VITTSHALA – THE FINANCIAL LITERACY CELL

Shri Ram College of Commerce, University of Delhi,Maurice

Nagar, Delhi-110007
Website: www.vittshalasrcc.org Email: vittshala@srcc.edu.in

National Finance Olympiad

The Olympiad will contain questions based on Financial Markets, Economics, Business Studies, Investment
and Banking. These questions will be across three types which are Basic Conceptual Understanding, Data
Analysis and Case Study Question.

Sample Questions

Basic Conceptual Questions

1. Atal Innovation Mission is set up under the
a. Department of Science and Technology
b. Ministry of Employment
c. NITI Aayog
d. Ministry of Skill Development and Entrepreneurship

2. Which of the following might you see roaming a stock market?

a. Mice
b. Goats
c. Cows
d. Bulls

3. The NADAQ index is used to measure stock market performance in which country?
a. United Kingdom
b. United States of America
c. France
d. Germany

4. The most rigid exchange rate system (does not allow adjustment) is:
a. Bretton Woods System of Exchange Rate
b. Gold Standard System of Exchange Rate
c. Flexible Exchange Rate System
d. None of the above

5.Which of these documents is not required to open a demat account?

a. Proof of identity
b. Proof of address
c. Proof of education
d. Proof of income

6. Which of the following tax is not subsumed by GST?

a. Purchase tax
b. Entry tax
c. Octroi tax
d. Vehicle registration tax

7. The financial intermediary that obtains funds largely through premium payments and uses them to
purchase corporate bonds and mortgages is called:
a. Mutual Funds
b. Life Insurance Companies
c. Credit Unions
d. Pension Funds

DATA ANALYSIS QUESTION

The graph given below shows the data of the production of rubber (in lakh tonnes) by three companies X, Y
and Z over the years.
Production of Paper (in lakh tonnes) by Three Companies X, Y and Z over the Years.
8. For which of the following years, the percentage rise/fall in production from the previous
year is the maximum for Company Y?

a. 1997

b. 1998

c. 1999

d. 2000

9. What is the ratio of the average production of Company X in the period 1998-2000 to the
average production of Company Y in the same period?

a. 1:1

b. 15:17

c. 23:25

d. 27:29

10. In which year was the percentage of production of Company Z to the production of
Company Y the maximum?

a. 1996

b. 1997

c. 1998

d. 1999

Case Study Question

Caru India Ltd. is a company engaged in manufacturing juices since 2001.. Over this period, a large num of
competitors have entered the market and are putting challenge to 'Caru India Ltd.'. To face this challenge
and to its market share, the company has decided to replace machinery with an estimated cost of 25 crores.
To raise the finance, the company decided to issue 9% debentures. The finance department of the company
has estimated that the cost of issuing the 9% debentures will be Rs.10,00,000.
A supporting machine is also bought separately for 2,50,000. This machine is depriciated @ 10% p.a. on
Reducing Balance Method basis. After three years, the machine is sold for 1,00,000. Answer the following
questions:-
11. Which of the following is most suitable for meeting flotation cost.

a. Commercial paper
b. Treasury bills
c. National savings certificate
d. Certificate of deposits

12. 'X' earned profit or loss by the sale of the machine?

a. Profit
b. Loss
c. Sold with no loss and no gain
d. Can't say

13. What is the amount of profit/loss gain/suffered by 'X' from the sale of the machine?

a. र 15,000

b. र 8,225

c. र 7,500

d. र 17,500

Answers
1)c 2)d 3)b 4)b 5) c 6)d 7)a 8) a 9) c 10) a 11) a 12) b 13) b