SYBFM SEM IV SAMPLE QUESTIONS BUSINESS ECONOMICS 1. The following is not a subject matter of macroeconomics (a) national income accounting (b) law of demand and supply (c) business cycle (d) general price level 2. Which branch of macroeconomics specifically focuses On the problems of developing economies ? (a) development economics (b) public finance (c) monetary economics (d) trade cycle theory 3. According to Keynes in order to increase employment We have to increase aggregate (a) Supply (b) Output (c) Demand (d) Investment 4. What is the total money value of the goods and Services produces by the nationals during a Given year ? (a) GNI (b) GDP (c) NDP (d) NNI 5. External debt implies borrowing from------- (a) Individual (b) Firm (c) foreign countries (d) with in the country 6. In which of the economy the leakages in the form of Saving and taxes arise in the circular flow of income (a) Two-sector (b) Three-sector (c) Open (d) one- sector 7. The four sector circular flow economy does not Include (a) world economy (b) financial market (c) Crude oil reserves in oil wells (d) Business 8. Which of the following is not a characteristics of a Trade cycle ? (a) Fluctuations in aggregate economic activity
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
SYBFM SEM IV SAMPLE QUESTIONS
BUSINESS ECONOMICS
1. The following is not a subject matter of macroeconomics
(a) national income accounting
(b) law of demand and supply
(c) business cycle
(d) general price level
2. Which branch of macroeconomics specifically focuses On the problems of developing
economies ?
(a) development economics
(b) public finance
(c) monetary economics
(d) trade cycle theory
3. According to Keynes in order to increase employment We have to increase aggregate
(a) Supply
(b) Output
(c) Demand
(d) Investment
4. What is the total money value of the goods and Services produces by the nationals during
a Given year ?
(a) GNI
(b) GDP
(c) NDP
(d) NNI
5. External debt implies borrowing from-------
(a) Individual
(b) Firm
(c) foreign countries
(d) with in the country
6. In which of the economy the leakages in the form of Saving and taxes arise in the circular
flow of income
(a) Two-sector
(b) Three-sector
(c) Open
(d) one- sector
7. The four sector circular flow economy does not Include
(a) world economy
(b) financial market
(c) Crude oil reserves in oil wells
(d) Business
8. Which of the following is not a characteristics of a Trade cycle ?
(a) Fluctuations in aggregate economic activity
(b) Periodic in nature
(c) Is recurrent
9. Which of the following is not true of prosperity ?
(a) It begins at peak
(b) Bank credit grows rapidly
(c) Idle funds are channelized into productive areas
(d) Comes to an end at peak
10. The theory attributes business cycles to Changes in marginal efficiency of capital----------
-.
(a) Monetary
(b) Multiplier-accelerator
(c) Real business
(d) Investment
11. High powered money includes
(a) Currency with public, cash reserves of banks and other deposits with central bank
(b) Money with public and central bank
(c) Deposits with commercial banks, money with government money with the public
(d) demand deposits and time deposits
12. Which one 0f the not following determines money supply?
(a) High powered money
(b) Money multiplier
(c) Community‟s choice
(d) Narrow money
13. according to keynes, as income increase both MPC and APC
(a) rise
(b) fall
(c) remain constant
(d) is zero
14. The term supply of money‟ is _____.
(a) Stock Concept ‟
(b) (b) Stock of money
(c) (c) Flow and stock concepts
(d) (d)Stable concepts
15. _____ is transferred from one person to another in a given period of time is known as “the
velocity of circulation of money.”
(a) The maximum number of times money
(b) The average number of times money
(c)The minimum number of times money
(d)The minimum number of times income
16. “A rise in the general level of price is definition of inflation given by-
(a) Crowther
(b) (b) Coulbourn
(c) (c) Samuelson
(d) (d)J. M. Keynes
17. In Fisher's equation, which of the following is exogenously determined?
(a) P
(b) T
(c) v
(d) M
18. The main authors of broad money are
(a) Marshall,
(b) (b)J.M. Keynes
(c) (c)A.C. Pigou in Gurley- Shaw, Milton Friedman, Radcliffe Committee
(d) (d)Paul Krugman, Irving Fisher, Robertson
19. Following is an effect of Inflation
(a)Fixed income group
(b) Production
(c) Creditors
(d) Borrower
20. Neo classical approach of demand for money was given by
(a) Dr. Marshal
(b) (b)J.B.Say
(c) (c)J.S.Mills
(d) (d)Keynes
21. The deliberate action of the government to stabilize the economy, as opposed to the
inherent automatic stabilizing properties of the fiscal system, is known as
(a) Forced fiscal policy
(b) Manual fiscal policy
(c) Discretionary fiscal policy
(d) Automatic fiscal policy
22. The theory of fiscal policy derives from
(a) Principle of sound finance
(b) N.I. analysis
(c) Welfare economics
(d) Functional Finance Principle
23. Contra-cyclical fiscal policy was popularised by ________________.
(a) Adam Smith
(b) Dalton
(c) J.B. Say
(d) Keynes
24. Which of the following is not a problem with discretionary policies?
(a) Governments might use them in a way which leads to political business cycles.
(b) Discretionary fiscal policies may act too late.
(c) Discretionary monetary policies lose any power that a rules policy has to hold
inflationary expectations down.
(d) They need to be announced in advance.
25. Which of the following policies would not be used by a government which wished to
increase the quantity of labour that will be hired?
(a) A reduction in income tax rates.
(b) An increase in firms' non-labour costs.
(c) A reduction in the benefits paid to unemployed people.
(d) An increase in help for unemployed people to retrain.
26. An example of expansionary fiscal policy would be
(a) cutting taxes.
(b) cutting government spending.
(c) cutting production of consumer goods.
(d) cutting prices of consumer goods.
27. The use of taxes and government spending to affect the economy
(a) Monetary Policy
(b) Fiscal Policy
(c) Contractionary Policy
(d) Expansionary Policy
28. a plan to reduce aggregate demand and slow the economy
(a) Contractionary Fiscal Policy
(b) Expansionary Fiscal Policy
(c) Contractionary Monetary Policy
(d) Expansionary Monetary Policy
29. During a recession, which of the following is likely to occur?
(a) an increase in real wages
(b) an increase in production
(c) and increase in the GDP growth rate
(d) an increase in the unemployment rate
30. Point out which of the following is not an instrument of fiscal policy
(a) An increase in the interest rate
(b) A cut in unemployment compensation
(c) An increase in tobacco taxes
(d) A cut in the marginal rates of IRPF
31. Principle of sound finance refers to
(a) Maximum Government spending
(b) Minimum Government spending
(c) Revenue and expenditure balanced at the minimum level
(d) Everything should be decided by market
32. Which of the following does not form the basis of sound finance?
(a) Say‟s Law
(b) Assumption of full employment
(c) Ricardian Equivalence Theorem
(d) Lerner‟s Fundamental Rules
33. Which of the following is not a fiscal instrument?
(a) Open market operations
(b) Public expenditure
(c) Taxation
(d) Public debt
34. The concept of „Canon of taxation‟ was first propounded by?
(a) Dalton
(b) J.M. Keynes
(c) Adam Smith
(d) Edwin Canon
35. Discretionary fiscal policy is government action that can be changed __________
(a) Each Year
(b) Once in two years
(c) Once in three years
(d) Once in five years
36. The canon of _______ implies that there should be multiple tax system of diverse nature
(a) Certinty
(b) Diversity
(c) Convenience
(d) Equality
37. Public debt is one of the means to finance ___________________
(a) Government expenditure
(b) Government revenue
(c) Government expenditure and revenue
(d) Government Taxes
38. If a nation has an open economy it means that the nation:
(a) Allows private ownership of capital.
(b) Has flexible exchange rates
(c) Has fixed exchange rates
(d) Conducts trade with other countries
39. Find the odd one out : International trade and domestic trade differ because of:
(a) Different government policies
(b) Immobility of factors
(c) Trade restrictions
(d) Trade Cycles
40. Trade between two countries can be useful if cost ratios of goods are:
(a) Undetermined
(b) Decreasing
(c) Equal
(d) Different
41. David Ricardo presented the theory of international trade called:
(a) Theory of absolute cost advantage
(b) Theory of equal cost advantage
(c) Theory of comparative cost advantage
(d) Theory of total cost advantage
42. Comparative Cost Trade Theory is given by
(a) Adam Smith
(b) David Ricardo
(c) Gottfried Haberle
(d) Heckscher Ohlin
43. Trade between two countries takes place when:
(a) Cost ratios of commodities are equal
(b) Cost ratios of commodities are different
(c) Cost ratios of commodities are high
(d) Cost ratios of commodities are low
(a) Modern theory of international trade is based on the views of:
(b) Robbins and Ricardo
(c) Adam Smith and Marshall
(d) Heckcsher and Ohlin
(e) Saleem and Kareem
44. What are factor endowments
(a) Types of technology
(b) Material inputs used up in the process of production
(c) International differences in climate
(d) National resources, labour, physical capital and human capital
45. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
(a) Military capabilities
(b) labor productivities
(c) relative availabilities of factors of production
(d) tastes
46. Terms of trade of developing countries are generally unfavourable because:
(a) They export primary goods
(b) They export few goods
(c) They export value added capital goods
(d) They import raw materials
47. Policy of Protection in trade:
(a) Facilitates trade
(b) Protects foreign producers
(c) Protects local producers
(d) Protects importers
48. In a free trade world in which no restrictions exist, international trade will lead to:
(a) Reduced real living standard
(b) Increased efficiency
(c) Decreased efficiency
(d) Reduced real GDP
49. Equilibrium terrms of trade is explained by J.S.Mill with the help of the concept of
(a) Reciprocal Demand
(b) Derived Demand
(c) Aggregate Demand
(d) Market Demand
50. Which of the following is a definition of multinational enterprises?
(a) A company employing foreign nationals.
(b) A company headquartered in one country but having operations in other countries.
(c) A company operating in emerging economies
(d) A company originating from developed economies
COMMODITY DERIVATIVES
1) _________ Act gives powers to control production, supply, and distribution etc. of
commodities to maintain equitable distribution at fair prices.
a) Securities Contracts Regulation Act
b) Agricultural Produce Marketing Commission Act
c) Essential Commodities Act
d) Forward Contracts (Regulation) Act
2) ______ is an apex financial institution of the country for agriculture and rural
development.
a) NABARD
b) SEBI
c) IDBI
d) APMC
3) _________ Pool investors‟ money by issuing units to the investors.
a) Equity funds
b) Hedge funds
c) Exchange traded funds
d) Mutual funds
4) _____ is a commodity exchange of Malaysia.
a) SIMES
b) TOCOM
c) COMMEX
d) MCX
5) Trading in futures provides two important function of _______.
a) Price discovery and price risk management
b) Valuation and validation
c) Price volatility and variability
d) Liquidity and returns management
6) Closing out is also known as ____.
a) bucketing
b) offsetting
c) contango
d) winding
7) The predetermined price is also called as _______price.
a) Spot
b) Market
c) Value
d) Strike
8) ____ Contracts are simple derivative contract and are over the counter products.
a) futures
b) forward
c) options
d) swap
9) The prime objective of futures is to ____ against risk of fluctuation in price of the
commodity.
a) hedge
b) speculate
c) day trade
d) arbitrage
10) ______ simultaneously quotes both bid and ask price for the same commodity
throughout the trading session.
a) hedgers
b) market makers
c) scalpers
d) arbitrageurs
11) _________ means a situation where futures contract prices are higher than the
spot price and the futures contracts maturing earlier.
a) congestion
b) convergence
c) basis
d) contango
12) ______ is an order to buy or sell a futures or options contract at whatever price is
obtainable when the order reaches the trading floor.
a) limit order
b) stop loss order
c) market order
d) time order
13) NBOT collects ____ % of settlement value as the delivery margin.
a) 52
b) 20
c) 25
d) 30
14) MTM stands for _______.
a) market-to-mark
b) mark-to-market
c) mark-to-mark
d) market-to-market
15) ____ provides the maximum range within which a contract can be traded in a
session.
a) circuit filter
b) exposure limits
c) deposit requirements
d) margin system
16) Broker is said to be indulging in ______ when he takes directly or indirectly the
opposite site of a customer‟s order either on his account or into an account in
which he has interest without executing the order on an exchange.
a) winding
b) offsetting
c) contango
d) bucketing
17) ______ can be used only for the purpose of settlement of deals entered through the
exchange for the payment of margin money and for any other purpose as may be
specified by the exchange.
a) clearing house
b) clearing Assistant
c) clearing account
d) clearing agent
18) ______ is also referred to as contract grades.
a) dual trading
b) deliverable grades
c) deliverable stocks
d) delivery option
19) _______ have been officially approved by an exchange as deliverable in
settlement of a futures contract.
a) dual trading
b) Contract grades
c) deliverable stocks
d) delivery option
20) ______ is an actual amount of a commodity represented in a contract.
a) contract grades
b) contract units
c) delivery
d) basis
21) ______ refers to having in hand the physical commodity when a short futures or
leverage sale is made or to acquire the commodity that might be deliverable on a
short sale.
a) Basis
b) Liquidation
c) Cover
d) Novation
22) A trade which is not liquidated on the same trading day in which it was
established is called _____
a) overnight trade
b) intraday trade
c) positional trade
d) Delivery
23) _____ is a net bought position.
a) long basis
b) long hedge
c) long position
d) net position
24) _____ is a technical opinion for a market when the market price has decline too
steeply and too fast in relation to underlying fundamental factors.
a) overbought
b) oversold
c) daily trading limit
d) cover
25) Inverted market is also called as _______.
a) liquidation
b) novation
c) congestion
d) backwardation
26) _______ is also referred to as minimum price fluctuation.
a) tick
b) spread
c) basis
d) cover
27) The commodities other than those listed under section 15 are conventionally referred to as
______ commodities.
a) Free
b) Restricted
c) Banned
d) Illegal
28) NSPOT admits members in ___ categories.
a) Two
b) Three
c) Four
d) Five
29) Kisan Call Centre scheme was launched on 21st April, _____.
a) 2000
b) 2002
c) 2003
d) 2004
30) Commodities have historically ______ correlation of daily returns as compared to
equities.
a) Direct
b) Inverse
c) No
d) Strong
31) The ban on futures trading was imposed in ____.
a) 1993
b) 1939
c) 1996
d) 1966
32) ______ Trade are done for 1 hr in a day and are settled the same day.
a) Cash
b) Spot
c) Weekly
d) Hourly
33) _______ Market is used by the exchange to close out the position of the members who
have failed to pay-in their obligations.
a) Auction market
b) Future market
c) Ready delivery market
d) Specific delivery market
34) ______ is applied when price reaches a particular level above or below the previous day‟s
closing price.
a) Special margin
b) Delivery margin
c) Exposure limit
d) Initial margin
35) ______ have been imposed on all commodities to prevent extreme volatility and
unhealthy practices of cornering the market.
a) Exposure limits
b) Price bands
c) Delivery margin
d) Mark to market margin
36) _______ takes and active role in building the businesses in various area of credit market
directly or indirectly through technical affiliation.
a) Atom technologies
b) Micro finance institution
c) Ticker plant limited
d) Credit market services Ltd.
37) ______ includes margining requirements, procedures in respect of exception handling,
position monitoring, exposure limits, investigation techniques and disciplinary action
procedures.
a) Online surveillance
b) Offline surveillance
c) Mark to market margin
d) Exposure limits
38) _______ takes and active role in building the businesses in various area of credit market
directly or indirectly through technical affiliation.
a) Atom technologies
b) Micro finance institution
c) Ticker plant limited
d) Credit market services Ltd.
39) _____ provides information platforms and services to support faster, better decision that
are more informed and immediate.
a) Ticker plant
b) Atom Technology
c) Credit market services
d) MCX-SX Clearing Corporation Ltd.
40) _____ Is a professionally managed online multi Commodity Exchange Promoted by LIC,
NABARD & NSE.
a) NMCE
b) NCDEX
c) MCX
d) ICEX
41) The ____ membership entitles the members to only trade.
a) Professional clearing members
b) Trading cum clearing members
c) Institutional trading cum clearing members
d) Trading members
42) NCDEX currently facilitates trading of _____ commodities.
a) 75
b) 70
c) 57
d) 17
43) The _____ membership entitles the members to clear trades executed to their clients,
TCMs and TMs.
a) Professional clearing members
b) Trading cum clearing members
c) Institutional trading cum clearing members
d) Trading members
44) ____ is a leading government agency engaged in food procurement, distribution and
storage activities.
a) NAFED
b) NIAM
c) FTIL
d) NOL
45) In the _____ market, auctions are initiated by the exchange on behalf of trading members
for settlement related reasons.
a) Primary
b) Secondary
c) Auction
d) Normal
46) FTIL is a principal promoter of _______.
a) MCX
b) NCDEX
c) NMCE
d) ICEX
47) At present futures contracts are available on MCX in _____ categories of commodities.
a) 9
b) 10
c) 11
d) 12
48) _____ located in Mumbai, is a public limited company incorporated on April 23,
2003 under the Companies Act, 1956.
a) MCX
b) NCDEX
c) ICEX
d) NMCE
49) _____ is a public private partnership promoted jointly by India Bulls Financial
Services Ltd.- part of India Bulls Group and MMTC Ltd., a government of India
enterprise.
a) MCX
b) NCDEX
c) ICEX
d) NMCE
50) _____ provides risk management solutions to protect their traders and investors
against adverse market conditions.
a) MCX
b) NCDEX
c) ICEX
d) NMCE
EQUITY MARKET II
1. SEBI was established in the year----------------.
a. 1992
b. 1988
c. 1990
d. 1989
2. Who appoints the chairman of SEBI?
a. Central government
b. Stock exchanges
c. Brokers
d. Investors
3. Listing is mandatory for ------------------.
a. Trading in stock market
b. Marketing a new issue
c. Trading in international markets
d. Declaring dividend
4. ‐‐‐‐‐‐‐‐‐‐‐‐ is the process of admitting securities for trading on a recognized stock
exchange.
a. Issuing
b. Investing
c. Listing
d. De-listing
5. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the process of converting physical paper share into demat share.
a. Dematerialization
b. Depository
c. Dematerialization
d. Depository Participant
6. An offer document prepared for the purpose of QIP is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
a. Placement document
b. Speculation
c. Dematerialization
d. Prospectus
7. Depository participant is the link between the ‐‐‐‐‐‐‐‐‐‐‐ and the owner.
a. Depository
b. Government
c. Corporate
d. RBI
8. National securities clearing corporation Ltd. established in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
a. 1994
b. 1995
c. 1996
d. 1999
9. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be defined as activities, benefits and satisfactions connected with the
sale of money that offer to users and customers, financial related value.
a. Money market
b. Stock exchange
c. Financial services
d. Financial management
10. Equity shares are the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ shares of a limited company
a. Voting
b. Ordinary
c. Limited
d. Unlimited
11. Bonds, debentures etc. are creditor ship securities, also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
a. Debt capital
b. Capital stock
c. Working capital
d. Capital issue
12. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ issued by the central government or state governments are referred to as
government securities.
a. Instruments
b. Securities
c. Bonds
d. Shares
13. Origination, underwriting and distribution are the 3 main services of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
market.
a. Capital market
b. Secondary market
c. SEBI
d. Primary market
14. ESOP stands for‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
a. Employers Stock Option Plan
b. Employees Stock Option Plan
c. Employees Stock Option Premium
d. Employees Stock Ownership Plan
15. The Dow theory uses _________ to follow three major types of market movements.
a. Charting
b. Bar Graph
c. key indicators
d. fundamental analysis
16. The object of portfolio is to reduce ……by diversification
a. A . Return
b. Risk
c. Uncertainty
d. Percentage
17. _________ issue is when a listed company proposes to issue fresh securities to its existing
shareholders.
a. Initial Public offering
b. Dividend
c. Right Issue
d. Sweat Equity
18. The __________ form of the EMH states that the current price fully incorporates all
existing information, private and public.
a. Semi Strong
b. Weak
c. Strong
d. Reuters
19. One of the following is a macroeconomics factor affecting share prices __________.
a. Management Profile
b. PE Ratio
c. Dividend
d. Government Interference
20. Technical analysis differs from fundamental analysis in that technical analysis
___________.
a. is aimed at the market while fundamental analysis aimed at individual stocks.
b. is based on published market data and focuses internal factors.
c. Focuses on the long-term trends of production
d. Does not consider price and volume.
21. _________ relies on charts on past data and volume.
a. Fundamental Analysis
b. Technical Analysis
c. value Analysis
d. Intermediaries
22. Which of the following cannot be called as a debt instrument as referred to in financial
transactions?
a. Certificate of deposit
b. Bonds
c. Stocks
d. Commercial papers
23. People who do not wish to invest in assets where higher expected returns are
unpredictable are.
a. risk seeking
b. risk averse
c. loss averse
d. gain seeking
24. Value of share maintain in the books of accounts is called _______
a. Market Value
b. Face value
c. Trading Value
d. Ask Price
25. _________ relies on charts on past data and volume.
a. Fundamental Analysis
b. Technical Analysis
c. value Analysis
d. Filter Rule
26. __________ is that period after market close during which, the users have inquiry access
only.
a. Open phase
b. Close phase
c. Surveillance and control (SURCON)
d. Government
27. ___________ helps to analyse and understand the financial health and trend of business,
its past performance and makes it possible to forecast the future state of affairs of
business
a. Discounting
b. Fundamental analysis
c. Technical analysis
d. Ratio analysis
28. One of the following is a macroeconomics factor affecting share prices __________.
a. Management Profile
b. PE Ratio
c. Fiscal Policy
d. Customer Base
29. The fundamental analysis is a method of finding out ……
a. ratio
b. Value of shares
c. Tips
d. Future price of security
30. ----------- combines economic, industry and company analysis to forecast future stock
price.
a. Technical analysis
b. Random walk theory
c. Fundamental analysis
d. Diversification
31. Technical analysis study
a. Financial figures of the companies
b. Behaviour of stock prices
c. Data about the industry
d. Company analysis
32. _____________ models predicts a set of possible outcomes weighted by their likelihoods,
or probabilities.
a. Statistical
b. Serial
c. Brownian
d. Stochastic
33. __________ test of randomness is a statistical test that is used to know the randomness in
data.
a) Run
b) Serial Co- relations T
c) Filter rules
d) Stochastic
34. Beta is a measure of the ___________.
a) Volatility
b) Variation
c) Standard Variation
d) Co – variance
35. The _____________ assets that all publicly available information is fully reflected in
securities prices.
a) Weak Form
b) Semi -Strong Form
c) Strong Form
d) Very Strong
36. ___________ means that the market is capable of quickly digesting new information on
the economy, an industry, or the value of an enterprise and accurately holding it into
securities prices.
a) Efficiency
b) Capacity
c) Productivity
d) Stability
37. __________ is the form of the efficient markets hypothesis also states that the current
price fully incorporates information contained in the past history of prices only.
a) Weak Form
b) Semi -Strong Form
c) Strong Form
d) Very Strong
38. There are generally _________ types of opinion about change in share price in context
with past prices and events.
a) Two
b) Three
c) Four
d) Five
39. ___________ is a Brownian Motion where the previous change in the value of a variable
is unrelated to future or past changes.
a) Random Walk
b) Stochastic Models
c) Semi – Strong Form Efficiency
d) Efficient Market Hypothesis
40. The _____________ says nothing about relative price movements that is, about selecting
securities that may or may not perform better than other securities.
a) Random Walk
b) Stochastic Models
c) Semi – Strong Form Efficiency
d) Efficient Market Hypothesis
41. _____________ is the proposition that current stock prices fully reflect available
information about the value of the firm, and there is no way to earn excess profits, by using
this information.
a) Brownian Motion
b) Stochastic Models
c) Semi – Strong Form Efficiency
d) Efficient Market Hypothesis
42. The ___________ version of the efficient market hypothesis states that stock prices
reflect all information relevant to the firm, even including information available only to
company insiders.
a) Weak Form
b) Semi -Strong Form
c) Strong Form
d) Very Strong
43. The main difference between the semi – strong and strong efficiency hypothesis is that in
the letter case, ____________.
a) Nobody should be able to systematically generate profits
b) Everyone should be able to systematically generate profits
c) Nobody should be able to systematically generate loss
d) Everyone should be able to unsystematically generate profits
44. __________________ are some those investors. Those brokers, those participants who
say that the share price is going to actually fall.
a) Bulls
b) Bears
c) Stags
d) Broker
45. __________ gives definition of stock exchange.
a) The Securities Contract Act 1956
b) The Companies Act, 2013
c) Banking Regulations Act, 1949
d) The Companies Act, 1956
46. The „NSE is value weighted Index composed of ___________ stocks.
a) 50
b) 60
c) 70
d) 80
47. ____________ is an organisation which holds securities of investors in elcetronic form at
the request of the investors through a registered Depository Participant.
a) Brokers
b) Custodian
c) Depositories
d) Clearing Members
48. _____________ agency links Clearing Members & NSCCL for funds settlement.
a) Clearing Banks
b) Depository
c) Custodians
d) Clearing Member
49. To work as a Stockbroker ___________ with SEBI is mandatory.
a) Registration
b) Advertisement
c) Promotion
d) Processing
50. Stock Broker should not ________ clients merely to generate business.
a) Mislead
b) Guide
c) Educate
d) Protect
FOREIGN EXCHANGE MARKET – FC
1. The ________ is the rate for a currency at today‟s market prices
A. Sport
B. Spot
C. National
D. International
2. A __ involves the delivery or currency at a specified time in the future at an agreed rate.
A. Forward
B. National
C. International
D. National
3. Real Exchange Rate is the ratio of domestic price indices between _______ countries.
A. two
B. three
C. four
D. five
4. Fixed exchange rate regime is rarely practiced by any country in _______.
A. Present
B. Past
C. National
D. International
5. A currency _________ contains number of currencies with different weight.
A. Basket
B. Normal
C. International
D. National
6. An ___________ rate is the price of one currency in terms of another currency.
A. Exchange
B. Normal
C. Agreed
D. Average
7. An exchange rate is the price of the one currency in terms of ______ currency.
A. Another
B. Domestic
C. National
D. Indian
8. A currency board government does not permit to have discretionary powers to effect
monetary policy.
A. monetary
B. Indian
C. Abroad
D. General
9. _________ economies are able to maintain exchange rate that pegged to a major hard
currency.
A. Stable
B. Mixed
C. Micro
D. Macro
10. __________ involves the delivery of currency at a specified time in the future at an
agreed time.
A. Forward
B. Future
C. Normal
D. Informal
11._____________________ rate at which one currency can be traded against another.
A. Bi-lateral
B. Normal
C. Informal
D. International
12. ________ is the ratio of domestic price indices between two countries.
A. Real
B. General
C. Abnormal
D. Normal
13. The ____________ summarizes the flow of economic transactions between residents of a
given country ad the residents of other countries during a certain period of time.
A. Balance of payment
B. General Information
C. Exchange rate
D. International payment
14. ______________ interest rate differential will also affect the equilibrium exchange rate.
A. Relative
B. Normal
C. Informal
D. Formal
15. The _____________ rates are to a great extent used in nearly all countries of the world.
A. floating
B. Fixed
C. Average
D. Normal
16. The ___ exchange rate regime is also known as dirty float.
A. floating
B. Fixed
C. Normal
D. International
17. The _____ exchange rate is the value of the domestic currency to a foreign currency.
A. Fixed
B. Average
C. Normal
D. General
18. Indian used to peg Indian INR to British Pound till ___________.
A. 1985
B. 1999
C. 1975
D. 1980
19. In _____, china pegged its yuan to a basket of currencies.
A. 2005
B. 1993
C. 1992
D. 2015
20. In _____________the pound had to be devalued because of speculation.
A. 1949
B. 1959
C. 1989
D. 1930
21. Due to _____ exchange rates change in market, demand and market supply of a currency
change in value.
A. Floating
B. Fixed
C. General
D. Normal
22. The ____________ regime is the method a country manages its currency in respect to
foreign currencies.
A. exchange rate
B. General rate
C. Formal rate
D. General rate
23. The _______ is the most common currency used for pegging.
A. US dollar
B. Rupees
C. Average rate
D. Currency
24. The US dollar is the most common currency used for _________.
A. Pegging
B. International trade
C. Transport
D. Trade
25. ___________ capital movements caused by fluctuating ex-change resale.
A. Speculative
B. Movement
C. Currency rate
D. General rate
26. Speculative capital movements caused by fluctuating __________.
A. exchange rate
B. Trade and transport
C. General Rate
D. Movement
27. The monetary authorities generally adopt the policy of ___ against the wind.
A. learning
B. general rate
C. average rate
D. general rate
28. A ___ contract is a contractual obligation to buy from or sell to PNC.
A. forward
B. future
C. general
D. average
29. In __________ maturity Contract the maturity date is fixed.
A. Fixed
B. future
C. general
D. average
30. In partially _________ contracts provide some flexibility.
A. Optional
B. future
C. general
D. average
31. In a______ contract both parties enter into a contract on a given day lock in a fixed rate.
A. future
B. forward
C. general
D. average
32. ________ contracts have a maximum of 3-months trading cycle,
A. future
B. forward
C. general
D. average
33. A _________ contract is forward contract, which is traded on an Exchange.
A. future
B. forward
C. general
D. average
34. NSE commenced trading in futures on individual securities on November 9, ____
A. 2001
B. 1991
C. 2005
D. 2010
35. ____ rates can be quoted as spot or forward contracts.
A. Forex
B. General
C. Average
D. Normal
36. Forex rates can be quoted as ___________ contract
A. Spot
B. General
C. Average
D. Normal
37. Forex rates can be quoted as ___________ contract
A. Forward
B. General
C. Average
D. Normal
38. _________ are cash settled and the settlement is done by calculating the difference
between agreed upon forward rate and spot rate.
A. NDFs
B. NDA
C. NDC
D. NET
39. ____________ price of future contracts on the first day of trading would be the in the
identical in investment portfolios.
A. Base
B. Currency
C. Dollar
D. Indian
40. Future contract highly ____ market.
A. famous
B. general
C. liquid
D. Average
41. ________ contract highly liquid market.
A. famous
B. general
C. liquid
D. Future
42. ______an option giving the buyer of the option, the right out not the obligation to SELL a
currency.
A. Sell
B. Purchase
C. Put
D. Call
43. Full forma of DTB
A. Deutsche Temin Bourse
B. Department Trade Board
C. Dental Term Board
D. Divide Term Bourse
44. Full form of HKFE
A. Hong Kong Future Exchange
B. Hindi Karla Financial Exchange
C. Highish King Fixed Exchange
D. Horn Kon Financial Exchange
45. Full form of CBOT
A. Chicago Board of Trade
B. China Board of Trade
C. China Board of Transport
D. Chicago Board of Travel
46. IMM stands on
A. International Monetary Market
B. Indian Monetary Market
C. Indian Mixed Market
D. International Money Market
47. CRA stands on
A. Country Risk Analysis
B. China Risk Analysis
C. Commodity Risk Analysis
D. China Recommended Analysis
48. ______ is the process of buying and selling the same currency in different markets to
benefit or gain from the price differential.
A. Arbitrage
B. Hedging
C. Speculation
D. Normal
49. In the international parlance, ______ means taking advantage of the price differentials in
the quoted prices of the currencies in different markets.
A. Arbitrage
B. Hedging
C. Speculation
D. Normal
50. A buyer and seller agree on an ______ rate for any date int he future.
A. Exchange
B. Normal
C. Average
D. Internal
CORPORATE FINANCE
Sr. No Particulars
1 The work of the finance manager in a corporation where shares publicly traded is to
_________
a. maximax the EPS
b. decrease the EPS
c. maximax the MPS
d. Maximize the DPS
2 ________ is a situation in which actual profits are not sufficient to pay the interest of
debts and dividends of the share
a. Overcapitalisation
b. Undercapitalisation
c. winding up the company
d. starting up the company
3 An ___________ company is a one that makes exceptionally high profits as compared
to others
a. starting up the company
b. Undercapitalisation
c. winding up the company
d. overcapitalisation
4 _________ is a type of debt where the whole value can be converted into equity
shares.
a. fully convertible preference shares
b. partial debentures
c. fully convertible debentures
d. bank loan
5 ____________ is an offering of securities to an individual or a small group of
investors
a. public placement
b. private placement
c. replacement
d. re issue
6 The basic function of the finance manager is
a. maximization of profits
b. maximization of EPS
c. maximization of MPS
d. Maximization of DPS
7 What is the most appropriate goal of the organisation
a. Maximization of DPS
b. maximization of MPS
c. maximization of profits
d. maximization of EPS
8 _________ is concerned with the acquisition, financing and managing of assets
a. Financial management
b. profit maximization
c. agency theory
d. social responsibility
9 _________ is a type of debt where the whole value cannot be converted into equity
shares.
a. partial debentures
b. non convertible debentures
c. non convertible preference shares
d. bank loan
10 ________ debentures are non transferable
a. Registered
b. Bearer
c. Partial
d. convertible
11 Debentures is a___________ securities.
a. Ownership
b. Creditor ship
c. Government.
d. Working
12 A type of preference shares which can be converted into Equity Shares.
a. Participating Preference Shares.
b. Cumulative Preference Shares
c. Secured Preference Shares.
d. Convertible Preference Shares.
13 Which of the following is a tax - deductible expenditure?
a. Interest on Debt
b. Preference Dividend.
c. Equity Dividend.
d. rent received
14 The ability of the firm in employing long term funds having fixed cost to enhance
returns to the owners
a. Leverage
b. Working capital
c. Receivable Management
d. Cost of capital
15 Responsiveness of firm's EBIT to the changes in sales value
a. Combined Leverage
b. Operating Leverage
c. Financial Leverage
d. Dual Leverage
16 Indicator of responsiveness of firm's EBIT to the changes in its EPS
a. Combined Leverage
b. Operating Leverage
c. Financial Leverage
d. Dual Leverage
17 Potential use of fixed cost, both operating and financial, which magnifies the effect of
sales volume change on EPS of the firm
a. Combined Leverage
b. Operating Leverage
c. Financial Leverage
d. Dual Leverage
18 Level of EBIT where EPS of both plans are same
a. Indifference point
b. Financial BEP
c. Margin of Safety
d. Contribution
19 Level of EBT where EPS = 0 (no profit and no loss)
a. Indifference point
b. Financial BEP
c. Margin of Safety
d. Contribution
20 The rate of return the company has to pay to various suppliers of funds in the
company.
a. Capital budgeting
b. Working capital
c. Capital Structure
d. Cost of capital
21 Rajasthan Group Ltd. issues 3,000 15% Preference shares of Rs.100 each at Rs.90 late
the cost of preference shares.
a. 16.67%
b. 17.77%
c. 18.87%
d. 19.97%
22 A company issues 20%, 1000 irredeemabel preference shares of the fave value of
Rs.100 each. Flotation cost are estimated about 5% of the expected sale price.
Calculate the cost of preference capital when issued at 5% premium.
a. 21.05%
b. 20.05%
c. 23.40%
d. 24.50%
23 Firm's cost of capital is the average cost of
a. All sources
b. All borrowings
c. Share capital
d. Debentures
24 _____ cost is the cost of raising an additional rupee of capital.
a. Marginal
b. Average
c. Fixed
d. Sunk
25 Vikram Ltd. issued Rs.3,00,000, 8% Debentures of Rs.100 each at a premium of 10%.
The flotation costs re 2% on the net proceeds. The tax rate is 50%. You are required
to ascertain cost of debt after tax.
a. 3.71%
b. 13.47%
c. 15.47%
d. 11.23%
26) ___________ refers to the mix of a company‟s debt and equity.
a) Capital Structure
b) Capital Budgeting
c) Capital Stock
d) Capital Assets
27) The full form of the abbreviation BEP is ___________.
a) Break Even Profit
b) Benchmark Earning Profit
c) Break Even Point
d) Before Earning Profit
28) Interest is paid from ____________.
a) Earnings Before Interest and Tax
b) Earning After Interest and Tax
c) Profit After Tax
d) Profit After Tax and Dividend
29) Tax Shelter is available on the ____________ payment.
a) Dividend on Equity Share Capital
b) Interest on Borrowed Capital
c) Dividend on Preference Share Capital
d) None of these
30) The full form of the abbreviation P/E Ratio in P/E Ratio is _____________.
a) Profit Earning
b) Price Equity
c) Preference Equity
d) Price Earning
31) If income tax rate is 35% then post – tax profit is ____________ % of pretax profit.
a) 35
b) 65
c) 85
d) 100
32) EPS is ____________.
a) Economic Per Share
b) Earnings Per Statement
c) Earning Per Share
d) Dividend Per Share
33) The optimal Capital Structure is the mix of debt, equity and preferred stock that
________ the Company‟s Stock Price.
a) Maximizes
b) Minimizes
c) Stabilizes
d) Diminishes
34) The optimal Capital Structure is the mix of debt, equity and preferred stock that
_________ the company‟s Weighted Average Cost of Capital (WACC)
a) Minimizes
b) Miximizes
c) Stabilizes
d) Diminishes
35) ____________ in the corporate tax rate encourage a firm to increase the proportion of
debt in its Capital Structure.
a) An Increase
b) A Decrease
c) Zero
d) Reduction
36) _____________ is the capital structure at which the weighted average cost of capital
is minimum and thereby by value of the firm is maximum.
a) Optimum Capital Structure
b) Capital Budgeting
c) Financial Structure
d) Management Structure
37) ____________ may be defined as the capital structure or combination of debt and
equity, that leads to the maximum value of the firm.
a) Optimum Capital Structure
b) Capital Budgeting
c) Financial Structure
d) Management Structure
38) _____________ is also called as Investment Appraisal.
a) Optimum Capital Structure
b) Capital Budgeting
c) Financial Structure
d) Management Structure
39) ___________ is the planning process used to determine whether an organization‟s
long term investments such as new machinery, replacement of machinery, new plants
etc.
a) Optimum Capital Structure
b) Capital Budgeting
c) Financial Structure
d) Management Structure
40) One of the primary goals of capital budgeting investments is ___________.
a) To increase the value of the firm to the shareholders.
b) To increase the value of the assets
c) To raise long term funds for a company
d) To raise Debt Capital for a company.
42) Under ___________ method, the entire company is considered a single, profit –
generating system.
a) Throughput Analysis
b) DCF Analysis
c) Payback Analysis
d) Payback Period
43) __________ looks at the initial cash outflow needed to fund a project, the mix of
cash inflows in the form of revenue and other future outflows in the form of
maintenance and other costs.
a) Throughput Analysis
b) DCF Analysis
c) Payback Analysis
d) Payback Period
44) The _____________ assumes that nearly all costs in the system are operating
expense, that a company needs to maximize the throughput of the entire system to pay
for expenses.
a) Throughput Analysis
b) DCF Analysis
c) Payback Analysis
d) Payback Period
45) ___________ is the most simple form of capital budgeting analysis and is therefore
the least accurate.
a) Throughput Analysis
b) DCF Analysis
c) Payback Analysis
d) Payback Period
46) The ____________ is identified by dividing the initial investment by the average
yearly cash inflow.
a) Throughput Analysis
b) DCF Analysis
c) Payback Analysis
d) Payback Period
47) _________ are owned and controlled by private businessmen.
a) Public Sector Banks
b) Private Sector Banks
c) Foreign Banks
d) Regional Banks
49) _________ are owned and controlled by foreign promoters.
a) Public Sector Banks
b) Private Sector Banks
c) Foreign Banks
d) Regional Banks
50) Scheduled Banks refer to those banks which have been included in the Second