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 XIX 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 XIX 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 XIX 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 XIX 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 XIX 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)