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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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 Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort. YAHOO! GROUPS LINKS Visit your group "SCDL_PGDBA_Finance_2004" on the web. To unsubscribe from this group, send an email to:
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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
24 24 24 24 24 26 26 28 28 29 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
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
54 54 54 54 54 55 55 55 55 56 56 56 57 57 57 57 58 58 59 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
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
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 93 93 93 93 94 96 98 99 99 99 100 102 102 103 104 104 109 109 113
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
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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 Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort. YAHOO! GROUPS LINKS Visit your group "SCDL_PGDBA_Finance_2004" on the web. To unsubscribe from this group, send an email to:
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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 Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort. YAHOO! GROUPS LINKS Visit your group "SCDL_PGDBA_Finance_2004" on the web. To unsubscribe from this group, send an email to:
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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
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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 :-
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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
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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 :-
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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 :-
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
14 14 14 14 15 15 17 19 21 23 25 25 25 25 25 25 25 25 26 26 26 27 27 29 29 30 30 30 31 31 32 32 32 32 33 35 35 36 36 36 36 36 37 37 38 38 38 38
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
39 39 39 40 40 40 40 45 46 47 47 50 50 50 51 51 51 52 52 52 52 53 53 53 54 54 54 55 55 56 56 57 58 58 58 58 59 59 59 61 61 61 61 61 62 62 66 66
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
67 67 68 68 68 68 68 69 69 69 69 69 69 69 73 74 74 74 74 74 77 79 79 80 82 82 82 82 82 84 84 87 92 92 92 93 93 94 94 95 95 95 95 96 98 99 100 101
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
103 103 104 106 106 106 106 106 106 107 107 107 109 111 112
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 , 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
International Finance ASSIGNMENTS
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer
Buffer Stock Facility
True/False Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar
Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in Eurobonds currency other than that of the country of issue
Eurobonds
Margin on future
Peformance bond or security deposit
Peformance bond or security deposit
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer
False
True/False Question
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer
Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier
Your Answer
True/False Question
Sharing risk of Non payment by the Syndicate of Banks giving loans
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer
True
True/False Question
There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade
Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer
An Irrevocable credit
True/False Question
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer
Question
What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount
Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Chapter – 1 – Introduction to international capital markets Euro currency ; domestic markets ; US Japan ; Switzerland ; UK ; Australia ; Canada ; European ; centers in ECU; Chapter – 2 – International Finance Markets - the U.S. dollar Market ; The U.S. Dollar Market ; The Japanese Yen Market ; The Sterling Market ; The Euro Market Has Been discussed in the next chapter ; Recent development in international Finance Markets ; Chapter – 3 – International Monetary and Financial System The country’s central ban agreed to buy back their currency at a certain rate of gold; Melting down of gold was freely allowed ; There was unrestricted movement of gold (i.e. import and / or export) The total money supply in the country was determined by the quantum of gold reserves in the country The international monetary fund ; quotas ; funding facilities ; regular facilities tranche policies ; restore Tranche credit Tranche ; extended arrangement (extended fund facility
1 5 – 10
13 – 14
15 – 17
(EEF) ; Standard Arrangement (enlarged Arrears Policy) Special facilities (compensatory and contingency financing facility (CCFF) Buffer stock Financing Facility ; Supplemental Reserve Policy (SRP); Reserve Tranche ; Credit Tranche ; Stand by arrangement ; Extended arrangement or extended fund facilities (EFF) special facilities ; CCFF ; Buffer stock financing Facility (BSFF) ; Supplemental resources facility (SRF) Enhanced structural adjustment facility (ESAF) The fixed exchange rate system Problems faced by the fixed exchange rate system ; failure of fixed rate system ; the European monetary system (EMS) ; Economic and monetary union ; Recent developments ; post – Maastricht developments; emergence of EURO The group of seven ; special drawing rights (SDRS) ; The liquidity problems (SDRS) ; the world bank group ; the world bank; international development agency (IDA) ; international finance corporation (IFC) ; The multinational investment Guarantee Agency (MIGA) Chapter – 4 – External commercial borrowing – country ; company ; Equity ; Fund raising ; underwriting ; hedging ; arbitraging ; note issuance facility ; Mechanism and documentation ; syndicated loans ; floating rate notes ; Flip – Flop FRN ; MIS – Mich FRN ; MINI Max FRN ; Capped FRNs, Perpetual FRNs; VRN structured FRNs; Terms and conditions of FRN Ero Commercial paper (ECP) ; ADRs and GDRs; GDR – Global depositary Receipts ; The roles of different parties involved in launching of GDR GDR – Global Depositary Receipts ; The roles of different parties involved in launching of GDR steps involved in issuance of GDR are as follows Pricing and Closing ; costs ; Advantages & Disadvantages of external commercial borrowing Chapter – 5 – Documents used in International Trade ; Regulatory requirements ; operational requirements ; commercial documents ; financial documents transport documents ; risk covering documents ; official / regulatory documents ; miscellaneous documents ; Commercial documents ; proforma invoice ; commercial invoice ; consular invoice customs invoice ; legalized invoice ; combined certificate of origin and value ; financial documents ; bill of exchange ; The second of the same tenor and date unpaid ; the first of the same tenor and date unpaid ; or similar words ; sight B/E; Tenor ; time B/E; DP Basis ; document against Payment Basis ; Documents against Acceptance Basis Transport documents; bill of lading ; received for shipment bill of lading ; on board bill of lading ; Short form bill of lading ; long form bill of lading clean bill of lading ; claused bill of lading ; through bill of lading ; straight bill of lading ; charter party Bill of lading ; container bill of lading container bill of lading ; combined transport B/L or Mulit Modal B/L lash bill of lading house bill of lading ; Airway bill ; Air consignment Note ; House Air way bill ; Postal Receipt ; Courier /Expected delivery service ; multimodal transport document ; risk covering documents ; insurance policy ; Insurance cover note ; official documents export declaration forms ; export certificate; Certificate of origin ; Miscellaneous documents ; packing list ; weight certificate ; certificate of analysis and quality ; certificate of inspection ; health certificate ; phytosanitary / Radiation / Fumigation Chapter 6 – Methods of payment ; advance payment ; bill for collection ; open account ; barter trade ; bank guarantee ; letter of credit (L / C) Seller wants buyer wants ; parties to a
18 – 19 20 – 23 24 – 27 31 – 35 36 – 39
40 – 41 43 – 46
47 – 49
50 – 53
55 – 57
61 – 66
documentary credit ; applicant issuing bank advising ; confirming bank beneficiary ; negotiating bank ; reimbursing bank Types of letters of credit ; revocal letter of credit ; irrevocable letter of credit ; confimed irrevocable letter of credit ; transferable l / c revolving letter of credit ; credit available by installments; back to back letter of credit ; anticipatory credit or red clause letter of credit ; green clause letter of credit ; deferred payment letter of credit ; standby letter of credit ; flow chart of export transaction under letter of credit Flow chart of export transaction under letter of credit ; various steps in the transaction are as under ; steps no. description Chapter 7 – Export / Import Finance ; - Part I import finance ; import financing through trust receipts / import loans ; import financing through issuing l/ c or bank guarantee ; part II – Export Finance Timely ; adequate ; cheaper on liberal terms ; sources for raising finance ; own funds ; 2 friends and relative ; 3 advance payment from buyer ; 4 Trade credit from suppliers 5 banks and financial institutions ; pre-shipment credit (P.C) Post shipment credit ; advance against cash incentives / duty draw back ; forfeiting ; rediscounting of export bills abroad ; buyer’s credit ; supplier’s credit Chapter – 8 – Procedure in connection with foreign investment in India – Seciton – I foreign direct investment ; FERA ; the practice at which a company can issue shares to non residents ; fema ; esop ; section II – Foreign technical collaboration ; General Hotel & Tourism Related Industries ; procedure for granting approval; I / We hereby certify that ; Documentation ; Standard conditions attached to approval for technology agreement ; no objection ; the agreement shall be subject to Indian laws: Section – III – Portfolio investment ; explanation ; the regulations regarding portfolio investments by NRIs / PIOs are as under ; NRI / PIOs ; Section – IV – Other investments ; Section V – procedure for opening branch / project / Liaison office ; Chapter – 9 – Direct investment outside India – overseas investment division TDR ADR GDR the criteria for investment under the automatic route are as under ; JV/WOS; ODA; The schemes for overseas investment by partnership firms ; criteria for overseas investment by a registered partnership firm under the automatic route ; The procedure to be followed by a partnership firm for making investment under the automatic route ; the procedure to be followed by partnership firms which are not eligible under the automatic route ; restrictions for setting up of a second generation company ; resident individual India can acquire foreign securities without prior approval in the following cases ; provided that ; WOS Chapter – 10 – Taxation ; Bilateral relief Unilateral relief ; for the purpose of this provision Part – 2 Forex risk management and hedging techniques Chapter – 1 Foreign exchange markets – The international Market ; survey were ; the market ; the participants ; information and communication system ; the payment system ; the foreign exchange market in India Chapter – 2 – Exchange Rates – Exchange rage quotes ; direct and indirect rates ; direct rates ; indirect rates; spot and forward rates value rate; ready or cash ; value today ; TOM; spot ; forwards; glossary of market terms; Foreign exchange risks ; transactions exposure ; translation exposure ; economic exposure; Translation – moving towards a consensus ; economic exposure ; an overview ; scenario exchange rages in India ; Inward remittances export encashment of foreign currency
67 – 69
70 – 71 73 – 74
75 -76 79 – 83 84 – 88 89 - 92 95 – 99
100 – 102
105 – 106 109 – 114 117 – 123
124 – 127
travelers cheques ; encashment of foreign currency notes; outward remittances ; imports ; issuing foreign currency travelers cheques issuing foreign currency notes ; Type of transaction exchange rate nomenclature ; Factors affecting movement of exchange rates ; summary Chapter – 3 – Forward contracts - Forward cover for merchants – forward purchase cover forward sales contract - repayment of foreign currency loans – period of delivery – cross currency booking (sale / Purchase ) ; utilization of the forward cover ; cancellation ; calculation of exchange rates for forward contracts Cancellation ; early delivery and rollover of forward contracts ; forward sale contracts ; forward purchase contract ; early delivery ; rollover charges Chapter 4 – Options and Futures – History and development ; recent trends ; key features of options and futures ; premium ; maturity or expiration date ; exercise ; in the money ; at the money ; out of the money American option European option ; underlying asset price time before expiration ; underlying asset price ; time before expiration the rate of interest volatility Pricing and analysis ; pricing of options ; underlying asset price ; exercise price ; options and futures products today ; interest rate options ; foreign exchange options and futures ; equity linked options ; commodity linked futures and options Chapter – 5 - Swaps What are swaps ; interest rate swaps ; lowering financial cost ; hedge exposure to interest rate risk ; restructuring the debt in the balance sheet ; amortizing and accreting swaps ; forward swaps ; Reversible swaps ; basis swaps Currency swaps ; lowering funding cost ; entering restricted capital markets ; reducing currency risk ; supply demand imbalances in the markets ; amortizing currency swaps ; accreting currency swaps ; floating – for floating rate currency swaps ; interest payments ; asset swaps PART 3 – AGENCIES INVOLVED IN INTERNATIONAL TRADE Chapter – 1 – Export import Bank of India ; Functions of Exim Bank ; the exim bank performs the following functions ; incidental functions ; operations programmes ; direct financial assistance to exporters ; consultancy and technology services ; pre-shipment credit ; facilities for export – oriented units ; overseas investment facility buyer credit facilities for deemed exports small scale industry export bills rediscounting; the latest new schemes in operation since 1992 are the following Chapter – 2 – Reserve Bank of India Exchange controls in India – RBI as the exchange control authority ; Authorized dealers (Ads) ; Money changers ; other receipts ; payment for imports ; other payments ; delegation to Ads; securities ; foreign currency accounts; liberalization of exchange control Sodhani Committee Recommendations ; Exchange rate management ; Chapter – 3 – Foreign Exchange dealers association of India ; Uniform customs and practice for collection ; Chapter 4 – International chamber of commerce – ICC – WCF – IBCC – WCF Chapter – 5 – Export credit guarantee corporation of India ; ECGC; need for export credit insurance ; credit insurance policies ; scr or standard policy ; turnover policy ; small exporter policy ; specific shipment policy (short term); buyer wise policy ; specific policy for supply contract insurance cover for buyer’s credit and line of credit Services Policy ; construction works policy ; maturity factoring ; Guarantees to banks ;
128 – 129 131 – 137
138 – 141 143- 147
148 – 152 155 – 157
158 – 161
163 – 166
169 – 173
174 – 177 179 – 180 183 – 183 189 – 190
191
packing credit guarantee ; export production finance guarantee ; post – shipment credit guarantee ; export finance guarantee ; export performance guarantee; export finance (overseas lending ) Guarantee Part – 4 – Miscellaneous Chapter 1 – Exchange Earner’s foreign currency (EEFC) Status holder exporter ; individual professional ; others; permissible credits ; permissible debits ; Chapter 2 – Country Risk ; Quantifying country risk ; A comprehensive example ; use of country risk ; assessment ; Chapter 3 – International capital Budgeting - The Basic Frame work Chapter 4 – Incoterms – Group E departure EXW ; Group F Main carriage unpaid ; FAS ; FOB ; CFR ; CIF ; CPT ; CIP ; Group C; Group D ; Arrival DAF ; DES ; DEQ; DDU CTD / MTO ; DDP ; delivered duty paid (CTD / MTO) Chapter – 5 – Actuals ; arbitrage ; bankers’ acceptance bond (BAS) ; Bearer Bond ; Bid rate ; Bond ; Bull; call option ; caps ; cash commodity ; cash market ; cedel ; certificate of deposit (CD) class of option ; closing price ; commission ; commercial paper (CP) ; contract specifications ; convertible bond ; coupon ; cover; delivery ; delivery month ; equity ; equity swaps ; equity collar ; Eurobond ; Euro clear ; euro commercial paper; euro –currency ; Exercise price ; expiration date; floating rate note ; fundamental Analysis ; futures contract hedge ; Hybrid ; Interest Rate swap; Intermediation ; Intrinsic Value ; Libor ; Long margin ; margin call maturity naked position ; note issuance facility (NIF) Option ; overbought ; oversold ; physical market ; position ; premium purchaser ; put option ; settlement price short ; speculator ; strike price ; straight debt tap ; technical analysis tranche ; tombstone volatility ; volume ; withholding tax ; yankee bond ;
Chapter – 1 – Introduction to international capital markets Ero currency market ; Domestic market ; US, Japan Switzerland ; uk, australia canada ; european conters in ECU ; Euro ; Asian doller market ; forex marker SDR ; ECU ; US dollar ; German ; Swiss ; Japanees ; France ; Canada ; Australia; Chaper - 2 - International financial Markets - The U.S.Dollar Market ; pricing ; federal reservice board; curency ; central bank of US ; The Japanese Yen Market ; Mof; Long Term Prime Rate ; 1970 japanese The Sterling Market ; 20th 19th century 1979 ; OECD Organization for economic co-operation & development EMS Exchange rate Mechanism; FRN ; Bulldog; the EURO Market has been discussed in the nex chapter Recent development in international financial markets ; septer 11 enron LtCN (Long term capital Management Brazil china and mexico; 1990 ; 1980 ; severe tests financial system; securitization forces banks ; attractive to browwerw; legal issues flexibility ; financial market development segement of ; swaps cash flow ; roject related; gain access to international ; marketability ; new financing techniques;
Chapter – 3 – International Monetary and Financial System
1945 ; 1944 ; intenrational world Bank for reconstruciton and development; second world war was european ; IMF International Monetary Fund; Gold standard first world war The country's Central Bank agreed to buy back their currency at a certain rate of gold;
1 1 2 5 6 7 7 8 9 10 13 13 13
195 199 203 – 204 207- 212 215 – 217
218 -219 220 – 221
melting down of gold was freely allowed There was unrestricted movement of gold (I.e. import and / export The total money supply in the country was determined by the quantum of gold reserves in the country 1870 ; 1914 ; 1821 ; 1834 ; 1870 ; European countries gold standard in 1933 ; 1930 International Monetary Co-operation ; IBRD ; IMF ; popularly known as world bank IMF ; the international monetary fund 1945 ; 1971 ; 25 years ; aims SDR ((special drawing rights ) 25% 1960 ; 1963 ; Gross domestic product; 5 years ; SDR 146 bn to SDR 212 ; 45% ; 1998 ; Two parts Funding Facilities ; Regular Facilities ; Special facilities ; restore tranche credit tranche ; compensatory and contingency financing facility (CCFF) ; Extended arrangement (Extended Fund Facility EEF) ; Buffer stock Financing Facility ; Standard Arrangement (Enlarged Arrears Policy ) ; Supplemental Reserve Policy (Supplemental Reserve Policy (SRP Reserve Tranche ; Credit Tranches ; Stand - By Arrangement Extended arrangement or extended fund facilities (EFF) Special Facilities ; CCFF ; Buffer Stock Financing Facility ; BSFF ; Supplemental Resource Facility (SRF) ; 1997 Enhance Structural Adjustment Facility (ESAF) ; The fixed exchange rate system US dollars 35 ounce of gold Problem faced by the fixed exchange rate system ; 1960 ; value apprehension ; delay in adjustment failure of fixed rate system ; the european monetary system (EMS) European Community Currency Snake ; 1973 ; EMS EC ECU European Currency Unit ; SDR ; ERM ; DM ; matrix german bundesbank EM ; PST ; ERM ; Economic and monetary Union ;
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question
Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer
True
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
False
Select The Blank Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR.
13 14 14 14 15 16 16 16 17 17 18 18 19 20 20 21
Correct Answer 0.025 Your Answer
50 basis points over LIBOR
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Multiple Choice Single Answer Question In the syndicated loan arrangement the borrower has to execute :Correct Answer Single Principal loan agreement Your Answer
Single Principal loan agreement
True/False Question
At Least one principal Lender bank is essential for issue of the ADR or GDR. Correct Answer False Your Answer
True
Multiple Choice Single Answer Question US financial system is the freest system because Correct Answer Institutions can introduce new products and instuments at the price of their choice. Your Answer Institutions can introduce new products and instuments at the price of their choice. Multiple Choice Single Answer Question In a coupon swap who is called the buyer? Correct Answer One who pays the fixed rate of interest Your Answer
One who pays the fixed rate of interest
True/False Question
Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer
False
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer
Overseas investment facility
Multiple Choice Single Answer Question Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases? Correct Answer 50% of the net worth of the investing company Your Answer
50% of the net worth of the investing company
Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer
Purchase and sell foreign currency notes and travellers cheques and also Give export finance
Select The Blank Question Any company involved in foreign exchange transactions is exposed to ________ risk. Correct Answer Currency Your Answer
Currency
Multiple Choice Multiple Answer Question What are the features of Settlement price ? Correct Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Your Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Multiple Choice Multiple Answer Question What are the activities of ICC? Correct Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime Your Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime , Increased Govt regulation of Business True/False
Question
Cause of increase in cost of public issues Underwriting fees , selling commission Correct Answer True Your Answer
False
Select The Blank Question The currency swaps used ________. Correct Answer To lower the risk of currency exposure Your Answer
To lower the risk of currency exposure
True/False Question
The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates. Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question Which factors affect the exchange rates in short time period? Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance of trade and payment,Unemployment Match The Following Question
Correct Answer
Your Answer
Departure
EXW
EXW
Main carriage paid
CFR
CFR
Main carriage unpaid
FAS
FAS
Arrival
DES
DES
Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds , Linking of issues to currency swaps
True/False Question
In red clause credit some clauses are printed in Red ink.
Correct Answer True Your Answer
False
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Multiple Answer Question Criteria for investment abroad under automatic route :Correct Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Your Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Multiple Choice Multiple Answer Question Who can issue the Certificate of Inspection? Correct Answer Export Inspection Council , Person authorised by Importer. Your Answer
Export Inspection Council , Person authorised by Importer.
Multiple Choice Single Answer
Question
Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia? Correct Answer United Kingdom Your Answer
United Kingdom
True/False Question
In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer
True
Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer
Shelf Registration
Select The Blank Question In Overseas market the forward rate is generally quoted on the basis of ________. Correct Answer Fixed date Your Answer
Calendar month
Select The Blank Question Forward Margin makes a currency costlier then the currency is at ________. Correct Answer Premium Your Answer
Discount
Multiple Choice Multiple Answer Question These are the parties to the documentary credit :Correct Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Your Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Single Answer Question Fixed, Floating or Limited flexibility are used in the context of Correct Answer Exchange Rates Your Answer
Exchange Rates
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark Your Answer
UK
Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Multiple Choice Single Answer Question To whom is an AD required to report the cancellation of forward contracts? Correct Answer No one at all. Your Answer
To Reserve Bank of India, fortnightly
Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy Your Answer
Export Performance Guarantee
True/False Question
The Negotiating bank examines the documents submitted by the seller and makes payment if they comply the terms and conditions of the LC. Correct Answer True Your Answer
True
Multiple Choice Single Answer
Question
What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer
Suppliers credit , Forfaiting
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer
Discount
Multiple Choice Single Answer Question Name the common forex derivatives :Correct Answer Options, futures Your Answer
Options, futures
True/False Question
Country risk analysis is a futile exercise in the background of cost of analysis. Correct Answer True Your Answer
False
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer
OECD
Match The Following Question Issues linked with LIBOR,LIBID,LIMEAN
Correct Answer
Your Answer
FRNs
FRNs
Issue of bonds without FloatingRate Note fixed rate of interest, linked to short term interest rate in the global market
FloatingRate Note
Issue of loans Syndicated Loans internationally,through arranger, underwriter,co manager, for a large amount for sharing risk of lending
Syndicated Loans
Equity issues in the American or Global foreign markets either as Depository Receipts direct investments or portfolio investments.
American or Global Depository Receipts
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Proforma Invoice, Commercial Invoice, Consaular Invoice are which type of documents? Correct Answer Commercial Documents Your Answer
Commercial Documents
True/False Question
Charter party bills of lading are generally not acceptable to bankers as security because Sea Charters are full of problems. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question Why does a Transaction exposure arise? Correct Answer Trading flows , Dividend or capital flows Your Answer
Trading flows , Dividend or capital flows
Multiple Choice Single Answer Question If a dealer of securities is quoting rate as 200-250 then the rate 200 signifies which rate with reference to him? Correct Answer Bid rate Your Answer
Bid rate
Select The Blank Question A Documentary credit issued on the strength of another documentary credit is known as ________. Correct Answer Back to Back credit Your Answer
Back to Back credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations True/False
Question
Tranche' is a managed issue of securities in smaller denominations. Correct Answer True Your Answer
False
True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer
True
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Multiple Answer Question Which events can lead to materialisation of country risk? Correct Answer Change in Government policies , Change in Government rules and laws Your Answer Change in Government policies , Change in Government rules and laws , Unpredicted Earthquake, Tsunami waves Multiple Choice Multiple Answer Question What is a 'speculator'? Correct Answer Trader who is neither hedger nor arbitragor , He takes risks for profit Your Answer Trader who is neither hedger nor arbitragor , He takes risks for profit Select The Blank Question The major industrial power whose economy was not affected after the II world war was ________. Correct Answer USA Your Answer
USA
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Your Answer
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer
Protracted default by the buyer , Insolvency of the buyer
Select The Blank Question Legalised invoice is also called ________ invoice. Correct Answer Visaed Your Answer
Visaed
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
True/False Question
The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. Correct Answer True Your Answer
True
Match The Following Question
Correct Answer
Your Answer
LastStage
Form a single currency
Meet in Maastricht in Netherland
The First stage in the Free movement of capital Establish EURO Bank Europeand and Monetary in EC Union (EMU) Stage II in EMU
Establishment of European Monetary Institute
Establishment of European Monetary Institute
Stage III in EMU
Members to meet the convergence criteria and fix the exchange rates
Members to meet the convergence criteria and fix the exchange rates
Select The Blank
Question
Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold. Correct Answer Gold Your Answer
Gold
True/False Question
An Indian exporting goods to New York receives dollars in New York. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The factors which affect the performance of an option are:Correct Answer Underlying asset price , Time before expiration, rate of interest Your Answer
Underlying asset price , Time before expiration, rate of interest
Multiple Choice Multiple Answer Question Which contracts are used for transportation by road? Correct Answer FCA , CPT Your Answer
FCA , CPT , CFR
True/False Question
Bid rate is bidders buying rate and offered r ate is bidders selling rate. Correct Answer True Your Answer
False
Match The Following Question
Correct Answer
Cancellation of contracts ECD above USD 500000
Your Answer ECD
Forward Purchase contract currency at premium
Presume earliest delivery Presume earliest delivery
Forward purchase contract currency at discount
Presume latest delivery
Presume latest delivery
Exchange margins
FEDAI
FEDAI
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Other managed Floating
Multiple Choice Multiple Answer Question Which two countries were included to convert the group of five into the group of seven? Correct Answer Italy , Canada Your Answer
Canada , Italy
Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer
Individuals , firms, companies, resident in India
Multiple Choice Single Answer Question Method of advance payment is not disadvantageous to :Correct Answer The seller Your Answer
The seller
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions Your Answer
Increase in volatile trading conditions
Multiple Choice Single Answer Question What do you mean by a derivative? Correct Answer One which has been derived from other fundamental instruments Your Answer Derived from Mathematical expressions Multiple Choice Single Answer Question "Currency Snake"
Correct Answer Plus or minus movement of exchange rate around the parity rate Your Answer
Currency of European Country in the early 70's
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question In which currency can the EEFC account be opened? Correct Answer Any Convertible currency Your Answer
Any Convertible currency
Multiple Choice Multiple Answer Question Criteria for Direct investment abroad under normal route :Correct Answer Viability of the proposal, and excellent track record of business , Experience and expertise of promoters, benefit to the country Your Answer Total Financial commitment in JV/WOS as per prescribed ceiling , Activity for investment is core activity of Indian Co. Select The Blank Question ________ enables bankers to extend purchase, negotiation or discount of export bills. Correct Answer Post shipment credit guarantee Your Answer
Post shipment credit guarantee
Multiple Choice Single Answer Question For setting up a joint venture or WOS abroad, Indian banks operating in India need a clearance :Correct Answer Under Banking Regulation Act Your Answer
Under Banking Regulation Act
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer
Companies which have international trade
True/False Question
Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. Correct Answer False Your Answer
False
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
True/False Question
Terms in an Irrevocable credit can not be alterred at all.
Correct Answer False Your Answer
True
Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer
Square
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards Select The Blank Question The currency notes and coins of individual countries participating in "Euro" have ceased to be a legal tender from ________. Correct Answer 2002 Your Answer
2002
Select The Blank Question Partnership firm not eligible for Overseas Direct Investment needs to apply to RBI Approval in form ________.
Correct Answer ODI Your Answer
ODI
Multiple Choice Single Answer Question Where does the word derivative originate from? Correct Answer Mathematics Your Answer
Mathematics
Select The Blank Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility. Correct Answer Cash Incentives Your Answer
Cash Incentives
Multiple Choice Single Answer Question The financial system of any country consists of Correct Answer Network of commercial banks, domestic and foreign investment banks, NBFCs, etc Your Answer The Central bank, IMF and world bank
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Association of several scheduled commercial banks for forex business is ________. Correct Answer Foreign Exchange Dealers Association of India Your Answer
Foreign Exchange Dealers Association of India
True/False Question
Installment credit is issued for specific quantities of goods to be shipped every week or month. Correct Answer True Your Answer
True
Select The Blank Question Combined Certificate of Origin and Value are required by ________. Correct Answer Commonwealth Countries Your Answer
Commonwealth Countries
Select The Blank Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange. Correct Answer Irrelevant Your Answer
Irrelevant
Select The Blank Question When interest rate changes by 0.05 per cent then it has changed ________ basis points. Correct Answer 50 Your Answer
5
Multiple Choice Multiple Answer Question What were the primary objectives of the group of seven countries? Correct Answer Bring down the external value of US Dollar , Bring some stability to exchange rates of all the countries Your Answer Bring down the external value of US Dollar , Bring some stability to exchange rates of all the countries Multiple Choice Multiple Answer
Question
The crisis in global capital market in 2002-04 was due to
Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism Your Answer Collapse of Enron , Collapse of Argentina's currency board Multiple Choice Multiple Answer Question Mr A sells an option conferring the right to buy a kilogram of silver at Rs 8000/- for next six months means :Correct Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in next 6 months, even if the price goes up, , The buyer of option can sell silver to Mr A at 8000/- per Kg, in next 6 months, even if the price goes down. Your Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in next 6 months, even if the price goes up, , Mr A has choice of selling or not selling silver on his own Multiple Choice Multiple Answer Question Major investors in NIF are :Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies Your Answer Commercial Banks , Non banking Finance companies , Insurance Companies True/False Question
With the advent of futures and Options there is no need for additional instruments of risk hedging. Correct Answer False Your Answer
False
Select The Blank Question During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer
USDollar
Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Multiple Choice Single Answer
Question
What is a bill of lading?
Correct Answer Transport document representing movement of goods by water. Your Answer
Transport document representing movement of goods by water.
Multiple Choice Single Answer Question Which controls are not permitted by IMF? Correct Answer Current account controls Your Answer
Exchange controls
Multiple Choice Multiple Answer Question What are the objectives of International Chamber of Commerce? Correct Answer Champion the global economy as a force of economic growth , Creating of job and prosperity Your Answer Champion the global economy as a force of economic growth , Creating of job and prosperity True/False Question
Yankee bond is issued for domestic borrowers.
Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market True/False Question
An AD can book a forward contract for a part of the amount of Sale Contract Correct Answer True Your Answer
False
True/False Question
Sterling FRNs are issued in Europe, USA ,Asia
Correct Answer False Your Answer
True
Match The Following Question Bond basis to money market basis
Correct Answer
Your Answer
Bond basisx 360/365
Bond basisx 360/365
3 months LIBOR +2 % PA Floating rate
Floating for floating rate currency swap
15% P.A.
Fixed rate
Fixed rate
Money market basis to bond basis
Money market basis x 365/360
Money market basis x 365/360
Select The Blank Question In Indian interbank market forward rates are generally quoted on the basis of ________. Correct Answer Calendar month Your Answer
Calendar month
Multiple Choice Single Answer Question In case of syndication of loans the amount of loan and currency is finalised by :Correct Answer Borrower Your Answer
Underwriter of the syndicate
Multiple Choice Single Answer Question European currency Unit Correct Answer Basket of Currencies of members of EMS Your Answer
Basket of Currencies of members of EMS
Select The Blank Question The counter party in option is ________. Correct Answer The exchange Your Answer
Trustworthy corporation, who hedges the risks of market uncertainty
Multiple Choice Single Answer Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be
Correct Answer Following Tuesday if it is a working day in all the three centers Your Answer
Following Tuesday if it is a working day in all the three centers
Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer
Cheque book and nomination
Multiple Choice Multiple Answer Question A Usance bill of exchange may be drawn in 2 ways. Which are they? Correct Answer Documents against payment , Documents against acceptance Your Answer
Documents against payment , Documents against acceptance
Multiple Choice Single Answer Question Why have futures and options come into existence? Correct Answer To avoid business risk. Your Answer
To avoid business risk.
True/False Question
In an interest rate swap if the payment schedules are identical, only diffrence between the two payments is delivered. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What are the main causes of fluctuations in Exchange rates? Correct Answer Market demand and supply, sentiments , Government regulatios, fiscal policies, political instabilities Your Answer Government regulatios, fiscal policies, political instabilities , Market demand and supply, sentiments , The purchasing power of currency changes every second Multiple Choice Single Answer Question What do you understand by a swap? Correct Answer 2 counter parties agree to exchange streams of payments over a period of time Your Answer 2 counter parties agree to exchange streams of payments over a period of time
True/False Question
Import finance is nomally available at rates of interest cheaper than domestic finance rates. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question A weight list, a packing list used in international trade are which type of documents? Correct Answer Operational Documents Your Answer
Operational Documents
Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Your Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad Multiple Choice Single Answer Question Which Indian Co. is not eligible to make investment abroad under automatic route? Correct Answer Co which is caution listed by RBI Your Answer
Co which is caution listed by RBI
True/False Question
Naked position is when investor does not hedge against market risk. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer
Question
In DAF, the frontier means :-
Correct Answer Frontier of exporter's country , Frontier of importer's country Your Answer
Frontier of exporter's country , Frontier of importer's country
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Match The Following Question
Correct Answer
Your Answer
European option
On or after maturity
On or after maturity
Out of money
Loss
Profit
In the money
Profit
Loss
American option
Before maturity
Before maturity
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
True/False Question
PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer
False
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Core activity
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer
26
Select The Blank Question Indian Co. intending to make investment under Automatic route needs to submit form ________ to RBI with enclosures. Correct Answer ODA Your Answer
ODA
Multiple Choice Single Answer Question In International trade, Advance payment means :Correct Answer Providing up front cash Your Answer
Providing up front cash
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question Correct Answer
________ is the agency of ICC which deals with the maritime crime. International Maritime Bureau
Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer
Buffer Stock Facility
Your Answer
Buffer Stock Facility
True/False Question Correct Answer
Cross currency forward contract is not meaningful if original contract is in Rupees to USD True
Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer Match The Following
US Dollar
Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank Question Correct Answer Your Answer
Global capital market can be understood from the study of ________. Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer Match The Following Question
Pegged to Single currency
Correct Answer
Your Answer
Maturity of future
Time when actual commodity Last date of exercising option is delivered
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency other than that of the country of issue
Eurobonds
Eurobonds
Margin on future
Peformance bond or security Peformance bond or security deposit deposit
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi
negotiable instrument. Correct Answer
False
Your Answer
False
True/False Question Correct Answer
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. True
Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Your Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer Your Answer
By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer
Select The Blank Question
Preshipment credit up to six months for construction and turnkey projects abroad
Correct Answer
Over the years ________has been the most widely accepted currency in international capital market. American Dollar
Your Answer
American Dollar
Select The Blank Question Correct Answer
As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Economies
Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer
US Dollar
Select The Blank Question
________ is the acid test for events to be included in country risk.
Correct Answer
Control by Government'
Your Answer
Recurrence
Select The Blank Question Correct Answer
The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Brussels
Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer
Sharing of risk of non payment by supplier
Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False
Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer Your Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Your Answer
True/False Question
Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Correct Answer
Funding Options in domestic yen market are Futures, FRAs, Call and put options. True
Your Answer
True
True/False Question Correct Answer
There is no difference between CIP and CIF contracts except the mode of transportation. True
Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Select The Blank Question
When an Indian Company earns at least 50% of its average
Correct Answer
turnover from a particular activity then that activity is considered as ________. Core activity
Your Answer
Primary activity
Select The Blank Question
A Credit can be a confirmed credit only if it is also ________.
Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer
Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer
Select The Blank Question
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Correct Answer
Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Euro Commercial Papers
Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer
Buy when you are having short position
Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer Your Answer
Select The Blank Question
He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Correct Answer
Forward margin makes a currency cheaper then the currency is at ________. Discount
Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate?
Correct Answer Your Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Your Answer
Prices of capital market instruments change and are expected to change drastically Prices of capital market instruments change and are expected to change drastically
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer True/False Question
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Correct Answer
Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. False
Your Answer
False
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Select The Blank Question Correct Answer
A Credit can be a confirmed credit only if it is also ________. An Irrevocable credit
Your Answer
An Irrevocable credit
Match The Following Question
Correct Answer
Intolerable risk
Drop the investment project Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Banks are ahead
Weightages %
Factors' values
Factors' values
Select The Blank Question
Your Answer
Correct Answer
Over the years ________has been the most widely accepted currency in international capital market. American Dollar
Your Answer
American Dollar
Multiple Choice Single Answer Question What is the meaning of a country risk? Correct Answer Your Answer
Risk of events in a particular country which may cause loss to a person dealing with that country Risk of events in a particular country which may cause loss to a person dealing with that country
Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Your Answer
Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer
Match The Following Question
Correct Answer
Your Answer
PP Form
Export Declaration form
Export Declaration form
Health Certificate
Fumigation certificate
Fumigation certificate
Certificate of Inspection
As per importers requirement
As per importers requirement
Certifiate of Origin
Export Promotion Council
Export Promotion Council
Select The Blank Question
Correct Answer
Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries OECD
Your Answer
OECD
Multiple Choice Single Answer Question How many INCOTERMS are there in "Departure" Group? Correct Answer
One
Your Answer
Two
Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Your Answer
True/False Question
Transport document representing movement of goods by water. Transport document representing movement of goods by water.
Correct Answer
The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. True
Your Answer
True
Select The Blank Question
The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures
exchange. Correct Answer
Irrelevant
Your Answer
Irrelevant
Multiple Choice Single Answer Question What was the collective assessment of International financial market about the country risk of many cnuntries in the last decade? Correct Answer Whatever it was, was disastrously wrong. Your Answer
Whatever it was, was disastrously wrong.
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards True/False Question Correct Answer
Till August 1994 India was following the Indirect Methodof Rate quotation. False
Your Answer
True
Select The Blank Question Correct Answer
In Indian interbank market forward rates are generally quoted on the basis of ________. Calendar month
Your Answer
Calendar month
Select The Blank Question Correct Answer
Rupee was liberalised on ________ account in 1993, and on current account in 1994. Trade
Your Answer
Trade
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating
Your Answer
Other managed Floating
Multiple Choice Multiple Answer Question Which of these are considered as miscellaneous documents? Correct Answer Packing list , Weight certificate Your Answer True/False Question
Packing list , Weight certificate
Correct Answer
Funding Options in domestic yen market are Futures, FRAs, Call and put options. True
Your Answer
True
Select The Blank Question Correct Answer
ECGC provides cover to an Indian contractor for construction work abroad under ________. Construction works policy
Your Answer
Construction works policy
Multiple Choice Single Answer Question Equity can be raised internationallly by a company through :Correct Answer Fund raising, underwriting, hedging , arbitration operations Your Answer
Fund raising, underwriting, hedging , arbitration operations
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer
26
True/False Question
In red clause credit some clauses are printed in Red ink.
Correct Answer
True
Your Answer
True
True/False Question
Prior approval of RBI is needed for payment of all imports.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer Question The factors which affect the performance of an option are:Correct Answer Your Answer
Underlying asset price , Time before expiration, rate of interest Underlying asset price , Time before expiration, rate of interest
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions Your Answer Select The Blank Question
Management of external risk
Correct Answer
For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Overseas investment facility
Your Answer
Overseas investment facility
Select The Blank Question Correct Answer
To make the export more competitive and remunerative, the Indian Govt extends ________ facility. Cash Incentives
Your Answer
Advance against cash incentives
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Multiple Choice Multiple Answer Question External Commercial Debt market :Correct Answer
Prevails in Domestic market of foreign country , Prevails in offshore markets
Your Answer
Prevails in Domestic market of foreign country , Prevails in offshore markets
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer
Your Answer
The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows , Certainty of an event which would happen in favour of the importer/ exporter
Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :Correct Answer Thursday if it is a working day at both the centers Your Answer
Friday
Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 True/False Question Correct Answer
In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium. True
Your Answer
True
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand
Correct Answer Your Answer
Select The Blank Question
Which are convertible , Which have liquidity confirmed in Euro market operations Which are convertible , Which have liquidity confirmed in Euro market operations
Correct Answer
A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Credit
Your Answer
Credit
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad Select The Blank Question Correct Answer Your Answer
True/False Question
Global capital market can be understood from the study of ________. Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Correct Answer
Import finance is nomally available at rates of interest cheaper than domestic finance rates. False
Your Answer
False
Multiple Choice Multiple Answer Question Major s in NIF are :Correct Answer Your Answer Select The Blank Question
Commercial Banks , Non banking Finance companies , Insurance Companies Commercial Banks , Non banking Finance companies
Correct Answer
In mid 1992 ________ rejected the ratification of Maastricht treaty Denmark
Your Answer
Denmark
True/False Question Correct Answer
Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. False
Your Answer
True
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer
Buffer Stock Facility
Your Answer
Buffer Stock Facility
True/False Question Correct Answer
Cross currency forward contract is not meaningful if original contract is in Rupees to USD True
Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer
Question Correct Answer
Which is the most actively traded currency in the international market today? US Dollar
Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not Cost of evluation does not justify analysis justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in Eurobonds currency other than that of the country of issue
Eurobonds
Margin on future
Peformance bond or security deposit
True/False Question
Peformance bond or security deposit
Correct Answer
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. False
Your Answer
False
True/False Question Correct Answer
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. True
Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Your Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer Your Answer
By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion
Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer
Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer
Question
What is Risk Syndication facility?
Correct Answer
Sharing of risk of non payment by supplier
Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer Your Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Your Answer
True/False Question
Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Correct Answer
Funding Options in domestic yen market are Futures, FRAs, Call and put options. True
Your Answer
True
True/False Question Correct Answer
There is no difference between CIP and CIF contracts except the mode of transportation. True
Your Answer
True
Multiple Choice Single Answer
Question
Financial management is complex process for
Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer
Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer
Buy when you are having short position
Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer Your Answer
Select The Blank
He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Question Correct Answer
Forward margin makes a currency cheaper then the currency is at ________. Discount
Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Your Answer
Prices of capital market instruments change and are expected to change drastically Prices of capital market instruments change and are expected to change drastically
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime.
Correct Answer International Maritime Bureau Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer
Buffer Stock Facility
True/False Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank
Question
Global capital market can be understood from the study of ________.
Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity Last date of exercising option is delivered
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency other than that of the country of issue
Eurobonds
Eurobonds
Margin on future
Peformance bond or security Peformance bond or security deposit deposit
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer
False
True/False Question
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer
Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer
True
True/False Question
There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer True/False Question
An Irrevocable credit
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total.
Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer
Buffer Stock Facility
True/False Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option?
Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Pegged to Single currency
Match The Following
Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in Eurobonds currency other than that of the country of issue
Eurobonds
Margin on future
Peformance bond or security deposit
Peformance bond or security deposit
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer
False
True/False Question
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Your Answer
Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer
Recurrence
Select The Blank
Question
The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer
True/False Question
Sharing risk of Non payment by the Syndicate of Banks giving loans
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer
True/False
True
Question
There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer
An Irrevocable credit
True/False Question
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer
Question
What is the effect of cross currency option on the customer?
Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False
Question
Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer
True
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
False
Select The Blank Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR. Correct Answer 0.025 Your Answer
50 basis points over LIBOR
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of paym ent Multiple Choice Single Answer Question In the syndicated loan arrangement the borrower has to execute :Correct Answer Single Principal loan agreement Your Answer
Single Principal loan agreement
True/False Question
At Least one principal Lender bank is essential for issue of the ADR or GDR. Correct Answer False Your Answer
True
Multiple Choice Single Answer Question US financial system is the freest system because Correct Answer Institutions can introduce new products and instuments at the price of their choice.
Your Answer
Institutions can introduce new products and instuments at the price of their choice.
Multiple Choice Single Answer Question In a coupon swap who is called the buyer? Correct Answer One who pays the fixed rate of interest Your Answer
One who pays the fixed rate of interest
True/False Question
Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer
False
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer
Overseas investment facility
Multiple Choice Single Answer Question Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases? Correct Answer 50% of the net worth of the investing company Your Answer
50% of the net worth of the investing company
Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer
Purchase and sell foreign currency notes and travellers cheques and also Give export finance
Select The Blank Question Any company involved in foreign exchange transactions is exposed to ________ risk. Correct Answer Currency Your Answer
Currency
Multiple Choice Multiple Answer
Question
What are the features of Settlement price ?
Correct Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Your Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Multiple Choice Multiple Answer Question What are the activities of ICC? Correct Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime Your Answer Aribtration and dispute resolving , Canvass for open trade combat commercial crime , Increased Govt regulation of Business True/False Question
Cause of increase in cost of public issues Underwriting fees , selling commission Correct Answer True Your Answer
False
Select The Blank Question The currency swaps used ________. Correct Answer To lower the risk of currency exposure Your Answer
To lower the risk of currency exposure
True/False Question
The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates. Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question Which factors affect the exchange rates in short time period? Correct Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation Your Answer Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance of trade and payment,Unemployment Match The Following
Question
Correct Answer
Your Answer
Departure
EXW
EXW
Main carriage paid
CFR
CFR
Main carriage unpaid
FAS
FAS
Arrival
DES
DES
Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds , Linking of issues to currency swaps True/False Question
In red clause credit some clauses are printed in Red ink.
Correct Answer True Your Answer
False
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Multiple Answer Question Criteria for investment abroad under automatic route :Correct Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Your Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Multiple Choice Multiple Answer Question Who can issue the Certificate of Inspection? Correct Answer Export Inspection Council , Person authorised by Importer. Your Answer
Export Inspection Council , Person authorised by Importer.
Multiple Choice Single Answer Question Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia? Correct Answer United Kingdom Your Answer
United Kingdom
True/False Question
In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer
True
Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer
Shelf Registration
Select The Blank Question In Overseas market the forward rate is generally quoted on the basis of ________. Correct Answer Fixed date Your Answer
Calendar month
Select The Blank Question Forward Margin makes a currency costlier then the currency is at ________.
Correct Answer Premium Your Answer
Discount
Multiple Choice Multiple Answer Question These are the parties to the documentary credit :Correct Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Your Answer Negotiating Bank, advising bank , Reimbursing bank, Confirming bank Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Single Answer Question Fixed, Floating or Limited flexibility are used in the context of Correct Answer Exchange Rates Your Answer
Exchange Rates
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark Your Answer
UK
Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Multiple Choice Single Answer Question To whom is an AD required to report the cancellation of forward contracts? Correct Answer No one at all. Your Answer
To Reserve Bank of India, fortnightly
Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy Your Answer
Export Performance Guarantee
True/False Question
The Negotiating bank examines the documents submitted by the seller and makes payment if they comply the terms and conditions of the LC. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer
Suppliers credit , Forfaiting
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount Your Answer
Discount
Multiple Choice Single Answer Question Name the common forex derivatives :Correct Answer Options, futures Your Answer True/False Question
Options, futures
Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer True Your Answer
False
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer
OECD
Match The Following Question Issues linked with LIBOR,LIBID,LIMEAN
Correct Answer
Your Answer
FRNs
FRNs
Issue of bonds without FloatingRate Note fixed rate of interest, linked to short term interest rate in the global market
FloatingRate Note
Issue of loans Syndicated Loans internationally,through arranger, underwriter,co manager, for a large amount for sharing risk of lending
Syndicated Loans
Equity issues in the American or Global foreign markets either as Depository Receipts direct investments or portfolio investments.
American or Global Depository Receipts
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Proforma Invoice, Commercial Invoice, Consaular Invoice are which type of documents? Correct Answer Commercial Documents Your Answer True/False Question
Commercial Documents
Charter party bills of lading are generally not acceptable to bankers as security because Sea Charters are full of problems.
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question Why does a Transaction exposure arise? Correct Answer Trading flows , Dividend or capital flows Your Answer
Trading flows , Dividend or capital flows
Multiple Choice Single Answer Question If a dealer of securities is quoting rate as 200-250 then the rate 200 signifies which rate with reference to him? Correct Answer Bid rate Your Answer
Bid rate
Select The Blank Question A Documentary credit issued on the strength of another documentary credit is known as ________. Correct Answer Back to Back credit Your Answer
Back to Back credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations True/False Question
Tranche' is a managed issue of securities in smaller denominations. Correct Answer True Your Answer
False
True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer
True
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Multiple Answer Question Which events can lead to materialisation of country risk? Correct Answer Change in Government policies , Change in Government rules and laws Your Answer Change in Government policies , Change in Government rules and laws , Unpredicted Earthquake, Tsunami waves Multiple Choice Multiple Answer Question What is a 'speculator'? Correct Answer Trader who is neither hedger nor arbitragor , He takes risks for profit Your Answer Trader who is neither hedger nor arbitragor , He takes risks for profit Select The Blank Question The major industrial power whose economy was not affected after the II world war was ________. Correct Answer USA Your Answer
USA
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer
Protracted default by the buyer , Insolvency of the buyer
Select The Blank Question Legalised invoice is also called ________ invoice. Correct Answer Visaed
Your Answer
Visaed
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
True/False Question
The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. Correct Answer True Your Answer
True
Match The Following Question
Correct Answer
Your Answer
LastStage
Form a single currency
Meet in Maastricht in Netherland
The First stage in the Free movement of capital Establish EURO Bank Europeand and Monetary in EC Union (EMU) Stage II in EMU
Establishment of European Monetary Institute
Establishment of European Monetary Institute
Stage III in EMU
Members to meet the convergence criteria and fix the exchange rates
Members to meet the convergence criteria and fix the exchange rates
Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold. Correct Answer Gold Your Answer
Gold
True/False Question
An Indian exporting goods to New York receives dollars in New York. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer
Question
The factors which affect the performance of an option are:-
Correct Answer Underlying asset price , Time before expiration, rate of interest Your Answer
Underlying asset price , Time before expiration, rate of interest
Multiple Choice Multiple Answer Question Which contracts are used for transportation by road? Correct Answer FCA , CPT Your Answer
FCA , CPT , CFR
True/False Question
Bid rate is bidders buying rate and offered rate is bidders selling rate. Correct Answer True Your Answer
False
Match The Following Question
Correct Answer
Cancellation of contracts ECD above USD 500000
Your Answer ECD
Forward Purchase contract currency at premium
Presume earliest delivery Presume earliest delivery
Forward purchase contract currency at discount
Presume latest delivery
Presume latest delivery
Exchange margins
FEDAI
FEDAI
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Other managed Floating
Multiple Choice Multiple Answer Question Which two countries were included to convert the group of five into the group of seven? Correct Answer Italy , Canada Your Answer
Canada , Italy
Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer
Individuals , firms, companies, resident in India
Multiple Choice Single Answer Question Method of advance payment is not disadvantageous to :Correct Answer The seller Your Answer
The seller
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions Your Answer
Increase in volatile trading conditions
Multiple Choice Single Answer Question What do you mean by a derivative? Correct Answer One which has been derived from other fundamental instruments Your Answer Derived from Mathematical expressions Multiple Choice Single Answer Question "Currency Snake" Correct Answer Plus or minus movement of exchange rate around the parity rate Your Answer
Currency of European Country in the early 70's
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question In which currency can the EEFC account be opened? Correct Answer Any Convertible currency
Your Answer
Any Convertible currency
Multiple Choice Multiple Answer Question Criteria for Direct investment abroad under normal route :Correct Answer Viability of the proposal, and excellent track record of business , Experience and expertise of promoters, benefit to the country Your Answer Total Financial commitment in JV/WOS as per prescribed ceiling , Activity for investment is core activity of Indian Co. Select The Blank Question ________ enables bankers to extend purchase, negotiation or discount of export bills. Correct Answer Post shipment credit guarantee Your Answer
Post shipment credit guarantee
Multiple Choice Single Answer Question For setting up a joint venture or WOS abroad, Indian banks operating in India need a clearance :Correct Answer Under Banking Regulation Act Your Answer
Under Banking Regulation Act
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer
Companies which have international trade
True/False Question
Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. Correct Answer False Your Answer
False
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer True/False
American Dollar
Question
Terms in an Irrevocable credit can not be alterred at all.
Correct Answer False Your Answer
True
Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer
Square
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards Select The Blank Question The currency notes and coins of individual countries participating in "Euro" have ceased to be a legal tender from ________. Correct Answer 2002 Your Answer
2002
Select The Blank Question Partnership firm not eligible for Overseas Direct Investment needs to apply to RBI Approval in form ________. Correct Answer ODI Your Answer
ODI
Multiple Choice Single Answer Question Where does the word derivative originate from? Correct Answer Mathematics Your Answer
Mathematics
Select The Blank Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility. Correct Answer Cash Incentives
Your Answer
Cash Incentives
Multiple Choice Single Answer Question The financial system of any country consists of Correct Answer Network of commercial banks, domestic and foreign investment banks, NBFCs, etc Your Answer The Central bank, IMF and world bank
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Association of several scheduled commercial banks for forex business is ________. Correct Answer Foreign Exchange Dealers Association of India Your Answer
Foreign Exchange Dealers Association of India
True/False Question
Installment credit is issued for specific quantities of goods to be shipped every week or month. Correct Answer True Your Answer
True
Select The Blank Question Combined Certificate of Origin and Value are required by ________. Correct Answer Commonwealth Countries Your Answer
Commonwealth Countries
Select The Blank Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange. Correct Answer Irrelevant Your Answer
Irrelevant
Select The Blank Question When interest rate changes by 0.05 per cent then it has changed ________ basis points. Correct Answer 50 Your Answer
5
Multiple Choice Multiple Answer Question What were the primary objectives of the group of seven countries? Correct Answer Bring down the external value of US Dollar , Bring some stability to exchange rates of all the countries Your Answer Bring down the external value of US Dollar , Bring some stability to exchange rates of all the countries Multiple Choice Multiple Answer Question The crisis in global capital market in 2002-04 was due to Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism Your Answer Collapse of Enron , Collapse of Argentina's currency board Multiple Choice Multiple Answer Question Mr A sells an option conferring the right to buy a kilogram of silver at Rs 8000/- for next six months means :Correct Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in next 6 months, even if the price goes up, , The buyer of option can sell silver to Mr A at 8000/- per Kg, in next 6 months, even if the price goes down. Your Answer The buyer of option can buy silver from Mr A at 8000/- per Kg, in next 6 months, even if the price goes up, , Mr A has choice of selling or not selling silver on his own Multiple Choice Multiple Answer Question Major investors in NIF are :Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies Your Answer Commercial Banks , Non banking Finance companies , Insurance Companies True/False Question
With the advent of futures and Options there is no need for additional instruments of risk hedging. Correct Answer False Your Answer
False
Select The Blank Question During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer
USDollar
Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water. Your Answer
Transport document representing movement of goods by water.
Multiple Choice Single Answer Question Which controls are not permitted by IMF? Correct Answer Current account controls Your Answer
Exchange controls
Multiple Choice Multiple Answer Question What are the objectives of International Chamber of Commerce? Correct Answer Champion the global economy as a force of economic growth , Creating of job and prosperity Your Answer Champion the global economy as a force of economic growth , Creating of job and prosperity True/False Question
Yankee bond is issued for domestic borrowers.
Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market True/False Question
An AD can book a forward contract for a part of the amount of Sale Contract
Correct Answer True Your Answer
False
True/False Question
Sterling FRNs are issued in Europe, USA ,Asia
Correct Answer False Your Answer
True
Match The Following Question Bond basis to money market basis
Correct Answer
Your Answer
Bond basisx 360/365
Bond basisx 360/365
3 months LIBOR +2 % PA Floating rate
Floating for floating rate currency swap
15% P.A.
Fixed rate
Fixed rate
Money market basis to bond basis
Money market basis x 365/360
Money market basis x 365/360
Select The Blank Question In Indian interbank market forward rates are generally quoted on the basis of ________. Correct Answer Calendar month Your Answer
Calendar month
Multiple Choice Single Answer Question In case of syndication of loans the amount of loan and currency is finalised by :Correct Answer Borrower Your Answer
Underwriter of the syndicate
Multiple Choice Single Answer Question European currency Unit Correct Answer Basket of Currencies of members of EMS Your Answer
Basket of Currencies of members of EMS
Select The Blank Question The counter party in option is ________.
Correct Answer The exchange Your Answer
Trustworthy corporation, who hedges the risks of market uncertainty
Multiple Choice Single Answer Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be Correct Answer Following Tuesday if it is a working day in all the three centers Your Answer
Following Tuesday if it is a working day in all the three centers
Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer
Cheque book and nomination
Multiple Choice Multiple Answer Question A Usance bill of exchange may be drawn in 2 ways. Which are they? Correct Answer Documents against payment , Documents against acceptance Your Answer
Documents against payment , Documents against acceptance
Multiple Choice Single Answer Question Why have futures and options come into existence? Correct Answer To avoid business risk. Your Answer
To avoid business risk.
True/False Question
In an interest rate swap if the payment schedules are identical, only diffrence between the two payments is delivered. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What are the main causes of fluctuations in Exchange rates? Correct Answer Market demand and supply, sentiments , Government regulatios, fiscal policies, political instabilities Your Answer Government regulatios, fiscal policies, political instabilities , Market demand and supply, sentiments , The purchasing power of currency changes every second
Multiple Choice Single Answer Question What do you understand by a swap? Correct Answer 2 counter parties agree to exchange streams of payments over a period of time Your Answer 2 counter parties agree to exchange streams of payments over a period of time True/False Question
Import finance is nomally available at rates of interest cheaper than domestic finance rates. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question A weight list, a packing list used in international trade are which type of documents? Correct Answer Operational Documents Your Answer
Operational Documents
Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Your Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit beyond six months for construction and turnkey projects abroad Multiple Choice Single Answer Question Which Indian Co. is not eligible to make investment abroad under automatic route? Correct Answer Co which is caution listed by RBI Your Answer True/False
Co which is caution listed by RBI
Question
Naked position is when investor does not hedge against market risk. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question In DAF, the frontier means :Correct Answer Frontier of exporter's country , Frontier of importer's country Your Answer
Frontier of exporter's country , Frontier of importer's country
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Match The Following Question
Correct Answer
Your Answer
European option
On or after maturity
On or after maturity
Out of money
Loss
Profit
In the money
Profit
Loss
American option
Before maturity
Before maturity
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
True/False Question
PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer
False
Select The Blank
Question
When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Core activity
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer
26
Select The Blank Question Indian Co. intending to make investment under Automatic route needs to submit form ________ to RBI with enclosures. Correct Answer ODA Your Answer
ODA
Multiple Choice Single Answer Question In International trade, Advance payment means :Correct Answer Providing up front cash Your Answer
Providing up front cash
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Which functions does the Bill of Lading serve? Correct Answer It is a document of title to goods. , It is receipt of goods Your Answer It is a document of title to goods. , It is receipt of goods Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00 for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A.
Your Answer 9.50% P.A. Multiple Choice Single Answer Question What is Sovereign Risk? Correct Answer Risk of lending to the government of a country Your Answer Risk of lending to the government of a country Multiple Choice Single Answer Question How does ICC help poor countries? Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False Your Answer True True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True Your Answer True True/False Question Transfer of funds for investment abroad is allowed freely. Correct Answer True Your Answer False Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt
Your Answer Interest rate swap True/False Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Export Declaration form Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different country , It is a stamped agreement and is not valid unless it is signed by the issuer True/False Question CFR = FOB plus freight paid by seller + insurance paid by seller. Correct Answer False Your Answer True Select The Blank Question Even after liberalisation of exchange
controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OPEC True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance True/False Question Normally the forward contracts are booked for making huge profits. Correct Answer False Your Answer False True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True Your Answer False Select The Blank Question A ________ Bill of lading does not specify the terms and conditions of carriage. Correct Answer Short Form Your Answer Short Form Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can book :Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold. Correct Answer Gold Your Answer Interest Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer ADRs Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as ________. Correct Answer Counter Trade Your Answer Non money trade
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to be completed , Linking of issues to currency swaps Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control
the exchange rates Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export finance Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO Your Answer To further the cause of WTO Match The Following Question Correct Answer Your Answer Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling a currency Euro Market Market in Euro currencies Market in Euro currencies Making market Quoting rate for both buying and selling a currency Difference in prices of two legs of buying and selling Spread Price difference between bid and offer Maket of 'Euro' Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer Awkward Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi
Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer Protracted default by the buyer , Insolvency of the buyer
Chapter – 1 – Introduction to international capital markets Euro currency ; domestic markets ; US Japan ; Switzerland ; UK ; Australia ; Canada ; European ; centers in ECU; Chapter – 2 – International Finance Markets - the U.S. dollar Market ; The U.S. Dollar Market ; The Japanese Yen Market ; The Sterling Market ; The Euro Market Has Been discussed in the next chapter ; Recent development in international Finance Markets ; Chapter – 3 – International Monetary and Financial System The country’s central ban agreed to buy back their currency at a certain rate of gold; Melting down of gold was freely allowed ; There was unrestricted movement of gold (i.e. import and / or export) The total money supply in the country was determined by the quantum of gold reserves in the country The international monetary fund ; quotas ; funding facilities ; regular facilities tranche policies ; restore Tranche credit Tranche ; extended arrangement (extended fund facility (EEF) ; Standard Arrangement (enlarged Arrears Policy) Special facilities (compensatory and contingency financing facility (CCFF) Buffer stock Financing Facility ; Supplemental Reserve Policy (SRP); Reserve Tranche ; Credit Tranche ; Stand by arrangement ;
1 5 – 10
13 – 14
15 – 17
Extended arrangement or extended fund facilities (EFF) special facilities ; CCFF ; Buffer stock financing Facility (BSFF) ; Supplemental resources facility (SRF) Enhanced structural adjustment facility (ESAF) The fixed exchange rate system Problems faced by the fixed exchange rate system ; failure of fixed rate system ; the European monetary system (EMS) ; Economic and monetary union ; Recent developments ; post – Maastricht developments; emergence of EURO The group of seven ; special drawing rights (SDRS) ; The liquidity problems (SDRS) ; the world bank group ; the world bank; international development agency (IDA) ; international finance corporation (IFC) ; The multinational investment Guarantee Agency (MIGA) Chapter – 4 – External commercial borrowing – country ; company ; Equity ; Fund raising ; underwriting ; hedging ; arbitraging ; note issuance facility ; Mechanism and documentation ; syndicated loans ; floating rate notes ; Flip – Flop FRN ; MIS – Mich FRN ; MINI Max FRN ; Capped FRNs, Perpetual FRNs; VRN structured FRNs; Terms and conditions of FRN Ero Commercial paper (ECP) ; ADRs and GDRs; GDR – Global depositary Receipts ; The roles of different parties involved in launching of GDR GDR – Global Depositary Receipts ; The roles of different parties involved in launching of GDR steps involved in issuance of GDR are as follows Pricing and Closing ; costs ; Advantages & Disadvantages of external commercial borrowing Chapter – 5 – Documents used in International Trade ; Regulatory requirements ; operational requirements ; commercial documents ; financial documents transport documents ; risk covering documents ; official / regulatory documents ; miscellaneous documents ; Commercial documents ; proforma invoice ; commercial invoice ; consular invoice customs invoice ; legalized invoice ; combined certificate of origin and value ; financial documents ; bill of exchange ; The second of the same tenor and date unpaid ; the first of the same tenor and date unpaid ; or similar words ; sight B/E; Tenor ; time B/E; DP Basis ; document against Payment Basis ; Documents against Acceptance Basis Transport documents; bill of lading ; received for shipment bill of lading ; on board bill of lading ; Short form bill of lading ; long form bill of lading clean bill of lading ; claused bill of lading ; through bill of lading ; straight bill of lading ; charter party Bill of lading ; container bill of lading container bill of lading ; combined transport B/L or Mulit Modal B/L lash bill of lading house bill of lading ; Airway bill ; Air consignment Note ; House Air way bill ; Postal Receipt ; Courier /Expected delivery service ; multimodal transport document ; risk covering documents ; insurance policy ; Insurance cover note ; official documents export declaration forms ; export certificate; Certificate of origin ; Miscellaneous documents ; packing list ; weight certificate ; certificate of analysis and quality ; certificate of inspection ; health certificate ; phytosanitary / Radiation / Fumigation Chapter 6 – Methods of payment ; advance payment ; bill for collection ; open account ; barter trade ; bank guarantee ; letter of credit (L / C) Seller wants buyer wants ; parties to a documentary credit ; applicant issuing bank advising ; confirming bank beneficiary ; negotiating bank ; reimbursing bank Types of letters of credit ; revocal letter of credit ; irrevocable letter of credit ; confimed irrevocable letter of credit ; transferable l / c revolving letter of credit ; credit available by installments; back to back letter of credit ; anticipatory credit or red clause letter of credit ;
18 – 19 20 – 23 24 – 27 31 – 35 36 – 39
40 – 41 43 – 46
47 – 49
50 – 53
55 – 57
61 – 66
67 – 69
green clause letter of credit ; deferred payment letter of credit ; standby letter of credit ; flow chart of export transaction under letter of credit Flow chart of export transaction under letter of credit ; various steps in the transaction are as under ; steps no. description Chapter 7 – Export / Import Finance ; - Part I import finance ; import financing through trust receipts / import loans ; import financing through issuing l/ c or bank guarantee ; part II – Export Finance Timely ; adequate ; cheaper on liberal terms ; sources for raising finance ; own funds ; 2 friends and relative ; 3 advance payment from buyer ; 4 Trade credit from suppliers 5 banks and financial institutions ; pre-shipment credit (P.C) Post shipment credit ; advance agains t cash incentives / duty draw back ; forfeiting ; rediscounting of export bills abroad ; buyer’s credit ; supplier’s credit Chapter – 8 – Procedure in connection with foreign investment in India – Seciton – I foreign direct investment ; FERA ; the practice at which a company can issue shares to non residents ; fema ; esop ; section II – Foreign technical collaboration ; General Hotel & Tourism Related Industries ; procedure for granting approval; I / We hereby certify that ; Documentation ; Standard conditions attached to approval for technology agreement ; no objection ; the agreement shall be subject to Indian laws: Section – III – Portfolio investment ; explanation ; the regulations regarding portfolio investments by NRIs / PIOs are as under ; NRI / PIOs ; Section – IV – Other investments ; Section V – procedure for opening branch / project / Liaison office ; Chapter – 9 – Direct investment outside India – overseas investment division TDR ADR GDR the criteria for investment under the automatic route are as under ; JV/WOS; ODA; The schemes for overseas investment by partnership firms ; criteria for overseas investment by a registered partnership firm under the automatic route ; The procedure to be followed by a partnership firm for making investment under the automatic route ; the procedure to be followed by partnership firms which are not eligible under the automatic route ; restrictions for setting up of a second generation company ; resident individual India can acquire foreign securities without prior approval in the following cases ; provided that ; WOS Chapter – 10 – Taxation ; Bilateral relief Unilateral relief ; for the purpose of this provision Part – 2 Forex risk management and hedging techniques Chapter – 1 Foreign exchange markets – The international Market ; survey were ; the market ; the participants ; information and communication system ; the payment system ; the foreign exchange market in India Chapter – 2 – Exchange Rates – Exchange rage quotes ; direct and indirect rates ; direct rates ; indirect rates; spot and forward rates value rate; ready or cash ; value today ; TOM; spot ; forwards; glossary of market terms; Foreign exchange risks ; transactions exposure ; translation exposure ; economic exposure; Translation – moving towards a consensus ; economic exposure ; an overview ; scenario exchange rages in India ; Inward remittances export encashment of foreign currency travelers cheques ; encashment of foreign currency notes; outward remittances ; imports ; issuing foreign currency travelers cheques issuing foreign currency notes ; Type of transaction exchange rate nomenclature ; Factors affecting movement of exchange rates ; summary
70 – 71 73 – 74
75 -76 79 – 83 84 – 88 89 - 92 95 – 99
100 – 102
105 – 106 109 – 114 117 – 123
124 – 127
128 – 129
Chapter – 3 – Forward contracts - Forward cover for merchants – forward purchase cover forward sales contract - repayment of foreign currency loans – period of delivery – cross currency booking (sale / Purchase ) ; utilization of the forward cover ; cancellation ; calculation of exchange rates for forward contracts Cancellation ; early delivery and rollover of forward contracts ; forward sale contracts ; forward purchase contract ; early delivery ; rollover charges Chapter 4 – Options and Futures – History and development ; recent trends ; key features of options and futures ; premium ; maturity or expiration date ; exercise ; in the money ; at the money ; out of the money American option European option ; underlying asset price time before expiration ; underlying asset price ; time before expiration the rate of interest volatility Pricing and analysis ; pricing of options ; underlying asset price ; exercise price ; options and futures products today ; interest rate options ; foreign exchange options and futures ; equity linked options ; commodity linked futures and options Chapter – 5 - Swaps What are swaps ; interest rate swaps ; lowering financial cost ; hedge exposure to interest rate risk ; restructuring the debt in the balance sheet ; amortizing and accreting swaps ; forward swaps ; Reversible swaps ; basis swaps Currency swaps ; lowering funding cost ; entering restricted capital markets ; reducing currency risk ; supply demand imbalances in the markets ; amortizing currency swaps ; accreting currency swaps ; floating – for floating rate currency swaps ; interest payments ; asset swaps PART 3 – AGENCIES INVOLVED IN INTERNATIONAL TRADE Chapter – 1 – Export import Bank of India ; Functions of Exim Bank ; the exim bank performs the following functions ; incidental functions ; operations programmes ; direct financial assistance to exporters ; consultancy and technology services ; pre-shipment credit ; facilities for export – oriented units ; overseas investment facility buyer credit facilities for deemed exports small scale industry export bills rediscounting; the latest new schemes in operation since 1992 are the following Chapter – 2 – Reserve Bank of India Exchange controls in India – RBI as the exchange control authority ; Authorized dealers (Ads) ; Money changers ; other receipts ; payment for imports ; other payments ; delegation to Ads; securities ; foreign currency accounts; liberalization of exchange control Sodhani Committee Recommendations ; Exchange rate management ; Chapter – 3 – Foreign Exchange dealers association of India ; Uniform customs and practice for collection ; Chapter 4 – International chamber of commerce – ICC – WCF – IBCC – WCF Chapter – 5 – Export credit guarantee corporation of India ; ECGC; need for export credit insurance ; credit insurance policies ; scr or standard policy ; turnover policy ; small exporter policy ; specific shipment policy (short term); buyer wise policy ; specific policy for supply contract insurance cover for buyer’s credit and line of credit Services Policy ; construction works policy ; maturity factoring ; Guarantees to banks ; packing credit guarantee ; export production finance guarantee ; post – shipment credit guarantee ; export finance guarantee ; export performance guarantee; export finance (overseas lending ) Guarantee Part – 4 – Miscellaneous Chapter 1 – Exchange Earner’s foreign currency (EEFC)
131 – 137
138 – 141 143- 147
148 – 152 155 – 157
158 – 161
163 – 166
169 – 173
174 – 177 179 – 180 183 – 183 189 – 190
191
195
Status holder exporter ; individual professional ; others; permissible credits ; permissible debits ; Chapter 2 – Country Risk ; Quantifying country risk ; A comprehensive example ; use of country risk ; assessment ; Chapter 3 – International capital Budgeting - The Basic Frame work Chapter 4 – Incoterms – Group E departure EXW ; Group F Main carriage unpaid ; FAS ; FOB ; CFR ; CIF ; CPT ; CIP ; Group C; Group D ; Arrival DAF ; DES ; DEQ; DDU CTD / MTO ; DDP ; delivered duty paid (CTD / MTO) Chapter – 5 – Actuals ; arbitrage ; bankers’ acceptance bond (BAS) ; Bearer Bond ; Bid rate ; Bond ; Bull; call option ; caps ; cash commodity ; cash market ; cedel ; certificate of deposit (CD) class of option ; closing price ; commission ; commercial paper (CP) ; contract specifications ; convertible bond ; coupon ; cover; delivery ; delivery month ; equity ; equity swaps ; equity collar ; Eurobond ; Euro clear ; euro commercial paper; euro –currency ; Exercise price ; expiration date; floating rate note ; fundamental Analysis ; futures contract hedge ; Hybrid ; Interest Rate swap; Intermediation ; Intrinsic Value ; Libor ; Long margin ; margin call maturity naked position ; note issuance facility (NIF) Option ; overbought ; oversold ; physical market ; position ; premium purchaser ; put option ; settlement price short ; speculator ; strike price ; straight debt tap ; technical analysis tranche ; tombstone volatility ; volume ; withholding tax ; yankee bond ;
Chapter – 1 – Introduction to international capital markets
1
Ero currency market ; Domestic market ; US, Japan Switzerland ; uk, australia canada ; european conters in ECU ; Euro ; Asian doller market ; forex marker SDR ; ECU ; US dollar ; German ; Swiss ; Japanees ; France ; Canada ; Australia; Chaper - 2 - International financial Markets - The U.S.Dollar Market ; pricing ; federal reservice board; curency ; central bank of US ; The Japanese Yen Market ; Mof; Long Term Prime Rate ; 1970 japanese The Sterling Market ; 20th 19th century 1979 ; OECD Organization for economic co-operation & development EMS Exchange rate Mechanism; FRN ; Bulldog; the EURO Market has been discussed in the nex chapter Recent development in international financial markets ; septer 11 enron LtCN (Long term capital Management Brazil china and mexico; 1990 ; 1980 ; severe tests financial system; securitization forces banks ; attractive to browwerw; legal issues flexibility ; financial market development segement of ; swaps cash flow ; roject related; gain access to international ; marketability ; new financing techniques;
10
Chapter – 3 – International Monetary and Financial System
13
1945 ; 1944 ; intenrational world Bank for reconstruciton and development; second world war was european ; IMF International Monetary Fund; Gold standard first world war The country's Central Bank agreed to buy back their currency at a certain rate of gold; melting down of gold was freely allowed There was unrestricted movement of gold (I.e. import and / export The total money supply in the country was determined by the quantum of gold reserves in the country 1870 ; 1914 ; 1821 ; 1834 ; 1870 ; European countries gold standard in 1933 ; 1930 International Monetary Co-operation ; IBRD ; IMF ;
1 2 5 6 7 7 8 9
13 13 13 14 14 14
199 203 – 204 207- 212 215 – 217
218 -219 220 – 221
popularly known as world bank IMF ; the international monetary fund 1945 ; 1971 ; 25 years ; aims SDR ((special drawing rights ) 25% 1960 ; 1963 ; Gross domestic product; 5 years ; SDR 146 bn to SDR 212 ; 45% ; 1998 ; Two parts Funding Facilities ; Regular Facilities ; Special facilities ; restore tranche credit tranche ; compensatory and contingency financing facility (CCFF) ; Extended arrangement (Extended Fund Facility EEF) ; Buffer stock Financing Facility ; Standard Arrangement (Enlarged Arrears Policy ) ; Supplemental Reserve Policy (Supplemental Reserve Policy (SRP Reserve Tranche ; Credit Tranches ; Stand - By Arrangement Extended arrangement or extended fund facilities (EFF) Special Facilities ; CCFF ; Buffer Stock Financing Facility ; BSFF ; Supplemental Resource Facility (SRF) ; 1997 Enhance Structural Adjustment Facility (ESAF) ; The fixed exchange rate system US dollars 35 ounce of gold Problem faced by the fixed exchange rate system ; 1960 ; value apprehension ; delay in adjustment failure of fixed rate system ; the european monetary system (EMS) European Community Currency Snake ; 1973 ; EMS EC ECU European Currency Unit ; SDR ; ERM ; DM ; matrix german bundesbank EM ; PST ; ERM ; Economic and monetary Union ;
15 16 16 16 17 17 18 18 19 20 20 21
FEDAI does not require RBI perm business
True False
Corporates are allowed to raise funds abroad up to $ 15 million as short term finance if they have EPCG lice
True False Who books an option forward contract?
Party who is not definite about crystallisation of delivery date Party who is speculator Party who wants to make more profit Party who wants to accommodate the other party
b) c) d) IMF
India is a founder member of Which causes may force a country to restrict imports or restrict transfer of payments?
.
a)
Economic difficulties
b)
Balance of payment problems such as non availability of c) exchange reserves
d)
Strike by banks employees Non availability of appropriate transfer technology with banks
Buyer's Credit 2. Seller's
4
1
1. Available to seller abroad 2. Export Finance
Credit 3. Usance LC
6
3. Discounting export receivables
4. Forfaiting
3
4. Available to Buyer abroad 5. Seller paid only on maturity date 6. Import finance
International Finance_6
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question What do you mean by a derivative? Correct Answer One which has been derived from other fundamental instruments Your Answer One which has been derived from other fundamental instruments Multiple Choice Multiple Answer Question With reference to ECB, fund raising activity includes :Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares Your Answer Syndicate loans, issue of shares , Floating rate notes, bonds, debentures Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000 Match The Following Question Correct Answer Your Answer Merchant banking Portfolio management Note issuing and underwrting facility Securitization Issue of debt in the form of tradeable security Issue of debt in the form of tradeable security Prime borrower Highest credit rating Venture capital Traditional banking service Loans and cash credit against security Highest credit rating Select The Blank Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Correct Answer Credit Your Answer Intimation of shipment Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit Multiple Choice Single Answer Question Who introduced the worlds first exchange traded currency futures? Correct Answer Chicago Mercantile Exchange Your Answer Bretton woods Agreement Multiple Choice Single Answer Question Name the members of Exchange Banks association :Correct Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar, Your Answer All banks at any business center True/False Question In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer True
-1-
International Finance_6
Multiple Choice Multiple Answer Question What are the objectives of International Chamber of Commerce? Correct Answer Champion the global economy as a force of economic growth , Creating of job and prosperity Your Answer Champion the global economy as a force of economic growth , Creating of job and prosperity Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDU Multiple Choice Multiple Answer Question In which cases can a Resident Individual in India acquire foreign securities without prior approval? Correct Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Your Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Multiple Choice Single Answer Question The document formulated by the borrower of syndicated loan, and the arranger, which contains details of individual shares etc of co-lenders is known as :Correct Answer Memorandum of information Your Answer Memorandum of information Multiple Choice Multiple Answer Question Why does a Transaction exposure arise? Correct Answer Trading flows , Dividend or capital flows Your Answer Trading flows , Dividend or capital flows Match The Following Question Correct Answer Your Answer LastStage Form a single currency Form a single currency The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free movement of capital in EC Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary Institute Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to meet the convergence criteria and fix the exchange rates Multiple Choice Single Answer Question Value date means the date on which :Correct Answer Delivery of both the currencies will be made Your Answer Delivery of both the currencies will be made True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer True
-2-
International Finance_6
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question A Specific date forward contract can be booked so as to be :Correct Answer Payable on a specific date of the calendar month Your Answer Payable on a specific date of the calendar month True/False Question ECGC offers isurance protection to Indian exporters againt payment risks. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water. Your Answer Transport document representing movement of goods by water. Multiple Choice Multiple Answer Question Which document is used for transportation by air, rail, road, marine? Correct Answer Multimodal transport document , Combined Transport document Your Answer Multimodal transport document , Combined Transport document True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False Select The Blank Question After the second world war many countries adopted the route of ________ to give facelift to sagging economies. Correct Answer Devaluation of their currencies Your Answer Devaluation of their currencies Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer Insolvency of the buyer , Risk of strikes due to which commercial activity is haulted Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Single Answer Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be Correct Answer Following Tuesday if it is a working day in all the three centers Your Answer Following Tuesday if it is a working day in all the three centers
-3-
International Finance_6
Multiple Choice Multiple Answer Question Name the services provided by 'Reuter 3000' in forex market:Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates Your Answer Quotation of forex rates, interest rates , Calculate and quote rates for transactions Multiple Choice Single Answer Question What do you understand by a forex option? Correct Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price Your Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade Select The Blank Question The ________is a Floating rate index for swaps. Correct Answer US Commercial paper rate Your Answer US Commercial paper rate True/False Question Services of a Paying bank are taken when currencies of exporters country or the importers country is not involved in the transaction. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Which two countries were included to convert the group of five into the group of seven? Correct Answer Canada , Italy Your Answer Canada , Italy Multiple Choice Multiple Answer Question Which factors influence the valuation of cash flows? Correct Answer Incomplete capital market , Availability of projkect specific concessional finance, Your Answer Availability of projkect specific concessional finance, , volatility of exchange rates True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer False True/False Question Sandby credis are introduced by US Banks because they were not permitted to issue on demand guarantees. Correct Answer True Your Answer True
-4-
International Finance_6
Select The Blank Question The international liquidity problem was tackled effectively by a reserve asset known as ________. Correct Answer Special drawing right Your Answer Floating exchange True/False Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :Correct Answer Thursday if it is a working day at both the centers Your Answer Thursday if it is a working day at both the centers Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday Select The Blank Question During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer Indian Rupees Multiple Choice Single Answer Question Inhow many groups are INCOTERMS classified? Correct Answer Four Your Answer Four Multiple Choice Single Answer Question The Direct Investment abroad through share swap arrangement under normal route is permitted in a :Correct Answer JV/WOS Your Answer Holding Co Multiple Choice Single Answer Question Samuraibonds are Correct Answer Foreign yen bonds issued to non resident entities in Japanese Market Your Answer Foreign yen bonds issued to non resident entities in Japanese Market Select The Blank Question The large flow of money internationally was caused primarily by the oil price hikes engineered by ________. Correct Answer OPEC countries Your Answer European Countries True/False Question Proposal for Investment abroa by Indian not falling under automatic route are submitted to Exchange Control Department of RBI. Correct Answer True Your Answer True
-5-
International Finance_6
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question What do you mean by a derivative? Correct Answer One which has been derived from other fundamental instruments Your Answer One which has been derived from other fundamental instruments Multiple Choice Multiple Answer Question With reference to ECB, fund raising activity includes :Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares Your Answer Syndicate loans, issue of shares , Floating rate notes, bonds, debentures Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000 Match The Following Question Correct Answer Your Answer Merchant banking Portfolio management Note issuing and underwrting facility Securitization Issue of debt in the form of tradeable security Issue of debt in the form of tradeable security Prime borrower Highest credit rating Venture capital Traditional banking service Loans and cash credit against security Highest credit rating Select The Blank Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Correct Answer Credit Your Answer Intimation of shipment Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit Multiple Choice Single Answer Question Who introduced the worlds first exchange traded currency futures? Correct Answer Chicago Mercantile Exchange Your Answer Bretton woods Agreement Multiple Choice Single Answer Question Name the members of Exchange Banks association :Correct Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar, Your Answer All banks at any business center True/False Question In developed markets, speculators play important role in determining the trend of currency rates. Correct Answer True Your Answer True
-6-
International Finance_6
Multiple Choice Multiple Answer Question What are the objectives of International Chamber of Commerce? Correct Answer Champion the global economy as a force of economic growth , Creating of job and prosperity Your Answer Champion the global economy as a force of economic growth , Creating of job and prosperity Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDU Multiple Choice Multiple Answer Question In which cases can a Resident Individual in India acquire foreign securities without prior approval? Correct Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Your Answer Gift from a person outside India, or Inheritance from a person resident in or outside India , Security issued under Cashless employees stock option scheme Multiple Choice Single Answer Question The document formulated by the borrower of syndicated loan, and the arranger, which contains details of individual shares etc of co-lenders is known as :Correct Answer Memorandum of information Your Answer Memorandum of information Multiple Choice Multiple Answer Question Why does a Transaction exposure arise? Correct Answer Trading flows , Dividend or capital flows Your Answer Trading flows , Dividend or capital flows Match The Following Question Correct Answer Your Answer LastStage Form a single currency Form a single currency The First stage in the Europeand and Monetary Union (EMU) Free movement of capital in EC Free movement of capital in EC Stage II in EMU Establishment of European Monetary Institute Establishment of European Monetary Institute Stage III in EMU Members to meet the convergence criteria and fix the exchange rates Members to meet the convergence criteria and fix the exchange rates Multiple Choice Single Answer Question Value date means the date on which :Correct Answer Delivery of both the currencies will be made Your Answer Delivery of both the currencies will be made True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer True
-7-
International Finance_6
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question A Specific date forward contract can be booked so as to be :Correct Answer Payable on a specific date of the calendar month Your Answer Payable on a specific date of the calendar month True/False Question ECGC offers isurance protection to Indian exporters againt payment risks. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water. Your Answer Transport document representing movement of goods by water. Multiple Choice Multiple Answer Question Which document is used for transportation by air, rail, road, marine? Correct Answer Multimodal transport document , Combined Transport document Your Answer Multimodal transport document , Combined Transport document True/False Question Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer False Select The Blank Question After the second world war many countries adopted the route of ________ to give facelift to sagging economies. Correct Answer Devaluation of their currencies Your Answer Devaluation of their currencies Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer Insolvency of the buyer , Risk of strikes due to which commercial activity is haulted Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Single Answer Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be Correct Answer Following Tuesday if it is a working day in all the three centers Your Answer Following Tuesday if it is a working day in all the three centers
-8-
International Finance_6
Multiple Choice Multiple Answer Question Name the services provided by 'Reuter 3000' in forex market:Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates Your Answer Quotation of forex rates, interest rates , Calculate and quote rates for transactions Multiple Choice Single Answer Question What do you understand by a forex option? Correct Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price Your Answer Right and not the obligation to take or give future delivery of an agreed quantity at certain price True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade Select The Blank Question The ________is a Floating rate index for swaps. Correct Answer US Commercial paper rate Your Answer US Commercial paper rate True/False Question Services of a Paying bank are taken when currencies of exporters country or the importers country is not involved in the transaction. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Which two countries were included to convert the group of five into the group of seven? Correct Answer Canada , Italy Your Answer Canada , Italy Multiple Choice Multiple Answer Question Which factors influence the valuation of cash flows? Correct Answer Incomplete capital market , Availability of projkect specific concessional finance, Your Answer Availability of projkect specific concessional finance, , volatility of exchange rates True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer False True/False Question Sandby credis are introduced by US Banks because they were not permitted to issue on demand guarantees. Correct Answer True Your Answer True
-9-
International Finance_6
Select The Blank Question The international liquidity problem was tackled effectively by a reserve asset known as ________. Correct Answer Special drawing right Your Answer Floating exchange True/False Question Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer True Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :Correct Answer Thursday if it is a working day at both the centers Your Answer Thursday if it is a working day at both the centers Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer Monday Select The Blank Question During the fixed rate exchange system prevailing in India, the intervention currency was ________. Correct Answer Sterling Pound Your Answer Indian Rupees Multiple Choice Single Answer Question Inhow many groups are INCOTERMS classified? Correct Answer Four Your Answer Four Multiple Choice Single Answer Question The Direct Investment abroad through share swap arrangement under normal route is permitted in a :Correct Answer JV/WOS Your Answer Holding Co Multiple Choice Single Answer Question Samuraibonds are Correct Answer Foreign yen bonds issued to non resident entities in Japanese Market Your Answer Foreign yen bonds issued to non resident entities in Japanese Market Select The Blank Question The large flow of money internationally was caused primarily by the oil price hikes engineered by ________. Correct Answer OPEC countries Your Answer European Countries True/False Question Proposal for Investment abroa by Indian not falling under automatic route are submitted to Exchange Control Department of RBI. Correct Answer True Your Answer True
- 10 -
International Finance_6
- 11 -
International Finance_7
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question A Documentary credit issued on the strength of another documentary credit is known as ________. Correct Answer Back to Back credit Your Answer Back to Back credit True/False Question The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates. Correct Answer False Your Answer True True/False Question JV means Joint venture and WOS means World of Security. Correct Answer False Your Answer True Select The Blank Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR. Correct Answer 0.025 Your Answer 50 basis points over LIBOR True/False Question The working of the IBRD and IMF in recent has blurred the difference between the two Correct Answer True Your Answer True Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question In case the value date happens to be a holiday then the settlement is done :Correct Answer On the next working day Your Answer On the next spot day(third day) Select The Blank Question Legalised invoice is also called ________ invoice. Correct Answer Visaed Your Answer Visaed True/False Question The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer False Select The Blank Question An exchange rate for $ was48.2050, it is now 48.2075, then one says that it has moved ________ basis points Correct Answer 25
-1-
International Finance_7
Your Answer 0.0025 Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer An Irrevocable credit Select The Blank Question Profitability of a project in China to an Indian may be enhanced by ________. Correct Answer Concessionary finance available in China Your Answer Concessionary Finance available in India Multiple Choice Single Answer Question A country needs external commercial borrowings to :Correct Answer Meet the adverse balance of payments position Your Answer Meet the adverse balance of payments position Match The Following Question Correct Answer Your Answer Maturity of future Time when actual commodity is delivered Last date of exercising option Note issuance facility Euronotes Euronotes Bearer security issued in currency other than that of the country of issue Eurobonds Peformance bond or security deposit Margin on future Peformance bond or security deposit Time when actual commodity is delivered Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00 for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A. Your Answer 9.50 divided by 6 =1.58% P.A. Multiple Choice Multiple Answer Question With reference to ECB, fund raising activity includes :Correct Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares Your Answer Floating rate notes, bonds, debentures , Syndicate loans, issue of shares Multiple Choice Single Answer Question In which of the funding facilities the repayment period is between 3 to 5 years ? Correct Answer C.C.F.F. Your Answer Stand By Arrangement Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act Your Answer It represents title to goods , It is issued under Sale of Goods act Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows Your Answer The change in value of currency alters the home currency value of an asset , liability, , Inability to control various factors contributing to International trade
-2-
International Finance_7
Multiple Choice Single Answer Question The document formulated by the borrower of syndicated loan, and the arranger, which contains details of individual shares etc of co-lenders is known as :Correct Answer Memorandum of information Your Answer Participation certificate Multiple Choice Multiple Answer Question Why does a Transaction exposure arise? Correct Answer Trading flows , Dividend or capital flows Your Answer Trading flows , Dividend or capital flows Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover Multiple Choice Multiple Answer Question A Forward purchase contract was booked with an authorised dealer and subsequently cancelled .It :Correct Answer Can be booked again with another dealer , Can be booked again with the same dealer Your Answer Can be booked again with another dealer , Can be booked again with the same dealer True/False Question Floating rate notes are traded in secondary market also. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :Correct Answer Thursday if it is a working day at both the centers Your Answer Thursday if it is a working day at both the centers Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer American Dollar Multiple Choice Single Answer Question When was the first currency swap introduced in world market? Correct Answer 1970 Your Answer 1970 Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations
-3-
International Finance_7
Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , which have greater gold parity Multiple Choice Single Answer Question Under which method of payments is the buyer not required to pay till he gets the possession of the documents? Correct Answer Documents against payment terms specified in the bill of exchange Your Answer Documents against payment terms specified in the bill of exchange Multiple Choice Single Answer Question How does ECGC protect banker's against risks for export finance? Correct Answer Issuing various guarantees covering different risks connected with exports at nominal premium Your Answer Issuing various guarantees covering different risks connected with exports at nominal premium Multiple Choice Single Answer Question What is a bill of lading? Correct Answer Transport document representing movement of goods by water. Your Answer Transport document representing movement of goods by water. Select The Blank Question In Indian interbank market forward rates are generally quoted on the basis of ________. Correct Answer Calendar month Your Answer Calendar month Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt Your Answer Straight Debt True/False Question Yankee bond is issued for domestic borrowers. Correct Answer False Your Answer False Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer Buy when you are expecting fall in prices Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer USD 1=Rs 50.5000 + margin True/False Question Proposal for Investment abroa by Indian not falling under automatic route are submitted to Exchange Control Department of RBI. Correct Answer True Your Answer True Multiple Choice Single Answer Question What is LIBOR? Correct Answer Rate of interest for inter bank lending of funds for various maturities
-4-
International Finance_7
Your Answer Interest rate in Money Market in London Multiple Choice Multiple Answer Question The various arms of World Bank are: Correct Answer International Development Agency , Multinational Investment Guarantee Agency Your Answer International Development Agency , Multinational Investment Guarantee Agency , Asian Development Bank True/False Question The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. Correct Answer True Your Answer False Match The Following Question Correct Answer Your Answer Cancellation of contracts above USD 500000 ECD ECD Forward Purchase contract currency at premium Presume earliest delivery Presume earliest delivery Forward purchase contract currency at discount Presume latest delivery Presume latest delivery Exchange margins FEDAI FEDAI Multiple Choice Single Answer Question Value date means the date on which :Correct Answer Delivery of both the currencies will be made Your Answer Value of currency will be paid in terms of goods or commodities Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of protectionism Multiple Choice Single Answer Question What are the functions of Export Import Bank of India? Correct Answer Finance functions and development functions Your Answer Finance functions and development functions Multiple Choice Single Answer Question A weight list, a packing list used in international trade are which type of documents? Correct Answer Operational Documents Your Answer Bipartite documents Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer Companies which have international trade
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Chapter – 1 – Introduction to international capital markets Euro currency ; domestic markets ; US Japan ; Switzerland ; UK ; Australia ; Canada ; European ; centers in ECU; Chapter – 2 – International Finance Markets - the U.S. dollar Market ; The U.S. Dollar Market ; The Japanese Yen Market ; The Sterling Market ; The Euro Market Has Been discussed in the next chapter ; Recent development in international Finance Markets ; Chapter – 3 – International Monetary and Financial System The country’s central ban agreed to buy back their currency at a certain rate of gold; Melting down of gold was freely allowed ; There was unrestricted movement of gold (i.e. import and / or export) The total money supply in the country was determined by the quantum of gold reserves in the country The international monetary fund ; quotas ; funding facilities ; regular facilities tranche policies ; restore Tranche credit Tranche ; extended arrangement (extended fund facility (EEF) ; Standard Arrangement (enlarged Arrears Policy) Special facilities (compensatory and contingency financing facility (CCFF) Buffer stock Financing Facility ; Supplemental Reserve Policy (SRP); Reserve Tranche ; Credit Tranche ; Stand by arrangement ; Extended arrangement or extended fund facilities (EFF) special facilities ; CCFF ; Buffer stock financing Facility (BSFF) ; Supplemental resources facility (SRF) Enhanced structural adjustment facility (ESAF) The fixed exchange rate system Problems faced by the fixed exchange rate system ; failure of fixed rate system ; the European monetary system (EMS) ; Economic and monetary union ; Recent developments ; post – Maastricht developments; emergence of EURO The group of seven ; special drawing rights (SDRS) ; The liquidity problems (SDRS) ; the world bank group ; the world bank; international development agency (IDA) ; international finance corporation (IFC) ; The multinational investment Guarantee Agency (MIGA) Chapter – 4 – External commercial borrowing – country ; company ; Equity ; Fund raising ; underwriting ; hedging ; arbitraging ; note issuance facility ; Mechanism and documentation ; syndicated loans ; floating rate notes ; Flip – Flop FRN ; MIS – Mich FRN ; MINI Max FRN ; Capped FRNs, Perpetual FRNs; VRN structured FRNs; Terms and conditions of FRN Ero Commercial paper (ECP) ; ADRs and GDRs; GDR – Global depositary Receipts ; The roles of different parties involved in launching of GDR GDR – Global Depositary Receipts ; The roles of different parties involved in launching of GDR steps involved in issuance of GDR are as follows Pricing and Closing ; costs ; Advantages & Disadvantages of external commercial borrowing Chapter – 5 – Documents used in International Trade ; Regulatory requirements ; operational requirements ; commercial documents ; financial documents transport documents ; risk covering documents ; official / regulatory documents ; miscellaneous documents ; Commercial documents ; proforma invoice ; commercial invoice ; consular invoice customs invoice ; legalized invoice ; combined certificate of origin and value ; financial documents ; bill of exchange ; The second of the same tenor and date unpaid ; the first of the same tenor and date unpaid ;
1 5 – 10
13 – 14
15 – 17
18 – 19 20 – 23 24 – 27 31 – 35 36 – 39
40 – 41 43 – 46
47 – 49
or similar words ; sight B/E; Tenor ; time B/E; DP Basis ; document against Payment Basis ; Documents against Acceptance Basis Transport documents; bill of lading ; received for shipment bill of lading ; on board bill of lading ; Short form bill of lading ; long form bill of lading clean bill of lading ; claused bill of lading ; through bill of lading ; straight bill of lading ; charter party Bill of lading ; container bill of lading container bill of lading ; combined transport B/L or Mulit Modal B/L lash bill of lading house bill of lading ; Airway bill ; Air consignment Note ; House Air way bill ; Postal Receipt ; Courier /Expected delivery service ; multimodal transport document ; risk covering documents ; insurance policy ; Insurance cover note ; official documents export declaration forms ; export certificate; Certificate of origin ; Miscellaneous documents ; packing list ; weight certificate ; certificate of analysis and quality ; certificate of inspection ; health certificate ; phytosanitary / Radiation / Fumigation Chapter 6 – Methods of payment ; advance payment ; bill for collection ; open account ; barter trade ; bank guarantee ; letter of credit (L / C) Seller wants buyer wants ; parties to a documentary credit ; applicant issuing bank advising ; confirming bank beneficiary ; negotiating bank ; reimbursing bank Types of letters of credit ; revocal letter of credit ; irrevocable letter of credit ; confimed irrevocable letter of credit ; transferable l / c revolving letter of credit ; credit available by installments; back to back letter of credit ; anticipatory credit or red clause letter of credit ; green clause letter of credit ; deferred payment letter of credit ; standby letter of credit ; flow chart of export transaction under letter of credit Flow chart of export transaction under letter of credit ; various steps in the transaction are as under ; steps no. description Chapter 7 – Export / Import Finance ; - Part I import finance ; import financing through trust receipts / import loans ; import financing through issuing l/ c or bank guarantee ; part II – Export Finance Timely ; adequate ; cheaper on liberal terms ; sources for raising finance ; own funds ; 2 friends and relative ; 3 advance payment from buyer ; 4 Trade credit from suppliers 5 banks and financial institutions ; pre-shipment credit (P.C) Post shipment credit ; advance against cash incentives / duty draw back ; forfeiting ; rediscounting of export bills abroad ; buyer’s credit ; supplier’s credit Chapter – 8 – Procedure in connection with foreign investment in India – Seciton – I foreign direct investment ; FERA ; the practice at which a company can issue shares to non residents ; fema ; esop ; section II – Foreign technical collaboration ; General Hotel & Tourism Related Industries ; procedure for granting approval; I / We hereby certify that ; Documentation ; Standard conditions attached to approval for technology agreement ; no objection ; the agreement shall be subject to Indian laws: Section – III – Portfolio investment ; explanation ; the regulations regarding portfolio investments by NRIs / PIOs are as under ; NRI / PIOs ; Section – IV – Other investments ; Section V – procedure for opening branch / project / Liaison office ; Chapter – 9 – Direct investment outside India – overseas investment division TDR ADR GDR the criteria for investment under the automatic route are as under ; JV/WOS; ODA; The schemes for overseas investment by partnership firms ; criteria for overseas investment by a registered partnership firm under the automatic route ; The procedure to be followed by a partnership firm for making investment under the automatic route ; the procedure to be followed by partnership firms which are not eligible
50 – 53
55 – 57
61 – 66
67 – 69
70 – 71 73 – 74
75 -76 79 – 83 84 – 88 89 - 92 95 – 99
100 – 102
under the automatic route ; restrictions for setting up of a second generation company ; resident individual India can acquire foreign securities without prior approval in the following cases ; provided that ; WOS Chapter – 10 – Taxation ; Bilateral relief Unilateral relief ; for the purpose of this provision Part – 2 Forex risk management and hedging techniques Chapter – 1 Foreign exchange markets – The international Market ; survey were ; the market ; the participants ; information and communication system ; the payment system ; the foreign exchange market in India Chapter – 2 – Exchange Rates – Exchange rage quotes ; direct and indirect rates ; direct rates ; indirect rates; spot and forward rates value rate; ready or cash ; value today ; TOM; spot ; forwards; glossary of market terms; Foreign exchange risks ; transactions exposure ; translation exposure ; economic exposure; Translation – moving towards a consensus ; economic exposure ; an overview ; scenario exchange rages in India ; Inward remittances export encashment of foreign currency travelers cheques ; encashment of foreign currency notes; outward remittances ; imports ; issuing foreign currency travelers cheques issuing foreign currency notes ; Type of transaction exchange rate nomenclature ; Factors affecting movement of exchange rates ; summary Chapter – 3 – Forward contracts - Forward cover for merchants – forward purchase cover forward sales contract - repayment of foreign currency loans – period of delivery – cross currency booking (sale / Purchase ) ; utilization of the forward cover ; cancellation ; calculation of exchange rates for forward contracts Cancellation ; early delivery and rollover of forward contracts ; forward sale contracts ; forward purchase contract ; early delivery ; rollover charges Chapter 4 – Options and Futures – History and development ; recent trends ; key features of options and futures ; premium ; maturity or expiration date ; exercise ; in the money ; at the money ; out of the money American option European option ; underlying asset price time before expiration ; underlying asset price ; time before expiration the rate of interest volatility Pricing and analysis ; pricing of options ; underlying asset price ; exercise price ; options and futures products today ; interest rate options ; foreign exchange options and futures ; equity linked options ; commodity linked futures and options Chapter – 5 - Swaps What are swaps ; interest rate swaps ; lowering financial cost ; hedge exposure to interest rate risk ; restructuring the debt in the balance sheet ; amortizing and accreting swaps ; forward swaps ; Reversible swaps ; basis swaps Currency swaps ; lowering funding cost ; entering restricted capital markets ; reducing currency risk ; supply demand imbalances in the markets ; amortizing currency swaps ; accreting currency swaps ; floating – for floating rate currency swaps ; interest payments ; asset swaps PART 3 – AGENCIES INVOLVED IN INTERNATIONAL TRADE Chapter – 1 – Export import Bank of India ; Functions of Exim Bank ; the exim bank performs the following functions ; incidental functions ; operations programmes ; direct financial assistance to exporters ; consultancy and technology services ; pre-shipment credit ; facilities for export – oriented units ; overseas investment facility buyer credit facilities for
105 – 106 109 – 114 117 – 123
124 – 127
128 – 129 131 – 137
138 – 141 143- 147
148 – 152 155 – 157
158 – 161
163 – 166
deemed exports small scale industry export bills rediscounting; the latest new schemes in operation since 1992 are the following Chapter – 2 – Reserve Bank of India Exchange controls in India – RBI as the exchange control authority ; Authorized dealers (Ads) ; Money charges ; other receipts ; payment for imports ; other payments ; delegation to Ads; securities ; foreign currency accounts; liberalization of exchange control Sodhani Committee Recommendations ; Exchange rate management ; Chapter – 3 – Foreign Exchange dealers association of India ; Uniform customs and practice for collection ; Chapter 4 – International chamber of commerce – ICC – WCF – IBCC – WCF Chapter – 5 – Export credit guarantee corporation of India ; ECGC; need for export credit insurance ; credit insurance policies ; scr or standard policy ; turnover policy ; small exporter policy ; specific shipment policy (short term); buyer wise policy ; specific policy for supply contract insurance cover for buyer’s credit and line of credit Services Policy ; construction works policy ; maturity factoring ; Guarantees to banks ; packing credit guarantee ; export production finance guarantee ; post – shipment credit guarantee ; export finance guarantee ; export performance guarantee; export finance (overseas lending ) Guarantee Part – 4 – Miscellaneous Chapter 1 – Exchange Earner’s foreign currency (EEFC) Status holder exporter ; individual professional ; others; permissible credits ; permissible debits ; Chapter 2 – Country Risk ; Quantifying country risk ; A comprehensive example ; use of country risk ; assessment ; Chapter 3 – International capital Budgeting - The Basic Frame work Chapter 4 – Incoterms – Group E departure EXW ; Group F Main carriage unpaid ; FAS ; FOB ; CFR ; CIF ; CPT ; CIP ; Group C; Group D ; Arrival DAF ; DES ; DEQ; DDU CTD / MTO ; DDP ; delivered duty paid (CTD / MTO) Chapter – 5 – Actuals ; arbitrage ; bankers’ acceptance bond (BAS) ; Bearer Bond ; Bid rate ; Bond ; Bull; call option ; caps ; cash commodity ; cash market ; cedel ; certificate of deposit (CD) class of option ; closing price ; commission ; commercial paper (CP) ; contract specifications ; convertible bond ; coupon ; cover; delivery ; delivery month ; equity ; equity swaps ; equity collar ; Eurobond ; Euro clear ; euro commercial paper; euro –currency ; Exercise price ; expiration date; floating rate note ; fundamental Analysis ; futures contract hedge ; Hybrid ; Interest Rate swap; Intermediation ; Intrinsic Value ; Libor ; Long margin ; margin call maturity naked position ; note issuance facility (NIF) Option ; overbought ; oversold ; physical market ; position ; premium purchaser ; put option ; settlement price short ; speculator ; strike price ; straight debt tap ; technical analysis tranche ; tombstone volatility ; volume ; withholding tax ; yankee bond ;
169 – 173
174 – 177 179 – 180 183 – 183 189 – 190
191
195 199 203 – 204 207- 212 215 – 217
218 -219 220 – 221
International Finance_9 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Which functions does the Bill of Lading serve? Correct Answer It is a document of title to goods. , It is receipt of goods Your Answer It is a document of title to goods. , It is receipt of goods Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00 for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A. Your Answer 9.50% P.A. Multiple Choice Single Answer Question What is Sovereign Risk? Correct Answer Risk of lending to the government of a country Your Answer Risk of lending to the government of a country Multiple Choice Single Answer Question How does ICC help poor countries? Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False Your Answer True True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True Your Answer True True/False Question Transfer of funds for investment abroad
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International Finance_9 is allowed freely. Correct Answer True Your Answer False Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt Your Answer Interest rate swap True/False Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Export Declaration form Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an
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International Finance_9 undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different country , It is a stamped agreement and is not valid unless it is signed by the issuer True/False Question CFR = FOB plus freight paid by seller + insurance paid by seller. Correct Answer False Your Answer True Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OPEC True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance True/False Question Normally the forward contracts are booked for making huge profits. Correct Answer False Your Answer False True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True Your Answer False Select The Blank Question A ________ Bill of lading does not specify the terms and conditions of carriage.
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International Finance_9 Correct Answer Short Form Your Answer Short Form Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can book :Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold.
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International Finance_9 Correct Answer Gold Your Answer Interest Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer ADRs Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as ________. Correct Answer Counter Trade Your Answer Non money trade Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to be completed , Linking of issues to currency swaps Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP True/False Question PP Form is required when exports are made
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International Finance_9 to any country by post parcel on value payable basis. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control the exchange rates Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export finance Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO Your Answer To further the cause of WTO Match The Following Question Correct Answer Your Answer Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling a currency Euro Market Market in Euro currencies Market in Euro currencies Making market Quoting rate for both buying and selling a currency Difference in prices of two legs of buying and selling Spread Price difference between bid and offer Maket of 'Euro'
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International Finance_9 Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer Awkward Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer , Insolvency of the buyer Your Answer Protracted default by the buyer , Insolvency of the buyer
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International Finance_10
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer
Buffer Stock Facility
True/False Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar
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International Finance_10 Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not Cost of evluation does not justify analysis justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in Eurobonds currency other than that of the country of issue
Eurobonds
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International Finance_10 Margin on future
Peformance bond or security deposit
Peformance bond or security deposit
True/False Question
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. Correct Answer False Your Answer
False
True/False Question
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
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International Finance_10 Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer Preshipment credit up to six months for construction and turnkey projects abroad Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer
Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier
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International Finance_10 Your Answer
True/False Question
Sharing risk of Non payment by the Syndicate of Banks giving loans
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options. Correct Answer True Your Answer
True
True/False Question
There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade
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International Finance_10 Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer
An Irrevocable credit
True/False Question
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer
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International Finance_10 Question
What are the functions of Asian Development Bank?
Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount
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International Finance_10 Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer Prices of capital market instruments change and are expected to change drastically True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question What are the features of Settlement price ? Correct Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Your Answer Price established by the clearing house at the end of each trading session , It is used to determine the net gain, loss, margin call and next days price limits Select The Blank Question Legalised invoice is also called ________ invoice. Correct Answer Visaed Your Answer
Visaed
True/False Question
The working of the IBRD and IMF in recent has blurred the difference between the two Correct Answer True Your Answer
False
Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Select The Blank Question ________Bill of lading must specify the name of the ship. Correct Answer "On Board" Your Answer
"On Board"
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions
Your Answer
General market investments
Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression Your Answer
Great Depression
Match The Following Question
Correct Answer
Your Answer
Departure
EXW
EXW
Main carriage paid
CFR
CFR
Main carriage unpaid
FAS
FAS
Arrival
DES
DES
Multiple Choice Single Answer Question What is the statutory requirement about receivables of exports from India? Correct Answer The export receivables must be repatriated within six months of the date of shipment. Your Answer The export receivables must be repatriated within six months of the date of shipment. True/False Question
An exporter expecting payment in$ next month will book a forward purchase contract. Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of IDA Loan are: Correct Answer It gives loans to poorer countries , The rate of interest is zero percent , The repayment period is very long 40 years Your Answer It gives loans to poorer countries , The rate of interest is zero percent , The repayment period is very long 40 years Multiple Choice Multiple Answer Question What is the duty of the AD while booking a forward contract?
Correct Answer Verify the suitable documentary evidence, and that the customer is exposed to risk , Ensure that a genuine transaction exists Your Answer Verify the suitable documentary evidence, and that the customer is exposed to risk , Ensure that a genuine transaction exists , Protect the customer fully from exchange risk Multiple Choice Multiple Answer Question Criteria for Direct investment abroad under normal route :Correct Answer Viability of the proposal, and excellent track record of business , Experience and expertise of promoters, benefit to the country Your Answer Viability of the proposal, and excellent track record of business , Experience and expertise of promoters, benefit to the country , Total Financial commitment in JV/WOS as per prescribed ceiling Multiple Choice Single Answer Question When was the first currency swap introduced in world market? Correct Answer 1970 Your Answer
1970
True/False Question
Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question Who can issue the Certificate of Inspection? Correct Answer Export Inspection Council , Person authorised by Importer. Your Answer
Export Inspection Council , Person authorised by Importer. , Reserve Bank of India
Match The Following Question
Correct Answer
Your Answer
Cancellation of contracts above USD 500000
ECD
FEDAI
Forward Purchase contract currency at premium
Presume earliest delivery Presume earliest delivery
Forward purchase contract currency at discount
Presume latest delivery
Presume latest delivery
Exchange margins
True/False Question
FEDAI
ECD
Both futures and options are traded on a public exchange.
Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
GBP 300 billion
Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00 for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A. Your Answer
9.50 divided by 6 =1.58% P.A.
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted? Correct Answer Because of different tax systems , Because of different credit standards Your Answer Because of different tax systems , Because of different credit standards , Because of protectionism True/False
Question
The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The major cost components of NIF are :Correct Answer Underwriters fees , Margins of notes Your Answer
Underwriters fees , Documentation charges , Issue registration fees
True/False Question
FRN's issued with ceiling on interest beyond which the issues is not required to pay interest is known as Mini-Max FRN Correct Answer True Your Answer
False
Multiple Choice Single Answer Question A weight list, a packing list used in international trade are which type of documents? Correct Answer Operational Documents Your Answer
Optional documents
Select The Blank Question The credit which does not constitute a legally binding undertaking between the bank and the beneficiary is ________. Correct Answer Revocable Credit Your Answer
Revocable Credit
Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds , Linking of issues to currency swaps Multiple Choice Single Answer Question European currency Unit Correct Answer Basket of Currencies of members of EMS
Your Answer
Basket of Currencies of members of EMS
True/False Question
At Least one principal Lender bank is essential for issue of the ADR or GDR. Correct Answer False Your Answer
True
True/False Question
In an already booked forward contract, a person may seek early delivery, extension in period, or cancellation. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question A Run on gold gold by a country means Correct Answer Exchange of reserve currency in to gold Your Answer
Exchange of gold into Reserve Currency
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Single Answer Question The Direct Investment abroad through share swap arrangement under normal route is permitted in a :Correct Answer JV/WOS Your Answer
JV/WOS
Select The Blank Question FRNs are issued for a maturity period of ________ and are normally redeemed in one shot. Correct Answer 5-7 years Your Answer True/False
5-7 years
Question
Bid rate is bidders buying rate and offered rate is bidders selling rate. Correct Answer True Your Answer
True
True/False Question
Corporates are allowed to raise funds abroad up to $ 15 million as short term finance if they have EPCG license. Correct Answer True Your Answer
False
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer IMF, World Bank and local markets Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer
OECD
Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents , Authority who will issue the documents Multiple Choice Multiple Answer
Question
The crisis in global capital market in 2002-04 was due to
Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism Your Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question "Flip-Flop', 'Mini-Max', 'Capped' 'Perpetual' are the various types of ________. Correct Answer Floating Rate Note (FRN) Your Answer
Floating Rate Note (FRN)
Select The Blank Question Combined Certificate of Origin and Value are required by ________. Correct Answer Commonwealth Countries Your Answer
Commonwealth Countries
Multiple Choice Single Answer Question Bank with lowest Bid for fees etc and which undertakes the responsibility of loan syndication is called :Correct Answer The lead bank- leadmanager- arranger Your Answer
The lead bank- leadmanager- arranger
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Which functions does the Bill of Lading serve? Correct Answer It is a document of title to goods. , It is receipt of goods Your Answer It is a document of title to goods. , It is receipt of goods Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00 for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A. Your Answer 9.50% P.A.
Multiple Choice Single Answer Question What is Sovereign Risk? Correct Answer Risk of lending to the government of a country Your Answer Risk of lending to the government of a country Multiple Choice Single Answer Question How does ICC help poor countries? Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False Your Answer True True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True Your Answer True True/False Question Transfer of funds for investment abroad is allowed freely. Correct Answer True Your Answer False Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt Your Answer Interest rate swap True/False Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Export
Declaration form Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form Multiple Choice Multiple Answer Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different country , It is a stamped agreement and is not valid unless it is signed by the issuer True/False Question CFR = FOB plus freight paid by seller +insurance paid by seller. Correct Answer False Your Answer True Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OPEC True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance
True/False Question Normally the forward contracts are booked for making huge profits.
Correct Answer False Your Answer False True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True Your Answer False Select The Blank Question A ________ Bill of lading does not specify the terms and conditions of carriage. Correct Answer Short Form Your Answer Short Form Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can book :Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold. Correct Answer Gold Your Answer Interest
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer ADRs Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as ________. Correct Answer Counter Trade Your Answer Non money trade Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to be completed , Linking of issues to currency swaps Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control the exchange rates
Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export finance Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO Your Answer To further the cause of WTO Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer Awkward Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit Multiple Choice Single Answer Question In the context of International economy,the period between 1920s and 1930s is known as Correct Answer Great Depression Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer, Insolvency of the buyer Your Answer Protracted default by the buyer, Insolvency of the buyer
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question
Tranche' is a managed issue of securities in smaller denominations. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Select The Blank Question The creditworthiness of futures exchange is maintained through imposition of ________. Correct Answer Margin Your Answer
Penalty
Select The Blank Question After the second world war many countries adopted the route of ________ to give facelift to sagging economies. Correct Answer Devaluation of their currencies Your Answer True/False Question
Change of governments
FEDAI does not require RBI permission to frame and revise rules of business
Correct Answer False Your Answer
True
Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer
Deficit
Multiple Choice Multiple Answer Question Underwriters are more attracted to NIF issue because of :Correct Answer Lesser risks , Increased returns , Easy marketability features Your Answer
Lesser risks , Increased returns , Easy marketability features
True/False Question
Import finance is nomally available at rates of interest cheaper than domestic finance rates. Correct Answer False Your Answer
True
Multiple Choice Single Answer Question What is the Indian Govt's obligation of becoming member of IMF? Correct Answer Ensure orderly exchange arrangement, promote stable exchange rate Your Answer Introduce gold standard in exchange rate Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer
Preshipment credit , Post shipment credit
Select The Blank Question ________ enables bankers to extend purchase, negotiation or discount of export bills. Correct Answer Post shipment credit guarantee Your Answer
Specific shipment policy
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Cost of evluation does not justify analysis
Country risk analysis
Cost of evluation does not Banks are ahead justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
Drop the investment project
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer Denmark Your Answer
Austria
Multiple Choice Multiple Answer Question Name the services provided by 'Reuter 3000' in forex market:Correct Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates Your Answer Quotation of forex rates, interest rates , Electronic broking by matching the rates , Demat securities Multiple Choice Multiple Answer Question What options does the merchant have while booking a forward contract? Correct Answer Delivery on a Fixed date, within six months , Delivery on a date between two days separated by a period of maximum one month Your Answer Delivery on a Fixed date, within six months , Delivery on a date between two days separated by a period of maximum one month Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer
Roughly 90 % of the total turnover
True/False Question
ECGC offers isurance protection to Indian exporters againt payment risks. Correct Answer True Your Answer
True
True/False Question
CFR = FOB plus freight paid by seller + insurance paid by seller.
Correct Answer False Your Answer
False
Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Multiple Choice Multiple Answer Question In a documentary credit the word document means :Correct Answer Specified documents of title, transportation, insurance , Specified certificates, and other papers required as per the regulations in the buyers country Your Answer Specified documents of title, transportation, insurance Multiple Choice Single Answer Question What is the meaning of right to buy or sell the future contract? Correct Answer An Option Your Answer
A future
Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy Your Answer
Maturity Factoring
True/False Question
An Indian importing goods from USA pays dollars in India.
Correct Answer False Your Answer True/False Question
True
An Indian exporting goods to New York receives dollars in New York.
Correct Answer True Your Answer
True
Select The Blank Question A Dealer bought USD at 47.5000, in morning and the USD is quoted in the noon at 1 USD =48.2000/49.7000, then he has the opportunity for ________. Correct Answer Arbitrage Your Answer
Swap
Multiple Choice Single Answer Question The Direct Investment abroad through share swap arrangement under normal route is permitted in a :Correct Answer JV/WOS Your Answer
JV/WOS
Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer
Shelf Registration
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer
26
Multiple Choice Single Answer Question A Spot Transaction between Japanese Yen and Sterling carried out on Friday in Singapore, the settlement day will be Correct Answer Following Tuesday if it is a working day in all the three centers Your Answer
Following Thursday if it is a working day in all the three centers
Select The Blank Question Legalised invoice is also called ________ invoice. Correct Answer Visaed
Your Answer
Proforma
Multiple Choice Single Answer Question Who are the members of the Special committee on Indian Direct Investments abroad, for normal route? Correct Answer Representatives of Ministry of finance, Ministry of Economic affairs, Ministry of Commerce and RBI Your Answer Representatives of Ministry of finance, Ministry of Economic affairs, Ministry of Commerce and RBI Select The Blank Question For opening JV/WOS in Nepal, Bhutan, the ceiling for financial commitment per annum is ________. Correct Answer Rs. 350 crore Your Answer
Rs. 350 crore
Select The Blank Question The price at which a person may purchase or sell the underlying ________. Correct Answer Exercise or strike price Your Answer
Market price
True/False Question
Installment credit is issued for specific quantities of goods to be shipped every week or month. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The participants in the Forex Markets are :Correct Answer Non banking entities wishing to exchange currencies, , Banks and their clients , Speculators, arbitragers Your Answer Non banking entities wishing to exchange currencies, , Banks and their clients , Speculators, arbitragers Multiple Choice Multiple Answer Question What were the primary objectives of the group of seven countries? Correct Answer Bring down the external value of US Dollar , Bring some stability to exchange rates of all the countries Your Answer Bring down the external value of US Dollar , Bring some stability to exchange rates of all the countries True/False
Question
Transfer of funds for investment abroad is allowed freely.
Correct Answer True Your Answer
False
Multiple Choice Single Answer Question In which currency can the EEFC account be opened? Correct Answer Any Convertible currency Your Answer
Any Convertible currency
Multiple Choice Single Answer Question In International trade, Advance payment means :Correct Answer Providing up front cash Your Answer
Providing up front cash
Multiple Choice Single Answer Question Who books an option forward contract? Correct Answer Party who is not definite about crystallisation of delivery date Your Answer
Party who is speculator
Multiple Choice Single Answer Question What is a "Received for shipment" bill of lading ? Correct Answer It is not considered by the banks as a good security for financing. Your Answer
It is considered a very safe document
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts , Given by buyer or seller as commission Multiple Choice Single Answer Question How does ICC access Govt and influence Governmental decisions? Correct Answer Through national committees
Your Answer
Through national committees
Match The Following Question
Correct Answer
Your Answer
Investment under Automatic route
Form ODA
Form ODA
Proposal under non automatic route
RBI
Form NAR
Proposal under Normal route
Special Committee
Special Committee
Investment by partnerships not in core activity
form ODI
form ODI
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an unconditional undertaking True/False Question
Services of a Paying bank are taken when currencies of exporters country or the importers country is not involved in the transaction. Correct Answer False Your Answer
True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Fixed, Floating or Limited flexibility are used in the context of Correct Answer Exchange Rates Your Answer
Exchange Rates
Select The Blank Question Exim acts as ________ for Government, RBI and IDBI . Correct Answer An agent Your Answer
Authorised dealer
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer
Public Limited companies without international presence
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer
Anticipatory Credit
Multiple Choice Multiple Answer Question Which of these are considered as miscellaneous documents? Correct Answer Packing list , Weight certificate Your Answer
Packing list , Insurance cover note , PP Form
Select The Blank Question In ________ transaction the delivery is postponed from the agreed date. Correct Answer Rollover Your Answer True/False Question
Forward
Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations
Correct Answer True Your Answer
False
Multiple Choice Multiple Answer Question World Bank gives loans for Correct Answer Structural Adjustments , Infrastructure projects , BOP problems Your Answer
Structural Adjustments , BOP problems , Long term Working capital
Select The Blank Question The credit which does not constitute a legally binding undertaking between the bank and the beneficiary is ________. Correct Answer Revocable Credit Your Answer
Transferable credit
Multiple Choice Multiple Answer Question What non funded facilities are granted by Export Import Bank of India? Correct Answer Guarantee for Bid bond, execution of export project, for borrowings abroad, for retention of money , Advance payment Guarantee, performance guarantee Your Answer Advance payment Guarantee, performance guarantee , Letter of credits True/False Question
There is no difference between CIP and CIF contracts except the mode of transportation. Correct Answer True Your Answer
False
Multiple Choice Single Answer Question What is a coupon swap? Correct Answer Swap contract exchange of fixed rate payment system for a floating rate system Your Answer Exchange of fixed deposits to equity True/False Question
An Indian exporting goods to New York receives dollars in New York. Correct Answer True Your Answer
True
True/False Question
The credit rating of World Bank is high in the world Capital market because it operates at the debt equity ratio of 1:2 Correct Answer False Your Answer
True
Match The Following Question
Correct Answer
Certifiate of Origin
Export Promotion Council Risk covering Document
PP Form
Export Declaration form
Export Declaration form
Health Certificate
Fumigation certificate
Finance document
Certificate of Inspection
As per importers requirement
As per importers requirement
Your Answer
True/ False Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer
Individuals , firms, companies, resident in India
Multiple Choice Single Answer Question The 'On Board' bill of lading means bill of lading evidencing that :Correct Answer The goods are put on board a ship for shipment Your Answer
A bill of lading evidencing terms and conditions of carriage printed on it
Match The Following Question
Correct Answer
Your Answer
Netherlands
Guilder
Franc
Germany
Mark
Peseta
Ireland
Punt
Dollar
Luxemberg
Franc
Guilder
Multiple Choice Multiple Answer Question The World Bank Group Consists of Correct Answer International Development Association , International finance Corporation , Multinational Investment Guarantee Agency Your Answer Multinational Investment Guarantee Agency , Multinational Insurance Guarantee Agency Select The Blank Question Any company involved in foreign exchange transactions is exposed to ________ risk. Correct Answer Currency Your Answer
Currency
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
False
True/False Question
Floating rate notes are traded in secondary market also.
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value Multiple Choice Multiple Answer Question The investor is in the money when :Correct Answer The exercise price is below the spot price for a call option , The exercise price is above the spot price for a put option Your Answer The exercise price is below the spot price for a call option , The exercise price is above the spot price for a put option , The
exercise price is above the spot price for a call option True/False Question
The working of the IBRD and IMF in recent has blurred the difference between the two Correct Answer True Your Answer
True
Select The Blank Question For importing goods in India RBI insists on ________ value. Correct Answer CIF Your Answer
FOB
Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer
Surplus
Select The Blank Question FRNs are issued for a maturity period of ________ and are normally redeemed in one shot. Correct Answer 5-7 years Your Answer
Up to 1 year
Multiple Choice Multiple Answer Question What are the functions of International Finance Corporation? Correct Answer Help private enterprise by financing projects , Provide technical assistance to private enterprise Your Answer Help private enterprise by financing projects , Provide technical assistance to private enterprise Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
Select The Blank
Question
A Documentary credit issued on the strength of another documentary credit is known as ________. Correct Answer Back to Back credit Your Answer
Green clause credit
Multiple Choice Single Answer Question Value date means the date on which :Correct Answer Delivery of both the currencies will be made Your Answer
Value of currency will be paid in terms of goods or commodities
True/False Question
FEDAI does not require RBI permission to frame and revise rules of business Correct Answer False Your Answer
True
Select The Blank Question The major industrial power whose economy was not affected after the II world war was ________. Correct Answer USA Your Answer
UK
Multiple Choice Multiple Answer Question Major investors in NIF are :Correct Answer Commercial Banks , Non banking Finance companies , Insurance Companies Your Answer Non banking Finance companies , Insurance Companies , Individual investors abroad Multiple Choice Multiple Answer Question The crisis in global capital market in 2002-04 was due to Correct Answer Collapse of Enron , Collapse of Argentina's currency board , The war against terrorism Your Answer Collapse of Argentina's currency board , The war against terrorism Multiple Choice Multiple Answer Question Criteria for investment abroad under automatic route :Correct Answer Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling
Your Answer
Activity for investment is core activity of Indian Company. , Credit Rating of the CO to be A++
Multiple Choice Multiple Answer Question How does a company use swap to restructure debt, in its balance sheet? Correct Answer By resorting to floating rate from fixed rate , By resorting to fixed rate from floating rate Your Answer By resorting to floating rate from fixed rate , By resorting to fixed rate from floating rate , Prepayment of existing debts Select The Blank Question ________ is the price at which the market maker is prepared to borrow the money. Correct Answer Bid rate Your Answer
Selling price
Multiple Choice Single Answer Question Which type of Convertibility of Rupee launched in March 1992 ? Correct Answer Limited convertibility Your Answer
Limited convertibility
Multiple Choice Multiple Answer Question A Forward purchase contract was booked with an authorised dealer and subsequently cancelled .It :Correct Answer Can be booked again with another dealer , Can be booked again with the same dealer Your Answer Can be booked again with another dealer , Can be booked only for un booked portion of the contract. Multiple Choice Single Answer Question Name the members of Exchange Banks association :Correct Answer Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar, Your Answer
Foreign Banks at Bombay, Calcutta, Delhi, Madras, Amritsar,
Multiple Choice Single Answer Question If a dealer of securities is quoting rate as 200-250 then the rate 200 signifies which rate with reference to him? Correct Answer Bid rate Your Answer
Bid rate
Multiple Choice Single Answer
Question
What do you call a 'decreasing principal swap'?
Correct Answer Amortizing swap Your Answer
Amortizing swap
Multiple Choice Single Answer Question When does a bank have an absolute advantage, in respect of interest rate swaps? Correct Answer When it has advantage under fixed interest system as well as floating interest rate system Your Answer When it has advantage under fixed interest system as well as floating interest rate system Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Your Answer
Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer
International Maritime Bureau
Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer
Buffer Stock Facility
Your Answer
Buffer Stock Fa cility
True/False Question Correct Answer
Cross currency forward contract is not meaningful if original contract is in Rupees to USD True
Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer
US Dollar
Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify Cost of evluation does not justify analysis analysis
Stock market analysis
Banks are ahead
Factors' values
1
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Your Answer
Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer
Monday
Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer
Other managed Floating
Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency other than that of the country of issue
Eurobonds
Eurobonds
Margin on future
Peformance bond or security deposit
Peformance bond or security deposit
True/False Question Correct Answer
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. False
Your Answer
False
True/False Question Correct Answer
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. True
Your Answer
True
Multiple Choice Multiple Answer
2
Question
What are margins, with reference to futures market?
Correct Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer
USD 1 trillion
Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer Your Answer
By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the grou p of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer
Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer
Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions?
3
Correct Answer
US Dollar
Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer
Control by Government'
Your Answer
Recurrence
Select The Blank Question Th e Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer
Sharing of risk of non payment by supplier
Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer Your Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Your Answer
True/False Question
Payment Payment Payment Payment
of to of to
hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them
Funding Options in domestic yen market are Futures, FRAs, Call and put options.
4
Correct Answer
True
Your Answer
True
True/False Question Correct Answer
There is no difference between CIP and CIF contracts except the mode of transportation. True
Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer
Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit
5
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital ma rket Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters , , List of Providers of recently floated issue
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer
Buy when you are having short position
Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer Your Answer
He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank
6
Question
Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer
Discount
Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer
Prices of capital market instruments change and are expected to change drastically
Your Answer
Prices of capital market instruments change and are expected to change drastically
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Your Answer
Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been bla ck listed
1 5 – 10 13 – 14 15 – 17 18 – 19 20 – 23 24 – 27 31 – 35 36 – 39 40 – 41 43 – 46 47 – 49 50 – 53 55 – 57 61 – 66 67 – 69 70 – 71 73 – 74 75 -76 79 – 83 84 – 88
7
89 - 92 95 – 99 100 – 102 105 – 106 109 – 114 117 – 123 124 – 127 128 – 129 131 – 137 138 – 141 143- 147 148 – 152 155 – 157 158 – 161 163 169 174 179 183 189 191
– 166 – 173 – 177 – 180 – 183 – 190
195 199 203 – 204 207- 212 215 – 217 218 -219 220 – 221
Chapter – 1 – Introduction to international capital markets
1 Ero currency market ; Domestic market ; US, Japan Switzerland ; uk, australia canada ; european conters in ECU ; Euro ; Asian doller market ; forex marker 1 SDR ; ECU ; US dollar ; German ; Swiss ; Japanees ; France ; Canada ; Australia; 2 Chaper - 2 - International financial Markets - The U.S.Dollar Market ; pricing ; federal reservice board; curency ; central bank of US ; 5 The Japanese Yen Market ; Mof; Long Term Prime Rate ; 1970 japanese 6 The Sterling Market ; 20th 19th century 1979 ; OECD Organization for economic co-operation & development EMS Exchange rate Mechanism; FRN ; Bulldog; 7 the EURO Market has been discussed in the nex chapter Recent development in international financial markets ; septer 11 enron 7 LtCN (Long term capital Management Brazil china and mexico; 8 1990 ; 1980 ; severe tests financial system; securitization forces banks ; attractive to browwerw; legal issues flexibility ; financial market development segement of ; 9 swaps cash flow ; roject related; gain access to international ; marketability ; new financing techniques; 10 Chapter – 3 – International Monetary and Financial System 13 1945 ; 1944 ; intenrational world Bank for reconstruciton and development; second world war was european ; IMF International
13
8
Monetary Fund; Gold standard first world war The country's Central Bank agreed to buy back their currency at a certain rate of gold; 13 melting down of gold was freely allowed 13 There was unrestricted movement of gold (I.e. import and / export 14 The total money supply in the country was determined by the quantum of gold reserves in the country 14 1870 ; 1914 ; 1821 ; 1834 ; 1870 ; European countries gold standard in 1933 ; 1930 International Monetary Co-operation ; IBRD ; IMF ; 14 popularly known as world bank IMF ; the international monetary fund 1945 ; 1971 ; 25 years ; aims 15 SDR ((special drawing rights ) 25% 1960 ; 1963 ; Gross domestic product; 5 years ; SDR 146 bn to SDR 212 ; 45% ; 1998 ; Two parts 16 Funding Facilities ; Regular Facilities ; Special facilities ; restore tranche credit tranche ; compensatory and contingency financing facility (CCFF) ; 16 Extended arrangement (Extended Fund Facility EEF) ; Buffer stock Financing Facility ; 16 Standard Arrangement (Enlarged Arrears Policy ) ; Supplemental Reserve Policy (Supplemental Reserve Policy (SRP 17 Reserve Tranche ; Credit Tranches ; Stand - By Arrangement 17 Extended arrangement or extended fund facilities (EFF) 18 Special Facilities ; CCFF ; Buffer Stock Financing Facility ; BSFF ; Supplemental Resource Facility (SRF) ; 1997 18 Enhance Structural Adjustment Facility (ESAF) ; The fixed exchange rate system US dollars 35 ounce of gold 19 Problem faced by the fixed exchange rate system ; 1960 ; value apprehension ; delay in adjustment 20 failure of fixed rate system ; the european monetary system (EMS) European Community 20 Currency Snake ; 1973 ; EMS EC ECU European Currency Unit ; SDR ; ERM ; DM ; matrix german bundesbank 21 EM ; PST ; ERM ; Economic and monetary Union ; Top of Form LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Correct Answer
Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations True
Your Answer
True
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False
Select The Blank Question The rate of interest on rupee finance for exports is not exceeding ________ less than PLR. Correct Answer 0.025
9
Your Answer
50 basis points over LIBOR
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment
Multiple Choice Single Answer Question In the syndicated loan arrangement the borrower has to execute :Correct Answer
Single Principal loan agreement
Your Answer
Single Principal loan agreement
True/False Question
At Least one principal Lender bank is essential for issue of the ADR or GDR.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer Question US financial system is the freest system because Correct Answer
Institutions can introduce new products and instuments at the price of their choice.
Your Answer
Institutions can introduce new products and instuments at the price of their choice.
Multiple Choice Single Answer Question In a coupon swap who is called the buyer? Correct Answer
One who pays the fixed rate of interest
Your Answer
One who pays the fixed rate of interest
True/False Question
Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer
False
Your Answer
False
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer
Overseas investment facility
Multiple Choice Single Answer
10
Question Correct Answer
Under the automatic route of Direct Investment Abroad, what is the restriction on market purchases? 50% of the net worth of the investing company
Your Answer
50% of the net worth of the investing company
Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer
Purchase and sell foreign currency notes and travellers cheques
Your Answer
Purchase and sell foreign currency notes and travellers cheques and also Give export finance
Select The Blank Question Any company involved in foreign exchange transactions is exposed to ________ risk. Correct Answer
Currency
Your Answer
Currency
Multiple Choice Multiple Answer Question What are the features of Settlement price ? Correct Answer Your Answer
Price established to determine the Price established to determine the
by the clearing house at the end of each trading session , It is used net gain, loss, margin call and next days price limits by the clearing house at the end of each trading session , It is used net gain, loss, margin call and next days price limits
Multiple Choice Multiple Answer Question What are the activities of ICC? Correct Answer
Aribtration and dispute resolving , Canvass for open trade combat commercial crime
Your Answer
Aribtration and dispute resolving , Canvass for open trade combat commercial crime , Increased Govt regulation of Business
True/False Question
Cause of increase in cost of public issues Underwriting fees , selling commission
Correct Answer
True
Your Answer
False
Select The Blank Question The currency swaps used ________. Correct Answer
To lower the risk of currency exposure
Your Answer
To lower the risk of currency exposure
True/False Question
The Option period in the forward contract is at the option of the Banker, hence the bank has to be very conservative in quoting rates.
11
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer Question Which factors affect the exchange rates in short time period? Correct Answer
Demand and supply, interest rates, inflation, , Sentiment, Speculation
Your Answer
Demand and supply, interest rates, inflation, , Sentiment, Speculation , GDP,Balance of trade and payment,Unemployment
Match The Following Question
Correct Answer
Your Answer
Departure
EXW
EXW
Main carriage paid
CFR
CFR
Main carriage unpaid
FAS
FAS
Arrival
DES
DES
Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Your Answer
True/False Question
Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds , Linking of issues to currency swaps
In red clause credit some clauses are printed in Red ink.
Correct Answer
True
Your Answer
False
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Your Answer
Payment Payment Payment Payment
of to of to
hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the bid rate for USD? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
12
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Multiple Answer Question Criteria for investment abroad under automatic route :Correct Answer Your Answer
Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling Activity for investment is core activity of Indian Company. , Total Financial commitment in JV/WOS as per prescribed ceiling
Multiple Choice Multiple Answer Question Who can issue the Certificate of Inspection? Correct Answer
Export Inspection Council , Person authorised by Importer.
Your Answer
Export Inspection Council , Person authorised by Importer.
Multiple Choice Single Answer Question Large number of exporters from which country are enjoying the privilege of receiving up front cash from importers in Russia? Correct Answer United Kingdom Your Answer
True/False Question
United Kingdom
Correct Answer
In developed markets, speculators play important role in determining the trend of currency rates. True
Your Answer
True
Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer
Shelf Registration
Select The Blank Question In Overseas market the forward rate is generally quoted on the basis of ________. Correct Answer
Fixed date
Your Answer
Calendar month
Select The Blank Question Forward Margin makes a currency costlier then the currency is at ________.
13
Correct Answer
Premium
Your Answer
Discount
Multiple Choice Multiple Answer Question These are the parties to the documentary credit :Correct Answer
Negotiating Bank, advising bank , Reimbursing bank, Confirming bank
Your Answer
Negotiating Bank, advising bank , Reimbursing bank, Confirming bank
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Single Answer Question Fixed, Floating or Limited flexibility are used in the context of Correct Answer
Exchange Rates
Your Answer
Exchange Rates
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer
Denmark
Your Answer
UK
Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Multiple Choice Single Answer Question To whom is an AD required to report the cancellation of forward contracts? Correct Answer
No one at all.
Your Answer
To Reserve Bank of India, fortnightly
Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy
14
Your Answer
True/False Question
Export Performance Guarantee
Correct Answer
The Negotiating bank examines the documents submitted by the seller and makes payment if they comply the terms and conditions of the LC. True
Your Answer
True
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer
Suppliers credit , Forfaiting
Your Answer
Suppliers credit , Forfaiting
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer
Discount
Your Answer
Discount
Multiple Choice Single Answer Question Name the common forex derivatives :Correct Answer
Options, futures
Your Answer
Options, futures
True/False Question
Country risk analysis is a futile exercise in the background of cost of analysis.
Correct Answer
True
Your Answer
False
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer
OECD
15
Match The Following Question
Correct Answer
Your Answer
Issues linked with LIBOR,LIBID,LIMEAN
FRNs
FRNs
Issue of bonds without fixed rate of interest, linked to short term interest rate in the global market
FloatingRate Note
FloatingRate Note
Issue of loans internationally,through arranger, underwriter,co manager, for a large amount for sharing risk of lending
Syndicated Loans
Syndicated Loans
Equity issues in the foreign markets either as direct investments or portfolio investments.
American or Global Depository Receipts
American or Global Depository Receipts
Bottom of Form
16
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Your Answer
Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer
International Maritime Bureau
Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer
Buffer Stock Facility
Your Answer
Buffer Stock Facility
True/False Question Correct Answer
Cross currency forward contract is not meaningful if original contract is in Rupees to USD True
Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer
US Dollar
Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
1
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Your Answer
Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer
Monday
Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer
Other managed Floating
Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency Eurobonds other than that of the country of issue
Eurobonds
Margin on future
Peformance bond or security deposit
True/False Question
Peformance bond or security deposit
Correct Answer
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. False
Your Answer
False
True/False Question Correct Answer
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. True
Your Answer
True
Multiple Choice Multiple Answer
2
Question
What are margins, with reference to futures market?
Correct Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Your Answer
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer
USD 1 trillion
Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer Your Answer
By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer
Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer
Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer
US Dollar
3
Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer
Control by Government'
Your Answer
Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer
Sharing of risk of non payment by supplier
Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer Your Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Your Answer
True/False Question
Payment Payment Payment Payment
of to of to
hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them
Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer
True
Your Answer
True
4
True/False Question Correct Answer
There is no difference between CIP and CIF contracts except the mode of transportation. True
Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer
Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand
5
Correct Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer
Buy when you are having short position
Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer Your Answer
He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies
Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer
Discount
6
Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Your Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer
Prices of capital market instruments change and are expected to change drastically
Your Answer
Prices of capital market instruments change and are expected to change drastically
True/False Question
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Your Answer
Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer True/False Question
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Correct Answer
Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. False
Your Answer
False
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Select The Blank
7
Question
A Credit can be a confirmed credit only if it is also ________.
Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Banks are ahead
Weightages %
Factors' values
Factors' values
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Multiple Choice Single Answer Question What is the meaning of a country risk? Correct Answer Your Answer
Risk of events in a particular country which may cause loss to a person dealing with that country Risk of events in a particular country which may cause loss to a person dealing with that country
Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Your Answer
Names of consigner, consignee , The port of loading and unloading, contract of shipment Names of consigner, consignee , The port of loading and unloading, contract of shipment
Multiple Choice Single Answer Question What help does EXIM Bank provide under the scheme 'Direct Financial assistance to exporters'? Correct Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Your Answer Funds are provided under deferred payment terms to Indian exporter for credit to foreign buyer Match The Following Question
Correct Answer
Your Answer
PP Form
Export Declaration form
Export Declaration form
8
Health Certificate
Fumigation certificate
Fumigation certificate
Certificate of Inspection
As per importers requirement
As per importers requirement
Certifiate of Origin
Export Promotion Council
Export Promotion Council
Select The Blank Question Even after liberalisation of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer
OECD
Multiple Choice Single Answer Question How many INCOTERMS are there in "Departure" Group? Correct Answer
One
Your Answer
Two
Multiple Choice Single Answer Question What is a bill of lading? Correct Answer
Transport document representing movement of goods by water.
Your Answer
Transport document representing movement of goods by water.
True/False Question Correct Answer
The American Dollar market comprises of the domestic segment of USD the offshore segment of USD. True
Your Answer
True
Select The Blank Question The creditworthiness of the futures seller and the futures buyer is ________ because of the presence of the Futures exchange. Correct Answer Irrelevant Your Answer
Irrelevant
Multiple Choice Single Answer Question What was the collective assessment of International financial market about the country risk of many cnuntries in the last decade? Correct Answer Whatever it was, was disastrously wrong. Your Answer
Whatever it was, was disastrously wrong.
Multiple Choice Multiple Answer Question How is the entry into any conuntry's money market or capital market is restricted?
9
Correct Answer
Because of different tax systems , Because of different credit standards
Your Answer
Because of different tax systems , Because of different credit standards
True/False Question
Till August 1994 India was following the Indirect Methodof Rate quotation.
Correct Answer
False
Your Answer
True
Select The Blank Question In Indian interbank market forward rates are generally quoted on the basis of ________. Correct Answer Calendar month Your Answer
Calendar month
Select The Blank Question Rupee was liberalised on ________ account in 1993, and on current account in 1994. Correct Answer
Trade
Your Answer
Trade
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer
Other managed Floating
Your Answer
Other managed Floating
Multiple Choice Multiple Answer Question Which of these are considered as miscellaneous documents? Correct Answer
Packing list , Weight certificate
Your Answer
Packing list , Weight certificate
True/False Question
Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer
True
Your Answer
True
Select The Blank Question ECGC provides cover to an Indian contractor for construction work abroad under ________. Correct Answer Construction works policy Your Answer
Construction works policy
10
Multiple Choice Single Answer Question Equity can be raised internationallly by a company through :Correct Answer
Fund raising, underwriting, hedging , arbitration operations
Your Answer
Fund raising, underwriting, hedging , arbitration operations
Multiple Choice Single Answer Question How many Countries participated in the third survey on Foreign Exchange, coordinated by BIS in 1992? Correct Answer 26 Your Answer
True/False Question
26
In red clause credit some clauses are printed in Red ink.
Correct Answer
True
Your Answer
True
True/False Question
Prior approval of RBI is needed for payment of all imports.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer Question The factors which affect the performance of an option are:Correct Answer
Underlying asset price , Time before expiration, rate of interest
Your Answer
Underlying asset price , Time before expiration, rate of interest
Multiple Choice Single Answer Question What is the immediate cause for the growth of futures and options in the last two decades? Correct Answer Increase in volatile trading conditions Your Answer
Management of external risk
Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer
Overseas investment facility
Select The Blank Question To make the export more competitive and remunerative, the Indian Govt extends ________ facility.
11
Correct Answer
Cash Incentives
Your Answer
Advance against cash incentives
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Your Answer
Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent
Multiple Choice Multiple Answer Question External Commercial Debt market :Correct Answer
Prevails in Domestic market of foreign country , Prevails in offshore markets
Your Answer
Prevails in Domestic market of foreign country , Prevails in offshore markets
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Multiple Choice Multiple Answer Question What do you understand by 'Foreign Exchange Risk'? Correct Answer Your Answer
The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows The change in value of currency alters the home currency value of an asset , liability, , The change in value of currency alters the home currency value of profit, loss, or future cash flows , Certainty of an event which would happen in favour of the importer/ exporter
Multiple Choice Single Answer Question For a spot transaction carried out on Tuesday, where both centers have holiday on Wednesday, currencies will be exchanged on :Correct Answer Thursday if it is a working day at both the centers Your Answer
Friday
Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer
Particulars of cancellation of forward cover for the equivalent of USD 500,000
Your Answer
Particulars of cancellation of forward cover for the equivalent of USD 500,000
True/False Question
In the forward rate quotations between two currencies, when one currency is at discount the other currency is at premium.
12
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Select The Blank Question A Bill of exchange payable 45 days from date of shipment, is a means of ________ from seller to the buyer. Correct Answer Credit Your Answer
Credit
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer
Preshipment credit beyond six months for construction and turnkey projects abroad
Your Answer
Preshipment credit beyond six months for construction and turnkey projects abroad
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Your Answer
True/False Question
Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Correct Answer
Import finance is nomally available at rates of interest cheaper than domestic finance rates. False
Your Answer
False
Multiple Choice Multiple Answer Question Major investors in NIF are :Correct Answer
Commercial Banks , Non banking Finance companies , Insurance Companies
Your Answer
Commercial Banks , Non banking Finance companies
Select The Blank Question In mid 1992 ________ rejected the ratification of Maastricht treaty Correct Answer
Denmark
Your Answer
Denmark
13
True/False Question Correct Answer
Indian companies are now allowed to freely invest abroad up to $1.5 million, raised through GDE or EEFC without prior permission from RBI. False
Your Answer
True
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Your Answer
Select The Blank Question
Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates
________ is the agency of ICC which deals with the maritime crime.
Correct Answer
International Maritime Bureau
Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer
Buffer Stock Facility
Your Answer
Buffer Stock Facility
True/False Question Correct Answer
Cross currency forward contract is not meaningful if original contract is in Rupees to USD True
Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer Your Answer
The exercise or strike price, the amount , The expiration date and time, the method of payment The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option
Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer
US Dollar
Your Answer
US Dollar
Match The Following
14
Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
Weightages %
Factors' values
100% of total
Select The Blank Question Correct Answer Your Answer
Global capital market can be understood from the study of ________. Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country
Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer
Monday
Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer
Other managed Floating
Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency Eurobonds other than that of the country of issue
Eurobonds
Margin on future
Peformance bond or security deposit
True/False Question
Peformance bond or security deposit
Correct Answer
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument. False
Your Answer
False
15
True/False Question Correct Answer
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. True
Your Answer
True
Multiple Choice Multiple Answer Question What are margins, with reference to futures market? Correct Answer Your Answer
Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts
Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer
USD 1 trillion
Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer Your Answer
By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Your Answer
Select The Blank Question
Preshipment credit beyond six months for construction and turnkey projects abroad Preshipment credit up to six months for construction and turnkey projects abroad
Correct Answer
Over the years ________has been the most widely accepted currency in international capital market. American Dollar
Your Answer
American Dollar
Select The Blank Question
As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily.
16
Correct Answer
Economies
Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer
US Dollar
Your Answer
US Dollar
Select The Blank Question
________ is the acid test for events to be included in country risk.
Correct Answer
Control by Government'
Your Answer
Recurrence
Select The Blank Question Correct Answer
The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Brussels
Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer
Sharing of risk of non payment by supplier
Your Answer
Sharing risk of Non payment by the Syndicate of Banks giving loans
True/False Question
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer
Your Answer
It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country
Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer
Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
17
Your Answer
True/False Question
Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them
Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer
True
Your Answer
True
True/False Question Correct Answer
There is no difference between CIP and CIF contracts except the mode of transportation. True
Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer
Companies which have international trade
Your Answer
Companies which have international trade
Select The Blank Question Correct Answer
When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Core activity
Your Answer
Primary activity
Select The Blank Question
A Credit can be a confirmed credit only if it is also ________.
Correct Answer
An Irrevocable credit
Your Answer
An Irrevocable credit
True/False Question Correct Answer
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. False
Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
18
Multiple Choice Multiple Answer Question Export finance Correct Answer
Preshipment credit , Post shipment credit , Duty Draw back
Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand Correct Answer
Which are convertible , Which have liquidity confirmed in Euro market operations
Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Your Answer
Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market
Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Your Answer
Select The Blank Question
Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue
Correct Answer
Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Euro Commercial Papers
Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer
Buy when you are having short position
Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer?
19
Correct Answer Your Answer
Select The Blank Question
He gets of rates He gets of rates
the flexibility to exposure , He is exposed to additional risk of movement between 3 currencies the flexibility to exposure , He is exposed to additional risk of movement between 3 currencies
Forward margin makes a currency cheaper then the currency is at ________.
Correct Answer
Discount
Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Your Answer
True/False Question
Prices of capital market instruments change and are expected to change drastically Prices of capital market instruments change and are expected to change drastically
JV means Joint venture and WOS means World of Security.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Your Answer
Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Which functions does the Bill of Lading serve? Correct Answer It is a document of title to goods., It is receipt of goods Your Answer It is a document of title to goods. ,It is receipt of goods Multiple Choice Single Answer Question A Bank quotes interest rate of 9.50/10.00for six months dollar deposit, here the bid rate is :Correct Answer 9.50% P.A. Your Answer 9.50% P.A. Multiple Choice Single Answer
20
Question What is Sovereign Risk? Correct Answer Risk of lending to the governmentof a country Your Answer Risk of lending to the government of acountry Multiple Choice Single Answer Question How does ICC help poor countries? Correct Answer Attract Foreign Direct investments togeather with UNCTAD Your Answer Attract Foreign Direct investments togeather with UNCTAD Multiple Choice Multiple Answer Question As per BIS, recovery from the recent crisis in global capital market was mainly due to Correct Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign Direct Investments , free flow of credit Your Answer Rapid and appropriate policy response in US and other countries , Increase in Foreign DirectInvestments , free flow of credit True/False Question Out of 15 member countries in European Union 12 countries commiteed themselves for a single currency. Correct Answer False Your Answer True True/False Question In red clause credit some clauses are printed in Red ink. Correct Answer True Your Answer True True/False Question Transfer of funds for investment abroad is allowed freely. Correct Answer True Your Answer False Select The Blank Question EEFC account holder is allowed to have ________ facility. Correct Answer Cheque book and nomination Your Answer Credit card, safe custody, safe deposit locker without any fee Select The Blank Question Fixed interest rate Eurobond without the option to convert to equity is known as ________. Correct Answer Straight Debt Your Answer Interest rate swap True/False Question An Indian importing goods from USA pays dollars in India. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer PP Form Export Declaration form Export Declaration form Health Certificate Fumigation certificate Export Declaration form Certificate of Inspection As per importers requirement Export Declaration form Certifiate of Origin Export Promotion Council Export Declaration form Multiple Choice Multiple Answer
21
Question For issuing a Documentary credit The applicant is required to provide to the issuing bank details about Correct Answer The purchase-sales contract, the mode of payment, the tenor of payment , The documents required, the names of authorities who would issue the documents Your Answer The purchase-sales contract, the mode of payment, the tenor of payment , The track record of the buyer and seller Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given on behalf of a certain person to another person in different country , It is a stamped agreement and is not valid unless it is signed by the issuer True/False Question CFR = FOB plus freight paid by seller + insurance paid by seller. Correct Answer False Your Answer True Select The Blank Question Even after liberalization of exchange controls, the Euro sterling market remained volatile because of uncertainties in UK and gyrations of sterling against major ________ countries Correct Answer OECD Your Answer OPEC True/False Question Integrated branches of Commercial banks handle forex transactions as well as options, swaps, futures, arbitrage operations Correct Answer True Your Answer True Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer Supplemental Reserve Policy Multiple Choice Multiple Answer Question What are the sources of raising funds for exports? Correct Answer Suppliers credit , Forfaiting Your Answer Suppliers credit , Forfaiting , Buyers credit , Foreign currency or Rupee finance True/False Question Normally the forward contracts are booked for making huge profits. Correct Answer False Your Answer False True/False Question Head office of ICC is in Paris because of its First President Eliance Clementel. Correct Answer True Your Answer False Select The Blank Question A ________ Bill of lading does not specify the terms and conditions of carriage.
22
Correct Answer Short Form Your Answer Short Form Multiple Choice Single Answer Question What is the volume of the world's total speculative transactions? Correct Answer Roughly 90 % of the total turnover Your Answer 70% of the total turnover True/False Question Till August 1994 India was following the Indirect Methodof Rate quotation. Correct Answer False Your Answer False Select The Blank Question For setting up joint ventures abroad or equity participation abroad, EXIM bank provides funds under ________ Scheme. Correct Answer Overseas investment facility Your Answer Overseas investment facility Multiple Choice Single Answer Question Mr P has exported goods in May 2005 and is expecting payment of Euro 25000 by the last week of Sept 2005. Give details of the forward contract he can book :Correct Answer He can book a sale contract any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Your Answer He can book a contract for Forward Purchase, any time from May 2005 till Mid Sept 2005, for Euro 25000 or less, for maturity last week of Sept. Select The Blank Question In US Capital Market a Company prepares all the necessary documents in advance of the public issue under the facility known as ________. Correct Answer Shelf Registration Your Answer Shell Registration Multiple Choice Multiple Answer Question Which common details will be available in any bill of Lading? Correct Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment Your Answer Names of consigner, consignee , The port of loading and unloading, contract of shipment , The name of the vessel , The date of transportation and contract of transportation Select The Blank Question Under the ________ standard the Country's Central Bank promised to buy back the currency at certain rate of Gold. Correct Answer Gold Your Answer Interest Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer ADRs Select The Blank Question The type of trade where a country sells orange juice in return for cars is known as
23
________. Correct Answer Counter Trade Your Answer Non money trade Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment of hotel bills abroad, payment for expenses on Heart operation abroad , Payment to EOUs in India for services rendered by them Your Answer Payment to EOUs in India for services rendered by them , Payment of Gifts of GBP 5000 per year per donor Multiple Choice Multiple Answer Question Under the liberalisation through FEMA, what can an AD offer to the clients, without the prior permission of RBI or Government? Correct Answer Hedges, interest rate swaps, currency swaps. , Caps and collars, and forward rate agreements Your Answer Caps and collars, and forward rate agreements , Good and competitive exchange rates and cross currency rates Multiple Choice Multiple Answer Question Sterling Market is attractive for an international investor because Correct Answer Gilts offer higher attractive margin , Choice of issuing medium term and long term bonds Your Answer Choice of issuing medium term and long term bonds , Less controls and less formalities to be completed , Linking of issues to currency swaps Multiple Choice Single Answer Question Under which contracts the seller pays the import duty for the buyer? Correct Answer DDP Your Answer DDP True/False Question PP Form is required when exports are made to any country by post parcel on value payable basis. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question What were the immediate causes of converting the group of 5 into group of 7 and convene their meeting in late 1985? Correct Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased Your Answer Many Industries in USA had become uncompetitive with imports , In USA the Trade protectionnism had increased , The heads of G5 insisted to have a meeting , Failure of IMF to control the exchange rates Multiple Choice Single Answer Question What are the powers of money changers? Correct Answer Purchase and sell foreign currency notes and travellers cheques Your Answer Purchase and sell foreign currency notes and travellers cheques, give import and export
24
finance Multiple Choice Single Answer Question Who can open an EEFC account? Correct Answer Individuals , firms, companies, resident in India Your Answer Individuals , firms, companies, resident in India Multiple Choice Single Answer Question What is the role of ICC towards WTO? Correct Answer To provide world business recommendations to WTO Your Answer To further the cause of WTO Match The Following Question Correct Answer Your Answer -Swap price Difference in prices of two legs of buying and selling Quoting rate for both buying and selling a currency -Euro Market Market in Euro currencies Market in Euro currencies -Making market Quoting rate for both buying and sellinga currency Difference in prices of two legs of buying and selling -Spread Price difference between bid and offer Maket of 'Euro' Select The Blank Question Position in a currency is said to be ________, when sales equal purchases. Correct Answer Square Your Answer Awkward Select The Blank Question Hotels and Airline companies are allowed to receive payments in Indian rupees from foreign tourist without insisiting on ________. Correct Answer Encashment certificate Your Answer Encashment certificate Multiple Choice Multiple Answer Question Why is Bill of Exchange a Quasi Negotiable Instrument? Correct Answer It represents title to goods , It is issued under Sale of Goods act Your Answer It represents title to goods , It is issued under Transportation act , It is issued under Bill of exchange act Multiple Choice Single Answer Question Which details about forward contracts do the Exchange Controls verify ? Correct Answer Particulars of cancellation of forward cover for the equivalent of USD 500,000 Your Answer Details of all contracts booked and cancelled beyond a specified limit Multiple Choice Single Answer Question In the context of International economy ,the period between 1920s and 1930s is known as Correct Answer Great Depression Your Answer Great Depression Multiple Choice Multiple Answer Question What do you understand by Commercial Risk? Correct Answer Protracted default by the buyer, Insolvency of the buyer Your Answer Protracted default by the buyer, Insolvency of the buyer
25
Multiple Choice Multiple Answer Question What schemes have been floated by RBI for facilitating Inter bank transactions? Correct Answer Clearing house for settlement and clearance for the operations of Ads , Set up a market intelligence cell to study and monitor developments in Forex Market Your Answer Clearing house for settlement and clearance for the operations of Ads , Make additional foreign currency available to ADs at cheaper rates Select The Blank Question ________ is the agency of ICC which deals with the maritime crime. Correct Answer International Maritime Bureau Your Answer
International Maritime Bureau
Multiple Choice Single Answer Question Which of them are special funding facilities of IMF ? Correct Answer Buffer Stock Facility Your Answer
Buffer Stock Facility
True/False Question
Cross currency forward contract is not meaningful if original contract is in Rupees to USD Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question What does a speculator accept while dealing with an option? Correct Answer The exercise or strike price, the amount , The expiration date and time, the method of payment Your Answer The exercise or strike price, the amount , The expiration date and time, the method of payment , The Market report of the exchange which trades the option Multiple Choice Single Answer Question Which is the most actively traded currency in the international market today? Correct Answer US Dollar Your Answer
US Dollar
Match The Following Question
Correct Answer
Your Answer
Intolerable risk
Drop the investment project
Drop the investment project
Country risk analysis
Cost of evluation does not justify analysis
Cost of evluation does not justify analysis
Stock market analysis
Banks are ahead
Factors' values
26
Weightages %
Factors' values
100% of total
Select The Blank Question Global capital market can be understood from the study of ________. Correct Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Your Answer Yen,Euro Dollar, Swiss Francs, USD market, Govt Borrowings within and outside the country Multiple Choice Single Answer Question For a spot transaction carried out on Thursday, currencies will be exchanged on :Correct Answer Monday Your Answer
Monday
Multiple Choice Single Answer Question Under which category of exchange rate did the Indian Rupee came from June 92? Correct Answer Other managed Floating Your Answer
Pegged to Single currency
Match The Following Question
Correct Answer
Your Answer
Maturity of future
Time when actual commodity is delivered
Last date of exercising option
Note issuance facility
Euronotes
Euronotes
Bearer security issued in currency Eurobonds other than that of the country of issue
Eurobonds
Margin on future
Peformance bond or security deposit
True/False Question
Peformance bond or security deposit
Postal receipt is an acknowledgement of receipt of goods, a quasi negotiable instrument.
Correct Answer False Your Answer
False
True/False Question
The Prominent non banking financial institutions participating in the FOREX markets are Pension funds, mutual funds, insurance Cos. Correct Answer True Your Answer
True
Multiple Choice Multiple Answer
27
Question
What are margins, with reference to futures market?
Correct Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Your Answer Faith money deposited by buyers and sellers ensures liquidity , Margin ensures solvency for honouring contracts Multiple Choice Single Answer Question What is the volume of the world's average daily transactions in foreign exchange? Correct Answer USD 1 trillion Your Answer
USD 1 trillion
Multiple Choice Single Answer Question NIF is basically an agreement :Correct Answer By underwriting bank to support funding for a certain period, against which borrowers can issue short term papers Your Answer Which enables the investor to market the same in the secondary market
Multiple Choice Single Answer Question What was the official foreign currency reserve of the group of seven central Banks taken togeather in mid 1992? Correct Answer USD 275 Billion Your Answer
USD 275 Billion
Multiple Choice Single Answer Question What Preshipment facility is granted by EXIM Bank to an exporter? Correct Answer Preshipment credit beyond six months for construction and turnkey projects abroad Your Answer
Preshipment credit up to six months for construction and turnkey projects abroad
Select The Blank Question Over the years ________has been the most widely accepted currency in international capital market. Correct Answer American Dollar Your Answer
American Dollar
Select The Blank Question As a result of the world wars in the 20th century the ________ of most of the countries suffered heavily. Correct Answer Economies Your Answer
Currencies
Multiple Choice Single Answer Question Which currency is traded in one leg of about 70% of the world's transactions? Correct Answer US Dollar
28
Your Answer
US Dollar
Select The Blank Question ________ is the acid test for events to be included in country risk. Correct Answer Control by Government' Your Answer
Recurrence
Select The Blank Question The Trans European Automated Real Time Gross Settlement Express Transfer is popular in ________. Correct Answer Brussels Your Answer
Brussels
Multiple Choice Single Answer Question What is Risk Syndication facility? Correct Answer Sharing of risk of non payment by supplier Your Answer
True/False Question
Sharing risk of Non payment by the Syndicate of Banks giving loans
If ERD > IRD hen exporter should availa Rupee finance
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The characteristics of an International documentary credit are :Correct Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Your Answer It is an undertaking given by the openers bank to pay certain sum of money , It is an undertaking given on behalf of a certain person to another person in different country Multiple Choice Multiple Answer Question Which debits are permitted to EEFC accounts? Correct Answer Payment Payment Your Answer Payment Payment True/False Question
of to of to
hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them hotel bills abroad, payment for expenses on Heart operation abroad , EOUs in India for services rendered by them
Funding Options in domestic yen market are Futures, FRAs, Call and put options.
Correct Answer True Your Answer
True
29
True/False Question
There is no difference between CIP and CIF contracts except the mode of transportation.
Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Financial management is complex process for Correct Answer Companies which have international trade Your Answer
Companies which have international trade
Select The Blank Question When an Indian Company earns at least 50% of its average turnover from a particular activity then that activity is considered as ________. Correct Answer Core activity Your Answer
Primary activity
Select The Blank Question A Credit can be a confirmed credit only if it is also ________. Correct Answer An Irrevocable credit Your Answer
An Irrevocable credit
True/False Question
The volume of trading of Derivatives in the world trade market is growing but still only 5% of the total. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Punjab National Bank Mumbai Branch quoted USD 1= Rs 50.5000/52.5050. Which is the offered rate for Rs? Correct Answer USD 1=Rs 50.5000 Your Answer
USD 1=Rs 50.5000
Multiple Choice Multiple Answer Question Export finance Correct Answer Preshipment credit , Post shipment credit , Duty Draw back Your Answer
Preshipment credit , Post shipment credit , Buyers credit
Multiple Choice Multiple Answer Question Internationally only those currencies are in demand
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Correct Answer Which are convertible , Which have liquidity confirmed in Euro market operations Your Answer
Which are convertible , Which have liquidity confirmed in Euro market operations , Which have greater intrinsic value
Multiple Choice Multiple Answer Question What are the functions of Asian Development Bank? Correct Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Your Answer Give Softloans to poorer countries in Asia , Give project finance from resources raised in world capital market Multiple Choice Multiple Answer Question What does the word '"Tombstone" stand for? Correct Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Your Answer Advertisement which lists the managers, underwriters, , List of Providers of recently floated issue Select The Blank Question Short term instruments normally issued by corporate borrowers, forhigh values, at a discount to face value are known as ________. Correct Answer Euro Commercial Papers Your Answer
Euro Commercial Papers
Multiple Choice Single Answer Question Why are various methods of financial analysis used for assessing a cross border project ? Correct Answer To weed out unviable projects and rank profitable ones Your Answer
To weed out unviable projects and rank profitable ones
Multiple Choice Single Answer Question Examples of hedge are: Correct Answer Buy when you are having short position Your Answer
Buy when you are having short position
Multiple Choice Multiple Answer Question What is the effect of cross currency option on the customer? Correct Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Your Answer He gets the flexibility to exposure , He is exposed to additional risk of movement of rates between 3 currencies Select The Blank Question Forward margin makes a currency cheaper then the currency is at ________. Correct Answer Discount
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Your Answer
Discount
Multiple Choice Single Answer Question Why does a person need protection from unfavourable movement of exchange rate? Correct Answer Unfavourable fluctuations in exchange rate can wipe out the normal business profit Your Answer
Unfavourable fluctuations in exchange rate can wipe out the normal business profit
Multiple Choice Single Answer Question The capital market is said to be volatile when Correct Answer Prices of capital market instruments change and are expected to change drastically Your Answer
True/False Question
Prices of capital market instruments change and are expected to change drastically
JV means Joint venture and WOS means World of Security.
Correct Answer False Your Answer
False
Multiple Choice Multiple Answer Question What is the criteria for an Indian Company for Direct Investment abroad? Correct Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent Your Answer Activity proposed need to be core activity , Financial commitment in JV/WOS maximum $ 100 million or equivalent , Indian co should not have been black listed
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