Description : The collar of a floating-rate bond refers to the minimum and maximum ______. a) call periods b) maturity dates c) coupon rates d) yields to maturity
Last Answer : c) coupon rates
Description : ______ refers to financing of an enterprise which has overcome the highly risky stage and have recorded profit but cannot go public, thus needs financial support. (a)Venture capital b) development capital c) seed capital)
Last Answer : b) development capital
Description : Individuals hold their claims on real assets through ____________ in a well-developed economy. a) intangible assets b) tangible assets c) real estate d) financial assets
Last Answer : d) financial assets
Description : Which of the following is not a prescribed asset class under the Companies (Registered Valuers and Valuation) Rules, 2017? a) Enterprise b) Securities or Financial Assets c) Plant and Machinery d) Land and Buildings
Last Answer : a) Enterprise
Description : _______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives
Last Answer : c. Derivatives
Description : Which of the following statements is most correct? A. For small companies, long-term debt is the principal source of external financing. B. Current assets of the typical manufacturing firm account ... the financial manager to make a decision and not address the issue again for several months.
Last Answer : B. Current assets of the typical manufacturing firm account for over half of its total assets.
Description : ______ __ services are mainly provided to foreign investors. a. Custodial Services b. Financial Services c. Factoring Services
Last Answer : a. Custodial Services
Description : A perpetual bond does not have a fixed _________. a) interest rate b) maturity period c) duration d) underlying asset
Last Answer : b) maturity period
Description : Which of the following bonds has the shortest duration? a) A bond with 20-year maturity, 10% coupon rate b) A bond with 20-year maturity, 6% coupon rate c) A bond with 10-year maturity, 6% coupon rate d) A bond with 10-year maturity, 10% coupon rate
Last Answer : All else constant, a bond with a longer maturity will be more sensitive to changes in interest rates. All else constant, a bond with a lower coupon will have greater interest rate risk. The correct answer was D) 10-year maturity, 10 percent coupon rate.
Description : Finance is not available in the following factories service _________ a. Without Recourse factoring b. With recourse factoring c. Maturity factoring
Last Answer : c. Maturity factoring
Description : ‘Economies of Scale’ arises from _______ synergy in Merger and Acquisitions. a) operating b) financial c) managerial d) market
Last Answer : a) operating
Description : A set of complex and closely connected instructions, agents, practices, markets transactions, claims and liabilities relating to financial aspects of an economy is referred as: _____. a. Financial system b. Financial market c. Financial institution
Last Answer : a. Financial system
Description : The term _________ refers financial investment in highly risky and growth oriented venture with the objective of earning a high rate of retune.(a) Venture capital)Merchant banking c)leasing)
Last Answer : (a) Venture
Description : If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0
Last Answer : c) Rs.1,50,000
Description : Buying low in one market and selling high in the other market , it called ______ a. Arbitrage trading b. Hedging c. Clearing
Last Answer : a. Arbitrage trading
Description : According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is ___________. a) Top-down b) Bottom–top c) Horizontal d) Vertical
Last Answer : a) Top-down
Description : Measurement and disclosure do not apply to which of the following? a) Leasing based transactions b) Net realizable values/Impairment of Assets c) Share based payments d) Price received to sell or buy an asset
Last Answer : d) Price received to sell or buy an asset
Description : Which of the following method would you consider appropriate while valuing the intangible assets? a) Multiple b) Relative c) Consistent d) Exclusive
Last Answer : b) Relative
Description : Which of the following is an asset pricing model based on the ideas that an asset’s returns can be predicted using the relationship between that asset and many common risk factors? a) Arbitrage pricing theory b) Arbitrage risk theory c) Arbitrage asset theory d) Risk pricing theory
Last Answer : a) Arbitrage pricing theory
Description : When an investor uses a derivative instrument to reduce his exposure to the price volatility of certain underlying assets, he is said to be _______. a) speculating b) squaring c) hedging d) arbitraging
Last Answer : c) hedging
Description : Which of the following valuation methods would most likely not be used for business valuation? a) Discounted Cash Flow b) Net Assets Method c) Multi-period Excess Earning Method d) Industry Price Earnings Ratio
Last Answer : c) Rs.200 crore
Description : Value of a firm is usually based on ________. a) the value of debt and equity b) the value of assets and liabilities c) the value of debt d) the value of equity
Last Answer : d) the value of equity
Description : Under the Insolvency and Bankruptcy Code, 2016, the fees of the liquidator is paid from the proceeds of sale of the ____________of the corporate debtor. a) unencumbered liabilities b) liquidation assets c) liquidation fund d) unencumbered reserves
Last Answer : b) liquidation assets
Description : Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets
Last Answer : c) Decrease in creditors
Description : . If debt equity ratio is 3:1; the amount of total assets are Rs.20 lakh; current ratio is 1.5:1 and owned funds are Rs.3 lakh. What is the amount of current assets? a) Rs.5 lakh b) Rs.3 lakh c) Rs.12 lakh d) Rs.15 lakh
Last Answer : c) Rs.12 lakh
Description : Which of the following is not a financial service under the Insolvency and Bankruptcy Code, 2016? a) Accepting of deposits b) Effecting contracts of insurance c) Payment of wages to employees d) Establishing an investment scheme
Last Answer : c) Payment of wages to employees
Description : Which of the following may not be a part of projected financial statements? a) Income Statements b) Trial Balance c) Cash Flow Statements d) Balance Sheets
Last Answer : b) Trial Balance
Description : Dunham Greenberg formula is not based the consumer’s _____(a) material status b) Income level c) financial position)
Last Answer : (a) material status
Description : The setting up of the National Housing Bank (NHB), a fully owned subsidiary of the Reserve Bank of India in _____ as the apex institution marketed the beginning of emergence housing finance as a fund based financial services in India.(a) 1987, b) 1978, c)1988)
Last Answer : c)1988)
Description : ___ Stages of financial includes financing development, expansion, buyout etc.(a) Early stage financing, b) later stage financing c) none)
Last Answer : b) later stage financing
Description : IDBI, IFCI, ICICI etc. are promoted by_____.(a) private VCs b)VCFs of specialize financial institutions c) both )
Last Answer : b)VCFs of specialize financial institutions
Description : _____is referred as both fund based and fee based financial service.(a) Higher purchase b) underwriting c) Factoring)
Last Answer : b) underwriting
Description : In __________ leasing, the risk of obsolescence is assumed by the lessee.(a)Financial lease b) Operational lease c) both )
Last Answer : (a)Financial lease
Description : The central theme of forfaiting is the purchasing of ________by a financial service company. d. Trade bill e. Export bill f. Import bill
Last Answer : e. Export bill
Description : The process of selling trade debts of a client to a financial intermediary is called______ a. Factoring b. Securitisation c. Materialisation
Last Answer : a. Factoring
Description : If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note
Last Answer : d) cap in a floating-rate note
Description : valuer should not use or divulge to other clients or any other party any confidential information about the ______ company. a) subject b) client c) public d) listed
Last Answer : a) subject
Description : ______ is used to estimate the worthiness of the credit for company, country or any individual company. .(a) credit evaluation b) Credit rating c) both )
Last Answer : b) Credit rating
Description : ______ is a privilege of credit card offered to the family members i.e. spouse, parents or children above 18 years of age of the primary credit card holder. (a) Add- plus card b) Add on card c) both)
Last Answer : b) Add on card
Description : ______ is an isolated function of a credit risk evaluation.(a) Credit rating b) credit evaluation c) both )
Last Answer : (a) Credit rating
Description : ______ is the opinion of the rating agency on the relative ability and willingness of the issuer of the debt instrument to meet the debt service obligation as and when the arise. (a) merit rating b) credit rating c) rating by merchant banker )
Last Answer : (a) merit rating
Description : Budget card requires monthly payment on behalf of that ______.(a) holder b) banker c) seller)
Last Answer : (a) holder
Description : An applicant scoring more than ______ point is considered as one with goods credit standing.(a)50 b)70 c) 40)
Last Answer : b)70
Description : ______ refers to the transfer of management control by creating a separate business by separating it from their existing owner.(a) Buy Out b) Buy in c)
Last Answer : (a) Buy Out
Description : Underwriters build up ______ confidence in the issue of securities. a. Borrowers b. Investors c. Company
Last Answer : b. Investors
Description : ______ Banks help to revive (cure) sick industrial units. a. Public b. Merchant c. All
Last Answer : b. Merchant
Description : Credit Protection is available in ______ a. Without Recourse factoring b. With recourse factoring c. None of the above
Last Answer : a. Without Recourse factoring
Description : Under the SEBI (Share Based Employee Benefits) Regulations, 2014, appreciation means the difference between the ______________. a) market price of the share of a company on the date of exercise of stock ... a company on the date of exercise of share appreciation right (SAR) and the SAR price.
Last Answer : market price of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.
Description : An investment entity evaluates the performance of its investments on __________value basis. a) fair b) book c) market d) use
Last Answer : a) fair
Description : A disadvantage of the Enterprise Value method for valuing equity is that it may be difficult to obtain the information about _______. a) operating income b) market value of debt c) market value of equity d) cash and cash equivalent
Last Answer : b) market value of debt