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 : 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 : ______ 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 : 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 : ___________ 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 : The limitations of credit rating include______.(a)Rating changes b) Industry specific c) both)
Last Answer : c) both)
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 : Each of the following statements is true regarding the risk management plan except for which one? A. The risk management plan is an output of the Risk Management Planning process. B. The risk ... and budgets. D. The risk management plan is an input to all the remaining risk-planning processes.
Last Answer : B. The risk management plan includes a description of the responses to risks and triggers.
Description : Features of venture capital includes ____.(a) high risk b) high technology c)both)
Last Answer : c)both)
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 effective rate of interest on consumer finance is generally _______than the rate applicable to business finance.(a) Lower b) Higher c) Medium)
Last Answer : b) Higher
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 : 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 : 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 : _______ 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 : ______ 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 credit ratings are expressed as____.(a) Alphabetical b) Alpha numerical c) both)
Last Answer : b) Alpha numerical
Description : Which of the following methods is included in ‘Asset based approach’ (cost-based approach)? a) Comparable Companies’ Multiple Method b) Replacement Method c) Earnings Capitalization Method d) Discounted Cash Flow Method
Last Answer : b) Replacement Method
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 : Which of the following methods is used for characterization of impurities? A. TLC B. Mass spectroscopy C. Column chromatography D. Potentiometry
Last Answer : B. Mass spectroscopy
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 : The fixed-rate payer in an interest-rate swap has a position equivalent to a series of ____________. a) long interest-rate puts and short interest-rate calls b) short interest-rate puts and long interest-rate calls c) long interest-rate puts and calls d) short interest-rate puts and calls
Last Answer : b) short interest-rate puts and long interest-rate calls
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 : ______Card can be issued to parties for undertaking any activities coming under the purview to direct finance to agriculture.(a) secured b) unsecured c) Fixed )
Last Answer : b) unsecured
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 : During a merger and acquisition transaction, the ability to find and use good comparable data for a valuation is relatively ____________. a) easy because each successful company within an industry ... depth, product diversity and access to lines of credit seldom match the company being valued
Last Answer : d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued
Description : The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on ... guarantor c) based on probability of default d) of the guarantee using an option pricing model
Last Answer : a) using credit default spread based on the credit rating of the subsidiary
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 : Credit card facility is an excellent example of revolving credit_____(a) Cash credit b) secured credit c) revolving credit)
Last Answer : c) revolving credit)
Description : Under forfaiting the client is able to get credit facility to the extent of_______ a. 100% of the value of the export bill b. 80% of the value of the export bill c. 90% of the value of the export bill
Last Answer : a. 100% of the value of the export bill
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 : The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as _______ a. Liquidity b. Credit c. Marketability
Last Answer : a. Liquidity
Description : Which method is not included in seven Project Selection Methods? A. Financial Analysis B. Strategic Alignment C. Weighted Scoring Model D. Straight line Model (Ans.)
Last Answer : D. Straight line Model (Ans.)
Description : The fastest and most expensive computers are______ (A) Super Computers (B) Quantum Computers (C) Mainframe Computers (D) Micro Computers
Last Answer : (A) Super Computers
Description : _____ is the stages when commercial manufacturing has to commence.(a) Start Ups b) second round finance c) both )
Last Answer : (a) Start Ups
Description : _____stages is an ‘applied research’ phase.(a) venture capital b) seed capital c)both)
Last Answer : b) seed capital
Description : The early stage financing of venture capital includes _____ (a) start ups b) second round finance 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 : Do you think the current credit scoring system is fair?
Last Answer : Honestly, I’m not sure what changes have taken place in order to judge. Once I moved into my house, I kind of forgot all about credit since I don’t use it.
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%