Top 150+ Solved Advanced Financial Management 2 MCQ Questions Answer
Q. The purchase and sell of which of the following instrument is effected throughSubsidiary General Ledger (SGL) account?
a. Treasury Bills
b. Options
c. Equity Shares
d. All of the Above
Q. Minimum Subscription amount of a Certificate of Deposit is ___________.
a. Rs. 25,000
b. Rs. 50,000
c. Rs. 1,00,000
d. Rs. 5,00,000
Q. Which instrument was introduced in year 1990 with a view to enable highly ratedcorporate borrowers to diversify their sources of short-term borrowings?
a. Certificate of Deposit
b. Commercial Paper
c. Commercial Bill
d. None of the Above
Q. When money is lent for more than a day and up to 14 days it is called as __________
a. Demand Money
b. Call Money
c. Put Money
d. Notice Money
Q. What type of relationship is there between call rates and short-term money marketinstruments such as CDs and CPs?
a. Inverse
b. Direct
c. Negative
d. None of the Above
Q. _______________ is an important tool to finance credit sales?
a. Commercial Bill
b. Commercial Paper
c. Certificate of Deposit
d. None of the Above
Q. Which instrument involves high risk and high returnsand helps corporates in solvingtemporary capital crisis without many formalities?
a. Equity Shares
b. Term Loan
c. Inter-corporate Deposits
d. All of the Above
Q. Which of the following are money market instruments?
a. Treasury Bills
b. Commercial Bills
c. Call Money
d. All of the Above
Q. What is the full form of CRISIL?
a. Credit Rating and Investment Services of India Limited
b. Credit Rating Information Services of India Limited
c. Credit Rating Institution for Small Industries Limited
d. Credit Rating Information Sector of India Limited
Q. CARE has been set up by ___________ in collaboration with some banks and financialinstitutions.
a. IDBI
b. IFCI
c. ICICI
d. UTI
Q. Which was the first ever instruments that was rated?
a. US Rail Road Bonds
b. UK Rail Road Bonds
c. US Mines Bonds
d. None of the Above
Q. Which sentence is true? Sentence A – Rating once given remains unchangedSentence B – Rating may be upgraded, downgraded or continue to be unchanged.
a. Sentence A is True
b. Sentence B is True
c. none
d. none
Q. Which of the following is NOT true with respect to Credit Rating
a. Credit Rating helps the market regulators in promoting stability and efficiency in securities market.
b. Credit Rating helps issuers to have a wider access to capital with better pricing
c. Credit Rating saves the investor’s time and enables him to take quick decision.
d. Credit Rating is a recommendation for the issuers to buy, sell or hold the security.