FF45
1.
2.
3.
4.
5.
6.
7.
8.
9.
Financial services are provided by –
(a) Banks
(b) Financial institutions
(c) Non – banking financial companies
(d) All of the above
Sahara India can be classified as –
(a) Bank
(b) Financial institution
(c) NBFC
(d) Money lender
Which of the following is a fee – based
advisory services?
(a) Leasing
(b) Portfolio management
(c) Venture capital
(d) Insurance
Insurance services are regulated by –
(a) LIC
(b) GIC
(c) IRDA
(d) ICICI
An arrangement that allows a firm to
use and control assets without buying
and owning them, is known as –
(a) Leasing
(b) Factoring
(c) Hire purchase
(d) Venture capital
What is ‘E’ in EMI?
(a) Equal
(b) Economical
(c) Easy
(d) Equated
The contribution of the borrower in
financing is called –
(a) Self – finance
(b) Self contribution
(c) Margin
(d) Installment
Age group for educational loans is
usually –
(a) 16-40 years
(b) 18-35 years
(c) 21-40 years
(d) 15-35 years
‘Touch and stay clause’ is a part of
which insurance policy?
(a) Life insurance
(b) Marine insurance
(c) General insurance
(d) Health insurance
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10. The great fire of London happened in
the year –
(a) 1956
(b) 1955
(c) 1951
(d) 1954
11. When a policy is undertaken by more
than one underwriters, it is called –
(a) Unvalued policy
(b) Block policy
(c) Composite policy
(d) Mixed policy
12. How many categories of merchant
bankers are classified by SEBI?
(a) 2
(b) 6
(c) 3
(d) 4
13. ________ merchant banker can act as
issue managers, adviser, consulate,
underwriter and portfolio manager –
(a) Category – 1
(b) Category – 2
(c) Category – 3
(d) Category – 4
14. In which type of lease arrangement, a
third party called lender is involved?
(a) Primary lease
(b) Secondary lease
(c) Leveraged lease
(d) Direct leasing
15. Lease sent is calculated taking into
account the –
(a) Capital invested
(b) Depreciated
(c) Interest
(d) All of the above
16. Policies issued for a specific period are
called –
(a) Whole life policy
(b) Endowment policy
(c) Single premium policy
(d) Composite policy
17. Which of the following are types of
endowment policies?
(a) Marriage endowment policy
(b) Educational endowment policy
(c) Money back endowment policy
(d) All of the above
(1)
FF45
18. ‘Uberrimae Fedai’ means –
(a) Ultimate control
(b) Peace of mind
(c) Utmost good faith
(d) Ultimate and final
19. ‘Subrogation’ means –
(a) Litigation
(b) Subjectivity
(c) Interference in others life
(d) Stepping into shoes of others
20. _________ is a promise to compensate
the loss –
(a) Subrogation
(b) Cause proxima
(c) Indemnity
(d) Probability
21. Which of the following is not a principle
of insurance?
(a) Principle of cooperation
(b) Principle of collaboration
(c) Principle of indemnity
(d) Principle of contribution
22. Which of the following is not a financial
services provider?
(a) HDFC
(b) SBI
(c) BARC
(d) ICICI
23. Insurance of ships and cargo is
covered under –
(a) General insurance
(b) Marine insurance
(c) Liability insurance
(d) Transport insurance
24. Mixed policy is a mixture of –
(a) Time and voyage policy
(b) Land and sea risk
(c) Life and general insurance
(d) Sea and labour risk
25. In ______ clause, the losses caused by
negligence of crew are also covered –
(a) Voyage policy
(b) Touch and stay
(c) Sea and labour
(d) Inchamree
26. SEBI (Merchant bankers) regulation Act
came into force in –
(a) 1991
(b) 1992
(c) 1995
(d) 1979
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27. In a vertical merger, a firm acquires –
(a) A downstream firm
(b) An upstream firm
(c) A competitor firm
(d) Any upstream or downstream firm
28. Combining of industrial units by owing a
controllable amount of their share
capital, is called –
(a) Holding company
(b) Joint venture
(c) Merger
(d) Acquisition
29. Combing of two or more companies
into an exiting company, is called –
(a) Absorption
(b) Amalgamation
(c) Merger
(d) Consolidation
30. When two firms belonging to unrelated
sectors join together it is called –
(a) Horizontal merger
(b) Consolidation
(c) Absorption
(d) Conglomerate merger
31. HNI investors also known as –
(a) Venture capitalists
(b) Angel investors
(c) Merchant bankers
(d) All of the above
32. Venture capital scheme of IDBI is
named as –
(a) Seed capital scheme
(b) Venture capital fund
(c) Entrepreneurship scheme
(d) Small industry finance scheme
33. Mutual fund were first started in 5th
century in –
(a) USA
(b) England
(c) Germany
(d) Norway
34. Which of the following statements is not
true?
(a) Mutual funds (MFs) provide flexible
investment plans
(b) Mutual funds are certain to provide
higher returns
(c) MFs are regulated and monitored
by SEBI
(d) MFs provide investors with a large
basket of shares
(2)
FF45
35. Which of the following is not an
advantage of mergers?
(a) Synergy
(b) Fast growth
(c) More competition
(d) Diversification
36. Problems faced by companies after merger
may include differences in the areas of –
(a) Cash management
(b) Dividend policy
(c) Financial planning
(d) All of the above
37. In which clause, the insured can claim
the amount spent in trying to save the
goods from impending loss –
(a) At and from clause
(b) Inchmaree clause
(c) Jettison
(d) Sea and labour clause
38. Security that is created in favour of
lender till the deeds are received and a
valid equitable mortgage is created, are
(a) Collateral security
(b) Interim security
(c) Primary security
(d) Secondary security
39. Max new life, ICICI prudential, Birla
sunlife – in which sector these
companies are operating?
(a) Insurance
(b) Auto finance
(c) Housing finance
(d) Leasing
40. Who monitors and regulates financial
institution and intermediates in India.
(a) RBI
(b) SEBI
(c) BSE
(d) Both (a) and (b)
41. Financial services organization render
service to –
(a) Commercial sector
(b) Public sector
(c) Privet sector
(d) All of the above
42. Which of the following is not a financial
service supplier –
(a) HDFC
(b) LIC
(c) BHEL
(d) UTI
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43. Which of the following statements is not
true in case of financial service –
(a) They are intangibles
(b) They belong to an information
based industry
(c) They have a constant demand
(d) They are heterogenous
44. A transaction where goods are
purchased and sold on terms that
payments will be made in installment, is
called –
(a) Leasing
(b) Discounting
(c) Hire purchase
(d) Factoring
45. A service provided for financing and
collection receivables is known as(a) Venture capital
(b) Leasing
(c) Hire purchase
(d) Factoring
46. Which of the following statements is not
true , in case of hire purchase
agreements –
(a) Payment
is made prior
to
possession
(b) Property remains with render till last
installment is paid
(c) Each payment is treated at hire
(d) Payment is made in installment
47. Venture capital is an investment in
highly risky project with the objectives
of earning ______ rate of return .
(a) Unpredictable
(b) Lower
(c) Higher
(d) Fixed
48. In a leasing contract the lessee is one –
(a) Who lessee the asset
(b) Who uses the asset
(c) Who helps in interning the contract
(d) None of the above
49. An agreement in which the use of asset
is aquerd on the period to period basis ,
is called
(a) Direct leasing
(b) Financial leasing
(c) Sale and lease back
(d) Operating lease
(3)
FF45
50. In the books of lessee, lease rental
should be shown on ______ basis
(a) Actual
(b) Estimated
(c) Depreciated
(d) Accrual
51. Which the following statements is true –
(a) In leasing, the ownership is
transferred to lessee
(b) In hire purchase the ownership is
not transferred
(c) In leasing the ownership is not
transferred to lessee
(d) In both leasing & hire purchase the
ownership is transferred
52. The consideration for the use of asset
by lease the –
(a) Installment
(b) Interest
(c) Lease rent
(d) Both (a) and (c)
53. EMI means
(a) Estimated monthly income
(b) Every month income
(c) Equated monthly installments
(d) Equal monthly installment
54. Which of the following is a primary
security on housing finance –
(a) Mortgage
(b) NSC
(c) LIC policy
(d) FDS
55. The earliest form of insurance was –
(a) Marine insurance
(b) Fire insurance
(c) Life insurance
(d) Health insurance
56. The word ‘yogakshema’ in L.I.C. is taken from
(a) Puranas
(b) Mahabharat
(c) Rig-veda
(d) Yajurveda
57. Which of the following is not a function
of insurance –
(a) Distribution of risk
(b) Protection again risk
(c) Saving for future
(d) Reduction risk
58. Insurance act was enacted in the year
(a) 1948
(b) 1938
(c) 1968
(d) 1991
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59. In insurance business , third party
means (a) Insurance company
(b) Insured
(c) Insurance agent
(d) party to whom insured has a liability
60. A promise to compensate the loss is
termed as –
(a) Subrogation
(b) Contribution
(c) Compensation
(d) Indemnity
61. Life insurance corporation of India was
established on –
(a) 1stsept 1956
(b) 1stoct 1956
(c) 1stsept 1955
(d) 1stoct 1955
62. The first bank to begin merchant
banking service in India was –
(a) State bank of India
(b) City bank
(c) Bank of America
(d) National grindlays bank
63. Categorization of merchant banks has
been done by –
(a) RBI
(b) SBI
(c) SEBI
(d) Finance ministry
64. Category IV merchant banks can act
as(a) Consultant or adviser
(b) Underwriter
(c) Portfolio manager
(d) All of the above
65. The income tax act, 1961 uses the term
_______ for describing a merger.
(a) Takeover
(b) Acquisition
(c) Holding company
(d) Arnalgamation
66. When terms engaged in unrelated
business activities combine together, it
is a case of –
(a) Vertical merger
(b) Conglomesmate merger
(c) Holding company
(d) Horizontal merger
(4)
FF45
67. A merger that is substantially financed
through dept, is known as –
(a) Tender offer
(b) Earn out plans
(c) Leveraged buy out
(d) Cash offer
68. The origin of mutual fund can be traced
to-?
(a) Londan
(b) New yark
(c) Belgium
(d) China
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69. In India unit trust of India was
established in -?
(a) 1948
(b) 1964
(c) 1956
(d) 1971
70. Motor insurance policy is issued to the
owners of -?
(a) Automobiles
(b) Buses
(c) Electric motor
(d) Trucks
(5)