631_MANAGEMENT OF FINANCIAL SERVICES_Prepaired by Ajay

S.No Question Ans Remarks

1 …...........are examples of financial intermediaries All of the above OK
2 Which agency regulates and supervises NBFCs? RBI OK
3 High risk is an outstanding feature of__________ Venture capital OK
the market for short term investments of maturity of less
4 Money Market OK
than one year is known as
Which is of the following instrument is not a negotiable
5 Crossed cheque OK
instrument
a high p/e multiple of a fund in comparison to average
6 Growth Fund OK
market multiple could be of
Mandatory registered in the name of
7 All Dematerialized securities are OK
depository
__________provided at a stage when product has been
8 launched in market but has not earned enough profits to Second round capital OK
meet future capital needs
the…..... basically covers the medical expenses of the
9 Health insurance OK
insured
The sale of a mortagage portfolio by setting up mortgage
10 Securitization OK
pass-through securities is an example of
11 bank owned mutual funds are supervised by RBI OK
mutual fund can benefit from economies of scale
12 large volumes trades OK
because of
13 Insurance is a_______ Agreement / contract OK
…..........is a financial intermediary who helps to mobilize
14 and transfer capital from those who possess it to those Venture capital OK
who need it
15 Merchant Banking is governed u/s 2e or SEBI Regulation 1992 OK
in simple terms the management of issues for raising
16 issue management. OK
funds through various types of instruments
A form of direct short term finance issued by large, credit
17 commercial papers OK
worthy companies is called a ______
18 Agents are compensated by mutual funds through commission OK
Primary market and secondary market are the types
19 Capital market OK
of__________?
…..........is a long term risk capital to finance high
20 technology projects which involve risk but at same time venture capital OK
has strong potenctial growth
Following are the features of venture capital
21 Less Risk OK
except__________
All insurance companies are required to obtained a
22 Certificate of Registration, to be renewed__________, In every 5 years OK
from IRDA
Which of the following is short-term financial
23 Treasury bill OK
instrument?
24 after uti the first mutual fund was started by public sector banks OK
25 Brokers are also acting as________ depository participant OK
26 which is not the type of the financial services Need based services OK
27 the components of a capital market is Government securities market OK
…............is the process of of taking illiquied assets and
through the process of finacilal reenigineering
28 Securitisation OK
transforming them into a new security which can be sold
in the finacial markets
a ____ is a plastic card with an embedded with computer
29 smart card OK
chip that stores and transacts data between users
if the due date is a public holiday, what will be the due
30 following day OK
date of the bill.
 which of the following is not a characteristic feature of funding just one or a small number of
31 OK
venture capital firm? firms
32 the market for short-term loan is known as______ Money market OK
financial intermediaries provide services on the basis of
33 fee based activity OK
non fund activities , also called___
34 functions of financial services excludes____________ Collection of tax OK
a direct lease, a sale and lease back , and a leveraged "off balancesheet" methods of
35 OK
lease are all examples of_______ financing
a_________is an agreement to exchange an asset, for
36 forward contract OK
cash, at a pre-determined future date specified today.
37 mutual funds are allowed to borrow only to meet redumption demands OK

38 _____is basically a savings and investment corporation UTI OK

39 an aggrieved unit-holder of a mutual fund can sue the trustees OK
seed capital, start-up, second round
40 early stage financing includes OK
financing
_______is needed for developing a product in the initial
41 seed capital OK
stages
under which circumstances drawer and payee is same when the drawer discounted the bill
42 OK
person. with banker
____scheme enable the society to enjoy the benefits of
43 social insurance OK
insurance at reduced cost.
it provides a way to indirectly
44 one advantage of a financial lease is that: OK
deprecciate land
________offers insurance cover on the life of the key
45 personnel in an organisation to protect it from the loss keyman insurance OK
arising out of his death, absence of exit.
______is a form of financing of receivables pertaining to
46 forfaiting OK
international trade.
the consideration which the lessee pays to the lessor for
47 lease rental OK
the lease transaction is the
discounting of bills of exchange is an
48 attractive______based financial services provided by the fund OK
finance companies.
49 the ______has to manage the post issue activities merchant bankers OK
50 Certificate of Deposits (CDs) are issued by corporate OK
____________is a financial intermediary who helps to
51 mobilize and transfer capital from those who possess it venture capital or merchant banker OK
to those who need it.
which of the following members would you not find in
52 underwriters OK
the secondary Market?
53 NBFC stands for Non-Banking Financial Company OK
54 Letter of credit is a__________ Non Fund based service OK
55 the…........... has to manage the post issue activities Lead manager OK
the most important reason for an investor to prefer a
56 OK
bank deposit to a mutual fund is The credit worthiness of the Bank.
57 premium of group insurance premium is Low OK
__________act as an intermediary to link up the sources
58 Venture capital OK
of ideas and the sources of fund
All of the above ( issue management,
A merchant bank is financial institution conducting
59 Underwriting and financial advice, OK
capital market activities of
Investment service)
60 ______is a method of renting assets Lease OK
61 Which of the following is traded in money market? Treasury bill OK
…...........refers to transaction in which two parties agree
62 re purchase OK
to sell and repurchase the same security
 …........ is needed for developing a product in initial
63 Seed Capital OK
stages
To dematerialise government securities, NSDL has to
64 RBI OK
take former approval of
Financial intermediaries provide services on the basis of
65 fee based activity OK
non fund activities , also called__________
a market in which different currencies are bought and
66 foreign exchange market OK
sold under regulated arrangement is
Determined by calculating the net
67 the net asset value of a mutual fund is OK
price of the assets owned by the fund
In the case of hire-purchase the total sum payable by the
68 hire purchaser as per terms in order to complete the Hire-Purchase Price OK
transaction is
69 The investors hold commercial papers generally from Issuance to maturity OK
under hire purchase system, if instalment is not paid the
70 repossession of goods OK
hire vendor has right to_____
_______is a long term risk capital to finance high
71 technology projects which involve risk but at same time venture capital OK
has strong potential for growth
______refers to transaction in which two parties agree
72 re purchase OK
to sell and repurchase the same security.
call money, commercial bills, treasury
73 the main instrument of organised money market are OK
bills, certificate of deposits
74 a drawer in the bill of exchange can also be a payee OK
75 when the bill are to be produced to notary public at the time of dishonour of the bill OK
76 under hire purchase system, who has the right of sell hire vendor OK
77 listing of shares at a stock exchange ensures high liquidity OK
_____scheme enable the society to enjoy the benefits of
78 social insurance OK
insurance at reduced cost.
a market in which different currencies are bought and
79 foreign exchange market OK
sold under regulated arrangement is
80 free period called grace period OK
81 ______is an investment in a start-up business venture capital OK
82 what is CRR cash reserve ratio4 OK
how many merchant banker required if company issue
83 one OK
lot size is <Rs. 50Cr.
____capital is needed for product development and
84 second round financing OK
initial marketing
the most important reason for an investor to prefer a
85 the creditworthiness of the bank OK
bank deposit to mutual fund is
a______is a plastic card embedded with the computer
86 smart card OK
chip that stores and transact data between users.
it is normally true that, the longer the time to maturity of
87 the lower the discount rate OK
a government treasury bill____
who is the apex body which control all financial
88 Reserve bank of India OK
institutions
tax shield, full security and high
89 In case of leasing, advantage to lessor are OK
profitability
a portfolio of stocks, bond and other
90 Mutual fund is not OK
securities
Which of the following statements regarding Investor has to pay stamp duty for
91 OK
dematerialization is false? dematerialisation of shares
Plastic card implanted with computer chip to the data is
92 Smart card OK
known as______
Initial public offer and further public
93 What is the full form of IPO and FPO OK
offer
94 A gift fund is a special type of fund that invests in government securities only OK

95 In India, Venture capital firms are usually organized as limited partnerships OK

An investor open a depository account which is

96 Beneficiary a/c OK
called__________
97 Which is not the types of financial services Need based Services OK
__________is a financial intermediary who helps to
98 mobilize and transfer capital from those who possess it venture capital OK
to those who need it.
99 The component of a capital market is__________ Government securities market OK
Of the following fund types, the highest risk is associates
100 Equity Growth Funds OK
with
Following are the features of financial services
101 Constant OK
except__________?
__________capital is needed for product development
102 Seed Capital OK
and initial marketing.
How many merchant banker required if company issue
103 2 OK
size is <Rs. 50 CR
The private sector was granted premission to enter the
104 1993 OK
mutual fund industry in
Financial Intermediaries provide services on basis of non
105 Fee based activity OK
fund activities, also called__________
106 ‘A’ in credit rating signifies: Adequate safety OK
107 ‘AAA’ in credit rating denotes: Highest safety OK
108 ‘BBB’ in credit rating signifies Moderate safety OK
109 ‘D’ grade is: Negative OK
……… and ……… are the two depositories operating in
110 NSDL, CDSL OK
India.
……… refers to the activities that are associated with
111 Due diligence OK
evaluating an investment
……… was the first Indian commercial bank to set up a
112 State Bank of India OK
separate merchant
……………. is a financial capital which is provided to early-
113 All of the above OK
stage, high-growth
114 1287678 NBSXM5RU answers OK
A ……… is a mutual fund that invests solely in money
115 Money market fund OK
market instruments.
116 a close ended mutual fun has a fixed Fund Size OK
117 A commercial bank is always scheduled. FALSE OK
118 A gilt fund basically invests in government securities. TRUE OK
119 A lease agreement is between the ……… and ……… . Lessor, lessee OK
A lessee should classify a lease transaction as a capital
120 True OK
lease if it is no cancellable.
121 A mutual fund holder is: Unit-holder OK
Institute of Chartered Accountants of
122 Accounting Standard -19 on lease issued by OK
India (ICAI)
act as an intermediary to link up the sources of ideas and
123 Venture capital OK
the sources of fund
124 ADRs and GDRs are: Owned instruments OK
All insurance companies are required to obtain a
125 Certificate of Registration, to be renewed _____, from in every 5 years OK
IRDA.
All NBFCs-NDSI and D have to maintain minimum Tier 1
126 10%; OK
capital of:
127 allow tax benefits to the company. Debenture & Bond OK

128 An insurance policy acquires surrender value after ……… . 3 years OK

129 Any time entry and any time exit mutual fund is ……… . ……… invests in real estate properties. OK

ARCs are created to manage and recover Non-

130 True OK
performing Assets acquired
131 Are example of financial intermediaries All of these OK
132 are non-standardized derivatives. Forwards OK
133 are pure risk plans. Term insurance OK
134 are tax saving funds. ELSS OK
135 are tax-deductible instruments. Debentures and Bonds OK
are where a bank promotes jointly a credit card with
136 Co-Branded Credit Cards OK
another non financial institution
Asset Finance Company is a financial institution whose
137 TRUE OK
principal business is
138 Asset Liability management system in banks is meant for: Risk management OK
139 Balanced fund is also called hybrid fund. TRUE OK
140 BanK assurance is a tie-up between: Bank and the insurance company OK
Banker’s acceptance is backed by a guarantee from the
141 Bank OK
……… .
142 Banking Ombudsman Scheme is meant for HNIs. FALSE OK
143 Banking Regulation Act got enacted in: 1949 OK
Banks have been allowed to offer leasing facilities since
144 1994 OK
……… .
145 Basel III guidelines got released in ……… 2010 OK
Bombay Stock Exchange is the oldest stock exchange in
146 True OK
India.
147 brokers are also acting as depository participants OK
148 buys the assets to be securitized from the originator. Special purpose vehicle OK
149 Call market is the most liquid market. TRUE OK
150 Call market is: Inter-bank market OK
Capital adequacy ratio is used for testing solvency of
151 True OK
banks.
capital is needed for product development and initial
152 second round financing OK
marketing
153 Capital market is long-term market in nature. True OK
154 Capital market is: External in nature OK

155 CASA stands for ……… Current account and Savings account OK
156 Cash credit and overdraft are different. True OK

157 Cash reserve ratio is a ratio of liquid reserves with banks. FALSE OK
158 Certificate of deposit is like a ……… . Promissory note OK
Certificate of deposits pay a higher rate of interest than T-
159 TRUE OK
bills.
160 Claim settlement is done by an actuary. False OK
161 Close-ended funds are for perpetuity. False OK
162 Commercial paper is a long-term equity instrument. False OK
163 Commercial paper is a short-term debt instrument. True OK
164 Commercial paper is: Short-term OK
Commission payable on selling of mutual funds is called
165 Exit load OK
……… .
166 Corporate governance rating is ……… Voluntary OK

167 CRAs’ role has received an additional boost from ……… Basel II OK

Credit rating has not been restricted to rating of debt

168 TRUE OK
only, rather it has been
Credit rating is a symbolic indicator of the opinion of the
169 TRUE OK
relative capability
 Credit rating is an assessment of the creditworthiness of
170 TRUE OK
individuals and
Credit rating’ is common for issuance of the following
171 All of the above OK
instruments
172 Debt is the safest instrument. True OK
173 Demand deposit is payable on Requirement OK
174 Derivatives are speculative in nature. True OK
175 Derivatives are: Futuristic OK
176 Derivatives market is based on the principal of ……… . Speculation OK
177 DFIs stand for: Development Financial Institutions OK
178 Discounted bills arise only in case of: Credit sales OK
179 Dividend sweep is a reinvestment plan. TRUE OK
180 Equity always has a risk of ……… . Non-payment of dividend OK
181 Equity rating is compulsory in India. False OK
182 Equity share is: Voting security OK
Every NBFC is required to make a provision for standard
183 0.004 OK
assets at ……… of
184 Financial evaluation of a leasing proposal is done by: All of the above OK
185 Financial markets are regulated by: SEBI & ERBI OK
186 Financial services are tangible in nature. False OK
Financial services offered financing risk project e.g. Risk
187 capital scheme of IFCI venture capital fund of IDFI etc. to Venture capital OK
provide ----------------.
Financial institutions, financial
188 Financial system comprises of ……… , ……… , and ……… . OK
markets and financial instruments
189 financing stage is setting the stage for IPO. Mezzanine OK
190 First-stage financing means: Sales are picking up OK
For the registration of merchant banker under SEBI
191 False OK
Regulations, 1992 the
form of loan financing carries lower interest rates
192 initially and, increases when the assisted venture units Conventional loan OK
become commercially operational
193 Free-look period is a period of: 15 days OK

194 Functions of financial services exclude ----------------------. Collection of tax. OK

195 General Insurance Corporation is: Re-insurance company OK

196 Government Securities market is also known as ……… . Gilt-edged market OK

197 Growth fund is primarily: Equity fund OK
Guarantee to subscribe the unsubscribed amount in case
198 underwriting; OK
of issue of securities
199 GVC rating of CRISIL stands for ……… Governance and Value Creation OK
If the NPV of lease is positive, leasing is financially
200 True OK
advantageous.
In 1996, government announced guidelines to regulate SEBI (Venture Capital Fund)
201 OK
the VC industry in the Regulations, 1996
202 In a future contract, there is a reverse gear. False OK
203 In case of ……… , plant visit is made for credit rating. Manufacturing companies OK
In case of operating lease, all the risks are borne by the
204 False OK
lessee.
In hire purchase, the ownership is transferred on the
205 Last installment OK
payment of:
206 in india venture capital firms are usually organized as limited partnership OK
In India, ANZ Grindlays started merchant banking in
207 True OK
1967.
In India, only Qualified Institutional Buyers (QIBs) are
208 True OK
allowed to invest in PTCs.
209 In India, the concept of mutual fund started with: Unit Trust of India OK
210 In loan syndication, there is: group of banks; OK
In November 1988, the GOI decided to institutionalize VC
211 True OK
Industry and
In simple terms, the management of issues for raising
212 Lead management OK
funds through various types of instruments is known as

213 Indemnification implies that the compensation would be Only the actual loss OK
214 Indemnity principle is not applicable to ……… . Life insurance OK
India has the third largest investor base in the world
215 True OK
after USA and Japan.
Indian Venture Capital Fund can exist outside SEBI
216 True OK
Regulations
217 Insurance companies are intermediary institutions. True OK
Insurance is a contractual arrangement between ………
218 Insurer, insured OK
and ……… .
Interest element included in the HP installments is
219 Revenue expenditure OK
treated as:
220 Interest income is the balance of ……… , over ……… Interest income, interest expenses OK
Investment banks with foreign direct investment are Foreign Exchange Management Act,
221 OK
governed by ……… . 1999
222 invests in real estate properties. Real estate fund OK
involves joint underwriting of an issue of securities by
223 syndicate underwriting OK
two or more
224 IPO implies exit of venture capital. True OK
225 IRDA was set up in ……… . 1999 OK
is a certificate that is given to an investor against certain
226 Pass-through-certificates (PTCs) OK
mortgaged backed
is a financial intermediary who helps to mobilize and
227 transfer capital from those who possess it to those who venture capital OK
need it.
is a form of financing of receivables pertaining to
228 forfaiting OK
international trade.
229 is a hybrid security. Preference share OK
230 is a investment in a start up business venture capital OK
is a long term risk capital to finance high technology
231 projects which involve risk but at same time has strong venture capital OK
potential for growth
232 is a measure of volatility of the stock. Beta OK
233 is a method of renting assets lease OK
234 is a Pension Plan. Annuity insurance OK
235 is a ratio of liquidity with banks. Statutory liquidity ratio OK
is a receipt issued by a securitization company or
236 Security receipt OK
reconstruction
237 is a short-term lease. Operating lease OK
is a statement of the proposed terms and conditions of a
238 Term sheet OK
proposed
239 is a subsidiary of Standard and Poor. CRISIL OK
240 is a zero interest account. Current account OK
241 is an alternative to long-term financing. Financial lease OK
242 is an investment in a start-up business venture capital OK
243 is basically a savings and investment corporation UTI OK
244 is example of financial intermediaries. All of the above OK

245 is needed for developing a product in the initial stages seed capital OK
246 is neither a life insurance nor a general insurance. Re-insurance OK
247 is non-cancellable. Capital lease OK
248 is responsible for financial sector reforms in India. RBI OK
249 is speculative in nature. Derivatives market OK
is the most widely used discounted cash flow (DCF)
250 NPV method OK
method in all types
is the owner of the asset and sets up the basic structure
251 Originator OK
to execute the
lease is a long-term lease that is not cancelable and its
252 Financial OK
life often matches the useful life of the asset
253 Lease rentals paid by the lessee are treated as: Revenue expenditure OK
254 LIC is formed under: LIC Act, 1956 OK
Like conventional debt, securitization does inflate a
255 False OK
company’s liabilities.
256 Liquid funds are the least risky. TRUE OK
257 Magadh Stock Exchange is: Closed for ever OK
Merchant banking and investment banking are
258 False OK
functionally similar.
259 Merchant banking is governed u/s 2e of SEBI Regulations 1992 OK
260 Money market is meant for ……… . Short-term funds OK
Mortgage Guarantee Companies have been notified as
261 TRUE OK
Non-Banking Financial
262 Multi-commodity exchange is a: National stock exchange OK
Local and state government
263 Municipal lease is best for ……… . OK
organizations
Mutual fund can benefit from economics of scale
264 Large volume of trades OK
because of
265 Mutual funds are formed as ……… . Trust OK
266 Mutual funds are: Less risky than shares OK
267 n venture capital, ownership rights are given up. True OK
268 NAV is applicable in open-ended mutual funds. TRUE OK
NBFC includes any institution whose principal business is
269 False OK
agriculture activity
270 NBFC is a ……… institution financial OK
271 NBFC Stand for None of these OK
NBFC–Non-Operative Financial Holding Company is
272 TRUE OK
financial institution
273 NBFCs are regulated by: RBI and Others; OK
274 NBFCs stand for: Non-banking financial companies; OK
Non-Banking Financial Companies are entities that
275 TRUE OK
provide financial
276 Non-intermediaries are also called ……… . NBSFOs/DFIs OK

277 NPA is one which has a non-payment of interest for ……… 90 days OK

Of the following fund types, the highest risk is associated

278 Equity Growth Funds OK
with
offers insurance cover on the life of the key personnel in
279 an organisation to protect it from the loss arising out of keyman insurance OK
his death, absence of exit.
offers various guidelines with regard to the registration The Securities and Exchange Board of
280 OK
and functioning India (Credit Rating Agencies)
281 of the credit rating agencies in India. Regulations, 1999 OK
282 One cannot hold shares in physical form. False OK

283 Operating lease is a substitute for long-term financing. False OK

284 Operating lease provides off-balance sheet financing. True OK
285 Preference share is: No voting security OK
286 Primary Market is concerned with: First time issues OK
287 Primary market is IPO market. True OK
Principle of insurance interest is applicable to both life
288 TRUE OK
and general insurance.
289 Product designing in insurance is done by: Actuary OK
Provided at a stages when product has been launched in
290 the market but has not earned enough profits to meet Second round financing OK
future capital needs.
Pure investment banks do not have presence in the
291 True OK
lending or banking business
292 QIBs are those who have: Both (i) and (ii) OK
refers to transaction in which two parties agree to sell
293 re purchase OK
and repurchase the same security.
Registration of Foreign Venture Capital Investors is not
294 True OK
mandatory under the
295 Repurchase agreements are ……… loans. Short-term OK

296 Repurchase agreements are always between the banks TRUE OK

297 Return in venture capital is earned at the time of ……… . Exit OK

298 Riders are additional benefits free of charge. False OK
299 RTGS is only valid in India. FALSE OK
300 Sale and lease back is: A type of finance lease OK
301 SARFAESI Act of securitization was passed in ……… . 2002 OK
302 Scheduled bank is one which is: None of the above OK
scheme enable the society to enjoy the benefits of
303 social insurance OK
insurance at reduced cost.
304 SEBI regulates credit rating agencies in India TRUE OK
305 SEBI regulates insurance industry in India. False OK
306 SEBI regulates the mutual fund industry in India. TRUE OK
307 SEBI was established in ……… . 1992 OK
308 Secondary market and stock market are different False OK
Secondary markets in treasury bills require involvement
309 Brokers, Dealers OK
of ________ and _______?
Securitization improves capital adequacy ratio of the
310 True OK
banks.
311 Securitization is a tool of financing. True OK
312 Securitization is the process in which assets are: All of the above OK
Securitization provides off-balance sheet financing to the
313 True OK
originator.
314 Securitization results in: Reduced cost of funds OK
315 Seed financing is in the later stage False OK
316 Sensex comprises of: 30 companies OK
Sharpe ratio is more appropriate for well diversified
317 TRUE OK
portfolios than Treynor.
318 SIP is meant for large investors. False OK
319 Skip lease is flexible in nature True OK
320 Specialised institutions are also called ……… NBSFOs/DFIs OK
SPV finances a portion of the assets with debt that does
321 True OK
not recourse to the
322 SPV stands for: Special-purpose vehicle OK
323 Start-up financing is at the business plan stage. True OK
State Industrial Development Corporations and State
324 True OK
Financial Corporations
325 Stock market is concerned with: Subsequent trading OK
Structure is responsible for bringing together the
326 True OK
partners to a securitisation
327 Sub-broker is a member of stock-exchange. False OK
328 Systematically important NBFCs are whose asset size is ` 500 cr or more OK
329 The _______ has to manage the post-issue activities. Lead manager OK
The additional finance provided by VCFs to overcome
330 Second round financing OK
fledging stage is called -----------------.
 The Board Committees required for NBFCs are: audit
331 risk management committee OK
committee, nomination
The Bower Herringer Williamson method is also used as
332 True OK
equivalent loan method.
The capital adequacy requirement for the registration of
333 net worth of ` 5 cr.; OK
merchant banker
334 The component of a capital market is_________ None of these OK
The consideration for lease is either premium or rent,
335 which is the price paid or promised in consideration of True OK
the property.
336 The credit enhancer can be a: Either of the above OK
337 The essential elements of a lease are All of the above OK
The fiasco of 2008 in US had securitization as the key
338 True OK
factor responsible for it.
339 The first leasing company set up in India was ……… . First Leasing Company of India Ltd. OK
The first mutual funds regulations were introduced in
340 1993 OK
India in:
341 The hybrid security issued by a company is ……… . Preference share OK
The initial registration fee for merchant banker as per
342 ` 20 lacs OK
SEBI Regulations is
343 the investors hold commercial paper generally from issuance to maturity OK
The issuer has an exit option in case of unacceptable
344 TRUE OK
rating.
345 The lease can be for perpetuity. True OK
The lessee pays a ……… to the lessor for the use of an
346 Lease rental OK
asset for a specified period.
347 The main characteristic of Income fund is ……… . Debt orientation OK

call money, commercial bills, Treasury

348 the main instruments of organised money market are OK
bills, certificate of deposite
the market for short term instruments of maturity of less
349 Treasury Bills market OK
than one year is known as
The mutual funds industry in India now functions under
350 TRUE OK
the SEBI (Mutual
351 The Nature of lease rent is Deferred revenue expenditure OK
The net present value method is the Discounted Cash
352 True OK
Flow (DCF) method.
The obligor is the ……… of the original loan or originator’s
353 Borrower OK
debtor
The one who collects the payment due from the
354 Administrator OK
obligor(s) and forwards the payment to the SPV is:
the period of which the lease agreement remains in
355 Lease term OK
operation is called
The present value of minimum lease payments between
356 False OK
the lessor and lessee
357 The primary function of the financial system is to All of the above OK
The private sector in India was granted permission to
358 1993 OK
enter the mutual fund industry in
the private sector was granted permission to enter the
359 1992 OK
mutual fund industry in
The requirement of minimum net owned fund for NBFC
360 200 lakh OK
is ……… .
the sale of a mortgage portfolio by setting up mortgage
361 Securitization OK
pass-through securities is an example of
The securities backed by a pool of retail loans are
362 Asset-backed securities (ABS) OK
referred to as ……… .
The securities created by securitization of a pool of
363 Mortgage-backed securities (MBS) OK
mortgage loans are referred
364 The sub-prime mortgage crisis happened in ……… . 2008 OK
The type of lease that includes a third party, a lender, is
365 Leveraged lease OK
called
The VC method values the business on the basis of net
366 Last year OK
income projected in
There are ……… categories under which registration of
367 four OK
merchant bankers can
There is a reduction in available capital of the banks due
368 False OK
to securitization.
Those who invest money into the venture fund are
369 Limited OK
known as
370 Tier–I is the secondary capital. FALSE OK
Traditional funding is security-backed whereas venture
371 True OK
capital is not.
372 Treasury bills are issued by RBI. True OK
373 Treasury bills are issued by SEBI. False OK
374 Treasury bills are: All of the above OK
375 Treasury bills’s rating is mandato False OK
Private limited companies are outside the rating
376 TRUE OK
umbrella
377 ULIPS are: Market based OK
Under ………., a third party is involved besides the lessor
378 Leveraged leasing OK
and lessee.
Under direct leasing, a firm acquires the right to use an
379 True OK
asset from the
380 under hire purchase system depreciation is charged on cost price OK
381 Under hire purchase system who has the right of sell hire vendor OK
under hire purchase system, if installment is not paid the
382 repossession of goods OK
hire vendor has right to_____
Universal banks and NBFC investment banks are
383 RBI & SEBI OK
regulated by:
US insurance industry is state-based, whereas Indian
384 TRUE OK
insurance industry is centralised.
385 Venture capital is: Risk capital OK
Which of the following instrument is not a negotiable
386 Crossed cheque OK
instrument
which of the following is an short term financial
387 Treasury bills OK
instruments
388 Which of the following is traded in a money market? Terasury bills OK
Which of the following members would you not find in
389 underwriters OK
the secondary stock market?
Which scheme enable the society to enjoy benefits of
390 social insurance OK
insurance at reduced cost
391 Whole life insurance is a risk cover plan. TRUE OK
392 Zero coupon bonds are discounted instruments. True OK
Reduce the probability of cost
393 The contingency budget will be OK
overruns.
A project on software development and construction of
394 Project Management Process Groups. OK
a bridge are similar to each other in terms of:
395 Root Cause Analysis relates to Process analysis OK
A Project Managers main responsibility in a project
396 Ensuring it is high quality OK
meant to create a product is
A project manager has a problem with a team members
397 performance. What is best form of communication for Informal verbal communication. OK
addressing this problem?
398 A Pareto diagram can be best described as: Histogram OK
 Which of the following process would apply if you had to
communicate with the project team members to
399 Manage Stakeholder Engagement OK
understand their expectations from the outcome of their
project?
400 Process Analysis is a function of Process Improvement plan OK

401 At which stage, does a typical project has maximum cost Middle stage OK

Risk register documents the risks in

402 Which of the following statements is true about risks? OK
detail.
determining the amount of time the
403 the float of an activity is determined by activity can be delayed before it OK
delays the critical path.
Assuming that the ends of a range of estimates are +/- 3
Optimistic = 26 days, most likely = 30
404 sigma from the mean, which of the following range OK
days, pessimistic = 33 days
estimates involves the LEAST risk?
A planning phase for an engineering component
generated 80 engineering drawings. The QA team
405 Statistical sampling OK
randomly selected 8 drawings for inspection. This
exercise can best be described as example of
All of the following are the responsibility of a project Determine the legality of company
406 OK
manager except? procedures.
During a project team meeting, a team member suggests
an enhancement to the scope that is beyond the scope
407 of the project charter. The project manager points out scope management. OK
that the team needs to concentrate on completing all the
work and only the work required. This is an example of:
Regulatory, currency changes,
408 Which of the following fit the category of external risks? OK
taxation
409 which of these is not one of the constraints of a project Team OK

Approximately what percentage of the project managers

time is spent in some form of communicaiton such as
conferences meetings writing memos reading and
410 75-90% OK
preparing reports and talking with projec team
memebers upper management and all other stalk
holders?
The name for the tool used in Perform Quality Assurance
to represent decomposition hierarchies such as the WBS
411 (work breakdown structure), RBS (risk breakdown Tree Diagrams OK
structure), and OBS (organizational breakdown structure)
is:
A risk is defined as ____________ event or condition
412 that, if it occurs, has a positive or negative effect on one uncertain, objectives OK
or more project______________.
413 trend analysis is often performed using Run Chart OK
Other operations are ongoing
414 Which of the following is a project? OK
operations and not projects.
When checking the calendar of a team member to
schedule a meeting, you see she has scheduled a address the concern with the team
415 OK
meeting with a key stakeholder that you were not member.
informed of. The best approach would be to:
Calculating the cumulative sum of the
probability for each risk and
The total amount of risk that is calculated for a project is
416 multiplying this value times the OK
found by
consequence of occurrence of the risk
events
 A project manager is employed by a construction
company and is responsible for the furnishing of the
417 Project charter OK
completed building. One of the first things that the
project manager for this project should do is to write a
Omar a project manager in a construction company is
preparing for meeting with the stakeholders to update
them about the status of the project after the monitoring
Project management information
418 and controlling of the project work. For the information, OK
system
Omar will access automated tools such as performance
indicator databases financials or resourcing tools
through.
Establish the earned value
419 Project Cost Control excludes? OK
management techniques
420 Which of the following is not a stakeholder? Competitor OK
A schedule activity may begin 10 days before the
421 Finish-to-Start OK
predecessor activity finishes. This is an example of:
The tools and techniques used in the process of
422 Cost of Quality OK
Determine Budget includes all but
The process of developing an approximation of the
423 monetary resources needed to complete project Estimate Costs OK
activities is known as
A large, complex construction project in a foreign
country requires coordination to move the required
equipment through crowded city streets. To ensure the
424 equipment is transported successfully, your contact in Pay the fee. OK
that country informs you that you will have to pay the
local police a fee for coordinating traffic. What should
you do?
Risk register documents all the risks in
425 Which of the following statements is true about risks OK
detail.
The measure along the level of uncertainty or the level
of impact at which a stakeholder may have a specific
426 interest. Below that, the organization will accept the risk, Risk Threshold OK
and above this measure the organization will not accept
the risk. It is known as
During project executing, a team member comes to the
project manager because he is not sure of what work he
Work breakdown structure (WBS)
427 needs to accomplish on the project. Which of the OK
dictionary
following documents contain detailed descriptions of
work packages?
The project you are managing has nine stakeholders.
428 How many chanel of communicaiton are there between 36 OK
these stakeholders?
A major negotiation with a potential subcontractor is
scheduled for tomorrow when you discover there is a
429 Postpone the negotiations. OK
good chance the project will be cancelled. What should
you do?
To identify the risks involved, John sends a questionnaire
430 to gather inputs from experts. Which technique is John Delphi technique OK
using?
Which of the following does NOT generate changes to
431 Define Activities OK
the Project documents
 You are the project manager for a large project that is
completed on time and on budget. The customer and all
of the stakeholders are pleased with the results. As a
direct result of the successful completion of the project,
your manager approves a bonus of $25,000 to you. Ask the team members how they
432 OK
There are fifteen members of the project team. One of would divide the money.
the people on the project team has been a very low
contributor to the project the other fourteen have all
been good performers What should you do with the
money?
A team member notifies the project manager that the
activities comprising a work package are no longer
433 Monitoring and controlling OK
appropriate. It would be BEST for the project manager to
be in what part of the project management process?
You just found out that a major subcontractor for your
project consistently provides deliverables late. The
434 subcontractor approaches you and asks you to continue compromise OK
accepting late deliverables in exchange for a decrease in
project costs. This offer is an example of:
The Project Managers have maximum authority in which
435 Strong Matrix OK
type of organization?
A project is plagued by changes to the project charter.
436 Who has the primary responsibility to decide if these Sponsor OK
changes are necessary?
437 process analysis is a function of Process Improvement plan OK
One of the project documents available to Andrew lists
438 down all the risks in a hierarchical fashion. What is this Risk Breakdown Structure. OK
document called?
Project A has an internal rate of return (IRR) of 21
percent. Project B has an IRR of 7 percent. Project C has
439 Project C OK
an IRR of 31 percent. Project D has an IRR of ig percent.
Which of these would be the BEST project?
A project manager is faced with making a decision about
a risk that the team has identified. The risk involves the
design of a bicycle. It has been found that the neck of the
bicycle, where the steering bearing is located and the
two supporting bars of the frame come together, will
440 corrode in a high salt evironmen. If this takes plave the Risk avoidance OK
neck may fail and injure the rider. the project team
decides that the desingn of the bicylcle should be
modifified by using corrosion resistant materials in the
design of the neck. This will eliminate the risk from
consideration. This technique is called.
A project manager is using a cause and effect diagram
with the team to determine how various factors might
441 be linked to potential problems. In what part of the Plan Quality Management OK
quality management process is the project manager
involved?
most of the project manager's external communication
442 Written documents OK
comprises
The processes involving planning, estimating, budgeting,
financing, funding, managing, and controlling costs so
443 Project Cost Management OK
that the project can be completed within the approved
budget fall under
 The project manager is considering contracting some fo
the work of the project to service burean The service
bureau has been used in the past by this project manger
444 The manager has several choices of contracts that can be make or buy OK
used to subcontracts this work. which of the follwong is
not atype fo contract that the project manager might
choose?
445 Following are the features of financial services except Constant Book Question (Chapter-1)
446 Which of the following is a type of financial services? Securitization Book Question (Chapter-1)
Which of the following is not a fund based financial
447 both (a) and (b) Book Question (Chapter-1)
service?
“Aspecialized service provided by financial institutions in
which financial ins tu ons buys (through an
448 Factoring Book Question (Chapter-1)
agreement) receivables from the seller of services/goods
and manages seller’s receivables.” is known as
449 Loan syndication is an example of Non-fund based financial service Book Question (Chapter-1)
Which of the following are the parties involved in a
450 All off the above Book Question (Chapter-1)
forfaiting agreement
451 The banking system in a country is an example of Organized financial system Book Question (Chapter-2)
Which of the following is a component of un-organized
452 All of the above Book Question (Chapter-2)
financial system in India?
453 Financial instruments can be of following duration: All of these Book Question (Chapter-2)

454 Primary market and secondary market are the types of Capital Market Book Question (Chapter-2)

“No interest is payable for a specific period (called lock

in period) and on the com ple on of this period these Zero interest fully convertible
455 Book Question (Chapter-2)
debentures are automatically converted into the shares debentures
of that company.” Name the type of debenture.
Which of the following is not an instrument of money
456 Equity shares Book Question (Chapter-2)
market?
457 Which of the following is not related to capital market? Money market Book Question (Chapter-2)

Which of the following parties can issue commercial

458 Both (b) and (c) Book Question (Chapter-2)
papers?
459 Exchange trades and OTC markets are examples of Financial Markets Book Question (Chapter-2)
460 Forward, future, option and swaps are examples of Derivatives Book Question (Chapter-2)
procedure of converting physical
461 Dematerialization is said to be: Book Question (Chapter-3)
shares into electronic shares
462 CDSL was formed in which year 1999 Book Question (Chapter-3)
Which of the following is not a feature of the depository
463 None of the above Book Question (Chapter-3)
system in India
International Securities Identification
464 ISIN is abbreviated for Book Question (Chapter-3)
number
“Fungible” means, as shares would not have
Similar securities of a company are
465 distinguishing features such as distinc tive nos., Book Question (Chapter-3)
transposable
certificate nos., etc.:
As per SEBI requirements, a depository in India has to
466 All of the above Book Question (Chapter-3)
maintain a record of which of the following
Which of the following is a type of special service
467 Public issues Book Question (Chapter-3)
provided by depositories
Which of the following aspect is not covered in the
468 None of the above Book Question (Chapter-3)
Depositories Act, 1996.
Out of the following which organization provides for the
469 maintenance of the owner ship records of the securi es Depositories Book Question (Chapter-3)
in the book entry form?
 One of the following places does not have a stock National Securities Clearing
470 Book Question (Chapter-3)
exchange, name of that place is Corporation Limited (NSCCL)
471 Which was the first private mutual fund in India? Kothari Pioneer (1993) Book Question (Chapter-4)
Which was the first public sector mutual fund to be set
472 up after the Unit Trust of SBI Mutual Fund Book Question (Chapter-4)
India?
Mutual funds are regulated in India by which among the
473 SEBI Book Question (Chapter-4)
following?
474 Investment objective is closely linked to scheme Book Question (Chapter-4)
475 The assets of the mutual fund are held by custodian Book Question (Chapter-4)
476 Most investor service centers are offices of registrar Book Question (Chapter-4)
477 SEBI regulates All of the above Book Question (Chapter-4)
478 The difference between NAV and re-purchase price is exit load Book Question (Chapter-4)
479 The comparable for a liquid scheme is savings bank account Book Question (Chapter-4)
Which of the following aspects of portfolio would an
480 Weighted average maturity Book Question (Chapter-4)
investor in debt scheme give most importance to?
481 Match the following: (1-c,2-d,3-a,4-b) Book Question (Chapter-5)
482 CRISIL was formed in 1987 Book Question (Chapter-5)
In which of the following year Brickworks commenced it
483 2008 Book Question (Chapter-5)
operation in India
484 Which of the following is not rated by CRAs? Debtors Book Question (Chapter-5)
Only give suggestions to the investors
485 The CRA takes Book Question (Chapter-5)
to take decision
486 Which of the following is not registered with SEBI? 2 and 3 Book Question (Chapter-5)
487 Credit rating agencies provides Both (a) and (b) Book Question (Chapter-5)
488 The emergence of CRAs is associated with US railroad companies Book Question (Chapter-5)
489 Credit rating agencies provide ratings for Both (a) and (b) Book Question (Chapter-5)
During 1813, John Palmer & Co. was operating banking
490 activities from Calcutta and was popularly known as an Agency house Book Question (Chapter-6)
and was employing huge capital in
The merchant banking in India was formally introduced
by the Na onal and Grind lays Bank which was known
491 Grindlays Bank in 1967 Book Question (Chapter-6)
as and Reserve Bank of India issued a license of
merchant banking to .
“A merchant banker has been defined as any person who
is engaged in the business of issue management either
by making arrangements regarding selling, buying or
492 subscribing to securities or acting as managers SEBI (Merchant Bankers) Rules, 1992 Book Question (Chapter-6)
consultant, advisor or rendering cor porate advisory
services in relation to such issue management”. This
definition of merchant bankers is given by the

493 Following are the functions of merchant bankers except Economic level policy making Book Question (Chapter-6)

Following are the regulators of Merchant banking in

494 Company Act, 1946 Book Question (Chapter-6)
India except
Which one of the following is/are the major
495 objective/objectives of Securities and Exchange Board of All of the above Book Question (Chapter-6)
India (Merchant Bankers) Regulations, 1992?
Which of the following is not a role of a merchant
496 None of the above Book Question (Chapter-6)
banker.
497 Which of the following is a chapter of SEBI’s regulations. All of the above Book Question (Chapter-6)

For providing equity investment for

498 Venture capital market refers to the Book Question (Chapter-7)
startup firms
 In 2000 SEBI appointed one committee to investigate
about the obstacles in the way of venture capital in India
499 Chandrasekhar Committee Book Question (Chapter-7)
and suggest measures to improve the condition of
venture capital in India. Name of that committee is

From 25 January, 1995 SEBI is the regulating authority

Security and Exchange Board of India
for the venture capital in India and SEBI made some
500 (Venture Capital Funds) Regulations, Book Question (Chapter-7)
guidelines for the venture capital. Name of those
1996
guide lines is

Which one of the following does not come under the

501 Replacement capital Book Question (Chapter-7)
early stage financing by ven ture capital?
502 Following are the features of venture capital except Less risk Book Question (Chapter-7)

For businesses at all stages but

503 Private Equity Investors provide funds for Book Question (Chapter-7)
preferably at growth or maturity stage
504 The origin of venture capital fund was found in ULS. Book Question (Chapter-7)
Indian Private Equity and Venture Capital Association
505 1993 Book Question (Chapter-7)
(IVCA) was established in
Which of the following statement is not true with regard
506 None of the above Book Question (Chapter-8)
to the securitization?
They buy assets from the originator
507 Tick the correct definition of special purpose vehicle. Book Question (Chapter-8)
which are to be securitized.
Which of the following is not a participant of They buy assets from the originator
508 Book Question (Chapter-8)
securitization. which are to be securitized.
Which of the following is not regarded as a risk of
509 Neither (a) nor (b) Book Question (Chapter-8)
securitization
Which of the following is not a step of the securitization
510 None of the above Book Question (Chapter-8)
process
Q.1 Bancassurance originated in India in by a notification
511 2000 Book Question (Chapter-9)
issued by the

512 Which of the following is not a part of the growth of None of the above Book Question (Chapter-9)
insurance
513 Which of the following is a type of regulation All of the above Book Question (Chapter-9)
514 Which of the following is not an insurance risk None of the above Book Question (Chapter-9)
Which of the following is not a major player in the life
515 Pathway Insurance Union Book Question (Chapter-9)
insurance sector
516 Which of the following is form of plastic money? Both (a) and (c) Book Question (Chapter-10)

Providing banking services to

517 The retail banking refers to Book Question (Chapter-10)
individuals
Which of the following is known as a value-added
518 Cash management services Book Question (Chapter-10)
services under wholesale banking
519 Letter of credit is a Non-fund based service(b) Book Question (Chapter-10)

Non-banking financial companies may take different kind

of structural forms. These structures further can be
classified into companies accepting deposits and those
520 com panies which are not accep ng deposits. Registered and regulated by RBI Book Question (Chapter-10)
Investment Co., Loan Co., Hire Purchase finance Co.,
Equipment Leasing Co. and Residuary non-banking Co.
are under the heading of
…........means any company which is a financial
521 institution carrying on the ac quisition of securities as its Investment company Book Question (Chapter-10)
principal business.
 Nidhi companies (mutual benefit finance company),
Poten al Nidhi Company (Mu tual Benefit Company)
522 and Chit Funds (other non-banking company) are Not registered but regulated by RBI Book Question (Chapter-10)
companies
which are:
In December 2006, RBI gave re-classification of NBFCs.
Asset financing company, investment
523 As per this reclassification following is the new Book Question (Chapter-10)
company and loan company
classification for NBFCs.