1. Commercial banks differ from other businesses in that both their assets and their
liabilities are mostly ________.
Correct : B. Financial.
2. Although derivatives can be used as speculative instruments, businesses most often use
them to _________.
Correct : D. Hedge.
3. A fixed-income security pays ____________.
Correct : B. A fixed level of income for the life of the security.
4. Money market securities ____________.
Correct : D. All of the above
5. A mutual fund in which shares are issued only when the fund is organized is called a
________fund.
Correct : A. Closed-end.
6. The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by
the number of shares outstanding is called the:.
Correct : D. Net asset value.
7. When one investment company manages a group of mutual funds, it is called a(n):.
Correct : A. Family funds
8. Mr. Manoj is buying shares in a mutual fund that invests in companies that are all within
the same industry. What type of mutual fund has he purchased?
Correct : A. A sector fund
9. A market for existing financial securities that are currently traded between investors is
called the____________ market
Correct : C. Secondary.
10. Mr. Praveen is thinking about buying an investment. The investment option that he is
thinking about buying is an investment where investors pool their money. One of the key features is that it is managed by professional managers. What investment is Mr. Praveen thinking about purchasing?.
Correct : D. Mutual Fund.
11. Financial intermediaries’ _________.
Correct : D. All of the above
12. Which of the following assets is most liquid?.
Correct : C. Passbook savings accounts.
13. Under “securitisation process”, the bank or financial institution which gives loan is
known as;
Correct : C. Originator
14. Under “securitisation process”, original borrower is known as;
Correct : B. Obligor
15. Under “securitisation process”, organisation which gives insurance and guarantee is
known as;
Correct : D. Credit enhancer
16. Under “securitisation process”, ---------- are instruments which issued subsidiary
company in respect of receivables of holding or parent company
Correct : C. Preferred stock certificate
17. -------- certificate under securitisation have multiple maturity structure.
Correct : B. Pay through certificate
18. -------- certificate under securitisation have single maturity structure.
Correct : A. Pass through certificate
19. Which of the following is / are securitisable asset/debt?
Correct : D. All the above
20. Which of the following is / are securitisable asset/debt?
Correct : D. All the above
21. Which of the following is / are not securitisable asset/debt?
Correct : B. Bills receivable
22. Which of the following is not related to securitisation process?
Correct : D. None of these.
23. Which of the following is tripartite system?
Correct : C. Leverage lease
24. Equipment lease transaction is treated as contract of............
Correct : A. Bailment
25. ............ lease is for a limited period
Correct : B. Operating lease
26. The entire lease rental is treated as........ in the books of lessor
Correct : B. Income
27. Leased asset is shown in the balance sheet of..................
Correct : B. Lessor
28. Who can claim investment allowance in relation to leased asset?
Correct : B. Lessor
29. An average lease agreement involves.............
Correct : A. Two parties
30. ................. Leasing companies are formrd to promote the sale of its parent company
Correct : C. Vendor
31. .......... fund generates regular income to the investors on periodical basis.
Correct : B. Income fund
32. Income-cum- growth fund is also known as.................
Correct : A. Balanced fund
33. ............... fund concentrate mainly on capital appreciation.
Correct : C. Growth fund
34. Pure growth fund is also known as
Correct : A. Nest eggs
35. Investors generally use............... as a ‘parking place’ or ‘stop gap arrangement”
Correct : D. MMMF
36. ................. mutual fund otherwise known as “intrinsic value”
Correct : C. Portfolio
37. Best suited fund for a business people is...............
Correct : C. Growth fund
38. The facility offered to the investors to shift from one scheme to another under same fund
is known as
Correct : D. Lateral shifting facility
39. Which of the following is a type of international factoring?
Correct : D. All of these
40. ................ literally means “relinquish rights to something”.
Correct : C. Forfaiting
41. Investment Information and Credit Rating Agency of India (IICRA) is a
Correct : B. Public company
42. --------- variety of mutual fund offers tax benefits to the investors
Correct : D. Taxation fund
43. Which of the following fund is entirely opposite to bond fund?
Correct : D. Aggressive growth fund
44. The market performance of mutual fund can be judged on the basis of
Correct : A. Net asset value or intrinsic value
45. ------ is the venture capital assistance at the stage of development of business idea
Correct : D. Seed capital
46. In ----------leasing, maintenance expenses and taxes are born by the lessee
Correct : A. Financial lease
47. ----------- is suitable lease arrangement for retail shop, mall etc
Correct : D. Sale and lease back
48. In hire purchase, who can be enjoying salvage value of asset?
Correct : A. Hirer
49. in the case of -------- bonds, the value is inversely related to short term interest rates.
Correct : B. Inverse float bonds
50. “D vs. P” system for government securities market means
Correct : A. Delivery and payment settlement
51. Non banking financial institutions (NBFIs) are registered under
Correct : C. Companies Act
52. According to IFRS, the term financial asset includes
Correct : A. Cash or Cash equivalent
53. Which of the following is /are example of primary or direct financial instrument
Correct : D. Debentures
54. Which of the following is /are example of Secondary or indirect financial instrument
Correct : C. Post office saving deposit
55. A Non Banking Financial Institution
Correct : D. Cannot accept demand deposit and cannot issue cheques
56. Kerala State Financial Enterprises ltd (KSFE) is an example of
Correct : C. NBFI
57. UTI, LIC etc are examples of
Correct : B. Investment institution
58. SFC is an example of
Correct : D. Development Institution
59. Which of the following is /are not regulatory institutions
Correct : C. IRDA
60. Which of the following is not a negotiable instrument?
Correct : C. FDR
61. _______ is a financial service which pooling risks of people
Correct : C. insurance
62. In India Insurance business are regulated by
Correct : C. IRDA
63. “Native Stock and Share Brokers Association” is the old name of............
Correct : C. BSE
64. General insurance business nationalised in the year----------
Correct : B. 1972
65. ............ is a product whose value is derived from the value of underlying asset
Correct : D. Derivatives
66. BOLT stands for
Correct : B. Bombay Online Trading
67. --------------is also known as “G.Secs”
Correct : C. Govt. Securities
68. .................. are negotiable instrument issued by an overseas depository