Management of Financial Services

Merchant Banking is

• Financial Instruments

• Fund Based Financial Services

• Fee Based Financial Services

• Financial Institution

Functions of Merchant Bankers are

• Raising Finance for Clients

• Broker in Stock Exchange

• Project Management

• All of the above

Which of the below is Merchant Bankers?

• ICICI Securities Ltd

• ICICI

• HDFC

• SBI

Credit Rating

• Rating by Customer

• Rating by government

• —Is the symbolic indicator of the current opinion of the rating agency regarding the relative ability of the issuer of the financial instruments to meet service/debt obligation.

• —Is the symbolic indicator of the current opinion of the customer regarding the relative ability of the issuer of the financial instruments to meet service/debt obligation.

Time frame of rating process by a rating agency is

• 4-6 weeks

• 1 month

• 2 weeks

• 8 weeks

CRISIL is NOT a credit rating agency

• True

• False

Credit rating is used to estimate the worthiness of the credit for the company, country or any individual company.

• True

• False

Asset securitization is

• Fixed Asset creation

• Process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors

• Mortgage-backed securities

• All of the above

SPV stands for

• Special property vehicle

• Second purpose vehicle

• Special purpose venture capital

• Special purpose vehicle

What are Closed Ended Funds?

• An equity or debt fund in which the fund house issues a fixed number of units at launch

• Once the NFO (New Fund Offer) period ends, investors cannot purchase or redeem units of fund

• These funds are launched via an NFO and subsequently traded in the market like stock and have a fixed maturity period.

• All of the above