IV-SEMESTER ONLINE EXAMINATIONS MBA405F-Financial Services The contribution of financial service sector of Indian economy for the overall

average growth in GDP between 2002-03 and 2006-07 is (A ) A) 68.6% B)66.8% C)86.6% D)68.9% 2) The equilibrium of financial is determined by assuming ( B) A) There is no competition B) There would be perfect competition C) There would be imperfect competition D)none 3) The lonable theory of funds state equilibriums rate of interest is determined by the( D) A) Only supply for lonable funds B) Only demand for lonable funds C) No supply and demand D) Supply and demand for lonable funds 4) The demand for funds depend upon ( D) A) Investment in fixed and circulating capital B) Demand for consumer durables C) Investment in housing D) All the above 5) ICRAI means (A) A) Investment and Credit Rating Agency of India B) Indian Credit Rating And Investment C) International Credit Rating And investment D) Insurance and Credit Rating Agency of India 6) IDCI was established in (B) A) 1954 B)1948 C)1964 D)1947 7) IDCI stands for (B) A) Insurance Development corporation of India B) Industrial Development Corporation of India C) International Development Corporation of India D) Investment Development Corporation of India 8) Online trading was introduced in all stock exchange in the year (B) A) 1982 B)1991 C)1992 D)1993 9) Non-bank participants were completely phased act of the call money market on (A) A) 6 Aug 2005 B) 16 Aug2005 C)6 Aug2006 D)16 Aug 2006 10) The number communities and councils under the general council of WTO are (B) A) (4, 3) B) (3,4) C)(4,4) D)(3,3) 11) The number of countries participating in GATT during 1995 were (C) A) 115 B)116 C)117 D)118 12) Which act proposed 4 major changes in the markets of financial services? (D) A) Insurance service Act1995 B) Investment service Act 1999 C) Financial service modernization Act1998 D) Financial service modernization Act1999 13) The outstanding amount on the last Friday of the call money market in India during 1955-56 was (C) A) 9.6cr B) 9.9cr C) 9.3cr D) 9.7cr 14) The market which provide opportunities for sufficient orders at time below and above the market price are called (A) A) Deep financial markets B) Broad C) Financial D) Shallow 15) Financial risk is the (C) A) Total variability in the returns on the asset or the portfolio B) Summation of systematic and unsystematic risk C) All D) None 16) Net yield is given by (A) A) Gross yield (1-tax rate) B) HYP+1 C) Risk true rate of returns (RRR)+Risk Premium D) Annual interest + average annual appreciation /depreciation

17) Financial risk is of a firm usually measured by the (A) (debt/equity ratio) Liquidity ratio Current ratio Profitability ratio 18) The price (or) present value of an asset is (A) A) Proportional to timing of cash flow and the level of discount rate B) Inversely Proportional to timing of cash flow and the level of discount rate C) Equal to timing of cash flow and the level of discount rate D) Equal to time value of money 19) Sterling exchange standard came to be established in India in the year (B) A) 1913 B) 1931 C) 1919 D) 1918 20) The risk return trade off relationship is ( D) A) High risk rewarded with high return B) Low risk accompanied by low returns C) Low risk overcomes high returns D) Both (A) and (B) 21) Number of banks / CBs in the year 1950 (D) A) 604 B) 610 C) 607 D) 605 22) The constant decrease in the FDs of the CBs during 1920-1950 were cause of (D) A) Inflation during wars and competition with post office saving account and Insurances B) Growing opportunity and increasing preference for investment in industrial Securities C) Decline in the interest rates on FDs D) All the above 23) Treasury bills were first issued in India on (D) A) October 1920 B) October 1918 C) October 1919 D) October 1917 24) Indicators of financial development are (D) A) FR and EIR B) NIR C) IR D) all the above 25) The percentage raise of 1 financial issues in the year 94-95 was (C) A) 89.7% B) 89.6% C) 89.9% D) 89.5% 26) Which bank formalized the issue of credit cards (A) A) Franklin National Bank B) Bank Of America Card C) Bank Of America Charge D) Central Bank Of India 27) In India Sterling silver card is being issued by the bank. (A) A) ICICI B)AMEX GREEN C)CITI GOLD D) ANZ GOLD 28) How many types of standard of fee are collected by any bank regarding a credit card. (B) A) 5 B)6 C)7 D)8 29) Schools, non-profit groups, pro-wrestlers, singers, airlines etc.. are featured on (A) A) Co-branded card B)ICC C) AOC D) Secured Card 30) Consumer protection act 1986 provides (B) A) Conflict redressal facility B) Grievance redressal facility C) Risk coverage D) IT exception 31) Which debit card offers online transactions? (C) A) Deferred debit card B) Smart debit card C) Direct debit card D) Dollar Card 32) FLCI means (D) A) Federal Lesson Corporation Of India B) Federal Lessee Corporation Of India C) First Lessor Company Of India Ltd D) First Leasing Company Of India Ltd 33) Rebates provided on yearly and half yearly payment of premiums are (B) A) 1.5 & 3% respectively B) 3 & 1.5% respectively C) 2 & 1.5% respectively D) 1.5 & 2% respectively 34) Suhan Safar and Baggage insurance policy are categorized under (B) A) Business policy B) Travel policy C) Life policy D) General policy 35) Capital asset pricing model can be represented by (A) A) (Ri) = Rf + (Rm-Rf) B) (Ri) = Rm+ (Rnf) C) (Ri) = (Rf + Rm-Rfn) Rf + (Rm-1) D) (Ri) = Rf + (Rm+1) 36)Modern Banking system is known as: (D)

Reserve Banking b) Basis and Process Banking c)Net Banking d) Fractional Reserve Banking 37)How much % of deposits a bank holds as cash reserves (a) 10% b) 9.5% c) 9.7% d)10.5% 38)What % of NI were the bank deposits in the year1994-95 46% b) 52% c) 53% d)45% 39)Overall CRAR of all scheduled banks in the year 2006-07 has been: (c) 14.3% b) 13.3% c) 12.3% d)15.3% 40)Slack season with respect to CBs is the period between: (d) Jan-Mar b) Mar-Oct c) Oct-Mar d) Apr-Sep 41)SEBI was established on: (a) April 12, 1988 b) April 21, 1977 c) April 19, 1990 d) March 30, 2000 42)Credit rating agencies regulations were amended with respect to SEBI in 1988 b) 1997 c) 1999 d) 2000 43)In how many phases did mutual funds in? 5 b) 6 c) 7 d) 3 44)NAV of mutual funds is determined by (a) (total assets-liabilities)/total number of units (total assets+ liabilities)*total number of units Total assets * total liabilities Total units-total liabilities 45)Beta of the portfolio indicates: (c) Significance of the performance diversification of performance volatility of the performance risk bearing of the security 46)Turnover rate indicates (c) equity of funds b) average yield of investments c) activity of funds d) yield of interest 47)The units of close-ended schemes may be converted to open-ended scheme under: (a) regulation 33(3) of SEBI, 1996 b) regulation 33(1) of SEBI, 1996 c) regulation 33(2) of SEBI, 1996 d) regulation 33(4) of SEBI, 1996 48)A mutual fund scheme shall not invest ------% of its NAV in equity shares: (c) 3 b) 4 c) 5 d) 6 49)During 1935 The Central Bank of India was under the control of (d) Birla group b) Ambani group c) Bajaj group d) Tata group 50)Remittance of a fund is: (c) Deposits of money b)maintaining locked cabinets c)transfer of money d) security arrangement 51)The maximum repayment duration given for industrial loans is(c) 10years b) 12years c) 15-18years d) 20years 52)Approximately number of private commercial banks on par (c) 25 b) 29 c) 30 d) 35 53)This among the following is the mode of reinsurance (c) Facilitative b) credit guarantee c) treaty d) capital safe guarding 54)Which among the following is the major reinsurer? LIC b) GIC c) UTI d) swissre 55)Life insurance was introduced in India through (a) Oriental life insurance b) Munichre c) Royale d) Allianz 56)Net worth of a bank should not be less than (c) Rs. 250Cr b) Rs. 300Cr c) Rs. 200Cr d) Rs.100Cr 57) capital adequacy ratio after banking reforms(1991) (a) a. 8 b.12 c.18 d.6 58) For a saving A/c, if the investment rises by 12% and capital output ratio is 4:1 then the income would rise by (d)

0.33% (b) 12% (c) 48% (d) 3% 59) If the GDP of a country gets stagnant for several years due to increased inflation rates and tampering off the level of growth of savings; the this stage of growth is called (d) High level equilibrium (b)Moderate level equilibrium (c) Stagnant (d) Low level equilibrium 60) Inter Bank card Association was established in (a) August, 1966 (b)April 1966 (c) August 1976 (d) April 1976 61) INET was implemented by Master charge in (d) 1971 (b) 1972 (c) 1974 (d)1975 62) To ensure a direct stake of merchant banker(s) in the issue managed by them the lead managers would be required to accept a min of (a) 5% (b)10% (c)15% (d)20% 63) To procure an authorization all merchant bankers must have a minimum net worth of Rs.1cr 64) At present the time taken for organizing a new issue is between (c) 10 12 months (b)12 14 months (c)12 18 months (d) 18 20 months 65) Free market pricing of shares offered to public in allowed by (b) CCI (b)Capital issues control Act (c)MRTP Act (d) FEMA 66) Proper pricing of shares in the responsibility of (d) Mutual fund organization (b) SEBI (c) Portfolio management services (d) Merchant bankers 67) In case of foreign controlled rupee companies, the clearance regarding business should be secured under (a) FEMA,99 (b) FERA,1973 (c) EXIM policy (d) SEBI 68) If the authorization is to be given for an Merchant Banker then number of lead managers for issue of amount up to Rs.100cr are: (c) Not more than 1 (b) Not more than 2 (c) Not more than 3 (d) Not more than 4 69) The authorization for MBs will be provided by SEBI only: (d) Initially period of 1 year Initial period of 2 years Initial period of 2 years Initial period of 3 years 70) The max grading points of prospects will be (d) Seven (b)Eight (c) Nine (d)Ten 71) A company should submit SEBI 3 day report and 18 day report from the day of opening subscription 2 day report and 15 day report 15 day and 30 day 30 day and 45 day 72) According to UTI Act, 1963, any mutual fund organization cannot take up other than dealing in (a) Units (b)Projects (c)hiring (d)Subsidiaries 73) At the end of all mutual funds were (c) Rs.70,200cr (b)3.2 lakh Cr (c) Rs.92, 305cr (d) 5.65 lakh Cr 74) Which among the following is the mutual fund organization that shown in equity leading is: (a) (a) Canbank (b) Allianz (c) UTI (d) AMF 75) How much % of the profits should be distributed by mutual funds in an year is (d) Min 50% (b)Min 70% (c) Min 80% (d) Min 90% 76) Mutual funds can invest 100% of their money raised in money markets up to (c) 2 months (b)3 months (c) 6 months (d) 9 months 77) For all quoted instruments, mutual funds must calculate (a) Weekly NAV Daily NAV Fortnight NAV Monthly NAV 78) For a hire purchase, what % of asset cost should be deposited by the hirer as margin money (c) 10 15% (b)15 25% (c) 25 30% (d) 30 35% 79) In a Business, the Hire purchase installments are shown as: (b) Term asset (b)Term liability (c) Obligation (d) Depreciation

80) Hire Purchase is classified into (a) 4 types (b) 5 types (c) 6 types (d) 7 types 81) Investing in Housing Finance is (b) Hedge against deflation Hedge against inflation Hedge against speculation Hedge against direct investment 82) What is approximate relation of increase in inflation and increase in value of a land? (a) Directly proportional (b) Indirectly proportional (c) Equal proportional (d) None of the above 83) National Housing Bank was act up in (July 1988) 84) __________ Increment deposits for housing finance purpose were permitted to all be allocated by RBI 85) Institutions eligible for refinance from NBH are: (a) Real estate developers Scheduled commercial banks Scheduled co-operative banks Both (b) & (c) 86) NBH has started its operation with paid up capital of (a) Rs.100cr (b) Rs.150cr (c) Rs.200cr (d) Rs.250cr 87) The shortage of housing in estimated at urban areas is: (a) 7.57million (b) 13.66 million (c) 9.97 million (d) 23.66 million 88) The PRL rates for deposits publics with respect to Housing Finance in 2007 come down to (b) 5 5.5 % (b) 10 11.5 % (c) 20 22.2 % (d) 33.3% 89) The individual limit for housing finance is (c) Rs.3lakhs (b) Rs.5lakhs (c) Rs.10lakhs (d) Rs.15lakhs 90) The NBH has promoted a separate entity to guarantee the payment of principle and interest for the classes of population namely (c) HDFC (b) IDBI (c) IMCGC (d) Cantina homes limited 91) IDBI, IFCI, ICICI and IIBI were categorized under (b) Investment Institutions Development institutions Industrial institutions Infrastructural institutions 92) Before the establishment of SEBI which the all India bodies was the leader of financial institutions? (c) ICICI (b) IMCGC (c) IDBI (d) IFCI 93) The primary objective of UTI was to mobilize funds from: Higher income groups Medium Income groups Low income group Except (a) 94) At the end of June 2002, the total % of debentures and preference shares in the total investments was (b) 55.9% (b) 30.1% (c) 0.8% (d) 8.6% 95) IDBI was transferred to the ownership of central government under the (a) Public Financial Institution law (Amended) Act 1975 Small industries development Act UTI Act Income tax Act 96) The paid up capital of IFCI is 10% held by IDBI (b) 10% held by ICICI (c) 50% of IDBI (d) 50% of ICICI 97) IRBI has office at (c) Mumbai (b) Pune (c) Kolkata (d) Bangalore 98) Venture capital funds were set up for the promotion of Green field companies Risk capital investment Both (a) & (b) None of the above 99) The objectives of ICICI are focused on the promotion of: (a) Private Sector Individual business Public sector Cottage industries 100) The source of funds for institutional financing companies is: (a) Borrowing from foreign banks Borrowing from RBI Borrowing from World bank Borrowing from Regional private banks