SYMBIOSIS INSTITUTE OF INTERNATIONAL

BUSINESS
QUESTION BANK ON MARKETING OF FINANCIAL
SERVICES

1.
a)
b)
c)
d)

NBFC stands for:

Non-banking finance companies
Non-banking financial corporation
Non bulk finance companies
None of these.

2. ___________ is a fund based financial service, provides resources of

finance receivable as well as facilitates the collection of receivables.
a) Leasing
b) Hedge finance
c) Merchant banker
d) Factoring
3. Discounting of bills of exchange is an attractive __________ based
financial service provided by the finance companies.
a) Fee
b) Fund
c) Opinion
d) Capital
4. Factoring is method of raising ___________ finance through account
receivable credit offered by commercial banks and factors.
a) Long term
b) Medium term
c) Short term
d) All of these
5. The features of hire purchase:
a) The possession of goods is given to the buyer immediately.
b) The ownership in the goods remains with the vendor till the last
installment is paid.
c) The seller can repossess the goods in case of default in payment.
d) All of these.

6. A bank accepts a deposit from a corporate house. The features of the

deposit are:
i.

accepted at a discounted value

ii.

stamp duty is borne by the bank

iii.

issued as usance promissory note

iv.

TDS is not applicable

Identify the deposit

a) commercial paper
b) certificate of deposit
c) flexi deposit
d) caution deposit

7. A bank finances an agriculturist to buy a tractor. The loan is secured

by:
a) Hypothecation of the tractor
b) Mortgage of the tractor
c) Pledge of the tractor
d) Assignment of the tractor
8. Which of the following statement/s is/are true?

a)
b)
c)
d)

i. Commercial Paper is issued by a Corporate

ii.
Certificate of Deposit is issued by a Bank
iii.
Letter of Credit is non fund based line of credit
i and iii
i
i, ii and iii
ii and iii

9. Banks evaluate a credit proposal based on which of the parameters?

i. character, capital, condition
ii. capacity, collateral, compliance

iii. capital, collateral

iv. capacity, compliance
a)
b)
c)
d)

i
ii
i, iv
i, ii

10.
An account holder draws a cheque on a :
a) banker of the payee
b) banker of the drawee
c) banker of the drawer
d) banker of the endorsee
11.
A bank installed an ATM at a Railway Station. Identify the
marketing mix:
a) promotion
b) place
c) package
d) product
12.
Tele banking is based on
a) virtual banking
b) online banking
c) voice processing
d) core banking
13.
PIN in a ATM card is :
a) Permanent Information Number
b) Personal Identification Number
c) Professional Identification Number
d) Permanent Identification Number
14.
Buy Now Pay Now is commonly used for --a) Credit cards
b) ATM Cards
c) Charge Cards
d) None of the above
15.
___________ pools money from investors and invests in stocks,
bonds and shares.
a) a bank
b) a merchant banker
c) a factor
d) a mutual fund
16.

Credit risk is:

a)
b)
c)
d)

default of the banker to maintain CRR

default of the banker to issue credit card
default of the banker to release credit to the borrower on time
default of the customer to repay the loan

17.
Which is not the function of RBI?
a) regulates forex activities with the help of FEMA,1999
b) decides Bank rate,CRR and SLR from time to time
c) opens and maintains SB accounts
d) prescribes the capital adequacy ratio
18.

a)
b)
c)
d)

State which of the following statement/s is/are true?

i. open ended schemes are offered by mutual funds
ii. banks cannot setup mutual funds, without RBIs permission
iii. bank branches are used as a distribution channel for insurance
products is called bank assurance.
i, ii
ii, iii
i, iii
i, ii, iii

19.
One of the key area of Asset Liability Management of banks is
the interest management. Banks analyze interest trends based on:
a) gap analysis
b) value at risk
c) duration analysis
d) all of the above
20.
Securitization is the process of acquisition of loans classified as :
a) standard assets
b) book debts
c) non-performing assets
d) any one of the above
21.
What is a Demat a/c:
a) acronym for Demat is dematerialization of shares
b) dematerialization is a paperless book entry form of shares
c) demat accounts can be opened by banks
d) all of the above
22.
NEFT is:
a) National Electronic Funds Transfer system offers an efficient, secured,
economical facility
b) NEFT is available for retail customers
c) NEFT is an end to end and covers only the networked branches
d) all of the above

23.
KYC means:
a) Know Your Customer very well
b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customers identity and activities
24.
Hypothecation is applicable in the case of
a) Movable goods
b) Immovable property
c) Book debts
d) Corporate guarantee
25.
Which one of the following is not barred by law of limitation?
a) Pledge
b) Hypothecation
c) Bankers lien
d) Guarantee
26.
A company which pools money from investors and invests in
stocks, bonds, shares is called
a) A bank
b) An insurance company
c) Bancassurance
d) Mutual Fund
27.
RTGS stands for :
a) Real Time Settlement System
b) Real Time Gross Settlement System
c) Real Gross Settlement System
d) Real Gross Time Settlement System
28.
The following are the characteristics of services except:
a) Intangibility
b) Inseparability
c) Homogeneity
d) Perishability
29.
Factors influencing pricing of financial services
a) The customers demand schedule
b) The cost function
c) Competitors prices
d) All of the above
30.
Pricing method :
a) Perceived Value Price
b) Marginal Cost price

c) Penetration price
d) Mark down price
31.
_____________ is a method of renting assets.
a) Hire purchase
b) Lease
c) hedge finance
d) Credit rating
32.
Role of merchant bankers is _______________.
a) Mobilization of funds
b) Promotional function
c) Innovation
d) All of these
33.
Preissue management activities include
a) Lead manager
b) Underwriting
c) Overall supervision
d) None of these
34.
The following are the pricing strategies except:
a) Loss-Leader pricing
b) Psychological pricing
c) Geographical pricing
d) Transfer pricing
35.
The following are functions of distribution channel
a) Promotion
b) Physical Distribution
c) Market Information
d) Human Resource
36.
The distribution of banking network
a) Tele-banking
b) ATMs
c) Plastic Cards
d) All of the above
37.
Which of the following is not a fund based financial services?
a) Credit rating agencies
b) Venture capital
c) Consumer credit
d) Factoring
38.

Find out odd one: Authorization criteria of merchant bankers.

a)
b)
c)
d)

All business performed

Professional competence
Capital adequacy
Past experience

39.
Find out odd one.
a) Fund based activity
b) Fee based activity
c) Modern activities
d) Purchase of raw materials
40.
Category 1 merchant bankers can act as.
a) Only as advisor
b) Underwriter
c) Consultant
d) All issue management functions
41.
The factor assumes credit risks associated with the __________.
a) Collection of accounts
b) Collection of securities
c) Collect the fund
d) Collect the goods
42.
___________includes all asset based financing plans offered to
individuals to help them acquire durable consumer goods.
a) Trade credit
b) Cash credit
c) Hire purchase
d) Consumer credit
43.
Asset based service also called _____________.
a) Fee based
b) Interest based
c) Capital based
d) Fund based
44.
Hedging of risks by using _____________.
a) Swaps and derivatives
b) Swaps only
c) Derivatives
d) None of these
45.
In hire purchase system, each installment is treated as
____________ till the last installment is paid.
a) Interest
b) Hire charge

c) Payment
d) Credit
46.
Identify odd one.
a) C R I S I L
b) I C R A
c) C A R E
d) I C I C I
47.
Specialized financial institution, are also known as ___________.
a) Leasing companies
b) U T I
c) N B F C s
d) Development bank
48.
Functions of financial services exclude ____________.
a) Mobilization of savings
b) Allocation of fund
c) Specialized services
d) Collection of tax
49.
__________ is a combination of conventional and conditional loans.
a) Income notes
b) Debt instrument
c) Equity instrument
d) None of these
50.
Financing sick unit to make them profitable is called
______________.
a) Turn around
b) Buyout
c) Bridge
d) None of these
51.
____________ is known as bridge finance.
a) Development financing
b) Expansion financing
c) Replacement finance
d) None of these
52.
____________ is needed for product development and initial
marketing.
a) Seed capital
b) Startup capital
c) First round financing
d) None of these