QN1. Unregistered NBFC’s are still operating in the Indian economy
Answer
Answer: Yes
QN2. A NBFC should not lend more than
a. 10%
b. 15%
c. 20%
d. 25%
Answer
Answer: b. 15%
QN3. Which NBFC recommendations were given in 1996
a. Vaghul Committee
b. Narsimhan Committee
c. Khanna Group
d. Shah Committee
Answer
Answer: C. Khanna Group
QN4. Factoring (without recourse) means if the debtor fails to pay the dues the losses
are absorbed by the client
Answer
Answer: Yes
QN5. Factoring and Bill discounting are just the same service with different names
Answer
Answer: Yes
QN6. Forfaiting and factoring affect the financial statements
Answer
Answer: Yes
QN7. Venture capital is a debt related investment.
Answer
Answer: False
QN8. Venture Capital just technology financing
Answer
Answer: False
QN9. Venture capital has _______ methods of financial analysis
a) One
b) Two
c) Three
d) Four
Answer
Ans b) Two
QN10. SEBI was constituted in
a) 1978
b) 1982
c) 1988
d) 1991
by the Government of India
Answer
Answer: 1988
QN11. After the closure of an issue the compliance report must be sent to SEBI within
a) 15 days
b) 30 days
c) 45 days
d) 60 days
Answer
Answer: a) 15 days
QN12. If a Rights issue is over subscribed the retention of over subscription is not
possible under any circumstances
Answer
Answer: No.
QN13. As per BSE a ” taravaniwala” is a
a) Financier
b) Oddlot Leader
c) Jobber or specialist
d) Floor broker
Answer
Answer: c) Jobber or specialist
QN14. In BSE the specified group consists of :
a) 94 companies
b) 96 companies
c) 100 companies
d) 122 companies
Answer
Answer: c. 100 Companies
QN15. In OTCEI T-days is
a) Wednesday
b) Thursday
c) Friday
d) Saturday
Answer
Answer: d) Saturday
QN16. The first credit rating agency of India was:
a) ICRA
b) CRISIL
c) CARE
d) DCR
Answer
Answer: CRISIL
QN17. Credit Rating along with debt securities is also done for Real estate
Developers/builders, banks, economic, risks, political risks etc.
Answer
Answer: Yes
QN18. NHB works under
a) SEBI
b) Ministry of Finance
c) RBI
d) IDBI
Answer
Answer: c. RBI
QN19. Lease payments are usually made at the start of each period. Thus the first payment is usually made as soon as the lease contract is signed
Answer
Answer: True
QN20. Financial leases provide off-balance sheet financing
Answer
Answer: True
QN21. A financial lease should not be undertaken unless it provides more financing than the equivalent. T/F
Answer
Answer: False
QN22. It makes sense for firms that pay no taxes to lease from firms that do
Answer
Answer: False
QN23. Other things being equal the net tax advantage to leasing increases as nominal rates increase
Answer
Answer: True
State for each of the following pairs of issues which would you expect to involve the lower proportionate underwriting and administrative cost, other things being equal:
QN24. A large issue/ a small issue
Answer
Answer: A Large Issue
QN25. A bond issue/ a common stock issue
Answer
Answer: Bond Issue
QN26. A large negotiated bond issue / a large competitive bond issue.
Answer
Answer: A large negotiated bond issue
QN27. A small private placement of bonds/ small general cash offer of bonds
Answer
Answer: A small private placement of bonds
Besides each of the following issue methods two issuers are listed, choose the one more likely to employee that method
QN28. Rights issue (issue of seasoned stock/issue of unseasoned stock)
Answer
Answer: Issue of seasoned stock
QN29. Competitive general cash officer (bond issue by industrial company/ bond issue by utility holding company)
Answer
Answer: Bond issue by Industrial Company
QN30. Private placement (issue of seasoned stock/ bond issue by industrial company)
Answer
Answer: Bond issue by Industrial Company
QN31. Investors in Mutual Funds obtain returns in the form of dividends, capital gains and appreciation in the value of NAV
Answer
Answer: True
QN32. Close ended Mutual funds have a secondary market available and their prices are determined by demand and supply not NAV.
Answer
Answer: True
QN33. Open ended mutual funds have a fixed capitalization
Answer
Answer: False
QN34. Open ended mutual funds prices are determined by their NAV
Answer
Answer: True
QN35. Custodial services are fund and fee based activities
Answer
Answer: True
QN36. Custodial services are capital intensive and technology driven business: T/F
Answer
Answer: True
QN37. Custodial services fall under RBI :T/F
Answer
Answer: False
QN38. Euro Money = (Euro Currency)+(Euro Deposit): T/F
Answer
Ans True
QN39. Euro money is the money which is regulate in Europe only: T/F
Answer
Answer: False
QN40. Euro loan and Euro bonds are one and the same thing: T/F
Answer
Answer: False
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