Bid2Win 2021 Questions

3. Which of the following is not an effect of the following transaction:

A machine bought for Rs.50000, additional Rs.1500 spent on
installation is being sold at Rs. 20000 after 10 years. Depreciation was
calculated at 10% dvm.
A. Profit of Rs. 2043.06 will be recorded in the income statement
B. Profit of Rs. 47.84 will be recorded in the income statement
C. Rs.20000 will be added in the cash flow statement
D. Assets worth Rs. 17956.94 will be deducted in Balance sheet

6. What is the likely ‘β’ for risk-free securities issued by the Government
of India?
a. 1
b. 0
c. 0.98
d 0.5

7. Among the pairs given below, select an example of a principal and an

example of an agent, respectively?
(a) Shareholder; manager
(b) Manager; owner
(c) Accountant; bondholder
(d) Shareholder; bondholder

8. Which Company had the best IPO debut during the last week in terms
of listing gain?
a. Paytm
b. Policy Bazaar
c. Sigachi
d. Nykaa

9. Cryptocurrency relating to which OTT series made waves recently by

rising over 2400% in less than 24 hours of launch?
a. Loki
b. Squid game
c. Queen's Gambit
d. Money Heist

11. What is the market risk premium if the government securities provide
5.3% interest, the expected return of the portfolio is 12.5%, given that
the beta is 1.4
a. 4.73
b. 5.14
c. 6.05
d. 5.64

12. Who is the top Shareholder in Zee Entertainment Enterprises who is

calling for EGM?
a. Amansa
b. Invesco
c. Essel
d. LIC

13. If the intrinsic value of a share is more than the market value,
What would you do?
a. Buy the share
b. Short Sell
c. Wait for the share price to reach Market Value
d. None of the above

14. Which of the following IPO witnessed a 27% drop on debut on its
listing day
a. FSN E-Commerce Ventures Limited
b. Fino Payments Bank Limited
c. One 97 Communications Limited
d. S.J.S. Enterprises Limited

16. Long term T-bond rate = 10%, Beta of company stock = 1.64.
Benchmark market return = 18%. Calculate the expected return on
equity in percentage.

a. 23.12%
b. 25.15%
c. 22.36%
d. 24.52%

18. Common liquidity ratios does not include the

 a. Quick ratio
b. Days sales outstanding ratio
c. Current ratio
d. Interest coverage ratio

19. How much net income or profit is generated as a percentage of revenue

is called
a. Net profit margin
b. Investment
c. Inventory
d. Income

21. What affects bond prices?

a. The Capital interest rate and debit quality of the issuer
b. The current interest rate and the credit quality of the issuer
c. The depreciation rate and the credit quality of the issuer
d. The projected interest rate and the debit quality of the issuer

22. Which of the following correctly represents the weightage of sectors

in Nifty 50 in decreasing order?
a. Financials>IT>Oil & Gas
b. IT>Financials>Oil & Gas
c. Financials>Pharma>Auto
d. Financials>Construction>Auto

23. Who is a credit hungry person?

a) Applied for credit from more than one lender
b) Applied for a large amount of loan
c) Someone who likes funding everything on loans
d) None of the above

24. What is the correlation between credit score and interest rate?
a) High credit score, high interest rate
b) High credit score, low interest rate
c) High interest rate will lead to high credit score
d) None of the above

26. How many different terms are available for a fixed rate mortgage?
a) four
b) two
c) one
d) five

28. Which of the following is true when the bond is trading at discount?
a. Coupon Rate>Current Yield > Yield to maturity
b. Coupon Rate< Current Yield <Yield to maturity
c. Coupon Rate = Current Yield = Yield to maturity
d. Coupon Rate < Current Yield = Yield to maturity

38. Who among the following has held the office of finance minister the
longest?
a. Manmohan Singh
b. P. Chidambaram
c. Pranab Mukherjee
d. Arun Jaitley

39) Which method could be used for capital budgeting of projects whose
life span is not predictable?
a. Net present value
b. Internal rate of return
c. Simple payback
d. Discounted payback period

40) From the companies point of view, the current assets - current
liabilities must be
a. equal
b. Positive
c. Negative
d. None of the above

41) Porter Logistics merged with another logistics company in the year
2018. The parent company of this
new partner company is
a. Tata Groups
b. Reliance Industries limited
c. Blue dart express limited
d. Mahindra and Mahindra
43) A company is considering whether or not to proceed with an
investment project that requires an initial outlay of INR 100,000. The
after-tax cash inflows are estimated to amount to INR 20,000 at the end
of the first and second year and to INR 30,000 at the end of the third,
fourth, and fifth year. The required rate of return for the project is 4.4%.
The net present value for the project is closest to:
a. INR 12,321
b. INR 13,314
c. INR 14,214

44)

The point where NPV profile line crosses the horizontal axis, is the
discount rate which is:
a. Cost of capital
b. WACC
c. IRR

45 .Which set of Financial institutions have been the MOST active investors in
FinTechs (measured by total number of funding, and acquisition deals done) during
2016-20
a. Goldman Sachs, Morgan Stanley, JPMorgan
b. BBVA, Morgan Stanley, Bank of America
c. JPMorgan, Citi, Goldman Sachs
d. Goldman Sachs, Capital One, Barclays
 46. Which sector in finance has attracted the MOST cumulative startup
capital in the last 5 years (i.e. startups in which industry vertical have received
the most funding, from VCs and other sources)
a. Retail Banking
b. Lending
c. Payments
d. Investing (institutional asset management) and Wealth management
(financial advice, retirement services)
e. Insurance (Property & Casualty, Life & Annuity)