Description : An ________relieves the company of the risk and uncertainty of marketing the securities. a. Underwriter b. Shareholder c. Banker
Last Answer : a. Underwriter
Description : A_________ include the following call for periodical report from the company. a. Underwriter b. Shareholder c. Debenture trustee
Last Answer : c. Debenture trustee
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 : Repo transaction means (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date. (b) Sale of securities by the holder to the ... of securities by the holder to the investor with the agreement to purchase them at market driven rate.
Last Answer : (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date.
Description : ___________ is the risk that an issuer will fail to satisfy the terms of the agreement with respect to the timely payment of interest and principal. a) Default risk b) Credit spread risk c) Volatility risk d) Downgrade risk
Last Answer : a) Default risk
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 : Securities issued by companies are traded in _______________. a) derivatives market b) tertiary market c) primary market d) secondary market
Last Answer : Which of the following is not a conduct most people associate with ethical behaviour? a) Bargaining b) Respect for others c) Loyalty d) Pursuit of excellence
Description : _______ look for opportunities to take on risk in the hope of making return a. Shareholder b. Hedgers c. Speculators
Last Answer : c. Speculators
Description : Which principle tells us that an investor will not invest in an asset if a more attractive substitute exists? a) Principle of alternative b) Principle of expectation c) Principle of substitution d) Principle of risk and return
Last Answer : c) Principle of substitution
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 : Budget card requires monthly payment on behalf of that ______.(a) holder b) banker c) seller)
Last Answer : (a) holder
Description : The greatest security for a banker is that a________ a. Bill of Exchange b. Mutual fund c. Commercial Paper
Last Answer : a. Bill of Exchange
Description : Reverse Repo transaction means (a) Sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date (b) Sale or purchase of securities by the ... of securities by the holder to the investor with the agreement to purchase them at market driven rate
Last Answer : (b) Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date
Description : In which of the following instruments the investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue. A. Non Convertible ... Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. None of the Above
Last Answer : D. Optionally Convertible Debentures (OCD) Explanation: The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.
Description : Which one of the following is not an objective of the introduction of Primary Dealer System ? (A) To encourage a voluntary holding of govt. securities amongst a wider investor base (B) To ... (C) To strengthen the private equity infrastructure (D) To strengthen the govt. securities infrastructure
Last Answer : Answer: To strengthen the private equity infrastructure
Description : STRIPS stands for ______________. a) Separate Trading of Registered Interest and Principal Shares b) Segregated Trading of Registered Interest and Principal Securities c) Separate Trading of ... Interest and Principal Securities d) Segregated Trading of Registered Interest and Principal Shares
Last Answer : c) Separate Trading of Registered Interest and Principal Securitie
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 : Underwriters build up ______ confidence in the issue of securities. a. Borrowers b. Investors c. Company
Last Answer : b. Investors
Description : ________was constituted to protect the interests of investors in securities and to promote the development of and to regulate the securities market through appropriate measures. a. RBI b. SEBI c. BSE
Last Answer : b. SEBI
Description : What does amortization mean? A. Spreading payments over multiple periods B. Buying a financial instrument in order to sell the same instrument at a higher price in another market C. Issuance approval, ... issuer D. Buying the underlying securities at a specified excercise price E. None of the Above
Last Answer : A. Spreading payments over multiple periods Explanation: Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.
Description : When attempting to build a risk premium into the required returns of stocks in a developing country, an analyst should use the ________. a) country spread model b) country's weighted average cost of capital c) modified Gordon growth model d) dividend discount model
Last Answer : a) country spread model
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 : Identify odd one out ________ (a) CRISIL b) ICRA c) ICICI )
Last Answer : c) ICICI )
Description : Membership of ________ can be taken by an individual, Registered Partnership Firm, Corporate or bank. a. SEBI b. RBI c. MSEI
Last Answer : c. MSEI
Description : he practice of discounting accommodation bills is known as ________ a. Night bill b. Kite flying c. Knight bill
Last Answer : b. Kite flying
Description : The maximum load that a fund can exchange is determined by ________ a. SEBI b. RBI c. AMFI
Last Answer : a. SEBI
Description : Banking sector comes under which of the following sectors ________. a. Marketing sector b. Service sector c. Industrial sector
Last Answer : b. Service sector
Description : NBFC performs great role for finance in _______ a. Wholesale sector b. Big Scale industries c. Small scale and Retail sector
Last Answer : c. Small scale and Retail sector
Description : Cheque card issued by a bank which guarantees the payment of_______ within prescribed limit. (a) Cheque b) purchase c) cash
Last Answer : (a) Cheque
Description : Travel and Entertainment Card (T&E) are primarily for_____ purposes.(a) purchase b) travel and entertainment c) movie )
Last Answer : b) travel and entertainment
Description : Hire purchase Act passed in the year_____.(a) 1972, b)1973,c)1975)
Last Answer : (a) 1972
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 hire purchase depreciation can be claimed by the____.(a) Vender b) hirer c) Financiers)
Last Answer : b) hirer
Description : What is the relation between fiscal deficit (FD) and primary deficit (PD)? a) PD = FD - Depreciation b) PD = FD - Interest payments c) FD = PD - Interest payments d) FD = PD - Depreciation
Last Answer : PD = FD - Interest payments
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 : Under firm underwriter g, the underwriters do not agree to purchase any shares.
Last Answer : FALSE
Description : A Shareholder has been defined by ________ A. Banking Regulation Act, 1949 B. Reserve Bank of India Act, 1934 C. Negotiable Instruments Act, 1881 D. Indian Contract Act, 1872 E. The companies act, 1956
Last Answer : E. The companies act, 1956 Explanation: The Companies Act, 1956 ―Small Shareholder‖ means a shareholder holding shares of nominal value of twenty thousand rupees or less in a public company to which section 252 of the Act applies.
Description : Sub-prime lending refers to ________ A. lending done by banks at rates below PLR B. Funds raised by the banks at sub-libor rates C. Group of banks which are not rated as ... institutions including banks to customers not meeting with normally required credit appraisal standards E. All of the Above
Last Answer : D. lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards Explanation: In finance, subprime lending (also referred to ... schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc.
Description : The free cash flow to the firm (FCFF) is closest to ___________. a) Rs.130 lakh b) Rs.112 lakh c) Rs.118 lakh d) Rs.124 lakh
Last Answer : c) Rs.118 lakh
Description : The terminal value in year 6 is closest to __________. a) Rs.22.57 b) Rs.20.42 c) Rs.24.30 d) Rs.25.70
Last Answer : a) Rs.22.57
Description : The per share value Dev should assign to RC Ltd. is closest to ___________. a) Rs.15.35 b) Rs.20.86 c) Rs.17.35 d) Rs.18.46
Last Answer : c) Rs.17.35
Description : The required rate of return is closest to ____________. a) 10.012% b) 7.062% c) 0.062% c) 11.065%
Last Answer : c) 0.062%
Description : There are two income-based approaches that are primarily used when valuing a business, the Capitalization of Cash Flow Method and the ___________. a) Net Present Value Method b) IRR Method c) Discounted Cash Flow Method d) Discounted Payback Period
Last Answer : c) Discounted Cash Flow Method
Description : Which of the following is the capitalization rate of the BC Ltd.? a) 5.0% b) 3 % c) 4% d) 4.5%
Last Answer : c) 4%
Description : What is the annual future earnings of the AZ Ltd. using ‘Capitalization of Earning Method’? a) Rs.150 crore b) Rs.180 crore c) Rs.200 crore d) Rs.190 crore
Last Answer : c) Rs.200 crore
Description : The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration
Last Answer : to the extent of capital gain invested in the house property
Description : Under the SARFAESI Act, 2002, the Central Registrar may allow the filing of the particulars of creation of security interest within _____ next following the expiry of the period of initial thirty days on payment of additional fee. a) Ten days b) Thirty days c) Twenty-five days d) Fifteen days
Last Answer : b) Thirty days
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 : Which statute governs external commercial borrowing? e) Foreign Exchange Maximization Act, 1972 f) Foreign Exchange Management Act, 1999 g) Foreign Exchange Minimization Act, 2004 h) Foreign Exchange Regulation Act, 1972
Last Answer : f) Foreign Exchange Management Act, 1999
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.