Credit rating is an expression of credit rating agencies regarding debt instrument on a specific date on______. (a) Risk evaluation b) Product c) services)

Credit rating is an expression of credit rating agencies regarding debt instrument on a  specific date on______. (a) Risk evaluation b) Product c) services)
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(a) Risk evaluation
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_____ is a process of evaluating risk associated with the credit instrument.(a) Credit rating b) credit evaluation c) both )

Description : _____ is a process of evaluating risk associated with the credit instrument.(a) Credit rating b) credit evaluation c) both )

Last Answer : (a) Credit rating

______ is an isolated function of a credit risk evaluation.(a) Credit rating b) credit evaluation c) both )

Description : ______ is an isolated function of a credit risk evaluation.(a) Credit rating b) credit evaluation c) both )

Last Answer : (a) Credit rating

______ 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 )

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

______ is used to estimate the worthiness of the credit for company, country or any individual company. .(a) credit evaluation b) Credit rating c) both )

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

_____ is useful in differentiating credit quality. .(a) Credit rating b) credit evaluation c) both )

Description : _____ is useful in differentiating credit quality. .(a) Credit rating b) credit evaluation c) both )

Last Answer : (a) Credit rating

The limitations of credit rating include______.(a)Rating changes b) Industry specific c) both)

Description : The limitations of credit rating include______.(a)Rating changes b) Industry specific c) both)

Last Answer : c) both)

Methods of consumer credit scoring are______.(a) Specific Fixed Formula b)Machinery risk formula c) Both)

Description : Methods of consumer credit scoring are______.(a) Specific Fixed Formula b)Machinery risk formula c) Both)

Last Answer : c) Both)

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 the credit rating of the subsidiary b) using credit default spread based on the credit rating of the guarantor c) based on probability of default d) of the guarantee using an option pricing model

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

___________ 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

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

What is/are the credit rating agencies approved for the acceptance of public deposits by an HFC? A. The Credit Rating Information Services of India Ltd. (CRISIL) B. ICRA Ltd. C. Credit Analysis and Research Limited (CARE) D. FITCH Ratings India Pvt. Ltd. E. All of the Above

Description : What is/are the credit rating agencies approved for the acceptance of public deposits by an HFC? A. The Credit Rating Information Services of India Ltd. (CRISIL) B. ICRA Ltd. C. Credit Analysis and Research Limited (CARE) D. FITCH Ratings India Pvt. Ltd. E. All of the Above

Last Answer : E. All of the Above Explanation: The HFC having credit rating can accept more deposits as compared to an HFC without such rating. The following credit rating agencies have been approved for the above ... ♦ ICRA Ltd. ♦ Credit Analysis and Research Limited (CARE) ♦ FITCH Ratings India Pvt. Ltd.

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 uses the same ratios b) easy because public stock price fluctuation is not sufficient or erratic enough to make a difference c) difficult because book value is adjusted in small companies as FIFO is the method of choice and in public companies’ book value is static due to LIFO d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued

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

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 repay a debt when due and payable c) has ceased to be a going concern d) has negative net worth

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

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

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

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

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

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

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

Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of WACC, weight assigned to the preferred stock is based on the coupon rate multiplied by the par value of the stock. c) A firm's WACC will decrease as the corporate tax rate decreases. d) The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Description : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Last Answer : a) The WACC may decrease as a firm's debt-equity ratio increases.

. 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

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

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. Disagreements the predecessor had with the client concerning auditing procedures and accounting principles. b. The predecessor’s evaluation of matters of continuing accounting significance. c. The degree of cooperation the predecessor received concerning the inquiry of the client’s lawyer. d. The predecessor’s assessments of inherent risk and judgments about materiality

Description : Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. Disagreements the predecessor had with the client concerning auditing ... lawyer. d. The predecessor's assessments of inherent risk and judgments about materiality

Last Answer : Disagreements the predecessor had with the client concerning auditing procedures and accounting principles.

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

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

How is stamp duty paid in transactions where more than one instrument is required? a) Stamp Duty is paid on all the instruments equally b) Stamp Duty is paid on any one of the instrument c) Stamp duty is paid only on one of the principal instruments and on the balance documents only minimum duty is payable d) Stamp duty is paid on ad valorem basis

Description : How is stamp duty paid in transactions where more than one instrument is required? a) Stamp Duty is paid on all the instruments equally b) Stamp Duty is paid on any one of the instrument c) Stamp ... and on the balance documents only minimum duty is payable d) Stamp duty is paid on ad valorem basis

Last Answer : c) Stamp duty is paid only on one of the principal instruments and on the balance documents only minimum duty is payable

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

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

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

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

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

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

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

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

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

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

Features of venture capital includes ____.(a) high risk b) high technology c)both)

Description : Features of venture capital includes ____.(a) high risk b) high technology c)both)

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In __________ leasing, the risk of obsolescence is assumed by the lessee.(a)Financial lease b) Operational lease c) both )

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Last Answer : (a)Financial lease

_______ look for opportunities to take on risk in the hope of making return a. Shareholder b. Hedgers c. Speculators

Description : _______ look for opportunities to take on risk in the hope of making return a. Shareholder b. Hedgers c. Speculators

Last Answer : c. Speculators

An ________relieves the company of the risk and uncertainty of marketing the securities. a. Underwriter b. Shareholder c. Banker

Description : An ________relieves the company of the risk and uncertainty of marketing the securities. a. Underwriter b. Shareholder c. Banker

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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 appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price. b) face value of the share of a company on the date of exercise of stock appreciation right (SAR) and vesting of SAR, as the case may be, and the SAR price. c) market price of the share of a company on the date of exercise of share appreciation right (SAR) and the SAR price. d) face value of the share of a company on the date of exercise of share appreciation right (SAR) and the SAR price.

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.

An asset is officially appraised and a) verification date b) valuation date c) report date d) effective date priced on _____.

Description : An asset is officially appraised and priced on _____. a) verification date b) valuation date c) report date d) effective date

Last Answer : b) valuation date

Under the Insolvency and Bankruptcy Code, 2016, debts owed to a secured creditor in the event such secured creditor has relinquished security ranks equally with ___________. a) insolvency resolution process costs b) workmen’s dues for a period of 24 months prior to liquidation commencement date c) wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date d) dues to Central Government

Description : Under the Insolvency and Bankruptcy Code, 2016, debts owed to a secured creditor in the event such secured creditor has relinquished security ranks equally with ___________. a) insolvency ... period of twelve months preceding the liquidation commencement date d) dues to Central Government

Last Answer : b) workmen’s dues for a period of 24 months prior to liquidation commencement date

The buyer accepts the invoice and acknowledges _______ on the due date a. Seller b. Paying c. Buyer

Description : The buyer accepts the invoice and acknowledges _______ on the due date a. Seller b. Paying c. Buyer

Last Answer : b. Paying

______ 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)

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)

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The credit ratings are expressed as____.(a) Alphabetical b) Alpha numerical c) both)

Description : The credit ratings are expressed as____.(a) Alphabetical b) Alpha numerical c) both)

Last Answer : b) Alpha numerical

Credit card facility is an excellent example of revolving credit_____(a) Cash credit b) secured credit c) revolving credit)

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)

An applicant scoring more than ______ point is considered as one with goods credit standing.(a)50 b)70 c) 40)

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

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

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

Credit Protection is available in ______ a. Without Recourse factoring b. With recourse factoring c. None of the above

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

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

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

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)

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)

The Idea of providing factoring services was first thought of in India by_____. a. Tandem committee b. Malhotra committee c. Vaghul committee

Description : The Idea of providing factoring services was first thought of in India by_____. a. Tandem committee b. Malhotra committee c. Vaghul committee

Last Answer : c. Vaghul committee

______ __ services are mainly provided to foreign investors. a. Custodial Services b. Financial Services c. Factoring Services

Description : ______ __ services are mainly provided to foreign investors. a. Custodial Services b. Financial Services c. Factoring Services

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Where can my friend find information on credit rating agencies?

Description : Where can my friend find information on credit rating agencies?

Last Answer : He could probably find out about them if he found out what his credit score was, then use the given credit score to get an accurate rating. If that doesn't work, he can fill out a form to get contacted by phone to discuss the ratings.

ICRA, CRISIL, and Standard and Poor‟s (S&P) are ______ A. Financial Institutions B. NGOs C. NBFCs D. Credit Rating Agencies

Description : ICRA, CRISIL, and Standard and Poor‟s (S&P) are ______ A. Financial Institutions B. NGOs C. NBFCs D. Credit Rating Agencies

Last Answer : D. Credit Rating Agencies Explanation: A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor s ability to pay back debt by making ... payments and the likelihood of default. Example:- ICRA, CRISIL, and Standard and Poor s (S&P).

SMERA has been registered under _______ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 E. None of these

Description : SMERA has been registered under _______ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 E. None of these

Last Answer : D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 Explanation: SMERA has been registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.

A Credit Bureau is governed by _________ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 E. Credit Information Companies (Regulation) Act of 2005

Description : A Credit Bureau is governed by _________ A. Securities and Exchange Board of India Act, 1992 B. Reserve Bank of India Act, 1934 C. Banking Regulation Act, 1949 D. Securities and Exchange ... of India (Credit Rating Agencies) Regulations, 1999 E. Credit Information Companies (Regulation) Act of 2005

Last Answer : E. Credit Information Companies (Regulation) Act of 2005 Explanation: A Credit Bureau is governed by the Credit Information Companies (Regulation) Act of 2005.

Which of the following is the Regulator of the credit rating agencies in India ? A. RBI B. SEBI C. SIDBI D. GOI E. None of the Above

Description : Which of the following is the Regulator of the credit rating agencies in India ? A. RBI B. SEBI C. SIDBI D. GOI E. None of the Above

Last Answer : B. SEBI Explanation: The capital market regulator regulates rating agencies in most regions. In India, the capital markets regulator, the Securities and Exchange Board of India (SEBI), regulates the rating agencies in the country.

What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Description : What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Last Answer : e. c, d

What do ‘Cash Cows’ symbolize in The Boston Consulting Group's product portfolio matrix? a) Remain Invested b) Problem Child c) Stable Cash Flow d) Cash Traps

Description : What do ‘Cash Cows’ symbolize in The Boston Consulting Group's product portfolio matrix? a) Remain Invested b) Problem Child c) Stable Cash Flow d) Cash Traps

Last Answer : c) Stable Cash Flow