01. A Blue Chip means
a) Excellent Management
Professional
b) Shares of good
Companies
c) Reinforced Concrete
d) Blue Coloured
Precious Stones
02. A Bridge finance is
extended for overcoming
a) Delay in getting of
the public issue
b) Delay in disbursement
of term loan
c) Delay in disbursement
of working capital for completing the documentation
d) For A & B
e) A, B & C
03. As per SEBI
guidelines , any entity /person engaged in the marketing and selling of mutual
funds products is required to pass a
certification test and obtain a registration number from case of
a) SEBI (Securities and Exchange Board of India)
b) AMFI (Association of Mutual Funds in India )
c) NSE (National Stock Exchange)
d) A, B & C
04. Interest charged in
advance accounts as per RBI directive can not be subject to scrutiny by
court. This is provided in
a) Section 35A of BR Act
b) Section 21(A) of BR
Act
c) Of BR Act
d) Section 26 of RBI Act
05. A floating charge
means
a) Charge at the time or
before the company is floated
b) Charge on all
floating assets of the company
c) An equitable charge
on all assets of the company
d) Any of the above.
06. The charge by way of
lien over goods belonging to a company must be registered with Registrar of
Companies within a period of
a) 30 days of creation
of law
b) This charge need not
be registered as this is not hypothecation, mortgage etc
c) 30 days of default in
repayment
d) A or C whichever is
earlier
07. Hypothecation is
defined in
a) Hypothecation Act
b) Indian Contract Act
c) Transfer of Property
Act
d) SARFAESI Act
08. The State Govt. wants
to seize the goods pledged to bank as the borrower has defaulted in payment of
tax. In this case,
a) Govt dues enjoys
priority over bank dues
b) Bank dues enjoys
priority over Government dues
c) Both enjoys equal
priority
d) The Government cannot
seize the goods.
09.
The
auctionable claim is assigned in favour of more than one assignee at different points of time. The priority of charge is determined with
reference to date of
a) Execution of notice
of assignment
b) Execution of the
written instrument for assignment
c) Receipt of notice of
assignment
d) NoA
10. A Mortgage cannot be
enforced in the absence of
a) Delivery of the title
deeds
b) Legal Opinion
c) Narration in Title
deeds register
d) Pecuniary obligation.
11. A simple mortgage
need be registered when
a) The Loan amount
exceed Rs.100/-
b) Value of mortgaged
property exceeds Rs.100/-
c) A or B whichever
exceeds Rs.100/-
d) Both A & B
12. A Mortgage of the
mortgaged property is called
a) Sub-mortgage
b) Second Mortgage
c) Re-mortgage
d) Fraudulent Mortgage
13. For determining the
advance amount the shares will be valued on the basis of
a) Current market price
b) Average market price
for the last 12 months
c) Face Value
d) A or B whichever is
lower.
14. Assignment of LIC
policy is done as per section…… of ……. Act.
a) 132 of Transfer of
Property Act
b) 38, Indian Insurance
Act 1938
c) 138 of Contract Act
d) NOA
15. Government Promissory
notes should be sent to public debt office to confirm genuiness of
a) The Promissory note
b) Endorsement
c) Alternations, if any
d) All the above.
16. Gold Loans are given
only to properly introduced persons because of
a) RBI’s directives
b) Bank will lose the
right to sell the gold if the pledgee’s title is defective
c) Sec.131 of Negotiable
Instrument Act
d) All the above.
17. Reserve created out
of profit from business operation is known as
a) Capital Reserve b) Profit
Reserve
c) Revenue Reserve d) Free Reserve
18. The following is a
Term Liability
a) Debentures payable
within a year from the date of Balance Sheet
b) Preference Shares
payable within a period of one year from the date of Balance Sheet
c) Term Loan instalments
payable in a year
d) Deposit from public
payable in 2 years time.
19. Investment in Shares of other companies
can be classified as Current Asset only when the
shares are
a) Quoted
b) Relate to trade
investment
c) A &B
d) Shares cannot be
classified as Current Assets
20. The following is not usually classified as
Other Non Current Assets
a) Advance given to
Directors
b) Tender Deposit
c) Receivable
outstanding beyond 12 months
d) Preliminary and Pre
operative expenses
21. A unit is showing a net profit of
Rs.46,000/-. Dividend received
Rs.8000/-. Operating
expenses is Rs.96000/-. Find the gross profit
a) 134000 b)
150000 c) 142000
22. A firm paid Rs.16 lacs for purchase of a
business with machinery worth Rs.10 lacs and
other assets worth Rs.4 lacs. In this case the difference of Rs.2 lacs is
treated as
a)
P&L
Loss on purchase of asset
b)
Goodwill
Intangible Asset
c)
Fixed
Asset by inflating the value of fixed asset
d)
Current
Asset by inflating the value of current asset
23. If a sum of Rs10,000/accumulates to
Rs16,000/after 3 years at simple Interest , what is the rate of Interest.
a)
16%
b)
25%
c)
23%
d)
20%
24. The Net Working Capital refers to
a)
Liquid
surplus
b)
Borrowers
Contributions from long term source to short term use
c)
Excess
Current Asset over Current Liability
d)
All
the above.
25. The duration of an
operating cycle in 30 days. The
operating cycle in this case repeats……. times a year
a) 30 times
b) 12 times
c) 10 times
d) 52 times
26. The following is not
a chargeable current assets
a) Book debt
b) Spares
c) Work in process
d) Construction work in
progress
27. As per RBI
guidelines, a bank is required to assess the working capital on the basis of
the following method
a) Turnover Method
b) Cash Budget Method
c) MPBF of Tandon Method
d) Any Method as decided
by the individual banks
28. As per the Second
method of lending the borrowers contribution from long term source
a) is minimum 25% of
total current assets
b) is restricted to 25%
of working capital gap
c) is 25% of other
current liabilities
d) any amount which the
unit can bring
29.
Total
Current Asset of a unit is Rs.300 lacs.
Other Current Liabilities is Rs.200 lacs. The MPBF as per Ist Method & 2nd
method can be
a)
75
and 25 lacs
b)
25
lacs and 75 lacs
c)
Rs.100
lacs & Rs.150 lacs
d)
Rs.20
lacs & Rs.80 lacs
30.
A
borrower need not bring any matching contribution from long term sources in
respect of
a)
Export
Receivables
b)
Finished
goods produced for a specific export order
c)
Adhoc
limits
d)
A
& B
31 A Company
makes a single product with a sales price of Rs.10/- and a marginal cost
of
Rs.6/-.
Fixed Cost are Rs.60000/- p.a. In this
case,
Number of
units at break even
a) 15000
b) 10000
c) 6000
d) none of the above.
32. In the above
problem, Profit Volume Ratio
a) 30%
b) 40%
c) 50%
d) 60%
33. The long term
use is 120% of long term source. This
indicates the unit has
a)
CR
1.2
b)
Negative
TNW
c)
Low
Capital
d)
Negative
NWC
34. Tangible Networth is computed by
a)
Total
Tangible Asset less outside liabilities
b)
Capital,
free reserves & surplus less Intangible Asset
c)
Networth
less Intangible Asset
d)
All
the above.
35. A company has a networth of Rs.5
lacs. Term liability Rs.10 lacs, Fixed
Asset of Rs.16 lacs and Current Asset Rs.25 lacs. There is no intangible asset or ONCA. It's net working capital is
a) Rs. 10 lakhs
b) Rs.
1 lakh
c) Rs. 9 lakh
d) Rs. (-) 1 lakh
36. Financial leverage means
a)
use
leveraged lease to plan tax liability
b)
High
degree of solvency
c)
Law
bank finance
d)
Use
of more debt capital to increase profit.
37. Diversion means
a)
Diversifying
to activities not related to main business
b)
Retrenching
employees
c)
Use
of Current Assets for payment of Term Liability
d)
Use
of Current Liabilities for long term use
Examine the following
balance sheet to answer the question thereafter:
Liability Asset
Equity Capital 200 Gross Block 1000
Less:
Dep 200
-------
Preference Share Capital 100 Net Block
800
Term loan 600 Inventory
300
Bank Overdraft 400 Investment in Govt. security 50
Sundry Creditors 100 Preliminary expenses 100
------- Receivables 150
-------
1400 1400
38. Capital Gearing
Ratio
a) 0.78
b) 1.20
c) 0.67
d) 0.87
39. Debt Equity
Ratio is
a) 2:1
b) 3:1
c) 4:1
d) 1:1
40. Total Outside
Liability/TNW
a) 3.67:1
b) 5.50:1
c) 12 : 1
d) 6 : 1
41. Net working
capital
a) 100
b) NIL
c) 200
d) Cannot be calculated
42. Quick Ratio
a) 0.4:1
b) 2.1:1
c) 1.5:1
d) 1:1
43. Total Tangible
Asset
a) 1400
b) 1300
c) 1500
d) 1600
44.
Opening
stock of raw material is Rs.30 lacs, closing stock is Rs.50 lacs. Annual purchase is Rs.500 lacs. What is the average period of holding of Raw
Materials?
a)
2
M
b)
1.5
M
c)
1
M
d)
NOA
45.
Holding
period of Receivables is calculated with reference to
a)
Cost
of Sales
b)
Cost
of Production
c)
Gross
Sales
d)
NOA.
46.
Creditors
Velocity expresses the
a)
Maximum
period for which credit is given
b)
Average
period of credit enjoyed
c)
Minimum
period of credit given
d)
Minimum
period for which credit enjoyed.
47.
The
following is a “Means of Finance” for the cost of project
a)
Leasing
b)
Subsidy
c)
Deferred
Credit from Suppliers
d)
All
the above.
48.
For
a large and medium units DSCR should be
a) Maximum 2:1 (b) Maximum
1.5:1
c) Minimum 2:1 (d) Minimum
1.5:1
49. Variable Cost and Sale Price remaining the
same, a rise in fixed cost result in
a)
High
BEP ( High Break even point)
b)
Low
BEP
c)
High
Margin of Safety
d)
B&C
50. What is the formula for charging compound
interest with Annual Compounding.
a)
I
= Pnr
b)
P+I
c)
A
= P( 1+r)n
d)
Any
of the 3
51. What is the minimum period to be allowed to
drawee to decide on acceptance / rejections of
a usance bill
a)
2
Days
b)
48
Hours
c)
48
Hrs including public holidays
d)
48
hrs excluding public holidays
52. Ramesh deposited Rs 10,000/ for 3 years .
The Interest is compounded annually at 10% . What will be the amount receivable
by Ramesh at the end of 3 year period.
a)
13,310
b)
13,000
c)
12,000
d)
13,300
53. While calculating the value of (1+.10)3 (to the power of 3) the same can be
calculated
a)
manually
b)
using
calculator
c)
using
MS Excel
d)
all
the above
54. Annuities are
a)
The
annual interest payable or receivable in a debt or an investment.
b)
Lumpsum
payment made any time during the course of a fixed period of time.
c)
The
total amount payable annually in respect
of a debt or investment
d)
Series
of payments (many number of cash flows)
made at a specified frequency over the
course of a fixed period of time
55. An Annuity is an ordinary Annuity if,
a)
Payments are required to be made at the beginning of
each period.
b)
Payments
are required to be made at the middle of each period
c)
Payments
are required to be made at ordinary installments
d)
Payments
are required to be made at the end of each period.
56. The Marine Insurance Policy should be
expressed in
a)
Rupees
b)
US
Dollars
c)
Same
Currency in which the LC is drawn
d)
Any
foreign currency.
57. The discount rate which equals the present
value of promised flow to the
current market
price /purchase
price. This is known as
a)
Yield
to maturity
b)
NPV
c)
IRR
d)
Treasury
bills
58. The value which the bond holder gets on
maturity is called
a)
Maturity
value
b)
NAV
c)
the
redemption value
d)
IRR
59. This is the amount by which an asset is
expected to lose its value. What is this
a)
Market
value
b)
Wear
and tear
c)
Depreciation
d)
NAP
60.
EEFC
can be opened in
a)
Rupees
b)
Any
one of the four designated currencies
c)
One
of the permitted currencies
d)
AMUS
61.
A
method of calculating depreciation of an asset , which assumes that the asset
will lose an equal amount of value each year
is known as
a)
Salvage
value
b)
Depreciation
c)
Straight
line Method of calculation
d)
Accumulated
Depreciation
62. A credit facility will be classified as
NPA if……… remains past due for one quarter
a)
Interest
b)
Instalment
c)
A
or B
d)
A
& B
63. As per Prudential Accounting Norms
prescribed by RBI, assets are classified into …… type
a)
3
b)
8
c)
4
d)
5
64. The home currency price of one unit
of a foreign currency is quoted eg USD 1 = Rs43.20
a)
Indirect
quotation
b)
Exchange
rate
c)
Rate
of USD
d)
Direct
quotation
65. If the rate of a currency A is known in
terms of currency B and rate of Currency B in terms of Currency C , we can
derive the rate of currency A interms of
Currency C using the technique of cross
currency.
a)
Exchange
rate
b)
Cross
rate
c)
Forward
rate
d)
None
of the above
66. As per NABARD guidelines the minimum
Internal Rate of Return for Agricultural Project is
a)
15%
b)
25%
c)
30%
d)
18%
67. In case of Direct quotation if the forward rate is more than spot rate
the base currency is called as being at -----
a)
Discount
b)
Forward
rate
c)
Spot
rate
d)
Premium
68. An operation by which one can make risk
free profits making use of the interest differentials between two places is
called.
a)
Open
market operation
b)
Profitability
c)
Free
market
d)
Arbitrage
69.
If
the forward rate is less than the spot rate the base currency is said to be at
a)
Discount
b)
Premium
c)
At
par
d)
None
of the above.
70.
The
amount which the owner of the business
has invested in the firm and can claim from the firm is known as ------
a)
Capital
b)
Loan
c)
Term
Loan
d)
Fixed
Asset.
71.
The
amount which the firm owe to outsiders
a)
Assets
b)
Capital
c)
Liabilities
d)
Intangible
assets
72.
A person who owes money to a firm , mostly on
account of credit sales of goods is called.
a) Creditor
b) Debtor
c) Borrower
d) lender
73.
The
balance sheet represents an expansion of the equation as Assets = Liabilities
+Capital This statement is
a)
Cannot
be relied
b)
false
c)
Not
acceptable
d)
True
74.
Assets
minus original capital = Liability
a)
True b) False
c) can be
accepted d) None of the above.
75. If a firm borrows money its capital would be reduced
a)
This
statement is false
b)
This
statement is true
c)
The
same is acceptable
d)
None
of the above
76. ---------- is the value of an established
business over and above the value represented by it’s tangible assets .
a)
Assets
b)
Liabilities
c)
Goodwill
d)
None
of the above.
77. If the partnership does not mention any
method of maintaining capital
account then ------- method of capital has to be used.
a)
Fluctuating
capital account
b)
Partners
Current account
c)
Capital
account
d)
Fixed
capital account
78. The joining of a new person into the
existing partnership as a partner is called
a) Retirement of
a partner
b) Resolution of
a partnership
c) Good will
d) Admission of a
partner
79. Under the -------- capital method two
accounts are maintained for each partner viz current account and capital
account.
a)
Fixed
Capital Method
b)
Fluctuating
capital method
c)
Equity
capital Method
d)
Preference
share capital
80. As per new guidelines both SLR and non SLR
securities are to be classified into
a)
Held
to maturity.
b)
Available
for sale
c)
Held
for trading
d)
All
the above .
81. Amount of Investment under Securities held
to maturity should not exceed --------- of Bank’s total investment
a)
Twenty
percentage of the Bank’s total investment (20% of total investment)
b)
Twenty five percentage of the Bank’s total
investment (25% of total investment)
c)
forty nine
percentage of the Bank’s total investment (49% of total investment)
d)
forty percentage of the Bank’s total
investment (40 % of total investment)
82. The form of Balance sheet and Profit and
loss account of a Banking Company is prescribed in forms A and B of
-------------- schedule of the Banking
Regulation Act 1949.
a)
Second
b)
Third
c)
First
d)
Fourth
83. The Companies Act prohibits issue of any
preference share that is -----------
a)
cumulative
b)
redeemable
c)
both
a and b
d)
Irredeemable
84. The capital which is stated in the
Memorandum of Association is known as
a)
Memorandum
Capital
b)
Paid
up capital
c)
Authorised
capital
d)
Issued
capital
85. Authorised capital is also known as
a)
Nominal
or Registered Capital
b)
Equity
capital
c)
Preference
share capital
d)
All
the above
86. When shares are issued at higher than the
face value of the shares they are said to be issued at a
a) Discount - b) Par- c) Premium
e)
None
of the above
87. Issue of shares at a discount should be
authorized by the members by passing a resolution
in the
general meeting and resolution of members should specify the rate of discount
which
should not exceed 10% of the face value of the shares Further this is subject
to
a)
Obtention
of sanction from Company Law Board
b)
These
shares must be issued with in 2 months
c)
Both
(a) and (b)
d)
None
of the above
88. According to section 79A inserted by
Companies Amendment Act 1999 --------- shares
means equity
shares issued by the company to employees or directors at a discount or
for
consideration other than cash for providing know how or making available right
in the
intellectual
property rights or value addition, by whatever name called.
a)
Employees
stock option
b)
Equity shares
c)
Sweat
equity
d)
None
of the above.
89. A scheme under which the company grants
option (A right but not an obligation ) to an
employee to apply
for shares of the company at a pre determined price is known as
a)
Employees
Stock Option Scheme (ESOS)
b)
Equity
shares
c)
Sweat
Equity
d)
None
of the above.
90. The formation of a company is governed by
the rules and regulations as contained in
a)
Indian
Companies Act
b)
RBI
act
c)
BR
Act
d)
None
of the above.
91. Profit and Loss Account is one of the
Final Accounts prepared by a Company. What is the
other one.
a)
Schedules
to P&L accounts
b)
Balance
sheet
c)
Trading
Account
d)
None
of the above.
92. Liabilities that will arise on the
happening of certain event
a)
Current
liabilities
b)
Term
Liabilities
c)
Contingent
Liabilities
d)
None
of the above
93. Schedule VI of the Companies Act prescribes
the form of
a)
Balance
sheet
b)
Trading
Account
c)
Balance
sheet
d)
None
of the above.
94. A computer Accounting system runs based on
a set of instructions called the software
programmes
developed by a person who is a computer software professional and he is
called -------
a)
Programmer
b)
Software
Engineer
c)
IT
man
d)
None
of the above.
95. Accounting software may be written in any one of the computer languages such
as
a)
Windows, UNIX etc
b)
JAVA
C+ etc
c)
COBOL, Foxpro etc
d)
None
of the above.
96. Computers are basically classified into
a)
Analogue
Computers and Digital computers
b)
Hardware
and software
c)
Wipro
and Infosysis
d)
All
the above
97. A Customer Service Meet should be
organized at every Branch
a) Once in a Fortnight
b) Once in a Quarter
c) Once in a Month
d) Once in a Half-Year
98. Who cannot file a complaint under Consumer
Protection Act?
a) Banks
b) State Government
c) Public Interest
Litigation Group
d) Persons receiving
services free of charge
99. Banking Ombudsman is appointed by
a) Central Government /
Ministry of Finance
b) State Government
c) IDBI
d) RBI
100. DRT has jurisdiction relating to cases
pertaining to Banks, Financial Institutions with debt
amount of
a) Rs. 1 lakh and above
b) Rs. 5 lakh and above
c) Rs. 10 lakh and above
d) Rs. 20 lakh and above
ANSWERS
1) b 2) d 3) b 4) b
5) c 6) b
7) d 8) b 9) b 10) d 11)
a 12) a
13) d 14) b 15) d 16)
b 17) c 18) d
19) c 20) d 21) a 22)
b 23) d 24) d
25) b 26) d 27) d 28)
a 29) a 30) a
31) a 32) b 33) d 34)
d 35) d 36) d
37) d 38) a 39) b 40)
b 41) b 42) a
43) b 44) c 45) c 46)
b 47) d 48) c
49) a 50) c 51) d 52)
a 53) b 54) d
55) d 56) c 57) a 58)
c 59) c 60) c
61) c 62) c 63) c 64)
d 65) b 66) a
67) d 68) d 69) a 70)
a 71) c 72) b
73) d 74) b 75) a 76)
c 77) d 78) d
79) a 80) d 81) b 82)
b 83) d 84) c
85) a 86) c 87) c 88)
c 89) a 90) a
91) b 92) c 93) a 94)
a 95) c 96) a
97) d 98)
d 99) d 100) c
