WorksheetsFINQUEST_NMIMS
Total questions: 35
Worksheet time: 12mins
Which of the following is a long-term source of finance?
Trade credit
Bank overdraft
Equity shares
Bills payable
What is “capital structure” of a firm?
Fixed assets held
Sales composition
Dividend policy
Mix of debt and equity financing
Which Indian institution regulates mutual funds?
Ministry of Finance
IRDA
SEBI
RBI
Who is the current Governor of the Reserve Bank of India (RBI)?
Urjit Patel
Shaktikanta Das
Nirmala Sitharaman
Raghuram Rajan
Which of these is not a direct tax?
Wealth tax
Corporate tax
Income tax
GST
what is the Current repo rate in India?
4.5%
7%
6%
5.5%
What is the full form of CDSL?
Capital Depository Services Limited
Corporate Debt Securities Limited
Central Depository Services Limited
Central Data Storage Limited
What does a high Price-to-Earnings (P/E) ratio most likely indicate about a company?
It has high liabilities
Its stock is undervalued
Investors expect high future growth
It pays no dividends
What does “liquidity” refer to in finance?
Profitability of a firm
Debt taken by private from government
Ability to convert assets quickly to cash
Growth rate of industry
Monetising government debt (borrowing from central bank) can lead to:
Hyperinflation
Deflation
Reduction in taxes
Higher exports
Diversification primarily reduces which type of risk?
Company‑specific risk
Systematic risk
Market risk
All risk
What is a Non‑Performing Asset (NPA) in banking?
A high‑yielding loan
Equity investment by bank
Loan where payments are overdue
Loan given to government
Which one of the following affects a company’s gearing (leverage)?
Retained earnings
Issue of equity
Issue of debentures
Sale of fixed assets
Which of the following is a typical characteristic of a bear market?
Optimistic investor sentiment
High dividend payouts over a period
Declining stock prices over a period
Rising trading volumes over a period
India’s central bank digital currency (CBDC) is called:
Bharat Coin
e₹ (e-Rupee)
Digital INR
RBI e-Cash
Negative interest rates:
Increase bond yields
Encourage saving
Penalize savings
Discourage borrowing
Which of the following is considered systematic risk?
Product recall by a firm
A company losing its CEO
Stock market crash
actory shutdown of one firm
Which of the following is true for the Internal Rate of Return (IRR)?
It is unique for every project
It is the discount rate that makes NPV = 0
It does not consider time value of money
It always leads to correct investment decision
Purchasing Power Parity (PPP) suggests:
Exchange rates remain constant in the long run
Interest rates equalize across countries
inflation never impacts exchange rates
Exchange rates adjust so identical goods cost the same globally
If a company’s Operating Cash Flow is positive, but Net Income is negative, this most likely indicates:
The company is facing a liquidity crisis
The company is profitable
The company has poor liquidity
There are large non-cash expenses like depreciation
Which of the following is not a feature of preference shares?
Fixed dividend
Voting rights
Preference in liquidation
Less risky than equity
Which of the following is not an advantage of issuing equity?
Permanent capital
No repayment obligation
Fixed cost of capital
Voting rights to shareholders
Stock exchange circuit breakers exist to:
Prevent insider trading
Limit extreme volatility by halting trading
Control interest rates
Protect broker commissions
Quantitative easing (QE) typically:
Raises bond yields
Increases money supply and lowers long-term interest rates
Reduces stock prices
Leads to higher bank faliures
“Too Big to Fail” banks create moral hazard because:
They expect government bailouts during crises
They face higher taxes
They never lend to risky borrowers
They are immune to defaults
Emerging markets face greater risk of sudden capital outflows due to:
Strong regulatory frameworks
Dependence on foreign portfolio investments
Permanent current account surpluses
Lack of foreign exchange reserves
Fixed exchange rate regimes can cause problems when:
Domestic inflation diverges from global inflation
The central bank has unlimited foreign reserves
Currencies float freely
Trade balances are always in surplus
Long-term trade deficits generally lead to:
Elimination of imports
Increase in foreign reserves
Appreciation of domestic currency
Depreciation of domestic currency
The collapse of Lehman Brothers in 2008 triggered a crisis because:
It was fully insured by the Fed
Lehman was a small regional bank
It was a systemically important institution with global linkages
It had no exposure to mortgage markets
Which of the following is a key function of the World Bank?
Regulating global interest rates
Acting as a lender of last resort for commercial banks
Controlling global currency reserves and maintain exchange
Providing long-term development financing to countries
Capital account convertibility refers to:
Free movement of capital and investment across borders
Free conversion of currency for trade transactions only
Government monopoly on foreign exchange
Restricting foreign exchange inflows
You lend ₹10,000 at 8% p.a. simple interest for 3 years. Interest earned = ?
₹2,200
₹2,800
₹3,000
₹2,400
₹20,000 grows to ₹26,000 in 2 years. Annualized return ≈ ?
12.5%
13.5%
14.02%
15%
Profit margin = 6% , Asset turnover = 1.5 , Equity multiplier = 2. ROE?
18%
16.5%
30%
19
Net income = ₹1,20,000; Shareholder’s equity = ₹6,00,000.
ROE = ?
16
15
18
20
