Finance quiz

[A]Nostro account[B]Vostro account[C]Loro account[D]Mirror account

Bank of the Middle East, Dubai is maintaining an account with SBIMumbai. SBI Mumbai calls this account as

[B]Vostro account

In August 2010, this company acquired Electro-Motive Diesel, Inc. It manufactures construction equipment, its market capitalization is $68.5 billion and its largest shareholder is State Street.

A. CaterpillarB. VolvoC. Ingersoll RandD. John Deere

ANSWER

Caterpillar Inc..

This company provides a delivery service that brings packages to any business address in the United States. Its market capitalization is $29.2 billion and its largest shareholder is PRIMECAP.

A. DHLB. COSCOC. FedExD. United Parcel Service

ANSWER

FED EX

ANSWER

STAR BUCKS

Former Goldman Sachs director Rajat Gupta is being charged for insider trading involving what hedge fund?

A. AmaranthB. GalleonC. LiongateD. Magnetar

ANSWER

Galleon hedge fund 

Which president is famous for his opposition to a central bank?

A. Andrew JacksonB. James MonroeC. William HarrisonD. Zachary Taylor

ANSWER

Andrew Jackson

The Consumer Financial Protection Bureau defines the largest banks as those with more than what amount in assets?

A. $5 billionB. $10 billionC. $15 billionD. $20 billion

ANSWER

$10 billion

 Indian Institute of Management RaipurWhich company’s ticker symbol onthe NYSE is “C”?

Who is known as the “orcale of omaha”? And his famous quote is "Rule No.1: Never loss money, RuleNo.2: Never forget the Rule No.1" 16

ANSWER

WARREN BUFFET

In India where is the Paper for the currency manufactured? 

ANSWER

SECURITY PAPER MILL AT HOSHANGABAD, M.P

Parent company of Standard &poors? 

ANSWER

McGRAW HILLS

[A]Zero[B]Forward price[C]Bid - ask spread[D]Spot price minus forward price

The value of a forward contract at its initiation is

[A]Zero

answer

[A]Roller-coaster swap[B]Amortized swap[C]Amortizing swap[D]Circus swap

In a swap transaction where two fixed-floating currency swaps arecombined to form a fixed to fixed currency swap is known as

[D]Circus swap

answer

[A]Short underlying asset + long call = long put

[B]Short underlying asset + long put = long call

[C]Long underlying asset + short call = long put

[D]Short underlying asset + long put = short call

Which of the following equation is true?

[A]Short underlying asset + long call = long put

answer

[A]Risk of non-availability of a major raw material to a company making aluminum bars

[B]Death of the finance manager of a company providing financial services

[C]Unexpected entry of a multi-national company in the tea industry

Which of the following is an example of systematic risk?

[D]Reduction of tax rate by the government

answer

[A]The risk free rate is equal to the required rate of return on the security

[B]The security’s rate of return is more than the return on the market

portfolio[C]The security’s beta is less than one and

hence a conservative security[D]The security is to be bought immediately

If a security’s return is plotted above the security market line, then

[D]The security is to be bought immediately

answer

[A]Decrease in the term to maturity[B]Increase in the required rate of return on

maturity[C]Decrease in the discount on the bond on

issue[D]Increase in the premium on maturity of

the bond

Other things being equal, which of the following will cause an increasein the value of a bond?

[D]Increase in the premium on maturity of the bond

answer

[A]Going concern value[B]Market value[C]Book value[D]Replacement value

The amount that can be realized by a company if it sells its businessas an operating one is termed as

[A]Going concern value

answer

[A]Irrespective of the level of output, DOL of a company remains same

[B]DOL of a company is positive above the operating break-even point

[C]DOL of a company is positive below the operating break-even point

[D]DOL of a company is negative above the operating break-even point

Which of the following is true with regard to the degree of operatingleverage (DOL) for a company?

[B]DOL of a company is positive above the operating break-even point

answer

[A]Return on equity[B]Return on investment[C]Acid -test ratio[D]Debt-equity ratio

Which of the following is a liquidity ratio?

[C]Acid -test ratio

answer

[A]Increase the physical assets owned by the firm

[B]Increase the market value of the shares of the firm

[C]Increase the current assets of the firm[D]Increase the cash balance of the company

The objective of financial management to increase the wealth of theshareholders means to

[B]Increase the market value of the shares of the firm

answer

[A]Rs.89,910[B]Rs.1,34,400[C]Rs.1,43,340[D]Rs.1,51,980

Mr. Suresh deposited Rs.2,000 at the beginning of every month in abank for five years. If the interest rate is 9% p.a. compounded monthly,the accumulated amount he will get after 5 years is

[D]Rs.1,51,980

answer

[A]Discount and Finance House of India[B]SBI Mutual Fund[C]State Bank of India[D]Securities Trading Corporation of India

Which of the following players cannot act as a borrower in the callmoney market?

[B]SBI Mutual Fund

answer

[A]Rs.40,000[B]Rs.50,000[C]Rs.60,000[D]Rs.1,20,000

Consider the following information regarding Satish Ltd. :Annual cost of sales : Rs.36,00,000Opening stock of finished goods : Rs.50,000Finished goods storage period : 5 daysAssuming 360 days in a year, the closing stock of finished goods is

[B]Rs.50,000

answer

[A]Sell US $ spot and buy Euro 3-month forward

[B]Buy US $ spot and sell Euro 3-month forward

[C]Sell US $ 3-month forward[D]Buy Euro 3-month forward

Suppose that a speculator anticipates depreciation of US $ againstEuro 3-months from now from the current 3 months forward rate. To makeprofit, the speculator should

[D]Buy Euro 3-month forward

answer

logos

Australia and New Zealand Banking Group

J.P Morgan

Allianz

DBS Bank Ltd

Federal Bank

IDENTIFY THE LOGO

ANSWER

MASTEK

ANSWER

DOLBY DIGITAL

ANSWER

CENTRAL BANK OF INDIA

ANSWER

IRCTC

Northern Trust