Bachelor of Management Studies (B.M.S.) SEM VI 2019 20 Oct 2019-20 FINANCE INNOVATIVE FINANCIAL SERVICES Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks

1. Q3 Use of simple calculator is allowed
2. Q1 A) Multiple choice questions (Attempt any 8 out of 10) 8 marks
3. Q1 The quality of financial service rendered changes from customer to customer. This characteristic of financial services is called
4. Q2 The owner of the equipment in a lease contract is called
5. Q3 The regulator of Housing Finance Companies is ‘
6. Q4 A Clearing member who is not a Trading member is called
7. Q5 To act as a underwriter, Certificate of Registration must be obtained from
   • (a) SEBI (b) RBI (c) Ministry of Finance (d) Ministry of Corporate Affairs
8. Q6 The order which if not traded will remain in the system till it is cancelled or the series expires, whichever is earlier is called as
   • (a) Good for Day (b) Good till Cancelled (c) Good till date (d) Limit Order
9. Q7 is the process of converting illiquid, non-negotiable financial assets into securities of small value which are tradable
10. Q8 Credit card facility is an excellent example of
11. Q9 Venture capital involves level of risk
    • (a) No (b) Low (c) Medium (d) High
12. Q10 The first credit rating agency in India is
    • B) State whether the following statements are True or False (Attempt any 7) 07 is a non-fund based facility
13. Q2 Venture capital helps to create entrepreneurs
14. Q3 Factoring service is provided only for a specific bill of exchange
15. Q4 Bills discounting is a without recourse transaction
16. Q5 | Merchant banking business is regulated by SEBI
17. Q6 By selling off loans through securitization, banks are able to improve their capital
18. Q7 card allows the customers to spend today and pay tomorrow
19. Q8 score shows the creditworthiness of a borrower
20. Q9 The ALM process rests on three pillars : ALM Information System, ALM
21. Q10 In Instalment Sale, the ownership of the asset is transferred to the buyer immediately at the time of sale
22. Q2 A) What is forfaiting ? Explain its benefits. 8 marks
23. Q2 B) What is the registration process to be appointed as Banker to the issue? Describe the roles and responsibilities of Banker to the issue. 07
24. Q2 P) What are the limitations of credit rating? 8 marks
    • Q) What is consumer finance? What are the sources of consumer finance? 07
25. Q3 A) On Ist April 2013, ToneUp Gym purchased a machine from Neil Ltd. on hire purchase basis. The cash price of the machine was Rs.2,00,000/-. The payment was to be made Rs.1,00,000/- on the date of agreement and the balance in two annual installments of Rs interest at annum payable on 31st March each year. The first installment was payable on 31st March 2014 Prepare Machine a/c and Neil Ltd. a/c in the books of ToneUp Gym for the financial years 2013-14 and 2014-15 assuming that the accounts are closed on 31st March every year and depreciation at 20% p.a. is on reducing balance method. 08 What is a Futures contract? Explain its characteristics. 07
26. Q3 P) Explain the registration process for a stock broker. 8 marks
27. Q3 Q) Distinguish between Finance Lease and Operating Lease. providing advance payment of 80% of receivables and for guaranteed payment after 3 months. The rate of interest is 15% compounded quarterly and factoring commission is 1.5% of receivables, both collected upfront 7 marks
28. Q1 amount actually made available to Kareena Ltd
    • ii) Calculate effective cost of funds made available to Kareena Ltd. if both interest and commission are collected in advance
    • iii) interest is collected in arrears and commission in advance. What would be effective cost of funds? 08
29. Q4 B) What are the various disinvestment mechanisms fora venture capital firm? 7 marks
30. Q4 P) Elaborate on the Sources of Funds for Housing Finance Companies. 8 marks
31. Q4 Q) Describe the role of the various parties involved in securitization process. 7 marks
32. Q5 A) Describe the advantages of credit cards. 8 marks
33. Q5 B) What are the terms of consumer finance? 7 marks
34. Q5 Write short notes on (Attempt any 3 out of 5) 15 marks
    • a) Role of NBFCs
    • b) Foreign brokers
    • c) Pass Through Certificate and Pay Through Certificate
    • d) Regulatory Framework for Financial services
    • e) Factoring Cost

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