17. Insurance policy taken by a business firm on the life of very important person to project the firm against financial loss, is called ……
a. Master policy
b. Keyman policy
c. VIP Protection policy
d. Umberrima fides
Ans – b
16. To address customer grievances in respect of insurance contract on personal lives, there is an institution called……
a. Insurance Ombudsman
b. Insurance regulator
c. Insurance Intermediary
d. Insurance Regulatory and development Authority
Ans – a
15. The minimum capital to start a new Insurance company in India is ……
a. Rs.100cr
b. Rs.75cr
c. Rs.50cr
d. Rs.10cr
Ans – a
14. If there is default of repayment by the buyer in case of factoring and the factor is able to recover the amount from the seller, it is called ……
a. Non-recourse factoring
b. Without recourse factoring
c. Recourse factoring
d. Bills discounting
Ans – c
13. Which is/are function/s of SEBI as per SEBI Act, 1992? (i) SEBI promotes training of intermediaries of the securities market, (ii) SEBI prohibits fraudulent and Unfair Trade Practices, (iii) SEBI frames rules and regulations and a code of conduct to regulate the intermediaries such as merchant bankers, brokers, underwriters, etc.
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – d
12. What are the characteristics of Open-ended Mutual Fund? (i) They are bought and sold on demand at their net asset value, or NAV, (ii) Generally calculated at the close of every trading day, (iii) Investors buy shares directly from a fund
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – d
11. The Basel Committee on Banking Supervision, is a committee that was constituted by ……
a. RBI and World Bank
b. International Monetary Fund
c. United Nations
d. None of the above
Ans – d
10. A bank has risk weighted assets of Rs.1000 cr and it has undisclosed reserves of Rs.30 cr. What is the maximum amount of such reserves that can be included Tier-2 capital?
a. Rs.90 cr
b. Rs.30 cr
c. Rs.12.50 cr
d. Rs.7.50 cr
Ans – c
9. When investment is made in other schemes of the same or different mutual funds, such fund is called ……
a. Index fund
b. Gilt fund
c. Fund of funds
d. Mutual fund
Ans – c
8. Which of the following statement is correct regarding premium on life insurance policies?
a. The premium rates for with profit policy are higher than the premium for without profit policy
b. The premium rates for with profit policy are lower than the premium for without profit policy
c. The premium rates for with profit policy are equal than the premium for without profit policy
d. None of the statement is correct
Ans – a
7. NAV is required to be disclosed by the mutual funds on a …… basis
a. daily
b. weekly
c. depending on the type of scheme
d. none
Ans – c
6. Which of the following transactions is backed by a letter of credit?
a. Factoring
b. Forfaiting
c. Securitization
d. Leasing
Ans – b
5. Which of the following guarantees, is a financial guarantee? (i) Bank guarantee for supply of goods on credit basis, (ii) Bank guarantee in favour of customs authorities, (iii) Bank guarantee in favour of tax authorities
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – d
4. A bank has revaluation reserves of Rs.300 cr what amount can be included in the Tier 1 capital?
a. Rs. 300 cr
b. Rs. 165 cr
c. Rs. 135 cr
d. Rs. 30 cr
Ans – c
3. Subordinated debt can be included in Tier-2 capital fund, only where it is with an original maturity of ……
a. Max 10 years
b. Min 10 years
c. Max 5 years
d. Min 5 years
Ans – d
2. As per fair Practice Code for lenders, if a bank receives request from borrower for transfer of his loan account to another bank, the bank is to convey its consent objection within …… from date of receipt of request
a. 30 days
b. 21 days
c. 15 days
d. 10 days
Ans – b
1. A mutual fund has, apart from its sponsors …… (i) Trustees, (ii) Asset Management Company, (iii) Custodian
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – d
Great stuff Neil,Hope to bump into you on the inside! ( don’t forget to contact me if you need any help! )