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. |
Retail banking is confined to ............... customers |
| A. | Corporate |
| B. | Firm |
| C. | Individual |
| D. | Individual and corporate |
| Answer» D. Individual and corporate | |
| 2. |
............ lease is for a limited period |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Swap lease |
| Answer» C. Leverage lease | |
| 3. |
The minimum net worth for the first category of merchant banker is Rs. ————— |
| A. | 2 crore |
| B. | 5 crore |
| C. | 1crore |
| D. | 10 crore |
| Answer» D. 10 crore | |
| 4. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is needed for product development and initialmarketing. |
| A. | seed capital |
| B. | Startup capital |
| C. | first round financing |
| D. | None of these. |
| Answer» C. first round financing | |
| 5. |
------ is the venture capital assistance at the stage where the project started to fetch profitbut not reached in its full efficiency |
| A. | Start up capital |
| B. | Mezzanine capital |
| C. | Bridge capital |
| D. | Seed capital |
| Answer» C. Bridge capital | |
| 6. |
Canara bank’s housing finance subsidiary is.......... |
| A. | Can HFL |
| B. | CHFL |
| C. | Can Fin Homes ltd |
| D. | CBHFL |
| Answer» D. CBHFL | |
| 7. |
Merchant bank can help an organization specifically in promotionalfunctions, ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Sponsoring the issue |
| B. | Marketing |
| C. | None of these |
| D. | All of these. |
| Answer» E. | |
| 8. |
The…………..has economic significance and social purpose. |
| A. | Insurance industry |
| B. | Financial banks |
| C. | mutual fund |
| D. | Underwriting |
| Answer» B. Financial banks | |
| 9. |
Housing advances are ................. in nature |
| A. | Short term |
| B. | Medium term |
| C. | Long term |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 10. |
Which of the following is /are example of Secondary or indirect financial instrument |
| A. | Equity shares |
| B. | Preference shares |
| C. | Post office saving deposit |
| D. | Bonds |
| Answer» D. Bonds | |
| 11. |
Yankee bonds are raised in.......... |
| A. | USA |
| B. | UK |
| C. | Japan |
| D. | India |
| Answer» B. UK | |
| 12. |
………………appears to have an important role in the restructuring andliquidation of companies that are in distress. |
| A. | Financial Intermediary |
| B. | Financial Instruments |
| C. | Organised Market |
| D. | Firm’s Assets |
| Answer» B. Financial Instruments | |
| 13. |
The baking sector is the most important part of the……….and it promoteseconomic development of the country. |
| A. | financial system |
| B. | Financial Procedure |
| C. | Technology |
| D. | Underwriting |
| Answer» B. Financial Procedure | |
| 14. |
Consumer loans are granted for-----------period. |
| A. | Medium |
| B. | Short |
| C. | Long |
| D. | Both long and medium |
| Answer» C. Long | |
| 15. |
A main factor contributing to the failure of zero-based budgeting has beendue to too much of……………..involved in the procedure. |
| A. | Paper work |
| B. | Computerized work |
| C. | Manual Work |
| D. | none of these |
| Answer» B. Computerized work | |
| 16. |
In mutual fund, ELSS stands for |
| A. | Entry to Limited Subscribers Scheme |
| B. | Equity Linked Saving Scheme |
| C. | Entry Load for Saving Scheme |
| D. | None of these |
| Answer» C. Entry Load for Saving Scheme | |
| 17. |
The saving banks, insurance companies, mutual funds and commercialbanks are all examples of – |
| A. | Non-financial institutions |
| B. | derivative institutions |
| C. | financial institutions |
| D. | banking institutes. |
| Answer» D. banking institutes. | |
| 18. |
----------- is a tripartite lease arrangement |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Sale and lease back |
| Answer» D. Sale and lease back | |
| 19. |
In................., Lessor fulfils servicing function |
| A. | Operating lease |
| B. | Swap lease |
| C. | Financial lease |
| D. | Balloon lease |
| Answer» B. Swap lease | |
| 20. |
Under forfaiting the client is able to get credit facility to the extent of ____________. |
| A. | 100 % of the value of the export bill |
| B. | 80% of the value of the export bill. |
| C. | 75% of the value of the export bill |
| D. | 90% of the value of the export bill |
| Answer» B. 80% of the value of the export bill. | |
| 21. |
In ............... lease, leasing company assumes risk of obsolescence. |
| A. | Financial lease |
| B. | Operating lease |
| C. | Leverage lease |
| D. | Cross boarder lease |
| Answer» C. Leverage lease | |
| 22. |
The idea of providing factoring services was first thought of in India by ————— |
| A. | Tandem Committee |
| B. | Malhotra committee |
| C. | Vaghul committee |
| D. | None of these |
| Answer» D. None of these | |
| 23. |
In hire purchase, till the payment of last instalment, amount paid by hirer is treated as |
| A. | Rent |
| B. | interest |
| C. | cash price |
| D. | all of these |
| Answer» B. interest | |
| 24. |
Forfeiter determines ………..risk & risk. |
| A. | Country & Credit |
| B. | Factors & the Purchaser |
| C. | Cash & Banks |
| D. | None of these |
| Answer» B. Factors & the Purchaser | |
| 25. |
V C Fs of specialized financial institution promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Central government |
| B. | RBI |
| C. | state government |
| D. | None of these. |
| Answer» B. RBI | |
| 26. |
Apex institution set up to deal in housing finance is |
| A. | HDFC |
| B. | NHB |
| C. | HUDCO |
| D. | None of these |
| Answer» C. HUDCO | |
| 27. |
The commercial banking system in India consists………….&…………. |
| A. | Scheduled & Unscheduled Banks |
| B. | Bank & Non Banking Institutions |
| C. | Organised & unorganized Banks |
| D. | none of these |
| Answer» B. Bank & Non Banking Institutions | |
| 28. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a fund based financial service, provides resources of finance receivable as well as facilities the collection of receivables. |
| A. | Leasing |
| B. | hedge finance |
| C. | Merchant banker |
| D. | Factoring. |
| Answer» E. | |
| 29. |
............... supplies machinery to small scale industries under hire purchase system. |
| A. | IDBI |
| B. | SIDMI |
| C. | NSIC |
| D. | DIC |
| Answer» D. DIC | |
| 30. |
Venture capital is originated in ————— |
| A. | India |
| B. | France |
| C. | Britain |
| D. | USA |
| Answer» E. | |
| 31. |
“Confidential invoice discounting” is another name of |
| A. | Maturity factoring |
| B. | Disclosed factoring |
| C. | Undisclosed factoring |
| D. | Notified factoring |
| Answer» D. Notified factoring | |
| 32. |
__ was not nationalized in 1969: |
| A. | Punjab National Bank |
| B. | Oriental Bank of commerce |
| C. | Bank of Baroda |
| D. | Union Bank of India |
| Answer» C. Bank of Baroda | |
| 33. |
Which one of the following is a short term debt instrument?. |
| A. | Preferred stock certificate |
| B. | Pass through certificate |
| C. | Asset based commercial certificate |
| D. | Principal only certificate |
| Answer» B. Pass through certificate | |
| 34. |
The value of the mutual fund's portfolio minus the mutual fund's liabilities divided bythe number of shares outstanding is called the:. |
| A. | Book value |
| B. | Outstanding balance |
| C. | Per share value |
| D. | Net asset value. |
| Answer» E. | |
| 35. |
If funds sells securities that have increased price the fund has………….. Gain. |
| A. | capital gain |
| B. | Surplus |
| C. | over gain |
| D. | loss of profit policy |
| Answer» B. Surplus | |
| 36. |
The company which sets up a mutual fund is called ————— |
| A. | Fund company |
| B. | Sponsor |
| C. | Originator |
| D. | Obligator |
| Answer» C. Originator | |
| 37. |
Pre‐issue management activities include:‐ |
| A. | Lead manager |
| B. | Underwriting |
| C. | Overall supervision |
| D. | None of these. |
| Answer» E. | |
| 38. |
Association of mutual fund in India was incorporated on… |
| A. | 22nd Aug 1995 |
| B. | 23rd Aug 1996 |
| C. | 28th Aug 1995 |
| D. | 22nd Jan 1995 |
| Answer» B. 23rd Aug 1996 | |
| 39. |
………………….. means financial transaction where exporter sells hisaccounts receivables to the 3rd party @a lesser rate in exchange for instant cash. |
| A. | Factoring |
| B. | Surplus |
| C. | Mutual Fund |
| D. | Interest |
| Answer» B. Surplus | |
| 40. |
Pure growth fund is also known as |
| A. | Nest eggs |
| B. | Balanced fund |
| C. | Leverage fund |
| D. | Stop gap arrangement |
| Answer» B. Balanced fund | |
| 41. |
UTI, LIC etc are examples of |
| A. | Banking institution |
| B. | Investment institution |
| C. | NBFI |
| D. | Development banks |
| Answer» C. NBFI | |
| 42. |
In …………………this case the issue is underwritten by two or moreunderwriters jointly. |
| A. | joint underwriting |
| B. | sub underwriting |
| C. | syndicate underwriting |
| D. | firm underwriting |
| Answer» B. sub underwriting | |
| 43. |
The inflation free instrument is _____________. |
| A. | Option bond |
| B. | Variable rate bond |
| C. | Index-linked guilt bond |
| D. | Deep discount bond |
| Answer» D. Deep discount bond | |
| 44. |
The key benefit is that serves to concentrate attention on the…………… |
| A. | Zero based budgeting |
| B. | Activity based badgeting |
| C. | Value preposition budgeting |
| D. | none of these |
| Answer» B. Activity based badgeting | |
| 45. |
In hire purchase depreciation can be claimed by the |
| A. | Hirer |
| B. | Vendor |
| C. | Financiers |
| D. | All of these |
| Answer» B. Vendor | |
| 46. |
The corpus of funds and its duration is fixed in case of ------- fund |
| A. | Open ended |
| B. | Balanced |
| C. | Close ended |
| D. | Income fund |
| Answer» D. Income fund | |
| 47. |
……….. …..is define as the market value of Mutual Fund Scheme’s assets net of its Liability. |
| A. | NAV |
| B. | OVTCE |
| C. | SWAP |
| D. | loss of profit policy |
| Answer» B. OVTCE | |
| 48. |
CIBIL stands for............ |
| A. | Credit Information Bureau of India ltd |
| B. | Central investment Board of India Ltd |
| C. | Credit and Investment Bureau of India ltd |
| D. | None of these |
| Answer» B. Central investment Board of India Ltd | |
| 49. |
The type of financial markets in which the corporation issues new funds toraise funds is classified as |
| A. | flow market |
| B. | primary market |
| C. | secondary market |
| D. | Money market |
| Answer» C. secondary market | |
| 50. |
Under factoring the factor acts in the capacity of |
| A. | an agent of his client, |
| B. | a trustee, |
| C. | a holder for value, |
| D. | An administrator. |
| Answer» D. An administrator. | |