IC89 Mock Test Sample 5
Financial management focuses on procurement and allocation of funds to achieve organizational objectives. Financial markets support liquidity, price discovery, and mobilization of savings. Instruments like futures, derivatives, bonds, and equity funds help investors manage risks and returns. Foreign Direct Investment (FDI) is an important source of raising funds from foreign sources. SEBI regulates securities markets and investor protection in India. Different investment options such as debt funds, hedge funds, and infrastructure funds cater to varying investment needs. Financial statement analysis, ratio analysis, and solvency analysis help assess company performance. ULIPs combine insurance with investment benefits and offer tax-saving opportunities.
Q1. FDI is an important route for raising funds from __________.
a) Debtors
b) Creditors
c) Foreign sources
d) Banks
Q2. __________ refers to the face value of the bond.
a) Coupon rate
b) Maturity date
c) Par value
d) Interest rate
Q3. Considering that shares of White and Green Ltd. are quoted at Rs.88, the value mentioned is:
a) Rs.88
b) Rs.100
c) Rs.114
d) Rs.136
Q4. In __________, the SEBI Act was enacted giving statutory powers.
a) 1990
b) 1991
c) 1992
d) 1993
Q5. An investment of Rs.1,00,000 in 2011 in a project will generate:
a) -39652
b) 40256
c) -45265
d) -49520
Q6. What refers to the chance of loss of expected return on investment?
a) Risk on investment
b) Marketability
c) Tax benefits
d) Rate of return
Q7. Which contract is a standardised contract between two parties?
a) Lock
b) Open
c) Futures
d) Forward
Q8. Financial management deals with:
a) Procurement of funds
b) Allocation of funds
c) Both a and b
d) None of the above
Q9. In Spot transaction, if a transaction is done on Friday, settlement occurs on:
a) Monday
b) Tuesday
c) Wednesday
d) Thursday
Q10. In which schedule of the Companies Act, 2013 are financial statements prescribed?
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
Q11. Financial market facilitates __________ or price establishment.
a) Liquidity
b) Price discovery
c) Low cost financing
d) Mobilisation of savings
Q12. ABC Ltd is planning investment in an Engineering project requiring:
a) 215469
b) 3245987
c) 460364
d) 548967
Q13. __________ analysis is not only the duty of insurance companies.
a) Ratio analysis
b) Financial statement analysis
c) Solvency analysis
d) Profit analysis
Q14. What means data that are put into a meaningful and useful context?
a) System
b) Information
c) Value
d) Purpose
Q15. Which derivative is an instrument used to protect farmers?
a) Commodity Derivative
b) Over the Counter Derivative
c) Exchange Traded Derivatives
d) Embedded Derivative
Q16. Which funds are primarily used for investment in unlisted securities?
a) Debt funds
b) Infrastructure funds
c) Hedge funds
d) Equity funds
Q17. Units of close-ended AIF may be listed on stock exchange subject to minimum tradable value of:
a) 10 rupees
b) 1 thousand rupees
c) 1 lakh rupees
d) 1 crore rupees
Q18. M/S Y Company Ltd is planning for capital investment of Rs.1,00,000 with return of:
a) 1.26
b) 2.56
c) 3.65
d) 4.29
Q19. Which determine how costly funds are allocated and committed?
a) Business decisions
b) Investment decisions
c) Financial management
d) Financial decisions
Q20. Which of the following is correct about ULIP?
a) Only present in tax-saver schemes
b) No entry load
c) Aggressive with focus on stability of returns
d) Tax savers come with 3 year lock-in period
