | commercial activity |
| B. | financial activity |
| C. | banking activity |
| D. | none of the above |
| Answer» B. financial activity | |
| 44. |
In capital markets the major suppliers of trading instruments are— |
| A. | government and corporation |
| B. | liquid corporation |
| C. | instrumental corporation |
| D. | Private Institutes |
| Answer» B. liquid corporation | |
| 45. |
................ is more or less similar to “Consortium financing”. |
| A. | Merchant banking |
| B. | Retail banking |
| C. | Whole sale banking |
| D. | Loan syndication |
| Answer» E. | |
| 46. |
The difference between open-end and closed-end mutual funds is: |
| A. | The total number of shares under management grows and shrinks for open-end funds, but is fixed for closed-end funds |
| B. | Open-end funds can be purchase in a variety of international markets while closed- end funds can only be purchased in their home market |
| C. | The total number of shares under management grows and shrinks for closed-end funds, but is fixed for open-end funds |
| D. | Open-end funds contain securities from various countries while closed-end funds |
| Answer» D. Open-end funds contain securities from various countries while closed-end funds | |
| 47. |
SFC is an example of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | Development Institution |
| Answer» E. | |
| 48. |
The markets which attracts funds in large volume and from all types ofinvestors are called as ………… |
| A. | Broad financial market |
| B. | Money Market |
| C. | Organised |
| D. | Unorganised |
| Answer» B. Money Market | |
| 49. |
The features of hire purchase: |
| A. | The possession of goods is given to the buyer immediately. |
| B. | The ownership in the goods remains with the vendor till the last installment is paid. |
| C. | The seller can repossess the goods in case of default in payment . |
| D. | All of these. |
| Answer» E. | |
| 50. |
Credit card facility is a better example of |
| A. | Revolving credit |
| B. | Cash loan |
| C. | Secured credit |
| D. | Fixed credit |
| Answer» B. Cash loan | |