WorksheetsFIMIS-MockTest
Total questions: 65
Worksheet time: 33mins
Who mints the coins in India?
Ministry of Finance
Reserve Bank of India
Prime Minister's Office
Commerce and Industry Ministry
the objective of central bank is to _______
ensure monetary stability in the country
maintain the international value of the country's currency
issue currency
all of these
Which statement is not true regarding RBI ?
It was established in 1935.
It can issue currency notes.
Personal account can be opened in RBI.
It is also known as the Banker's Bank.
It is the Central Bank of India.
Which among the following is incorrect?
RBI is the Bank of Issue
RBI acts as Banker to the Government
RBI is Banker's Bank
RBI does not regulate the flow of credit
identify which of these is not a function of the central bank.
Custodian of cash reserves
Paying interest on deposit obtained from the public
Issue of currency
Custodian of foreign exchange ratio
Reserve Bank of India is the lender of the last resort to scheduled commercial banks because?
the parties can approach R B I when their limits are exhausted.
they are not able to get loans from other banks.
R B I meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy.
All of the above.
Which of the below option best describes the process of insurance?
Sharing the losses of many by a few
Sharing the losses of few by many
One sharing the losses of few
Sharing of losses through subsidy
In India _______________ insurance is mandatory.
Motor third party liability
Fire insurance for houses
Travel insurance for domestic travel
Personal accident
Which of the following is not an element of the life insurance business
Asset
Risk
Principle of Mutuality
Subsidy
Which among the following is the regulator for the insurance industry in India?
Insurance Authority of India
Insurance Regulatory and Development Authority of India
Life Insurance Corporation of India
General Insurance Corporation of India
Which among the following is a method of risk transfer?
Bank FD
Insurance
Equity shares
Real estate
Which of the following statement is true?
Insurance protects the asset
Insurance prevents its loss
Insurance reduces possibilities of loss
Insurance pays when there is loss of asset
Government of India transacts life insurance
business in India through which of the following
LIC of India
GIC of India
Postal Life Insurance
All the above.
The Securities and Exchange Board of India was not entrusted with the function of
Investor Protection
Ensuring Fair Practices by Companies
Promotion of efficient service by brokers
Improving the earning of equity holders
To regulate scam in Indian capital market, which of the following body has regulatory power:
SEBI
SECI
RBI
SBI
One of them is not the regulatory function of SEBI
Regulating the business in stock exchange
Registration and regulating the working of Stock Brokers, Sub – Brokers, Merchant Bankers, Depository participants and other intermediaries
Regulation of Collective Investment Schemes
Conducting research and publishing market information which are useful to all market participants
Factoring is __________based financial service
Fund
Fee
Locker Service is _________based financial service
Fee
Fund
Why do banks seek to increase the size of their deposits?
To build larger bank buildings.
To put pressure on government officials.
To increase their capacity to lend.
To allow for more investments.
To pay bank employees more.
Commercial banks earn money in all of the following ways EXCEPT:
Investing in other companies
Charging fees for their services
Collecting interest on loans
Taking a percentage off of all deposits
The primary market is also called
New issue market
IPo
stock exchange
over the counter market
The securities that are already issued are available for subsequent purchases and sales at:
________.
Office of the registrar and transfer agent
Follow on public offer of the issuer
Stock exchanges where they are listed
Depositories where they are held
The financial results of a company show that it has suffered losses due to declining
market share. The price of its equity share drops in the market. This is an example of the
role of the market as: _________.
Provider of liquidity
Orderly channel for transfer of funds from investors to issuers
Generator of productive investments
Information Signalling through prices
The reserves of a company rightfully belong to ____________.
Equity Shareholders
Institutional lenders
Promoters
Employees
To buy an option, if the underlying value is close to the strike price and there is volatility, the price of the option is going to be?
Higher
Any change
Lower
If a contract has high volume, is more probably to ...
Have a lower spread.
Have low volatility.
Have a lower margin request.
is the process by which an organization or individual defines the level of risk it wishes to take
risk management
budget planning
project management
A trader executes a buy trade at 10:15 AM and sells the stock at 2:30 PM on 20/03/2021. What kind of a trade is this?
Position
Scalping
Swing
Day
Momentum
A trader holds his position on a stock for 5 days. What kind of a trade is this?
Position
Scalping
Swing
Day
Momentum
A _______________ comes with a down payment and monthly installments.
Selling price
Hire Purchase plan
Interest
Discount
If a hire purchase plan is not done, then the person must buy the item in full ______________.
Credit
Loan
Discount
Cash
To buy a new TV on Hire Purchase, Michael must pay a £50 deposit and 10 monthly payments of £15. How much will he pay in total for the TV?
£200
£515
£50
£650
When you are leasing, you _________ own the car.
do not
do
Check (ALL that apply)
Which of the following could you be charged extra for while leasing?
Paint color
Extra mileage
Any damage to the vehicle
Emissions testing
Ending your lease early
When leasing a vehicle, your payment is mostly based on how much the car will _____________ over the time you are renting it.
depreciate
drive
last
finance
CHECK ALL THAT APPLY!
Which of the following are reasons people might lease?
Because it's overall cheaper than financing.
Because people enjoy having new vehicles as often as possible.
Because people don't have money for a down payment or a vehicle to trade in.
Because some people move around frequently and won't always be able to take a personal car with them.
Someone might choose to own a car instead of leasing a car because:
it will be less expensive
it will be more expensive
it could lead to lower repair expenses
it could be sold later on to make some money back on the vehicle
How can you reduce your monthly mortgage payment?
by getting a higher interest rate
by putting less money as a down payment
by shortening the term of the loan
by lengthening the term of the loan
Which of the following might be required of the tenant when it comes to a typical housing lease?
the tenant might have to repair types of damage to the property
the tenant might have to avoid participating in illegal activity on the property
the tenant might have to purchase renter's insurance for the property
all of these might be required
Which factors will affect the size of your monthly mortgage payment?
the interest rate
how much is borrowed (principal)
the size of your down payment
all of these
Which is an advantage of owning a home over renting?
it is yours and you can make all decisions
you build equity over time
you can sell it later on for a profit if it increases in value
all of these
A written agreement between a a tenant and a landlord:
mortgage
lease
cooperative
assessment
............. is the rate at which commercial banks borrow from central bank in emergency
CRR
SLR
Bank rate
Reverse repo rate
........... is the ratio of deposits which bank keep with the central bank
CRR
SLR
Bank rate
Reverse repo rate
............is the rate at which the central bank borrow funds from commercial bank
CRR
SLR
Bank rate
Reverse repo rate
Which one of the following is the most important relationship between banker and customer?
Debtor and Creditor
Bailee and Bailor
Agency and Principa
Trustee and Beneficiary
Banks which accept deposits from the public and lend them mainly to commerce for short periods?
Commercial Bank
Industrial Bank
Agricultural Bank
Central Bank
The apex institution in agricultural finance is
NABARD
EXIM Bank
Reserve Bank of India
IDBI
Bonds are used to sell debt
True
False
What is the interest rate on a bond called?
Interest Rate
Government Rate
Set Rate
Coupon
There is an __________ relationship between bond prices and interest rates
direct
positively correlated
inverse
indirect
You must hold your bond until it matures
False
True
People may buy bonds instead of putting their money into banks because (tick one!)
it is safer
the interest rate may be higher
they want to help the government raise money
all of the above
Ali Ashraf, the owner of a groundworks firm, sees his costs are on the high side. He sells his two oldest, slowest excavators, and with the money he buys one new one of the latest much faster models, expecting work faster while he saves on fuel, and thus improve his balance sheet.
This is an example of:
Retained profits
Sale of Assets
Debt Factoring
Loan Capital
The Board of Ching Shu, a debt collection firm, decides to postpone the payout of shareholder dividends. The funds are used to open new offices, increasing their circle of activity. The shareholders think this is a great move as they think this will increase their stock value over time.
This is an example of:
Debt Factoring
Retained Profits
Working Capital
Leasing
The owner of Jack’s Furniture Workshop, a one man company, manages to get a massive order to fit out a secondary school in Michigan. He puts $10.000 of his savings into the company so he can buy the needed raw materials, fully expecting to earn it back quickly.
This is an example of:
Owners' Fund
Trade Credit
Overdraft
Hire Purchase
What is an advantage of a bank loan?
There will be little or no interest
They are quick and easy to arrange
You can pay in smaller installments
You don't have to pay it back
Which of the following is NOT true of working capital?
It is the amount of capital the firm has available to pay for its operations
The amount of money a firm has to spend in the short term
It is a measure of the firm's liquidity and financial health
It is the sum total of a firm's fixed assets
