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QUESTION ANS1 ANS2 ANS3 ANS4 ANS
1 Which of the following is (are) NOT true for Mutual funds? Bears higher risk Both 1 & 2 3
2 10% 20% 30% 1
3 Which of the following is (are) TRUE about liquidity Both 1 & 2 3
4 337009.62 336011.63 337011.63 3
5 Which of the following is(are) true for IRR Both 1 & 2 3
6 Which of the following is(are) True about equity capital Only 1 Both 1 & 2 4
7 Which of the statements are (True) 4
8 Both 1 & 2 3
9 With reference to the debt market which of the following are True Both 1 & 2 3
10 Both 1 & 2 1
11 CARE ICRA CRISIL 3
12 Which of the following holds True for an OTC market. 4
13 Duration of call money is 2 days 14 days 1 day 3
14 In India the main regulator for the money market is SEBI SBI RBI NSE 3
15 Which of the following holds True for forward contract Both (1) and (2) 3
16 In India Derivative markets comes under the regulation of RBI SEBI SBI ICICI 2
17 Custodian is 1
18 Net Asset Value is All of the above 3
19 Following are considered as stake holders of the company Shareholders Creditors Suppliers 4
20 Which of the Following is(are) True All of the above 3
Direct investment in the equity,debt and derivatives market
None of the above
Consider a house purchased for Rs 7,00,000 and leased out at Rs 10,000 per month for 1 year.The house is sold after 1 year to fetch Rs 6,50,000.What would be the ROI(%) in this case.
None of the above
Ensures that you are able to meet your obligations in time
Good sign of financial strength
None of the above
Consider a sum of Rs 2,00,000 invested to earn a rate of 11% per anum for 5 years. The Future Value at the end of the 5th year would work out to be
None of the above
It is that rate of discounting in a project that makes it¿s NPV zero
Projects having higher IRR are preferred to those having lower IRR
None of the above
Represents ownership capital
Does not involve fixed obligation for repayment of dividen
Debentures are instruments for raising long term debt capital.
Preference Capital has some features of equity and some attributes of debentures.
ADR is a negotiable certificate issued by US bank.
All of the above
Which of the following are True with reference to the clearing and settlement cycle.
Clearing house determines the cumulative obligations of each member and electronically transfers the data to clearing members
Settlement is deemed to be complete upon declaration and release of pay-out of funds and securities.
None of the above.
referes to people and entities involved in buying and selling of debt and the quantity and prices Of those transactions over time.
There is no single location or exchange where debt market participants interact for common business.
None of the above
With reference to money market which of the statements are Not True.
Refers to the market for long term requirement
Maturity period is less than one year.
None of the above.
Which one among the undermentioned credit rating agencies is promoted by ICICI
Standard and Poor and Moody
Very popular way of trading
Trading occurs via a network of middlemen called dealers
If an investor wants to buy or sell a bond , he or she must call the bank that makes the market In that bond and asks for quotes.
All of the above.None of the above
It is a type of derivatives
It is an over the counter obligation to buy or sell a financial instrument
None of the above.
Responsible for safekeeping of investments of the fund and monitors all benefits due to the fun
Performs record keeping functions and investor servicing.
Marketing funds to the investors.
Regulatory body.
The commission that an investor has to pay while purchasing units of a mutual fun
The commission that is charged when the investor exits the scheme.
The market value of the assets minus its liabilities.
All of the above
Balance sheet shows the financial position of the company at a given point of time
Profit and Loss or income statement shows the financial performance of the company over a period of time
None of the above
21 Cash and funds flow statement portrays the 3
22 Which of the following are accounting concepts Entity Both (1) and (2) 3
23 Cost concept of accounting suggests that All of the above 2
24 Debits 1
25 Asset 2
26 Revenue reserves represent Unsecured Loans 3
27 Prime University 1
28 14% 1
29 Rs. 1000 2
30 Rs. 5637.09 2
31 12974.4 14873.82 14500 3
32 Interest rate swap 1
33 3
34 The term RAS refers to: 3
35 Dividend yield is The rate of dividend 3
36 ORTOS is a solution for: Basel II Compliance 2
37 All of the above 4
38 Rs 6,000 3
39 All Assets are necessarily 1
40 All liabilities are necessarily 2
41 The difference of Assets and Liabilities¿ is 3
42 Reserves in accounting terms refers to 3
43 Revenue reserves represent 3
44 Capital reserves represents 2
Financial position of the company at any point of time
reflects the financial performance of the company over a period of time
flow of funds through the business during a given accounting period
None of the above
Money Measurement
None of the above
Every transaction has 2 aspects
All Assets of the company are valued at their cost value .
None of the above
All Assets are necessarily Credits Any of the above
None of the above.
With reference to the balance sheet of a sole proprietorship concern Profit is treated as a Liability Income
Expenditure
Secured Loans
accumulated retained earnings from the profits of normal business.
None of the above.
PrimeSourcing''s virtual university to enable continuous learning is known as i-flex university
Flexcube university
None of the above
You buy bonds worth Rs. 500,000/- on which you get a return of Rs. 90,000/- for the year. At the end of the year you sell the bonds for 4,80,000/- What is your ROI 13.9% 14.1% 14.2%You purchased gold at Rs. 10,000/- per 10 grams and sold it after a year at an ROI of 12%. The selling price of gold per gram is Rs. 1120 Rs. 1115
None of the above
The present value of an annuity of Rs. 1000 paid yearly for 5 years earning 6% is Rs. 4212.33 Rs. 5637.90
Rs. 4211.56
The NPV of the following cashflow stream at a cost of capital of 11% is: -100000, 50000, 50000, 40000. Assume yearly cashflows. 12973.76If a party A makes a periodic payment at LIBOR to party B and Party B pays a fixed 3% to Party A, the transaction is called Basis Swap Total Swap
Repo Transaction
If an asset is being depreciated at a constant amount every year, the method is called:
Reducing balance method
Deferred charges method
Straight line method
None of the above
Ratio Analysis System
Reference Association system
Reliability, Availability, serviceability
Repair, Assess, Sustain
The amount received as dividend
The amount of dividend/ Market Price
The rate of dividend/ market price
Operational Risk Management
Credit Card Solution
Offshore development framework of I-Flex Solutions Ltd
The compliance solutions of I-Flex are in the areas of: A) Clause 49, B)AML, C)SOX 1 & 2 1 & 3 2 & 3The owner of the company introduces Rs 6,000 as cash and Rs 4,000 in the form of machinery.The liability of the company would be Rs 4,000 Rs 10,000
None of the above.
Debits Credits Any of the above
None of the above.
Debits Credits Any of the above
None of the above
Reserves Secured Loans Owners Equity
None of the above.
Borrowings of the company against which no security has been provide
Money kept aside to meet future contingencies.
Profits which have been retained in the firm.
None of the above
Unsecured Loans Secured Loans
accumulated retained earnings from the profits of normal business.
None of the above.
Balanxce in the profit and Loss account which has not been appropriated to any particular reserve account.
Reserves that arise out of non operational gains such as premium on issue of shares.
Any of the above
None of the above.
45 PrimeSourcing is the 4
46 Credit or default risk is highest for 4
47 Basel II aims to cover the following risk exposures of a bank Credit Risk Market Risk Operational Risk 4
48 3
49 Amortisation refers to 3
50 Goodwill refers to 2
51 Cost of goods sold refers to 3
52 PBIT refers to 2
53 Analysis of Balance sheet is important as it 4
54 4
55 Which of the following is(are)True about salvage value 4
56 Current ratio is 3
57 Quick Ratio is 3
58 Debt ratio refers to 3
59 Which of the following is(are)True about EPS 4
60 Which ratio refers to Market value per share/EPS 3
61 Entity concept of accounting requires that Both (1) and (2) 3
62 Which of the following is not a non operational risk Credit Risk Currency Risk Market Risk 4
63 Duration of call money is 3
64 In India the main regulator for the money market is 3
65 3
Services Outsourcing Division of i-flex solutions lt
Services Outsourcing Division of i-flex consulting
Part of Product Offering
Part of Centers of Excellence
Government Bonds
Government Bonds
State or Municipal Corporation Bonds
Junk bonds All of the above
The most vital role amongst all intermediaries during a public issue is played by
Bankers to the Issue Underwriter
Lead Manager Registrar
It is an asset but not physical in nature
It is excess of purchase price over the fair market value
Paying off of debt in regular installments over a period of time
List of the settled trades
It is an asset but not physical in nature
It is excess of purchase price over the fair market value
Paying off of debt in regular installments over a period of time
List of the settled trades
Revenue generated from the sale of all the company¿s products or services
Non operating deficit
sum of costs incurred for manufacturing the goods sold during the accounting period
None of the above
Sum of operating profit and non-operating surplus- non-operating deficit.
A measure of profit which is not influenced by interest and tax factors.
All of the above
None of the above
Identifies potential liquidity problems
May signify the company¿s inability to meet financial obligations
helps an investor to spot the degree to which a company is leveraged or indebte
All of the above
The Balance sheet can be valued by using which valuation method Historical Cost
Current Market Value
Net realizable Value Method
All of the above
Estimated value that an asset will realize upon it¿s sale at the end of the useful life
The value is used in accounting to determine depreciation amounts and in the tax system to determine deductions.
The value can be a best guess of the end value or can be determined by a regulatory body.
All of the above
Also known as the working capital ratio
helps to measure the ability of the firm to meet it¿s current liabilities
Both (1) and (2)
None of the above
Also known as Acid-test ratio
an alternative measure of liquidity that does not include inventory
Both (1) and (2)
None of the above
relative contributions of creditors and owners
Indicates how well the company¿s earnings can cover the interest payments on it¿s debt
the extent to which borrowed funds support the firm¿s assets.
None of the above
refers to earning per share
traditional method of determining corporate value
serves as an indicator of company¿s profitability
All of above
Net profit margin ratio
Gross profit margin ratio
Price to earnings ratio
None of the above
The business be treated separate from it¿s owners
The business firm is regarded as a separate entity as distinct from the persons who are connected to it.
None of the above.None of the above.
2 days 14 days 1 day None of the above
SEBI SBI RBI NSEIf a deposit of Rs. 100,000/- earns a rate of 6% compounded continuously for three years, the deposit will be worth 1,18,789.00 1,19,668.05 1,19,721.74
1,19,722.80
66 1
67 IRR is 3
68 1
69 1
70 2
71 3
72 P/E ratio of a share is: 2
73 Which of the following is not an objective of PD¿s: 2
74 3
75 Capital expenditure is an expenditure which 3
76 2
77 53,000 58,000 63,000 46,400 2
78 Which of the following is (are) true? 2
79 11.59% 12% 5% 1
80 Worldwide currency prices are affected by changes in interest Inflation Political Stability 4
81 2 and 5 5 and 7 2 and 7 7 and 2 3
82 Which of the following is an advantage of a sole proprietorship? 4
83 Bank borrow in the call money market to give loans 2 & 3 4
84 Which of the following is the example of risk-free interest rate? All of the above 3
85 which of the following is not a money market instrument? Treasury bills debentures call money 3
86 When an investment pays only simple interest rate,this means 3
87 Which of the following is not a source of long-term finance? Equity shares Debentures 4
88 29387 41350 30710 20700 1
89 Price Discovery of a security is done by the following process rights issue book building private placement 2
90 Income earned by soleproprietorship is taxable under corporate tax HUF Wealth tax 2
91 stop loss order market order limit order 1
92 15.6 6.93 18.79 10.4 3
93 Who are all kown as stakeholders of a company? Creditors Suppliers Shareholders 4
94 Credit risk Market risk Liquidity risk 3
95 only (i) only (ii) (i) and (ii) (ii) and (iii) 1
The FV of a cash flow stream of Rs. 1000 received at the end of each year over 5 years at 6% will be 5637.09 42142.67 5667.12 5677.30
NPV of all the cash flows
PV of positive cash flows
The discount rate that makes the NPV zero
None of the above
The IRR of the following cashflow stream is 100000, 50000, 50000, 40000. Assume yearly cashflows. 19.69% 10.23% 17.66%
None of the above
The BPD offers, A)FLEXCUBE ¿ UBS, B) FLEXCUBE ¿ CBS, C).FLEXCUBE ¿ PBS
All of the above 1 & 2 1 & 3 2 & 3
The section of SOX that requires attestation by the CEO and CFO is: 302 404 210
All of the above
PrimeSourcing offers solutions for, A).Trade Finance, B).Retail Management, C).Investment Banking All of the above 1 & 2 1 & 3 2 & 3
Issue price of share/EPS
Market price of share/EPS Dividend/EPS
Preference Share/EPS
Ensure development of secondary market in Government bonds
To ensure development of Financial markets
To ensure development of underwriting market in govt. bonds
None of the above
If you place an order to buy 1000 shares and specify each trade should be 200 shares you have entered a:
Disclosed Quantity Order Fill or Kill Order
Minimum fill order
Maximum fill order
benefits the current accounting period
will benefit the next accounting period
results in the acquisition of a permanent asset
results in acquisition of current asset
If Rs.5, 00,000 is left on deposit to earn a rate of 5% for 5 years. What it is worth if the interest is (i) quarterly compounding (ii) half-yearly compounding (iii) continuous compounding?
640000.00,620000.00,610000.00
641018.62, 640042.27, 642012.71
631081.23,640024.17,642111.51
None of the above
If a company's Gross profit is Rs.63,000, salary expenses are 4,000,Rent is 6,000,Interest payments are 5,000,other income is 5,000 and taxes are 20% on the net profits,then what is EBIT?
Equity shareholders can claim their unpaid dividend legally
Preference shareholders do not have voting rights.
Preference dividend is a tax deductible expense to the company.
None of the above
Suppose ABC Ltd co. has following cost and values: market value of Debt - Rs. 500 crs., market value of equity - Rs 350 crs.,cost of debt:12%,cost of equity:17%,Tax:35%.Compute WACC
None of the aboveAll of the above
The minimum number of persons required to form a private limited company and a public limited company respectively are?
Life of a firm is limited to the life of a proprietorship
Fund raising from outside is easy
limited personal liabilities
easy and inexpensive to set up
meet the cash reserve ratio
meet sudden demand for funds arising due to large payments and remittances
SBI Mutual Fund @11% return
9% Long-term Debenture.
7% short term government securities.
certificate of deposits
the future value of investment wil be low
the interest earned is non-taxable to the investor
interest is earned on the original investment
the interest rate is lower than the comparable investments
Reserves and Surplus
Commercial Papers
What is the future value of Rs.20000 invested now for a period of 5 years at an interest rate of 8%?
None of the above
personal income tax
An order which gets activated only when the market price of that security reaches the trigger price
None of the above
What is the return on investment per annum for an asset purchased for Rs.82,50,000 and leased for Rs,1,00,000 per mont.h for 18 months,after which it is sold to fetch Rs.80,00,000?
All of the above
Mr.Ram purchases a house worth Rs.12 lacs, after seven years he is planning to sell; he gets a value of Rs.10 lacs. What is the risk involved?
None of the above
Which of the following factors influence inflation? (i) Interest rate (ii) rising supply (iii) reducing demand
96 The money that is lent for one day is known as? call repo notice term 1
97 Gross profit is equal to 1
98 From the accounting point of view,loss means Increase in liability Decrease in asset 4
99 (i) and (ii) (ii) and (iii) (i) and (iii) 4
100 Which of the following are/is not a fixed asset? Stock Vehicle 4
101 Which of the following is not an intangible asset? Goodwill Trade mark Franchise 4
102 P&L account is prepared for a period of one year by following consistency concept cost concept 3
103 Accounting does not record non-financial transactions because of Entity concept accrual concept cost cancept 2
104 Depreciation is calculated on the cost price of asset market price 3
105 97,000 2,03,000 1,83,000 1,23,000 2
106 2
107 80,000 90,0000 1,10,000 70,000 1
108 112.42 114.24 114.42 112.44 2
109 16,273 18,797.10 20,000 15,850 1
110 fixed asset not an asset current asset 2
111 Insure3 an icsurance solution product is provided by Mantas Castek BNX Capco 2
112 Which of the following is a current liability? Trademark 1
113 If a EUR/USD is quoted as 1.1923,what does it mean? 3
114 Cash profit is 1
115 What are the functions of RBI? a.Issues Currency 4
116 a.Limit order b.Cancel order c.Stop loss order d.Market order 3
117 a.Immediate/cancel b.Stop loss order 1
118 Order conditions are broadly classified into: 4
119 b.Good till date/day 1
120 Credit Rating Agencies promoted by IDBI a.CRISIL c.ICRA d.CARE 4
121 Credit Rating Agencies promoted by IFCI? a. CRISIL b. ICRA C. Care 2
122 a.Long term maturity b.High liquidity c.Highly secured 2
123 Known as Hybrid insurance policy? a.Annuities 3
124 Which of the following is an advantage of partnership firm? 4
125 What is Depository? c.Both (1) and (2) 1
Sales - cost of goods sold
Sales - closing stock + purchases
Net profit - expenses
Opening stock + purchases - closing stock
Increase in owner's equity
Decrease in owner's equity
Which of the following are investments Avenues? (i) Hedge Funds (ii) Property (iii).Ploughing cash back into business
All of the above
Fixed deposit in bank
both (i) and (ii)Accounts receivables
conservation concept
time period concept
Money measurement concept
cost + transport + installation expenses
cost or market value whichever is less
Calculate the opening cash balance if the closing cash is:Rs.1,43,000.Rent paid:20,000,out of which advance rent is:3,000.Salaries paid: 20,000 and to be paid is:5,000.Other revenues:1,00,000
Opening capital is:80,000.Closing capital is:1,20,000.Net profit during the year:20,000.The trader has
Drawings of Rs.20,000
Brought additional capital of Rs.20,000
Brought additional capital of Rs.40,000
Drawings of Rs.40,000
Opening stock:40,000.Closing stock:50,000.Sales:70,000.Assuning there is no gros profit and direct expenses the purchases made during the year are:
The amount that has to be invested at the end of every year for a period of 6 years at a rate of interest of 15% in order to accumulate Rs.1000 at the end of 6 years is equal toMr. Shankar deposits Rs.1,00,000 on retirement ina bank which pays 10% annunal interest.How much can he draw for a period of 10 years.
Computers taken on hire by a business for a period of 1 year should be classified as
deferred revenue expenditure
outstanding salaries
Discount on issue of shares
prepaid expenses
you can buy 0.8387 USD for one EUR
you can buy 0.8387 EUR for one USD.
you can but 1.1923 USD for one EUR
None of the above
Net profit + depreciation and provision
Gross profit - net profit
gross profit - operational expenses
net profit - non trading profit - depreciation and provision
b.Banker to the government
c.Formulates monetary and credit policies
d.All of the above
An order to sell shares, where brokers are given a particular limit for sustenance of loss is know as
An order that allows a trading members to buy or sell as soon as the order is released into market, failing which the order will be removed from the system?
c.Good till cancelled
d.None of the above
a.Time related conditions
b.Price related conditions
c.Quantity related conditions
d.All of the above
Order that remains in the system until it is cancelled by trading member?
a.Good till cancelled
c.Immediate or cancel
d.Disclosed quantity
b.Standard and poord. Standard and Poor
Which of the following is/are the characteristics of money market instruments? d.Both (B) and
(C)b.Financial Loss insurance
c.Locked fund insurance
d.Credit insurance
a.Life of the firm is perpetual
b.Personal liabilities of the partners are limited
c.Its ability to raise funds is virtually unlimited
d.Its relatively free from government regulations as compared to joint stock companies
a.Hold securities in an account
b.Hold Funds in an account
d.None of the above
126 Depositories are like banks for securities a.True b.False c.Dormant Funds 1
127 1
128 1
129 1
130 1
131 1
132 2
133 3
134 4
135 2
136 2
137 2
138 2
139 4
140 2
141 3
142 2
143 2
144 3
145 3
d.None of the above
The selling of securities to the public in the primary market is known as
IPO FPO Right issue
Bonus issue
IPO is offered in Primary Market Secondary Market Both of the aboveNone of the above
What is the basis of voting rights for members of Co-operative society ?
One Vote per member
Proportion of shares held
Members cannot vote
None of the above
The most vital role amongst all the intermediary during a public issue is played by Lead Manager
Bankers to the issuers Underwriter All of the above
EPS is
Net profit ¿ Pref. dividend / total number of outstanding shares
Gross profit / Outstanding shares
Net profit / Outstanding shares
Net profit / market value of Outstanding shares
DP's have to registered with Stock exchange SEBI RBI B & C
Which of the following are zero coupon debt securities? GILT securities RBI relief bond Treasury Bills All of the above
Custodians perform which of the following activity on behalf of its client
Ensuring timely collection of monetary and non-monetary benefits on securities on behalf of the client
Ensure timely settlement of funds and securities
Maintain clearing accounts with DP¿s
All of the above
The major difference between a broker and a sub-broker is
Broker is member of exchange while sub broker is not
Broker can trade on the exchange while sub broker cannot
The broker is registered but the sub broker need not to be registered
None of the above
Prime dealers in India are the one who areDealer on the trading floor
Authorized dealers of Govt. Securities appointed by RBI
Authorized dealers of Govt. Securities
Members of Clearing house
In the Option, who is obligated to honor the deal ? Buyer of the optionWriter of the option Clearing house Stock exchange
PrimeSourcing is thePart of Product offerings
Services outsourcing division of OFSS
Services outsourcing division of Consulting Parts of COE
PrimeSourcing has domain expertise in which of the following areas
Derivatives Trading and Processing
Insurance claims Processing
MF accounting and operation
All of the above
Mutual Fund facilitates pooling of investors funds which are managed by
The Trustees of the fund
Assets Management Company of the fund Mutual Fund itself
Mutual Fund sponsor
What is the key regulation that govern the issuance the CPs ? Financial Analytics Business Analytics Risk AnalyticsBanking Analytics
What is the key regulation that govern the issuance the CPs ? Issuer must be banks
Issuers must have to be rated by credit rating agencies
They should be issued by RBI
CP should be issued at least for a period of one year and above
Why does the central government borrow money?To fund the MPs salary
To close the budgetary deficit Both of the above
None of the above
What does order book show?
Trades that are matched till yesterday
Trades that are matched till that time
Trades that are pending for matching
List of the settled trades
Which of the following is not true for ROI
ROI is usually expressed as a percentage
ROI is usually expressed per annum
ROI does not take into account capital loss
ROI takes into account capital loss
146 2
147 1
148 1
149 3
150 1
151 3
152 1
153 1
154 2
155 2
156 2
157 3
158 1
159 3
160 2
161 4
162 2
163 3
164 3
165 2
166 3
BOI shareholding Ltd. Is the clearing house for NSE BSE RBINone of the above
What is Net worth ?
Reserves and Surplus + Equity capital
Long term assets + Equity Capital
Net profit + Reserves
Current Assets + Net Profit
AML solutions help banks to identify and combat
Money being covered and moved by anti-social & anti-national elements
Likely frauds being committed by employees of the bank
Likely money being siphoned off by senior management of the bank
Money being illegally transferred to subsidiaries of the bank
Which of the capital budgeting methods best suited to find out the time required for recovering initial investment cost ? NPV IRR Pay-back period B & C
ROA sometimes also referred as ROI True FALSE
Speculation is for Minimize risk Minimize lossProfit from fluctuation Hedging of risk
An amount of Money today is more valuable than the same amount of Money at a future date TRUE FALSE
In NPV outflows are taken as negative and inflows are taken as positive. TRUE False
IRR is a Discounting rate only
Rate of discounting which makes its NPV equal to zero
Rate of discounting which makes its NPV lower than zero
Rate of discounting which makes its NPV greater than zero
Which of the statements is true ?
For project evaluation lower NPV are preferred over those having a higher NPV
For project evaluation higher NPV are preferred over those having a lower NPV Both of the above
None of the above
Through diversification you can protect your investment from Market RiskUnsystematic Risk Operational Risk Currency Risk
The minimum number of persons required to form a private limited company and a public limited company respectively are? 2 and 5 5 and 7 2 and 7 7 and 2
Equity share holders can face the risk of not only zero return on their return but also capital loss. TRUE FALSE
The method of raising fund from existing shares or debenture holder is known as IPO FPO Rights issue Bonus issue
GDR is a negotiable certificate issued by a US bankan International bank RBI SBI
Debenture holders are Stake holders of the company
Share holders of the company
Creditor of the company A & C
Working Capital Management involves
the relationship between a firm¿s Long-term assets and its long-term liabilities
the relationship between a firm¿s short-term assets and its short-term liabilities
the relationship between a firm¿s mid-term assets and its mid-term liabilities B & C
_________________ is issued by a bank on behalf of its customer (Buyer) to the seller. Draft Cheque Letter of Credit
None of the above
WACC is
Proportion of Equity * Cost of Equity + Proportion of Debt * Cost of Debt
Proportion of Equity * Proportion of Debt + Cost of Equity * Cost of Debt (1-Tax)
Proportion of Equity * Cost of Equity + Proportion of Debt * Cost of Debt (1-Tax)
Proportion of Equity * Cost of Equity + Proportion of Debt * (1-Tax)
__________________ of an investment (project) is the difference between the sum of the discounted cash flows which are expected from the investment and the amount which is initially invested. IRR NPV Pay back
None of the above
The Financial market / Securities market essentially comprises of few categories of participants namely
Issuers of the securities, Investors in Securities Intermediaries A & B
None of the above
167 4
168 4
169 2
170 2
171 2
172 1
173 2
174 1
175 1
176 4
177 4
178 4
179 3
180 1
181 3
182 2
183 3
184 1
185 1
186 2
187 4
188 3
189 2
190 4
Financial market facilitate
The raising of capital (in the capital market)
The transfer of risk (in the derivatives market)
International trade (in the currency market)
All of the above
New issuance of the securities comes under which market? Debt market Stock market Secondary marketPrimary market
The markets which provides short term debt financing and investment is known as Debt market Money market Derivatives market Stock market
Book building is a process used in right issue for efficient price discovery. TRUE FALSE
When an already listed company makes either a fresh issue of securities to the public or an offer of sale to the public, through an offer document, it is known as IPO FPO Preferred issue
Private placement
_______________ issues Treasury bills, Government dated securities and relief bonds? RBI Government Banks B & C
Who regulates the issuance of government securities ? SEBI RBI Government B & C
Who regulates the corporate debt ? SEBI RBI Both of the aboveNone of the above
The ______________ takes up the due diligence of company¿s operations/ management/ business plans/ legal activities etc... Lead Manager Merchant Banker Underwriter
Bankers to the issue
Who assist the company right from preparing prospectus to the listing of securities at the stock exchange ? Lead Manager Merchant Banker Underwriter
Bankers to the issue
Who carry out all the activities of ensuring that the fund are collected and transferred to the Escrow accounts ? Lead Manager Merchant Banker Underwriter
Bankers to the issue
At the time of public offer, who is responsible to do `allotment of shares to the applicant¿s DP account and dispatch of refund order¿ ? Lead Manager Merchant Banker Underwriter R&T agents
What is the major difference between current ratio and quick ratio ?
Quick ratio consider inventory
Current ratio consider inventory
Quick ratio does not consider inventory
Current ratio consider inventory
RTGS and CLS solutions are provided under aCash management solutions
Treasury management solutions
Wealth management solutions
Trade finance solutions
Clearing house
Provides trading platform for its members
Holds securities on behalf of its members
Match and reconciles trades All of the above
Which of the services is not offered by a depository/DP¿s ? Corporate Actions Trading
Electronic settlement of trades in Stock Exchanges.
Electronic credit of securities allotted in public issues.
NSDL stands for National Security Depository Ltd
National Securities Depository Participant Ltd
National Securities Depository Ltd
National Securities Deposit Ltd
Who take care of the Post-trading activities on behalf of their clients such as FI¿s, Asset management companies, Pension fund, FII¿s etc¿? Custodian Underwriter Merchant banker Lead manager
Which statement is false ?
Broker is not responsible for the acts and dealings of his Sub-Broker
A Sub-broker is an agent of a broker
Sub broker has to registered with SEBI as well as Exchange of which his broker is the member
Clients of the sub broker are to be registered with the main broker
The party who enters orders on the same side of the initiator is known as Initiator Competitor Solicitor
None of the above
Which order is comes under Time related condition ? All or none (AON) Market Order Stop Loss order
Good till cancelled (GTC)
Which order is comes under Price related condition ? All or none (AON) Good till date (GTD) Stop Loss orderGood till cancelled (GTC)
In India, trades in rolling settlement are settled on what basis ? T+1 T+2 T+3 T+4
Which institution is not working as a Credit Rating Agencies ? CRISIL S&P and Moody ICRA IFCI
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_____________________ is the financial market for short term borrowing and lending, typically up to one year. Money Market Stock market MF market
Secondary market
The money that is lent for one is known as Call money Notice money Term money Notice money
The money that is lent for more than one day but less than but less than 15 days it is referred to as Call money Notice money Term money Notice money
Which is the largest financial market in the world ? FX market Stock market Money market Debt market
International offering of debt /equity is managed by SEBI RBI Merchant banker Prime broker
Insurance is a solution provided by BPD PRSG Prime Sourcing None of the above
Which ratio shows the earning left for share holders ? Gross profit ratio Net profit ratio Return on assetsReturn on equity
This ratio measures the extent to which borrowed funds support the firm¿s assets
Interest coverage ratio Current ratio Debt Equity ratio Debt ratio
What is Reverse Repo ?Swapping the cash flows
Buying and selling back
Selling and buying back
None of the above
Which statement(s) talks about financial position of the company at the end of an accounting period ? Fund flow statements Balance sheet
Profit and loss statement A & C
Basel II aims to cover the following risk exposure of a bank Market risk Operational risk Credit riskAll of the above
Which statement is false ?
Trading member is responsible for clearing and settlement of the trades of his own or of his clients.
Trading member is responsible for clearing and settlement of his clients only.
Disclosed Quantity (DQ) is an order with a DQ condition allows the TM to disclose only a part of the order quantity to the market.
Market Order is an order to buy or sell securities at the best price obtainable at the time of entering the order.
Which statement(s) talks about financial performance of the company during an accounting period ? Fund flow statement Balance sheet
Profit and loss statement
None of the above
What is return on investment per annum for an asset purchased for Rs. 750000 and leased it for Rs.15000 per month and later on sold it for Rs. 630000 ? 6.30% 8.00% 6.93% 6.54%
If Joe earns $125 interest in 30 months on money that was invested at 5%, find the Principal amount. $1,100 $1,000 $1,200 $1,150
Ram has invested Rs. 100000 as a FD into a bank for 3 years. Where he will earn interest of 6% monthly compounding. At the end of third years what will be value of investment? 119698.05 119700.05 119668.05 119660.05
You invest $5,000 today. You will earn 8% interest. How much will you have in 4 years ? 6802.5 6805.5 6807.5 6809.5
How much amount should you need for an investment such that you will receive Rs. 337011.63 after five years if rate of interest is 11% p.a. ? 100000 300000 400000 200000
Company XYZ has invested Rs. 5000000 and the expected return of the project amount to Rs. 1250000 annually. Calculate Payback period 5 3 3.5 4
What is the out of the money in put option?
The underlying securities is trading above the put option¿s strike price
The underlying securities is trading below the put option¿s strike price
The underlying securities is trading at the put option¿s strike price
None of the above
If a EUR/USD pair is quoted as 1.19166, what does it mean ?
You can buy 0.839166 EUR for one USD
You can buy 1.19166 USD for one EUR
You can buy 1.19166 EUR for one USD
None of the above
¿The right but not the obligation to buy (sell) some underlying cash instruments at a pre-determined rate on a pre-determined expiration date at a pre-set notional amount¿ relates to Futures Forward Options Swaps
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Leverage ratio refers to
The ability of a firm to meet its obligations in the short run
Provide an indication of the long-term solvency of the firm
How efficiently the assets are utilized by a firm
How does equity stock of the company is assessed in the capital market
Which statement is correct ?
A Depository is an intermediary where the securities are held in the electronic form.
It provides service connected with recording of allotment of securities or transfer of ownership of securities in the record of a depository
A depository cannot directly open the accounts and provide services to the clients.
All of the above
Which is the most popular market for trading of debt instruments? OTC marketStock exchange market Wholesale market A & C
Currently the ___________________ facility is used for the limited physical market as per the SEBI directives. Normal Market Odd lot Market Auction Market A & C
The party who enters orders on the opposite side of the initiator is known as Initiator Competitor Solicitor
None of the above
Which ratio(s) is known as `Efficiency Ratio¿ ?Fixed asset turnover ratio
Inventory turnover ratio
Receivables turnover ratio
All of the above
What is the value of the furniture at the end of 5 years if the PV is 500000 and depreciation rate is 10% ? 350000 295245 250000 305125
Calculate WACC where market value of debt: Rs. 600,000,000, Market value of Equity: Rs. 800,000,000, Cost of debt: 9%, Cost of Equity: 16%, Tax:35% 11.65% 12.75% 12% 11.83%
An investment with an initial cash out flow of $100,000 pays back $34,432 in the first year, $39,530 in the second year, $39,359 in the third year, and $32,219 in the fourth year. If the rate of return is 12%, find the Net Present Value (NPV) 10545.55 10645.45 10745.45 10845.55
Consider an investment of $1,000 that is expected to yield $500 in 1 year and $700 in 2 years. What is the NPV of the investment at an annual discount rate of 9%? 47.77 47.89 47.98 47.78
Companys gross profit is 63000, salary expenses are 4000, rent is 6000, interest payments are 5000, other income is 5000, and taxes are 20% on the net profits. The company declares 15% as dividend to the share holders. What is the amount which will be transferred to reserves and surplus?
35800 36040 38500 39060
What is the ROI for a new project that is expected to cost Rs. 500,000 over the next five years and deliver an additional Rs. 700,000 in increased profits during the same time ? 30% 40% 50% 60%
What is the depreciation charge per annum if machinery has been valued as 50000, life of machinery is 10 years and the salvage value is 5000 ? 2250 2500 4500 5000
_________________ is a process of determining investment in a project that is expected to produce a cash inflow over a period of time Cost of capital Capital structure
Capital budgeting Cash flow
select * from EXAM.QUESTION_MASTER WHERE qid = 5608
QUESTION ANS1
1 Which of the following is (are) NOT true for Mutual funds?
2 10%
3 Which of the following is (are) TRUE about liquidity
4 337009.62
5 Which of the following is(are) true for IRR
6 Which of the following is(are) True about equity capital
7 Which of the statements are (True)
8
9 With reference to the debt market which of the following are True
10
11 CARE
Direct investment in the equity,debt and derivatives market
Consider a house purchased for Rs 7,00,000 and leased out at Rs 10,000 per month for 1 year.The house is sold after 1 year to fetch Rs 6,50,000.What would be the ROI(%) in this case.
Ensures that you are able to meet your obligations in time
Consider a sum of Rs 2,00,000 invested to earn a rate of 11% per anum for 5 years. The Future Value at the end of the 5th year would work out to be
It is that rate of discounting in a project that makes it¿s NPV zero
Represents ownership capital
Debentures are instruments for raising long term debt capital.
Which of the following are True with reference to the clearing and settlement cycle.
Clearing house determines the cumulative obligations of each member and electronically transfers the data to clearing members referes to people and entities involved in buying and selling of debt and the quantity and prices Of those transactions over time.
With reference to money market which of the statements are Not True.
Refers to the market for long term requirement
Which one among the undermentioned credit rating agencies is promoted by ICICI
12 Which of the following holds True for an OTC market.
13 Duration of call money is 2 days
14 In India the main regulator for the money market is SEBI
15 Which of the following holds True for forward contract
16 In India Derivative markets comes under the regulation of RBI
17 Custodian is
18 Net Asset Value is
19 Following are considered as stake holders of the company Shareholders
20 Which of the Following is(are) True
21 Cash and funds flow statement portrays the
22 Which of the following are accounting concepts Entity
23 Cost concept of accounting suggests that
24 Debits
25 Asset
Very popular way of trading
It is a type of derivatives
Responsible for safekeeping of investments of the fund and monitors all benefits due to the fun
The commission that an investor has to pay while purchasing units of a mutual fun
Balance sheet shows the financial position of the company at a given point of time
Financial position of the company at any point of time
Every transaction has 2 aspects
All Assets are necessarilyWith reference to the balance sheet of a sole proprietorship concern Profit is treated as a
26 Revenue reserves represent Unsecured Loans
27 Prime University
28 14%
29 Rs. 1000
30 Rs. 5637.09
31 12974.4
32
33
34 The term RAS refers to:
35 Dividend yield is
36 ORTOS is a solution for:
37 All of the above
38 Rs 6,000
39 All Assets are necessarily
40 All liabilities are necessarily
41 The difference of Assets and Liabilities¿ is
42 Reserves in accounting terms refers to
43 Revenue reserves represent
PrimeSourcing''s virtual university to enable continuous learning is known as
You buy bonds worth Rs. 500,000/- on which you get a return of Rs. 90,000/- for the year. At the end of the year you sell the bonds for 4,80,000/- What is your ROIYou purchased gold at Rs. 10,000/- per 10 grams and sold it after a year at an ROI of 12%. The selling price of gold per gram isThe present value of an annuity of Rs. 1000 paid yearly for 5 years earning 6% isThe NPV of the following cashflow stream at a cost of capital of 11% is: -100000, 50000, 50000, 40000. Assume yearly cashflows.If a party A makes a periodic payment at LIBOR to party B and Party B pays a fixed 3% to Party A, the transaction is called
Interest rate swap
If an asset is being depreciated at a constant amount every year, the method is called:
Reducing balance method
Ratio Analysis System
The rate of dividend
Basel II Compliance
The compliance solutions of I-Flex are in the areas of: A) Clause 49, B)AML, C)SOXThe owner of the company introduces Rs 6,000 as cash and Rs 4,000 in the form of machinery.The liability of the company would be
Debits
Debits
Reserves
Borrowings of the company against which no security has been provide
Unsecured Loans
44 Capital reserves represents
45 PrimeSourcing is the
46 Credit or default risk is highest for
47 Basel II aims to cover the following risk exposures of a bank Credit Risk
48
49 Amortisation refers to
50 Goodwill refers to
51 Cost of goods sold refers to
52 PBIT refers to
53 Analysis of Balance sheet is important as it
54 The Balance sheet can be valued by using which valuation method
55 Which of the following is(are)True about salvage value
Balanxce in the profit and Loss account which has not been appropriated to any particular reserve account.
Services Outsourcing Division of i-flex solutions lt
Government Bonds
The most vital role amongst all intermediaries during a public issue is played by
Bankers to the Issue
It is an asset but not physical in nature
It is an asset but not physical in nature
Revenue generated from the sale of all the company¿s products or services
Sum of operating profit and non-operating surplus- non-operating deficit.
Identifies potential liquidity problems
Historical Cost
Estimated value that an asset will realize upon it¿s sale at the end of the useful life
56 Current ratio is
57 Quick Ratio is
58 Debt ratio refers to
59 Which of the following is(are)True about EPS
60 Which ratio refers to Market value per share/EPS
61 Entity concept of accounting requires that
62 Which of the following is not a non operational risk Credit Risk
63 Duration of call money is
64 In India the main regulator for the money market is
65
66
67 IRR is
68
69
70 The section of SOX that requires attestation by the CEO and CFO is:
71
72 P/E ratio of a share is:
73 Which of the following is not an objective of PD¿s:
Also known as the working capital ratio
Also known as Acid-test ratio
relative contributions of creditors and owners
refers to earning per share Net profit margin ratio
The business be treated separate from it¿s owners
2 days
SEBIIf a deposit of Rs. 100,000/- earns a rate of 6% compounded continuously for three years, the deposit will be worth 1,18,789.00The FV of a cash flow stream of Rs. 1000 received at the end of each year over 5 years at 6% will be 5637.09
NPV of all the cash flows
The IRR of the following cashflow stream is 100000, 50000, 50000, 40000. Assume yearly cashflows. 19.69%The BPD offers, A)FLEXCUBE ¿ UBS, B) FLEXCUBE ¿ CBS, C).FLEXCUBE ¿ PBS
All of the above
302PrimeSourcing offers solutions for, A).Trade Finance, B).Retail Management, C).Investment Banking
All of the above Issue price of share/EPS Ensure development of secondary market in Government bonds
74
75 Capital expenditure is an expenditure which
76
77 53,000
78 Which of the following is (are) true?
79 11.59%
80 Worldwide currency prices are affected by
81 2 and 5
82 Which of the following is an advantage of a sole proprietorship?
83 Bank borrow in the call money market to give loans
84 Which of the following is the example of risk-free interest rate?
85 which of the following is not a money market instrument? Treasury bills
86 When an investment pays only simple interest rate,this means
87 Which of the following is not a source of long-term finance? Equity shares
88 29387
89 Price Discovery of a security is done by the following process rights issue
90 Income earned by soleproprietorship is taxable under corporate tax
91 stop loss order
92 15.6
93 Who are all kown as stakeholders of a company? Creditors
If you place an order to buy 1000 shares and specify each trade should be 200 shares you have entered a:
Disclosed Quantity Orderbenefits the current accounting period
If Rs.5, 00,000 is left on deposit to earn a rate of 5% for 5 years. What it is worth if the interest is (i) quarterly compounding (ii) half-yearly compounding (iii) continuous compounding?
640000.00,620000.00,610000.00
If a company's Gross profit is Rs.63,000, salary expenses are 4,000,Rent is 6,000,Interest payments are 5,000,other income is 5,000 and taxes are 20% on the net profits,then what is EBIT?
Equity shareholders can claim their unpaid dividend legally
Suppose ABC Ltd co. has following cost and values: market value of Debt - Rs. 500 crs., market value of equity - Rs 350 crs.,cost of debt:12%,cost of equity:17%,Tax:35%.Compute WACC
changes in interest
The minimum number of persons required to form a private limited company and a public limited company respectively are? Life of a firm is
limited to the life of a proprietorship
SBI Mutual Fund @11% return
the future valueof investment wil be low
What is the future value of Rs.20000 invested now for a period of 5 years at an interest rate of 8%?
An order which gets activated only when the market price of that security reaches the trigger price
What is the return on investment per annum for an asset purchased for Rs.82,50,000 and leased for Rs,1,00,000 per mont.h for 18 months,after which it is sold to fetch Rs.80,00,000?
94 Credit risk
95 only (i)
96 The money that is lent for one day is known as? call
97 Gross profit is equal to
98 From the accounting point of view,loss means
99 (i) and (ii)
100 Which of the following are/is not a fixed asset? Stock
101 Which of the following is not an intangible asset? Goodwill
102 P&L account is prepared for a period of one year by following
103 Accounting does not record non-financial transactions because of Entity concept
104 Depreciation is calculated on the
105 97,000
106
107 80,000
108 112.42
109 16,273
110 fixed asset
111 Insure3 an icsurance solution product is provided by Mantas
112 Which of the following is a current liability?
113 If a EUR/USD is quoted as 1.1923,what does it mean?
114 Cash profit is
Mr.Ram purchases a house worth Rs.12 lacs, after seven years he is planning to sell; he gets a value of Rs.10 lacs. What is the risk involved?Which of the following factors influence inflation? (i) Interest rate (ii) rising supply (iii) reducing demand
Sales - cost of goods soldIncrease in liability
Which of the following are investments Avenues? (i) Hedge Funds (ii) Property (iii).Ploughing cash back into business
consistency concept
cost price of asset
Calculate the opening cash balance if the closing cash is:Rs.1,43,000.Rent paid:20,000,out of which advance rent is:3,000.Salaries paid: 20,000 and to be paid is:5,000.Other revenues:1,00,000
Opening capital is:80,000.Closing capital is:1,20,000.Net profit during the year:20,000.The trader has
Drawings of Rs.20,000
Opening stock:40,000.Closing stock:50,000.Sales:70,000.Assuning there is no gros profit and direct expenses the purchases made during the year are:
The amount that has to be invested at the end of every year for a period of 6 years at a rate of interest of 15% in order to accumulate Rs.1000 at the end of 6 years is equal toMr. Shankar deposits Rs.1,00,000 on retirement ina bank which pays 10% annunal interest.How much can he draw for a period of 10 years.
Computers taken on hire by a business for a period of 1 year should be classified as
outstanding salaries
you can buy 0.8387 USD for one EUR
Net profit + depreciation and provision
115 What are the functions of RBI? a.Issues Currency
116 a.Limit order
117
118 Order conditions are broadly classified into:
119
120 Credit Rating Agencies promoted by IDBI a.CRISIL
121 Credit Rating Agencies promoted by IFCI? a. CRISIL
122
123 Known as Hybrid insurance policy? a.Annuities
124 Which of the following is an advantage of partnership firm?
125 What is Depository?
126 Depositories are like banks for securities a.True
127
128
129
130
131
132
133
An order to sell shares, where brokers are given a particular limit for sustenance of loss is know as
An order that allows a trading members to buy or sell as soon as the order is released into market, failing which the order will be removed from the system?
a.Immediate/cancela.Time related conditions
Order that remains in the system until it is cancelled by trading member?
a.Good till cancelled
Which of the following is/are the characteristics of money market instruments? a.Long term
maturity
a.Life of the firm is perpetuala.Hold securities in an account
The selling of securities to the public in the primary market is known as
IPO
IPO is offered in Primary Market
What is the basis of voting rights for members of Co-operative society ?
One Vote per member
The most vital role amongst all the intermediary during a public issue is played by Lead Manager
EPS is
Net profit ¿ Pref. dividend / total number of outstanding shares
DP's have to registered with Stock exchange
Which of the following are zero coupon debt securities? GILT securities
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138
139
140
141
142
143
144
145
Custodians perform which of the following activity on behalf of its client
collection of monetary and non-monetary benefits on securities on behalf of the client
The major difference between a broker and a sub-broker is
Broker is member of exchange while sub broker is not
Prime dealers in India are the one who areDealer on the trading floor
In the Option, who is obligated to honor the deal ?Buyer of the option
PrimeSourcing is thePart of Product offerings
PrimeSourcing has domain expertise in which of the following areas
Derivatives Trading and Processing
Mutual Fund facilitates pooling of investors funds which are managed by
The Trustees of the fund
What is the key regulation that govern the issuance the CPs ?Financial Analytics
What is the key regulation that govern the issuance the CPs ?Issuer must be banks
Why does the central government borrow money?To fund the MPs salary
What does order book show?
Trades that are matched till yesterday
Which of the following is not true for ROI
ROI is usually expressed as a percentage
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151
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153
154
155
156
157
158
159
160
BOI shareholding Ltd. Is the clearing house for NSE
What is Net worth ?
Reserves and Surplus + Equity capital
AML solutions help banks to identify and combat
Money being covered and moved by anti-social & anti-national elements
Which of the capital budgeting methods best suited to find out the time required for recovering initial investment cost ? NPV
ROA sometimes also referred as ROI True
Speculation is for Minimize risk
An amount of Money today is more valuable than the same amount of Money at a future date TRUE
In NPV outflows are taken as negative and inflows are taken as positive. TRUE
IRR is a Discounting rate only
Which of the statements is true ?
For project evaluation lower NPV are preferred over those having a higher NPV
Through diversification you can protect your investment from Market Risk
The minimum number of persons required to form a private limited company and a public limited company respectively are? 2 and 5
Equity share holders can face the risk of not only zero return on their return but also capital loss. TRUE
The method of raising fund from existing shares or debenture holder is known as IPO
GDR is a negotiable certificate issued by a US bank
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162
163
164
165
166
167
168
169
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175
Debenture holders are Stake holders of the company
Working Capital Management involves
the relationship between a firm¿s Long-term assets and its long-term liabilities
_________________ is issued by a bank on behalf of its customer (Buyer) to the seller. Draft
WACC is
Proportion of Equity * Cost of Equity + Proportion of Debt * Cost of Debt
__________________ of an investment (project) is the difference between the sum of the discounted cash flows which are expected from the investment and the amount which is initially invested. IRR
The Financial market / Securities market essentially comprises of few categories of participants namely
Issuers of the securities, Investors in Securities
Financial market facilitate
The raising of capital (in the capital market)
New issuance of the securities comes under which market? Debt market
The markets which provides short term debt financing and investment is known as Debt market
Book building is a process used in right issue for efficient price discovery. TRUE
When an already listed company makes either a fresh issue of securities to the public or an offer of sale to the public, through an offer document, it is known as IPO
_______________ issues Treasury bills, Government dated securities and relief bonds? RBI
Who regulates the issuance of government securities ? SEBI
Who regulates the corporate debt ? SEBI
The ______________ takes up the due diligence of company¿s operations/ management/ business plans/ legal activities etc... Lead Manager
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189
Who assist the company right from preparing prospectus to the listing of securities at the stock exchange ? Lead Manager
Who carry out all the activities of ensuring that the fund are collected and transferred to the Escrow accounts ? Lead Manager
At the time of public offer, who is responsible to do `allotment of shares to the applicant¿s DP account and dispatch of refund order¿ ? Lead Manager
What is the major difference between current ratio and quick ratio ?
Quick ratio consider inventory
RTGS and CLS solutions are provided under a
Cash management solutions
Clearing house
Provides trading platform for its members
Which of the services is not offered by a depository/DP¿s ? Corporate Actions
NSDL stands for National Security Depository Ltd
Who take care of the Post-trading activities on behalf of their clients such as FI¿s, Asset management companies, Pension fund, FII¿s etc¿? Custodian
Which statement is false ?
Broker is not responsible for the acts and dealings of his Sub-Broker
The party who enters orders on the same side of the initiator is known as Initiator
Which order is comes under Time related condition ? All or none (AON)
Which order is comes under Price related condition ? All or none (AON)
In India, trades in rolling settlement are settled on what basis ? T+1
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
Which institution is not working as a Credit Rating Agencies ? CRISIL
_____________________ is the financial market for short term borrowing and lending, typically up to one year. Money Market
The money that is lent for one is known as Call money
The money that is lent for more than one day but less than but less than 15 days it is referred to as Call money
Which is the largest financial market in the world ? FX market
International offering of debt /equity is managed by SEBI
Insurance is a solution provided by BPD
Which ratio shows the earning left for share holders ? Gross profit ratio
This ratio measures the extent to which borrowed funds support the firm¿s assets
Interest coverage ratio
What is Reverse Repo ?Swapping the cash flows
Which statement(s) talks about financial position of the company at the end of an accounting period ?
Fund flow statements
Basel II aims to cover the following risk exposure of a bank Market risk
Which statement is false ?
Trading member is responsible for clearing and settlement of the trades of his own or of his clients.
Which statement(s) talks about financial performance of the company during an accounting period ?
Fund flow statement
What is return on investment per annum for an asset purchased for Rs. 750000 and leased it for Rs.15000 per month and later on sold it for Rs. 630000 ? 6.30%
If Joe earns $125 interest in 30 months on money that was invested at 5%, find the Principal amount. $1,100
Ram has invested Rs. 100000 as a FD into a bank for 3 years. Where he will earn interest of 6% monthly compounding. At the end of third years what will be value of investment? 119698.05
207
208
209
210
211
212
213
214
215
216
217
218
219
You invest $5,000 today. You will earn 8% interest. How much will you have in 4 years ? 6802.5
How much amount should you need for an investment such that you will receive Rs. 337011.63 after five years if rate of interest is 11% p.a. ? 100000
Company XYZ has invested Rs. 5000000 and the expected return of the project amount to Rs. 1250000 annually. Calculate Payback period 5
What is the out of the money in put option?
The underlying securities is trading above the put option¿s strike price
If a EUR/USD pair is quoted as 1.19166, what does it mean ?
You can buy 0.839166 EUR for one USD
¿The right but not the obligation to buy (sell) some underlying cash instruments at a pre-determined rate on a pre-determined expiration date at a pre-set notional amount¿ relates to Futures
Leverage ratio refers to
The ability of a firm to meet its obligations in the short run
Which statement is correct ?
A Depository is an intermediary where the securities are held in the electronic form.
Which is the most popular market for trading of debt instruments? OTC market
Currently the ___________________ facility is used for the limited physical market as per the SEBI directives. Normal Market
The party who enters orders on the opposite side of the initiator is known as Initiator
Which ratio(s) is known as `Efficiency Ratio¿ ?Fixed asset turnover ratio
What is the value of the furniture at the end of 5 years if the PV is 500000 and depreciation rate is 10% ? 350000
220
221
222
223
224
225
226
Calculate WACC where market value of debt: Rs. 600,000,000, Market value of Equity: Rs. 800,000,000, Cost of debt: 9%, Cost of Equity: 16%, Tax:35% 11.65%
An investment with an initial cash out flow of $100,000 pays back $34,432 in the first year, $39,530 in the second year, $39,359 in the third year, and $32,219 in the fourth year. If the rate of return is 12%, find the Net Present Value (NPV) 10545.55
Consider an investment of $1,000 that is expected to yield $500 in 1 year and $700 in 2 years. What is the NPV of the investment at an annual discount rate of 9%? 47.77
Companys gross profit is 63000, salary expenses are 4000, rent is 6000, interest payments are 5000, other income is 5000, and taxes are 20% on the net profits. The company declares 15% as dividend to the share holders. What is the amount which will be transferred to reserves and surplus?
35800
What is the ROI for a new project that is expected to cost Rs. 500,000 over the next five years and deliver an additional Rs. 700,000 in increased profits during the same time ? 30%
What is the depreciation charge per annum if machinery has been valued as 50000, life of machinery is 10 years and the salvage value is 5000 ? 2250
_________________ is a process of determining investment in a project that is expected to produce a cash inflow over a period of time Cost of capital
select * from EXAM.QUESTION_MASTER WHERE qid = 5608
ANS2 ANS3 ANS4 ANS
Bears higher risk Both 1 & 2 3
20% 30% 1
Both 1 & 2 3
336011.63 337011.63 3
Both 1 & 2 3
Only 1 Both 1 & 2 4
4
Both 1 & 2 3
Both 1 & 2 3
Both 1 & 2 1
ICRA CRISIL 3
None of the above
None of the above
Good sign of financial strength
None of the above
None of the above
Projects having higher IRR are preferred to those having lower IRR
None of the above
Does not involve fixed obligation for repayment of dividenPreference Capital has some features of equity and some attributes of debentures.
ADR is a negotiable certificate issued by US bank.
All of the above
Settlement is deemed to be complete upon declaration and release of pay-out of funds and securities.
None of the above.
There is no single location or exchange where debt market participants interact for common business.
None of the above
Maturity period is less than one year.
None of the above.
Standard and Poor and Moody
4
14 days 1 day 3
SBI RBI NSE 3
Both (1) and (2) 3
SEBI SBI ICICI 2
1
3
Creditors Suppliers 4
All of the above 3
3
Both (1) and (2) 3
All of the above 2
1
2
Trading occurs via a network of middlemen called dealers
If an investor wants to buy or sell a bond , he or she must call the bank that makes the market In that bond and asks for quotes.
All of the above.None of the above
It is an over the counter obligation to buy or sell a financial instrument
None of the above.
Performs record keeping functions and investor servicing.
Marketing funds to the investors.
Regulatory body.
The commission that is charged when the investor exits the scheme.
The market value of the assets minus its liabilities.
All of the aboveAll of the above
Profit and Loss or income statement shows the financial performance of the company over a period of time
None of the above
reflects the financial performance of the company over a period of time
flow of funds through the business during a given accounting perio
None of the above
Money Measurement
None of the above
All Assets of the company are valued at their cost value .
None of the above
Credits Any of the above
None of the above.
Liability Income Expenditure
3
1
1
2
2
14873.82 14500 3
1
3
3
3
2
4
3
1
2
3
3
3
Secured Loans
accumulated retained earnings from the profits of normal business.
None of the above.
i-flex university
Flexcube university
None of the above
13.9% 14.1% 14.2%
Rs. 1120 Rs. 1115 None of the above
Rs. 4212.33 Rs. 5637.90 Rs. 4211.56
12973.76
Basis Swap Total Swap Repo Transaction
Deferred charges method
Straight line method
None of the above
Reference Association system
Reliability, Availability, serviceability
Repair, Assess, Sustain
The amount received as dividend
The amount of dividend/ Market Price
The rate of dividend/ market price
Operational Risk Management
Credit Card Solution
Offshore development framework of I-Flex Solutions Ltd
1 & 2 1 & 3 2 & 3
Rs 4,000 Rs 10,000 None of the above.
Credits Any of the above
None of the above.
Credits Any of the above
None of the above
Secured Loans
Owners Equity
None of the above.
Money kept aside to meet future contingencies.
Profits which have been retained in the firm.
None of the above
Secured Loans
accumulated retained earnings from the profits of normal business.
None of the above.
2
4
4
Market Risk 4
3
3
2
3
2
4
4
4
Reserves that arise out of non operational gains such as premium on issue of shares.
Any of the above
None of the above.
Services Outsourcing Division of i-flex consulting
Part of Product Offering
Part of Centers of Excellence
Government Bonds
State or Municipal Corporation Bonds
Junk bonds
Operational Risk All of the above
Underwriter Lead Manager Registrar
It is excess of purchase price over the fair market value
of debt in regular installments over a period of time
List of the settled trades
It is excess of purchase price over the fair market value
Paying off of debt in regular installments over a period of time
List of the settled trades
Non operating deficit
sum of costs incurred for manufacturing the goods sold during the accounting perio
None of the above
A measure of profit which is not influenced by interest and tax factors.
All of the above
None of the above
May signify the company¿s inability to meet financial obligations
helps an investor to spot the degree to which a company is leveraged or indebte
All of the above
Current Market Value
Net realizable Value Method
All of the above
The value is used in accounting to determine depreciation amounts and in the tax system to determine deductions.
The value can be a best guess of the end value or can be determined by a regulatory body.
All of the above
3
3
3
4
3
Both (1) and (2) 3
Currency Risk Market Risk 4
3
3
3
1
3
1
1
2
3
2
2
helps to measure the ability of the firm to meet it¿s current liabilities
Both (1) and (2)
None of the above
an alternative measure of liquidity that does not include inventory
Both (1) and (2)
None of the above
Indicates how well the company¿s earnings can cover the interest payments on it¿s debt
the extent to which borrowed funds support the firm¿s assets.
None of the above
traditional method of determining corporate value
serves as an indicator of company¿s profitability
All of above
Gross profit margin ratio
Price to earnings ratio
None of the above
The business firm is regarded as a separate entity as distinct from the persons who are connected to it.
None of the above.None of the above.
14 days 1 day None of the above
SBI RBI NSE
1,19,668.05 1,19,721.74 1,19,722.80
42142.67 5667.12 5677.30
PV of positive cash flows
The discount rate that makes the NPV zero
None of the above
10.23% 17.66% None of the above
1 & 2 1 & 3 2 & 3
404 210 All of the above
1 & 2 1 & 3 2 & 3 Market price of share/EPS
Dividend/EPS
Preference Share/EPS
To ensure development of Financial markets
To ensure development of underwriting market in govt. bonds
None of the above
3
3
2
58,000 63,000 46,400 2
2
12% 5% 1
Inflation Political Stability 4
5 and 7 2 and 7 7 and 2 3
4
2 & 3 4
3
debentures call money 3
3
Debentures 4
41350 30710 20700 1
book building 2
HUF Wealth tax 2
market order limit order 1
6.93 18.79 10.4 3
Suppliers Shareholders 4
Fill or Kill Order
Minimum fill order
Maximum fill order
will benefit the next accounting period
results in the acquisition of a permanent asset
results in acquisition of current asset
641018.62, 640042.27, 642012.71
631081.23,640024.17,642111.51
None of the above
Preference shareholders do not have voting rights.
Preference dividend is a tax deductible expense to the company.
None of the above
None of the aboveAll of the above
Fund raising from outside is easy
limited personal liabilities
easy and inexpensive to set up
meet the cash reserve ratio
meet sudden demand for funds arising due to large payments and remittances
9% Long-term Debenture.
7% short term government securities.
All of the above
certificate of deposits
the interest earned is non-taxable to the investor
interest is earned on the original investment
the interest rate is lower than the comparable investments
Reserves and Surplus
Commercial Papers
private placement
None of the above
personal income tax
None of the above
All of the above
Market risk Liquidity risk 3
only (ii) (i) and (ii) (ii) and (iii) 1
repo notice term 1
1
Decrease in asset 4
(ii) and (iii) (i) and (iii) 4
Vehicle both (i) and (ii) 4
Trade mark Franchise 4
cost concept 3
accrual concept cost cancept 2
market price 3
2,03,000 1,83,000 1,23,000 2
2
90,0000 1,10,000 70,000 1
114.24 114.42 112.44 2
18,797.10 20,000 15,850 1
not an asset current asset 2
Castek BNX Capco 2
Trademark 1
3
1
None of the above
Sales - closing stock + purchases
Net profit - expenses
Opening stock + purchases - closing stock
Increase in owner's equity
Decrease in owner's equityAll of the above
Fixed deposit in bank
Accounts receivables
conservation concept
time period concept
Money measurement concept
cost + transport + installation expenses
cost or market value whichever is less
Brought additional capital of Rs.20,000
Brought additional capital of Rs.40,000
Drawings of Rs.40,000
deferred revenue expenditure
Discount on issue of shares
prepaid expenses
you can buy 0.8387 EUR for one USD.
you can but 1.1923 USD for one EUR
None of the above
Gross profit - net profit
gross profit - operational expenses
net profit - non trading profit - depreciation and provision
4
b.Cancel order c.Stop loss order d.Market order 3
b.Stop loss order 1
4
1
c.ICRA d.CARE 4
b. ICRA C. Care 2
b.High liquidity c.Highly secured 2
3
4
1
b.False c.Dormant Funds 1
1
1
1
1
1
2
3
b.Banker to the government
c.Formulates monetary and credit policies
d.All of the above
c.Good till cancelled
d.None of the above
b.Price related conditions
c.Quantity related conditions
d.All of the above
b.Good till date/day
c.Immediate or cancel
d.Disclosed quantity
b.Standard and poor
d. Standard and Poor
d.Both (B) and (C)
b.Financial Loss insurance
c.Locked fund insurance
d.Credit insurance
b.Personal liabilities of the partners are limited
c.Its ability to raise funds is virtually unlimited
d.Its relatively free from government regulations as compared to joint stock companies
b.Hold Funds in an account
c.Both (1) and (2)
d.None of the aboved.None of the above
FPO Right issue
Bonus issue
Secondary MarketBoth of the above
None of the above
Proportion of shares held
Members cannot vote
None of the above
Bankers to the issuers Underwriter
All of the above
Gross profit / Outstanding shares
Net profit / Outstanding shares
Net profit / market value of Outstanding shares
SEBI RBI B & C
RBI relief bond Treasury Bills All of the above
4
2
2
2
2
4
2
3
2
2
3
3
Ensure timely settlement of funds and securities
Maintain clearing accounts with DP¿s
All of the above
Broker can trade on the exchange while sub broker cannot
The broker is registered but the sub broker need not to be registered
None of the above
Authorized dealers of Govt. Securities appointed by RBI
Authorized dealers of Govt. Securities
Members of Clearing house
Writer of the option Clearing house
Stock exchange
Services outsourcing division of OFSS
Services outsourcing division of Consulting Parts of COE
Insurance claims Processing
MF accounting and operation
All of the above
Assets Management Company of the fund
Mutual Fund itself
Mutual Fund sponsor
Business Analytics Risk Analytics
Banking Analytics
Issuers must have to be rated by credit rating agencies
They should be issued by RBI
CP should be issued at least for a period of one year and above
To close the budgetary deficit
Both of the above
None of the above
Trades that are matched till that time
Trades that are pending for matching
List of the settled trades
ROI is usually expressed per annum
ROI does not take into account capital loss
ROI takes into account capital loss
2
1
1
3
1
3
1
1
2
2
2
3
1
3
2
BSE RBINone of the above
Long term assets + Equity Capital
Net profit + Reserves
Current Assets + Net Profit
Likely frauds being committed by employees of the bank
Likely money being siphoned off by senior management of the bank
Money being illegally transferred to subsidiaries of the bank
IRR Pay-back period B & C
FALSE
Minimize lossProfit from fluctuation Hedging of risk
FALSE
False
Rate of discounting which makes its NPV equal to zero
Rate of discounting which makes its NPV lower than zero
Rate of discounting which makes its NPV greater than zero
For project evaluation higher NPV are preferred over those having a lower NPV
Both of the above
None of the above
Unsystematic Risk Operational Risk Currency Risk
5 and 7 2 and 7 7 and 2
FALSE
FPO Rights issue Bonus issue
an International bank RBI SBI
4
2
3
3
2
3
4
4
2
2
2
1
2
1
1
Share holders of the company
Creditor of the company A & C
the relationship between a firm¿s short-term assets and its short-term liabilities
the relationship between a firm¿s mid-term assets and its mid-term liabilities B & C
Cheque Letter of CreditNone of the above
Proportion of Equity * Proportion of Debt + Cost of Equity * Cost of Debt (1-Tax)
Proportion of Equity * Cost of Equity + Proportion of Debt * Cost of Debt (1-Tax)
Proportion of Equity * Cost of Equity + Proportion of Debt * (1-Tax)
NPV Pay backNone of the above
Intermediaries A & BNone of the above
The transfer of risk (in the derivatives market)
International trade (in the currency market)
All of the above
Stock marketSecondary market
Primary market
Money marketDerivatives market Stock market
FALSE
FPO Preferred issuePrivate placement
Government Banks B & C
RBI Government B & C
RBIBoth of the above
None of the above
Merchant Banker UnderwriterBankers to the issue
4
4
4
3
1
3
2
3
1
1
2
4
3
2
Merchant Banker UnderwriterBankers to the issue
Merchant Banker UnderwriterBankers to the issue
Merchant Banker Underwriter R&T agents
Current ratio consider inventory
Quick ratio does not consider inventory
Current ratio consider inventory
Treasury management solutions
Wealth management solutions
Trade finance solutions
Holds securities on behalf of its members
Match and reconciles trades
All of the above
Trading
Electronic settlement of trades in Stock Exchanges.
Electronic credit of securities allotted in public issues.
National Securities Depository Participant Ltd
National Securities Depository Ltd
National Securities Deposit Ltd
Underwriter Merchant banker Lead manager
A Sub-broker is an agent of a broker
Sub broker has to registered with SEBI as well as Exchange of which his broker is the member
Clients of the sub broker are to be registered with the main broker
Competitor SolicitorNone of the above
Market Order Stop Loss order
Good till cancelled (GTC)
Good till date (GTD) Stop Loss order
Good till cancelled (GTC)
T+2 T+3 T+4
4
1
1
4
1
2
3
2
4
2
2
4
2
3
2
2
3
S&P and Moody ICRA IFCI
Stock market MF marketSecondary market
Notice money Term money Notice money
Notice money Term money Notice money
Stock market Money market Debt market
RBI Merchant banker Prime broker
PRSG Prime Sourcing None of the above
Net profit ratio Return on assetsReturn on equity
Current ratio Debt Equity ratio Debt ratio
Buying and selling back
Selling and buying back
None of the above
Balance sheetProfit and loss statement A & C
Operational risk Credit riskAll of the above
Trading member is responsible for clearing and settlement of his clients only.
Disclosed Quantity (DQ) is an order with a DQ condition allows the TM to disclose only a part of the order quantity to the market.
Market Order is an order to buy or sell securities at the best price obtainable at the time of entering the order.
Balance sheetProfit and loss statement
None of the above
8.00% 6.93% 6.54%
$1,000 $1,200 $1,150
119700.05 119668.05 119660.05
1
4
4
2
2
3
2
4
1
2
3
4
2
6805.5 6807.5 6809.5
300000 400000 200000
3 3.5 4
The underlying securities is trading below the put option¿s strike price
The underlying securities is trading at the put option¿s strike price
None of the above
You can buy 1.19166 USD for one EUR
You can buy 1.19166 EUR for one USD
None of the above
Forward Options Swaps
Provide an indication of the long-term solvency of the firm
How efficiently the assets are utilized by a firm
How does equity stock of the company is assessed in the capital market
It provides service connected with recording of allotment of securities or transfer of ownership of securities in the record of a depository
A depository cannot directly open the accounts and provide services to the clients.
All of the above
Stock exchange market
Wholesale market A & C
Odd lot Market Auction Market A & C
Competitor SolicitorNone of the above
Inventory turnover ratio
Receivables turnover ratio
All of the above
295245 250000 305125
1
3
2
2
2
3
3
12.75% 12% 11.83%
10645.45 10745.45 10845.55
47.89 47.98 47.78
36040 38500 39060
40% 50% 60%
2500 4500 5000
Capital structureCapital budgeting Cash flow