1. The process of selling trade debts of a client to a financial intermediary is called ———
Correct : B. Factoring
2. The idea of providing factoring services was first thought of in India by —————
Correct : C. Vaghul committee
3. The central theme of forfaiting is the purchasing of ————— by a financial service
company.
Correct : B. Export bills
4. In India, forfaiting is done by ————— bank
Correct : D. EXIM bank
5. The minimum size of venture capital fund is Rs. —————
Correct : C. 10 crore
6. Venture capital is originated in —————
Correct : D. USA
7. ————— is considered to be the father of venture capital.
Correct : A. Dariot
8. In the implementation stage of a project, venture capital firms provide —————
finance
Correct : C. Start up
9. Which of the following is a fee based service
Correct : C. capital issue management
10. Find the odd one out
Correct : B. Share certificate,
11. The process of managing the sales ledger of a client by a financial service company is
called factoring
Correct : A. Factoring
12. The best suited fund to the business people is
Correct : C. growth fund,
13. Mutual funds are very popular in
Correct : A. USA,
14. In India, the company which actually deals with the corpus of the mutual fund is called
Correct : C. asset management company
15. Trade debts have to be assigned in favour of the financing company under
Correct : C. factoring,
16. Under factoring the factor acts in the capacity of
Correct : C. a holder for value,
17. The first bank in India to start factoring business is
Correct : B. SBI,
18. The inflation free instrument is _____________.
Correct : C. Index-linked guilt bond
19. Financial derivatives are mainly used for ______________.
Correct : C. Hedging risks.
20. In an option contract, if the option can be exercised only at the time of maturity, it. is called_____
Correct : D. European option
21. The predetermined price at which an underlying asset has to be bought or sold in. an
option contract is called ________.
Correct : B. Exercise price
22. Combination of forwards by two counterparties with opposite but matching need is
called
Correct : A. Swap
23. The first Indian Bank to set up Merchant Banking division in India is ___________.
Correct : B. State Bank of India
24. A very long tenure lease applicable to immovable properties is ____________.
Correct : B. Conveyance lease
25. When the lessee is allowed to exchange equipment leased out whenever the original asset
has to be sent to the lessor for some repair or maintenance, such type of lease is called _____.
Correct : C. Swap lease.
26. Refactoring charges have to be paid in the case of ___________.
Correct : B. With recourse factoring
27. Under forfaiting the client is able to get credit facility to the extent of ____________.
Correct : A. 100 % of the value of the export bill
28. The concept of securitisation is associated with ___________.
Correct : C. Debt market.
29. In the case of securitisation, the trade debts and receivables are mostly in the nature of _____.
Correct : D. Both medium term and long term
30. Under securitisation, selected pool of assets are ‘passed through’, for converting them
into securities, to another institution called:.
Correct : B. Special purpose vehicle
31. Which one of the following is a short term debt instrument?.
Correct : A. Preferred stock certificate
32. The asset generally not suitable for securitisation is ______________.
Correct : B. Trade receivables
33. --------- variety of mutual fund is known as “Nest Eggs”
Correct : D. Growth oriented funds
34. Generally mutual funds are of
Correct : C. Low risk
35. The corpus of funds and its duration is fixed in case of ------- fund
Correct : C. Close ended
36. The market performance of mutual fund can be judged on the basis of
Correct : C. Regular / stable income
37. ----------- is the regulator of mutual funds in India
Correct : D. Both SEBI and GOI
38. ------ is the venture capital assistance at the stage where the project started to fetch profit
but not reached in its full efficiency
Correct : B. Mezzanine capital
39. In ----------leasing, the risk of obsolescence is assumed by the lessee
Correct : A. Financial lease
40. ----------- is a tripartite lease arrangement
Correct : C. Leverage lease
41. In hire purchase depreciation can be claimed by the
Correct : A. Hirer
42. Equipment leasing is ............... financial service.
Correct : A. fund based
43. Managing the capital issue is............. financial services.
Correct : D. both b and c above
44. Fee based financial services are also known as...........
Correct : C. non- fund based
45. ............. is the design, the development and the implementation of innovative financial
instruments and processes and the formulation of creative solutions to problem of finance.
Correct : C. financial engineering
46. ................ is more or less similar to “Consortium financing”.
Correct : D. Loan syndication
47. Yankee bonds are raised in..........
Correct : A. USA
48. Samurai bonds are raised in.............
Correct : C. Japan
49. Type of debt instrument which permit investors to switch between two types of securities.
Correct : C. Flip-Flop notes
50. The inflation free instrument is........
Correct : B. Index-linked guilt bond
51. ------ bonds are issued at a large discount to their nominal value.
Correct : D. Deep discount bond
52. ------- is referred as both fund based and fee based financial service.
Correct : D. Underwriting
53. Direct sale of securities to investors is called..........
Correct : B. Private placement
54. Hire Purchase Act passed in the year
Correct : C. 1972
55. ............... supplies machinery to small scale industries under hire purchase system.
Correct : C. NSIC
56. In India, Banks are permitted to carry on Hire purchase business
Correct : C. Through subsidiary
57. In hire purchase, till the payment of last instalment, amount paid by hirer is treated as
Correct : A. Rent
58. With -------- we rent and with .......... we buy the goods.
Correct : B. Leasing, hire purchase
59. In.............., lessor fulfils financing function
Correct : C. Financial lease
60. In................., Lessor fulfils servicing function
Correct : A. Operating lease
61. Credit card facility is a better example of
Correct : A. Revolving credit
62. ............... card provides communication security
Correct : C. Debit card
63. --------- is pay later product
Correct : B. Credit card
64. ---------- is pay now product
Correct : A. Debit card
65. ATM stands for
Correct : C. Automated Teller machine
66. Andhra bank and Central bank of India introduced credit card in India in
Correct : B. 1981
67. “India Card” was introduced by
Correct : B. Bank of India
68. Full service factoring is often
Correct : A. Recourse factoring
69. Disclosed factoring is also known as
Correct : D. Notified factoring
70. Maturity factoring is also known as
Correct : A. Maturity factoring
71. “Confidential invoice discounting” is another name of
Correct : C. Undisclosed factoring
72. Re-Factoring fee is applicable in case of
Correct : A. With recourse factoring
73. .............. Is an “invoice based export finance” technique.
Correct : A. International factoring
74. “EDI” in EDIFACTORING stands for
Correct : B. Electronic Data interchange
75. In ............... lease, leasing company assumes risk of obsolescence.
Correct : B. Operating lease
76. ---------- lease contracts are usually non cancellable.
Correct : A. Financial lease
77. Financial lease introduced in India by...................
Correct : C. Chidambaram group
78. Rental loans are given to
Correct : B. Owner of the building
79. Loans for pensioners are given up to ------- months of pension amount.
Correct : D. 6
80. Consumer loans are granted for
Correct : C. Short period
81. Retail banking is confined to ............... customers
Correct : C. Individual
82. Housing advances are ................. in nature
Correct : C. Long term
83. In the private sector, ------------ plays a dominant role in housing finance.