FINC631

Q. The market for short-term instruments of maturity of less than one year is known as __________

Call money market

Treasury bill market
Money market
acceptance market

Q. ____________________scheme enable the society to enjoy the benefits of insurance at reduced cost.

Professional insurance
Social insurance
Industrial insurance
Credit insurance

Q. Who is the nodal centre for all venture capital activity in the country?

Indian Venture Capital Association

Development finance institutions
Financial institution
Industrial Development bank of India

Q. Which is of the following instrument is not a negotiable instrument

crossed cheque
bearer cheque
promissory notes
bill of exchange

Q. __________is a method of renting assets.

hire pirchase
lease
hedge finance
credit rating

Q. ________________________ refers to transaction in which two parties agree to sell and repurchase the same
security.

Certificate of deposit
Re-purchase Option (REPO)
Commercial bills
Treasury bills
Q. Which of the following members would you not find in the secondary stock market?

Investors
Stock exchanges
Stock brokers
Underwriters

Q. _____________________ offers insurance cover on the life of the key personnel in an organisation to protect it
from the loss arising out of his death, absence oe exit.

whole life insurance

Term life insurance
Key-man insurance
Non-life insurance

Q. Early stage financing includes

Sees capital, start-up, bridge

Seed capital, start-up, mezzanine capital
Seed capital, start-up, second-round financing
Seed capital, start-up, buyouts

Q. The additional finance provided by VCFs to overcome fledging stage is called_________.

seed capital
Start up capital
Second round capital
First round capital

Q. __________________ is an investment in a start-up business.

mutual fund
venture capital
working capital
factoring

Q. Agents are compensated by mutual funds

through commission
through salaries
through an annual fee
not in cash but in kind
Q. Functions of financial services exclude __________.

Collection of tax.
Allocation of fund
Mobilization of savings
Specialized services

Q. Of the following fund types, the highest risk is associates with

Balance fund
Gilt funds
Equity growth fund
Debt funds

Q. In simple terms, the management of issues, for raising funds through various types of instruments, is known as:

Lead management
Merchant banking
Issue management
Underwriting

Q. Financial services which offers financing of risky projects e.g. Risk capital scheme of IFCI, venture capital fund of
IDFI etc. to provide______________

seed capital
venture capital
primary fund
secondry fund

Q. A market in which different currencies are bought and sold under regulated arrangement is

Foreign exchange market

Financial market
Money market
Capital market

Q. ___________ is a financial intermediary who helps to mobilize and transfer capital from those who possess it to
those who need it.

lease finance
Hire purchaser
merchant banker
venture capital
Q. Certificates of Deposits (CDs) are issued by

Regional Rural bank

Corporates
Schedule commercial bank
Private banks

Q. Mutual fund is not

a portfolio of stocks, bond and other securities

a company that manages investment portfolios
a pool of fund used to purchase securities on behalf of investors
a collective investment vehicle

Q. Which of the following is traded in a money market?

preference shares
mortgages
terasury bills
common stock

Q. A form of direct short-term finance issued by large, credit worthycompanies is called a ____________________

commercial paper
all money
preference shares
corporate stock

Q. The consideration which the lessee pays to the lessor for the lease transaction is the

hire charges
lease rental
commission
lumsum payment only

Q. Plastic cards implanted with computer chip to the data is known as______________

credit card
ATM card
smart card
SME card
Q. ______________act as an intermediary to link up the sources of ideas and the sources of fund.

venture capital
merchant banking
leasing
hire purchase

Q. Secondary markets in treasury bills require involvement of ________ and _______

Brokers, Dealers
Buyers, Sellers
Consumer, Producer
All of the above

Q. Which of the following is not a characteristic feature of venture capital firms?

Holding equity in the firms that are funded.

Having a long-term investment horizon.
Funding just one or a small number of firms.
Providing advice and assistance to the firms that are funded.

Q. Insurance is a____________

Instrument
Contract
Agreement
Rating

Q. In case of hire-pirchase the total sum payable by the hire purchaser as per terms in order to complete the
transactions is

net cash price

net hire-purchase price
hire-purchase price
cash price instalment

Q. ____________ is a long term risk capital to finance high technology projects which involve risk but at same time
has strong potential for growth.

hire purchaser
venture capital
hedge finance
merchant banker
Q. Under hire purchase system, if installment is not paid the hire vendor has right to ____________________

repossession of goods
sell the gods
repair the goods
purchase of goods

Q. which is not the types of financial services

Fund based services

Insurance services
Need based services
Fee based services

Q. bank owned mutual funds are supervised by

SEBI
RBI
Jointly by SEBI & RBI
AMFI

Q. The nature of lease rent is

Capital expenditure
Revenu expenditure
Deferred revenue expenditure
None of these

Q. The component of a capital market is ___________

Treasury bill market

Government securities market
Commercial bill market
None of these

Q. Under hire purchase system, who has the right of sell

buyer
hirer
hire vendor
debtor
Q. __________capital is needed for product development and initial marketing.

seed capital
Start up capital
Second round capital
Working capital

Q. Which of the following is a short-term financial instrument?

Shares of Limited company

Government bond with a maturity of 2 years
residential mortgage
Treasury bills

Q. A high P/E multiple of a fund in comparision to average market multiple could be of

value fund
balance fund
equity diversified fund
growth fund

Q. One advantage of a financial lease is that:

it has a shorter maturity than term loans

it never appears as a liability on the balance sheet
it eliminate the needs to make periodic payments
it provides a way to indirectly depreciate land

Q. Brokers are also acting as _________

Depository participants
Merchant Banker
Financer
Clearing member

Q. _________ are examples of financial intermediaries

commercial bank
insurance cpmpanies
investment companies
All of these
Q. _________provided at a stage when product has been launched in the market but has not earned enough profits to
meet future capital needs.

seed capital
Start up capital
Second round capital
First round capital

Q. An aggrieved unit-holder of a mutual fund can sue

the AMC
the trustees
the sponsor if returns have been guaranteed by them
the brokers

Q. NBFC stands for.

Non banking finance companies

Non banking financial corporation
Non bulk finance companies
None of these

Q. __________ lease is a long-term lease that is not cancelable and its life often matches the useful life of the asset.

Financial
Operating
Sale or lease back
None of these

Q. The sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of

credit enhancement
securitization
unbounding
derivatives

Q. The period for which the lease agreement remains in operation is called

Grace period
Lease term
Finance term
Operating period
Q. Discounting of bills of exchange is an attractive__________ based financial service provided by the finance
companies.

fee
fund
opinion
capital

Q. It is normally true that, the longer the time to maturity of a Government Treasury bill _______

The lower the discount rate

The less liquid the asset
The lower the level of taxation on the Treasury bill
The lower the market risk in the Treasury bill

Q. Accounting standaed - 19 on lease issued by

Institute of cost accountant of India

Accounting statdard board
institute of chartered accountants of India
None of these

Q. _____________________ are where a bank promotes jointly a credit card with another non financial institution.

Cold card
Affinity card
Co-branded card
Add-on card

Q. Mutual funds are allowed to borrow

freely to meet their requirements

for investment purpose only
only to meet redemption demands
None of these

Q. The _______ has to manage the post-issue activities.

Merchant banker
Lead manager
Bank promoter
Bank manager