Quiznetik

Financial Services | Set 2

1. Numerous factoring arrangements are possible if an agreement is reached between the ………& ……

Correct : A. selling co.& the Factor

2. Domestic factoring include Customers, Client ……..

Correct : A. All of these

3. The word forfeit is derived from …..

Correct : A. French word

4. Forfiet means …………

Correct : A. Surrendered of rights

5. Forfeiter determines ………..risk & risk.

Correct : A. Country & Credit

6. Forfeiting transaction is covered with ………..

Correct : A. Promissory Notes

7. The first rating AGENCY is …………was started in…..

Correct : A. CRISIL, 1988

8. The term ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers financial investment in a highly risky and growth oriented venture with the objective of earning a high rate of return.

Correct : A. Venture capital

9. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a road towards a high growth economy.

Correct : A. Venture capital

10. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ act as an intermediary to link up the sources of ideas and the sources of fund.

Correct : A. Venture capital

11. V C Fs of specialized financial institution promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : A. Central government

12. I D B I , I F C I , I C I C I etc. are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : A. V C F s of specialized financial institution

13. Write the example of V C Fs of state financial institution.

Correct : A. K S I D C

14. Which of the following is a V C F promoted by specialized financial institution.

Correct : C. I D B I venture capital fund

15. Off shore VCFs are promoted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ & financial institution.

Correct : A. Foreign banks

16. High risk is an outstanding feature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : B. venture capital

17. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is needed for developing a product in the initial stages.

Correct : A. Seed capital

18. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is needed for product development and initial marketing.

Correct : B. Startup capital

19. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ provided at a stage when product has been launched in the market but has not earned enough profits to meet future capital needs.

Correct : B. Second round financing

20. ‐‐‐‐‐‐‐‐‐‐‐‐‐ capital is provided for early manufacturing and marketing expense.

Correct : C. first round financing

21. The additional finance provided by VCFs to overcome fledging stage is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : A. Second round financing

22. Indian Commercial Banks are categorized into:

Correct : D. All of the above

23. Regional Rural Banks have been set up with the basic objectives of:

Correct : D. providing credit, deposit and other banking facilities to people in rural

24. _____ is raised in capital markets

Correct : A. Funds through long term securities

25. Interest on Government secu-rities on fixed basis is known as:

Correct : A. Bank rate

26. __ was not nationalized in 1969:

Correct : B. Oriental Bank of commerce

27. In the first round 14 major banks with a liability base of ____ were nationalized:

Correct : C. 50 crore or more

28. The maximum Statutory Liquidity Ratio to be maintained by banks is_____:

Correct : D. 40%

29. CRR funds are kept by the Banks in ____:

Correct : C. Balance in a special Account with RBI

30. An increase in CRR by RBI leads to:

Correct : D. Decrease in lendable resources

31. When RBI reduce the CRR it results into:

Correct : C. Increase in lendable resources

32. What is meant by development Oriented banking?

Correct : C. Taking up the task of development of the economy by providing support to under privileged sections of the society

33. Principal functions of SIDBI:

Correct : D. All the above

34. ____ heads and conducts the affairs of RBI:

Correct : A. Central Board

35. RBI Provides ____ for meeting day - to - day receipt and expenditure mismatch to both Central and State Governments.

Correct : B. Ways and Means advance

36. RBI known as lender of last resort because:

Correct : C. It comes to help banks in times of crisis

37. These days RBI uses Selective credit control measures rather infrequently because of:

Correct : C. Comfortable liquidity

38. Which is incorrect with regard to powers of RBI:

Correct : D. None of the above

39. Intervenes in markets to maintain the external value of the Indian rupee:

Correct : C. RBI

40. Regional Rural Banks were set up on the recommendations of:

Correct : B. Narasimham committee

41. Committee, launched the process of reforms of financial system in India:

Correct : C. Narasimham committee

42. Which of the following can be categories as a Merchant Banking service?

Correct : C. Managing mergers

43. The instrument which provides proprietary interest in company and which entitles a person to dividend on profits, is called?

Correct : B. Share

44. Which of the following provides proper definition of a Mutual Funds?

Correct : D. All the above

45. Which of the following organisations/agencies works solely to monitor and arrange flow of agriculture credit in India?

Correct : A. NABARD

46. The currency notes of which of the following denominations are not printed in India ?

Correct : D. Rs. 2500

47. Which of the following is not the name of a bank functioning in India?

Correct : C. Aegon Religare

48. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as :

Correct : A. Term Deposit

49. Who amongst the following is the chief of SEBI?

Correct : B. UK Sinha

50. Which of the following is a leading electronic-payment tec-hnology firm?

Correct : A. Visa

51. The basic function of…………are to accept to deposits, lend money and act as collection and paying agents.

Correct : A. Banks

52. The RBI was nationalized by the Reserve Bank (amendment ) …………...

Correct : A. Act 1948

53. The baking system was……….during the early 90’s which led to greater competition and higher Production.

Correct : A. Liberalized

54. The baking sector is the most important part of the……….and it promotes economic development of the country.

Correct : A. financial system

55. The…………..has economic significance and social purpose.

Correct : A. Insurance industry

56. The……… are financial intermediate that collect and invest large amount of premiums.

Correct : A. Insurance Companies

57. The 1st life insurance company namely………. was establishment in Kolkata in 1818

Correct : A. oriental life insurance co

58. The commercial banking system in India consists………….&………….

Correct : A. Scheduled & Unscheduled Banks

59. ………..banks are considered as the heart of our financial structure that makes the completely utilization of the resources of the nation.

Correct : A. financial system

60. ………….banks are known as local area banks.

Correct : A. Uncheduled banks

61. …………….these banks are controlled by the Government.

Correct : A. Public Sector Banks

62. ………………banks are registered as companies with limited liability.

Correct : A. Private Sector Banks

63. …………… banks were establishment mainly due to the development of trade with our countries.

Correct : A. Foreign Banks

64. …………… banks are involved with financing of foreign trade and activities.

Correct : A. Foreign Banks

65. …………… banks aims to increase the flow of credit and availability of banking facilities to Rural areas and to the poorer section of the rural population.

Correct : A. Regional Rural Banks

66. The basic ideamovement is that poor people should come together and develop banking habits within small means.

Correct : A. Cooperative

67. …………..banks act as catalytic agents in promoting balanced development of the country.

Correct : A. Development Banks

68. ………… means indemnity or protection against risk of loss by spreading the risk over a number of a person, who are exposed to it and who is agree to insure themselves against risk.

Correct : A. Insurance

69. The LIC was Establishment on……………..

Correct : A. 1st Sep 1956

70. …………….banks can borrow from the Reserve Bank of India based on the eligible securities or get the financial assistance in times of need by rediscounting bills of Exchange.

Correct : A. Scheduled Banks

71. The first bank to set up a separate merchant banking division in India.

Correct : A. Punjab national bank

72. As a discipline to be one of the most important element in the business world where money is almost everything.

Correct : A. Accounting

73. Budgeting requires eliminating redundant expenditure that no longer serves any clearly defined purpose.

Correct : A. Zero based

74. The second approach in the application of Zero-based Budgeting (ZBB) is to identify and remove duplication or expenditure.

Correct : A. Multiplication

75. A system of zero-based budgeting was first introduced formally in the United States Department of Agriculture in preparing its budget.

Correct : A. Fiscal year

76. Zero-based budgeting was introduced for the first time in a government system by …………………..

Correct : A. Jimmy Carter

77. A decision package includes…………..justification for budget estimates of an activity.

Correct : A. Comprehensive

78. A main factor contributing to the failure of zero-based budgeting has been due to too much of……………..involved in the procedure.

Correct : A. Paper work

79. ………………. manpower is a hard task for management.

Correct : A. Re-Deploying

80. Situation of resource crunch when demands for desirable expenditure are far ………………….. the available resources.

Correct : A. out stripping

81. Zero-based budgeting is an approach to budgeting that begins from the principle that………………. or activities Should be factored into the plans for the coming budget period.

Correct : A. no cost

82. Zero-based budgeting first came out in …………..

Correct : A. 1960

83. The ‘………….. ’ is a term associated with ZBB, and refers to an analysis of each discrete activity, according to cost and purpose.

Correct : A. Decision Package

84. The key benefit is that serves to concentrate attention on the……………

Correct : A. Zero based budgeting

85. ZBB can offer a number of advantages when it is applied …………..

Correct : A. intelligently

86. The basic process of zero-based budgeting is to justify budget requests for every , regardless of prior period budgets.

Correct : A. Budgeting cycle

87. Zero-based budgeting addresses such problems that can take place with ……………. rolling budgets.

Correct : A. Conventional

88. …………… accounting is a financial reporting process which records the results of inflation on the financial statement that a firm prepare and published at the end of the financial year.

Correct : A. Inflation

89. One of the most significant and basic principle of the accounting process is called as the …………..Principle.

Correct : A. measuring Unit

90. Inflation accounting as already stated is also called as the ………….. accounting.

Correct : A. Price Level Accounting

91. The impact of inflation comes in the form of rising prices of…………….. and Assets.

Correct : A. Output

92. ————— includes all activities involved in the transformation of savings into investment.

Correct : B. Financial service

93. Underwriting of shares by a financial intermediary is a kind of ————— activity.

Correct : B. Fund based

94. ————— services are mainly provided to foreign investors.

Correct : A. Custodial services

95. Term lending institutions are ————— market intermediaries.

Correct : C. Capital market

96. The minimum net worth for the first category of merchant banker is Rs. —————

Correct : C. 1crore

97. A merchant banker can claim a charge —————% as the commission for the whole issue.

Correct : D. 0.5

98. ————— fund invests in highly liquid securities like commercial paper.

Correct : D. Money market mutual fund

99. The company which sets up a mutual fund is called —————

Correct : B. Sponsor

100. The small investors’ gateway to enter into big companies is —————

Correct : D. Mutual fund