a) It does not trade in its investments in shares, bonds, debentures, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment.
b) It holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.
c) Its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its net assets.
1) a and b
2) a and c
3) b and c
4) a, b and c
5) All are incorrect
Ans: (3)
Q.2. Select the correct set of statements in respect to NBFCs.
a) It should have a minimum net owned fund of ₹ 200 lakh.
b) NBFCs do not form part of the payment and settlement system and can issue cheques drawn on itself.
c) deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.
d) NBFCs whose asset size is of ₹ 500 cr or more as per last audited balance sheet are considered as systemically important NBFCs.
1) a, b & c
2) a, b & d
3) a, c & d
4) b, c & d
5) a, b, c & d
Ans: (3) NBFCs can't issue cheques drawn on itself.
Q.3. Read the following statements carefully and select the correct set of pairs:
a) A company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines etc.
b) A company which is a financial institution carrying on as its principal business the acquisition of securities.
c) A company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advances or otherwise for any activity other than its own but does not include the Company metioned in statement (a).
1) (a) = Asset Finance Company; (b) = Investment Company; (c) = Loan Company
2) (a) = Investment Company; (b) = Asset Finance Company; (c) = Loan Company
3) (a) = Asset Finance Company; (b) = Loan Company; (c) = Investment Company
4) (a) = Loan Company; (b) = Asset Finance Company; (c) = Investment Company
5) (a) = Investment Company; (b) = Loan Company; (c) = Asset Finance Company
Ans: (1)
Q.4. Select the correct set of statement from the following:
a) The benefit that a borrower gets due to decrease in the value of money because of inflation is known as ,Inflation Premium'.
b) A situation where prices of commodities increase due to increase in wages and wages increase due to increase in commodity prices is known as 'Inflation Spiral'.
c) When a government increases its expenditure, cut down the taxes in order to boost the inflation in the economy, the situation is known as 'Reflation'
1) a and b
2) a and c
3) b and c
4) a, b and c
5) All are incorrect
Ans: (4)
Q.5. Select the correct statement form the follwoing:
a) Mutual Fund is an investment vehicle through which a large number of investor pool their funds to invest for common objective.
b) The pooled fund is called 'Corpus'
c) We devide the net market value of the corpus with the number of outstanding units to calculate NAV.
d) AMFI acts as regulator of Mutual Fund Companies.
1) a, b & c
2) a, b & d
3) a, c & d
4) b, c & d
5) a, b, c & d
Ans: (1) SEBI is the regulator of MF industry.
Q.6. Which of the following statement is correct in context to Mutual Fund?
a) An investor can invest and divest in a scheme at any point of time is a feature of Open Ended Scheme.
b) Entry load on Open Ended Schemes have been restricted by SEBI.
c) Banks can also issue MF.
d) There is lock in period in ELSS.
1) a, b & c
2) a, b & d
3) a, c & d
4) b, c & d
5) a, b, c & d
Ans: (4) Banks can not issue the mutual funds but they can act as MF agents.
Q.7. Select the correct statement in context to ULIP?
a) These are only Equity oriented intruments.
b) This is a hybrid instrument containing the benefits of both Insurance and Mutual Funds.
c) The investment made in ULIP is exempted for Tax under section 80(c) of Income Tax Act.
d) ULIPs come under the regulatory prerogative of IRDAI.
1) a, b & c
2) a, b & d
3) a, c & d
4) b, c & d
5) a, b, c & d
Ans: (4) ULIPs may be Eq. oriented, Debt Oriented and Balanced like MFs.
Q.8. Which of the following statement is correct in context to Universal Banking in India?
a) All the banks in India were having the license for Universal Banking untill the licensing of Small and Payment Banks.
b) In India a bank may be a universal even if it is not providing Insurance and Investment Solutions other than Time & Demand Deposits.
c) The minimum paid-up capital requirement to open a universal bank in Private Secotr in India is Rs. 500 crores.
1) a & b
2) a & c
3) b & c
4) c & d
5) a, b and c
Ans: (5)
Q.9. Which of the following statement is true in context to Indian Economy?
a) It is the 3rd largest economy (Nominal Basis) of Asia continent.
b) It is the 2nd largest economy (PPP basis) of Asia continent.
c) It is the 3rd largest economy (PPP basis) of the World.
d) China's GDP is almost 2.5 times of India's GDP (both on PPP basis).
1) a, b & c
2) a, b & d
3) a, c & d
4) b, c & d
5) a, b, c & d
Ans: (5)
Q.10. Which of the following statement is correct in context to Basel Accord?
a) The norms have been agreed upon on the recommendations of a commettee under the chairmenship of Mr. S.Basel
b) The objective is to improve risk management and governance.
c) It also works towards strengthen banks' transparency and disclosures.
d) It helps banks to improve the banking sector's ability to absorb shocks arising from financial and economic stress.
1) a, b & c
2) a, b & d
3) a, c & d
4) b, c & d
5) a, b, c & d
Ans: (4)
