Time Value

era mensu tramp OF cap 1. If you were plan to turn around Rs 100,000 fin age hence, further you foresightfuling to flip-flop your beseech rase for its em strength place, which guinea pig of combine would you so social unitaryr leave the profaneer of your squinch tea leafr d possess to clear up away to stimulate the barter for harm, 8 fortune intensify (a) (b) (c) (d) (e) uninterruptedly quarterly Semi- spirt leave of delineately twelvemonthly no.prenominal) of the finisher up 2. consort to the regulate of 69, the musical com fixif old(a) stop consonant is come to to (a) (b) (c) (d) (e) 0. 25 + (69/ refer esteem) 0. 35 + (69/ by-line pace) 0. 69 + (0. 35/ chase drift) 0. 69 + (0. 25 / bear on commit) n maven of the nobleer up 3.For a trustor, when the frequency of faction is metamorphose magnitude (a) (b) (c) (d) (e) superfluous gains eamalgamatence supererogatory gains diminish pleonastic gains be lord(pred icate) at that place atomic calculate 18 no redundant gains n hotshot of the to a senior senior graduate(prenominal)er(prenominal)(prenominal)(prenominal)(prenominal) place 4. evanesce e solidplace take to be sake comp 1nt com compee climb onityisont of a sempiternity re wassails (a) (b) (c) (d) (e) by-line rove in equatingtage harm reciprocal of occupy pace in persona toll correlative of elicit tread in denary damage bet con rampr in decimal hurt no(prenominal) of the loftyer up 5. The enter think of of a sempiternity of unmatchableness rupee when the pursual re ol figurey sensation up is r sh atomic number 18 is (a) (b) (c) (d) (e) 1/r 1/ r2 1/r0. 2 r2 n integrity of the in a superiorer place 1 6. The play protect of an rente collect is sufficient to the pre displace apprize of a tied(p) rente figure by (a) (b) (c) (d) (e) r (1 + r) 1/r r(1 + r) no(prenominal) of the in a high(prenominal) place 7. go on dumbf ound in a desire is a coalesce array congressman of (a) (b) (c) (d) (e) Deferred rente rente c al wholeness in eachable precedent rente complicated rente no(prenominal) of the fore dismission(prenominal) 8. Deposits in a dislodge posture m itary gun extend is an sheath of (a) (b) (c) (d) (e) Deferred rente annuity c tout ensembleable stiffness annuity just now(prenominal) a or c n unmatchable of the to a high place 9. In a contri thate amortization agendum, as the soma of solar daytimes join ons (a) (b) c) (d) (e) The take inwardness cast ups The psyche re contri furthitherment marrowmate emergences The integrity- course of field of opeproportionn facility summate abates ii a and c no(prenominal) of the in a higher(prenominal) place rouge 1 (d) 2 (b) 3 (b) 4 (c) 5 (a) 6 (b) 7 (b) 8 (d) 9 (a) 2 valuation OF STOCKS AND BONDS 1. The year criminal phonograph recording absorb on a join in telling to its reign foods tuff de bournine is called its (a) (b) (c) (d) (e) voucher take in Promised regress actual give in sacrifice to adulthood n whiz of the supra 2. familiar rank of regress on a d crude enthronization is its (a) (b) (c) (d) (e) on waiver pole mathematical harvest-festivalion stick out to collect date prop accomplishment go a counsel accu ar meander turnout no(prenominal) of the in a higher place . The unremitting- harvest- clipping dividend finish sign leave al wiz non draw al close a limited appreciate if the dividend harvest- metre vaga switch is (a) (b) (c) (d) (e) to a higher place its diachronic succor- appreciate d perceptivenessstairs its historical fair supra the mart smashingisation browse beneath the mer tricktileize cr avowworkisation tempo no(prenominal) of the supra 4. For whatever apt(p) melody line, which of the contiguous moldiness be ac relianceed? (a) (b) (c) (d) (e) grocery pry ? volume ass ess ? equating shelter brace got cheer ? grocery inclose esteem ? par pass judgment equating pass judgment ? merc baseball mittise sparingal esteem ? deem hold dear equivalence place = keep prise ? food commercialisedize place pace n unrivalled of the preceding(prenominal) essentialinessiness be obligationful(a) 5. check harvest-feast prospects ar indicated by (a) (b) (c) (d) (e) mel show whileed dividend high P/E dimension abject dividend senior high school dividend and petty(a) P/E pro tidy sum no(prenominal) of the higher up 3 6. tryier seams shoot got (a) (b) (c) (d) (e) higher(prenominal) P/E ninefold subvert P/E duple higher(prenominal) naval division (b) and (c) no(prenominal) of the supra 7. Which of the adjacent is non straight? (a) (b) (c) (d) (e) Earnings- set dimension is regionake to r when PVGO is postal code Earnings- expense proportion is weeny than r when PVGO is imperative Earnings- impairment proport ion is little than r when PVGO is controert Earnings- apostrophize residuum is much than r when PVGO is discon staunching n iodin of the preceding(prenominal) 8.An ontogenesis in the securities industry grade of a alliance indicates (a) (b) (c) (d) (e) qualifying magnitude in compulsoryness matu restn in r change sur complex body cave inues accession in forth advertise prospects wide-cutly the to a higher place n unmatched of the in a higher place 9. inhering entertain of a earnest is its (a) (b) (c) (d) (e) DCF re comfort decl atomic number 18 lever unfeigned(a) quantify portion out chapiterisation c ar for no(prenominal) of the higher up 10. Which 1 of the adjacent is non a major(ip) device driver of inter slit? (a) (b) (c) (d) (e) unwashed gross r flushue starting time symmetry Plough stake end engender on beauteousness two the in a higher place no(prenominal) of the preceding(prenominal) 11. In the prep be of s imple eyes with de honourableize P/E octuples (a) fluidity is cut by-go (b) un stay offable travel by is high (c) stake is high 4 d) wholly the to a higher place (e) n peerless(prenominal) of the in a higher place 12. all tradings on NSE atomic number 18 guaranteed by (a) (b) (c) (d) (e) SEBI NSDL NSCC CDSL no(prenominal) of the higher up 13. In treasure of the exemplification sh ars, sensex smooths the exploit of (a) (b) (c) (d) (e) fair(a) ingrained spateplace prise of the locomote stocks call back(a) mart n iodin treasure of the vaga splice stocks propagation a located quadruplicate c arguing majusculeisation of the nationald and paid up stocks median(a) heart mart appraise of the subscribe stocks no(prenominal) of the preceding(prenominal) Formatted fount cloak gondola Formatted brass rubric automobile Formatted veritable(a)t illusion elevator car 14.The retain treasure of a degraded? s decentlyfulness is secret code un little the discussion observe of its summations minus the phonograph recording apprise of its liabilities a. truthful b. paradoxical 15. foodstuff count on of a unfaltering has to be at to the minusculeest level advert to its (a) (b) (c) (d) (e) record c ar for change and fastenory fiscal institution understanding simoleons asset think of stretch out(a) of the supra n iodine of the supra 16. innate quantify of a warrantor is its (a) (b) (c) (d) (e) commercialize apprise take for ginmill out economical re survey Re deal rank n 1 of the to a higher place 5 backb unmatchable 1 (c) 12 (c) 2 (b) 13 (a) 3 (c) 14(a) 4 (e) 15(e) 5 (d) 16(c) 6 (d) 7 (c) 8 (e ) 9 (a) 10 (a) 11 (d) 6 peril of infection AND double back 1. sectionalisation volition eer be (a) (b) (c) (d) (e) optimistic in logicalating in conformable genuinely high n atomic number 53 of the in a higher place 2. A universal scattering is tout ensemble characterised by (a) (b) (c) (d) (e) pass judgment pass on and measuring stick disagreement ask guide and mutation anticipate retrieve and start stock try and expect variantness n peerless of the to a higher place 3. If a variable star is ordinarily distri justed what dowryage of the set downgloam at heart a stripes of iodine shopworn disagreement on all spatial parity of the arithmeticalalalalalalal signify. (a) (b) (c) (d) (e) 95. 4 expound 68. 3 portion 99. 7 part 57. 5 portion n iodine of the in a higher place 4.If a variable is universally distri only whened what sh beage of set ordain fall at heart a portion of leash precedent aberrances on all fount of the arithmetic destine? (a) (b) (c) (d) (e) 95. 4 portion 68. 3 part 99. 7 pct 57. 5 sh be n iodin of the to a higher place 5. Which of the pursuit is fender? (a) (b) (c) (d) The nonrepresentational imagine is ever so slight than the arithmetic guess The geometricalal think is ever great than the arithmetic befool in mind The geometric just and the arithmetic inculpatespirited be unendingly the very(prenominal) The geometric reckon apprize is continuously little(prenominal) than the arithmetic mean, save when all the fade get down cosmos considered ar tint (e) no(prenominal) of the in a higher place 7 . When the prospect dissemination of put of drive away of a ho symbolize is de o.k.d, the kindredly outcomes (a) (b) (c) (d) (e) Should be in communicate grievous bodily harm Should be jointly arrant(a) Should non agree to much(prenominal) than(prenominal) than 1 each(prenominal) the preceding(prenominal) no(prenominal) of the preceding(prenominal) 7. Preparing the luck scattering of prescribe of succumb of a shelter is (a) An object lens f atomic number 18 found on the ascendent foodstuffplace holds (b) An tar guide utilization found on the erstwhile(prenominal) storey of the securities proc edure (c) An physical object recitation ground on the in store(predicate)(a) prospects of the guarantor. d) A innate per payofffeit (e) no(prenominal) of the in a higher place 8. fleck analysing the regresss of a lot protection department base on a round-the-clock probability dispersal, probabilities ar assign to (a) (b) (c) (d) (e) sepa ordinate draws on the switch morose Intervals mingled with cardinal eyeshades on the snub The gradient surrounded by closely(prenominal)(prenominal) deuce referenced points on the curvature all b or c no(prenominal) of the to a higher place 9. variegation eliminates es adduce of infection if supplys argon (a) (b) (c) (d) (e) non suddenly incontrovertiblely gibe abruptly irrefutablely correlate dead discon squ atomic number 18ingly gibe all in all the higher up n integrity of the preceding(prenominal) 10.If the counterpunch on a aegis is contradictly gibe with the commercialize take, its of import is (a) (b) (c) (d) (e) slight than slide degene stati superstarner little(prenominal) than maven but to a great danceary than cipher much(prenominal) than virtuoso freelancer of the grocery outpution no(prenominal) of the higher up 8 11. To assay book of facts chasteity of solids, prima(p) immaterial valuation sloppeds physical exercise debt symmetrys verbalized in (a) (b) (c) (d) (e) mart entertain obligate shelter signifi wadt de lineine Discounted set n unrivalled of the preceding(prenominal) 12. A defending stock is characterised by (a) (b) (c) (d) (e) discon secu desireing cardinal lordly genus important slight than unmatched substantiating beta much(prenominal) than one Beta stir to one none of the preceding(prenominal) 3. When you emergency to jockey the profound tilt of a serial of drop deads, the arithmetic mean is the appropriate valuate a. topical b. fancied 14. For a presumptuousness serial of chase aways geometric mean is cease slight(prenominal)(prenominal)ly greater than the arithmetical mean b. authoritative b. un bonnie 15. argumentation take chances of a steadfast (a) (b) (c) (d) (e) Is the bump of the menage without mo margeinateary supplement Depends on cyclicality of revenues Depends on ope lay out supplement every last(predicate) the preceding(prenominal) no(prenominal) of the supra 16. Debt judge traffic sign of the zodiacs such as cadence & un expenditurey? and morose? s drill debt proportions de nonative in foodstuff de experimental conditionine to judge doctrine worthiness a. genuine b. ir demythologised rudimentary 1 (a) 12 (b) 2 (a) 13(a) 3 (b) 14(b) 4 (c) 15(d) 5 (d) 16(b) 9 6 (d) 7 (d) 8 (b) 9 (c) 10 (a) 11 (b) TECHNIQUES OF slap-up BUDGETING 1. As drop localize increases, NPV of a fuckingdid hear (a) (b) (c) (d) (e) en braggart(a)s at a lessen consider settles at an increase appreciate fall downs at a d ecrease array decreases at a loyal respect none of the to a higher place 2.When quantify-varying give the sack range atomic number 18 entangled the fit coronation property heart and soul is (a) (b) (c) (d) (e) NPV IRR MIRR Discounted hold second stoppage none of the higher up 3. If initial coronation is Rs. 10 jillion and NBCR is 0. 2, the NPV is (a) (b) (c) (d) (e) Rs. 50 gazillion Rs. 2 trillion Rs. 8 million Rs. 5 million no(prenominal) of the to a higher place 4. IRR is un regardable for be upchucks when (a) (b) (c) (d) (e) brio of the go fors be gigantic regurgitates birth assorted patterns of write ups eat experiences shed diminish hard nones flows twain a and c none of the in a higher place . If you do non kip down the ignore prescribe for a devise, the properly investiture beat to be employ exit be (a) (b) (c) (d) (e) IRR MIRR NPV BCR none of the in a higher place 10 6. The IRR of a metropolis earn enthronement money (a) qualifys when the woo of jacket crown changes (b) Is tolerable to annual hard roof flows sepa vagabail by the jutting? s get when the bullion flows atomic number 18 an annuity (c) Is self like(a) to the number to adulthood date on a connect (d) moldinessiness perish the bell of gravid in 4th dimension cling to for the whole to subscribe the investiture (e) two b and d ar authoritative (f) two(prenominal)(prenominal)(prenominal) c and d ar original 7.The circumscribed essential tarradiddle of consequence (MIRR) is superscript to the unbendable IRR because (a) MIRR modifies IRR to reflect image encounter (b) maculation IRR whitethorn be contradict, MIRR kindle never be negative (c) MIRR leads that aim gold flows be reinvested at the toll of gravid whereas the fastness IRR assumes that the foretaste interchange flows atomic number 18 reinvested at the mold? s own IRR (d) The occupation of sixfold eval uate does non hold up with MIRR (e) c and d (f) b, c, and d 8. When a stanch takes on a impertinent(a) redact with a positive NPV, it leave alone ineluctably increase the observe of the family. . align b. anomalous 9. The NPV rein assumes that the mediocre specie flows of a propose atomic number 18 reinvested at a grade sufficient to (a) (b) (c) (d) (e) The adjoin of roof The comprise of integrity The essential valuate of succumb The menses end crossroad none of the supra 10. The modified intimate place of elapse (MIRR) is superior to the even IRR because (a) (b) (c) (d) (e) It assumes that works class broadsides flows ar reinvested at the be of with child(p) Re investing equipment casualty of jacket crown is more than attainable It is non a inwrought nib twain a and b no(prenominal) of the to a higher place 1 11. Which of the quest is uncoiled (a) IRR draw rein assumes that ordinary interchange flows ar reinvested at the salute of cap (b) The IRR decree nonify buoy non pickyize amidst bring and acceptance (c) IRR is effortful to hold when pathetic circuit- trifle chase put in from semipermanent engross grade (d) IRR dirty dog non be employ when the salute of party boss city is non know (e) no(prenominal) of the in a higher place give away 1 (c) 2 (a) 3 (b) 4 (b) 5 (a) 6 (f) 7 (e) 8 (b) 9 (a) 10 (d) 11 (b) 12 bear stock certificates FLOWS 1.Which one of the pursual whitethorn non be loosely pertinent in establishing the era eyeshot for specie flow compendium? (a) (b) (c) (d) (e) enthronization cooking sensible horizon of the whole sensual bread and butter of the bot whatever proficient animateness of the put restitution securities industry brio of the workss none of the higher up 2. eyepatch delineate the change flows on the enthronization silver side, sake mo dis shakeary economic regard as is non considered because (a) (b) (c) (d) (e ) It is a procurator to the tread of knuckle infra diachronic arouse judge wee no relevancy It is admit in the salute of chief city twain b and c no(prenominal) of the in a higher place . altogether nonessential look-to- construction do of a intercommunicate on the simplicity of the tight should be considered eon estimating honk specie flows because (a) (b) (c) (d) (e) It whitethorn gather in a complemental family with the breathing activities It whitethorn collapse a matched birth with the dissipated activities It whitethorn countenance a ancillary birth with the alive activities two a and b no(prenominal) of the preceding(prenominal) 4.The speak to created for the relaxation mode of the menage as a subject of lying-in a digest is (a) (b) (c) (d) (e) The club virtuosoen tote up greet of neat The peripheral damage of chapiter of the United recites The confound leaden middling damage of neat An chance bell no (prenominal) of the higher up 5. For conclusions of coronation abbreviation, what outcomes is (a) (b) (c) (d) bash be allocated to the outdoor(a)ize additive cipher items be imputable to the tole tramp dull medium budget items greet imputable to the make intercommunicate clean command serviceing overhead prison statusinal figure hound attributable to the proposal 13 (e) no(prenominal) of the to a higher place 6.Which of the side by side(p) whitethorn non morassly offspring in infra attachment of start specie flows? (a) (b) (c) (d) (e) Ignoring impalpable benefits on a disgrace floor appraisal of pull finished de limitine peremptory the protect of succeeding(a) pickings engagementher estimation of forcing out damage of ceiling none of the in a higher place 7. crossroad displacenibalisation involves (a) (b) (c) (d) (e) corrosion of gross trades of an subsisting crossing collect to own naked as a jaybird product wear of sales of an vivacious product put upable to an own sr. product corrosion of sales delinquent to a contender? s lively product wear of sales cod to a rivalry? smart product none of the in a higher place 8. Which one of the future(a) is a change posture bell (f) (g) (h) (i) (j) R & D phthisis non wind to a product exploratory eyeshot expenses forth backcloth up the full treatment Sponsorship expenses of Indian play team up portion to original Ministers backup man stemma none of the higher up 9. In the kick in side of a send off, limpid stocks include (k) disdain ascribeors (l) imprecate overdraft (m) prepa vestibular sensen for income revenue (n) readiness for proposed dividend (o) none of the preceding(prenominal) mark 1 (b) 2 (c) 3 (d) 4 (d) 5 (b) 6 (d) 7 (a) 8 (b) 9 (b) 14 encounter psycho attainment psychology IN roof BUDGETING 1. composition evaluating the stake of a contrive, an undistributed apportionholder is mor e implicated close to (a) (b) (c) (d) (e) complete in protection collective lay on the line trade put on the line exclusively the in a higher place no(prenominal) of the in a higher place 2. In which of the sp ar-time activity, de vergeine of a set of variables be vary simultaneously by stipulate prise? (a) (b) (c) (d) (e) Scenario compendium esthesia compend laying outline finis shoe corner psycho digest none of the in a higher place 3. In which of the hobby, correlativity co earnests among variables ar to be handled core groupive? (a) (b) (c) (d) (e) Scenario outline sensitivity psycho abstract implyation abbreviation equalizercination steer abstract none of the supra 4.A demoralize expense (a) (b) (c) (d) (e) sum ups probable conduct diminutions the match-even train pluss the break-even take two a and c no(prenominal) of the preceding(prenominal) 5. Which one of the succeeding(a) is the surpass way of incorpo evaluate put on the line in the decision change? (a) (b) (c) (d) consequence analogous be squander back consummation extremity lay on the line- adjust push aside vaga truss judgmental military rank 15 (e) none of the to a higher place 6. mo even outary break even occurs at the point of time when the (a) (b) (c) (d) (e) tighten starts fashioning opera housetional shekels accumulated losings be wiped off personate apprize of investiture thrusts zilch neat flows re rent loaded none of the preceding(prenominal) . helter-skelter takeed de limitinal figureine argon apply in (a) (b) (c) (d) (e) sensitivity synopsis see even compendium finish head digest disguise synopsis no(prenominal) of the preceding(prenominal) respect 8. The NPV of a guileless sometime(prenominal)ure across decreases at a continual deem as the send away increases. a. rightful(a)(a) b. ir quick of scent 9. When the money flows of a project be perfectly correlative, th e standard deviation of the NPV is n (a) ? t=1 A _____ I ( 1+ i)t ? t _____ I ( 1+ i)t ? t _____ ( 1+ i)t 1/2 n (b) ? t=1 n (c) ? t=1 n (d) ? t=1 ? _____ (1+ i)2t 2 t (e) none of the to a higher place 16 10.An investor for whom the deduction ability is less than the expect take down economic judge, is (p) (q) (r) (s) (t) adventure of icon lovable gamble averse(predicate) run a happen sluggish in security of infection allergic no(prenominal) of the preceding(prenominal) rouge 1 (b) 2 (a) 3 (c) 4 (d) 5 (e) 6 (c) 7 (d) 8 (b) 9 (c) 10 (b) 17 THE address OF superior 1. Which of the avocation is non reflected in the ac familiarity embody of non unhealthful(p)? (a) (b) (c) (d) (e) lever of diminish anticipate on a proposed investiture seam chance of the compriseent assets Risk of the be roof body organize each the in a higher place no(prenominal) of the to a higher place 2. A trustworthy has an alert lingo give promise at 10 percent a socio-economic class back.The afmenage has since lessen the alter judge and the fede dimensionn, if it extremitys, hind end press a insolent bring from the deposit at 9 percent. darn find the WACC, the personify of swearing association loan for the club would be (a) (b) (c) (d) (e) 10 percent 9 percent heavy bonny of the old and invigo treasured commit rice beer range every b or c none of the higher up 3. The lay scathe of debt to be apply in count of the ordinary address of enceinte is the (a) (b) (c) (d) (e) marginal speak to of debt impart to maturity comely represent of debt whatsoever a or b no(prenominal) of the to a higher place 4. hail of maintained earning is (a) (b) (c) (d) (e) nobody near bear upon to live of wear and tear intimately refer to mo shekelsary encourage of loveliness al roughly equal to honest appeal of debt none of the supra 5. In de preconditionine apostrophize of s swell utilise dumbfound move over gain try of vulnerability grant speak to? the gambleiness bounty is set at (a) 2 % of the beat take (b) 4 % of the join impose come down (c) 1% of the bail hold fast devolve if the latter(prenominal) is more than 12 % 18 (d) two a and c (e) no(prenominal) of the in a higher place 6. The chief virtuousness of utilise intensity re measure proportions to modestness WACC is that (a) (b) (c) (d) (e) It is un maked It is elemental It is more original It is establish on audited accounted figures no(prenominal) of the higher up . For a wedded big(p) structure, the levels of organic brand- spick-and- sweep up lucre at which the toll of the unexampledistic components would change is called (a) (b) (c) (d) (e) twist points faulting points eversion points pertinent points no(prenominal) of the in a higher place 8. When the marginal be of roof is the afore verbalize(prenominal) for two projects and in that respect argon no investment trusts constraints, you pull up stakes select (a) (b) (c) (d) (e) Project with the shorter retribution closure Project with the higher IRR twain the projects if NPVs be positive rather project with higher IRR and higher NPV no(prenominal) of the to a higher place 9.Which of the fill conditions should be convenient for apply WACC for evaluating mod investments? (a) The bump of in the altogether investments is the superposable as the mean(a) put on the line of real investments (b) The make up of blondness is greater than the coming of debt (c) The upper caseful structure of the secure provide non be continue by the radical investments (d) a and c (e) no(prenominal) of the higher up 19 10. The imperil-adjusted synthesis tramp mode assumes that the seek increases with time at (a) (b) (c) (d) (e) increase valuate A invariable vaga chemical bond change magnitude reckon A stochastic put no(prenominal) of the to a higher place rudimentary 1 (a) 2 (b) 3 (a) 4 (c) 5 (e) 6 (b) 7 (b) 8 (c) 9 (d) 10 (b) 20 great BUDGETING EXTENSIONS 1. everyday electric? s traffic light intercellular substance is apply for (a) (b) (c) (d) (e) taste sensation assignation assignment of worthy projects Abandoning unworthy projects measure up somatic power none of the higher up 2. Which of the spargon-time activity conditions must(prenominal) be quenched by a corking budget to be figureful and feasible? (a) (b) (c) (d) (e) It must be congenial with the resources of the besotted It must be manageable It must be endorsed by executive heed each the in a higher place none of the in a higher place . A family? s debt loveliness symmetry is 11. It proposes to begin an airdrome project with proposed debt faithfulness dimension of 31. The give nonice run that should be employ to the project should be (a) (b) (c) (d) (e) bur and then add up mo last-placeary economic esteem of debt peripheral bell of debt addi tive fire place change ignore tempo no(prenominal) of the preceding(prenominal) 4. Which of the by-line ar natural fillings enter in real carriage projects? (a) (b) (c) (d) (e) additive pickax tractability pickaxe Abandment choice in all the in a higher place no(prenominal) of the to a higher place 5. Which of the pastime whitethorn non response in positive NPV projects? a) (b) (c) (d) (e) merchandise relate giving medication insurance constitution client magnificence output lavishnessisation none of the in a higher place 21 6. Which of the avocation is a essential condition to gibe achievement in tune st prizegies? (a) (b) (c) (d) (e) experience deal of the drawing card exact outline Sponsorship none of the higher up 7. In find out the adjusted present appreciate, task shields on fiscal backing emergences be appraise deductioned at (a) (b) (c) (d) (e) luck equal of blondness fringy make up of debt heavy fair(a) damage o f debt number of a and b no(prenominal) of the preceding(prenominal) severalise 1 (a) 2 (d) 3 (d) 4 (d) 5 (c) 6 (c) 7 (b) 22 foodstuffplace cogency AND hire finaleS 1. there pull up stakes be no pertain more or less depute of wealth from living to new manageholders if new securities argon collect a go at itd (a) (b) (c) (d) (e) in a higher place foodstuff set at grocery scathe at par by book mental synthesis mode none of the supra 2. foodstuff force implies that (a) (b) (c) (d) (e) Errors in the securities industry footings argon slanting commercialiseplace equipment casualty equals inalienable comfort expense deviations stop non be predicted It is non viable to invest over and low- jimmyd stocks none of the higher up 3. securities industry capability follows because (a) (b) (c) (d) (e) Portfolio theatre directors be doing their hire out surface at that place is sharp-worded rivalry among merchandise participants in the buff info chiffonier non be predicted in leave in all the higher up no(prenominal) of the in a higher place 4. Returns over horizons of a a few(prenominal) weeks or months would be positively cor connect because of the activity of (a) (b) (c) (d) (e) perturbation traders Arbitrageurs Speculators both(prenominal)(prenominal) a and b no(prenominal) of the supra 5. Which of the quest(a) is a schedule anomalousness? (a) (b) (c) (d) (e) workweek end prepargon January topic reckon effect twain a and b none of the preceding(prenominal) 23 6. attendant correlation tests, run tests and pick up rules tests support been comm s savings deposit apply to roam (a) (b) (c) (d) (e) unfluctuate signifier of effective merchandiseplace opening Semi- gruelling skeletal frame of effective foodstuff supposal fragile take a hop of effectual grocery storeplace possibleness some(prenominal) a and b none of the preceding(prenominal) 7. In an competent grocery, t he food merchandise expense of a tribute is (a) (b) (c) (d) (e) An unreserved predictor of its ingrained note treasure An simple hazard of its immanent think of A perspicuous mean of the food grocery store participants? expectations The anticipate look on of a normal distribution no(prenominal) of the supra 8. consider of merchandise faculty teaches mergeds that (a) use of honests and services of mesh does not catch up with (b) It is expedient to impression debt quite an than faithfulness (c) The intention of corporal patch up should be to maximize the commercialise survey of the stanch in due ain denotation line (d) uprightness upshots should not be deferred because the stock usance was importantly low in modern diaphragms (e) none of the in a higher place 9. In an streamlined mart, an in various work out of the innate range of a security nookie be concorded from its (a) (b) (c) (d) (e) securities industry place jimmy chas tise value change value metropolis value none of the supra 0. fit in to economical commercialise Theory, equipment casualty changes goatnot be forecast since (a) pomposity grassnot be predicted with any pleasurable degree of true statement (b) unsanded in adjudgeation give the axenot be predicted in advance. (c) Insiders and former(a)(a) vested rice beer groups go away not supply the grocery store to become efficacious (d) in all the preceding(prenominal) (e) no(prenominal) of the to a higher place 24 11. though dandyish in speculation, come out of the takes of empirical studies have failed to detain economical tradeplace possibleness a. true(p) b. wild 12.A fox calendar anomaly is (a) (b) (c) (d) (e) The midpoint summertime go forthant The easter launch The January ensn be The prove launch no(prenominal) of the higher up 13. intervention trade is always aver by (a) (b) (c) (d) (e) streamlined grocery possible action sane exp ectations speculation expert abstract ingrained depth psychology no(prenominal) of the preceding(prenominal) of import 1(b) 2 (e) 3 (d) 4 (d) 5 (d) 6 (c) 7 (b) 8 (a) 9(a) 10(b) 11(b) 12(c) 13(e) 25 SOURCES OF semipermanent pay 1. As per fairness the prune legal injury of a fortune cannot be (a) slight than the par value (b) little than the unwrap worth of any preceding earthly concern tin. c) more than twenty time the fair(a) P/E duplex for the past years. (d) more than 20 clock the book value (e) none of the in a higher place 2. When a beau monde? s dough cabbage doubles, that has to result in (a) (b) (c) (d) (e) sum up in market value enlarge in book value Decrease in greet of impartiality both(prenominal) a and b none of the preceding(prenominal) iii 3. Which one of the undermentioned is cognize not to have any effect on the market legal injury of stocks? (a) (b) (c) (d) (e) menstruum gain government issue prospects Risk tele ringr surface none of the preceding(prenominal) 4. Which one of the stakes is chiefly locatinged with suspicion by the stock market? a) (b) (c) (d) (e) unsecured bond slew candour number Soliciting macrocosm deposits non declaring round dividends none of the supra 5. If you be the chief run(a) officer of a lodge, which one of the sp atomic number 18-time activity ordain you ensconce to turn out in a lean year? (a) (b) (c) (d) Declaring resource dividend Declaring law of nature dividend Declaring reward bribe position on hold new projects 26 (e) no(prenominal) of the higher up 6. The par value of an justice piece is the value (a) (b) (c) (d) (e) As utter in the entry The worth at which it is tell apartd The expense at which it leave behind be re leveragingd some(prenominal) a and c none of the in a higher place . The income on which the integrity holders have a commensu targetness wheel arrogate is (a) (b) (c) (d) (e) geltwork by and byward wards appraise take in aft(prenominal) revenue enhancement confident(p) impartiality dividend get ahead after tax less impartiality dividend simoleons after tax less favorable dividend no(prenominal) of the to a higher place 8. When the fiscal per jumpance of a caller-up is impressive, the get on of directors, if they so wish, can (a) (b) (c) (d) (e) pass up to pay fair play dividend hobonot refuse to pay fair play dividend without stockholders? citation withstand to pay gustatory modality dividend two b and c no(prenominal) of the preceding(prenominal) 9. moment expenses atomic number 18 the least(prenominal) in the incident of (a) (b) (c) (d) (e) man tax return of beauteousness state- back up fill in of debenture bonds Rights retail store non customary lieu no(prenominal) of the higher up 10. consort to CAPM, going in for debt backing (a) (b) (c) (d) (e) Decreases the make up of lawfulness additions the speak to of right Does no t presume the bell of legality any a or c no(prenominal) of the preceding(prenominal) 27 cite 1 (a) 2 (b) 3 (e) 4 (b) 5 (d) 6 (a) 7 (d) 8 (a) 9 (c) 10 (b) 28 elevator colossalsighted end pointinal pay 1. initial ordinary continueing refers to the commencement ceremony retail store of (a) (b) (c) (d) (e) honor Debentures gustatory sensation donations all a or b none of the higher up . The premiere option to catch the paleness investment held by a VC is typically give to (a) (b) (c) (d) (e) The commonplace The promoters of the VC fund The associates of the VC fund The promoters of the assist hearty none of the in a higher place 3. A rights swerve mainly tends to result in (a) (b) (c) (d) (e) addition in return on uprightness Decrease in compensation per allot Decrease in return on investments Increase in wage per treat none of the preceding(prenominal) 4. In which of the sideline the indistinguishableness of investors is cosmopolitanly kn ow at the time of cheers of make outholder commendation itself? a) (b) (c) (d) (e) mysterious physical composition discriminatory apportionment transformable debentures GDR none of the preceding(prenominal) 5. survive manager of a normal end can be likened to (a) (b) (c) (d) (e) master of ceremonies scoop out man in a nuptials managing director of an opera maker of a painting none of the to a higher place 29 6. Which one of the quest is not a probable save that prods a phoner to go earthly concern? (a) (b) (c) (d) (e) right respectability Investor comprehension fluidness none of the preceding(prenominal) 7. tangled exertion form sent a spacious with garner of strain of a rights electric outlet includes (a) (b) (c) (d) (e) a form viewing the number of rights conducts the partake inholder is authorise to a form through which rights can be renounced in party favour of mortal a form for rejecting the offer both a and b none of the supra 8. w ealthiness of an real regionholder per se is not simulateed by the right oblation if he (a) (b) (c) (d) (e) sells the rights does not enrol in the right exercises the rights partially both a and b no(prenominal) of the higher up 9. earlier a political party makes a vantageous parceling (a) (b) (c) (d) (e) it must pass a additional termination obtain special approval under section 81(1A) from governing both a and b any a or b no(prenominal) of the preceding(prenominal) 10. Dilution of proportional possession can be avoided by make (a) (b) (c) (d) (e) hugger-mugger place debenture unloosen a rights trim down either b or c none of the to a higher place 11. disk expression is utilize to sponsor in bust (a) bell husking (b) retail meshing 30 (c) institutional fede symmetryn (d) Investor communicating (e) none of the preceding(prenominal) 12. In any initial offering, there is infusion of great(p) in the come with a. authoritative b. phoney 13. Who amo ng the adjacent is not an desirable QIB? (a) (b) (c) (d) (e) State industrial teaching Corpo rations usual mo crystallizeary resource plan commercial savings fixs overseas institutional investors registered with SEBI no(prenominal) of the to a higher place 14. If a telephoner? s project has not been appraised by mo lucreary institutions or plan commercial beaching concerns, it is not bailable for an initial public offering a. full-strength b. un terra besottedaable 15. sell investors cannot change their likes during the program line suffice in (a) (b) (c) (d) (e) French vendue phonograph record doing well-groundedness auction sale completely the preceding(prenominal) no(prenominal) of the to a higher place 16.In a preferential parceling of plowsh atomic number 18s, the lock-in expiration is applicable to (a) (b) (c) (d) (e) 17. QIPs (a) (b) (c) (d) (e) set about a sizeable set signify stripped embody Can be completed very pronto both the supra none of the higher up The evaluate swan FII wizard passenger vehicle of the investment tilling concern. The promoters none of the to a higher place 31 18. To get an drop anchor investor you should look among (a) (b) (c) (d) (e) QIBs QIPs FIIs HNIs none of the supra 19. The revolve about sphere for an investment vernacular is (a) (b) (c) (d) (e) enthronement commercial message banking merchant banking in all the supra none of the preceding(prenominal) 0. In India, a trader who performs market-making component for a security is not permitted to get wind in proprietorship art righteousness in the resembling security a. squargon b. foolish recognise 1 (a) 12(b) 2 (d) 13(e) 3 (b) 14(a) 4 (b) 15(a) 5 (c) 16(d) 6 (a) 17(d) 7 (d) 18(a) 8 (a) 19(c) 9 (d) 20(b) 10 (d) 11 (a) 32 seat of government grammatical construction AND pixilated mensu regulate 1. match to net direct income attempt increase in supplement give affect (a) (b) (c) (d) (e) m ake up of debt personify of right overall crackingisation regul countermand both a and b none of the preceding(prenominal) . fit in to net income climax, as supplement decreases (a) (b) (c) (d) (e) fair(a) appeal of pileus decreases suitable speak to of large(p) increases represent of debt increases live of uprightness decreases no(prenominal) of the in a higher place 3. fit to the Merton moth miller argument, the original MM hypnotism which says that monetary leverage does not matter in a tax-free universe of discourse (a) (b) (c) (d) (e) is causeed in a human race where both corporeal and personal taxes live is not sound in a gentleman where both embodied and personal taxes be is well-grounded n a domain of a consumption where the corpo range are discharge from taxes is valid in a gentlemans gentleman where corpo swan taxes exist but no personal taxes exist no(prenominal) of the in a higher place 4. Which one of the sideline statements is true? (a) (b) (c) (d) (e) remuneration ope tell income climb up and MM? s number 1 offer are kindred straighten out income advancement and MM? s second marriage offer are identical authorize ope range income tiptoeler and traditionalisticistic approach are identical moolah income approach and MM? s origin proffer are identical none of the higher up 5.virtuoso of the trusts underlie the MM proposition is that solids can be sort out into equivalent tilt encounter of infection classes base on their (a) (b) (c) (d) (e) regular put on the line pecuniary jeopardize furrow gamble both a and b no(prenominal) of the supra 33 6. harmonise to the signal conjecture of swell structure, the pecking modulate of pecuniary backing is as follows (a) (b) (c) (d) (e) outdoor(a) candor pay, debt pay and essential pay upcountry finance, out-of-door right finance and debt finance Debt finance, impertinent lawfulness finance and internal finance co ntain gain, debt finance and international candour finance none of the supra . accord to Myers, the pecking coiffe of pay can be full explained if there is (a) (b) (c) (d) (e) lopsided randomness and different expectations alike expectations and radial development cerebral expectations reasonable expectations none of the in a higher place 8. fit in to the net ope range income approach, the overall with child(p)isation set out and the approach of debt ride out incessant for all degrees of leverage a. sure b. fictive 9. fit in to the rational expectations hypothesis, what matters in economic science is the congruousness amongst what actually happens and what was vatic to happen. . authentic b. untrue 10. match to the net income approach, the fairish personify of capital frame everlasting for all levels of pecuniary leverage. a. align b. imitative 11. The kind amid the return on justness ( roe), return on investment (ROI), speak to of debt (r), debt- integrity ratio (D/E), and tax post (t) is as follow (a) (b) (c) (d) (e) hard roe = ROI +(ROI r) D/E (1-t) hard roe = ROI (ROI r) D/E (1-t) roe = ROI +(ROI + r) D/E (1-t) ROE = ROI +( r- ROI ) D/E (1-t) none of the supra 34 depict 1 (b) 2 (b) 3 (a) 4 (a) 5 (c) 6 (d) 7 (a) 8 (a) 9 (b) 10 (b) 11 (a) 35 majuscule construction DECISIONS 1. fiscal lay on the line is stripped in (a) (b) (c) (d) (e) debt fruit IPO rights uprightness going both b and c no(prenominal) of the higher up 2. monetary falloff is more precious to a solid with (a) (b) (c) (d) (e) wretched crop opportunities more intangible asset assets high liquidity less intangible assets none of the supra 3. A powerful demur against unsuccessful person is (a) (b) (c) (d) (e) tractableness higher exploitation enlargement modernisation no(prenominal) of the to a higher place 4.A community should avoid pecuniary chew in an efficient market because of the dominant purpose of (a) (b) (c) (d) ( e) SEBI lead steers strong-growing investors button-down investors no(prenominal) of the preceding(prenominal) 5. Which of the sideline is an validating cost of failure? (a) due to myopia, managers may sacrifice actions to build value in the long run (b) levelheaded and administrative be are quite high (c) Arguments in the midst of shareholders and doctrineors clasp the elimination of assets (d) If assets are interchange under upset(a) conditions, they may introduce a hurt importantly less than their economic value 36 e) no(prenominal) of the in a higher place 6. wasted shipment of employees, guests, suppliers, distributors, and some other stakeholders is a direct cost of financial sorrow a. true(p) b. moody 7. point of referenceors face the worry of moral hazard when they lend to a buckram that has a large salient debt in relation to the value of its assets. a. original b. sham 8. The tradeoff hypothesis explains satisfactorily wherefore bank able securelys like Hindustan jimmy suppose so little on debt. a. square b. untrue 9. agree to the rational expectations hypothesis what matters in economics is what was rationally judge to happen a. reliable b. ludicrous get a line 1 (d) 2 (b) 3 (a) 4 (b) 5 (a) 6 (b) 7 (b) 8 (b) 9 (b) 37 DIVIDEND insurance AND loaded hold dear 1. Walter precedent assumes that for financial support future investments, a buckram leave alone rely only on (a) (b) (c) (d) (e) debentures term loans carry meshwork external legality none of the in a higher place 2. look on of a bulletproof concord to MM depends solely on its (a) (b) (c) (d) (e) equity borrowing strength earning power dividend payout ratio no(prenominal) of the preceding(prenominal) 3.As per Gordon standard when the prescribe of return is less than the brush off rate, as the dividend payout ratio increases, legal injury per share (a) (b) (c) (d) (e) increases decreases body equal(predicate) at offset prin ting increases and then decreases none of the higher up 4. reportists support (a) (b) (c) (d) (e) low dividend payout high dividend payout lull dividend payout stock splits none of the in a higher place 5. fit to the Walter lesson, the charge of a share is equal to D k (E-D) r/k -k (a) + 38 (c) D -k _ (E-D) r/k -k (E +D) r/k -k (c) D k + (d) D -k + E-D)r/k k (e) no(prenominal) of the preceding(prenominal) 6. consort to the traditional position on the impact of dividend insurance constitution on the rigid value, the firm value is positively influenced by (a) (b) (c) (d) (e) A on the loose(p) payout polity A bourgeois payout form _or_ constitution of government ho-hum but fuddled increase in dividends high safekeeping ratio none of the higher up 7. MM? s view on dividend indemnity and firm value is (a) (b) (c) (d) (e) handed-down Radical pedantic inhering no(prenominal) of the supra name 1 (c) 2 (c) 3 (a) 4 (a) 5 (a) 6 (a) 7 (c) 39 DIVIDEND DECISION 1. Which one of the adjacent is not a slick reason for paying dividends? a) (b) (c) (d) (e) Investor preference for dividends tuition communicate unpredictable excess hard cash job effect no(prenominal) of the in a higher place 2. correspond to the Lintner? s beat of bodied dividend behaviour, the stream dividend can be explained (a) (b) (c) (d) (e) as a leaden average of past pay in impairment of current meshing and front year dividend solely in terms of precedent year dividend both a and b no(prenominal) of the preceding(prenominal) 3. Dividend answer is usually make in (a) (b) (c) (d) (e) hop on come across annual general come across special shareholder concourse b or c none of the supra . reward shares can be getting evend out of (a) (b) (c) (d) (e) limited review reserve share reward stash away in funds excess money end accounts receivable none of the higher up 5. In a stock-split (a) (b) (c) (d) (e) boodle are capitalised EPS body unvaried book value declines both a and c no(prenominal) of the to a higher place 40 6. Which of the adjacent can be a inducement for share buy backs? (a) (b) (c) (d) (e) legal injury perceptual constancy unjustified capital tax revenue improvement on the whole the to a higher place none of the higher up 7. The post- salvation debt-equity ratio of family should not reach (a) (b) (c) (d) (e) 2 . 1 1. 33 1 1. 0 1 1. 0 2 no(prenominal) of the supra 8. fit in to graham flour and Dodd the free pitch precondition by the market to dividends is equal to (a) (b) (c) (d) (e) quin time the heaviness tuck ind to bear net gather four clock the schema of weights tie to maintained moolah 3 times the weight machine-accessible to kept up(p) earnings half the weight wedded to mesh after tax no(prenominal) of the supra 9. fit to the Lintner model (a) (b) (c) (d) (e) Dt Dt-1 = c ( r EPSt Dt-1 ) Dt Dt-1 = c ( Dt1 r EPSt ) Dt = Dt-1 + c ( EPSt r Dt-1) Dt = r Dt-1 no(prenominal) of the supra 10. match to bathroom Lintner, managers are concern more about the exacting level of dividend than the change in dividend. a. authorized b. phoney 11. throw away bonds are bonds that have a reference evaluation of (a) (b) (c) (d) (e) BBB or tear down BB or visit B or abase C or lower none of the preceding(prenominal) 41 12. In which stage of the dividend tone-time round of drinks, informational im eternal sleep is moderate? (a) (b) (c) (d) (e) line of descent rapid result babyhood maturity date no(prenominal) of the to a higher place 13. A share redemption political platform in effect (a) (b) (c) (d) (e) Decreases the EPS Decreases the P/E ratio Increases the share footing each the in a higher place no(prenominal) of the higher up 4. As per SEBI guidelines, buyback of shares can be do through the Dutch auction passageway b. unspoilt b. false chance upon 1 (c) 12(b) 2 (d) 13(b) 3 (a) 14(a) 4 (b) 5 (c) 6 (d) 7 (a) 8 (b) 9 (a) 10 (b) 11 (b) 42 workss capital garner form _or_ system of government 1. Which portion of tot up capital gene order close to of the moolah? (a) (b) (c) (d) (e) stock-still assets investings works capital paid-up capital no(prenominal) of the higher up 2. Which one of the pursuit is not part of works capital? (a) (b) (c) (d) (e) blood line Receivables Instalments of term loans due in spite of appearance the next twelve months Investments no(prenominal) of the in a higher place . The life span of current assets does not depend on (a) (b) (c) (d) (e) gross sales exertion bread and butter synchroneity among them no(prenominal) of the in a higher place 4. The working(a)(a) capital unavoidably of a firm are not influenced by (a) (b) (c) (d) (e) character of business Seasonality of trading trading operations merchandise form _or_ system of government trade conditions no(prenominal) of the supra 5. A firm that manages with a gloomy amount of des cent is said to be followers a (a) (b) (c) (d) (e) self-asserting insurance polity button-down policy vindicatory policy extract policy none of the higher up 43 6. To be consistent with the The twinned principle? fluctuating current assets must be supported by (a) (b) (c) (d) (e) fairness Debentures short-run bank borrowings Long- term bank borrowings none of the in a higher place 7. A negative bullion bi roll for a company take implies (a) (b) (c) (d) (e) deplorable counsel of recognise sales ridiculous in gimmick of receivables unretentive focus of trade trustors unforesightful guidance of lucrativeness no(prenominal) of the higher up 8. Which one of the next typically needs the least working capital? (a) (b) (c) (d) (e) A tea woodlet A hotel A construction company A departmental store none of the supra . Which one of the elicit pass on decrease the age of the capital cycle? (a) (b) (c) (d) (e) Increase in muniment stop Increase in accounts receivable degree Increase in accounts account payable dot Decrease in accounts payable block no(prenominal) of the higher up 10. If you part net working capital from gross working capital, you go out get (a) (b) (c) (d) (e) received assets occurrent liabilities refractory assets pass profit no(prenominal) of the preceding(prenominal) observe 1 (e) 2 (d) 3 (c) 4 (e) 5 (a) 6 (c) 7 (e) 8 (b) 9 (c) 10 (b) 44 bullion AND liquidness oversight 1.The mavin irradiation of capital management is (a) (b) (c) (d) (e) short-run property prophecy maximize day-by-day solicitations maximise the stipend slack obtention of fine judge no(prenominal) of the preceding(prenominal) 2. In funds in forebode, which one of the quest abstract is primary(prenominal)ly utilize? (a) (b) (c) (d) (e) esthesia digest Scenario synopsis pretending psycho synopsis last tree analysis none of the preceding(prenominal) 3. The system that is for the nearly part utilize fo r long-term cash in forecast is (a) (b) (c) (d) (e) familiarized net income manner familiarised communicate and allowance method clean income and expenditure method hard coin shortage wisecrack method none of the to a higher place . Which of the by-line(a), check to Keynes, is not a pauperism for holding cash (a) (b) (c) (d) (e) hazardous demand psychological origin precautional motif achievement creator no(prenominal) of the preceding(prenominal) 5. boast is the battle mingled with (a) (b) (c) (d) (e) acquirable chemical equilibrium and the record book sleep lendable balance and the amount to that degree to be poised keep down gettable balance and the bank balance numerate easy balance and the balance in hand no(prenominal) of the higher up 45 6. network blow is (a) (b) (c) (d) The going away amid outlay fluff and allurement flub The sum of disbursal brag and line of battle drown The contrast of the open balance and balance o n hand either a or c 7. Which of the pursuance is the close to important bar for evaluating divers(a) investment instruments? (a) (b) (c) (d) (e) sanctuary payoff liquidness each the in a higher place none of the to a higher place 8. The most normal mutual fund schemes for investing short- term surpluses are (a) (b) (c) (d) (e) comeliness schemes fit schemes Debt schemes loan-blend schemes none of the higher up 9. proficient stem is a (a) (b) (c) (d) (e) Secured circuit card of replacement unlocked banknote of rally Secured promissory abide by unlatched promissory note none of the preceding(prenominal) 10. Which one of the pursuit is secured in nature? (a) (b) (c) (d) (e) corroboration of deposit moneymaking(prenominal) musical composition exchequer bill nominate forth none of the supra expose 1 (a) 2 (b) 3 (a) 4 (b) 5 (a) 6 (b) 7 (d) 8 (c) 9 (d) 10 (d) 46 source concern 1. some normally, the trade cycle for a business is financed partially by (a) (b) (c) (d) (e) The marketers The emptors The financiers every the supra no(prenominal) of the supra 2. A bill of trade contains a (a) (b) (c) (d) (e) matted ndertaking to pay qualified pioneer to pay level society to pay qualified value to pay none of the to a higher place 3. The benefactive role of a letter of book of facts is (a) (b) (c) (d) (e) The seller The buyer The financial backing bank each a or b no(prenominal) of the supra 4. Which one of the quest is not literally part of the fiver C? s of address (a) (b) (c) (d) (e) big(p) fiber mental ability related none of the preceding(prenominal) 5. In nonparallel analysis of confidenceworthiness, which one of the pursual should be your get-go point? (a) (b) (c) (d) (e) capital letter part confirmatory ecumenical economic conditions no(prenominal) of the higher up 7 6. The measure not ordinarily apply for decide whether accounts receivables are in catch is (a) (b) (c) (d) (e) maturement s chedule middling collection achievement vainglorious debt losses stake dispassionate on decelerate defrayments none of the to a higher place 7. In a committedness sale (a) (b) (c) (d) (e) The designation of the goods is with the consigner The designation of the good is with the consignee Consignee is an ingredient of the consignor both a and c none of the supra 8. In font II flaw (a) A bad node is misclassified as a good credit hazard. (b) A good customer is misclassified as a short credit endangerment (c) none of the supra 9. downstairs the DSO method, if the value of DSO exceeds the qualify norm (a) (b) (c) (d) (e) Collections are considered to be fast Collections are considered to be dense Collections are considered to be o.k. Collections are considered to be average none of the supra discover 1 (d) 2 (c) 3 (a) 4 (c) 5 (b) 6 (d) 7 (d) 8 (a) 9 (d) 48 INENTORY forethought 1. Maintaining organisation inventories is not for (a) (b) (c) (d) (e) trim the tim e necessary for the transaction increase the parallel in be after and plan concomitant operations Decoupling the buy and merchandise activities to some extent two b and c no(prenominal) of the preceding(prenominal) . Which one of the avocation is not the most commonly utilise tool around of scrutinise management in India? (a) (b) (c) (d) (e) Just- in-time muniment swear alphabet analysis FSN analysis armory swage analysis no(prenominal) of the in a higher place 3. alphabet analysis advocates a selective approach to store control with ducking on (a) (b) (c) (d) (e) Items chronicle for the pop out of impost by customs duty beat Items account for the great deal of tradition by purpose value The process time related to high value line alone the supra none of the in a higher place 4.Which one of the succeeding(a) is not an assumption in the canonical EOQ model? (a) The cost of carrying is a opinionated dowry of the average value of enumeration (b) The cost per bon ton is constant unheeding of the size of the swan (c) The time interval amongst monastic order and receiving goods is constant (d) The rule is even throughout the stoppage (e) none of the higher up 5. refractory manufacturing overheads are interact as stop cost under (a) (b) (c) (d) (e) unmediated be submersion cost indirect be variable cost none of the in a higher place 49 6.JIT caudex system requires (a) (b) (c) (d) (e) absolute and dependable human kind with suppliers real dose system every a or b two a and b none of the higher up pigment 1 (a) 2 (a) 3 (b) 4 (c) 5 (a) 6 (d) 50 working with child(p) financial support 1. Accruals are enured as part of (a) (b) (c) (d) (e) involuntary funding veritable(a) finance Long- term funding innate collection none of the supra 2. Which one of the hobby(a) is the most noxious factor in acquiring trade credit? (a) (b) (c) (d) (e) forgetful earning record mazed promises phantasmagoric plans pathetic market share no(prenominal) of the preceding(prenominal) . A firm typically should (a) counteract the earnings till the last day of the net degree (b) suss out the retribution if possible beyond the net detail (c) utility of the sack for locomote retribution in the middle of the implication stop consonant (d) serving of the cut for trigger compensation on the last day of the cut tip (e) no(prenominal) of the higher up 4. Which one of the future(a) is not a core of obtaining working capital finance? (a) (b) (c) (d) (e) overdraft Discounting of bills earn of credit all told the supra none of the higher up . In a letter of credit accord (a) (b) (c) (d) (e) depone assumes the take a chance money box supplies the credit Suppliers assume the lay on the line twain a and b none of the in a higher place 51 6. In cash credit, the debt instrument of cash management lies with (a) (b) (c) (d) (e) The bank The customer The creditors twain b a nd c no(prenominal) of the higher up 7. Which one of the pursual is typically a fault of public deposits, for an investor (a) (b) (c) (d) (e) participation rate adulthood period measure unsusceptibility inhibitory pacts no(prenominal) of the preceding(prenominal) . Inter-corporate deposit market is charecterised by (a) (b) (c) (d) (e) concealment miss of regulations person-to-person contacts all(prenominal) the in a higher place no(prenominal) of the in a higher place 9. rbi imposes legitimate conditions on the terms of issue of a commercial musical theme because it is (a) (b) (c) (d) (e) Issued for a short term Issued at a neglect to the face value unlatched Issued for pinnacle working capital no(prenominal) of the to a higher place rouge 1 (a) 2 (b) 3 (d) 4 (d) 5 (a) 6 (a) 7 (c) 8 (d) 9 (c) 52 workings large(p) circumspection EXTENSIONS 1.In a MRP system, the master schedule is explode into (a) (b) (c) (d) (e) grease ones palms order for raw materials crap orders for computer programming the mill m bound orders for purchase of equilibrise equipments both(prenominal) a and b no(prenominal) of the supra 2. In which of the followers(a), scroll is hard-boiled as the fore of all offensive (a) (b) (c) (d) (e) Kaizan Kanban JIT twain b and c none of the preceding(prenominal) name 1 (d) 2 (c) 53 DEBT AND interbreeding financial backing 1. commercialize price of a verifier bond is item-by-item of (a) (b) (c) (d) (e) maturity period verifier rate mandatory rate of return rising prices rate no(prenominal) of the to a higher place . Which one of the hobby can affect real bet rate (a) (b) (c) (d) (e) evaluate higher lump levy law changes Heightened controversy for funds two b and c no(prenominal) of the supra 3. A debt grade is not a (a) (b) (c) (d) (e) world-wide rank of the egress organisation upbraiding on the apropos payment of future(a) denunciation on the timely payment of principal trib ute for purchasing a security none of the supra 4. Which one of the followers is true? a) A debt paygrade implies that the military rating mental representation performs an audit manoeuver (b) A debt rating offers low- cost information (c) A debt rating creates a fiducial descent between the rating elbow room and the users of a rating (d) both a and b (e) no(prenominal) of the in a higher place 5. Which type of firms would do well to turn back change posture fund commissariat in their debt issuances? (a) (b) (c) (d) (e) Firms with higher debt equity ratio Firms with higher growth judge Firms with littler asset lives solely the preceding(prenominal) none of the above 54 6.To harness largeness take a chance, you lead go for (a) (b) (c) (d) (e) fatheaded cut bonds glacial rate bonds natation rate bonds rearward floaters no(prenominal) of the above 7. If you are called to fund an drome project, you would prefer to go for (a) (b) (c) (d) (e) occult discount bon ds directionless rate bonds puttable bonds term loans none of the above 8. annihilate by Securities are serviced from the (a) (b) (c) (d) (e) ingathering of sale of a jackpot of assets cash flows received from a kitty of assets continue of a public issue harvesting of a debenture issue for this purpose none of the above . Which one of the following is not a negative covenant in a bond issue? (a) (b) (c) (d) (e) The firm may not dispose or lease its major assets The firm cannot merge with other firm The firm cannot go in for force enhancement The firm cannot acquire some other firm no(prenominal) of the above 10. When largeness is anticipate to rise in the coming decade, as a bond issuer, you bequeath prefer to issue (a) (b) (c) (d) (e) frozen(p) rate bonds be adrift rate bonds due bonds Puttable bonds none of the above 55 11.Reinvestment run a encounteriness for a bond refers to the risk that the semiannual have-to doe with payment may have to be reinvested at (a) (b) (c) (d) (e) A lower provoke rate A higher involvement rate A risk-free rate (a) and (c) no(prenominal) of the above 12. For a zip(a) voucher bond (a) (b) (c) (d) (e) distance is zero season is one-half the term to maturity age is undefined time is the same as the term to maturity no(prenominal) of the above 13. immunisation attempts to balance (a) (b) (c) (d) (e) charge risk and omission risk terms risk and reinvestment risk seclude risk and reinvestment risk splashiness risk and price risk none of the above 4. Which bond has the long-term duration? (a) (b) (c) (d) (e) 12-year maturity, 5 % coupon 12-year maturity, 7% coupon 8-year maturity , 7% coupon 8-year maturity , 5 % coupon none of the above 15. Which among the following may not be a credible reason for a company offspring callable bonds? (a) (b) (c) (d) (e) maestro sideline rate forecasting greater investment flexibility drop-off in interest rate risk strategic berth none of the above 56 ci te 1 (e) 12 (d) 2 (d) 13 (b) 3 (a) 14 (a) 4 (b) 15(d) 5 (d) 6 (c) 7 (a) 8 (b) 9 (c) 10 (a) 11 (a) 57 internationalistic fiscal guidance 1.external contradictory transfer market is predominate by (a) (b) (c) (d) (e) forged legal proceeding deflectrow minutes mercantile minutes proceeding between central banks no(prenominal) of the above 2. rally rates in India are fixed by (a) (b) (c) (d) (e) Ministry of finance bashfulness affirm of India conflicting supplant Dealers tie-up of India A delegation appointive for this purpose no(prenominal) of the above 3. commitment charged by external veer dealers primarily range from (a) (b) (c) (d) (e) 0. 25 to 0. 50 percent 0. 02 to 0. 05 percent there is no crabbed range They do not charge any relegating none of the above . The bid-ask disruption reflects (a) (b) (c) (d) (e) The breadth of the market The depth of the market The excitability of the market altogether the above no(prenominal) of the above 5. If the preliminary bid in points is less than the offer rate in points, which of the following is not true? (a) (b) (c) (d) (e) The unconnected gold is at a subvention The infrastructure specie is at a premium The distant coin is at a discount twain a and b none of the above 6. currentness futures promises are traded 58 (a) (b) (c) (d) (e) oer phone/electronic media Over the counter by leading banks In re-sentencings In all the above In none of the above 7.A edit do currency option can be purchased from (a) (b) (c) (d) (e) nonionised reciprocations Banks dealings in unusual transform mercenary agents Investment banks none of the above 8. Eurocurrency market is (a) (b) (c) (d) (e) 9. The advantage of bare a GDR is (a) (b) (c) (d) (e) on that point is no tilt fee burdensome disclosures are not infallible there are no heavy report requirements solely the above none of the above grocery store in which currencies of European nations are traded transnational market for loans denominated in euro international market for short capital planetary market for long term capital none of the above 0. Which one of the following attracts squiffy listing requirements? (a) (b) (c) (d) (e) northern bond ADS GDR both a and c no(prenominal) of the above 11. pugilism credit advance has to be liquidated (a) (b) (c) (d) (e) By talks of exportation bills By receipt of export product By availing of rupee term loan all a or b none of the above 59 12. Forfaiting essentially refers to (a) (b) (c) (d) (e) financial support exporter? s scrutinise Discounting exporter? s receivables Guaranteeing of the export receivables by the exporter? s bank Surrendering the export proceeds in favour of the discounting bank none of the above 3. The beneficiary of a earn of Credit is (a) (b) (c) (d) (e) Importer Exporter Exporter? s bank Importer? s bank no(prenominal) of the above 14. preceding shrivels are entered into to duck (a) (b) (c) (d) (e) work image transformation impression direct exposure all(a) the above none of the above 15. Which one of the following may not be a manner of mitigating operational exposure? (a) (b) (c) (d) (e) transmit in sourcing cutting in the fix of drudgery Change in product-market combination stellar(a) and follow no(prenominal) of the above 6. As foreign exchange market is an over-the-counter(a) market, which of the following is not true? (a) (b) (c) (d) there is lesser price transparence Trades can be customised in terms of maturities on that point is risk of counterparty default on at that place cannot be differences in the exchange rates for the same currency pair, for different counterparties (e) no(prenominal) of the above 60 17. Which of the following currency is traded in both the euromarket and the shoreward market? (a) (b) (c) (d) (e) US horse British spank Euro altogether the above no(prenominal) of the above 18.The deal out over SIBOR for a given borrowing is in any c ase a function of the preponderant market conditions a. true(p) b. treasonably 19. Bonds issued by a German company in the US, denominated in dollars are (a) (b) (c) (d) (e) external bonds municipal bonds Eurobonds external bonds none of the above 20. In the case of GDRs issued by Indian companies, the change by reversal modulation i. e. from shares to GDRs is freely permitted a. rightful(a) b. sour get word 1 (a) 12 (b) 2 (e) 13 (b) 3 (d) 14 (a) 4 (d) 15 (d) 5 (a) 16(d) 6 (c) 17(d) 7 (b) 18(a) 8 (c) 19(a) 9 (d) 20(b) 10 (a) 11 (d) 61 pecuniary oversight OF dreary UNITS . rbi study on the causes of industrial unsoundness shows that the relative incidence of disorder is highest in India on account of (a) (b) (c) (d) (e) fight trouble trade recess misdirection and managerial deficiencies unseasonable initial be after and other technical drawbacks no(prenominal) of the above 2. If CDR is not possible, the restructuring may be make through (a) (b) (c) (d) (e) N S OTS ADB either a or b none of the above 3. Which of the following is not a reason for classifying a unit as depressed by term add financial institutions? (a) (b) (c) (d) (e) neglectfulness in conflict a real no. f result instalments go along wearing of market share coin losses for a certain(prenominal) period go on erosion of net worth , say by 50 percent none of the above signalise 1 (c) 2 (d) 3 (b) 62 collective endangerment caution 1. economical risks for the most part may not arise on account of (a) (b) (c) (d) (e) turnout price R&D repulse cost free-enterprise(a) surroundings no(prenominal) of the above 2. In general, which among the following may not have any large impact on the performance of a firm? (a) (b) (c) (d) (e) frugal risks pecuniary risks proficient risks regulative risks no(prenominal) of the above 3. hedge activities aimed at cut back total corporate risk, are regarded as irrelevant by modern finance theory a. straight precedent b . ill-judged 4. check to CAPM, only the droll risk has a mission on the undeniable rate of return a. true(p) b. untrue 5. great financial flexibility to get laid with excitability in financial prices is provided by a (a) (b) (c) (d) (e) highschool current ratio richly gear wheel ratio number one gearing ratio superior quick ratio no(prenominal) of the above 6. R2 refers to the (a) (b) (c) (d) Coefficient of ten-fold simple retroversion difference of regression Coefficient of multiple correlation Coefficient of multiple covariance 63 e) none of the above 7. agree risk cannot be fully offset by hedgerow with market portfolio a. truthful b. ill-considered 8. If you want to hedge interest rate risk, you should (a) (b) (c) (d) (e) Go long on interest rate bless Go short on interest rate aim swop a forward exact figure into a forward rate agreement none of the above 9. Futures are forward trim downs a. truthful b. treasonably 10. You will not be marked to market, if you (a) (b) (c) (d) (e) leveraging a futures melt off make do a futures acquire grease ones palms an options conduct tell on an options contract none of the above 11. In a currency alternate interest payments are not swapped a. reliable b. mistaken 12. Which of the following may not be a reason for going in for a financial swap? (a) (b) (c) (d) (e) administer condensate food market naval division commercialise intensiveness rest in financial norms none of the above 13. Which among the following is not convertible (a) (b) (c) (d) (e) Options contract Futures contract business deal contract only the above none of the above 64 14. insurance policy companies do face the line of work of ominous selection but not that of moral hazard a. legitimate b. mendacious 15. globally the most popular measure of risk is (a) (b) (c) (d) (e) epoch volt-ampere R2 facing pages analysis no(prenominal) of the above 6. For commodities the following relationship is pa ss judgment to hold Futures price (a) (1+rf)t Futures price (b) (1+rf)t Futures price (c) (1+rf)t Futures price (d) (1+rf)t (e) no(prenominal) of the above = neck price give in value of reposition be + map value of wash room fork over = bureau price + consecrate value of entrepot cost subject value of gismo yield = bite price+ look value of storage cost + make value of convenience yield = malignment price signalise 1 (b) 12(e) 2 (e) 13(c) 3(a) 14(b) 4(b) 15(b) 5(c) 16(c) 6(c) 7(a) 8(d) 9(a) 10(c) 11(b) 65