Practice Financial Management Questions and Answers

• What is the maximum Loan to Value (LTV) ratio for individual housing loans above ₹30 lakh and up to ₹75 lakh?
• In respect of an Overdraft/Cash Credit (OD/CC), when is the advance treated as NPA?
• Depreciation is charged as per which principle?
• Which of the following is NOT mentioned as an eligible external benchmark in the circular on External Benchmark Based Lending issued by RBI?
• According to the Reserve Bank of India (Interest Rate on Advances) Directions, 2016, banks have the option to consider the outstanding balances of deposits...
• What is the limit for loans against shares, debentures and bonds per individual?
• How often should the interest rate under the external benchmark be reset?
• Which term best describes the measure provided by Accounting Ratios to assess a company's performance and condition?
• Which type of analysis involves comparing the financial ratios of different firms at the same point in time?
• ABC Company extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was
• Which term describes the percentage of each sales rupee that remains after a company has paid for its goods?
• Commission received in advance is of the nature of
• Which regulator is responsible for overseeing the functioning of REIT and InvIT in India?
• The preparation of a trial balance is for:
• 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)?
• Accounting Standards do not permit following method of inventory valuation:
• 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
• 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
• What will be the net working capital if Current ratio of a concern is 1?
• What is the meaning of the term 'taper tantrum' used in monetary policy discussions?
• Financial leverage means
• Which term refers to the specific rate of interest carried by a bond?
• 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 most likely a sign of a good corporate governance structure? A.The chief executive position is separate from the chairperson posi...
• 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.
• Which of the following is true with respect to the Risk based supervision (RBS) for banks done by RBI?
• Which of the following statements is correct?
• An examination of the sources and uses of funds statement is part of:
• If the trend of the current ratio is increasing, while the trend of the acid-test ratio is decreasing over a period of time, this could be a warning that t...
• What relationship exists between the average collection period and accounts receivable turnover?
• Which among the following funds of the mutual fund invests primarily in other schemes of the same mutual fund or other mutual funds?
• What is the name of the short-term advance given by the RBI to the government if it shows the negative balance?
• The Banking which offers all types of financial products like banking, insurance, mutual funds, capital market related products, investment products, and m...
• Who among the following can issue Certificate of Deposits to raise short term resources?
• Which of these are covered under Regulated Entities (RE): 1. All India Financial Institutions (AIFIs) 2. All Non-Banking Finance Companies (NBFCs),  3. Al...
• The series of fixed payments paid or received by a persons at specified frequency over a fixed period of time are called: