Sample Questions

Class: T.Y.BBI

Semester: V

AUDITING

1 Which of the following is not true about opinion on financial statements?

a) The auditor should express an opinion on financial statements.
b) His opinion is no guarantee to future viability of business
c) He is responsible for detection and prevention of frauds and errors in
financial statements
d) He should examine whether recognised accounting principle have been
consistently
2 Which of the following statements is not true?
a) Management fraud is more difficult to detect than employee fraud
b) Internal control system reduces the possibility of occurrence of employee
fraud and management fraud
c) The auditor’s responsibility for detection and prevention of errors and
frauds is similar.
d) d) Auditors programme
3 A sale of Rs 30.000 to A was entered as a sale to B. This is an example of _
a) Error of omission
b) Error of commission
c) Compensating error
d) Error of principle
4 ‘Goods sent on approval basis’ have been recorded as ‘Credit sales’.
This is an example of _
a) Error of principle
b) Error of commission
c) Error of omission
d) Error of duplication
5 The most difficult type of misstatement to detect fraud is based on:
a) Related party purchases
b) Related party sales
c) The restatement of sales
d) Omission of a sales transaction from being recorded
6 Concurrent audit is a part of
a) Internal check system
b) Continuous audit
c) Internal audit system
d) Interim audit
7 Which of the following is not an advantage of the preparation of working paper?
a) To provide a basis for review of audit work
b) To provide a basis for subsequent audits
c) To ensure audit work is being carried out as per programme
d) To provide a guide for advising another client on similar issues
 8 . Audit programme is prepared by
a) the auditor
b) the client
c) the audit assistants
d) the auditor and his audit assistants
9 Which of the following factors would least likely affect the quantity and content of
an auditor’s working papers
a) The assessed level of control risk
b) The possibility of peer review
c) The nature of auditor’s report
d) The content of management representation letter
10 When the auditor is an employee of the organization being audited (auditee), the
audit is classified as an …….. quality audit.
a) Internal
b) External
c) compliance
d) Inclusive

11Which of the following is the limitation of Audit Programme?

A. Evidence in Court
B. Guidance to assistants
C. Mechanical
D. Supervision of Work

12. A planned and predetermined procedure for the conduct of an audit is known as audit
…………
A. Plan
B. Programme
C. Working Papers
D. Note book

13. Which factor is considered by auditor while developing an audit plan?

A. Legal Requirement
B. Terms of audit engagement
C. Nature and timing of reports
D. Personal Experience of Auditor

14. Copies of audited accounts of earlier years will be filed in the ……….
A. Permanent Audit File
B. Working Papers
C. Current File
D. Audit Plan

15 Adequate Audit Planning helps to co-ordinate the work done by ……………

A. Other Auditors and Experts
B. Accountant and Experts
C. Audit Assistants and Accountants
D. Audit assistants and Experts

16 Audit Planning involves developing…….. for the expected scope and conduct of the audit.
A. An overall plan
B. Audit Techniques
C. A flow chart
D. An audit Programme

17. Adequate Audit planning involves …………… showing the nature, timing and extent of audit
procedures.
A. An overall plan
B. Audit Techniques
C. A flow chart
D. An audit Programme

18. Trial Balance for the year under audit will be filed under…….
A. Permanent Audit File
B. Working Papers
C. Current Audit File
D. Audit Plan

19. Adequate audit planning helps to ensure that appropriate attention is devoted to ………..
areas of Audit.
A. all
B. important
C. material
D. few

20. Which of the following best describes the primary purpose of audit programme
preparation?
A. detection of error and frauds
B. compliance with GAAP
C. collection of sufficient evidence
D. assessment of audit risk

21 Following is not the objective of Audit Planning.

A. To utilize assistants properly
B. To facilitate supervision
C. To co-ordinate with others
D. Early Recovery of Audit Fees

22 Detail checking of all the books of accounts is known as _______

a. Sampling
b. Test checking
c. Routine checking
 d. Checking
23 Which of the following is not an advantage of routine checking?
a. Thorough checking
b. Confirmation of accuracy
c. Time consuming
d. Training to juniors
24 Checking only representative samples from a large number of similar items
randomly is known as ________
a. Test checking
b. Sampling
c. Routine checking
d. Internal check
25 When test checking can be used?
a. When volume of transactions is small
b. When transactions are heterogeneous
c. When the auditor has very little time
d. When the internal control system is weak
26 Which of the below is not an advantage of test checking?
a. Save in time
b. Reduction in workload
c. Biased
d. Moral check on employees
27 If the internal control system is weak, then the samples picked to be ______
a. Large
b. Small
c. No effect
d. Depends on size of population
28 Verification of arithmetical accuracy of the entries is possible during ______
a. Routine checking
b. Test checking
c. Audit sampling
d. Audit plan
29 Checking only representative samples from a large number of similar items by
applying scientific techniques is known as ________
a. Test checking
b. Sampling
c. Routine checking
d. Internal check
30 The audit sample size depends on _________
a. Efficiency of internal control system
b. Work culture
c. Number of employees
d. Number of offices
31 The risk that, although the sample result does not support the auditor’s
assessment of control risk, the actual compliance rate would support such an
assessment is known as ________
a. Risk of under reliance
b. Risk of over reliance
c. Risk of incorrect acceptance
 d. Risk of incorrect rejection
32 The risk that although the sample result support the conclusion that record may
be misstated, while in fact it may not be misstated such a risk is known as
__________
a. Risk of incorrect rejection
b. Risk of incorrect acceptance
c. Risk of under reliance
d. Risk of over reliance
33 The maximum error in the population that the auditor would accept is known as
________
a. Expected error
b. Tolerable error
c. Error of omission
d. Error of commission
34 If the auditor expects more error to be present in the population is known as
_______
a. Expected error
b. Tolerable error
c. Error of omission
d. Error of commission
35 _________ is the process designed and implemented by the management in the
company
a. Audit programme
b. Audit plan
c. Internal control system
d. Accounting policies

36 Auditing standards _______ use of internal audit reports by the statutory auditor
a. Discourage
b. Prohibit
c. Require
d. Permit
37 Which of the below statement is false?
a. Opening and closing entries are not suitable for test checking
b. Material information can be checked using test check
c. Test check aims at less than 100% checking
d. Internal check part of internal control system
38 Which of the following is suitable for test checking?
a. Opening and closing entries
b. Bank reconciliation statements
c. Payment made by bank, during audit of a bank
d. Material transactions
39 “Letter of weakness” deals with _____________
a. Statutory audit
b. Internal control system
c. Internal check
d. Financial positions
40 The following points should be noted or checked by the auditor in vouching:

A. Checking the voucher

B. Checking the supporting documents

C. Checking the entry in the books

D. Checking serial number

41. Checking serial no. of vouchers during vouching helps the auditor to

A. Detect errors of principle

B. Detect errors of omission

C. Detect compensating errors

D. Checking error

42. Checking the head of account debited or credited during vouching helps the auditor to

A. Detect errors of principle

B. Detect errors of omission

C. Detect compensating errors

D. Detecting compensating omission

43. Checking the amount in words during vouching of cash transactions helps the auditor to

A. Detect errors of principle

B. Detect errors of commission

C. Detect misappropriation

D.Checking the entry in the books

44.Verifying the signature of the authorised official on the voucher during vouching helps auditor
to check the the
A. Occurrence of the transaction

B. Validity of the transaction

C. Amount of the transaction

D. Lord of the transaction

45.Checking the serial no. of vouchers on the voucher during watching the helps the order to
obtain evidence that

A. The transaction took place

B. There are no unrecorded transaction

C. The transaction is recorded in the books on the right date

D. The transaction is valid

46.Checking the date of voucher on the voucher during vouching mainly helps the auditor to
obtain

evidence that

A. The transaction relates to current year

B. The transaction is legal

C. All the transaction are recorded in the book

D. transactions take place every day

47. Verifying the signature of the person preparing the voucher helps the auditor to

A. Fix responsibility for errors in making entry of the voucher

B. Fix responsibility for errors in preparing the voucher

C. Ensure that the voucher is posted in the ledger

D. Ensure that the voucher has proper supporting documents

48.A _____________ is a document that indicates a request for goods by a customer.

A. Sales invoice

B. Vendor invoice

C. Customer order

D. Sales order

49.documents showing shipment of the goods sold by an independent shipper is the

A. Sales order

B. Bill of lading

C. Sales invoice

D. Customer order

50. The document used to indicate to the customer the amount of a sale and payment due date
is the

A. Sales invoice

B. Bill of lading

C. Purchase order

D. Sales order

Financial Reporting Analysis

1 A Banking company in Mumbai must have ` _____ capital.

A. 15 lakhs
B. 25 lakhs
C. 35 lakhs
D. 5 lakhs
2 Share capital of a banking company includes _____ shares only.
A. Shares
B. Equity
C. Assets
D. Debenture
3 Rate of interest on fixed deposit is _____.
A. Equal
B. Higher
 C. Lower
D. Better
4 _____ _____ are repayable on demand.
A. Deposits
B. Advances
C. Demand Deposits
D. Fixed Deposit
5 Money at call and short notice can be withdrawn by _____ hrs. Notice.
A. 24 hrs.
B. 2 hrs.
C. 42 hrs.
D. 22 hrs.
6 Banks must maintain SLR of _____.
A. 25%
B. 35%
C. 55%
D. 20%
7. Non-Banking assets must be disposed of within- from the date of acquisition.
A. 5 years
B. 7 years
C. 10 years
D. 10 years
8. A banking company incorporated in India having place of business in more than
one state including the city of Mumbai or Kolkata or both must have paid up
capital of `
A. 100000
B. 1000000
C. 1500000
D. 2000000
9 Every banking company must transfer at least _____% profit to Reserve fund
A. 20%
B. 25%
C. 35%
D. 40%
10 Every banking company has to maintain a statutory liquid Ratio of
A. 25%
B. 20%
C. 40%
D. 50%
11 Every banking company must submit P & L A/C and Balance sheet together with
Auditors Report in
A. 5 copies
B. 3 copies
C. 7 copies
D. 10 copies
12 Inter – branch transactions should be disclosed under
A. Accounting policies
B. Notes on Accounts
C. Current liabilities
 D. Current assets
13 CRR stands for
A. Cash Reserve Ratio
B. Cash Retained Ratio
C. Cash Reserve Refunded
D. Cash Reserve Rent
14 The % of provision on unsecured portion of doubtful asset is:
A. 125%
B. 75%
C. 100%
D. 25%

15 Commission on Re-insurance ceded is credited to ______ A/c.

A. Investments
B. Revenue A/c
C. Profit & Loss Account
D. Security A/c
16 The policy in which the liability of the insurer is limited is
A. Specific policy
B. Valued policy
C. Floating policy
D. Comprehensive policy
17 Premium received in advance is disclosed under the head
A. Provision
B. Current liability
C. Fixed assets
D. Quick Assets
18 Provision created to meet the claims which may arise in respect of policies which
remain unexpired at the end of the year is called as
A. Provision for unexpired risk
B. Provision for expired risk
C. Provision for risk involved
D. Provision for debt
19 The schedules which form part of Balance sheet are
A. 10
B. 12
C. 11
D. 20
20 Deposits held on Reinsurance ceded is shown under
A. Provisions
B. Fixed assets
C. Current liabilities
D. Loans
21 Premium on Re-insurance ceded is deducted from
A. Premium for direct business
B. Interest
C. Commission
D. Discount
22 Fire insurance policies are always subject to __________.
 A. Average clause
B. Normal clause
C. General clause
D. Total clause
23 Share transfer fees received is shown under _____________ in P & L A/c of
General Insurance companies.
A. Other income
B. Other expenses
C. Other asset
D. Other expense
24 Calculate amount of provision to be made in the profit and Loss A/c. A. Standard
Assets ₹ 20,000 ; B. Secured Doubtful Assets for two to three Years ₹ 4,000
A. ₹. 1030
B. ₹. 1680.
C. ₹. 1520
D. ₹. 5300
25 Find the Net Claim transferred to Revenue Account if (a). Claim paid during the
year 2019-2020 is ₹. 2,35,000 (b). Claim unpaid balance as on 31.3.2020 ₹.
35,000 (c). Claim unpaid balance as on 31.3.2019 ₹. 20,000
A. ₹. 2,50,000
B. ₹. 2,90,000
C. ₹. 2,70,000
D. ₹. 2,20,000
26 An insurance company provides you the following particulars : Claims paid on
Direct Business ₹ 49,70,000,Claims paid on Re-insurance ₹ 5,10,000,Claims
Ceded on Re-insurance ₹ 3,95,000,The company also incurred Surveyor Fees
₹55,000 ,Legal Expenses ₹ 25,000 in settlement of claims, Amount of Claims
Incurred (net) as under Schedule 2 shall be __________
A. ₹ 50,85,000
B. ₹ 51,10,000
C. ₹ 59,55,000
D. ₹ 51,65,000
27 The final accounts of companies are to be prepared in accordance with the
provision of _____ the Companies Act.
A. Schedule II
B. Schedule III
C. Schedule II
D. Schedule –V
28 The _____ value of investment should be indicated by way of a note.
A. Fixed Assets
B. Market
C. Current Assets
D. Investment
29 Current liabilities means liabilities payable within _____ months form the
date of Balance Sheet.
A. Twelve
B. Ten
C. Eleven
 D. Six

30 Uncalled amount on shares held as investment is shown under the

heading _____.
A. Calls in arrears
B. Securities premium
C. Contingent Liability
D. current liabilities

31 The capital work in progress is added to _____ in Balance Sheet.

A. Current Assets
B. Contingent
C. Fixed Assets
D. Investment

32 Interest accrued but not due on secured loans is shown under _____
_____.
A. Current Liabilities
B. Loans And Advances
C. share capital
D. Contingent

33 Profit and Loss of a company must be as per part _____ of schedule III of
Companies Act.
A. III
B. II
C. IV
D. V

34 Bills Receivable is shown under _____ in Balance sheet.

A. Loans And Advances
B. share capital
C. reserves & surplus
 D. Trade Receivable

35 The company has 5% Government Securities having face value of `

1,00,000 and cost ` 95,000. The interest on Government Securities
will be _____.
A. ₹ 5,000
B. ₹ 4,750
C. ₹ 9,750
D. ₹ 5,500

36 Security Premium ₹ 15,000 , General Reserve ₹ 50,000 , Net profit

during the year ₹ 1,87,500 and Opening balance of Profit and Loss
Account ₹ 20,000.During the year ₹ 1,00,000 transferred to general
reserve … What will be Reserve and Surplus
A. ₹ 2,72,500
B. ₹ 1,72,500
C. ₹ 72,500
D. ₹ 1,00,000

37 Following is not a contingent liabilities

A. Interim dividend
B. Liabilities under guarantees
C. Bills Discounted
D. Arrears of Preference Dividend
38 Creditors ₹ 20,00,000 , Unpaid Dividend ₹ 2,00,000 & Interest Payable ₹ 1,00,000
What will be the Amount of other current Liabilities
A. ₹ 2,00,000
B. ₹ 1,00,000
C. ₹ 3,00,000
D. ₹ 23,00,000

39 Goodwill w/off is added to N.P to get cash flow from _____.

A. Operating
B. Investing
C. Financing
D. d. Borrowing
40 Securities premium collected amounts to cash flow from___
A. operating activities
B. Financing activities
 C. Investing activities
D. d. Non-operating
41 Furniture on 31-3-2008 ` 5,00,000; Furniture on 31-3-2009 ` 8,00,00. During the
year the company charged depreciation of ` 50,000 and furniture costing `
12,000 depreciation provided ` 7,000 was sold at 60% profit on book value.
Cash inflow from investing activities will be,
A. a.10,000
B. b.11,500
C. c.12,500
D. d.8,000
42 12% Preference Shares on 31-3-2018 ` 5,00,000. On 31-3-2019 ` 3,50,000.
Dividend Paid on Preference shares Rs. 60,000. Cash flow from financing
activities will be
A. a.1,50,000
B. b.1,15,000
C. c.2,40,000
D. d. 60,000
43 Collection from debtors is
A. a Investing activities
B. b. financing activities
C. c. operating activities
D. d. Non financing activities
44 Increase in Debtors Rs. 1,00,000, Decrease in Bills Receivable Rs. 45,000,
Increase in Creditors Rs. 2,25,000. Net Increase /Decrease in Working Capital
will be Rs. ________
A. 1,70,000
B. 80,000
C. 2,80,000
D. d. 2,25,000
45 Decrease in outstanding expenses creates cash outflow from_____.
a Investing activities
b. financing activities
c. operating activities
d. Non financing activities
46 Creditors Opening Balance Rs. 1,00,000/- Closing Balance is Rs. 1,15,000/- There
is net _______.
A. Increase in Working Capital by Rs. 15,000
B. Increase in Working Capital by Rs. NIL
C. Decrease in Working Capital by Rs. 15,000
D. d. Decrease in Working Capital by Rs. NIL
47 Indian AS 102 is _____ IFRS 2.
A. Share based payment
B. Cash based payment
C. Converged
D. Bank based payment

48 Indian AS 101 provides for _____ from GAAP to Ind AS.

 A. Transition
B. Insurance contracts
C. Leases
D. Hirer

49 Impairment of financial assets is a _____ exemption.

Mandatory
Share based payment
Cash based payment
Bank based payment
50 Borrowing cost is an _____ exemption.
Business combinations
Optional
Mandatory
Share based payment

INTERNATIONAL BANKING AND FINANCE

The artificial currency created by IMF to be used as Supplementary Reserve Asset
1 is called as _________
A. SDR
B. Gold Coins
C. Paper Currency
D. Bitcoins
2 The Bretton Woods accord
A) of 1879 created the gold standard as the basis of international finance
B) of 1914 formulated a new international monetary system after the collapse of
the gold standard
C) of 1944 formulated a new international monetary system after the collapse of
the gold standard
D) of 1945 formulated a new international monetary system after the collapse of
the gold standard
If your local currency is in variable form and foreign currency is in fixed form
3 quotation will be:
A. indirect
B. direct
C. local form
D. foreign form
4 Not aim of international capital market is
A. preserving hard currencies to finance trade deficits
 B. reducing cost of money to borrowers
C. reducing investor risk
D. expanding money supply for borrowers
5 The difference between inward and outward is called the ______________FDI inflow
gross
Net
positive
negative
6 GDR can be converted into shares, shares can be coverted into GDRs. This is called _______________
one-way fungibility
two-way fungibility
three-way fungibility
four-way fungibility
7 S&P contains _____________ of the largest and most influential companies in U.S.
3000 +
500
100
150
_____________ issued by broker/dealer or depository bank without the involvement of company whose stock
8 underlines the ADR.
Unsponsored ADR
Sponsored ADR
Level I ADR
Level II ADR
9 Which of the following is not the Eurobond?
Straight Eurobond
Samurai bonds
Zero Coupon bonds
10 Issuers also issue __________________ based on the happening or not happening of the event.
Pay in Kind Bond
Zero Coupon bonds
Disaster bonds
indexed bond
11 Hedging with options is best recommended for
(A) Hedging receivables.
(B) Hedging payables.
(C) Hedging contingency exposures.
(D) Hedging foreign currency loans
_______________ is a process of taking advantage of differentials in interest rates of two currencies while eliminating
12 exchange risk.
(A) Hedging
(B) Insurance
(C) Covered – Interest Arbitrage
(D) Exposure
13 A swap is not:
A) a protection against downside interest or exchange rate risk
(B)a futures contract
 C a flexible derivative
(D)a hedging technique

14 EUR USD 1.5160/1.5220 Calculate mid-rate

a. 1.5190
b. 1.5189
c. 1.5199
d.1.5160

15 Trade between companies in two different countries is called as ___________.

Domestic trade
International trade
Business
retail trade
16 The crypto currency exchange Unocoin was established in ____________ in the town of Tumakuru in Karnataka.
Jul-14
Jul-10
Jul-13
Jul-12
17 Theory of Comparative Advantage is propounded by the economist _______________.
David Ricardo
Adam Smith
Heckscher ohline
Walter
A letter of credit which cannot be modified unless the exporter consents is called as ____________
18 L/C.
A. Non revolving
B. Non revocable
C. Non transferable
D. Transferable
19 Functions of loan syndication
A. Risk diversification
B. No trust
C. Illegal
D. No transparent Information
20 Following Fund based facilities are available EXCEPT
A. Pre- Shipment credit
B. Buyer’s Credit
C. Forfaiting
D. Letter of credit
21 Following are the functions of Credit Rating Agencies Except :
A. Provides superior information
B. Costly information
C. Base for a proper decision
D. Healthy discipline on corporate borrowers
22 A firm may seek to minimize marketing risks by undertaking ______________.
A) A Credit Facilities
B Training Salesmen
C Market Research
 D Branch Expansion

23 This is not established method of translation

(A) Current rate method.
(B) Monetary/Non-monetary method.
(C) Current/Non-current method
(D) Temporary method.
_______________ are issued by the bonds are issued by investment or holding company of a group to non-
24 residents which are exchangeable for the shares of the specified group company at a predetermined price
FCCB
FCEB
Euro Bonds
Yankee bonds
25 Indirect rate in foreign exchange means
(A) The rate quoted with the units of home currency kept fixed.
(B) The rate quoted with units of foreign currency kept fixed.
(C) The rate quoted in terms of a third currency

26 SEBI as set _____________ as the lower limit for IDR to be issued by the Indian Companies.
Rs.5 Crore
Rs.50 Crore
Rs.500 Crore
Rs.5,000 Crore
Under a system of floating exchange rates, a U.S. trade deficit with Japan will
27 cause:
A. A flow of gold from the United States to Japan
B. The U.S. government to ration yen to U.S. importers
C. An increase in the dollar price of yen .
D. A decrease in the dollar price of yen
28 A country with a pegged exchange rate is likely to be forced to devalue if
A. Speculators believe that it will devalue.
B. Its rate of inflation is smaller than inflation in other countries.
C. It has no comparative advantage in trade.
D. Its workers are less productive than workers elsewhere.
30 Which of the following is not the disadvantages of the Foreign Portfolio Investment?
Increase in the secondary market
There is shift from one market to another market – erratic nature
Political risk
emerging economic conditions
On August 15, 1971, __________ unilaterally suspended the convertibility of A
31 US dollars into gold.
A. President Richard Nixon
B. President George Washington
C. President John F. Kennedy
D. President Gerald Ford
________________ is the risk that an investor is willing to take or is comfortable with in the hope of getting
32 higher returns.
Risk averse
 Risk Tolerance
Risk return trade off
Risk Premium
33 A Japan company issuing US denominated bonds in the US market is example of ________
Domestic bonds
Foreign bonds
Eurobonds
Global bonds
34 Which of the following is not the advantage of Participatory Note?
Anonymity
Ease of trading
Easy to invest
Re-route of investment
35 IBRD lending is not available for
(A) middle income countries
(B) low income countries
(C) multilateral agencies
(D) developed countries
In _______________ agreement two borrowers raise money separately and then agree to make each other’s
36 interest payment, one in fixed and the other in floating rates
Participatory Note
Swap agreement
FCCB
FCEB

37 Maintaining a foreign currency account is helpful to

(A) Avoid transaction cost
(B) Avoid exchange risk.
(C) Avoid both transaction cost and exchange risk.
(D) Avoid exchange risk and domestic currency depreciation

38 ______________ is the risk that an investments value will change as a result of a change in interest rate.
Country Risk
foreign Exchange Risk
Interest rate risk
Political risk
39 ______________ is the risk that an investments value will change as a result of a change in interest rate.
Country Risk
foreign Exchange Risk
Interest rate risk
Political risk
40 The eurocurrency market did not develop until the late 1950s because:
A. European currencies were only convertible for non-residents before 1958.
B. US banks were not permitted to open branches outside the USA until 1958.
C. the major European economies had not recovered sufficiently from the effects
of World War II.
D. the countries of the Soviet bloc did not earn dollars in foreign trade until 1958.
41 By definition, currency appreciation occurs when
A) the value of all currencies fall relative to gold.
B) the value of all currencies rise relative to gold.
C) the value of one currency rises relative to another currency.
D) the value of one currency falls relative to another currency.
42 Devaluation of a currency means
A) Reduction in the value of currency vis a vis major internationally traded
currencies
B) Permitting the currency to seek its worth in the international market
C) Fixing the value of the currency in conjunction with the movement in the value
of a basket of predetermined currencies
D) Fixing the value of a currency in multilateral consultation with the IMF, the
World Bank, and major trading partners

43 ______________ refers to having the shares listed on one or more foreign exchanges.
Cross Listing
Yankee Stock Offerings
GDR
ADR
44 What are the forms of assistance that the World Bank provides to its members?
(A) Technical and financial
(B) Political and financial
(C) Political and economic
(D) Technical and military

45 A feature of currency option that distinguishes it from other derivatives is

(A) It carries premium to be paid up front.
(B) It is optional to enter into the contract.
(C) The buyer has only right, but no obligation to execute the contract
(D) The seller has the right, but no obligation to execute the contract.
Which of the following is not the Factor driving the growth and expansion of international equity markets
46 include?
a. advances in information technology
b. speed of privatization
c. deregulation by government
d. ADR negotiable instruments
47 Exchange of goods and services for something in value is called as ____________.
a. Trade
b. Bater system
c. virtual trade
d. exchange trade
Assurance given by the importer’s bank about the financial credibility of the borrower is called as
48 ________
A. Letter of credit
B. Gurantee
C. Letter of intent
D. Invoice
 49 The loan amount contributed by several lenders in a syndicated loan _______
A. Is equal
B. Is double
C. May or may not be equal
D. Decided by RBI
50 A Sovereign credit rating is the credit rating of a ________ i.e , a national government.
A. Sovereign entity
B. Multinational Company
C. Banks

Research Methodology
1) A Hypothesis must be …………….
a) Diffuse
b) Specific
c) Slow
d) Speedy

2) ………… is a quality of Good Researcher

a) Scientific temper
b) Age
c) Money
d) time

3) The Academic purpose of research is to have ……………….

a) Information
b) first-hand knowledge
c) Knowledge and information
d) models

4) Which of the following is not a data-collection method?

a) Research questions
b) Unstructured interviewing
c) Postal survey questionnaires
d) Participant observation

5) Which of the following is not a type of purposive sampling?

a) Probability sampling
b) Deviant case sampling
c) Theoretical sampling
d) Snowball sampling
6) What is a research design?
a) A way of conducting research that is not grounded in theory
b) The choice between using qualitative or quantitative methods
c) The style in which you present your research findings, e.g. a graph
d) A framework for every stage of the collection and analysis of data

7) In an experimental design, the dependent variable is:

a) The one that is not manipulated and in which any changes are observed
b) The one that is manipulated in order to observe any effects on the other
c) A measure of the extent to which personal values affect research
d) An ambiguous concept whose meaning depends on how it is defined

8) Why might secondary analysis be a particularly useful method for students?

a) It is relatively easy to do
b) It saves time and money
c) It does not require any knowledge of statistics
d) It only requires a half-hearted effort

9) Conducting surveys is the most common method of generating------

a)primary data
b)secondary data
c)qualitative data
d)fixed data

10) Statistics is used by researcher to -------

a)analysis the empirical data collected in a study
b)make their finding sound better
c)ensure the study
d)operatinally define their variables

.11) Primary data is _____________.

a) economical
b) out-dated
c) reliable
d) cheap

12)In _______ observation subjects do not know they are being observed.
a) disguised
b) undisguised
c) unstructured
d) structured

.13)_____Question offers limited choice.

a) Multiple
b) Dichotomous
c) Alternative
d) Referral
14) ._____is an indirect and impersonal method of conducting survey.
a) Questionnaire
b) Experiment
c) Observation
d) Interview
15) . Pilot questionnaire is followed by ________questionnaire.
a) final
b) first
c) second pilot
d) third pilot
16) Experimental method of data collection is _________ and_______
a) costly and lengthy
b) quick and economical
c) easy and safe
d) inflexible & complicated
17) ._________ data is enhances the quality of research work also makes the conclusion useful
for the society.
a) primary data
b) secondary data
c) transactional data
d) Tertiary
18) . _________ observation is made with the aid of electro- mechanical devices.
a) mechanical
b) direct
c) structured
d) unstructured
19) .______ is a two way interaction while collecting data.
a) interview
b) observation
c) mail
d) Experimentation
20) An ideal research includes_____ data
a) only primary
b) only secondary
c) primary & secondary
d) unprocessed

21)_______ can be used to test the hypothesis that the population variances are equal
a. One-Sample T-Test
b. Paired Sample T-Test
c. ANOVA
d. F- Test
22)_______ refers to statistically describing, aggregating, and presenting the constructs of
interest or associations between these constructs
a. Qualitative analysis
b. Quantitative analysis
c. Descriptive analysis
d. Bivariate analysis

23)_______ refers to the task of drawing inferences from the collected facts after an
experimental study
a. Analysis
b. Interpretation
c. Coding
d. Editing
 24) Identify the incorrect statement -
a. Verified data is coded
b. Editing ensures completeness and uniformity of data
c. Alpha-numerical code is not a part of coding
d. Interpretation of data is a creative process

25) Identify the correct statement -

a. Data processing means a critical examination of the assembled and grouped data for
studying the characteristics of the object under study
b. Data by itself is meaningful even though not edited or sorted
c. Interpretation of data is followed by analysis of data
d. Variability relates to how spread out a group of data is.

26) Identify the correct statement -

a. In ANOVA we use additive model
b. In ANOVA population can be non-normal
c. In ANOVA we test equality of variances
d. ANOVA is alternative to t-test

27) Which of these statements is incorrect?

a. Level of significance is size of Type 1 error.
b. The assumption of normality is not required for large sample test
c. The assumption of normality is required for t-test
d. The assumption of normality is not required for F-Test

28)Testing for independence of attributes is ______

a. F Test
b. t-test
c. ANOVA
d. Chi square test
29) ________ is a statistical method that is used in making statistical decisions using
experimental data
a. Hypothesis testing
b. Tabulation
c. Interpretation
d. Processing
30) The ANOVA technique for hypothesis testing was invented by _______
a. R.A. Fisher
b. Kempthorne
c. Montgomery
d. Hinkelmann and Kempthorne
31) Karl Pearson’s correlation coefficient for x and y = ________________ divide by
[SD(x) x SD (y)]
a. Cov (x, y)
b. v (x) v (y)
c. mean of x and y
d. median of x and y
32)When the value of correlation coefficient is between 0.3 to 0.7 it denotes ___________
e. Perfect positive correlation
f. Moderate positive correlation
g. Weak positive correlation
h. Strong positive correlation
33) When the value of correlation coefficient is between -0.7 to -0.3 it denotes
___________
a. Perfect negative correlation
b. Moderate negative correlation
c. Weak negative correlation
d. Strong negative correlation
34) When the value of correlation coefficient is between 0 to 0.3 it denotes
___________
a. Perfect positive correlation
b. Moderate positive correlation
c. Weak positive correlation
d. Strong positive correlation
35) When the value of correlation coefficient is between -0.3 to 0 it denotes
___________
a. Perfect negative correlation
b. Moderate negative correlation
c. Weak negative correlation
d. Strong negative correlation
36) When the value of correlation coefficient is 0 it denotes ___________
a. Perfect negative correlation
b. Moderate negative correlation
c. Weak negative correlation
d. Uncorrelated variables
37) When r = _____________, it implies that there is no linear relationship between two
variables.
a. 1
b. 0
c. -1
d. 0.7
38) ___________ is only measure of association and is of no use in prediction.
a. Regression
b. Factor analysis
c. Correlation
 d. Discriminant analysis
39) The basic objective of ___________ is to determine how many mutually and
exhaustive groups, based on the similarities of profiles among entities, really exist in
the population and then to state the composition of such groups.
a. Regression
b. Correlation
c. Multidimensional scaling
d. Cluster analysis
40) _____________ is applied as a data reduction or structure detection method.
a. Factor analysis
b. Cluster analysis
c. Multidimensional scaling
d. Discriminant analysis
41. __________includes the acknowledgement to the persons and sources that have
been helpful to the Investigator.
a) Preface
b) Table of Contents
c) List of Tables
d) Appendix

42. _________ is the main chapter headings and the essential subheading in each with the
appropriate page numbers against each.
a) Preface
b) Table of Contents
c) List of Tables
d) Footnote

43. _______consists of the titles or captions of the tables included in the thesis along with
the page number where these can be located.
a) Preface
b) Table of Contents
c) List of Tables
d) Footnote

44. Purpose & scope of the study conducted is mentioned in ______part of the research
report.
 a) Introduction
b) Review of literature
c) Conclusion
d) Main Body

45. ______contains meanings and definitions of difficult words or terms used in the report,
a) Footnote
b) Bibliography
c) Appendix
d) Glossary
46) Bibliography means
a) Foot Note
b) Quotations
c) List of Books referred
d) Biography

47) The first page of the research report is

a) Appendix
b) Bibliography
c) Index
d) Title Page

48) In Research Report ……………. is used to acknowledge indebtness

a) Bibliography
b) Index
c) Appendix
d) Foot note

49) What is the purpose of the conclusion in a research report?

a) It explains how concepts were operationally defined and measured
b) It contains a useful review of the relevant literature
c) It outlines the methodological procedures that were employed
d) It summarizes the key findings in relation to the research questions

50) Why is it important for a researcher to review the literature?

(a) Because it identifies like-minded researchers.
(b) Because it shows time has been spent on the subject.
(c) Because it is traditional.
(d) Because it will find if anyone has done the work before.
 STRATEGIC MANAGEMENT
1. _________is concerned with deciding which alternative is to be adopted to accomplish
the overall objectives of the organization.
a. Policy
b. Mission
c. Strategy
d. Specialization

2. Strategic management is concerned with ______ planning.

a. long-term
b. short-term
c. medium-term
d. high low term

3. _________ describes a company's overall direction in terms of its general attitude toward
growth and the management of its various businesses and product lines
a. Corporate strategy
b. Business strategy
c. Functional strategy
d. Specialization

4. An organizations _________establishes the values, beliefs and guidelines for the manner
in which the organization would conduct its business.
a. Mission
b. Vision
c. Philosophy
d. Specialization

5. BCG stands for _____________-

a. Boston Consulting Group
b. Business Consulting Group
c. Boston Communication Group
d. Business Case Group

6. Michael Porter's_________forces model determines the intensity of industry competition

and profitability.
a. 4
b. 5
c. 6
d. 7
7. ___ are set for a definite period of time.
a. Objectives
b. Goals
c. Targets
d. SOP
8. The policy statements guide managers in taking _______decisions
a. Right
b. Wrong
c. Harmful
d. Detrimental

9. In SWOT Analysis stands for _________.

a. Opportunities
b. Optimization
c. Old
d. Optimistic

10. In SMART Goals, S stands for ____________.

a. Special
b. Specific
c. Sustained
d. Social

11. The _______ environment consists of all those factors in the firm's immediate
environment.
a. Internal
b. Micro
c. Macro
d. Mini

12. _______refers to the analysis of internal and external environment analysis

a. Environment scanning
b. Strategic Management
c. Strategic Evaluation
d. BCG Matrix

13. Firms adopting ______strategy aims at moderate growth and profits.

a. Growth
b. Retrenchment
c. Specialized
d. Stability

14. In case of ________the organization takes a decision to sell its entire business and the
funds so realized can be invested in some other
a. Tumaround
b. Divestment
c. Liquidation
d. Specialized

15. _______strategy is an expansion strategy that involves marketing of firm's products

beyond national borders.
a. Internationalisation
b. Integration
c. Divestment
d. Specialized

16. In case of_________strategy, there is low pressure for cost reduction but high pressure
for local responsiveness.
a. Internationalization
b. multi-domestic
c. global
d. specialized

17. When a firm focuses on one or few segments, it adopts a _______strategy

a. cost leadership
b. differentiated
c. focus
d. Specialization

18. The __________department aims to improving quality, increasing quantity and reducing
cost of production.
a. Production
b. Marketing
c. Finance
d. HR

19. _________ activities relate to the development of new product or modification of the
existing product.
a. HR
b. Finance
c. Marketing
d. Research and development

20. The main responsibility of the business towards employees is ______________

a. To pay salary on time
b. work overload
c. exploitation
d. termination

21. Which of the following is not a part of socio-cultural environment?

a. Religion
b. Caste
c. Politics
d. Languages

22. PIN stands for __________

a. Personal Identification Number

b. Private Identity Number

c. Privilege Identity Number

d. Personal Information Number

23. www is an abbreviation for __________.

a. World wide word

b. World wide web

c. World Wide Wisdom

d. World wide woes

24. FDI stands for _________.

a. Foreign Domestic Investment

b. Free Direct Investment
c. Foreign Direct Investment
d. Free Debenture Investment

25. LPG was introduced in India in the year __________.

a. 1991
b.1993
c.2000
d.2010

26. Question Marks are also known as _____________.

a. High Growth Low Market Share

b. High Growth High Market Share
c. Low Growth Low Market Share
d. Low Growth High Market Share

27. _________strategy combines the effect of low cost and high local responsiveness.
A. International
 B. Multi domestic
C. Global
D. Transactional

28. When two or more firms come together to create a new business entity that is legally
separate and distinct from its parents, it is known as ____________.
A. Franchising
B. Joint ventures
C. Licensing
D. Wholly owned subsidiaries

29. ________ refers to the chain of relationships between the company and customers are
companies and their partners.
A. E-portal pattern
B. E-marketer pattern
C. E-channel pattern
D. E-digital pattern

30. ___________ develops new channels to satisfy the growing customer needs.
A. E-channel compression
B. E-channel expansion
C. E-channel innovation
D. Transaction enhancement

31. ___________ is not a part of the external environmental factors.

A. Suppliers
B. Resources
C. Dealers and customers
D. Competitors

32. Strategic __________ is the detailed investigation of the objective factors being
considered in the process of strategic choice.
A. Plan
B. Study
C. Design
D. Analysis

33. ___________ analysis is also known as Porter's Five Forces Analysis.

A. Corporate parenting
B. Corporate portfolio
C. Industry
D. Life cycle

34. ____________ is the detailed investigation of the objective factors being considered in
the process choice.
A. Strategic tool
B. Strategic technique
C. Strategic choice
D. Strategic attitude

35. _________structure is a hybrid of divisional and functional structure.

A. Line
B. Divisional
C. Matrix
D. Functional

36. ____________ is not a way of overcoming resistance to change.

A. Incentives
B. Involving those who resist in the change process
C. Communication and discussion
D. Bullying and harassing people

37. _________ is a structure which is set up in the organisation according to its purpose.
A. Divisional
B. Matrix
C. Functional
D. Line

38. The first step in the process of strategy implementation is ___________.

A. Strategy validation
B. Strategy articulation
C. Strategy communication
D. Strategy engagement

39. __________ resource is the most important resource of an organisation.

A. Physical
B. Human
C. Operational
D. Technological

40. __________ plays a key role in successful implementation of strategies.

A. Leadership
B. Motivation
C. Productivity
D. Efficiency

41. Strategy Evaluation Means _______

A. Comparing costs
B. Comparing time horizon
C. Comparing human resource
D. Comparing plans with actuals.

42. Strategy ___________ poses a threat to many managers and employees in an

organisation.
A. Articulation
B. Validation
C. Formulation
D. Implementation

43. ________ is a criteria that enables managers to evaluate future, current, or past actions.
A. Quantification
B. Evaluation
C. Standards
D. Timing

44. The development of __________as a specialised function can help organisations to

derive benefits from a vast amount of data available in most organisations.
A. Marketing
B. Operations
C. Human resources
D. Information management

45. __________ is not a barrier in the evaluation process.

A. Resistance to evaluation
B. Difficulties related to measurement
C. Focus on efficiency and not effectiveness
D. Operation control

46. __________ benchmarking requires less time and resources.

A. External
B. Process
C. Strategic
D. Internal

47. ___________ benchmarking is used by successful high performers in order to improve a

business's overall performance.
A. Performance
B. Strategic
C. External
D. Internal

48. ___________ control are critical situations that occur unexpectedly and threaten the
strategies.
A. Strategic surveillance
B. Special alert
C. Implementation
D. Premise

49. ___________ control is concerned with whether or not the organisation is "doing things
right".
A. Traditional
B. Contemporary
C. Informational
D. Behavioural
 50. ____________ analysis focuses on the entire organisation rather than just focusing on a
single activity or department.
A. Benchmarking
B. Industry norm
C. Quantitative
D. Comprehensive

FSM

1 Banking Sector comes under which of the following sectors ___________.

a) Marketing Sector
b) Service sector
c) Manufacturing Sector
d) Industrial sector

2 All merchant bankers must have minimum net worth of __________.

a) 5 crores
b) 1 crore
c) 10 crores
d) 20 crores.

3 _____________ includes all activities involved in the transformation of savings into investment.
a) Financial System
b) Financial Services
c) Economic System
d) Saving System

4 Which of the following is not the participants of mutual funds

Sponsor
trustees
asset management company
Custodian

5 Government bonds are the example of ______________

public sector mutual funds
Debt funds
Open ended funds
closed ended funds

Under SEBI Regulation Act 1996 _________________ is a person who has been granted certificate
6 of Registration to conduct the business issue and redemption of mutual fund units.

transfer agent
Distribution agent
 Custodian
Depository

7 Which of the following is not the reason for the slow growth of mutual funds in India?
Adequate information
cost factor
lack of experts
Underwriting

A transaction where financial securities are issued against the cash flow generated
8 from a pool of assets is called ______.
a. Discounting
b. Factoring
c. Securitization
d. Forfaiting

9 which of the following benefit of factoring?

Advisory service
chances of fraudulent
impose constraints
lead to over confidence

10 The trader who promises to sell in a future contract is said to be in __________.

a. Short position
b. Long position
c. Spot price
d. Strike price
11 _________ is an integral part of securitisation.
a. Cash
b. Borrower
c. Group of investors
d. Credit rating
It is a derivative transaction that gives the option holder the right but not the obligation to buy
or sell the underlying at a price called the strike price, during period or on
12 specific date in exchange for payment of a premium is known as __________.
a. Future
b. Option
c. Swap
d. Forward
13 The date/day on which option expires is called as ________.

a. Exercise date
b. Future date
c. Expiration date
d. Forward date
14 The compensation given by the insurance company known as ________.
a) markup
b) Tax
c) Claim
d) Profit

In Housing Finance ___________ are which actually include the charge payable towards
15 stamp duty, document grounding, Brokerage charges etc.
a) Capital Costs
b) Financing charges
c) Transaction charges
d) Fixed costs

__________ was the chairman of high-level group who recommended the set of
16 National Housing Bank (NHB).
a) M Narasimham
b) R N Malhotra
c) Dr Manmohan Singh
d) Rangarajan

17 The control banks roles important as the ____________ of credit.

a) Organizers
b) Operator
c) Controller
d) Lender

18 ____________ is not a part of Housing Finance.

a) Consumer Credit Finance
b) Development Finance
c) Rent Owned Finance
d) Micro considering Finance

19 Under _________ Principal and Interest amount is swapped for currency of different country.
a. Money swap
b. Interest swap
c. Currency swap
d. Country swap

20 In Hypothecation the possession of the security remains with the ______________.

a. Lender
b. Bank
c. Trader
d. Borrower
21 In pledge securities or goods are ______________ securities.
immovable
movable
tangible
intangible