Practice Financial Management Questions and Answers

• According to the RBI guidelines, what should be clearly spelt out at the time of financial closure of a project financed by an NBFC?
• The capital asset pricing model (CAPM) suggest that, the cost of equity is a trade-off between :
• Which of the following is a typical source of project finance?
• Which regulator is responsible for overseeing the functioning of REIT and InvIT in India?
• Which of the following statement is not true:
• Which of the following is correct about Commercial Papers (CP)?
• Under written down value method of Depreciation, the WDV of the asset is always:
• Which of the following statements correctly describes the meaning of Indian Depository Receipt (IDR)?
• BCR, IRR, Sensitivity, Scenario and Risk analysis are part of:
• Which of the following best describes a risk specific to a project, and arising on account of deficiencies in planning/execution capability of the project ...
• Which variable is compared to working capital when calculating the working capital turnover ratio?
• Which of the following securities are cleared and settled by Clearing Corporation of India Limited (CCIL)?
• Which of the following is not true with regard to any change in the repayment schedule of a project loan caused due to an increase in the project outlay on...
• Which of the following is an advantage of an exchange trading system in a derivative market?
• When a commercial bank creates credit, its immediate effect is that it raises
• According to the CAPM model, Expected Return = Risk free rate + Risk premium. Here, what does the risk-free rate compensate the investor for?
• The price specified on an option that the holder can buy or sell the underlying asset is called the:
• When a bank chooses the wrong strategy or follow a long-term business strategy which might lead to its failure, it is called
• Insurance sector in India is regulated by the provisions of: A.    Insurance Act, 1938 B.    Life Insurance Corporation Act, 1956 C.   Insurance ...
• IRR is calculated for one of the following purposes:
• Which of the following is a wastage controlling technique which means continuous improvement?
• Which of the following is not correct about budgeting?
• What is the meaning of the term 'taper tantrum' used in monetary policy discussions?
• Financial leverage means
• Employees who are ________motivated tend to work at higher levels of productivity and strive to develop professionally.
• Credit Information Bureau (India) Limited CIBIL is India’s credit information bureau which provides consumers credit scores to a closed user group of mem...
• Which term refers to the specific rate of interest carried by a bond?
• Which of the following is incorrect about role of Independent Directors? A. They are expected to be independent from the management and act as the trustees...
• In the context of the Takeout Finance Scheme, which of the following is not an eligibility condition for an infrastructure project?
• Which of the following best describes the relationship between bond prices and interest rates?
• Match the following:
• What is the term used to describe the issuance of securities, whether debt or equity, to a select group of investors such as banks, mutual funds, high net ...
• Which of the following is not an objective of IIFCL’s Takeout Finance Scheme?
• What is the term used to describe the rate of return earned by an investor who purchases a bond and holds it until it matures?
• Which of the following is most likely a sign of a good corporate governance structure?   A.    The chief executive position is separate from the chair...
• What is the term used for options that do not have offsetting positions?
• Which of the following is not a specified criteria to be fulfilled by Infrastructure Finance Companies (IFC)?
• How would you define the process of allocating a limited capital budget between different projects in a way that maximizes shareholder wealth?
• Current ratio is 4:1.Net Working Capital is Rs.30,000. Find the amount of current Assets.
• Under the public private partnership (PPP) model of HAM road project, how much support is provided by the government for construction?