Q81: The security market line describes the expected return for
- A. The efficient portfolio
- B. the inefficient portfolio
- C. All portfolio and assets
- D. The efficient and inefficient portfolio
Answer
Answer C. All portfolio and assets
Q82: The bond portfolio manager has to watch carefully
- A. The shape of the yield curve
- B. The market interest rate
- C. The shape of the yield curve and shifts that occur in the market interest rate
- D. The repaying capacity of the issuers
Answer
Answer C. The shape of the yield curve and shifts that occur in the market interest rate
Q83: Duration is the measure of
- A. Time structure of the bond
- B. Interest rate risk
- C. Time structure and market risk
- D. Time structure and the interest rate risk
Answer
Answer D. Time structure and the interest rate risk
Q84: The NSE nifty index fund consists of
- A. The stock of the high market capitalisation in NSE
- B. Blue chip companies’ stock of the index
- C. All the stocks of the Nifty index
- D. Consists 90% of the stock index living stocks of lesser importance
Answer
Answer C. All the stocks of the Nifty index
Q85: The market timer is a
- A. Professional portfolio manager
- B. Active portfolio manager
- C. Passive portfolio manager
- D. None
Answer
Answer B. Active portfolio manager
Q86: Oscillators show the share price movement
- A. Over a reference period
- B. Below a reference point
- C. Through a reference point
- D. B & C
Answer
Answer C. Through a reference point
Q87: The individual investor’s optimal portfolio is designated by
- A. The point of tangency with the opportunity set and the capital allocation line
- B. The point of highest reward to variability ratio in the opportunity set
- C. The point of tangency with the indifference curve and the capital allocation line
- D. The point of the highest reward to variability ratio in the indifference curve
Answer
Answer C. The point of tangency with the indifference curve and the capital allocation line
Q88: Marketability risk of bond is
- A. The market risk which affects all the bonds
- B. Variation in return caused by difficulty in selling bonds
- C. The failure to pay the agreed value of the bond by the issuer
- D. a and b
Answer
Answer B. Variation in return caused by difficulty in selling bonds
Q89: Default risk is lower in
- A. treasury bill
- B. Government bonds
- C. ICICI Bonds
- D. IDBI bonds
Answer
Answer A. treasury bill
Q90: The value of the bond depends on
- A. The coupon rate
- B. Years to maturity
- C. Expected yield to maturity
- D. All the above
Answer
Answer D. All the above
Q91: The bond yield remains constant over its life and the discount or premium amount will decrease
- A. At a decreasing rate as its life gets shorter
- B. At a decreasing rate as its life gets longer
- C. At an increasing rate as its life gets shorter
- D. At an increasing rate as its life gets longer
Answer
Answer C. At an increasing rate as its life gets shorter
Q92: Yield to maturity is the single factor that makes
- A. The future value of the present cash flows from a bond equal to bond value
- B. The future value of the present cash flows equals to the future price of the bond
- C. Present value of the future cashflows of the bond equal to the current price of the bond
- D. The future value of the bond equal to the present price
Answer
Answer C. Present value of the future cashflows of the bond equal to the current price of the bond
Q93: The rupee cost averaging approach seems to work better with
- A. Cyclical stock price
- B. declining stock price
- C. Rising stock price
- D. Rising stock price with cyclical patterns
Answer
Answer D. Rising stock price with cyclical patterns
Q94: The term structure of the bond is the relationship between the
- A. The interest rate and bond s maturity period
- B. interest rate of the bond and market rate of interest
- C. Interest rate and price of the bond
- D. Yield and time taken to mature
Answer
Answer D. Yield and time taken to mature
Q95: Coupon yield of the bond is
- A. the discounted value of the bond
- B. Coupon payment stated as a percentage of bond features
- C. Coupon payment stated as a percentage of bond present price
- D. a and c
Answer
Answer C. Coupon payment stated as a percentage of bond present price
Q96: A Banking company whose license is cancelled may appeal to the___
- A. High court
- B. Supreme court
- C. RBI
- D. Central government
Answer
Answer D. Central government
Q97: M. banking means
- A. To perform actions on his / her mobile device
- B. To perform actions on his / her internet service
- C. To perform actions on his / her webpage
- D. To perform actions on his / her pc
Answer
Answer A. To perform actions on his / her mobile device
Q98: Off-line data entry is preferable when
- A. data should be entered without error
- B. the volume of data to be entered is large
- C. the volume of data to be entered is small
- D. information is to be processed periodically
Answer
Answer B. the volume of data to be entered is large
Q99: E-cash means
- A. to transfer money between different parties over a network
- B. to transfer cheque between different parties over a network
- C. to credit money between different parties over a network
- D. to credit cheque between different parties over a network
Answer
Answer A. to transfer money between different parties over a network
Q100: In Electronic cash payment___
- A. debit card payment system is used
- B. customer buys several electronic coins which are digitally signed by coin issuing bank
- C. credit card payment system is used
- D. RSA cryptography is used in the transactions
Answer
Answer C. credit card payment system is used
Q101: The Secure Electronic Transaction protocol is used for___
- A. credit card payment
- B. cheque payment
- C. electronic cash payments
- D. payment of small amounts for internet services
Answer
Answer A. credit card payment
Q102: A digital signature is___
- A. bit string giving identity of a correspondent
- B. unique identification of a sender
- C. an authentication of an electronic record by tying it uniquely to a key only a sender knows
- D. an encrypted signature of a sender
Answer
Answer C. an authentication of an electronic record by tying it uniquely to a key only a sender knows
Q103: Electronic payment system is a___
- A. software
- B. hardware
- C. application
- D. package
Answer
Answer C. application
Q104: Credit information furnished by credit information company to a bank can be used by it___
- A. for any purpose
- B. for publication in its annual report
- C. for taking credit decisions
- D. for underwriting the shares of the borrower company
Answer
Answer C. for taking credit decisions
Q105: A credit card contains___
- A. only cash
- B. not only cash
- C. not for cash
- D. withdraw cash only
Answer
Answer B. not only cash
Q106: The banker has a lien on___
- A. bonds given for collection
- B. bonds given for safe custody
- C. bonds left by mistake
- D. bonds given for safe
Answer
Answer A. bonds given for collection
Q107: ___is an example of an auction site
- A. E-bay
- B. I-bibo
- C. Facebook
- D. Orkut
Answer
Answer A. E-bay
Q108: A debit card is only for
- A. electronic card both withdraw and deposit purpose
- B. electronic card only for shop purpose
- C. electronic card only for withdraw purpose
- D. electronic card only for deposit purpose
Answer
Answer A. electronic card both withdraw and deposit purpose
Q109: The banker has a statutory obligation to___
- A. honour customers cheques
- B. exercise lien
- C. maintain secrecy of his customers’ accounts
- D. honour customers’ bills
Answer
Answer A. honour customers cheques
Q110: Two types of trading in the financial markets
- A. electronic delivery
- B. Courier
- C. Door delivery
- D. Post-delivery
Answer
Answer A. electronic delivery
Q111: The following one is not a material alteration
- A. Alteration of crossing
- B. Alteration of place of payment
- C. Conversion of blank endorsement into full endorsement
- D. Alteration of the payees’ name
Answer
Answer C. Conversion of blank endorsement into full endorsement
Q112: SWIFT have___digital code number?
- A. 11
- B. 5
- C. 6
- D. 10
Answer
Answer A. 11
Q113: The biggest constraint in E-banking is___
- A. start-up cost
- B. maintenance cost
- C. training cost
- D. security cost
Answer
Answer A. start-up cost
Q114: Merchant banker’s activity relate to___
- A. equity and equity related finance
- B. debt and debt related finance
- C. fund business
- D. non-Fund business
Answer
Answer A. equity and equity related finance
Q115: Merchant bankers are___
- A. financial Brokers
- B. financial Intermediaries
- C. credit Appraisers
- D. underwriters
Answer
Answer B. financial Intermediaries
Q116: Cheque is payable on___
- A. demand
- B. usage
- C. fixed future date
- D. after sight
Answer
Answer A. demand
Q117: Mobile banking offers the following
- A. Withdrawal of cash anywhere in India
- B. Statement of account for a specific period
- C. Transfer of funds from one account to another account
- D. Balance enquiry
Answer
Answer D. Balance enquiry
Q118: The debit card offers___
- A. revolving credit for certain period
- B. payoff the entire amount of card usage
- C. on-line recover of amount of card usage
- D. only amount
Answer
Answer C. on-line recover of amount of card usage
Q119: The credit card offers___
- A. revolving credit for certain period
- B. payoff the entire amount of card usage
- C. on-line recover of amount of card usage
- D. only amount
Answer
Answer A. revolving credit for certain period
Q120: A digital certificate___
- A. is an electronic message uniquely identifying the message sender
- B. is a summary of a plain text document
- C. is a reliable third party that authenticates the message sender
- D. is used to identify the owner of a private key and related public key
Answer
Answer D. is used to identify the owner of a private key and related public key
