1. CRISIL has been promoted by ____ and _____.

A. .ICICI, UTI
B. IDBI, SBI
C. AXIS, UTI
D. PNB, SBI

2. ___________ are financial assets

A. Bonds
B. Machines
C. Stocks
D. A and C

3. RBI is the apex ____ and _____institution of the money market in India.
A. statutory, financial
B. Financial, bank
C. Statutory, bank
D. None of the above

4. Nationalization of banks aimed at all of the following except

A. Removal of control by a few
B. Provision of control by a few
C. Provision of adequate credit for agriculture, small industry and export units
D. Encouragement of a new class of entrepreneur

5. The advance value of LIC policy is linked with

A. Face value
B. Surrender value
C. Paid up value
D. Depending on the age of policy holder

6. State Bank of India is a

A. Public Sector Bank
B. Private Sector Bank
C. Joint Sector Bank
D. Non-Nationalised bank

7. Dividends are paid________________.

A. monthly.
B. quarterly.
C. semi-annually.
D. Yearly

8. When did the National Bank of Agriculture and Rural Development establish?
A. July, 1982
B. July, 1969.
C. June, 1951
D. June, 1961

9. Which is the largest public sector bank in India?

A. SBI
B. Central Bank of India
C. Canara Bank
D. Bank of Baroda

10. Which is the largest private sector bank in India?

A. AXIS BANK
B. ICICI bank
C. HDFC bank
D. IDBI

11. What is the full form of CRISIL?

A. Credit Rating Information Services of India Limited
B. Credit Rating Investment Services of India Limited
C. Credit Rating Insight Services of India Limited
D. Credit Rating Indian Services for Investment and Liability

12. EXIM Bank was set-up in:

A. 1980
B. 1982
C. 1986
D. 1984

13. In which year was the Banking Regulation Act passed?

A. 1949
B. 1950
C. 1952
D. 1953

14. State level financial institutions are:

1. IFCI
2. SFCs
3. SIDCs
4. IRBI
5. SIICs
a. 1, 2, 4
b. 2, 3, 5
c. 1, 3, 5
d. 1, 4, 5
15. Identify the money market instruments:
1. Call Money Market
2. Treasury Bills
3. Commercial bills
4. Commercial paper
5. Certificate of deposit
6. Foreign investment policy
a. 1, 2, 4, 5, 6
b. 2, 3, 4, 5, 6
c. 1, 2,3, 4, 5
d. All of the above

16. What is the full form of ‘ULIP’, the term which was in the news recently?
(a) Universal Life & Investment Plan
(b) Uniformly Loaded Investment Plan
(c) Unit Linked Insurance Plan
(d) Unit Loan & Investment Plan

17. The insurance services provided by Banks is commonly known as_____

(a) Bancassurance
(b) Investment Banking
(c) Merchant Banking
(d) Portfolio Management

18. When was Deposit Insurance and Credit Guarantee Corporation established under
RBI?
(a) 1978
(b) 1981
(c) 1979
(d) 1975

19. what is E sign act?

A. Electronic sign act
B. Electronic signatures in global and national commerce act
C. Electronic signatures in national and global act
D. none of the above

20. A bankers cheque is

A. A local DD
B. an outstation DD
C. an outdated cheque
D. A prorata cheque

21. bank does not give loan against

A. gold
B. LIC policy
C. lottery ticket
D. NSC

22. Life insurance means

A. Insurance of human
B. Insurance of life of human and Cattle
C. Insurance of Life of Machines
D. all the above

23. Certificate of deposits are known as-

A. Negotiable Certificate of Deposit
B. Certificate of Deposit
C. Commercial certificate
D. None of the above

24. What is Uberrima fides?

A. Principle of general interest
B. Principle of indemnity
C. Principle of contribution
D. None of the above

25. How many parties are involved in Letter of Credit?

A. 2
B. 3
C. 4
D. 5

26. What it is called if the money is lent for 1 day?

A. Call money
B. Notice money
C. Term money
D. None of the above

27. What is/ are the function (s) of financial system?

1. Provision of liquidity
2. Mobilisation of services
3. Size transformation functions
4. Maturity and risk transformation functions
A. 1, 2, 3
B. 2, 3, 4
C. 3,4
D. 1,2,3,4
28. What is full form of IIBI?
A. Industrial Investment Bank of India
B. Investment Industrial Bank of India
C. Institute Investment Bank of India
D. Indian Investment Bank for Industries

29. SHCIL was not setup by which organization?

A. ICICI
B. IDBI
C. UTI
D. SBI

30. Minimum period for fixed deposits is

A. 10 days
B. 2 weeks
C. 1 month
D. 7 days

31. Hypothecation refers to

A. Delivery of movable goods
B. Change of movable goods
C. Change in immovable property
D. None of the above

32. When and where was the first mutual fund was established?
A. New york, 1932
B. Boston, 1924
C. Hong kong, 1924
D. Mexico, 1926

33. Which one is different from this group?

A. Leverage bonds
B. Balanced bonds
C. Open ended bonds
D. Equity bonds

34. In which year SEBI regulated the rules for Mutual funds?
A. 1994
B. 1993
C. 1995
D. 1992

35. The functions of mutual fund company can be described as

A. Collection of funds from public
B. Investment of funds collected from the public in capital market
C. Proper management of investment portfolio as a trustee to the investor’s money
D. All of the above

36. How many parties are involved in setting up a mutual fund organization?
A. Two
B. Three
C. Four
D. Five

37. In which type of fund has the main motivation of income generation?
A. Open ended fund
B. Close ended fund
C. Taxation funds
D. Leverage funds

38. What is the main objective of the income fund?

A. Declare dividend
B. Capital appreciation
C. Both a and b
D. None of the above

39. What is the main objective of leverage funds?

A. Capital appreciation
B. Regular income
C. Tax rebate
D. Increase the size of the value of the portfolio

40. In which scheme of mutual fund one can get a tax deduction?
A. Leverage fund
B. Open ended fund
C. Close ended fund
D. Taxation fund

41. Which of the following give finance to young, start-up companies?

A. Venture capital firm
B. Finance company
C. Small-business finance company
D. Capital-creation company

42. What is the full form of VCT?

A. Venture Capital Trusts
B. Venture Capital Trading
C. Value Capital Trading
D. Value Capital Trusts
43. VCTs invest in which of the following assets?
A. Any new start up company
B. Company listed in Stock Exchange
C. Companies listed on AIM.
D. None of the Above

44. Which of the following clearly defines venture capital?

A. It is a fund provided to industries at times of incurring losses.
B. It is a long-term start-up capital provided to new entrepreneurs.
C. It is a fund provided for renovation of industries.
D. It is a short-term capital.

45. The idea of providing factoring services was first thought of in India by which of the following?
A. Tandem Committee
B. Patel Committee
C. Malhotra committee
D. Vaghul committee

46. Venture capital was originated in which of the following countries?

A. India
B. Britain
C. France
D. USA

47. Which of the following is considered to be the father of venture capital?

A. Dariot
B. Modigliani
C. Vaghul
D. Jimmy carter

48. Which of the following exactly define the meaning of Mezzanine Financing?
A. It is a hybrid of debt and equity financing.
B. It is the highest-risk form of debt, but it offers some of the highest returns.
C. It allows companies with less collateral to secure funding for growth.
D. All of the Above

49. Which of the following are the different routes for the Venture Capital Exit?
A. IPO
B. Promoter buyback
C. Mergers and Acquisitions
D. All of the Above

50. The need for Venture Capital Financing was highlighted by which of the following committee in
India?
A. Bhatt Committee
B. Gadgil Committee
C. Urjit Patel Committee
D. None of the Above

51. Hire Purchase system is governed by:

A. Hire Purchase Act, 1972
B. Sale of Goods Act
C. Installment Act.
D. Properties Registration Act.

52. Installment system is governed by:

A. Hire Purchase Act.
B. Sale of Goods Act
C. Installment Act.
D. Properties Registration Act.

53. Under hire purchase system, the agreement can be _________ anytime.
A. Renewed.
B. Registered.
C. Terminated.
D. Endorsed.

54. When an asset is acquired on hire purchase system, the asset account is debited with _______ of
the assets in the books of the hire purchaser.
A. Hire purchase price
B. Cash price
C. Instalment price
D. None of these

55. On the balance sheet of a company, the value of the asset bought through hire purchase will
appear as:
A. Cost less depreciation to date less Balance in hire vendor’s account
B. Cost less amounts owing on hire purchase
C. Cost less depreciation to date less amount owing on hire purchase
D. Cost less depreciation to date

56. The depreciation on an asset purchased through hire purchase should be:
A. Should be straight line only
B. Based on the cost price of the asset only
C. Based on the total cost including interest
D. No depreciation should be provide until the final payment is made

57. Ownership of goods under hire purchase agreement is transferred at the time of :
A. Payment of down payment
B. Payment of first instalment
C. Full and final Payment of last instalment
D. None of these

58. The act of buying an asset without having to make full payment in the immediate future is known
as:
A. Hire purchase
B. Finance lease
C. Operating lease
D. Sale and leaseback

59. The amount of interest is credited by the buyer to:

A. Hire purchase Account
B. Hire Vendor Account
C. Interest Account
D. None of these

60. Hirer charges depreciation is calculated and shown in the books of hirer/Vendee:
A. Hire purchase price
B. Cash price.
C. None of these

61. What is transferred to Hirer under hire purchase system:

A. Ownership of assets
B. Possession of asset
C. Ownership and possession of asset
D. None of these

62. Under hire purchase system, _________has the right of sell.

A. Vendee/Hirer
B. Hire Vendor.
C. Debtor
D. None of these

63. Under hire purchase system, the retail price of the articles is called:
A. MRP.
B. Wholesale Price
C. Retail Price.
D. Cash Price.

64. The Initial amount paid hire purchase system is called:

A. Cash Price.
B. Retail Price.
C. Interest
D. Down Payment
65. Under hire purchase system, interest is calculated on:
A. Cash Price.
B. Hire Purchase Price
C. Outstanding Balance.

66. If the hire purchaser fails to make payment of any installment, it is called default and the vendor
has the right of:
A. Default.
B. Repossession.
C. Sale.
D. None of these

67. If the hire vendor may take away all the goods on which there is default of installment it is called:
A. Repossession .
B. Partial Repossession.
C. Complete Repossession.
D. None of these

68. The hire vendor takes away only a portion of the goods on which there is default of Installments it
is called:
A. Repossession
B. Partial Repossession
C. Complete Repossession.
D. None of these

69. In the books of Hirer, the interest and depreciation account will be transferred to:
A. Trading account
B. P & L account
C. P & L appropriation account
D. Balance sheet.

70. Nature of hire purchase agreement is :

A. Agreement of sale
B. Option to transfer.
C. Option to buy.
D. Option to sell.

71. In case of Hire-Purchase the total sum payable by the hire-purchaser as per terms in order to
complete the transactions is
A. Net Cash Price
B. Net Hire-Purchase Charges
C. Hire-Purchase Price
D. Cash Price Instalment

72. The price at which the goods can be purchased by the hirer for ready cash is known as:
A. HP price
B. Installment price
C. Cash price
D. Down payment

73. The difference between hire purchase price and the cash price is called:
A. Hire charges /Total Interest
B. Cost of the asset
C. Installment price
D. Cash price

74. The value at which goods are reposed is transferred to _______ in the books of the vendor.
A. Asset account
B. Goods account
C. Goods repossessed account
D. None of these

75. Cash Price equals to

A. Hire purchase price – total interest
B. Down payment in cash
C. Down payment + Interest
D. None of the above

76. Which among the following is/are correct regarding Money Market?
a) Money Market is a market for short-term funds
b) Maturity in this market ranging from overnight to one year
c) The basic function of money market is to provide efficient liquidity position for commercial banks,
financial institution, Mutual funds, insurance companies, corporate etc
d) Maturity in this market is above one year
Select the correct answer from following options:
A. Only a and b
B. a, b and c
C. b, c and d
D. All are correct

77. Which among the following is/are correct regarding Call Money?
a) It is the money lent/borrowed for maximum period of 14 days
b) No Collateral is required in Call Money transaction
c) It is the money lent/borrowed for maximum period of 30 days
d) Banks borrow primarily from the inter-bank (call money) market
Select the correct answer from following options:
A. a, b and d
B. a, b and c
C. b, c and d
D. All are correct

78. _______ is a link between savers & borrowers, helps to establish a link between savers &
investors
A. Marketing
B. Financial market
C. Money market
D. None of these

79. Which of the following is the function of financial market?

A. Mobilization of savings
B. Price fixation
C. Provide liquidity to financial assets
D. All of the above

80. __________ is the organisations, institutions that provide long term funds.
A. Capital market
B. Money market
C. Primary market
D. Secondary market

81. When securities are allotted to institutional investors & some selected individuals is referred to
as _________.
A. Initial public offer
B. Offer through prospectus
C. Private placement
D. Offer for sale

82. Stock exchange is known as __________ market for securities.

A. Primary market
B. Secondary market
C. Capital market
D. None of the above

83. _________ is a market for lending & borrowing of short term funds.
A. Money market
B. Primary market
C. Capital market
D. All of the above

84. ____________ is also called zero coupon bond.

A. Trade bills
B. Call money
C. Treasury bills
D. Commercial papers

85. Which of the following are the instruments of money market?

A. Call money
B. Certificate of deposits
C. Trade bills
D. All of the above

86. 86. Commercial paper cm be issued

A) by all corporates
B) by all corporates with net worth of atleast Rs. 10 crore
C) by all corporates with net worth of atleast Rs. 5 crore
D) can be issued only by banks

87. Commercial bills market is a part of

A) organised money market
B) unorganised money market
C) stock market
D) capital market
E) None of the above

88. Interest is usually paid on money market instruments

A) at maturity
B) on request
C) twice a year
D) annually

89. Which of the following is not a money market instrument?

A) Treasury Bills
B) Commercial Paper
C) Certificate of Deposit
D) Equity Share

90. Which of the following cannot issue a Commercial Paper?

A) Companies
B) Primary Dealers
C) Commercial Banks
D) All Indian Financial Institution

91. Maximum period for which a commercial paper can be issued is

A) 3 months
B) 6 months
C) 1 yr
D) 2 yr

92. Treasury Bills means

A) salary bills drawn by Government officials on the treasury
B) bills drawee by the Government contractors and other suppliers on the treasury for the dues
owed to them by the Government
C) obligation of the Government of India issued by the Reserve Bank of India and payable normally
91 days after issue
D) a mode of drawings by the Treasury Office on the Reserve Bank of India
E) None of the above

93. Which one of the following is the major component of the money supply in the Indian Economy?
A) Currency component
B) Deposit component
C) Treasury bill with public
D) Both a and b
E) Both b and c

94. Which of the following organisations is known as the market regulator in India?
A) IBA
B) SEBI
C) AMFI
D) NSDL
E) None of these

95. Which of the following was the first mutual fund listed on the newly launched mutual fund
platform on National Stock Exchange?
A) UTI Mutual Fund
B) SBI Mutual Fund
C) LIC Mutual Fund
D) Bank of Baroda Mutual Fund
E) None of the above

96. Which of the following best describes the Securities and Exchange Board of India?
A) SEBI is the regulator for the capital markets
B) SEBI protects the interest of investors
C) SEBI is for ethical practices
D) All of the above
E) None of the above
97. The maturity period of a cash management bill can be
A) less than 364 days
B) less than 182 days
C) less than 91 days
D) any period at discretion of the Govt.
E) None of the above

98. A.......... is a type of transferable financial instrument traded on a local stock exchange of a
country but represents a security issued by a foreign publicly listed company.
A) depository receipt
B) derivative
C) option
D) participatory notes
E) None of these

99. What is the maturity period of treasury bills issued by Govt. of India?
A) 14 and 91 days
B) 91 and 182 days
C) 14 and 182 days
D) 91, 182 and 364 days
E) None of these

100. First share market in India was established in

A) Delhi
B) Mumbai
C) Kolkata
D) Chennai
E) None of these

1 A 26 A 51 A 76 B
2 B 27 D 52 B 77 A
3 C 28 A 53 C 78 B
4 B 29 D 54 B 79 D
5 B 30 D 55 A 80 A
6 A 31 B 56 B 81 C
7 D 32 B 57 C 82 B
8 A 33 C 58 A 83 A
9 A 34 B 59 B 84 C
10 B 35 D 60 B 85 D
11 A 36 B 61 B 86 C
12 B 37 A 62 B 87 A
13 A 38 A 63 C 88 A
14 B 39 D 64 D 89 D
15 D 40 A 65 C 90 C
16 C 41 A 66 B 91 C
17 A 42 A 67 C 92 C
18 A 43 C 68 B 93 D
19 A 44 B 69 B 94 B
20 A 45 D 70 C 95 A
21 C 46 D 71 C 96 D
22 A 47 A 72 C 97 C
23 A 48 D 73 A 98 A
24 D 49 D 74 C 99 D
25 B 50 A 75 A 100 B