Practice Financial Management Questions and Answers
- Which of the following is not correct with regard to oligopoly?
- A leased asset should be depreciated over the
- A company is in need of a new plant to ramp up production at its manufacturing unit. It is contemplating ways to finance the new plant and is deciding betw...
- An entrepreneur is setting up his new business. He purchases some equipment. He also takes insurance on the equipment for which the premium is paid for 6 m...
- Definition of separation of ownership from trading rights is called as:
- A company earns good profit before the close of the financial year and declares dividend. This dividend is called:
- What is the wrong statement about NBFCs?
- The risk adjusted discount rate can be calculated by the following method:
- All the following will be included in the company’s operating activities except:
- A company’s quick ratio is 1.2. If inventory were purchased for cash, the:
- Factoring and forfeiting are two different ways of extending credit by financial institutions. Which of the following is NOT a difference between factoring...
- If an individual is unable to pay back the overdraft taken by him it is known as
- Calculate the operation cycle from the given data A. Duration of Raw material stage B. Duration of work in progress stage C. Duration of ...
- Which one of the following would be an unsystematic risk for a company?
- The rate applicable to an investment lasting for n years when all the returns are realized at the end is called:
- A portfolio’s total risk is a combination of the risk of the individual investments in the portfolio. The total risk of a portfolio consists of which of ...
- Risk Shifting can be done by using which of the following financial instruments ?
- Mutual funds are pooled investment vehicles. Which of the following is a type of mutual fund that invests primarily in other schemes of the same mutual fun...
- Given that the money discount rate is 19% and Inflation is 12%, what will be the real rate of interest?
- Under the Basel III guidelines, it is advised to create a countercyclical capital buffer of 0-2.5%. Which of the following is not true about this buffer?
- Which of the following is a method of measuring the loss in the value of the portfolio over a given period and for a distribution of historic return?
- Which of the following is not considered for maintaining Statutory Liquidity Ratio (SLR) by Scheduled Commercial Banks?
- Ayush bought a futures contract at Rs 120. If, the initial margin is 40% and maintenance margin is 25%, at what price the margin call will be initiated for...
- Derivatives can be used to hedge the risk. A person can protect himself from downside risk by entering into which of the following position?
- Which among the following is NOT a constituent of Tier-II capital of banks according to BASEL Accord?
- Which of the following risk is the bank facing when an individual is unable to pay back the overdraft taken by him?
- The Assets Liabilities committee (ALCO) in a bank is primarily responsible for managing which of the following risk?
- The Risk based supervision (RBS) for banks was introduced in 2012 by RBI. Which of the following is correct regarding RBS?
- The Basel II required that all banking institutions set aside capital for operational risk. The operational risk can be assessed by which of the following ...
- The ICAAP is required to form an integral part of the management and decision-making culture of a bank. What does ICAAP stands for?
- In derivatives market, individual/firm that take short and long positions in the same or different contracts at the same time to create a position which ca...
- Name the risk which arises when bank’s image is not good and that leads to public’s loss of confidence in the bank.
- Which of the following are the benefits of a centralised risk management structure? A. it is independent from operations and business unit of the ban...
- Which of the following risk(s) does the Chief risk officer deals with?
- If the expected return on the market is 18% and the expected return on a stock with a beta of 1.2 is 20%, what is the risk-free rate?
- When a bank sanctions a large loan to a borrower, which of the following risks it may not have?
- Managing risk in a bank means _______ A. not entering into any business where there appears to be risks B. implementing the appropriate policies and proced...
- Which of the following products of a bank can have credit risk? A. fund based loans B. non fund based loans C. treasury products
- As per loan review framework of RBI, loan review of high value accounts are usually carried out __________
- Which of the following carries lowest risk weight?
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