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CA FOUNDATION BCK CHAPTER 6

Authored by CA SAI PRASHANTH

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Professional Development

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CA FOUNDATION BCK CHAPTER 6
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20 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

A market in which there are comparatively low number of bids to buy and offers to sell is called _________

(a) Thick market
(b) Stock Market
(c) Thin Market
(d) None of the Above

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The collection of businesses and products that make up the business is called _________

(a) Business Diversification
(b) Consortium
(c) Business Portfolio
(d) None of the above

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is a cap?

(a) A cap is a limit that regulates the increase or decrease in the rate of interest and instalments of an adjustable rate mortgage.
(b) A cap is the total amount of cash that is present in the bank account and can also be withdrawn immediately.
(c) A cap is the certificate of savings deposit that promises the depositor the sum back along with appropriate interest.
(d) A cap is a loan where the time and cash flow between a short term loan and a long term loan is filled up.

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following is incorrect?

(a) Arbitrage is simultaneous purchase and sale of a commodity.
(b) Current assets are those which can be turned into cash within a year.
(c) Intangible assets are those which do not have physical form. They are in the form of rights.
(d) Break-even point is also called an optimum point of a firm.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

ADR stands for:

(a) American Deficit Record
(b) American Depository Receipt
(c) Asset Depreciation Record
(d) Asset Depository Receipt

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is a bull market?

(a) A market in which the stock prices are increasing consistently.
(b) A market in which the stock prices are decreasing consistently.
(c) A market in which the stock prices are stable over a long time.
(d) None of the above

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

____________ is a technology where the banking organizations resort to the use of electronics, computers and other networks to execute transactions and transfer funds.

(a) E-cash
(b) Digi-cash
(c) Hedge
(d) Cap

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