B M S

M6.
4 Auditing A
N
S
1 Which of the following is not a kind of audit? D
A. Statutory and private.
B. Government and continuous audit.
C. Interim audit.
D. None of these
2 This kind of audit is conducted generally between two annual audits. B
A. Internal audit.
B. Interim audit.
C. Final audit.
D. Continuous audit.
3 Voucher relates to _. D
A. Cash receipt.
B. Cash payment.
C. Credit transactions
D. All of the above.
4 Auditing begins where _ ends. C
A. Selling.
B. Inventory valuation.
C. Accounting.
D. Purchases
5 In the case of a company in which not less than % of the subscribed A
share capital is held whether singly or in combination by certain special institutions and
bodies, the appointment or re-appointment of auditors shall be made at each annual
general meeting by a special resolution.
a. 25%
b. 30%
c. 20%
d. 15%
6 Which of the following persons is qualified to be a company auditor? D
a) An employee of the company
b) A body corporate
c) A person who is indebted to the company for an amount exceeding Rs. 1000
d) A practicing-chartered accountant
7 When the auditor is an employee of the organization being audited, the audit is A
classified as
a. Internal
b. External
c. Compliance
d. Both A&B
8 A company auditor can be removed before expiry of his term by A
a) Shareholders
b) Board of Directors
c) Central Government
d) State Government
9 If there is capital loss, the auditor should B
a) Not allow payment of dividend
b) Allow payment of dividends
c) Allow payment of dividends after making such losses good
d) None of the above
10 Auditor should see that amount received for premium on issue of shares should be C
shown in
a) Subscribed capital
b) Capital Reserve Account
c) Share Premium account
d) Paid- up capital account
11 Sec.143 of Companies Act 20913 deals with A
a) Powers and rights of an auditor
b) Removal of an auditor
c) Appointment of an auditor
d) Remuneration of an auditor
12 Internal auditor is appointed by A
a) Management
b) Shareholders
c) Government
d) Statutory body
13 Share premium account should be shown in the Balance sheet under C
a) Paid-up capital
b) Subscribed capital
c) Reserves & surplus
d) Reserved capital
14 Is the medium through which an auditor expresses his opinion on the state of affairs of the A
client’s business?
a) Audit report
b) Audit certificate
c) Audit programme
d) Audit planning
15 Is the specific guidelines and directions for efficient and effective completion of the audit A
work on timely and daily basis, so as to minimize audit risk.
a) Audit planning
b) Audit report
c) Audit programme
d) Audit certificate
16 is a method of organizing the accounting system of a business concern or a B
factory by which the duties of various clerks are arranged in such a way that the work of
one person is automatically checked by another.
a)Internal control
b)Internal check
c)Internal audit
d)All of the above
17 Internal check is a part of D
a) Internal audit
b) Internal accounting
c) External audit
d) Internal control
18 Civil liability of an auditor implies liability for D
a) Misappropriation of cash
b) Misappropriation of goods
c) Fraud
d) Misfeasance
19 If an auditor is not appointed at annual general meeting, he is appointed by the A
a) The Central Government
b) Board of Directors
c) Shareholders
d) Company Law board
20 The audit that is made compulsory under statute is called A
a) Statutory audit
b) Partial audit
c) Complete audit
d) Continuous audit
21 Audit means . C
a) Recording business transactions
b) Preparing final accounts
c) Examination of books, accounts or vouchers
d) Decision making
22 When a transaction has not been recorded in the books of account either wholly or B
partially such errors are called .
a) Error of commission
b) Error of omission
c) Compensating error
23 The liabilities of an auditor can be . C
a) Civil
b) Criminal
c) Civil & Criminal
d) Financial
24 Duties of an auditor is . D
a) Statutory duties imposed by the Companies Act
b) Duties imposed by legal or court decisions
c) Duties arising out of professional etiquette
d) All of the above
25 Internal auditor of a company must be . D
a) Cost accountant
b) Chartered accountant
c) ICWA
d) Need not possess any professional qualification
26 Sec.139 (7) provides that in the case of a Government Company or any other A
company owned or controlled by the Central Government, or by any State
Government, the first auditor shall be appointed by
a) Comptroller and Auditor-General of India
b) Central Government
c) State Government
27 Objectives of internal audit includes . D
a) Proper control
b) Perfect accounting system
c) Asset protection
d) All of the above
28 Internal control includes . C
a) Internal audit
b) Internal check
c) Both internal audit and internal check
d) Internal check and external audit
29 Is the examination of all documentary evidence which are available to support the B
authenticity of transactions entered in the client’s records.
a) Accounting
b) Vouching
c) Internal check
30 Sec.140 of the Companies Act 2013 deals with . A
a) Removal of an auditor
b) Appointment of an auditor
c) Remuneration of an auditor
31 Management audit otherwise called as . B
a) Financial audit
b) Efficiency audit
c) Cost audit
d) Cash audit
32 Audit done by the employees of the business undertaking is called . B
a) Final audit
b) Internal audit
c) Company audit
d) Statutory audit
33 Which of the following is not a kind of audit? D
a) Statutory and private audit
b) Government and continuous audit
c) Final, Interim, management audit
34 Effective internal check system reduces B
a) The liability of auditor
b) Work of auditor
c) Responsibilities of an auditor
35 Misappropriation of goods may be checked by B
a) Proper supervision over stock
b) Checking of employees
c) Punishment of employees
36 Auditor has no lien on C
a) Audit note book
b) Audit working papers
c) Books of accounts of clients
d) All of the above
37 Accounting standards are prepared by C
a) SEBI
b) RBI
c) ASB
d) ITA
38 Cost auditor submits reports to the: B
a) Shareholder
b) Board of directors
c) Employees
d) Creditors
39 Bonus shares are issued to . B
a) New members
b) Existing share holders
c) Employees
40 Window dressing implies C
a) Checking wastages
b) Under valuation of assets
c) Over valuation of assets
41 Internal check is suitable for . A
a) Larger concerns
b) Smaller concerns
c) Petty-shop keepers
42 Final audit implies D
a) Finally checking of accounts to reveal frauds
b) Audit for submitting report immediately at the end of the year
c) Audit of banking companies
d) Audit of accounts at the end of the year
43 Remuneration of an internal auditor is fixed by . A
a) Management
b) Shareholders
c) Government
d) Statutory body
44 The objective of the audit planning is D
a) To give appropriate attention to all important areas of audit
b) To identify potential problems
c) To coordinate work with other auditors and experts
d) All of the above
45 Audit papers are the property of . B
a) Client
b) Auditor
c) Both the client and the auditor
d) The audit committee
46 The term “Audit” originated from the Latin word A
a) Audire
b) Adhere
c) Adihere
47 Sole proprietary concerns are to get their financial statements audited B
by independent financial auditors.
a) Legally required
b) Not legally required
c) Ethically required
d) Not ethically required
48 The performance audit may be initiated by the organisation or by . D
a) Government
b) Employees & Management
c) Shareholders
d) External interested parties
49 Balance sheet audit is also known as D
a) Continues audit
b) Annual audit
c) Internal audit
d) Financial audit
50 _______ lays out the strategies to be followed to conduct an audit. A
a) An action plan
b) An audit plan
c) An audit programme
d) All of the above
51 Auditor should determine the and the timing of the audit report. D
a) Nature
b) Actual
c) Nature & actual
d) Form
52 _______ followed by the enterprise affect the audit plan. C
a) Accounting policies
b) Audit policies
c) Accounting and Audit policies
d) Management policies
53 While framing an audit plan auditor should ascertain his cast by D
various legislations on him.
a) Limitations
b) Duties and obligations
c) Rights and powers
d) Term of appointment & responsibilities
54 An audit programme is a set of which are to be followed for C
proper execution of audit.
a) Rules
b) Policies
c) Instructions
d) Actions
55 Audit programme provides instructions to the audit staff and reduces scope for C
a) Understanding
b) Misunderstanding
c) Negligence
d) Liabilities
56 Audit programme helps in fixing the for the work done among the audit D
staff as work done may be traced back to the individual staff members.
a) Remuneration
b) Liabilities
c) Negligence
d) Responsibility
57 On completion of an audit serves the purpose of audit record which A
may be useful for future reference.
a) Audit programme
b) Audit working papers
c) Audit plan
d) Audit notes
58 Audit programme is prepared by A
a) The auditor
b) The client
c) The audit assistant
d) The auditor and his audit assistants
59 The auditor has to obtain to substantiate his opinion on the D
financial statements.
a) Internal evidence
b) External evidence
c) Internal and external evidence
d) Sufficient and appropriate evidence
60 The quality of information generated by the audited organization is directly related to the D
strength of the organization’s
a) Internal check
b) Internal control
c) Internal audit
d) All of the above
Question Bank for M6.5 - A Security Analysis ANS
1) Investment means A
(A) Commitment of funds for future income
(B) Net additions to economy capital stock
(C) Short-term commitment of funds
(D) Capital gain
2) The fundamental analysis approach has been associated with __________. A

(A) Uncertainties (B) Certainties
(C) Ratios (D) Balance sheet
3) The object of portfolio is to reduce __________ by diversification. B

(A) Return (B) Risk
(C) Uncertainty (D) Percentage
4) Speculation can be distinguished from investment in the following way C

(A) Investment is high risk, speculation is low risk
(B) Investment is short-term period of time, speculation covers long term period
(C) Investment is based on planning of funds for safety, liquidity, profitability, and
stability. Speculation on hunches and benefits
(D) Investment is your own funds, speculation consists of other people’s funds
5) An investor invests in assets known as a C

(A) Securities (B) Block of Assets
(C) Portfolio (D) None of the above
6) If interest rates rise, the price of preferred stock C
(A) is not affected (B) rises
(C) falls (D) may rise or fall
7) _____________ risks cover the risk of market, interest rate risk and purchasing A
power risk.
(A) Systematic (B) Unsystematic risk (C) Financial (D) Business
1 P.T.O.
8) Technical analysis is useful______________ C
(A) To make an estimate of growth in a stock market
(B) To find out the market forces influencing stock market
(C) To indicate the direction of the overall market
(D) To analyse the economic activity of government.
9) Purchasing power risk is also known as________ A

(A) Inflation risk (B) Business risk
(C) Financial risk (D) None of these
10) Risk due to internal environment of a firm or those affecting particular industry are A
referred to as ________
(A) Unsystematic risk (B) Systematic risk (C) Normal risk (D)Abnormal risk
11) A combination of various investment products like bonds, shares, securities, A

mutual funds and so on is called as __________
(A) Portfolio (B) Investment (C) Speculation (D) Gambling
12) Investment in which principal amount and the terminal value are known with A
certainty is ________
(A) Fixed principal investment (B) Variable principal investment
(C) Non – security investment (D) Indirect investment
13) The Dow theory was developed by ________________ B

(A) Stock broker by the name of Dow
(B) An editor of Wall Street Journal by the name of Dow
(C) It was developed by Markowitz and Dow
(D) It was developed by Sharpe.
14) Investing in different asset and securities of many companies in an attempt to C

reduce the overall investment risk is known as__________
(A) Portfolio selection (B) Portfolio Revision
(C) Portfolio diversification (D) None of these
2
15) Variance calculation and measuring the Standard deviation is one way of A
measuring
the ______
(A) Risk (B) Return (C) Speculation (D) Gambling
16) ________ analysis refers the study of the variables that influence the future of a A
firm both qualitatively and quantitatively.
(A) Company analysis (B) Industry analysis
(C) Technical analysis (D) Economic analysis
17) The process by which one choose the securities, derivatives and other assets A
include in a portfolio is known as _________________
(A) Portfolio selection (B) Portfolio Revision
(C) Portfolio diversification (D) None of these
18) The main objective of portfolio is to reduce _______ by diversification. B

(A) Return (B) Risk (C) Uncertainty (D) Percentage
19) In Dow theory, secondary movements are those which last only for a short while A
are
also known as ________
(A) Corrections (B) Random wiggles (C) Narrow movements (D) Fluctuations.
20) . ____________describes the relationship between systematic risk and expected A

return for assets, particularly stocks
(A) CAPM (B) PERT (C) Sharp ratio (D) Treynor ratio
21) In Economic sense, Purchase of goods that are not consumed today but are B
used in the future to generate wealth is called as
(A) Savings (B) Investment (C) Speculation (D) Gambling
22) Which of the following are objectives of Investment D

(A) Capital Appreciation (B) Generating Periodical Income
(C) lending Money (D) Both (A) & (B)
23) _______________ means conducting a financial transaction that has substantial A

risk of losing value but also holds the expectation of a significant gain.
(A) Speculation (B) Savings (C) Arbitrage (D) Investment
3 P.T.O.
24) Public Provident Fund (PPF) are what type of Investment avenue B
(A) Marketable Fixed Income
(B) Non-Marketable Fixed Income
(C) Marketable with no guarantee of Income
(D) None of these
25) Investment avenue in which a pool of money collected from many investors to C
invest in different asset classes and managed by a professional investment
manager is called as ______________
(A) Insurance (B) PPF (C) Mutual Funds (D) NSC
26) The word “Security” in Security Analysis stands for _____________ B

(A) Safety (B) Tradable financial Instruments
(C) Mortgage (D) None of these
27) Which method of security analysis of Financial Statements? A

(A) Fundamental Analysis (B) Technical Analysis
(C) Both A & B (D) None of these
28) Which method of security analysis involves analysis of price movements and B
charts
29) Market Analysis Involves C

(A) Quantitative Assessment of Market (B) Qualitative Assessment of Market
(C) Both (A) & (B) (D) None of these
30) Which concepts tells that the value of money available to you today is worth B
more than same amount of money at a future date
(A) Fundamental Analysis (B) Time Value of Money
(C) Dow theory (D) None of these
31) ________________is the anticipated or calculated value of a company, stock, C

currency or product determined through fundamental analysis.
(A) Face Value (B) Book Value
(C) Intrinsic Value (D) None of these
4
32) GDP, GNP, Consumer spending index etc are tools to conduct A
_______________
(A) Economy Analysis (B) Company Analysis
(C) Industry Analysis (D) None of these
33) According to fundamental analysis, a stock shall be purchased when B

_____________
(A) Its market price is more than intrinsic value
(B) Its market price is less than intrinsic value
(C) Its market price is more than Face value
(D) None of these
34) Which is not a factor to conduct fundamental analysis ? D

(A) Ratio Analysis (B) Company’s Growth
(C) Company’s Profit (D) Moving average of price of stock
35) Fundamental Analysis is more suitable for _______________ D

(A) Intraday trade (B) BTST trades
(C) STBT trades (D) Long term Investing
36) Market Discounts Everything is the basic assumption of ________________ B

37) Which of the following tools are used in technical analysis? D

(A) Support Levels (B) Resistance level
(C) Moving averages (D) All of these
38) An upper price level for a security or commodity that is repeatedly reached but B
not exceeded is called as
(A) Support Level (B) Resistance level
(C) Moving average (D) None of these
39) Which of the following theory is of technical analysis ? A

(A) Dow theory (B) Value investing theory
(C) Scientific management theory (D) None of these
5 P.T.O.
40) Technical Analysis is more suitable for _______________ B
(A) Long term investing (B) Short term trading
(C) Savings (D) None of these
41) Market Risk is a type of A

(A) Systematic risk (B) Unsystematic risk
42) Risk of two securities with different expected return can be compared with B
(A) Standard deviation of securities (B) Coefficient of variance
(C) Variance of securities (D) None of these
43) The risk of being unable to sell your investment at a fair price and get your money B
out when you want to is called as _____________
(A) Market Risk (B) Liquidity Risk
(C) Inflation Risk (D) Credit Risk
44) The risk that the company that issued the bond will run into financial difficulties D
and won’t be able to pay the interest or repay the principal at maturity is called
as_____________
45) The risk of a loss in your purchasing power over the period of time is called as C
_________
46) Which portfolio is considered as most favourable ? C

(A) Portfolio with highest risk
(B) Portfilio with lowest risk
(C) Portfolio with highest utility
(D) Portfolio with lowest investment
47) The modern portfolio theory was developed by ? D

(A) Henry Fayol (B) Peter Lynch
(C) Warren Buffet (D) Harry Markowitz
6
48) A set of optimal portfolios that offer the highest expected return for a defined B
level of risk or the lowest risk for a given level of expected return is called as
(A) Deficient Frontier (B) Efficient Frontier
(C) Magnificent Frontier (D) None of these
49) Which Portfolio theory emphasises balancing the portfolio using a wide variety of A
stocks and bonds ?
(A) Traditional Portfolio Theory (B) Modern Portfolio Theory
(C) Dow Theory (D) None of these
50) Portfolio management strategy in which the manager select the portfolio based B
on clients objectives with the intent of holding it for life time is called as
____________________
(A) Active Portfolio Management (B) Passive Portfolio Management
(C) Zigzag Portfolio Management (D) None of these
**********
7 P.T.O.
Sr. Question Bank for M 6.6 A International Financial Management ANS
1) FDI stands for A

(A) Foreign Direct Investment
(B) Foreign Direct Institution
(C) Foreign Direct Infrastructure
(D) Foreign Direct Interaction
2) ADB stands for_____ B
(A) Asian Direct Bank
(B) Asian Development Bank
(C) Asian Direct Board
(D) Asian Development Board
3) IFM stands for ______ C
(A) International Machinery Fund
(B) Institutional Machinery Fund
(C) International Monetary Fund
(D) International Monetary Forum
4) PPP stands for _______ A
(A) Purchasing Power Parity
(B) Purchasing Price Parity
(C) Purchasing Product Parity
(D) Purchasing Promotion Parity
5) Spot market is where financial instruments, such as commodities, currencies and A
securities, are traded for _____________.
(A) Immediate delivery (B) Delivery after 1 week
(C) Delivery after 1 month (D) Delivery after 15 days
6) Currency option is also known as ________. A
(A) Forex Option (B) Future Option (C) Forward Option (D) None of these
7) _________ means the avoidance of a foreign exchange risk. A
(A) Hedging (B) Arbitrage (C) Speculation (D) None of these
1
8) Foreign currency forward market is _____ A
(A) An over the counter unorganized market
(B) Organized market without trading
(C) Organized listed market
(D) Unorganized listed market
9) IFE stands for _______ B
(A) Institutional Fisher Effect
(B) International Fisher Effect
(C) Institutional Fisher Exchange
(D) International Fisher Exchange
10) ___________ is based on the idea that the demand for a country's currency is A
derived from the demand for that country's goods as well as the currency itself.
(A) Purchasing Power Parity
(B) International Fisher Effect
(C) Exchange Risk
(D) Arbitrage
11) __________ is the purchase and sale of an asset in order to profit from a D
difference in the asset's price between markets.
(A) Options
(B) Futures
(C) Hedging
(D) Arbitrage
12) The World Bank was created at the 1944 Bretton Woods Conference. A
(A) 1944
(B) 1947
(C) 1952
(D) 1957
2
13) The International Monetary Fund (IMF) is an international organization, B
headquartered in ___________.
(A) London
(B) Washington, D.C
(C) New York
(D) Canada
14) Which of the following is not a type of foreign exchange exposure? C
(A) Transaction Exposure (B) Translation exposure
(C) Tax Exposure (D) Economic Exposure
15) Risk that a company's equities, assets, liabilities, or income will change in value B
as a result of exchange rate changes is called as _________________
(A) Operating Exposure (B) Translation exposure
(C) Transaction exposure (D) Business risk
16) Forward Contracts are _____________ A
(A) Non standardised (B) Standardised
(C) Homogenous (D) None of these
17) Which of the following contracts are traded through exchange A
(A) Currency Futures (B) Currency Forwards
(C) Currency Backwards (D) None of these
18) Risk Mitigation is called as _______________ C
(A) Speculation (B) Arbitration
(C) Hedging (D) None of these
19) Which contracts have higher counter party default risk B
(A) Futures (B) Forwards
(C) Options (D) None of these
20) The Option which gives the option buyer right to buy an underlying is called as A
____________
(A) Call Option (B) Put Option
3
21) Derivative contract through which two parties exchange the cash flows is called D
as _______________
(A) Futures (B) Forwards
(C) Options (D) Swaps
22) Simplest form of Interest rate swaps where a fixed rate is exchanged for a C
floating rate or vice versa are called as __________________
(A) Basis Swaps (B) Differential Swaps
(C) Plain Vanilla Swaps (D) None of these
23) Swaps in which the notional principal increases as per a pre- agreed schedule are C
called as ___________
(A) Amortising Swaps (B) Differential Swaps
(C) Step up Swaps (D) None of these
24) Which of the following is a type of Foreign Investment? D
(A) FPI (B) FDI
(C) FII (D) All of these
25) FDI Stands for _______________? A
(A) Foreign Direct Investment (B) Foreign Dividend Investment
(C) Foreign Debt Investment (D) None of these
26) Which of the Following instrument enables foreign companies to raise funds A
from Indian Securities market?
(A) Indian Depository Receipts (B) American Depository Receipts
(C) Global Depository Receipts (D) None of these
27) FPI Stands for ________________? C
(A) Foreign Planned Investment (B) Foreign Pledged Investment
(C) Foreign Portfolio Investment (D) None of the
28) Which instrument enables companies located in domestic country to issue one B
or more of its shares or convertibles bonds outside the domestic country?
(A) Indian Depository Receipts (B) Global Depository Receipts
(C) American Depository Receipts (D) None of these
4
29) Under Which type of FDI, a business expands its inland operations to another B
country and undertakes the same activities?
(A) Vertical FDI (B) Horizontal FDI
(C) Conglomerate FDI (D) Platform FDI
30) Under which type of FDI, a business expands into another country by moving to A
a different level of the supply chain?
(A) Vertical FDI (B) Horizontal FDI
(C) Conglomerate FDI (D) Platform FDI
31) What are the advantages of GDR? D
(A) GDR Provides access to foreign capital markets
(B) A company can get registered on overseas stock exchange
(C) GDR Increases shareholder base of the company
(D) All of these
32) The FDI includes ___________ A
(A) Tangible Goods (B) Intangible Goods
(C) Intellectual Property (D) Human Resource
33) More Expansion of FDI can boost _______________ B
(A) Unemployment (B) Employment
(C) Poverty (D) None of these
34) SWIFT stands for ________ A
(A) Society for Worldwide Interbank Financial Telecommunications
(B) Society for Worldwide International Financial Telecommunications
(C) Society for Worldwide Integrated Financial Telecommunications
(D) Society for Worldwide Institutional Financial Telecommunications
35) CHAPS stands for ________ B
(A) Clearing House for Authenticated Payment System
(B) Clearing House for Automated Payment System
(C) Clearing House for Approved Payment System
(D) Clearing House for Artificial Payment System
5
36) CHIPS stands for ________ C
(A) Clearing House for International Payment System
(B) Clearing House for Integrated Payment System
(C) Clearing House for Interbank Payment System
(D) Clearing House for Immediate Payment System
37) Hedging means the avoidance of a foreign exchange ________. C
(A) Return (B) Reward (C) Risk (D) None of these
38) Which of the following are the types of Options Market? C
(A) Call Option (B) Put Option (C) Both (A) & (B) (D) None of these
39) Which of the following factors affecting on Exchange Rate? D
(A) Inflation (B) Interest Rate (C) Speculation (D) All of the above
40) A _________ is the rate of the fixed leg of a swap as determined by its particular C
market and the parties involved.
(A) Exchange Rate (B) Interest Rate (C) Swap Rate (D) None of these
41) Not a profit maximizing business is ______ B
(A) International Monetary Fund
(B) International Banking for Reconstruction and Development
(C) International Financial Corporation
(D) World Trade Organization
42) International Monetary Fund is headquartered in ______ A
(A) Washington
(B) New York
(C) Geneva
(D) Avenue Du Mont Blanc
43) Foreign currency exposures can be avoided by ____ B
(A) Entering into forward contracts
(B) Denominating the transaction in domestic currency
(C) Exposure netting
(D) Maintaining foreign currency accounts
6
44) International Financial Corporation established in the year ____ D
(A) 1948
(B) 1952
(C) 1962
(D) 1956
45) Purchasing Power Parity refers to _____. A
(A) The concept that the same goods should sell for the same price across
countries after exchange rates are taken into account
(B) The concept that interest rates across countries will eventually be the same
(C) The orderly relationship between spot and forward currency exchange rates
and the rates of interest between countries
(D) The natural offsetting relationship provided by costs and revenues in similar
market environments
46) The forward exchange rate _______ B
(A) Is the rate today for exchanging one currency for another for immediate
delivery
(B) Is the rate today for exchanging one currency for another at a specific future
date
(C) Is the rate today for exchanging one currency for another at a specific
location on a specific future date
(D) Is the rate today for exchanging one currency for another at a specific
location for immediate delivery
47) Which organization of the world bank group deals with matters related to the B
development of the poorest countries in the world?
(A) The International Bank for Reconstruction and Development
(B) The International Development Association
(C) The International Finance Corporation
(D) The Multilateral Investment Agency
7
48) India’s foreign exchange rate systems is? B
(A) Fixed Target
(B) Managed Float
(C) Free Float
(D) Fixed and Float
49) The system operated by the WTO is known as the ___ A
(A) Multilateral Trading System
(B) Bilateral Trading System
(C) Ratified System
(D) Ungratified System
50) International Financial Corporation established in ____ A
(A) 1956
(B) 1960
(C) 1966
(D) 1970
8
Question Bank for M6.3 Indian Financial System A
N
S
1) What is the meaning of “financing” in the financial market? C
(A) Advising an organization to raise charity funds
(B) Investing in the securities market
(C) Sourcing funds
(D) Converting the assets into cash
2) Type of market in which securities with less than one year maturity are traded, is A
classified as
(A) money market (B) capital market
(C) transaction market (D) global market
3) In order to protect the interests of investors and regulate the working of stock A
exchanges, the Government in 1988 set up the
(A) SEBI (B) SIDBI
(C) RBI (D) Bank of India
4) The financial market where short term highly liquid near money instruments are B
traded is called as ____________
(A) Capital market (B) Money market
(C) Primary market (D) Secondary market
5) Which of the following are components of Financial System. D

(A) Financial market (B) Financial Instrument
(C) Financial Services (D) All of the above
6) Financial derivatives includes? C

(A) Stock (B) Bonds
(C) Futures (D) None of these
7) The organized or formal financial system includes _____________. A

(A) Commercial banks (B) Indigenous banks
(C) Foreign banks (D) None of these
1 P.T.O.
8) _______ is the organisations, institutions that provide long term funds. A
(A) Commodity market (D) Currency market
9) _______ are financial contracts whose values are obtained from the values of D
underlying assets.
(A) Bonds (B) Mortgages
(C) Stocks (D) Derivatives
10) An option allowing the owner to sell an asset at a future date is a …………… A
(A) Put option (B) Call option
(C) Forward option (D) Future contract
11) Which of the following is not a money market security? C

(A) Treasury bill (B) Commercial paper
(C) Bond (D) Repurchase agreement
12) Which of the following are short-term financial instruments? D

(A) A negotiable certificate of deposit (B) A banker’s acceptance
(C) A U.S. Treasury bond (D) Both (A) and (B) of the above
13) Financial intermediaries D

(A) exist because there are substantial information and transaction costs in the
economy.
(B) improve the lot of the small saver.
(C) are involved in the process of indirect finance.
( D) do all of the above.
14) Compared to future contracts, forward contracts D

(A) are standardized
(B) involve an intermediary or exchange, rather than direct contact between buyer
and seller
(C) have less formal markets
(D) make delivery most often
2
15) Using futures contracts to transfer price risk is called: C
(A) speculating. (B) arbitrage.
(C) hedging. (D) diversifying.
16) Every financial market has the following characteristic: D

(A) It determines the level of interest rates.
(B) It allows common stock to be traded.
(C) It allows loans to be made.
(D) It channels funds from lenders-savers to borrowers-spenders.
17) Industrial corporations are involved in money market by which of the following D
activities?
(A) Issuing commercial paper. (B) Trading in goods on credit in market.
(C) Investing excess cash balance. (D) All of the above.
18) Financial market and institutions: D

(A) Affect the types of goods and services produced in economy.
(B) Affect the profit of businesses.
(C) Involve the movement of huge quantities of money.
(D) Do all of these.
19) Money market is important financial market because: D

(A) Government finances most of its financial needs from it.
(B) Monetary policy is conducted in it.
(C) It is world`s liquidity market.
(D) All of the these
20) Financial derivatives are used for D

(A) Speculating (B) Hedging
(C) Arbitraging (D) All of these
21) Financial instrument such as commercial paper can be sold B

(A) Issued by commercial banks (B) Directly
(C) With brokers or dealers (D) Functional buyers
3 P.T.O.
22) Type of instrument whoever holds it, gets interest and principal amount is D
classified as
(A) Term instrument (B)Interim instrument
(C) Primary instrument (D) Bearer instrument
23) IPO is a _______________ Instrument A

(A) Primary market (B) Secondary market
(C) Tertiary Market (D) None of these
24) Secondary markets provides ______________ to primary market A

(A) Liquidity (B) Capital
(C) loan (D) Large funds
25) The financial market for long-term funds is known as _______ A

(C) Primary market (D) Secondary market
26) Finance Function comprises D

(A) Safe custody of funds only (B) Expenditure of funds only
(C) Both a and b (D) Procurement and effective use of funds
27) The Banks registered under companies act and providing service to general A
public and companies are called as _________________
(A) Commercial banks (B) Indigenous banks
(C) Foreign banks (D) None of these
28) The unorganized financial system comprises of _____________. D

(A) Money lenders (B) Indigenous bankers
(C) Lending pawnbrokers (D) All the above
29) The ultimate source of money in India is _____________. C

(A) Commercial banks (B)Indian companies
(C) RBI (D) All the above
30) Interest rates and bond prices B

(A) Move in the same direction (B) Move in opposite direction
(C) Have no relationship with each other (D) All the above
4
31) Who regulates the capital market in India? A
(A) SEBI (B)RBI (C) IRDA (D)NABARD
32) When was Nifty established? A

(A) 1996 (B) 1952 (C) 1965 (D)None of these
33) The first computerised online stock exchange in India was A

(A) NSE (B) OTCEI (C) BSE (D) MCX
34) How many companies are included in the SENSEX? A

(A) 30 (B) 50 (C) 111 (D)25
35) Which of the following are types of derivative contracts C
(A) Forward (B) Futures (C) Swaps (D)All of the above
36) Which of the following is not a financial derivative? A

(A) Stock (B) Futures (C) Options (D) Forward contracts
37) Forward contracts are risky because they D

(A) Are subject to lack of liquidity (B) Are subject to default risk.
(C) Hedge a portfolio. (D) Both (a) and (b) are true.
38) IPO stands for __________ D

(A) Initial Preference Offering (B) Initial Private Offering
(C) Initial Price Organisation (D) Initial Public Offering
39) _________ is a market for dealing in unlisted securities D

(A) Secondary market (B) Money market
(C) Capital market (D) Grey market
40) The short term financial instruments traded in money market is commonly called D
(A) Bonds (B) Shares (C) Notes (D)Commercial Papers
41) Derivative contracts derive their value from the value of underlying ___________ A
(A) Assets (B) Liabilities
(C) Expenses (D) Income
42) Which of the following derivative contracts are Non- Standardised ? B

(A) Futures Contract (B) Forward market
(C) Swaps (D) All of these
5 P.T.O.
43) Futures contract are traded ____________________ A
(A) Through Exchange (B) Over The Counter
(C) unofficially (D) None of these
44) In India Derivatives trading started in the year ______________ B

(A) 1995 (B) 2000 (C) 2005 (D) 2010
45) Which of the following are the instruments of debt market ? D

(A) Bonds (B) Debentures
(C) Government Securities (D) All of these
46) FPO stands for _________________ A

(A) Follow on public offer (B) First public offer
(C) Final Public offer (D) None of these
47) In India Money Market is regulated by _____________ B

(A) AMFI (B) RBI
(C) SEBI (D) IRDAI
48) BSE and NSE are Examples of __________________ B

(A) Primary Market (B) Secondary Market
(B) Tertiary Market (D) All of these
49) Which of the following is not an money market instrument? C

(A) Commerical Papers (B) Treasury Bills
(C) Equity Shares (D) Certificate of Deposits
50) Which of the following are features of derivatives market ? D

(A) Risk Management (B) Price Discovery
(C) Providing Liquidity (D) All of these
**********
6
TYBMS- Sem-VI (2019-2020)
QUE. 6.2-Human Resource Management, ANS
1) An Organisation is made up of four resources, namely, material, money, machinery, C

and_____________
(A) Furniture (B) Building (C) Men (D) Land
2) HRM is___________ A
(A) A staff functions (B) A line function
(C) Accounting function (D) All of the above
3) Finding ways to reduce ________ is a key responsibility of management. B
(A) Dissatisfaction (B) Uncertainty (C) Stress (D) None of the above
4) Which of the following is a key HR role A
(A) Personnel administrator (B) Business men
(C) Payroll advisor (D) Organisational geographer
5) ________ is considered as a strategic activity. A
(A) Recruitment (B) Planning (C) Productivity (D) All of the above
6) A ______ is a written record of the duties, responsibilities and conditions of the job. C
(A) Job ranking (B) Job enrichment
(C) Job description (D) Job enlargement
7) The process of analyzing jobs from which job descriptions are developed are A
called________.
(A) Job analysis (B) Job evaluation (C) Job enrichment (D) Job enlargement
8) __________ involves a one to one discussion between the participant and A
administrator.
(A) Counselling (B) Training (C) Motivation (D) All of the above
9) A broad statement of the purpose, scope, duties and responsibilities of a particular C
job is___________
(A) Job specification (B) Job description (C) Job analysis (D) Job design
10) Campus Recruiting does not have the advantage of___________ B
(A) High Intellectual Capacity (B) Higher understanding of organization
(C) High level of curiosity (D) High potential
11) Moving employees from one job to another in a predetermined way is called A
___________
(A) Job rotation (B) Job reengineering (C) Work mapping (D) Job enrichment
12) Which of the following is not a function normally performed by HR department? A
(A) Accounting (B) Recruitment and Selection
(C) Pay and Reward (D) Employee Relations
13) HRM is _________ A
(A) Employee oriented (B) Employer oriented
(C) Legally oriented (D) None of the above
1 P.T.O.
14) Scope of the HRM includes _________ D
(A) Retirement and separation of employees (B) HR training and development
(C) Industrial relations (D) All of the above
15) The objectives of HRM are categorized as _______ D
(A) Personal objectives (B) Functional objectives
(C) Organisational and social objectives (D) All of the above
16) HRP stands for _______ B
(A) Human resource project (B) Human resource planning
(C) Human recruitment planning (D) Human recruitment procedure
17) Human Resource Plans must be viewed as an ___________part of corporate planning. D
(A) Important (B) Primary (C)Secondary (D) Integral
18) ___________ is the process of locating , identifying and attracting capable applicants B
(A) Selection (B) Recruitment (C) Placement (D) Transfer
19) Sending an employee to another organisation for a short duration of two or three C
years is known as _____________
(A) Transfer (B) Promotion (C) Deputation (D) Shifting
20) Selection is ___________ the best candidate from the pool of applications. C
(A) Appointing (B) Choosing (C) Hiring (D) Placement
21) Placement involves ____________ a specific job to each one of the selected candidates. C
(A) Determine (B) Allotment (C) Offering (D) Distributing
22) ___________ is welcoming of a new employee to the organisation. C
(A) Entering (B) Appreciation (C) Induction (D) None of these
23) Training is the act of increasing the ___________ of an employee for doing a particular C
job.
(A) Personality (B) Development (C) Knowledge and Skills (D) Salary
24) Which is of the following is not a Traditional Method of Performance Appraisal. D
(A) Ranking Method (B) Paired Comparison
(C) Grading (D)Management By Objective
25) The Concept of HRD was first introduced by __________ in 1969 in a conference in U.S. C
(A) T. Venkateshwara Rao (B) V.P. Michael (C) Leonard Nadler (D) P. Subbarao
26) Human Resource Development is an activity taken in the firm itself to ________ their A
workforce.
(A) Train and Develop (B) Prepare (C) Qualified (D) Upgrade
27) The Importance of Human Resource Planning lies in the effective _________ of human C
resources in the organisation.
(A) Allocation (B) Appointment (C) Utilisation (d) Development
28) Which of the following is not a role of a Human Resource Manager D
(A) Personnel Role (B) Welfare Role
(C) Administrative Role (D) Leadership Role
29) ___________ meets the organisation need for the right type of people in right number D
at right times
(A) HRM (B) HRD (C)Personnel Management (D) HRP
2
30) The Human Resource Planning process consists of activities relating to_______ for B
and supply of manpower
(A) Current Demand (B) Future Demand (C) Past Demand (D) None of these
31) Internal Recruitment limits its _________ to the talent available within the B
organisation.
(A) Selection (B) Choice (C) Scope (D) Expansion
32) The selection process is likely to________ from organisation to organisation. B
(A) Same to same (B) Vary (C)Fixed (D) Changing
33) In formal training programmes, the best methods of performing jobs are C
_________and then taught to employees.
(A) Normal (B) Fair (C) Standardised (D) formal
34) In ____________ method of training a trainee moves from one job to another and from C
one department to another.
(A) Role Play (B) Vestibule Training (C) Job Rotation (D) Case Method
35) The objective of ____________ is to help an individual understand oneself and others A
(A) Experimental Method (B) Sensitivity Training
(C) Lectures Method (D) Seminars
36) _______________ is a systematic and objective way of judging the ability of an employee C
in performing task.
(A) Evaluation (B) Judgement (C) Performance Appraisal (D) None of these
37) _____________ method was first developed and formally used by General Electric C
Company of USA in 1992.
(A) MBO Method (B) BARS (c) 360- Degree Appraisal (D) Cost Accounting
38) Forced –choice Method is developed by _________ B
(A)Tiffen (B) J.P. Guilford (C) Peter Drucker (D) F.W. Taylor.
39) There are __________ types of Promotion in organisation. B
(A)Two (B) Three (C) Four (D) Five
40) When an employee is shifted in the same category, it is called________ promotion. B
(A) Vertical (B) Horizontal (C) Dry (D) Side.
41) When Promotion is made without increase in salary, it is called _______promotion. C
(A)without increment (B) Vertical (C) Dry (D) None of these
42) ________ is just the opposite of promotion. B
(A) Retrenchment (B) Demotion (C) Degradation (D) Punishment
43) Separation is situation when the service __________ of an employee with his/her C
organisation comes to an end.
(A) Contract (B) Bond (C) Agreement (D) Conditions
44) Which of the following type of retirement is also called as “ Golden Hand Shake” B
(A) Compulsory Retirement (B) Voluntary Retirement
(C) Superannuation Retirement (D) None of these
45) Which of the following is not a form of Separation. D
(A) Retirement (B)Resignation (C) Lay off (D) Transfer
3 P.T.O.
46) Resignation may be voluntary or ____________ C
(A) Unwillingly (B) Willingly (C) Involuntarily (D) Compulsory.
47) Retrenchment means _________ termination of an employee’s services for economic A
reasons.
(A) Permanent (B) Temporary (C) Legal (D) Compulsory.
48) Dismissal is ___________ of service of an employee as punitive measure. B
(A) End (B) Termination (C)Discontinuation (D) Break
49) Demotion affects the status, pride, career and _________ of the employee. C
(A) Standard (B) Lifestyle (C) Income (D) Family.
50) Demotion is also used as ____________ measures against erring employee. B
(A) Safety (B) Disciplinary (C) Legal (D) None of these
51) The organisation has to place the _________ candidate , once he reports to duty. B
(A) Recruited (B) Selected (C) Appointed (D) Chose
52) __________ enables an employee to satisfy his aptitude for challenging work. C
(A) Team work (B) Job enrichment (C) Job rotation (D) Job satisfaction
53) Continuous training and development programmes help the employees to acquire B
new_________
(A) Knowledge (B) Skills and Knowledge (C) Information (D) Techniques
54) Empowering employees makes the employer to exploit his_________ and make use of C
them.
(A) Capabilities (B) Talents (C) Potentialities (D) Knowledge
55) A test is a systematic __________ for comparing the behaviour of two or more person. A
(A) Procedure (B) Examination (C) Method (D) Comparison
56) The last tool is used in the __________ process is physical examination. C
(A) Recruitment (B) Appointment (C) Selection (D) Examination
57) Which of the following is not a off-the job methods of Executive Development A
(A) Committee Assignments (B) Lecture (C) Case studies (D) Role playing
58) Which of the following is not a operative function of Human Resource Management A
(A) Planning (B) Procurement (C) Development (D)Compensation
59) ___________ is a process by which managers select, train promote, and retire their D
subordinate.
(A)Selection (B) Recruitment (C) Placement (D) Staffing
60) While other resources depreciate, human resources__________ passage of time. C
(A) Develops (B) Trains (C) Appreciate (D) Retires
61) “Sumantra Ghosal” cosider human resourses as _________ C
(A) Working Capital (B) An Assets (C) Human Capital (D) Work force
62) The primary objectives of HRM is to ensure the availability of right people for______ D
(A) right work (B) right duty (C) right time (D) right jobs
63) The scope of HRM is indeed very _______ B
(A) descriptive (B) Vast and wide (C) Less and narrow (D) Large
4
64) HRM can broadly be classified into two categories i.e. management function &_____ A
(A) operative function (B) Administrative function
(C) Non-operative function (D) overall functions
65) Personnel Management does not focus on _________management B
(A) Business (B) Strategic (C) Human Resource (D) None of these
66) Organisation cannot afford to have even one ___________ C
(A) extra Employee (B) efficient employee (C) idle employee (D) skilled employee
67) Salary & wage administration work is known as __________ role of Human Resource C
Manager
(A) Personnel (B) Welfare (C) Administrative & Legal (D) Fire fighting
68) Human Resource Manager should have quality of _________ so that employees may A
response may response confident in him
(A) Personnel integrity (B) High capacity
(C) Creative thinking (D) friendly approach
69) The Personnel Manager plays the role of a ______ to whom the employees frequently B
go for consultation
(A) Consultant (B) Counsellor (C) Advisor (D) Co-ordinator
70) Human Resource Planning is a process of _________balance between human resource C
required and acquired in an organisation
(A) Maintain (B) Retain (C) Sticking (D) Correct
71) Human Resource planning includes estimation of how many qualified people are B
necessary to carry out the _________ activities
(A) determined (B) Assigned (C) Overall (D) allotted
72) The main objectives of Human Resource Planning is to ensure _________ of manpower C
as and when required
(A) maximum supply (B) Minimum supply
(C) adequate supply (D) optimum supply
73) _____________ rates to forecast future requirements of Human Resources with B
different levels of skills
(A) HRM (B) HRP (C) P.M. (D) Forecasting
74) Through human resources planning ___________ and conflict can be avoided A
(A) duplication of efforts (B) duplication of errors
(C) duplication of work (D) None of these
75) Delphi Techniques is known as one of the _______ methods of forecasting human C
resources needs
(A) appraisal (B) evaluation (C) judgemental (D) assessment
76) The sixth and final step involved in human resource planning is ________ A
(A) Flow Model (B) Delphi Techniques
(C) Management judgement (D) Monitoring and control
77) In the absence of ____ , it becomes difficult to develop effective human resource B
plans
(A) Accurate data (B) Reliable data (C) Reliable information (D) Correct Figures
5 P.T.O.
78) The Manpower plans should contain provisions to expand or _______ human A
resource as per the need of the organisation
(A) down size (B) restrict (C) limitation (D) confined
79) Human Resource Planning should consider the _________ of employees when B
absorbed in the organisation
(A) treatment (B) behaviour (C) attitude (D) Intention
80) ____________ is the generating of applications or applicant for specific positions to be C
filled up in the organisation
(A) selection (B) Placement (C) Recruitment (D) Appointment
81) According to Bergmann and Taylor “Recruitment” is the process of locating, D
identifying and attracting ____________
(A) eligible employees (B) Qualified employees
(C) Skilled applicants (D) Capable applicants
82) Which of the following is not element of Internal factors affecting recruitment D
(A) size of the organisation (B) Recruiting Policy
(C) Image of organisation (D) unemployment situations
83) Which of the following is not a element of External factor affecting recruitment D
(A) Demographic factors (B) Labour Market
(C) Unemployment situation (D) Image of Job
84) There are __ main sources of Recruitment A
(A) Two (B) Four (C) Eight (D) Twelve
85) ____________ is known as Expensive and Time consuming process B
(A) Internal Sources (B) External Sources
(C) Direct appointment (D) Advertisement
86) The first step involved in the recruitment process is ________ C
(A) Manpower Planning (B) Human Resource Planning
(C) Recruitment Planning (D)Screening
87) Wrong or inappropriate ______________ is not welcome because it proves costly to the B
organisation
(A) Recruitment (B) Selection (C) Placement (D) Appointment
88) There are ____________ steps involved in a standard selection process D
(A) Four (B) Five (C) Six (D) Seven
89) Which of the following is not a test of Ability Test C
(A) Aptitude Test (B) Achievement Test (C) Attitude Test (D) Judgement
90) In the opinion of _________ training is any process by which attitudes skills and A
abilities of employees to perform specific jobs are improved
(A) Michael J Jucious (B) Michael Armstrong
(C) Edwin B. Flippo (D) Pigors and Myers
91) Which of the following is not a method of knowledge Based Method of Training D
(A) Lectures (B) Conferences/Seminars
(C) Programmed instructions (D) Management Games
6
92) Execute development is a continuous and ___________ process B
(A) Short (B) Life-long process (C) upto date (D) unending
93) There are ____ steps involved in Executive Development Process D
(A) Three (B) Four (C) Five (D) Six
94) Performance Appraised is a systematic way of judging the relative worth of an C
employee in performing his __________
(A) duty (B) Work (C) Task (D) Responsibility
95) Employee performance appraised also suffers from faulty managerial __________ D
(A) system (B) method (C) functions (D) assumptions
96) Incompetence is one of the cause of _________ B
(A) Promotion (B) Demotion (C) Retrenchment (D) Termination
97) Promotion is the _____________ movement of an employees within the organisation A
(A) vertical (B) Horizontal (C) upward movement (D) None of these
98) An Exit interview is a ___________ conducted with an individual who is separating A
from an organisation
(A) Survey (B) dialogue (C) talk (D) communication
99) Everything discussed during exit interview must be kept __________________ B
(A) open (B) confidential (C) secret (D) public
100) HR retain policies are that organisation follow to reduce _________________ C
(A) employee retrenchment (B) Employee Promotion
(C) Employee turnover (D) Employee retainment
**********
7 P.T.O.
TYBMS
Que. Semester- VI Ans.
E.6.1. : Introduction to Banking, Insurance (MCQ)
1 The word ‘Bank’ is said to be derived from _______ word “Bancus” B
(A) Italian (B) French (C) Greek (D) Latin
2 The modern banking system began with the opening Bank at England in___ B
(A) 1892 (B) 1694 (C) 1796 (D) 1869
3 ___________ was the first bank to be established in India in 1770 C
(A) Bank of India (B) Bank of Baroda
(C) Bank of Hindustan (D) State Bank of India
4 RBI became the first central bank of the country w.e.f.___________ A
(A) 01-04-1935 (B) 11-031938 (C) 01-04-1953 (D) 01-04-1934
5 On _____________ the Govt. of India took over ownership and control of 14 B
major banks in the country
(A) July 19, 1996 (B) July 19, 1969 (C) April 19, 1935 (D) April 21, 1934
6 State Bank of India was nationalized in _________ under SBI Act 1955 D
(A) 1956 (B) 1957 (C) 1958 (D) 1955
7 The concept of Local Area Banks was launched by __________ on 24.08.1967 B
(A) Govt. of India (B) Reserve Bank of India
(C) Central Bank of India (D) State Bank of India
8 Commercial Bank are organized on a _____________ system C
(A) Commercial base (B) Partnership firm
(C) Joint Stock company (D) None of these
9 Commercial bank performs variety of functions which may be broadly by A
grouped under two heads one is agency services and other is _____________
(A) utility services (B) Bank services
(C) Customer services (D) Deposit services
10 A __________ is basically a payment mechanism which allows the holder of the B
card to make purchases without cash payment
(A) Debit Card (B) Credit Card (C) Kisan Card (D) None of these
11 ATM stands for __________ C
(A) Any Time Money (B) Automatic Toll Machine
(C) Automatic Teller Machine (D) Auto Toller Machine
12 Kisan Credit Card are issued based on the ______ of agriculturists D
(A) Farm (B) Cultivation needs (C) Solvency (D) Landholding
13 While using a ___________ one is using one’s own money in the bank account A
(A) Debit Card (B) Credit Card (C) ATM Card (D) Kisan Credit Card
14 PIN stands for ____________ C
(A) Personal Index Number (B) Private Index Number
(C) Personal Identification Number (D) Postal Index Number
15 The first item appearing on the asset side of a commercial banks balance D
sheet is ___________
(A) Money at call (B) Bills Discounted
(C) Investment (D) Cash in hand
16 Liquidity means the capacity to produce _________ on demand D
(A) Bills (B) Cheque (C) Cash (D) Demand Draft
17 Urban Co-operative banks are registered under co-operative __________ of the B
respective state governments
(A) Banks Act (B) Societies Act (C) Organisation (D) Law
18 Urban Co-operative banks are required to maintain their SLR equipment D
to____________ per cent of NDTL
(A) 10% (B) 15% (C) 20% (D) 25%
19 At least ___________ directors with suitable banking experience should be A
present on the Board of Urban Co-operative Banks
(A) Two (B) Three (C) Four (D) Five
20 What is the expanded form of the term ALM used in banking sector ? B
(A) Asset Liability Maintenance (B) Asset Liability Management
(C) Asset Liability Manipulation (D) Asset Liability Maximisation
21 What is the full form of CBS ? A
(A) Core Banking Solution (B) Core Banking Software
(C) Core Banking System (D) Core Banking Service
22 What is the full form of CRR? B
(A) Cash Reserve Rate (B) Cash Reserve Ratio
(C) Cash Recession Ratio (D) Core Reserve Rate
23 The objective of ____________banks is to promote thrift among the people____ A
(A) Savings (B) Consumer (C) Co-operative (D) Commercial
24 ___________ is the type of banking system in which one big bank opens a large B
number branches throughout the country
(A) Unit Banking (B) Branch Banking
(C) Mixed Banking (D) Commercial Banking
25 ___________ refers to the system of banking under which all banking business A
is carried through a single banking office
(A) Unit Banking (B) Central Banking
(C) Savings Banking (D) Commercial Banking
26 ___________ deposits accepted from the community are the sources of funds for C
deposit banks
(A) Saving (B) Term (C) Demand (D) Fixed
27 ___________ Forms the base for co-operative movement in India B
(A) Co-operative Banks (B) Primary Credit Co-operative Societies
(C) State Co-operative Banks (D) Agricultural Co-operative Societies
28 The Regional Rural Banks (RRBs) were set up in the year _________ C
(A) 1976 (B) 1980 (C) 1975 (D) 1969
29 Primary Credit Co-operative Societies are at the level ___________ in three tier D
co-operative structure
(A) Top (B) Apex (C) Middle (D) Bottom
30 _____________ is the apex bank in rural and agricultural credit C
(A) RRB (B) SCB (C) NABARD (D) DCCBs
31 State Co-operative Banks (SCBs) works as the representative of _______ banks A
in the state
(A) Co-operative (B) Commercial (C) Regional Rural (D) District
32 When deposits are received on ____________ accounts the banker incur the B
obligation to repay the money together with an agreed rate of interest after
the expiry of fixed period
(A) Saving Deposit (B) Fixed Deposit
(C) Current Deposit (D) Recurring Deposit
33 Commercial bank ____________ the savings of the society C
(A) collect (B) increase (C) mobilize (D) reduces
34 Two main functions of a commercial bank may best be summarized as the A
borrowing and the ______________ of money
(A) Lending (B) Loan (c) Deposit (D) Mobilization
35 Interest is not payable on ____________ Deposits D
(A) Saving A/c (B) Recurring (C) Fixed (D) Current A/c
36 Urban co-operative Banks are required to channalise _________ per cent of B
total loans and advances towards priority sectors
(A) 50 (B) 60 (C) 70 (D) 75
37 Urban co-operative Banks are included in the ________ schedule of the RBI Act B
(A) First (B) Second (C) Third (D) Fourth
38 State Co-operative Agriculture and Rural Development Bank constitute the C
__________ tier of long term co-operative credit structure
(A) First (B) Second (C) Upper (D) Lower
39 Central Co-operative banks form the _____________ tier of co-operative credit D
institutions
(A) Upper (B) Lower (C) First (D) Middle
40 Primary Co-operative Agriculture and Rural Development Banks are the A
___________ layer of long term credit co-operatives
(A) Lowest (B) Highest (C) Middle (D) Topper
41 The Central Government Constituted a Task Force in ___________ to study the A
functioning of rural co-operative credit institutions
(A) April 1999 (B) May 2000 (C) April 2001 (D) June 2002
42 Branch licensing of central co-operative Banks need to be brought under the C
provisions of the _______________
(A) Co-operative Act (B) Co-operative Societies Act 1904
(C) Banking Regulation Act 1949 (D) Maharashtra State Co.op. Act
43 All Scheduled UCBs and non-scheduled USBs with deposit of Rs. ____________ D
crores and above now have to maintain investment in Govt. securities only in
SGL A/c
(A) 5 (B) 10 (C) 20 (D) 25
44 Commercial Banks have been meeting _____________ requirement of both B
priority sectors and non-priority sectors
(A) Legal (B) Working Capital (C) Loan (D) Deposit
45 Management of Bank Investment depends to a great extent on the A
management of _________________ of bank
(A) Liquidity (B) Cash position (C) Credit position (D) Deposits
46 ______________this types of asset is known as non-earning asset C
(A) Cash at bank (B) Money at call (C) Cash on hand (D) Investment
47 This is a service _______________ under which funds are transferred D
electronically over the telephone either nationally or internationally
(A) Debit Card (B) Credit Card (C) ATM Card (D) EFT service
48 Group banking and chain banking systems are commonly found in the ____ D
(A) Japan (B) Germany (C) Italy (D) United States of America
49 Insurance is defined as a Co-operative ______ C
(A) Instrument (B) Tool (C) Device (D) Means
50 Risk is _________ of a financial loss B
(A) Certainty (B) Uncertainty (C) guess (D) forecast
51 Insurance provides certainty of payment as the ______________ of loss A
(A) Uncertainty (B) Certainty (C) incurring (D) happening
52 The Uncertainty of loss can be reduced by better ________________ D
(A) Management (B) Organisation (C) Control (D) Planning & Administration
53 The Insurance is also defined as a _________ to accumulate B
(A) Safety device (B) Social device (C) insurer device (D) protection
54 The insurer charges __________ for providing the said certainty C
(A) Installment ( B) interest (C) premium (D) penalty
55 The main function of insurance is to provide __________ against the probable A
changes of loss
(A) Protection (B) Safeguards (C) Surety (D) Coverage
56 The insurance provides ______________ to the society D
(A) Finance (B) Facilities (C) Protection (D) Capital
57 The Insurance eliminates worries and inseries of losses at death and D
destruction of ________
(A) Assets (B) Machinery (C) Liability (D) Property
58 Insurance is a device to share the ______________ which might be fall on an B
individual or his family on the happening of special event
(A) financial risk (B) financial losses
(C) financial uncertainty (D) business risk
59 An insurer would be unable to ______________ all the losses from his own C
capital
(A) paid off (B) secure (C) compensate (D) paid
60 In ____________________ the purpose is not to make good the financial loss A
suffered
(A) Life Insurance (B) Fire Insurance
(C)Marine Insurance (D) Miscellaneous Insurance
61 The Insurer promises to pay a _______________ on the happening of an event D
(A) certain amount (B) compensation (C) loss amount (D) fixed sum
62 The Insurance serves indirectly to increase the productivity of _________ by C
eliminating worry and increasing initiative
(A) business (B) Insurance Company (C) Community (D) Govt.
63 Charity is given without ______ but insurance is not possible without premium B
(A) payment (B) consideration (C) risk (D) remuneration
64 The insured are _______ to share the loss of an individual by payment of a D
premium in advance
(A) obligatory (B) compulsory (C) liable (D) Co-operating
65 In case of __________ payment is mode when death occurs or the term of C
insurance is expired
(A) Fire Insurance (B) Marine Insurance
(C) Life Insurance (D) General Insurance
66 The property of insured is secured against loss on a fire in _______________ B
(A) Marine Insurance (B) Fire Insurance
(C) General Insurance (D) Life Insurance
67 The elements of protection and _________ are present only in case of life D
Insurance
(A) Safety (B) Security (C) risk (D) Investment
68 The business can obtain loan by pledging the policy as ________ for the loan A
(A) Collateral (B) Security (C) Mortgage (D) Hypothecation
69 Life Insurance provides loss of _______________ C
(A) Property (B) Land (C) Human Wealth (D) Machines
70 In business the risk may be defined as the danger of loss from ____ B
circumstances
(A) unexpected (B) unforeseen (C) uncertain (D) bad
71 Any risk is concerned with ________________ it is termed as a financial risk C
(A) economical loss (B) Accounting loss (C) Financial loss (D) Abnormal loss
72 Dynamic risks are the losses resulting from changes in the ____________ D
(A) business environment (B) social environment
(C) financial environment (D) economic environment
73 Static risks are not a source of _________ to society C
(A) Profit (B) income (C) gain (D) loss
74 Dynamic risk normally ___________ the society A
(A) benefit (B) profit (C) secured (D) useless
75 Fundamental risk also termed as a _____________ B
(A) foundation risk (B) group risk (C) particular risk (D) pure risk
76 Speculative risk means those risk which involve a situation where there is a C
possibility of ______________
(A) loss (B) danger (C) gain (D) profit
77 There are two main classes of risk one is uninsurable risk and second B
is______________
(A) Non insurable risk (B) Insurable risk
(C) Standard Risk (D) Sub standard risk
78 The definition of the life insurance contract is enlarged by section 2(ii) of the B
____________
(A) Indian Contract Act 1872 (B) Insurance Act 1938
(C) Company Act 1956 (D) Banking Regulation Act 1949
79 The Life Insurance requires that the principles of _________ should be D
preserved by both the parties
(A) at most good faith (B) material facts
(C) Duty of both parties (D) None of these
80 At most good faith says that there should be full and true disclosures of all C
the ______________facts
(A) Important (B) Essential (C) Material (D) Immaterial
81 The insurable interest in own life is __________ B
(A) limited (B) unlimited (C) confined (D) uncountable
82 The insurable interest must be present at the time of ______ D
(A) contract (B) Maturity (C) Expiry (D) Proposal
83 In ___________ the doctrine of proximate cause in not applied A
(A) Life Insurance (B) Marine Insurance
(C) Fire Insurance (D) General Insurance
84 The right of subrogation may be _________________by the insurer before C
payment of loss
(A) executed (B) implemented (C) exercised (D) applicable
85 The proposal for fire insurance can be made either ________ or in writing C
(A) orally (B) unwritten (C) verbally (D) None of these
86 Usually fore policies are issued for ___________ D
(A) Four Year (B) Two Year (C) Three Year (D) One Year
87 Motor Insurance Policy is designed to med the requirements of _________ C
(A) Insurance Act 1938 (B) Contract Act 1872
(C) Motor Vehicle Act 1939 (D) Company Act 1956
88 Health Insurance has been realized as an __________ for the health of the B
company
(A) device (B) instrument (C) weapon (D) means
89 There is need of _________ health insurance product that may protect family A
savings in case of unexpected medical charges
(A) Well designed (B) Well prepared (C) Well planned (D) proper
90 The marine insurance policy is issued only when the contract has been____ D
(A) completed (B) entered (C) registered (D) finalized
91 Voyage policy is issued to cover a particular ____ from one port to another C
and from one place to another
(A) travelling (B) transport (C) Voyage (D) distance
92 An annuity is a ______________ level payment made in exchange as the purchase B
money for the remainder of the life time of a person
(A) annual (B) periodical (C) yearly (D) end
93 Annuity contract is just __________ of the insurance contract D
(A) same (B) equal (C) contract (D) opposite
94 _______this type of annuity is most beneficial to those who have no dependant A
(A) Single Life annuity (B) Multiple Life annuity
(C) Immediate annuity (D) Deferred annuity
95 ____________ commences immediately after the end of the first income period C
(A) Annual Due (B) Deferred Annuity
(C) Immediate Annuity (D) Single Life Annuity
96 In this _________ more than one life is contracted B
(A) Single Life Annuity (B) Multiple Life Annuity
(C) Deferred Annuity (D) Life Annuity
97 Automobile insurance is against loss arising from destruction or damages to C
an _____________
(A) Uninsured Motor Vehicle (B) Motor Car
(C) Insured Motor Vehicle (D) Truck
98 An Annuity is an ________________ product issued by an insurance company. B
(A) Insurance (B) Investment (C) Annual (D) Commercial
99 Micro Finance may be defined as ___________ for poor and low income clients B
(A) Small Loan (B) Financial services
(C) Commercial services (D) Short term loan
100 The term ‘Micro Credit’ refers to very ____________ for unsalaried borrowers C
(A) Short term loan (B) Long term loan
(C) Small Loan (D) Financial services
Kavayitri Bahinabai Chaudhari North Maharashtra University, Jalgaon
Bachelor of Management Studies (E-Commerce) (B.M.S.- E-Comm.) (June-2017)
Multiple Choice Question Bank
Semester – VI
Subject Name: E- 6.5 PHP Scripting and MySQL
Note: Answers are given at the end of questions.
1. PHP Stands for _______.
A. PHP Hypertext Processor. B. PHP Hyper Markup Processor.
C. PHP Hyper Markup Preprocessor. D. PHP Hypertext Preprocessor.
2. PHP is an example of ______ scripting language.
A. Server-Side. B. Client-Side.
C. Browser-Side. D. In-Side.
3. Who is known as father of the PHP?
A. Rasmus Lerdorf. B. Willam Makepiece.
C. Drek Kolkevi. D. List Barely.
4. Which of the following is not true?
A. PHP can be used to develop web B. PHP makes a website dynamic.

applications.
C. PHP applications cannot be complied. D. PHP cannot be embedded into HTML.
5. PHP scripts are enclosed within _______.
A. <php>…….</php>. B. <?php……?>.
C. ?php……?php. D. <p>……</p>.
6. Which of the following is not a predefined PHP variable?
A. $get B. $ask
C. $request D. $post
7. When you need to obtain the ASCII value of a character which of the following function will you
apply in PHP?
A. chr( ). B. asc( ).
C. ord( ). D. val( ).
8. Which of the following method sends input to a script via URL?

A. GET. B. POST.
C. BOTH. D. None.
9. Which of the following returns a text in title case from a variable?
A. ucwords($var). B. upper($var).
C. toupper($var). D. ucword($var).
10. Which of the following returns the number of characters in a string variable?
A. count($variable). B. len($variable).
C. strcount($variable). D. strlen($variable).
11. How many basic data types are offered by PHP?
A. 5 B. 6
C. 7 D. 8
12. The floatval( ) function will convert your argument into
A. Integer. B. Float.
C. String. D. None.
13. Which one is not a data type in PHP?
A. Void B. Resources.
C. Objects. D. Null.
14. Which type is used to convert float type into integers?
A. Ceil( ). B. Floor( ).
C. Round( ). D. All of them.
15. Exceptions are caught and handled using
A. Try control construct. B. Catch control construct.
C. Exception control construct. D. Both A and B.
16. If you would like to read a file character by character which function do you use?
A. fopen( ). B. fread( ).
C. fgetc( ). D. file( ).
17. Rmdir( directory-name) function is used for
A. Removing files directory. B. Removing all old directories.
C. Removing empty directories. D. All of them.
18. Fclose( $fd ) is an example of
A. File write function. B. File close function.
C. File read function. D. File open function.
19. Which symbol is used to read and write even if the file doesn’t exists already?
A. a+ B. r+
C. w+ D. w-
20. The feof( ) function is used in
A. While loop. B. For loop.
C. Switch statement. D. All of them.
21. $GOBAL, $_GET, $_POST, $_REQUEST, $_SERVER, $_SESSION, $_COOKIE, $_FILES are
all examples of
A. Super Array. B. Global Variables.
C. Local Variables. D. None
22. A sequence of characters that is treated as a unit is called as
A. Arrays. B. Functions.
C. Methods. D. Strings.
23. The ltrim( ) method / function returns its string argument with
A. Leading blank spaces removed. B. Trailing blank spaces removed.
C. Numerical values. D. None of them.
24. Member variables of a class is also known as
A. Attributes. B. Property.
C. Instance. D. All of them.
25. When function have same prototype in base class as well as in derive class the function is called
A. Overloading function. B. Overriding function.
C. Chained function. D. All of them.

26. Methods are also known as __________.
A. Member Function. B. Instances.
C. Objects. D. Constructors.
27. Defining a class in terms of another class and the specifying only the things that you want to be
different from that class, is called as _______.
A. Encapsulation. B. Inheritance.
C. Objects. D. Instances.
28. An individual instance in OOP is called as
A. Class. B. Function.
C. Object. D. Constructor.
29. Extends clause is used for
A. Inheriting a class from another class. B. Function Extension.
C. Creating Constructor. D. None of the above.
30. PHP offers no support for __________.
A. HTML. B. JavaScript.
C. Multiple Inheritance. D. All of the above.
31. An abstract class is one that cannot be instantiated but _________.
A. Only Inherited. B. Only Declared.
C. Only Copied. D. All of the above.
32. The protected members of a class are accessible to the class in which _________.
A. It is not declared. B. It is declared.
C. It is moved. D. None of the above.
33. Encapsulation is _______.
A. Data Hiding. B. Defining classes.
C. Data Removing. D. None.
34. Derived class is also known as ________.
A. Parent Class. B. Sub Class.
C. Child Class. D. Both B and C.

35. Constructor function must have the same name as the name of ______.
A. Class. B. Object.
C. Method. D. Instance.
36. PHP supports ______.
A. Public variables. B. Private variables.
C. Protected variables. D. All of them.
37. Parent class is a _______.
A. Base Class. B. Super Class.
C. Derived Class. D. Both A and B.
38. Destruct( ) function is used to call a ______.
A. Constructor. B. Destructor.
C. Method. D. Object.
39. When a session is active, PHP provides a special constant called
A. SID B. CID
C. DID D. None
40. A special kind of a file that is located in the filesystem of your browser and can be read and write
from the web server is call as
A. Session B. Cookies
C. Script D. All of them
41. In PHP, cookies are set by using the
A. setcookie( ) function. B. set( ) function.
C. cookie_set( ) function. D. none of above.
42. What kind of session will maintain its identity as long as user stays within a site?
A. Cookie based session. B. Variable based session.
C. Session. D. None.
43. A period of time during which a particular person, views a number of web pages at a particular
machine is called as
A. Session. B. Cookies.
C. Parsing. D. None of them.
44. A function that takes no argument and returns a string, which is unique key corresponding to a
particular session
A. Session_name( ). B. Session_params( ).
C. Session_Id( ). D. Id( ).
45. Name, value, expire, path, httponly, domain, secure all of these are arguments of
A. session( ) function. B. setcookie( ) function.
C. reset_cookie( ) function. D. none of them.
46. To initiate a session which function is used
A. start( ). B. s_start( ).
C. session_start( ). D. session_str( ).
47. If you want to free all the variables in the session, which function will you use
A. session_destroy( ). B. session_unset( ).
C. set( ). D. all of them.
48. Which PHP function offers to send raw arbitrary HTTP headers?
A. Setcookie( ). B. Set_header( ).
C. Header( ). D. All of them.
49. Session_unset( ) takes
A. 1 Argument. B. 2 Arguments.
C. 3 Arguments. D. No arguments.
50. HTTP protocols by which browsers talk to the web server is
A. Valueless. B. Stateless.
C. Useless. D. None of above.
51. The meaning of super global arrays is it can be
A. Referenced inside a function. B. Referenced outside a function.
C. Used without declaring global first. D. All of them.

52. The secure( ) argument in setcookie function returns result
A. In Integer form. B. In String form.
C. In Boolean form. D. None of them.
53. PHP.ini file can be viewable by calling
A. info( ) function. B. ini_file( ) function.
C. phpinfo( ) function. D. php_ini( ) function.
54. Which logical operator has higher precedence from the following?
A. && B. !
C. || D. xor
55. Test-Expression ? Yes-Expression : No-Expression is an example of
A. Logical Operator. B. Assignment Operator.
C. Ternary Operator. D. None of them.
56. Unbounded loops repeats until some condition becomes
A. TRUE. B. FALSE.
C. Zero. D. Both A and B.
57. A way of wrapping up a chunk of code and giving that chunk a name so that we can use it later in
just one line of code is called as
A. Class. B. Constructor.
C. Function. D. Branching.
58. The most complicated loop structure is
A. While B. Do…while.
C. For. D. None of above.
59. Try( ) and Catch( ) functions are used for
A. Exception Handling. B. Static Variables.
C. Global Variables. D. Local Variables.
60. By default scope of variable which is defined inside a function is?
A. Global. B. Local.
C. Restricted. D. None.
61. For using multiple possible branches based on a single value which branching style do you prefer?
A. If Statement. B. Switch Statement.
C. While Statement. D. Do…While Statement.
62. Global $count; this statement indicates what?
A. A variable is declared with that name of B. A constant is defined.

global.
C. Count variable is declared. D. Count variable declaration with global scope.
63. The two broad types of control structure are Branching and
A. Looping. B. Coding.
C. Structuring. D. None of them.
64. The two main structures of branching are
A. If and switch. B. If and do…while.
C. If and for. D. None of the above.
65. Which of the following operators are supported by PHP?
A. AND B. OR, Exclusive OR
C. NOT D. All of Above.
66. Loops that iterate for fixed number of times is called
A. Unbounded Loops B. Bounded Loops.
C. While Loop. D. For Loop.
67. Which loop evaluates the condition as boolean, if it is true, it executes the statements and when it is
false it will terminate?
A. Do…while loop. B. For each loop.
C. While loop. D. All of above.
68. The basic syntax for calling a function is
A. Function_name( ExpressionN ) B. (ExpressionN : Function_Name )
C. (ExpressionN) D. None of them.
69. The numerical type in PHP is Integer and
A. String. B. Unsigned Short Integer.

C. Single-precisions. D. Double.
70. A simple mathematical function in PHP that takes a single argument and returns a nearest integer is
a
A. Round( ). B. Abs( ).
C. Max( ). D. Floor( ).
71. A simple mathematical function in PHP that takes a single argument and returns the largest integer
that is less than or equal to that argument, is a
A. Ceil( ). B. Max( ).
C. Round( ). D. Floor( ).
72. A simple mathematical function in PHP that takes a single argument and returns the Smallest integer
that is less than or equal to that argument, is a
A. Ceil( ). B. Min( ).
C. Round( ). D. Floor( ).
73. The decrement operator is denoted by
A. ++ B. - -
C. %% D. //
74. Floating point numbers are also known as
A. Longs B. Integers
C. Doubles D. Characters
75. Integers are also known as
A. Short Integers. B. Double.
C. Floating Point Numbers. D. Long.
76. Abs( ) stands for
A. Arithmetic Values. B. Absolute Values.
C. Assignment Values. D. None of them.
77. Comparison operators have higher precedence than
A. Arithmetic Operators. B. Assignment Operators.

C. Boolean Operators. D. All of them.
78. The operator = = = is true if its two arguments are exactly
A. Equal B. Opposite
C. Has the same type D. Both A and C
79. The increment operator is denoted by
A. ++ B. --
C. // D. %%
80. +=, -=, *=, /=, %= all are example of
A. Comparison Operator. B. Assignment Operator.
C. Arithmetic Operator. D. Logical Operator.
81. The operator that take simple values as arguments and evaluate it either as TRUE or FALSE.
A. Comparison Operator. B. Assignment Operator.
C. Increment Operator. D. Decrement Operator.
82. The modulus operator % in PHP only accepts
A. Doubles B. Integer’s arguments.
C. Floating arguments. D. String arguments.
83. Which operator returns true if the two arguments are not equal or not of same type?
A. = = = B. - - -
C. ! = = D. +++
84. Floor( ), Ceil( ), Round( ), Max( ), Min( ), Abs( ) all functions are example of
A. Basic Math Functions. B. String Functions.
C. File and Directory Functions. D. None of them.
85. The operators *, /, % have higher precedence than
A. Comparison Operators. B. Boolean Operators.
C. +, - Operators. D. None.
86. The increment operator have two flavors one is Post-Increment and
A. Pre-Increment. B. Post-Decrement.
C. Last-Increment. D. Pre-Decrement.
87. The ceiling function is denoted by
A. Cel( ). B. Ceiling( ).
C. Ceil( ). D. Cell( ).
88. PHP does automatic conversion of
A. Functions. B. Numerical Types.
C. Arrays. D. None of above.
89. By truncation the module operator % in PHP changes the double into
A. String. B. Characters.
C. Integers. D. Boolean.
90. PHP is sometimes
A. Case Sensitive. B. Used as a programming language.
C. Used for Front Designing. D. All of them.
91. Constants in PHP are not denoted by $ sign but they are differentiated by
A. Lowercase Letters. B. Uppercase Letters.
C. Asterisk Sign (*). D. Hash Sign (#).
92. All variables in PHP are denoted by
A. Dollar Sign ($). B. Hash Sign (#).
C. Asterisk Sign (*). D. Percent Sign (%).
93. Every statement and expression in PHP is terminated by
A. Semicolon (;). B. Slash (/).
C. Asterisk (*). D. Colon (:).
94. Although PHP is embedded with HTML but PHP syntax only applies in
A. HTML Tags. B. PHP Tag.
C. CSS Tag. D. None of them.

95. These #My PHP File and //My PHP File statements are example of
A. Single line comment. B. Multi line comment.
C. Variable declaration. D. None of above.
96. The statement /* My PHP File */ is an example of
A. Single line comment. B. Multi line comment.
C. Variable declaration. D. None of the above.
97. All variables in PHP are assigned with the
A. Hash Sign (#). B. Dollar Sign ($).
C. Assignment Sign (=). D. None of above.
98. Which of the following databases has PHP supported
A. Oracle Database. B. SQL.
C. SQL+ D. MySQL.
99. Which of the following statements is used to create a table?
A. CREATE TABLE table-name( Column- B. CREATE table-name( Column-Name,

Name, Column-Type); Column-Type);
C. CREATE TABLE table-name( Column- D. CREATE table-name( Column-Type,

Type, Column-Name); Column-Name);
100. Which of the following lines need to be uncommented or add in the php.ini file so as to enable
mysqli extension?
A. extension=php_mysqli.dll B. extension=mysql.dll
C. extension=php_mysqli.dl D. extension=mysqli.dl
101. Which of the following statements initiates the mysqli class?
A. Mysqli=new mysqli( ). B. $Mysqli=new mysqli( ).
C. Mysqlinew.mysqli( ). D. $Mysqlinew.mysqli( ).
102. Which one of the following statements can be used to select the database
A. $mysqli=select_db(‘database-name’); B. mysqli=select_db(‘database-name’);
C. mysqliselect_db(‘database-name’); D. $mysqliselect_db(‘database-name’);
103. Which one of the following method can be used to diagnose and display information about a MySQL
connection error?
A. connect_errno( ). B. connect_error( ).
C. mysqli_connect_errno( ). D. mysqli_connect_error( ).
104. Which one of the following statements should be used to include a file?
A. #include ‘file-name’; B. include ‘file-name’;
C. @include ‘file-name’; D. #include;
105. Which one of the following methods is responsible for sending query to the database?
A. query( ). B. send_query( ).
C. sendquery( ). D. query_send( ).
106. Which one of the following methods recuperates any memory consumed by a result set
A. destroy( ). B. remover( ).
C. alloc( ). D. free( ).
107. Which one of the following method is used to retrieve the number of rows affected by an INSERT,
UPDATE or DELETE query?
A. num_rows( ). B. affected_rows( ).
C. changed_rows( ). D. new_rows( ).
108. In PHP in order to access MySQL database you will use
A. mysqlconnect( ) function. B. mysql-connect( ) function.
C. mysql_connect( ) function. D. sql_connect( ) function.
109. The ________ statement is used to delete the table.
A. DROP TABLE. B. DELETE TABLE.
C. DEL TABLE. D. REMOVE TABLE.
110. Use the ________ to delete the data inside the table, and not the table itself?
A. DROP TABLE B. DELETE TABLE
C. TRUNCATE TABLE D. REMOVE TABLE

1. D 26. A 51. D 76. B
2. A 27. B 52. C 77. B
3. A 28. C 53. C 78. D
4. D 29. A 54. B 79. A
5. B 30. C 55. C 80. B
6. B 31. A 56. D 81. A
7. B 32. B 57. C 82. B
8. A 33. A 58. C 83. C
9. A 34. D 59. A 84. A
10. D 35. A 60. B 85. C
11. D 36. D 61. B 86. A
12. B 37. D 62. D 87. C
13. A 38. B 63. A 88. B
14. D 39. A 64. A 89. C
15. D 40. C 65. D 90. A
16. C 41. A 66. B 91. B
17. C 42. B 67. C 92. A
18. B 43. A 68. A 93. A
19. C 44. C 69. D 94. B
20. A 45. B 70. A 95. A
21. B 46. C 71. D 96. B
22. D 47. B 72. A 97. C
23. A 48. B 73. B 98. D
24. D 49. D 74. C 99. A
25. B 50. B 75. A 100. A

101. B 105. A 109. A 113.
102. D 106. C 110. C 114.
103. C 107. B 111. 115.
104. B 108. C 112. 116.

Kavayitri Bahinabai Chaudhari North Maharashtra University, ANS
Jalgaon
Bachelor of Management Studies (E -Commerce) (B.M.S.- E-
Comm.) (June-2017)
Semester – VI
Subject Name: E 6.4 Enterprise Resource Planning
1) Which of the following describes an ERP system? D

A) ERP systems provide a foundation for collaboration between
departments
B) ERP systems enable people in different business areas to
communicate
C) ERP systems have been widely adopted in large organisations to store
critical knowledge used to make the decisions that drive the organisation's
performance
D) All of the above
2) What is at the heart of any ERP system? D
A) Information
B) Employees
C) Customers
D) Database
3) What must a system do to qualify as a true ERP solution? A
A) Be flexible
B) Be modular and closed
C) Extend within the company
D) All of the above
4) Which of the following is a reason for ERPs explosive growth? D
A) ERP is a logical solution to the mess of incompatible applications
B) ERP addresses the need for global information sharing and reporting
C) ERP is used to avoid the pain and expense of fixing legacy systems
D) All of the above
5) Which of the following occurs when everyone involved in sourcing, D
producing, and delivering the company's product works with the same
information?
A) Eliminates redundancies
B) Cuts down wasted time
C) Removes misinformation
D) All of the above
6) What are several different types of software, which sit in the middle of and A
provide connectivity between two or more software applications?
A) Middleware
B) Enterprise application integration middleware
C) Automated business process
D) e-business infrastructure
1 P.T.O.
7) Who are the primary users of SCM systems? D
A) Sales, marketing, customer service
B) Accounting, finance, logistics, and production
C) Customers, resellers, partners, suppliers, and distributors
D) All of the above
8) What are the primary business benefits of an ERP system? C
A) Sales forecasts, sales strategies, and marketing campaigns
B) Market demand, resource and capacity constraints, and real-time
scheduling
C) Forecasting, planning, purchasing, material management,
warehousing, inventory, and distribution
D) All of the above
9) Who are the primary users of ERP systems? B
A) Sales, marketing, customer service
B) Accounting, finance, logistics, and production
C) Customers, resellers, partners, suppliers, and distributors
D) All of the above
10) _________ handling and sharing has become a vital process for efficient C
and effective working of any organisation.
A) Material
B) Resource
C) Information
D) Database
11) ________ became the fundamental concept of production management B
and control.
A) BOM
B) MRP
C) ERP
D) MRP II
12) In the _________, ERP packages were targeted at the manufacturing B
industry.
A) 1970’s
B) 1990's
C) 1980’s
D) 1960’s
13) The _________ should plan well and execute perfectly the B
implementation of ERP.
A) Organisation
B) System developers
C) Vendors
D) Top Management
14) Which is one of the most critical steps in the ERP implementation? B
A) Creation of Organisational Model
B) Creation of Integrated Data Model
C) Creation of Business Model
D) Creation of Data Model
2
15) What is one of the key resources of every organisation, in today’s B
competitive business environment?
A) Employee
B) Information
C) ERP
D) Database
16) When a customer needs to check the performance of the company before C
he places an order, which department has to be in a position to provide the
necessary information?
a. Production
b. Quality
c. Marketing
d. Finance
17) In an integrated data model, what gives a snapshot of the organisation at B
any given time?
A) ERP
B) Database
C) Management
D) MIS
18) OLAP stands for: A
A) On-Line Analytical Processing
B) On-Line Account Processing
C) On-Line Arithmetic Processing
D) On-Line Application Processing
19) Data mining is the process of identifying valid, new, potentially useful, and C
ultimately clear ______________ from databases.
A) Decision
B) Strategies
C) Information
D) Account
20) EIS stands for: C
A) Executive Interaction System
B) Executive Interconnecting Systems
C) Executive Information Systems
D) Executive Instrumental Systems
21) DSS is quite _______________ and is available on request. d
A) Structured
B) Non-structured
C) Semi-structured
D) Unstructured
22) ERP system is built on a ____________ utilising a common computing A
platform
a. Centralised database
b. Individual databases
c. Modular databases
d. Centralised layout
3 P.T.O.
23) NPV is the abbreviation of B
a. Net Present Variation method
b. Net Present Value method
c. Neutral Present Value method
d. Net Preventive Value method
24) ERP vendors usually design their systems around standard business Cc
processes, based upon ____________________
a. Business standards
b. Global standards
c. Best business practices.
d. Best profitable standards
25) The _______ module's internal functions do not directly interact with the B
data or processes of other modules.
a. Finance
b. Quality Management
c. Sales and Distribution
d. Plant Maintenance
26) Which among the following systems can be assigned to a cost centre D
directly which illustrates the interface to the cost accounting system?
a. FAPA
b. Purchasing
c. Sales and Distribution
d. CASO
27) Which system provides the foundation for creating concurrent business C
processes across the supply chain and achieving Return on Assets (ROA)
improvement?
a. Finance
b. Inventory
c. Manufacturing
d. Sales
28) The processes described in the quality manual can be implemented and A
automated in the EDP system. Here what does EDP stand for?
a. Electronic Data Processing
b. Electronic Dictionary Project
c. Electrical Data Processing
d. Employee Development Plan
29) What is the key to MRP? C
a. Quantity of requirements for components are based upon the structure
of the Bill of Material.
b. Production of requirements for components are based upon the
structure of the Bill of Material.
c. Time-phasing of requirements for components are based upon the
structure of the Bill of Material.
d. Capacity of requirements for components are based upon the structure
of the Bill of Material
4
30) During the 80s, tools were developed to assist the planning of: A
a. Production levels
b. Priority planning system
c. Capacity requirements
d. Planning functions
31) Complete the sentence: MRP-II systems provide… B
a. Information that is useful to all functional areas and encourage cross-
functional interaction.
b. Information with cost data.
c. Information that can be used for other company functions.
d. Accurate inventory information
32) ERP is restricted to being a _________operations system in the country. D
a. Finance
b. Budgeting modules
c. Manufacturing
d. Transaction-oriented
33) ________________ allow companies to enter requirements for various B
types of items.
a. Purchase order
b. Purchase requisitions
c. Invoice
d. General ledger
34) What is EDI? D
a. Electronic Data Interface
b. Exchange Data Interchange
c. Exchange Data Interface
d. Electronic Data Interchange
35) _________ module supports the entire sales and purchase processes from A
start to finish.
a. Order management
b. Sales management
c. Purchase management
d. Master Data Management
36) ___________evaluates whether or not customer contract agreement are D
being met.
a. Purchase order management
b. Sales order management
c. Master data management
d. Warehouse management
37) ____________ maintains reports of warehouse supplies. B
a. ERP financial module
b. ERP Inventory software module
c. ERP Resource module
d. ERP verification module
38) Web ERP is suitable for ____________ . A
a. Both small and big organisations
b. Only big organisations
c. Medium scale organisations
d. Only small organisations
5 P.T.O.
39) RFP stands for ____________________ . D
a. Request For Productivity
b. Request For Profits
c. Request For Processing
d. Request For Proposal
40) Installing ERP Inventory systems is ____________ . C
a. Simple
b. Trouble free
c. Complex
d. Cost effective
41) In recent years, CRM has become a primary component of: B
a. ERP vendors
b. ERP software solutions.
c. CRM software
d. CRM solutions
42) ____________is the most common operating system for running CRM A
software
a. UNIX
b. Windows NT
c. Windows Vista
d. Windows XP
43) . __________ module keeps track of liquidation process. C
a. Market management module
b. Liquidation module
c. Treasury module
d. Enterprise management module
44) ____________ system maintains employees information in graphical A
format.
a. Employee master data
b. Personnel administration
c. Payroll accounting
d. Benefits administration
45) As processes become more automated and efficient, D
a. It is best to treat ERP as an investment as well as a cost-cutting
measure.
b. It is not best to treat ERP as an investment as well as a cost-cutting
measure.
c. It is best to treat ERP as an disinvestment as well as a cost-cutting
measure.
d. It is best to treat ERP as an investment but not as a cost-cutting
measure
46) ETO means A
a. Engineer-to-Order
b. Engineer-to-Offer
c. Enterprise-to-Order
d. Enterprise-to-Offer
6
47) The vendor should have a _______, who must constantly interact with the A
implementation team.
a. Liaison officer
b. Project Supervisor
c. Project Manager
d. Implementation co-ordinator
48) Demand for a given item is said to be dependent if D
A. the item has several children
B. there is a deep bill of materials
C. the finished products are mostly services (rather than goods)
D. there is a clearly identifiable parent
49) Dependent demand and independent demand items differ in that D
A. for any product, all components are dependent-demand items
B. the need for independent-demand items is forecasted
C. the need for dependent-demand items is calculated
D. all of the above are true
50) A master production schedule specifies C
A. the financial resources required for production
B. what component is to be made, and when
C. what product is to be made, and when
D. the labor hours required for production
51) The ______ is(are) the MRP input detailing which end items are to be A
produced, when they are needed, and in what quantities.
A. master production schedule
B. gross requirements
C. inventory records
D. assembly time chart
52) 5. A master production schedule contains information about B
A. quantities and required delivery dates of all sub-assemblies
B. quantities and required delivery dates of final products
C. inventory on hand for each sub-assembly
D. inventory on hand for each final product
53) In continuous (make-to-stock) operations, the master production schedule A
is usually expressed in terms of
A. end-items
B. modules
C. kits
D. customer orders
54) . In job shop (make-to-order) operations, the master production schedule is D
usually expressed in terms of
A. end-items
B. modules
C. kits
D. customer orders
7 P.T.O.
55) The ______ is the input to Materials Requirements Planning which lists the A
assemblies,
subassemblies, parts and raw materials needed to produce one unit of
finished product.
A. bill of materials
B. net requirements chart
C. inventory records
D. assembly time chart
56) A bill of materials lists the C
A. times needed to perform all phases of production
B. production schedules for all products
C. components, ingredients, and materials required to produce an item
D. operations required to produce an item
57) The bill of materials contains information necessary to A
A. convert (explode) net requirements at one level into gross requirements
at the next level
B. calculate quantities on hand and on order
C. convert gross requirements into net requirements
D. place an order to replenish the item
58) ERP is an acronym for D
A. Enterprise Retirement Planning
B. Enterprise Relationship Planning
C. Enterprise Recorder Planning
D. Enterprise Resource Planning
59) What is at the heart of any ERP system? D
A. Information
B. Employees
C. Customers
D. Database
60) What must a system do to qualify as a true ERP solution? A
A. Be flexible
B. Be modular and closed
C. Extend within the company
D. All of the above
61) Who are the primary users of SCM systems? C
A. Sales, marketing, customer service
B. Accounting, finance, logistics, and production
C. Customers, resellers, partners, suppliers, and distributors
D. All of the above
62) What are the primary business benefits of an ERP system? C
A. Sales forecasts, sales strategies, and marketing campaigns
B. Market demand, resource and capacity constraints, and real-time scheduling
C. Forecasting, planning, purchasing, material management, warehousing,
inventory, and distribution
D. All of the above
8
63) The ______ should be a replica of the organisation’s _______ processes. A
A. MIS, Business
B. ERP, Financial
C. MIS, Financial
D. ERP, Business
64) The _______ should plan well and execute perfectly the implementation of ERP B
A. Organization
B. System Developers
C. Vendors
D. Top management
65) ERP system is built on a _______ utilizing a common computing platform A
A. Centralised databases
B. Individual databases
C. Modular databases
D. Centralized layout
66) What is the first phase of ERP implementation? B
A. Project planning phase
B. Pre-evaluation screening
C. Package evaluation
D. Gap analysis
67) Which of the following is a part of organization? D
A. People
B. Common goal
C. Resources
D. All of the above
68) Which of the following are the ERP technologies? D
A. BPR
B. Supply Chain Management
C. Data Mining
D. All of the above
69) DSS is a part of Computer Based Information System (CBIS) A
A. True
B. False
C. Can’t say
D. None of above
70) Out of the following, which is not a purpose of gap analysis? D
A. A gap analysis is how an organization examines its current
performance with its target performance.
B. A gap analysis can be useful when companies aren't using their
resources, capital, or technology to their full potential.
C. By defining the gap, a firm's management team can create a plan of
action to move the organization forward and fill in the performance
gaps.
D. None of the above.
71) Which functional role does IT not play in SCM? A
A. Collaboration and coordination
B. Transaction execution
C. Performance measurement and reporting
D. Supply chain restructuring
9 P.T.O.
72) DSS in a supply chain helps manager in taking decisions of ______ D
A. Strategic level
B. Tactical level
C. Operational level
D. Both A and B
73) Process, people and ______ are the three pillars of ERP implementation. B
A. Information
B. Technology
C. Information technology
74) Poor project management and technical difficulties are the two main factors A
of failure of ERP.
A. True
B. False
C. Can’t say
D. May be
75) The success of the ERP implementation depends on _____ C
A. Implementation team
B. Education and Training
C. Both A and B
D. Neither A nor B
76) ERP and E-Commerce both are same. B
A. The statement is TRUE
B. The statement is FALSE
C. The statement is irrelevant
D. Can’t say
77) Enterprise resource planning was developed in: A
A. 1970
B. 1940
C. 1980
D. 1960
78) Which one of the following is a success factor of ERP system? D
A. Project planning
B. Architectural design
C. Phased approach
D. All of the above
79) Which one of the following is not a myth about ERP? C
A. ERP means more work and procedures
B. ERP makes many employees redundant
C. ERP integrate and automate organization processes
D. ERP is the sole responsibility of management
80) Which one of the following is not a benefit of an ERP system? D
A. Information integration
B. Better customer satisfaction
C. Use of latest technology
D. Program management
10
81) Which system is used to support decision makers? B
A. MRP
B. DSS
C. KDD
D. SCM
82) ERP is short form of ______ A
A. Enterprise Resource Planning
B. Enterprise Relationship Planning
C. Entire resource Planning
D. Enterprise Research Planning
83) What is the term for incremental changes to processes in an organisation A
using information technology?
A. Business Process Improvement
B. Business Process Reengineering
C. Business Process Change
D. Business Process Advance
84) What is the term for forcing people to accept change? D
A. Conditioning
B. Conversion
C. Convincing
D. Coercion
85) GIS stands for C
A. Geographic Information System
B. Generic Information System
C. Geological Information System
D. Geographic Information Sharing
86) GIS uses the information from which of the following sources? B
A. Non- spatial information system
B. Spatial information system
C. Global information system
D. Position information system
87) Which of the following are key application areas of GIS? D
A. Transport
B. Astronomy
C. Commerce and business
D. All of the above
88) Which of the following are the components of GIS? D
A. Internet connection
B. Spatial data
C. Appropriate GIS software
89) Three R’s of reengineering are _____, _____ and _____ . C
A. Reprocess, Rapidly, Reaction
B. Rethink, Resign, Retool
C. Rethink, Redesign, Retool
D. None of the above
11 P.T.O.
90) What is the following is an input to material requirement planning? A
A. Bill of material
B. Work orders
C. Master production schedule
D. All of the above
91) A bill of materials lists the C
A. times needed to perform all phases of production

B. production schedules for all products
C. components, ingredients, and materials required to produce an item
D. operations required to produce an item
92) Which of the following is not an advantage of ERP systems? D
A. Today’s ERP systems can cover a wide range of functions and

integrate them into one unified database.
B. Ability to customize an organization’s requirements.
C. Ability to integrate business operations with accounting and financial
modules.
D. Ability to generate more sales.
93) Which of the following is not a feature of sales and distribution module? C
A. Following are some of the Key features of Sales and Distribution
Module: Updating Organization Structure (creation of new company
and other sales & distribution related components)
B. Assigning Organizational Units (Assignment of individual
components like company code to company, sales organization to
company code, distribution channel to sales organization, etc.)
C. Updating payroll details.
D. Setting up sales document types, billing types, and tax-related
components.
94) Which of the following is not the sales & distribution process? C
A. Sales order
B. Material delivery
C. Purchase requisition from production department
D. Billing
95) Which of the following is a main characteristic of Integrated ERP System? B
A. Separate data maintenance by each department
B. Centralized Database
C. No direct inter department communication
96) The objective in developing an ERP module is ______ D
A. To maintain the desired level of customer service by maintaining
finished goods inventory levels or by scheduling to meet customer
delivery requirements.
B. To make the best use of material, labor and equipment
C. To maintain inventory investment at the required level
12
97) A master production schedule specifies C
A. The financial resources required for production
B. What component is to be made, and when
C. What product is to be made, and when
D. The labor hours required for production
98) Which of the following is not a part of an ERP implementation? D
A. Vendor representatives
B. Employee team
C. Consultants
D. Customers
99) Which of the following is not a part of an organization? D
A. People
B. Common goal
C. Resources
D. All of the above
100) One of the advantages of an ERP system is that the customization process B
is minimal.
A. True
B. False
13 P.T.O.
Kavayitri Bahinabai Chaudhari North Maharashtra University,
Jalgaon
Bachelor of Management Studies (E-Commerce)
(B.M.S.- E-Comm.) (June-2017)

Semester – VI
Subject Name: E- 6.3 Introduction to Information System Audit
ANS
1) ISA stands for _____ A
A. Information System Audit
B. Introduction System Auditing
C. Informative System Assessment
D. Information System Assessment
2) What is the need of control and audit of computer? D
A. Organisational cost of data loss
B. Cost of incorrect decision making
C. High cost of computer error
D. All of the above
3) Mistake made in system analyses are identified in ____ C
A. System design
B. System development
C. Implementation
D. All of the above
4) Name one of the purposes of creating Business Continuity Plan B
A. To maximise the number of decisions made during an
incident
B. To minimise decisions needed during a crisis
C. To lower business insurance premiums
D. To provide guidance for federal regulations
5) The list of document that generally an organisation is known as ____ D
A. Administrative policy manual
B. Personal policy manual
C. Procedure log
D. Organisational manual
1 P.T.O.
6) Failing to prevent or detect a material error would represent which B
type of risk?
A. Overall Audit Risk
B. Detection Risk
C. Inherent Risk
D. Control Risk
7) Maintenance of privacy and Controlled evolution of computer use A
refers to the necessity of control and audit of computer.
A. True B. False C. Can’t say D. None
8) The part of the system immediately outside of the system is ______ A
A. Environment
B. Interface
C. Boundary
D. None of these
9) A program check that ensures data entered by a data entry A
operator is complete is an example of a
A. Detective Control
B. Preventive Control
C. Corrective Control
D. Redundancy Control
10) Cost of computer abuse includes- D
A. Hacking
B. Viruses
C. Illegal Physical Access and Abuse of privileges
D. All are correct
11) The data that are entered in the system first time will go through the A
process of ______
A. Validation
B. String testing
C. Sequential testing
D. System testing
12) IS auditing means _______ D
A. Process of collecting and evaluating evidences
B. Safeguarding of assets and maintaining data integrity
C. Achieving organisational goals effectively
D. All of the above forms IS auditing.
13) What is the best example of why plan testing is important? B
A. To prove the plan worked the first time
B. To find the correct problems
C. To show the team that is not pulling their own weight
D. To verify that everyone shows up at the recovery site
2
14) An _____ is a set of processes and procedures that transform data A
into information and knowledge.
A. Information System
B. Knowledge System
C. Database system
D. Computer System
15) Continuity planners can create plans without the business impact C
analysis (BIA) process because
A. Business Impact Analysis is not required
B. Management already dictated all the key processes to
be used
C. Not possible, critical processes continuously changes
D. Risk assessment is acceptable
16) How should management act to best deal with emergency B
changes?
A. Emergency changes can not be made without
advanced testing
B. All changes should still undergo review
C. The changes control process does not apply to
emergency conditions
D. Emergency changes are not allowed under any
condition
17) Audit risk is composed of 3 factors. Which of the following is NOT one A
of those factors?
A. Compliance Risks
B. Detection risks
C. Control risks
D. Inherent risks
18) Which is the following is not an objective of a control? D
A. Reduce expected losses from irregularities
B. Reduce the probability of an error occurring
C. Reduce the amount of loss if an occurs
D. Provide for all the failures and to ensure that business is
protected fully from such failures
19) IT audit is the process of collecting and evaluating evidence to D
determine
A. Whether a computer system safeguards assets
B. Whether maintains data integrity
C. Whether allows organisational goals to be achieved
effectively and uses resources efficiently
D. All of the above
3 P.T.O.
20) Internal control defines the policies and procedures to safeguard A
tangible and intangible assets against unauthorised use and abuse.
A. True B. False C. Can’t say D. Statement is
wrong
21) What is the property of data or information D
A. Compliance
B. Integrity
C. Confidentiality
D. Technology
22) Which among the following does not encompass organisational and C
management controls within the information processing facility
A. Sound human resource policies and management
practices
B. Methods to assess effective and efficient operations.
C. The regulatory framework within which the business is
carried out
D. Separation of duties within the information processing
environment
23) Name the purpose of creating Business Continuity Plan. B
A. To maximise the number of decisions made during an incident
B. To minimise decisions needed during the crisis.
C. To lower business insurance premium
D. To provide guidance for federal regulations
24) The essential aspect to be understood about the organisation D
subject to IT audit is
A. Organisation’s business and its strategic goals and
objectives
B. The number of operating units / locations and their
geographic dispersion
C. Major pending projects in progress
D. All of the above
25) The objective of Information system audit include…. C
A. Ensure asset safeguarding
B. Ensures that the attributes of data or indormation are
maintained
C. Both A and B
26) Changes in evidence collection and evidence evaluation are _____ A
A. Effects of computer on auditing
B. Internal controls
C. External controls
D. IS auditing
4
27) The security goals of the organisation does not cover B
A. Confidentiality
B. Probability and impact of occurrence
C. Availability
D. Integrity
28) _____ are foundations of IS Audit D
A. Traditional auditing
B. IS management
C. Behavioural and Computer Science
D. All of the above
29) A higher risks of system violation happens where …. D
A. The Audit module is not operational
B. The audit module has been disabled
C. The audit module is not periodically reviewed
D. All of the above
30) Consider the following statement and find out the correct one w.r.t. B
IT audit
A. In inherent risk there is an assumption that there are
related internal controls.
B. In control risk errors will not be prevented or detected
and corrected by the internal control system.
C. The control risk associated with computerised data
validation procedures is ordinarily high.
31) ) What is the characteristic of ‘detective control’ B
A. Minimise the impact of a threat
B. Use controls that detect and report the occurrence of
an error, omission or malicious act.
C. Detect problems before they occur
32) Which among the following is not characteristic of ‘preventive C
control’
A. Monitor both operation and imports
B. Prevent error, omission or malicious act from occurring
C. Correct errors from occurring
33) IT access is not controlled or regulated though password it indicates D
A. Poor security control
B. High risk of the system getting hacked
C. High risk of the system getting breached
D. All of the above
5 P.T.O.
34) Application control include B
A. IT operational controls
B. Control over processing
C. Physical controls
35) Basic risk areas which the external Govt. auditor may come across C
when reviewing internal audit’s work include
A. Availability of sufficient resources, in terms of finance,
staff and skills required
B. Involvement of internal audit with IT system and under
development
C. Management not required to act on internal audit’s
recommendations
36) Which is the common audit objectives for an IT audit D
A. Review of the security of the IT system
B. Evaluation of the performance of a system
C. Examination of the system development process and
the procedures followed at various stages involved
37) In case of outsourcing IT activities, the IT auditor should D
A. Review the policies and procedures which ensure the security
of the financial data
B. Obtain a copy of the contract to determine if adequate
controls have been specified
C. Ensure that audit needs are taken into account and included
in the contracts
D. All of the above
38) The type of audit evidence which the auditor should consider using A
in IT audit includes
A. Observed process and existence of physical items
B. Documentary audit evidence excluding electronic
records
C. Analysis excluding IT enabled analysis using
6
39) Match the following w.r.t interviews to be conducted with staff and B
purpose interviewing Kinds of staff / personnel Purpose of interview
(A) To determine whether any application

(A) System analysis
system to consume abnormal amounts of
of programmers
resources.
(B) Clerical / Data (B) To determine their perceptions of how the
entry staff system has affected the quality of working life
(C) Users of an
(C) To determine how they correct input data.
application systems
(D) To obtain a better understanding of the
(D) Operation staff functions and controls embedded with the
system.
A. A–B; B–A; C–D; D–C
B. A–D; B–C; C–A; D–A
C. A–C; B–D; C–A; D–B
40) Which of the following type of questions need to be included in the D
questionnaire(s)
A. Ambiguous questions
B. Leading questions
C. Presumptuous questions
D. Specific questions
41) Which of the following are not an application control? C
A. Processing controls.
B. Output controls
C. Hardware controls
D. Input controls.
42) A higher risk of system violation happens where D
A. The audit module is not operational
B. The audit module has been disabled
C. The audit module is not periodically reviewed
D. All of the above
43) Substantive tests as they relate to the IT environment does not D
include
A. Conducting system availability analysis
B. Conducting system outage analysis
C. Performing system storage media analysis
D. Determining whether a disaster recovery plan was
tested
7 P.T.O.
44) IT has several significant effects on an organization. Which of the D
following would not be important from an auditing perspective?
A. Organizational changes
B. The visibility of information.
C. The potential for material misstatement.
D. None of the above;
45) Which among the following is true as to Audit Reporting
A. Normal reporting format is not adhered to in the case of
IT Audit
B. In IT audit, the base of the focus is the system
C. In IT audit the audience for the report should normally
be ignored
46) Which among the following is not a limitation in IT Audit C
A. Data used not from production environment
B. If these is only production environment and audit could
not test dummy data
C. “Read only Access” given to audit
47) For an internal audit function to be effective, it is essential that the
internal audit staff
A. be independent of the operating departments.
B. be independent of the accounting department.
C. report directly to a high level of authority within the
organization such as the audit committee.
D. achieve all of the above.
48) The reason for management’s failure to use information properly is D
A. Failure to identify significant information
B. Failure to interpret the meaning and value of the
acquired information
C. Failure to communicate information to the decision
maker
D. All of the above
49) In simple terms, Disaster Recovery Plan is: A
A. A plan used when the main computer systems fails
B. Prepared to deal with natural disasters only.
C. For backup data only
D. Plan for business continuity only
8
50) Find out the incorrect statement B
A. Distributed networks may decrease the risk of data
inconsistencies
B. Application software developed inhouse may have
lower inherent risk than vendor supplied software
C. Peripheral access devices or system interfaces can
increase inherent risk
51) Identification of risk domains and risk exposure are done in the A
Analysis of Security Risk.
A. True
B. False
52) Categories of general control do not include C
A. Logical access controls
B. Acquisition and program change controls
C. Control over standing data and master files
53) When should the BCP be reviewed? B
A. Whenever encountering a disaster
B. At least annually or whenever significant changes occur
C. Whenever the company gets audited
D. Whenever the legal department declares it is time
54) Internal audit means C
A. Audit undertaken to ascertain the truth and the fairness of
state of affairs.
B. Audit undertaken internally to evaluate management
functions
C. Audit undertaken by employees of the organisation to check
financial irregularities.
D. Audit by independent auditor to improve internal affairs
55) What is the most important aspect of disaster recovery? D
A. A complete damage assessment
B. Control of critical assets
C. Restoration of business functions
D. Protection of individual life
56) Application controls includes B
A. IT operational controls
B. Control over processing
C. Physical controls
9 P.T.O.
57) The risk areas associated with poorly controlled computer operations D
include
A. Applications not run correctly
B. Loss or corruption of financial applications
C. lack of backups and contingency planning
D. All of the above
58) Which process can prevent data from lose due to computer A
problems or human errors?
A. backup
B. recovery
C. benchmarking
D. data cleansing
59) Which of the following is not a natural disaster? B
A. Earthquake
B. Terrorism
C. Hurricane
D. Tsunami
60) In case of outsourcing IT activities the IT auditor should D
A. Review the policies and procedures which ensure the
security of the financial data
B. Obtain a copy of the contract to determine if
adequate controls have been specified
C. Ensure that audit needs are taken into account and
included in the contracts
D. All of the above
61) What are the three phases of disaster management planning? C
A. Planning, Evacuating and recovery
B. Preparation, planning and perception
C. Evacuating, Rebuilding and re-branding
D. Preparation, response and recovery
62) Which of the following backups are faster and more efficient from a B
storage perspective?
A. Point-in-time
B. Incremental
C. Reverse Delta backup
D. All of the mentioned
63) In computer, steps for maintaining the security of important data is A
known as ____
A. Data backup
B. Data protection
C. Data locking
D. Data securing
10
64) Man-made disasters include: D
A. Wars
B. Terrorism
C. Industrial hazard
D. All of the above
65) Which of the following are not general IT controls? A
A. Control over data centre and network operations
B. Edit checks of input data
C. Backup and recovery
D. System software acquisition
66) Which of the following is not application control? C
A. Numerical sequence check
B. Manual follow-up of exception reports
C. Chart of accounts
D. Access security
67) Which of the following is not a risk to IT systems? C
A. Need for IT experienced staff
B. Separation of IT duties from accounting function
C. Improved audit trail
D. Hardware and data vulnerability
68) Internal check is carried by D
A. Special staff
B. Internal auditor
C. Accountant
D. The member of the staff among themselves.
69) Which of the following is not a category of an application control? C
A. Processing control
B. Output control
C. Hardware control
D. Input control
70) In which phase disaster damage assessment is done? D
A. Warning phase
B. Impact phase
C. Rescue phase
D. Re-habilitation phase
71) To improve the performance of a business process, which of the C
following is most relevant?
A. Input.
B. Processing.
C. Control and feedback
11 P.T.O.
72) ______ controls prevent and detect errors while transaction data are C
processed.
A. Software
B. Application
C. Processing
D. Transaction
73) Which among the following is not true w.r.t. logical access controls B
A. Logical access control usually depend on the in – built
security facilities
B. The importance of logical access controls is increased
where physical access control is more effective
C. logical access control exits at both an installation and
application level
74) A person qualified for appointment as a company auditor is ______ D
A. A graduate
B. A body corporate
C. Officer or employee of company
D. None of these
75) Which of the following statements is correct? C
A. Auditors should evaluate application controls before
evaluating general controls.
B. Auditors should evaluate application controls and general
controls simultaneously
C. Auditors should evaluate general controls before evaluating
application controls.
D. None of these statements is correct
76) Weak input control may increase the risk of D
A. Entry of an authorised data
B. incomplete data entry
C. Entry of duplicate / redundant data
D. All of the above
77) Weak process controls would lead to: D
A. Unauthorised changes or amendments to the existing
data
B. Absence of audit trial rendering, sometimes the
application unauditable
C. Inaccurate processing of transactions leading to wrong
outputs / results
D. All of the above
12
78) The time and cost required in an external audit are much higher as A
compare to internal audit.
A. True
B. False
79) Controls which apply to a specific element of the system are called: D
A. User control
B. General controls
C. System controls
D. Application controls
80) Which of the following are foundations of a system audit? D
A. Traditional audit procedures
B. Knowledge of MIS
C. Knowledge of Computer Science & Behavioural
Science
D. All of the above
81) Auditors usually obtain information about general and application D
controls through ____
A. Interviews with IT personnel
B. Examination of system documentation
C. Reading program change requests
D. All of the above methods
82) Managing the ISA includes: D
A. Planning
B. Organising
C. Staffing & Directing
D. All of the above
83) Which of the following statement is false for output controls: D
A. Output controls apply to the output of a computer-
based accounting system.
B. They include policies, practices and procedures that
ensure the accuracy of the results of processing.
C. These controls also ensure that only authorized
personnel receive the reports produced by an
application system.
84) With the help of what tools, IT auditor can plan for 100% substantive A
testing?
A. CAAT
B. ERP
C. COBIT
D. Manual
13 P.T.O.
85) Which of the following are duties/ responsibilities of IS auditor D
A. Separation of duties
B. Delegation of authority and responsibility
C. Competent and Trustworthy personnel
D. All of the above
86) By auditing around the computer we mean.... A
a) the inputs and the corresponding outputs are compared and
checked for correctness
b) the programs and procedures are checked for correctness
c) special synthetic data is input and outputs checked for
correctness
d) programs are written to check the functioning of the computer
hardware
87) By auditing with a computer we mean….. C
correctness
hardware
88) By auditing through the computer we mean.... B
correctness
hardware
89) How systemic Error help Auditor in Evidence Evaluation? C
a) Systemic Error raise audit flags on system errors to auditor against
which auditor can easily take action
b) Systemic errors are the errors made by system in processing thus
auditor only required to evaluate system processing
c) Systemic errors are made on all the transactions processed thus it
reduces auditor time to evaluate evidence
d) All of the above
90) In an organisation Auditor wants to collect evidences based on D
system user profiles ; which CATT can be used by the auditor to
achive the objective
a) CIS b) Audit Hooks c) Audit Trails d) SCARF
14
91) To perform IS audit IS Auditor must possess a good skills set ;in D
reference to this identify the wrong statement
a) Should have knowledge of IT policies
b ) Should have knowledge of IT ACT
c) Should be able to understand BCP controls to organisation
d) Must possess CA degree
92) Risk-control-Matrix is developed in which step of IS audit B
a) Analysis b) Planning c) Fieldwork d) Reporting
93) Audit can be conducted by employees of the organisation or A
externally by an outside firm.
A. True B. False C. Partially true D. None
94) The system efficiency indicates _____ D
A. The manner in which the inputs are used by the system.
B. The system uses inputs in a “right way”.
C. The system uses minimum resources to achieve its required
objectives.
D. All of the above
95) Top management must prepare two types of IS plans for IS function: C
A. Strategic plan
B. Operational plan
C. Both A & B
D. Either A or B
96) Which one is not Audit preformed during system development B
process
A. Concurrent audit
B. Pre-implementation audit
C. Post-implementation audit
D. General audit
97) Staffing the IS function involves D
A. Acquisition of IS personnel
B. Development of IS personnel
C. Termination of IS personnel
D. All of the above
98) The security goals of the organization does not cover B
A. Confidentiality
B. Probability and impact of occurrences of Risk
C. Availability
D. Integrity
99) Which one is not a continuous audit technique C
A. Continuous simulation
B. SCRAF
C. Cobit
D. Snapshot
15 P.T.O.
100)One significant risk related to an automated environment is that B
auditors may ____ information provided by an information system.
A. Not place enough reliance on
B. Place too much reliance on
C. Reveal
D. Not understand
**********
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M6.

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13) The Dow theory was developed by ________________ B

14) Investing in different asset and securities of many companies in an attempt to C

18) The main objective of portfolio is to reduce _______ by diversification. B

20) . ____________describes the relationship between systematic risk and expected A

22) Which of the following are objectives of Investment D

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26) The word “Security” in Security Analysis stands for _____________ B

27) Which method of security analysis of Financial Statements? A

29) Market Analysis Involves C

31) ________________is the anticipated or calculated value of a company, stock, C

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34) Which is not a factor to conduct fundamental analysis ? D

35) Fundamental Analysis is more suitable for _______________ D

36) Market Discounts Everything is the basic assumption of ________________ B

37) Which of the following tools are used in technical analysis? D

39) Which of the following theory is of technical analysis ? A

41) Market Risk is a type of A

46) Which portfolio is considered as most favourable ? C

47) The modern portfolio theory was developed by ? D

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12) Which of the following are short-term financial instruments? D

13) Financial intermediaries D

14) Compared to future contracts, forward contracts D

16) Every financial market has the following characteristic: D

18) Financial market and institutions: D

19) Money market is important financial market because: D

20) Financial derivatives are used for D

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23) IPO is a _______________ Instrument A

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26) Finance Function comprises D

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30) Interest rates and bond prices B

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34) How many companies are included in the SENSEX? A

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37) Forward contracts are risky because they D

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44) In India Derivatives trading started in the year ______________ B

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46) FPO stands for _________________ A

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50) Which of the following are features of derivatives market ? D

1) An Organisation is made up of four resources, namely, material, money, machinery, C

1. PHP Stands for _______.