Bachelor of Management Studies (B.M.S.) SEM VI 2020 21 2020-21 Sample MCQs IFS Question Paper - Mumbai University | munotes

1 Following are the fund-based activities of the bank
b) Credit rating
d) Housing finance
2 Banking sector comes under which of the following sectors
(a) Agricultural Sector
(b) Service sector,
(c) Manufacturing sector,
(d) Industrial sector,
3 A set of complex and closely connected instructions, agents, practices, markets
transactions, claims and liabilities relating to financial aspects of an economy is referred as
a) Financial system,
(b) Financial market,
(c) Financial institution,
(d) Financial management
4 is a market for financial assets which have a long or indefinite maturity
a) Financial system,
(b) Financial market,
(c) Capital market,
(d) Money market
5 was constituted to protect the interests of investors in securities and to promote the
development of and to regulate the securities market through appropriate measures
What does SEBI aim to provide?
(a) Investor protection,
(b) Legal information,
(c) Large volumes on the stock market,
(d) Market the securities business in India
7 The maximum load that a fund can exchange is determined by
(a) Securities and exchange board of India,
(b) Reserve Bank of India,
(d) Distributing Agent
performs great role for finance in
a) Wholesale sector,
(c) small scale and retail sector,
(d) None of the above
is a company registered under
a) The Indian contract act,
(b) The Companies act 1956
(c) The RBI act,
(d) None of the above
Finance is not available in the following factoring services
(b) With recourse factoring,
(c) Maturity factoring,
(d) invoice discounting
are the Bill payable immediately “at sight” or “on presentment”, to the
a) Demand Bill
b) Usance Bill
c)Documentary Bill
d)Clean Bill
12 | Credit protection is available in
(b) with recourse factoring,
(d) Actual Factoring
13 | Under forfaiting the client is able to get credit facility to the extent of
(a) 100% of the value of the export bill,
(b) 80% of the value of the export bill,
(c) 75% of the value of Export bill
100% OF THE VALUE OF
14 bills are not accompanied by any document that show that trade has been taken
place between buyer and seller
a) Demand bill
b) Usance bill
c) Clean bill
d) D/A bill
15 | The process of selling trade debts of a client to a financial intermediary is called
(a) Bill Discounting,
(b) Factoring,
(d) Materialization
16 services are mainly provided to foreign investors
(a) Custodial services,
(b) Financial services,
(c) Factoring services,
(d) Forfaiting Services
The idea of providing factoring services was first thought of
(a) Tandon committee,
(b) Malhotra committee,
(c) VAGHUL COMMITTEE,
(d) None of these
18 | The central theme of forfaiting is the purchasing of by a financial service
(a) Trade bills,
(b) Export bills,
(c) Import bills,
(d) Bills
19 | ------------------------bills are also called as Time Bills
a) Demand Bill
b) Usance Bill
c)Documentary Bill
d)Clean Bill
Bill of Exchange drawn by suppliers on Government is called as
a) Demand Bill
b) Usance Bill
c)Supply Bill
d)Clean Bills
21 | Which of the following is not necessarily a party to a forfaiting transaction?
(a) Exporter,
(b) Importer,
(c) broker,
(d) bank
22 is the process of updating the accounts of the trading parties
(a) Underwriting,
(b) clearing,
(c) stock broking,
(d) banking
23 | Aclearing member who is also a may Clear and settle their own proprietary
(a) Trading member,
(b) board member,
(c) family member,
(d) business member
24 are financial contracts that derive their value from an underlying asset
(a) Future,
(b) forward,
(c) clearing,
(d) derivatives
25 are contracts that represent an agreement to buy or sell a set of assets at a
specified time in the future for a specified amount
(a) Future,
(b) Swaps
(c) Shares
(d) Bonds
26 are traded either on organized exchanges or in OTC markets
(a) Future
(b) forward,
(c) clearing,
(d) Options
27 is the entity through which the securitization transaction is actually operated
(b) originator,
(c) investor,
(d) seller
28 | In the case of payments to investors depend upon the cash flow from the assets
29 are instruments issued by a subsidiary company against the trade debts and
consumer receivables of its parent company
A transaction where financial securities are issued against the cash flow generated from a
pool of assets is called
(a) Factoring
(d) discounting
The process of selling trade debts of a client to a financial intermediary is called
(a) Bill discounting,
(b) factoring,
(d) sale
32 | Buying low in one market & selling high at other market is called as
a) Speculation
b) trading
d)Selling
Swaps are type of
b) Derivatives
d)Trade
34 | -------------------------is process of updating the accounts of trading parties & arranging
transfer of money & securities
a) Trading
c)Clearing & Settlement
d) Factoring
An individual who are given license to participate in securities market on behalf of clients
are called as
a) Stock Brokers
b) Traders
c)Sub-Brokers
d) Online Broker
36 | Any person who is not a trading Member of Stock Exchange but who acts on behalf of
Trading Member as an agent or otherwise assist investors in dealing securities through
trading members are called as
a) Stock Broker
b) Sub Broker
c)Online Broker
d)Clearing Member
37 | Following is example of Stock Broking firm in India
b) Share Khan
d)UNION Bank of India
b) Trading
c)Providing Loan
c)Collection of Cheques
39 | Prospectus is most important document for a company to come out of with
a) Private
b) Public
c)Company
d)Common
40 | An -------------------------relieves company of risk & uncertainties of marketing securities
a) Banker
b) Underwriter
c)Shareholder
d)Company
41 | A very long tenure lease applicable to immovable properties is
(a) Leverage lease,
(b) conveyance lease,
(c) consumer leasing,
(d) balloon lease
42 |In leasing, the risk of obsolescence is assumed by the lessee
(a) Financial lease,
(b) operating lease,
(c) both of the above,
(d) none of the above
43 is referred as both fund based and fee based financial service
(a) Hire purchase,
(b) leasing,
(c) factoring,
(d) underwriting
44 | The act of buying an asset without having to make full payment in the immediate future is
(a) Hire purchase,
(b) finance lease,
(c) operating lease,
(d) sale and leaseback
45 | In housing finance, the lender and borrower enter into an agreement under the act
(a) Transfer of property,
(b) copyright,
(c) partnership,
(d) company
46 | Purchase of a house in India involves various costs which are referred to as costs
(a) Rental,
(b) acquirement,
(c) transfer,
(d) post acquisition
47 | From the following which is not the source of finance of Housing?
a) Loans from Commercial banks
b) Loan from LIC
c)Loans from NBFC
d)Overdraft from Bank
48 | Which is the apex level institution for Housing Finance?
c)LIC
49 | --------------------refers to finance to enable company to resolve its financial difficulties
a) Financial Engineering
b) Turnaround
c)Replacement Capital
d)Buy Outs
50 finance has received a boost through a combination of growing demand and
(a) Consumer,
(b) housing,
(c) banking,
(d) stock
51 | The term refers financial investment in a highly risky and growth-oriented
(a) Venture capital,
(b) merchant banking,
(c) leasing,
(d) none of these
IDBI, IFCI, ICICI etc. are promoted by
(a) of specialized financial institution,
(b) VCFs of commercial bank,
(c) private VCFs,
(d) none of these
OF SPECIALIZED FINANCIAL
53 is known as Mezzanine capital
(a) Development financing,
(b) expansion financing,
(c) replacement finance,
(d) none of these
54 | The first nationalized bank in India to starta VCF
(a) Canara bank,
(c) axis bank,
55 |A is a specialized firm that finances young, start-up companies
(b) finance company,
Which of the following is not a characteristic feature of venture capital firms?
(a) Funding just one or a small number of firms,
(b) holding equity in the firms that are funded,
(d) providing advice and assistance to the firms that are funded
FUNDING JUST ONE OR A SMALL NUMBER
57 | The division of retail banking deals with lending money to customers is called as
(a) Consumer
(b) housing,
(c) short term,
(d) banking
58 loans are granted without a security
(a) Housing,
(b) personal,
(c) car,
(d) vehicle
is a type of Account which allows customer the facility to make
purchases during the month & make payments on deferred basis by easy monthly
a) Revolving Account
b) Open Account
c)Instalment Account
d)Credit Card
A is an association of people who agree to save their money together and in turn
provide loans to each other
(a) Labor union,
(b) capitalist union,
(c) social union,
(d) credit union
61 is not a type of term loan whereby financer provides loan for a fixed period of
d) Bank overdraft
Bajaj Finance is example of
a) Bank
b) Stock Broker
lease is also known as capital or long-term lease
a) Operating
b) Finance
c)Capital
d)Domestic
64 financing in India covers a wide range of products
(a) Consumer,
(b) housing,
(c) short term,
(d) banking
65 card can be issued to parties for undertaking any activities coming under the
purview of direct finance to agriculture
(b) smart,
(c) farmer green,
(d) credit
A credit or debit card issued jointly by member bank & non-financial organization
bearing a brand of both
a) Credit Card
b) Debit Card
d)Monthly Card
67 | Travel and entertainment card (T&E) are primarily for purposes
(a) Movie,
(b) purchase,
(c) travel and entertainment,
(d) Shopping
cards are used to withdraw cash, deposit or transfer funds between accounts
a) Gift card
b) ATM card
c) Store Card
d) Agriculture Card
Switch card is an electronic debit card which enables holder to make payments at
(a) Retail,
(b) wholesale,
(c) super market,
(d) manufacturing
70 are added to customer account each time they swipe a credit card
(b) Reward points,
(c) Civil score,
(d) Add-on card
The smart card is personalized when issued to the cardholder with a passport-sized
(a) The cardholder,
(b) the banker,
(c) the investor,
(d) the seller
(c) CARE
(d) ICICI
73 is a method of renting assets
(a) Hire purchase,
(b) lease,
(c) hedge finance,
(d) credit rating
74 is the opinion of the rating agency on the relative ability and willingness of the
issuer of debt instrument to meet the debt service obligations as and when they arise
(a) Credit rating,
(b) rating by merchant banker,
(c) merit rating,
(d) operating feedback
75 | The credit ratings are expressed as
(a) Alphabetical,
(b) alpha numerical,
(d) Numerical