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 : As compared to rental and leasing methods to acquire computer systems for a Management Information System (MIS), purchase method has following advantage : (A) It has high level of flexibility (B) It doesn’t require cash up-front (C) It is a business investment (D) Little risk of obsolescence
Last Answer : (C) It is a business investment
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 : A’ leases land to ‘B’ on condition that he shall walk a hundred miles in an hour. The lease is _________. a) valid b) void c) voidable d) legal Ans.(b)
Last Answer : b) void
Description : A very long tenure lease applicable to immovable properties is_____.(a) Conveyance lease b) leverage lease c) consumer lease)
Last Answer : (a) Conveyance lease
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 a process of evaluating risk associated with the credit instrument.(a) Credit rating b) credit evaluation c) both )
Description : Methods of consumer credit scoring are______.(a) Specific Fixed Formula b)Machinery risk formula c) Both)
Last Answer : c) Both)
Description : Features of venture capital includes ____.(a) high risk b) high technology c)both)
Last Answer : c)both)
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 : Which of the following is the act of taking a risk for a fee? e) Guidewire f) Initial Public Offering g) Predictive analytics h) Underwriting
Last Answer : h) Underwriting
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 : ___________ 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 : Typical parameters used in quantitative methods to estimate discount for lack of marketability include ____________. a) duration of the restriction and risk of the investment b) return of the investment c) dividends paid
Last Answer : a) duration of the restriction and risk of the investment
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 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 : Credit rating is an expression of credit rating agencies regarding debt instrument on a specific date on______. (a) Risk evaluation b) Product c) services)
Last Answer : (a) Risk evaluation
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 : An ________relieves the company of the risk and uncertainty of marketing the securities. a. Underwriter b. Shareholder c. Banker
Last Answer : a. Underwriter
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 : ‘Economies of Scale’ arises from _______ synergy in Merger and Acquisitions. a) operating b) financial c) managerial d) market
Last Answer : a) operating
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 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 : 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 : ______ 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 : 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 : _______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives
Last Answer : c. Derivatives
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 : ______ __ services are mainly provided to foreign investors. a. Custodial Services b. Financial Services c. Factoring Services
Last Answer : a. Custodial Services
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 : ______ is a market for financial assets which have a long or indefinite maturity. a. Financial market b. Capital market c. Money market
Last Answer : b. Capital market
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 : Which of the following is not an inherent risk that is common to all clients in certain industries? a. Accounts receivable collection in the consumer loan industry. b. Potential inventory ... Brand loyalty in the cosmetics industry. d. Reserve for loss in the casualty insurance industry
Last Answer : Brand loyalty in the cosmetics industry.
Description : An environment which is increasingly complex and turbulent displays: A. More orderly competition. B. A reduced risk of product obsolescence. C. More predictable demand. D. Increased speed of innovation.
Last Answer : Increased speed of innovation.
Last Answer : More orderly competition.
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 : One is entitled to initiate insolvency resolution of a corporate debtor when the corporate debtor __________. a) does not have enough liquid cash to continue operations as a going concern b) has failed to ... debt when due and payable c) has ceased to be a going concern d) has negative net worth
Last Answer : b) has failed to repay a debt when due and payable
Description : Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the ... by the company from the useful life of the asset d) over and above the internal rate of return
Last Answer : a) from which the company is relieved due to its ownership of the asset
Description : As per the Competition Act, 2002, the sale of goods at a price, which is below the cost of production with a view to eliminate the competitors is called __________. a) predatory price b) preparatory price c) entry barrier price d) exit barrier price
Last Answer : a) predatory price
Description : As an independent valuer, the valuer should not charge __________ fee. a) professional b) success c) mandate d) legal
Last Answer : b) success
Description : An investment pays Rs.300 annually for five years, with the first payment occurring today. The present value of the investment discounted at a 4% annual rate is approximately __________. a) Rs.1336 b) Rs.1389 c) Rs.1625 d) Rs.1925
Last Answer : b) Rs.1389
Description : Which risk is connected to the circumstance outside the project that may influence the scope of work and the performance of the organization? A.Operational Risk B.Financial Risk C.Strategic Risk D.Contextual Risk
Last Answer : D.Contextual Risk
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 useful in differentiating credit quality. .(a) Credit rating b) credit evaluation c) both )
Description : The limitations of credit rating include______.(a)Rating changes b) Industry specific c) both)
Last Answer : c) both)
Description : The credit ratings are expressed as____.(a) Alphabetical b) Alpha numerical c) both)
Last Answer : b) Alpha numerical