Finance Ba 1 Exam
Finance Ba 1 Exam
Finance Ba 1 Exam
A. Portfolio risk
B. Systematic risk
C. Unsystematic risk
D. Total risk
A.coefficient of variation
B. variance
C. covariance
D. certainty equivalent
A. equal to zero.
C. equal to one.
A line that describes the relationship between an individual security's returns and
returns on the market portfolio.
A. characteristic line
D. beta
According to the capital-asset pricing model (CAPM), a security's expected
(required) return is equal to the risk-free rate plus a premium
The risk-free security has a beta equal to ____________, while the market
portfolio's beta is equal to
C. zero; one.
C. a characteristic line.
D. the CAPM.
A. standard deviation
B. coefficient of variation
C. correlation coefficient
D. beta
The greater the beta, the ________________________ of the security involved.
B. the book value of the firm's assets less the book value of its liabilities.
What are the earnings per share (EPS) for a company that earned Rs 100,000
last year in after-tax profits, has 200,000 common shares outstanding and Rs 1.2
million in retained earning at the year end?
A. 100,000
B. 6.00
C. 0.50
D. 6.50
A. shareholder; manager
B. manager; owner
C. accountant; bondholder
D. shareholder; bondholder
___________ refers to meeting the needs of the present without compromising the
ability of future generations to meet their own needs.
B. Sustainability
C. Convergence
D. Green Economics
C. increases the market price of the acquirer's stock over what it would have
been without the acquisition.
A tender offer is
A. a goodwill gesture by a "white knight."
The public sale of common stock in a subsidiary in which the parent usually
retains majority control is called
A. a pure play.
B. a spin-off.
C. a partial sell-off.
D. an equity carve-out.
A. divestiture.
A. golden parachute.
B. red herring.
C. blue sky.
D. green shoe
A. Informational content.
B. Reduction of uncertainty.
A. a decline in EPS.
B. an increase in cash.
When the investment banker bears the risk of not being able to sell a new
security at the established price, this is known as:
B. underwriting.
C. shelf registration.
D. making a market.
Financial intermediaries
A 30-year bond issued by Tata Steel in 2014 would now trade in the
A. primary money market.
D. control inflation
A. A general partnership.
B. A corporation.
C. A sole proprietorship.
______________ is the price at which the bond is traded in the stock exchange.
A. Redemption value
B. Face value
C. Market value
D. Maturity value
Which of the following is an example of business liability?
A. Land
B. Building
C. Cash
D. Creditors
A. Franchise rights
B. Goodwill
C. Patents
D. Land
____________ and____________ carry a fixed rate of interest and are to be paid off
irrespective of the firms revenues.
A. Debentures, nDividends
B. Debentures, Bonds
C. Dividends, Bonds
B. Profitability index
In the _______________, the future value of all cash inflow at the end of time
horizon at
A. Risk-free rate
B. Compounding technique
C. Discounting technique
D. Risk Premium
What will be the impact on the cash reserves of commercial banks if RBI
conducts a sale of securities
A. Increase
B. Decrease
C. Remain constant
D. Increase or decrease
RBI takes certain steps to curb the menace of Inflation. In this context, which
among the following will not help RBI in controlling the inflation in the country?
Current affairs
A. 2.4% of GDP
B. 2.8% of GDP
C. 3.7% of GDP
D. 4.1% of GDP
A. 9 paise
B. 10 paise
C. 11 paise
D. 12 paise
A. Retained at 10%
B. Raised to 12%
C . Retained at 12%
D. Reduced to 12%
What is percentage of a rupee has been allocated to interest payment in Union
Budget 2013-14?
A. 17 paise
B. 18 paise
C. 19 paise
D. 20 paise
In Union Budget 2013-14 which of the following deficit has been estimate above
4% GDP?
A. Fiscal Deficit
B. Primary Deficit
C. Revenue Deficit
A. $ 345.4 billion
B. $ 358.2 billion
C. $ 365.3 billion
D. $ 385.6 billion
As per Budget 2013-14, with which of the following the maximum revenue will be
collected?
A. Corporate Tax
B. Custom Duty
C. Income Tax
D. Excise Duty
In Union Budget 2013-14, the target for 2013-14, agriculture credit has been
raised to-
A. Rs 550000 crore
B. Rs 575000 crore
C. Rs 650000 crore
D. Rs 700000 crore
The liability which becomes payable on the happening of some event is known as
B.current liability
C.contingent liability
D.none
A.board of directors
B.managers
C.employees
D.lenders
Goodwill is a
A.fictitious asset
B.fixed asset
C.current asset
D.intangible asset
A liability arises because of
A.cash transactions
B.credit transactions
D.none
A.capital
B.cash
C.revenue
D.Drawings
The primary market is that part of capital market which deals with issuance of
A.existing securities
B.new securities
C.both
D.None
When shares are issued at a price higher than face value it is referred to as a
issue a
A.premium
B.discount
C.par
D.none
The bonds which do not pay any interest during its entire life are called
C.discount bonds
D.all
Derivative instruments derive their value from an underlying asset which may be
a
A.commodity
B.financial instrument
C.interest rate
D.all
D.none
B.corporate restructuring
When shares are issued at a price lower than face value it is referred to as a
issue at
A.Discount
B.Premium
C.Par
D.None
When an unlisted company sells its securities to the public for the first time
through primary market route it is called
A.IPO
B.FPO
C.Right Issue
D.Bonus Issue
ANSWER: A
The mutual fund which is available for subscription at all times throughout the
year is called
C.interval fund
D.none
The mutual fund which is available for subscription at all times throughout the
year is called
C.zero; one.
ANSWER: C
D.the CAPM.
ANSWER: C
A 30-year bond issued by Tata Steel in 2014 would now trade in the
D.None
______________ is the price at which the bond is traded in the stock exchange.
A. Redemption value
B. Face value
C. Market value
D. Maturity value
In the _______________, the future value of all cash inflow at the end of time
horizon at
A.Risk-free rate
B.Compounding
C.Discounting technique
D.Risk Premium
A. Franchise rights
B. Goodwill
C. Patents
D. Land
The ability to convert financial resources into usable cash with ease is referred to
as:
A. bankruptcy.
B. liquidity.
C. investing.
D. saving.
E. opportunity cost
D.none
In finance, "working capital" means the same thing as
A.total assets.
B.fixed assets.
C.current assets.
if the two firms are merged along the value chain it is known as
A.vertical merger
B.horizontal merger
C.demerger
D.none
when different assets are pooled and repackaged into interest bearing securities
it is known as
A.hedging
B.securitisation
C.speculation
D.trading
Bonds issued in a currency other than that of the country in which they are
issued are called
A.euro bonds
B.international bonds
C.foreign bonds
D.all
When the price of the issue is discovered through demand and supply forces it is
called
D.none
A.RBI
B.SEBI
D.none
A ULIP is life insurance policy which provides the combination of _______ and
_______________
ANSWER: B
A.soverign risk
B.price risk
ANSWER: A
A.interest
B.coupon
D.none
A. Quick ratio
B. P/E- ratio
C. Inventory turnover
D. Equity multiplier
C. Congress
In order to identify the amount of funds that a firm borrowed during the
preceding year, what section is the best source within the Statement of Cash
Flows?
A. Operating flows
B. Investment flows
C. Financing flows
If you start with earnings before interest and taxes and then subtract a firms tax
expense while adding back the amount of depreciation expense for the firm
during the year, the resulting figure is called
B. To hold cash reserves of the commercial banks and make available financial
accommodation to them
A. Receiving of benefits
C. Providing of benefits
A. Franchise rights
B. Goodwill
C. Patents
D. Land
Which among the following statement gives the most correct definition of
Lender of Last Resort?
A. If a person or firm which is eligible to get a loan, does not get it from any
commercial bank, may
B. If the state governments are in crisis and need money for short term , they
can approach RBI for this purpose
D. Whenever the government declares a debt relief, the RBI will have to bear the
brunt of it.
The ability to convert financial resources into usable cash with ease is referred to
as:
A. Bankruptcy
B. Liquidity
C. Investing
D. Saving
E. opportunity cost
A. Total assets
B. Fixed assets
C. Current assets
Which financial statement displays the revenues and expenses of a company for
a period of time?
A. Balance sheet
B. Income statement
A. Revenues
B. Assets
C. Liabilities
A. Earned
B. Calculated
C. Contracted
A. Debit
B. Credit
C. Contra
A. Accounts Payable
B. Accrued Expenses
D. Cash
Which account increases equity?
A. Expenses
B. Treasury stock
C. Revenues
D. Withdrawals
A. Galloping inflation
B. Low inflation
C. Hyperinflation
D. Deflation
A. Lenders are worse off because they are repaid with currency that is worth
more
B. Lenders are worse off because they cannot find anyone who wants a loan
C. Borrowers are better off because they can pay off their loans with currency
that is worth less
D. Borrowers are worse off because they have to pay off their loans with currency
that is worth more
A. Liquidity
B. Risk
C. Blue
D. False
Net working capital refers to
D. Current assets
A. Systematic risk
B. Market risk
C. Unique risk
D. None of these
A. Face value
B. Redemption value
C. Market value
D. All of these
A. Logistics
B. Distribution
C. Financial
D. None of these
E. All
ANSWER: E
A. Current Profit,
B. Current Liabilities
C. Fixed Assets,
A. PAT Capital
B. DPS EPS
C. The government finances most of its credit needs in the money market
B. Income for the period exceeds consumption and real investment expenditure
A. The flow of savings of lenders to borrowers in return for the IOU of the
borrower
A. Informational content
B. Reduction of uncertainty
D. All
A. Managers
B. Researchers
C. Investors
D. All
A. Operational Profitability
B. Liquidity Position
C. Big-term Solvency
A. Fixed Assets
B. Sales
C. Purchases
D. Stock
B. Net worth
C. Shareholders Funds
D. None
A. PAT Capital
B. DPS EPS
B. Analysis of Profit
C. CapitalBudgeting
A. Net Purchases
B. Net Sales
C. Credit Sales
A. Average Sales
C. Total Purchases
D. Total Assets
C. ExpectedValue Analysis
A.Increasing Turnover
B.Reducing Expenses
C.IncreasingCapital Utilization
A.Current Profit
B.Current Liabilities
C.Fixed Assets
ABC Ltd. has a Current Ratio of 1.5: 1 and Net CurrentAssets of Rs. 5,00,000.
What are the Current Assets?
A. Rs. 5,00,000
B. Rs. 10,00,000
C. Rs. 15,00,000
D. Rs.25,00,000
A. Borrowing More
B. Issue of Debentures
C. Issue of EquityShares
D. Redemption of Debt
C. Earnings perShare
C. With otherindustries
A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000;Gross Profit of Rs.
2,00,000 and Expenses of Rs. 1,00,000.What is the Net Profit Ratio?
A. 20%
B. 50%
C. 10%
D. 40%
XYZ Ltd. has earned 8% Return on Total Assests of Rs.50,00,000 and has a Net
Profit Ratio of 5%. Find out the Salesof the firm.
A. Rs. 4,00,000
B. Rs. 2,50,000
C. Rs. 80,00,000
D. Rs. 83,33,333
A. Profitability Position
B. Liquidity Position
C. Market SharePosition
D. Debt Position
C. Interest CoverageRatio
D. Debtors Turnover
Gross Profit Ratio for a firm remains same but the NetProfit Ratio is decreasing.
The reason for such behavior couldbe:
B. If Increase in Expense
C. Increase in Dividend
D. Decrease in Sales
Debt to Total Assets of a firm is 0.2. The Debt to Equity boowould be:
A. 0.80
B. 0.25
C. 1.00
D. 0.75
Which of the following helps analysing return to equityShareholders?
A. Return on Assets
C. Net ProfitRatio
D. Return on Investment
A. Liquidity Ratios
B. Profitability Ratios
C. Solvency Ratios
D. Turnover
XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3Industry average. It
means that the firm has:
A. Higher Liquidity
C. HigherProfitability
A. Solvency
B. Liquidity
C. Profitability
D. Turnover
In Inventory Turnover calculation, what is taken in thenumerator
A. Sales
C. Opening Stock
D. ClosingStock
Which of the following are the two main components of the CPU?
A. SRAM
B. DRAM
C. ROM
D. All
A. Windows 98
B. BSD Unix
C. Microsoft Office XP
A. HUB
B. Switch
D. None
What is Software ?
C. Mathematical formula
D. None
A. Internet
B. Wireless network
C. Mobile Network
D. None
In 1983, which person was the first to offer a definition of the term 'computer
virus' ?
A. Smith
B. Cohen
C. Norton
D. Mcafee
A. RJ 11
B. RJ 45
C. RJ 12
D. RJ 44
Which of the following banks has launched Pocket, Indias first digital bank on
mobile phones?
A. Axis Bank
B. HDFC Bank
C. ICICI Bank
D. Corporation Bank
Which among the following cities is the venue for the first national tribal festival
VANAJ?
A. Kolkata
B. Dispur
C. Guwahati
D. New Delhi
Which one of the following committees has recently submitted its interim report
on the corporate bankruptcy legal framework in India?
A. Shashidharan Committee
B. T K Vishwanathan Committee
In which of the following years Rashtriya Khel Protsahana Puraskar scheme was
launched?
A. 2005
B. 2009
C. 2008
D. 2011
Recently, Facebook and which one of the following mobile operators have
partnered to start internet.org that provide free internet to mobile users in India?
A. Bharati Airtel
B. Reliance
C. Vodafone
D. Idea
A. North America
B. South America
C. Australia
D. Asia
A. Kiran Karnik
B. Deepak Nayyar
C. Anil Baijal
D. Onkar S Kanwar
The Vembanad Kol Lake which is South Indias largest wetland ecosystem, is
located in which of the following states?
A. Kerala
B. Goa
C. Tamil Nadu
D. Andhra Pradesh
What is Indias ranking in the recently released international intellectual property
(IP) index?
A. 24
B. 29
C. 30
D. 28
ANSWER:37
A. Silver
B. Copper
C. Gold
D. Iron
A. Part of the Indian territory for the purposes of trade operations and duties and
tariffs.
The time period between jobs when a worker is searching for, or transitioning
from one job to another is called as
A. Seasonal unemployment
B. Structural unemployment
D. Disguised unemployment
Current Foreign Reserves in India ( as of February 2015)
A. 330 Million US $
B. 150 Million US $
C. 100 Million US $
A. 50 US$
B. 85 US$
C. 100 US$
C. NRI deposit
A. 2016
B. 2017
C. 2018
The rate at which RBI lends money in the money market is called as..
A. Bank Rate
B. Repo Rate