MFS

1. The ______ has to manage the post-issue activities.

• Merchant banker
• Lead manager
• Bank promoter
• Bank manager

2. Choose the odd one out.

• NABARD
• EXIM
• SIDBI
• HDFC Bank

3. which is not the types of financial service

• Fund based services
• Insurance services
• Need based services
• Fee based services

4. Early stage financing includes

• Seed capital, start-up, mezzanine capital

• Seed capital, start-up, second-round financing
• Seed capital, start-up, buyouts
• Seed capital, start-up, bridge

5. Under Hire-purchase system depreciation is charged

• on cost plus markup

• on purchase price
• on cost price
• on market price

6. Which of the following is a VCF promoted by specialized financial institution.

• Indus venture capital fund
• SBI venture capital fund
• IDBI venture capital fund
• IL&FS venture corporation Itd

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

• net cash price

• net hire-purchase price
• hire-purchase price
• cash price installment

8. Under which circumstances drawer and payee is same person

• when drawer discounted the bill with banker

• when drawer endorse the bill to the third party
• when drawee rejects to accept the bill
• when drawer held the bill till maturity

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

• Lead management
• Merchant banking
• Issue management
• Public issue management

10. A market in which different currencies are brought and sold under regulated arrangement is

• Foreign exchange market

• Financial market
• Money market
• Capital market

11. 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

12. What is CRR

• Cash Reserve Ratio

• Current ratio rate
• Capital reserve ratio
• Credit rating recoed

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

• Venture capital
• hedge finance
• Merchant banker
• Hire pirchaser

14. Premium of group insurance premium is

• High
• Very high
• LoW
• Very low

15. RBI is involved in which of the following activities?

• Issuing Cheques
• Accept Deposits
• Issue Commercial Papers
• Issue Treasury Bills

16. 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

17. Financial intermediaries provide services on the basis of non fund activities, also called.

• Participating activity
• Fee based activity
• Commission based activity
• Salary based activity

18. is a form of financing of receivables

pertaining to international trade.

• Full factoring
• Domestic factoring
• Recourse factoring
• Forfaiting

19. The type of lease that includes a third party, a lender, is called a (n):

• sale and leaseback

• direct leasing arrangement
• leveraged lease
• finance lease

20. In case of leasing, advantage to lessor are

• tax shield, full security and high profitability

• tax burden, full security and high profitability
• tax sharing, full security and high profitability
• competion, full security and high profitability

21. NBFCs are classified based on the following criteria's

• activities undertaken
• kind of assets/liabilities
• size into deposit and non deposit taking
• All of these
22. form of loan financing carries lower interest rates
initially and; increases when the assisted venture units become commercially operational.

• Conventional loan
• Conditional loan
• Non-conditional loan
• quick loan

23. The facility that enabled 24x7 Fund Transfer is

• NACH
• IMPS
• Direct Debit
• NEFT

24. Which of the following is the property/ies of cryptocurrency?

• Permanence
• Anonymity
• Fast and universal
• All of these

25 The additional finance provided by VCFs to overcome fledging stage is called.

• seed capital
• Start up capital
• Second round capital
• First round capital

26. are the firms which provide wallet facility like

digital wallets or e-wallets for holding, storing and transfer of coins.

• Cryptocurrency exchange
• Trading App
• Trading platforms
• miner

27. is a player who authenticates the transactions

conducted on a blockchain by solving a "cryptographic puzzle".
• Cryptocurrency exchange
• Wallet facilitator
• Trading platforms
• miner

28. Which of the following is Not a NBFC?

• Housing finance company

• Chit fund companies
• Micro finance institutions
• Commercial banks

29. A loan is categorised as NPA if the interest or principal repayment is overdue for more than
a period of

• 180 Days
• 60 Days
• One Year
• 90 Days.

30. is the entity setup to buy NPA from Banks.

• Securitization Bank
• Bad Bank
• NPA Bank
• Asset Management Company

Assignment 2

2. Party involved in domestic factoring are

• customer and client

• customer and factor
• customer, client and factor
• customers, client and mediator
4. Which of the following is a type/s of a blockchain system?

• private blockchain system

• Premissioned blockchain system
• public blockchain system
• All of these

5. 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

6. The main instruments of organized money market are

• call money, commercials bills, treasury bill, commercial bank

• call money, commercials bills, treasury bill, hundi
• call money, commercials bills, treasury bill, certificate of deposite
• call money, commercials bills, treasury bill, chit-funds

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

example of

• credit enhancement
• securitization
• unbounding
• derivatives

10. The liquidity status of certificate of deposit which is negotiable is considered as

• certified liquidity
• term liquidity
• more liquid
• less liquid

11. 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

12. A form of direct short-term finance issued by large, credit worthy companies is called a

• commercial paper
• all money
• preference shares
• corporate stock

13. Which of the following members would you not find in the secondary stock market?

• Investors
• Stock exchanges
• Stock brokers
• Underwriters

14. Listing of shares at a stock exchange ensures

• guaranteed returns
• long term capital appreciation
• low risk
• high liquidity

16. Venture capital firms are usually organized as

• Limited partnership
• closed-end mutual funds
• Corporations
• Non profit business

18. is a method of renting assets.

• hire pirchase
• lease
• hedge finance
• credit rating
19. is an investment in a start-up business.

• mutual fund
• venture capital.
• working capital
• factoring

20. is an agreement to exchange an asset, for cash,

at a pre-determined future date specified today.

• Option
• spot contract
• forward contract
• General contract

21. Functions of financial services exclude

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

23. The private sector was granted permission to enter the mutual fund industry in

• 1993
• 1998
• 1995
• 1992

24. Discounting of bills of exchange is an attractive. based financial service provided by the
finance companies.

• fee
• fund
• opinion
• advisory

25. From the following information, find out who can draw the bill if A sold goods to B
• B will draw a bill on A
• A will draw a bill on B
• Third party draw a bill on A
• Third party draw a bill on B

26. is a cooperative society.

• Mutual Fund
• Insurance Company
• Credit Union
• RBI

27. NBFC in infrastructure finance company is primarily engaged in the business of

• providing finance to infrastructure sector

• collateral-free small amount loans to economically weaker sections
• provides long-term debt funding after the commencement of operations in infrastructure
projects which have been completed for at least 1 year.
• lending and investment

30. Which of the following is NOT an advantage of a blockchain system?

• Trusted distribution system

• Scalability
• No government intervention
• Secured system

Exam Answers

1. Lead manager
2. HDFC
3. Need based services
4. seed capital, start-up, second-round financing
5. on cost price
6. IDBI venture capital fund
7. net hire-purchase price
8. when drawer discounted the bill with banker
9. Issue management
10. Foreign exchange market
11. it provides a way to indirectly depreciate land
12. Cash Reserve Ratio
13. Venture Capital
14. Low
15. Issue Treasury Bills
16. Merchant banks
17. Fee based activity
18. Forfaiting
19. leveraged lease
20. tax shield, full security and high profitability
21. All of these
22. Conventional loan
23. IMPS
24. All of these
25. Second round capital
26. Cryptocurrency exchange
27. Miner
28. Commercial banks
29. 90 days
30. Bad Bank

Assignment 2

2. customer, client and factor

4. All the above

5. institute of chartered accountants of India
6. call money, commercials bills, treasury bill, certificate of deposits

9. securitization
10. more liquid
11. Treasury bills
12. commercial paper
13. Underwriters
14. high liquidity

16. limited partnership

18. lease
19. venture capital
20. forward contract
21. Collection of tax.

23. 1993
24. Fund
25. A will draw a bill on B
26. Credit Union
27. providing finance to infrastructure sector

30. Scalability