t.y. b.com (banking & insurance) semester vi subject : sample … 6 tybcom b and … ·...

T.Y. B.Com (Banking & Insurance) Semester VI

Subject : SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Sample Multiple Choice Questions for practice

_____ activity is indulged into not for returns but for mere reason of fun and satisfying

habit of taking risk and adventure.

a) speculation

b) Gambling

c) investment

d) Long term

1. Under economic analysis the technique of drawing out a relationship between an

independent variable and a dependent variable is known as _____ model.

a) Econometric

b) Barometric

c) Opportunistic

d) Psychometric

2. Return on Capital employed is a _____ ratio.

a) Unlevered

b) Levered

c) Solvency

d) Liquidity

3. Mr. X is a risk-averse investor. Mr. Y is a less risk-averse investor as compared to Mr.

Y, therefore, _____.

a) for the same risk, Mr. Y requires a higher rate of return as compared to Mr. X.

b) for the same returns, Mr. X tolerates higher risk as compared to Mr. Y.

c) for the same returns, Mr. Y tolerates higher risk as compared to Mr. X.

d) for the same risk, Mr. X requires a lower rate of return as compared to Mr. Y.

4. Holding period returns converted into 12 months period are known as _____ returns.

annualised

a) Expected

b) Future

c) Risk free

d) Market risk

5. Optimum Capital structure implies a ratio debt and equity at when _________ would be

least and market value of the firm would be highest.

a) Marginal Cost of Capital

b) WACC

c) Cost of debt

d) Opportunity Cost

6. _____ is not a source of systematic risk.

a) Interest rates

b) Business cycle

c) Inflation rate

d) Personnel changes

7. When correlation of two securities is _____ they are said to have no correlation

amongst themselves.

a) perfect negative

b) perfect positive

c) zero

d) Constant

8. Standard deviation of a portfolio consisting of four securities will have _____ number

of coefficient of correlations in its calculation.

a) five

b) six

c) seven

d) eight

9. If the expected level of EBIT exceeds the indifference point.

a) Debt financing will be advantages

b) Equity financing will be advantages

c) EPS will reduce

d) Leveraging is better

10. The factor which is not relevant for determination of debt equity mix.

a) Taxation

b) Nature of Asset base

c) Industry Norms

d) Viability of Cashflows

12. A portfolio consisting of security A, B & C with expected returns of 15%, 18% and

10% and weightage of 20%, 50% and 30% will have expected returns of _____%.

a) 14

b) 13

c) 15

d) 16

13 Definition of _____ differs under various forms of efficient market hypothesis.

a) Efficiency

b) Information

c) Prices

d) Return

14 A risky portfolio with expected returns and standard deviation of 18% lies on a given

indifference curve. Which of the following portfolios might lie on the same indifference

curve?

a) Expected returns = 15%; standard deviation = 18%.

b) Expected returns = 15%; standard deviation = 20%.

c) Expected returns = 15%; standard deviation = 15%.

d) Expected returns = 15%; standard deviation = 10%.

15 _____________ market line is graphical representation of capital asset pricing model.

a) Capital

b) Security

c) Beta

d) Aggregate

16 The risk that cannot be avoided even by the most diversified portfolios is known as

__________________ risk.

a) company specific

b) unsystematic

c) unique

d) systematic

17 Beta reflects the stock risk for investor which is usually _________________.

a) collective

b) individual

c) liner

d) weighted

18 __________ market line divides required returns on a stock into risk free rate and risk

premium.

a) Capital

b) Security

c) Aggregate

d) Beta

19 If the risk-free rate is 3%, the beta of APL is 1.2, and the rate of return of the market

portfolio is 12%, what is the expected return on APL as per CAPM will be _____%.

a) 12.8

b) 10.8

c) 13.8

d) 14.8

20 For a portfolio consisting of 50 securities, inputs required for Single Index model

would be ______.

a) 150

b) 151

c) 152

d) 153

21 Efficient market hypothesis advocates _____ investment strategy.

a) Active

b) Buying

c) Passive

d) Strong

22 As per APT, the value of firm-specific risk factor is _____.

a) Positive

b) Negative

c) Zero

d) Constant

23 As per Fama’s decomposition total returns = Risk free returns + _____ returns.

a) less

b) free

c) excess

d) T-bill returns

24 Jensen’s measure provides _____ of a security.

a) Beta

b) Alpha

c) Gamma

d) Theta

25 Treynor’s measure of an overpriced security will be _____ as compared to Treynor’s

measure of market.

a) Lower

b) Higher

c) Same

d) 1.5 times higher

26. ______ technique is the most accurate for calculating YTM.

a) YTC

b) YTM

c) IRR

d) WACC

27 A debenture with higher coupon rate will have ______ bond duration.

a) lower

b) higher

c) less

d) Constant

28 A bond is said to be issued at premium when

a) Coupon rate > Required returns

b) Coupon rate = Required returns

c) Coupon rate < Required returns

d) Coupon rate and required return remains unaffected

29 Fundamental analysis assumes that the stock price of a company depends on _____.

a) Emotions of stock markets

b) Capacity to generate income in future

c) Tips and rumors about the company

d) Head & Shoulders charts

30 According to Fundamental analysis, a company’s stock price depends on _____.

a) The economic situation in which the company operates

b) Dow Jones random walk chart

c) Head and shoulder charts

d) Tips & highs

31 Income statements are thoroughly analysed under _____ analysis.

a) Economy

b) Industry

c) Company

d) Technical

32 _____ is used in the numerator of finished goods turnover ratio.

a) Cost of goods purchased

b) Cost of goods sold

c) cost of production

d) Net Sales

33 Earning’s yield is reciprocal of _____ ratio.

a) profitability

b) price earning

c) unlevered

d) Liquidity

34 Standard deviation of a portfolio consisting of securities with perfect positive

correlation will be equal to _____ of standard deviation of securities in the portfolio.

a) Simple Mean

b) Weighted Mean

c) Median

d) Mode

35 _____ is best measure of total risk.

a) Range

b) Variance

c) Standard Deviation

d) Weighted Mean

36 As per capital asset pricing model, beta of risk free securities is always _________.

a) One

b) Negative

c) Zero

d) Positive

37 ________ ________ is the sensitivity of operating profit to changes in sale.

a) Operating leverage

b) Financial leverage

c) Combined leverage

d) WACC

38 Financial leverage involves ________ ________.

a) Business Risk

b) Financial Risk

c) Profitability risk

d) Risk of net turnover.

39 Current ratio is a _____ ratio.

a) Activity

b) Profitability

c) Solvency

d) Liquidity

40 Debt equity ratio is _____ the better.

a) Higher

b) Lower

c) Constant

d) No impact

41 Financial Risk involves

a) Risk of cash insolvency

b) Risk of variation in expected earning

c) Risk of leverage

d) Risk of negative returns

42 The effect of decrease in leverage

a) Decreases equity capitalisation rate

b) Increases WACC

c) Total value of the firm decreases

d) Profitability decreases

43 Capital structure with equity shares only

a) Increases Financial Leverage

b) Directors have greater discretion in declaration of dividend.

c) Can get Tax advantage

d) Increased profitability

44 Money flow index _____ weighted Relative strength index.

a) volume

b) Relative

c) Static

d) increases

45 The daily high price is represented on a candlestick chart by the _____.

a) real body

b) trend-line

c) channel

d) shadow

46 Market price breaking through the moving average from below is a _____ indicator.

a) bullish

b) bearish

c) flat

d) Average

47 As per _____ form of EMH, stock prices reflect all relevant information including

historical stock prices and current public information about the company, but not

information that is available to insiders.

a) semi-strong

b) weak

c) strong

d) very strong

48 Following is not the assumption of MM Approach

a) Investors behave rationally

b) Investors are free to buy & sell securities

c) There is a transaction cash

d) Investors can borrow without restriction

49 As per ___________ form of efficient market hypothesis all public information is

reflected in the current market prices in stock markets.

a) weak

b) strong

c) semi-strong

d) market

50 According to efficient market hypothesis a small investor having ` 1,00,000 with him

should _____.

a) try and exploit market anomalies.

b) invest in risk free securities.

c) perform fundamental analysis before investing.

d) invest in mutual funds.


Subject : Human Resources Management


Q1. Strong Campbell Interest Inventory is a __ test

(a) Interest (b)Personality (c) Aptitude (d) Ability

Q2. Job Analysis is a systematic procedure for securing and reporting

information defining a ______________.

(a) specific job: (b) specific product

(c) specific service (d) specific person

Q3. What of these factors are not responsible for the growth of HRM?

(a) Development of scientific management and awakened sense of social

responsibility.

(b) The problem of how the available human resource could effectively

minimise the cost and maximise the production.

(c) Technical factors, awakening amongst workers, attitude of the government,

cultural and social system.

(d) Change in standard of living.

Q4.The skills that are available within the company is known as

(a) Human Resource inventory (b) HRIS

(c) Skills inventory (d) Management inventories

Q5. Human Resource planning does not involve ______________.

(a) effective employee development programme

(b) base for recruitment (c) base for selection policy

(d) core competency of a company

Q6. Job analysis, HR planning, recruitment, selection, placement,

inductions and internal mobility are few important functions which come

under the heading of______________ of HRM.

(a) integration function (b) development

(c) maintenance (d) procurement function

Q7. Directing is one of the important functions of HRM which comes

under___________.

(a) managerial function (b) operative function

(c) technical function (d) behavioral function

Q8. Whom does Human relation approach refer to?

(a) Welfare and growth of employees (b) Salaries

(c) Psychology of workers (d) Appraisal

Q9. Which of the following is a method of job analysis?

(a) Questionnaire method (b) Observation method

(c) Interview (d) Trend analysis

Q10. ___________ provides information on the human attributes in terms

of education, skills, aptitudes, and experience necessary to perform a job

effectively.

(a) job description (b) job specification

(c) job analysis (d) job evaluation

Q11. Job specification includes _____________.

(a) Physical characteristics (b) Psychological characteristics

(c) Personal characteristics (d) Company characteristics

Q12. TQM’s major emphasis is on___________ .

(a) Product quality (b) Company profitability

(c) Customer delight (d) Employee training

Q13. Ability to perform exceptionally well and increase the stock of

targeted resources within the firm is called ___________.

(a) productivity (b) efficient (c) effective (d) competency

Q14. Staffing does not include _______.

(a) workload estimation (b) termination (c) appointments of personnel,

placement (d) Competitor analysis

Q15 .To calculate the need for manpower on the basis of the average loss of

manpower due to leave, retirement, death, transfer, discharge, etc. is

known as____________.

(a) work load analysis(b) workforce analysis(c) job analysis (d) forecasting

Q16. Trend analysis is a ______________

(a) Forecasting technique (b) Skills inventory

(c) Job analysis technique (d) Media analysis

Q17. The factual statement of the duties and responsibilities of a specific

job is known as _____________.

(a) job description(b) job specification(c) job analysis(d) job evaluation

Q18. The procedure in which relevant information relating to a job and

its requirements is systematically discovered and noted is

(a) job analysis (b) job specification (c) job classification(d) job evaluation

Q19. Which pair in order of sequences represents the first and last step in a

training programme?

(a) Identifying training needs, and evaluation of training programme

(b) determination of training needs, and designing the training programme

(c) designing training programme, and implementing it

(d) evaluating of training programme, and implementing it

Q20. Career development involves

(a) conscious determination of career aspirations and potentialities of employees

and matching them with the organisation’s needs

(b) providing counselling to students to choose their careers

(c) providing information to students about opportunities of employment

(d) determining the potentialities of students for a suitable career

Q21. Job evaluation essentially seeks to

(a) determine the relative worth of various jobs in an organisation in monetary

terms

(b) evaluate the performance of employees on their respective jobs

(c) evaluate the importance of various jobs in the organisation

(d) establish the hierarchy of various jobs in the organisation

Q22. The content of job description involves_______________.

(a) job title, condition of work, educational qualification

(b) Personal relationships on the job (c) Structure

(d) Informal communication

Q23. In-basket training is involved in

(a) vestibule training (b) on-the job training

(c) simulation (d) coaching

Q24. To calculate the number of persons required for various jobs with

reference to a planned output is called ________________.

(a) work load analysis (b) workforce analysis

(c) job analysis (d) forecasting

Q25. Concept of MBO was first developed by

(a) Peter Drucker (b) Douglas McGregor (c) Henry Fayol

(d) Clayton P. Alderfer

Q26. Which is not a form of participative management?

(a) information-sharing (b) associative participation

(c) consultative participation (d) head hunting

Q27. Which form of participative management promotes “semi-

autonomous work-groups”?

(a) quality of work life (b) quality circle

(c) self managing teams (d) quality group

Q28. The objectives of HR audit are –

(a) to determine the effectiveness of management programmes

(b) analyse the factors and recommend for correcting deviations

(c) extent to which line managers have complied with HRD polices

(d) to study manpower qualities

Q29. Promotion is basically a reward for –

(a) Efficiency (b) Seniority (c)Physical fitness (d) Faithfulness

Q30. What is 360° appraisal?

(a) a process that criticizes employees.

(b) a process that praises employees.

(c) a process that provides an employee with feedback about his / her workplace

performance

(d) Simulated approach

Q31. Human needs have been divided into five categorises under need

hierarchy theory. Who invented this theory?

(a) McClelland (b) John Atkinson (c) Maslow (d) Herzberg

Q 32. Phases of performance counselling are –

(a) Rapport building / employee should discover own SWOT / action plans,

through brainstorming sessions

(b) Understanding personal problems and resolving them

(c) Personal objectives integration

(d) Rapport building

Q33 . O Connor Finger test is a/an ___ test.

(a) Interest (b) Personality (c) Aptitude (d) Ability

Q34. The term industrial relations means –

(a) Relationship between Management, Labour and employees

(b) Relationship between Management and judiciary

(c) Relationship between Management and customers

(d) Relationship between Management and other companies

Q35. Collective bargaining is a procedure regulated by agreements between

their –

(a) Bargaining agents and employers (b) Employees and customers

(c) Employers and customers (d) Labour officer and Trade unions

Q36. Advantage of grievances handling procedure –

(a) Management can know employees feelings

(b) Employee grievances get elevated

(c) Exploit employees (d) Exploit customers

Q37. When does any discipline become ineffective?

(a) Longer time spending in action b) Discipline is high

(c) Awareness of rules and performance criteria

(d) Awareness of performance criteria

Q38. How can the conflicts within employers and employees can be settled

or prevented?

(a) Grievance handling (b) Threaten (c) Lay off (d) Demote

Q39. What is the role of the trade-union in collective bargaining?

(a) Blindly support employees

(b) Better conditions of work life for workers

(c) Threaten management (d) Blindly support employers

Q40. The core elements of HRM are –

(a) People and management (b) Dynamics

(c)Environmental change (d) Volatility

Q41. In a ____________, teams are formed and team members report to

two’ or more managers.

(a) Formal Organization (b) Informal Organization

(c) Matrix Organisation (d) Divisional Organization

Q42. Change Management is –

(a) It is a systematic approach in dealing with change from the individual &

organisational level

(b) A gradual process of disequilibrium in one’s personal life

(c) Change in marketing

(d) Complacency

Q43. Human Resource Planning (HRP) process is –

(a) A process, by which an organisation ensures that it has the right number &

kind of people at the right place, at the right time, capable of effectively &

efficiently completing those tasks that will help the organisation achieve its

overall objectives

(b) Career planning of an individual

(c) Career planning of an employee

(d) Change management

Q44. Who is responsible to manage change?

(a) Employees, management, executives

(b) Management, customers, dealers

(c) Executives, customers, dealers

(d) Dealers, competitors, management

Q. 45. Job Rotation can be defined as –

(a) Lateral transfer of employees among a number of different positions and

tasks within jobs which requires different skills and responsibilities

(b) Sending employees to a competitor’s company

(c) Layoff of employees

(d) 360 degree appraisal

Q46. Cause of Genuine Grievance cannot be –

(a) Discrimination, lost opportunity, Injustice etc. done to the employee

(b) Lack of Harmony, Mutual trust & understanding

(c) Unreasonable Charter of demands

(d) Harmony and justice

Q47. __________ consists of the learning opportunities designed to help

senior level managers develop further.

(a) Training

(b) Development programmes

(c) Internship

(d) Promotion

Q48. _________ methods are generally applied on the workplace while em-

ployees are actually working.

(a) On the Job training

(b) Off the job training

(c) Lecture

(d) Debate

Q49. Selection is-

(a) A process of picking up individuals with requisite qualifications &

competence to fill jobs in the organisation

(b) A process of inviting applications

(c) Appraising employee performance

(d) Promotion

Q50. Interviews cannot be —

(a) One-to-one

(b) Panel interview

(c) Sequential Interview

(d) 360 degree appraisal


Subject: International Business


1. An arrangement where two business come together and one of them cease to exist it is

known as_______.

a. Joint venture

b. Merger & Acquisition

c. Licensing

d. Contract manufacturing

2. Countries undertake international business because they are _____.

a. Not self sufficient

b. Self sufficient

c. Just for political reasons

d. None of the above

3. During fifth stage of globalization the company becomes _____.

a. Truly a global citizen Second

b. Appoints local partners

c. Starts exporting goods


4. In assembly operations A manufacturer who wants to take advantages of different

manufacturing facilities and does not want to establish complete manufacturing

facilities oversea can undertake _____.

a. Sets up a wholly owned subsidiary

b. A manufacturer who wants to take advantages of different manufacturing

facilities Third country location

c. Both of the options

d. None of the given options

5. . __________ is known as the reputation of the business and covered under WTO,

TRIPs.

a. Goodwill

b. Patents

c. Trademarks

d. Registered trademarks

6. Via __________ policy government determines various trade related activities.

a. Exim Policy

b. Monetary policy

c. Economic policy

d. Trade policy

7. GATT was transformed to _______.

a. ILO

b. IMF

c. WTO

d. CAT

8. Manila Philippines Head office of ADB is in _____

a. ADB

b. ILO

c. IMF

d. WB

9. NAFTA is a

a. Free Trade Area

b. Economic Union

c. Political Union


10. International marketing has ____________ challenges than domestic marketing

a. Less

b. Medium

c. More

d. None of them

11. Its said that Product extension, communication adaptation has been used when _____

a. product changes and way of advertisement also changes

b. product remains the same but way of advertisement

c. product remains the same and way of advertisement changes

d. product remains the same and advertisement also remains the same

12. Work force diversity is more in ___________.

a. International

b. Domestic

c. Inter-firm

d. None of them

13. If FOB Revenue is INR 1,64,000 and Duty Drawback is 8% then, FOB Price is

________ INR.

a. 1,51,851

b. 1,85,851

c. 1,51,800

d. None of them

14. Scheme applicable for import of Capital goods is ___________.

a. EPRM

b. EPCC

c. EPCE

d. EPCG

15. A clean mate’s receipt is issued if the officer Qualified

a. Satisfied with the packing of the goods.

b. Is not satisfied with the packing of the goods.

c. Satisfied with the quality of the goods.


16. Second step of towards ISO 14001 certification

a. Select the certifying body

b. Document view

c. Complete questionnaire

d. Certification assessment

17. To qualify as four star export house minimum export performance in USD is ______.

a. 300 million

b. 250 million

c. 500 million


18. Expand the following SAARC ________

a. South Asian Association for Regional Cooperation

b. South African Association for Regional Cooperation

c. South American Association for Regional Cooperation

d. None of them

19. Percentage of import duty paid to the drawback will be 95% , if the period between

the date of clearance and the date of when the goods are placed under customs control

for export is less than ______.

a. 3 months

b. 8 months

c. 12 months

d. 5 months

20. Year of establishment of SAARC

a. 1987

b. 1985

c. 1969

d. 1996

21. Dumping is _________

a. Legal

b. Illegal

c. Partially legal


22. Once the wagons have been allotted, goods are loaded in Airplanes, for which airport

authorities issue ___________

a. Railway receipt

b. Airway receipt

c. Bill of lading

d. None of these

23. A _______ is a legal document between a shipper and carrier detailing the type,

quantity, and destination of goods.

a. carters order

b. shipping document

c. mate’s receipt

d. bill of lading

24. Which of following is false:

a. World bank gives soft (lower interest rate) loans

b. World bank was formed after collapse Bretton woods system

c. World bank is central bank of USA

d. World bank was also known as IBRD

25. Which of the following is true for repatriates?

a. they face reverse cultural shock

b. they are happily accepted by old team

c. they get similar benefits as in foreign assignment

d. they are given promotion in home country

26. If a company does not differentiates between employees of any country and wants

only best talent from all over its said to be using _________ approach.

a. Geocentric

b. Regiocentric

c. Polycentric

d. Ethnocentric

27. Mergers’ and acquisition are _______ strategies.

a. Market entry strategies

b. Both of the above

c. Expansion strategies


28. Which of the following does not encourages free trade.

a. Tariff barriers

b. Trade blocks

c. Forex restrictions

d. All of the above

29. Retrospective amendments done in income tax act, 1961 comes under _____

environment.

a. Cultural

b. Legal

c. Demographic

d. Technological

30. In _________ economy ownership of assets is not encouraged.

a. Capitalist

b. Mixed

c. Socialist

d. Rationalist

31. World bank is also known as_________.

a. International bank for restructuring and development

b. Supranational bank for restructuring and development

c. International bank for reconstruction and development

d. None of the other options

32. A new department was added in the functioning of ________ that provides a forum

for negotiations among member countries for settling disputes.

a. ADB

b. UNCTAD

c. ILO

d. WTO

33. Head quarters of World Bank is in _________

a. Washington, DC, USA

b. Manila Philippines

c. Geneva, Switzerland

d. Mumbai, India

34. European Union (EU) is ____________ type of union.

a. Political

b. Custom

c. Common market

d. Economic and political

35. In __________ strategy, offers are such that it will attract the end-users or customers.

a. Push

b. Pull

c. Standardized

d. Mixed

36. In sporadic dumping,________________.

a. A manufacturer sells at a lower cost than its competitors, since it has cost

advantage

b. A manufacturer sells his unsold, distressed, excess inventories

c. A manufacturer sells at a loss to gain market share and drive competition

d. A manufacturer sells at a lower price in its home market, since foreign demand

is less elastic

37. _________ employees belonging to the country of the firm where the corporate

headquarters are located.

a. Host country

b. Home country

c. Third country

d. None of these

38. _______ are people who move in to a new country to find work and other

opportunities

a. Expatriates

b. Repatriates

c. Immigrant

d. Inpatriates

39. When goods can be imported by only designated agencies its known as ______.

a. Quota imports

b. Canalization

c. Liberalization

d. Camelization

40. The quotation covers all the charges upto putting the goods alongside the ship to be

paid by the exporter is known as ___________

a. Free On Board (FOB)

b. Cost and Freight (C&F)

c. Free Alongside Ship (FAS)

d. Cost Freight & Insurance (CIF)

41. Shipping bill is prepared by _________.

a. Cleaning and forwarding agent

b. Clearing and forwarding agent

c. Clearing and foreign agent


42. ___________ issues a Mate’s receipt

a. Custom authority

b. Commanding officer of the ship

c. Consular authority

d. None of them

43. ISO _________ is an international, voluntary environmental, management standard

guides and technical reports.

a. 14000

b. 9000

c. 15000

d. 16000

44. Which of the following is not an advantage of forward contracts.

a. Profits from forex fluctuations can’t be made

b. Excat amount of currency is covered

c. Date of maturity can be customized

d. Risk is mitigated

45. Small manufacturers who cannot afford to have their own facilities and personnel opt

for ____________

a. In process quality control

b. Consignment wise inspection certificate

c. Consignment wise inspection certificate

d. None of the them

46. A country that does not trade with any other country is known as ___________.

a. Closed

b. Open

c. Developed

d. None of them

47. To qualify as one star export house minimum export performance in USD is ______.

a. 3 million

b. 25 million

c. 2000 million


48. Foreign trade policy is also known as _______ policy.

a. IMEX

b. TEEE

c. EXIM


49. EXIM procedures are undertaken by ___________.

a. Del agents

b. Brokers

c. Clearing and forwarding agents


50. A manufacturer who wants to take advantages of different manufacturing facilities

and does not want to establish complete manufacturing facilities oversea can

undertake _____.

a. Assembly operation b. Third country location c.Acquisition

b. Licensing


Subject : CENTRAL BANKING


1 The Reserve Bank of India was Nationalised in the year

A 1935

B 1949

C 1947

D 1936

2 How many Deputy Governors are there in RBI?

A 2

B 4

C 5

D 10

3 At present there are ______ core principles for banking supervision.

A 25

B 28

C 29

D 30

4 The RBI sanctioned the amalgamation of the Centurion Bank with the HDFC Bank

on ______.

A May 23, 2008

B August 13, 2008

C June 30, 2009

D March 31, 20

5 The Banking regulation was passed in the year

A 1956

B 1945

C 1959

D 1949

6 The ____________ is the apex bank of the banking sector of an economy.

A Central Bank

B State Bank

C Development Bank

D Cooperative Bank

7 Licenses to start a bank is issued by the

A SEBI

B RBI

C IRDA

D RRA

8 Bank nationalisation took place in __ and __

A 1969 & 1980

B 1968 &1981

C 1965 &1978

D 1956 & 1976

9 ________ market is the most volatile market.

A Call money

B Capital market

C Secondary market

D Primary market

10 Corporates raise capital by issuing ________________________.

A commercial paper

B Treasury bill

C Repo

D money market

11 The present governor of the RBI is the ________governor

A 25th

B 27th

C 28th

D 29th

12 Monetary control __________________.

A is the policy tools used by a central bank to achieve specific monetary policy targets.

B are economic variables that are only indirectly under the control of a policymaker

and that the policymaker analyses to determine whether a particular policy is having

the anticipated effects on the economy as a whole.

C measures of overall economic performance, such as GDP growth, that are used to

assess the impact or effectiveness of economic policies.

D is an instrument to control the growth of some measure of the money supply.

13 The process by which RBI or any Central bank protects the economy against adverse

Economic shock is known as

A protection

B sterilization

C liberalization

D stabilization

14 Example of e-money does not include

A Digital currencies

B Electronic fund transfer

C Pay in cash

D Digital wallet

15 Advantage of inflation targeting

A Money Supply

B Inflexibility

C Low inflation

D Depression

16 Exchange rate targeting helps to

A Identify Currency with public

B Identify currency with bank

C Identify currency flow in the country

D Identify Currency in hand

17 M1 means

A Narrow money

B Broad money

C Reserve money

D Contingent Money

18 Formula for calculating M4

A M4 = M3 + All deposits with post office savings banks

B M4 = M3 + All deposits with banks

C M4 = M1 + total production output

D M4 = M3 +M2

19 __________ means that the central bank uses its tools in order to reach a certain

money supply level in the economy.

A Foreign market targeting

B Exchange rate targeting

C Inflation rate targeting

D Money supply targeting

20 M4 can be referred as ____________

A Narrow money

B Broad money

C Reserve money

D Contingent Money

21 What does the word autonomous means with reference to RBI?

A Autonomy to regulate monetary supply

B Autonomy to accept deposits from public

C Autonomy to give permission to commercial banks to issue currency

D None of the above

22 __________ determines the way in which the central government earns money

through taxation and how it spends money.

A Monetary Policy

B Fiscal policy

C Foreign exchange policy

D Government Policy

23 Executive directors team of RBI consists of ______________

A 10 members

B 12 members

C 05 members

D 08 members

24 Inter bank borrowing rate is called as ___________

A Statutory liquidity ratio

B Cash reserve Ratio

C Call Rate

D Bank Rate

25 __________ involves the management of the money supply and interest rates by

central banks.

A Monetary policy

B Foreign exchange policy

C Government Policy

D Fiscal Policy

26 It is the minimum lending rate of the RBI at which it rediscounts bills of exchange

and government securities held by the commercial banks.

A Bank rate policy

B Open market operations

C Inflation policy

D Inflation Targeting

27 It is one of the factor of fiscal policy.

A Stimulate economies out of periods of recession

B It can increase the money supply in market

C The tools used by governments to change levels of taxation

D Economic Recovery

28 What is the direct instrument of monetary policy?

A CRR

B SLR

C Time liability

D Moral Suasion

29 Which of the following is not included in the work of RBI?

A Bank of the banks

B Credit controller

C Custodian of foreign currency

D Allocating funds directly to the farmers for agricultural development

30 As a part of the assessment process, standard as well as ad-hoc stress testing is

conducted periodically to assess potential adverse scenarios related to perceived

Volatility of loss events that could negatively affect banks is called as _________.

A The Bank Risk Profile

B Stress Testing Reports

C The CAMELS report

D PSA report

31 On-site inspection of banks is carried out on _______

A Annual Basis

B Once in two years

C Half yearly basis

D None of the above

32 The National Bank Surveillance System (NBSS) is a computerized monitoring

system developed to_____

A To consolidate working of banks

B To check the credit limit of bank

C To understand total depositor in banks

D Collect data and evaluate the financial performance of national banks.

33 Governing body of Federal reserve system is_____________.

A President of USA

B Government of USA

C Business houses of the country

D Board of directors

34 How many member countries world bank has?

A 150

B 170

C 189

D 200

35 What does settlement mean?

A Payment or transaction settle

B Resolution of member countries political issues

C Changing monetary policy norms of member economies

D Reversing a transaction

36 Which of the following is not the function of ECB?

A Price stability

B Control money supply

C Rigid Policy framed

D Safety of payment and issue currency

37 Which of the following is not the goal of federal reserve system?

A Stability in the financial system

B Price stability—fighting inflation

C Full employment

D Depositing deposits from general public

38 Who operates banking system in England

A Bank of England

B Lloyds banking group

C HSBC Holdings

D Alicia Bank

39 Which central bank is the oldest?

A Bank of England

B People Bank of China

C Bank of Japan

D Reserve Bank of India

40 Function of ADB :

A It creates growth and relation with member countries

B It provides assistance to private and public sector of economies

C Also provide advisory services

D All the above

41 All bank's data, for the purpose of: A Comprehensive view of the bank, Identifying

the high-risk areas in bank., the inspection scope and sample., and inspection needs is

the _____________________.

A On-site inspection phase

B Pre-inspection phase

C Post-inspection phase

D Offsite inspection phase

42 What does IDA stand for?

A Indian development association

B International Development Association

C Institute of Defence Association

D Institute of developing Agency

43 Bank of England is headquartered in _____________.

A Manchester

B London

C Birmingham

D Edinburg

44 When did the Government appoint for transfer of stake?

A 29-Jun

B 26-May

C 05-Apr

D 01-Apr

45 Which of the following is true about the restrictions on RBI?

i) It is not to compete with the commercial banks.

ii) It is not allowed to pay interest on its deposits.

iii) It cannot engage directly or indirectly in trade.

iv) It cannot acquire or advice loans against immovable property.

v) It is prohibited from purchasing its own shares or the shares of any other

bank or any company or granting loans on such security.

A only (i)and (ii),

B (iii) and (iv)

C all the above

D Only (i)

46 Which is the minimum lending rate decided by RBI which shall be adopted by all

Public Sector Banks?

A Bank rate

B Base rate

C Overnight rate

D None of the above

47 ____________is considered as an alternative to central bank.

A Currency board

B Currency exchange

C currency foreign board

D currency exchange policy

48 Growth with ___________ is one of the important objectives of monetary policy.

A inflation

B profit

C price stability

D supervision

49 A system where a currency’s value is tied to the value of another single currency, to a

basket of other currencies, or to another measure of value, such as gold.

A Floating exchange rate

B Fixed exchange rate

C Pegged exchange rate

D None of the above

50 According to which issue of guidelines did the RBI grant approval for the setting up

of 13 new privately-owned domestic banks?

A April, 1980

B March, 1971

C January, 1993

D September, 1993


Subject:TURNAROUND MANAGEMENT


1 Many organisations declined due to __________.

A falling sales

B declining profits

C declining demand

D all of these

2 In PESTLE, S stands for ___________________.

A Security

B Standardisation

C Social

D State

3 Best possible usage of resources is _________________.

A economic objective

B global objective

C social objective

D national objective

4 Increasing exports is______________________.

A economic objective

B global objective

C social objective

D national objective

5 "________-occurs when one function previously carried over by a supplier or a distributor

is being taken over by the company in order to reduce costs, to maintain quality of input and

to gain control over scarce resources"

A Vertical growth

B Horizontal growth

C Parallel growth

D Independent Growth

6 This strategy aims at increasing the sale of present product in the presented market through

aggressive promotion.

A Market penetration

B Market development

C Product development

D Sales development

7 __________is the process of influencing people to achieve group objectives.

A Staffing

B Leadership

C Controlling

D Directing

8 ___________is a form of business organization which is also known as One Man Show.

A Sole Trading Concern

B Partnership firm

C Joint Stock Company

D Co-operative Society Model

9 ___________ is not an objective of the business.

A Producing good quality of products

B Expand the business

C Improve the image

D Making Loss.

10 Modern concept of business includes______________.

A Balance between Profits, customer satisfaction and society

B only society interest

C Preserve and enhance customers well being

D Only profit making

11 Which of the following statements is true?

A Environment is not dynamic

B Business may not find a positive environment in all situations.

C Business lacks control over the environment.

D Environment has large impact on the business.

12 Internal growth strategies include __________________.

A Diversification & Mergers

B Mergers & Takeover

C Diversification & Intensification

D Global expansion

13 Market penetration strategy focuses on________________.

A Increase of market share through reduction in price

B Entering in new market

C Making new products

D Charging high price

14 Hero cycles has set up a subsidiary to manufacture cycle wheels and tubes is an example

of_____________

A Backward integration

B Forward integration

C Mergers

D Horizontal integration

15 Diversification results in ____________.

A Spreading of risk

B Increase of risk

C Avoidance of risk

D High risk taking

16 ______________ is also known as Related Diversification.

A Concentric Diversification

B Conglomerate Diversification

C Horizontal Diversification

D Integration

17 What is PESTLE analysis?

A Analysis of internal environment.

B Analysis of micro environment.

C Analysis of external Environment.

D Analysis of economic environment.

18 Sick industries refer to those units _________.

A which performs poorly

B incur cash losses for consecutive years

C gradually erode the entire net worth

D all of these

19 The following are the ways by which sickness can be prevented by financial

institutions__________________.

A Liquidation of unit

B Careful project appraisal

C providing freedom of operation

D marketing

20 According to MSMED Act, 2006 a Micro Manufacturing Enterprise has investment in

plant and machinery up to _______________ lakhs.

A 10

B 15

C 25

D 30

21 Under modernisation fund, the Government of India provides financial assistance under

Textile and Modernisation Fund to _____________ industry.

A Jute

B cotton

C sugarcane

D Pulses

22 The entire responsibility for diagnosing, identifying, investigating, rehabilitating, reviving

and ultimately recommending the winding of such a sick unit lies with the_____________.

A RBI

B SEBI

C BIFR

D ROC

23 __________establishes an elaborate regime to deal with sick industrial units.

A SICA

B BIFR

C CERA

D SEBI

24 SICA was enacted in the year_________

A 1985

B 1986

C 1989

D 1990

25 What is the full form of IIBI?

A Indian Industrial Bank of India

B Investment Interbank Bank of India

C Industrial Investment Bank of India

D Industrial infrastructure Bank of India

26 Sickness in Industrial Units is a ____________ process and does not develop suddenly

A Slow

B Gradual

C Instant

D speedy

27 BIFR has been replaced by -------

A NLCT

B NCLT

C LTNC

D NTCL

28 Sick Industry can also be classified as any unit which fails to pay_________ consecutive

instalments of interest and/ or principal.

A One

B Two

C Three

D Four

29 As per the principles of TQM, Foundation of the TQM structure

includes______________.

A Ethics

B Recognition.

C Training

D Communication

30 ____________ Is the process of fundamental rethinking and radical redesign of business

processes to achieve dramatic improvements.

A Restructuring

B Downsizing

C BPR

D TQM

31 The process of eliminating errors thereby improving the overall quality is ________.

A TQM

B BPR

C Restructuring

D BPO

32 ________carries out actual job of implementation of BPR.

A BPR Leader

B Process Owners

C BPR Team

D External Consultant

33 JIT stands for________.

A Just in Through

B Just in Tunnel

C Just in Type

D Just in Time

34 ________is a workflow diagram to bring forth a clear understanding of a process or series

of parallel processes.

A Process Mapping

B Benchmarking

C JIT

D Kaizen

35 In the 5 S Principles Sort is related to _______________.

A Seiso

B Shitsuke

C Seiton

D Seiri

36 Facebook is an example of __________Networking.

A Social

B Personal

C Education

D Business

37 Which of the following are not the advantages of SOHO?

A Low Cost

B Location Flexibility

C No restriction on number of employees

D No sharing of profits

38 In the 5 S Principles Straighten is related to _______________.

A Seiso

B Shitsuke

C Seiton

D Seiri

39 Lions Club is an example of _____________.

A Professional Association

B Trade organisation

C Community organisation

D Technical organisation.

40 It is a graphical representation of sequence of steps in a process________________.

A flaw chart

B flow chart

C flew chart

D flow processing

41 Pizza is an example of ___________ franchising.

A business format

B product

C manufacturing

D service

42 _____________ style of decision making can also be termed as “autocratic style”

A Analytical

B Conceptual

C Directive

D Behavioral

43 _____________ style is also called as participative style of decision making.

A Analytical

B Conceptual

C Directive

D Behavioral

44 Conflict management is a type of ______________ skill for leadership team.

A Human

B Organizational

C Technical

D Economical

45 PDCA stands for -------

A Plan Direct Check Act

B Plan Do Check Act

C Plan Direct Check Action

D Plan Deal Correct Arrange

46 Which of the following are not the indicators of successful Turnaround?

A Increase in Sales

B Change in Management

C Increase in Market share

D Financial Stability

47 The SICA applies to which companies?

A Public

B Private

C Public and Private both

D None of these

48 Which stage of sickness indicates Incipient Sickness within a company?

A Stage I

B Stage II

C Stage III

D Stage IV

49 External Causes of Industrial Sickness do not include which of the following?

A Energy Crisis

B Recession

C Irregular Supply of Inputs

D Mismanagement

50 _______________ is a final resort for a declining company.

A Sell Off

B Spin off

C Liquidation

D Modernization

t.y. b.com (banking & insurance) semester vi subject : sample … 6 tybcom b and … ·...

Documents