t9u20r5 Maximum : 100 markg Time : t hour and t6 minutes
I
1.-
The fund which do rrot have fixed date of redemption : (B) Diversified funde (A) Close ended funds
:
. (C)
2.
Credit rating of debt security is
(A) (C)
Both (A) and (B)
Open ended funds :
(B) Guaranteerepayment @) None of these
Merely opinion Poeitivesuggeetion
Whichof the following is not available in India?
(A) (C)
(B) @)
Commod.ity futures
Commodity options
In India, derivatives interest rate are regulated by
(A) (B) (C) @)
Index futures Index option
:
Secugities and exchange boaril of India
Forward market commission
Ministry of finance Reserve bank of India
Commercial paper are generallytssued at a price
(A)
Equal to face valrre
(C)
Equal to redemption value
:
(B) (E)
More thaa face value Lese than face value
Baged on the accounting profession, which of the following would be considered a cash flow item from an inveeting activity :
(A) (C)
Cash outflow to acquire ffxed assets
(B)
Cash inllow from dividend income
(D) Alloftheabove
Use of funds include a./an
(A) (C)
Cash inflow from interest income
:
Decrease in cash
(B)
Increase in fixed aseetg
Cash retund
(D)
Irrcreaee in any Uability
IP.r.O.l
Primary duty of a merchant banker is (A) Giving loans to clients
(C)
9.
11.
Working as a capital rnarket
Maintaining records of clients None of the above
(B) @)
Depreciation
Interest payment
Dividend Taxes
The most basic requirement for a firm's marketable securities
(A)
Marketabfity
(C)
Yield
Marketable securities are primarily
(A) (C) 12.
(B) (D)
Which of the following is not a cash outflow for the firm?
(A) (C) 10.
:
(B) (D)
Safety
(B) (D)
Short term equity securities
None of these
:
long term debt instruments Short-term debt instruments
The capital investment is one that
:
long term equity securities
:
(A) Applies only to investment in fixecl assets (B) Hag the prospects of short term benefits (C) Is only undertaken by large corporations (D) Has the prospects of long term benefits 13.
Asgets management company is formed
(A) (B) (C) (D)
t4,
:
To manage bank's assets
To manage mutual funds investments To construct infrastructure projects To run a stock exchange
Margin are imposed on options sellers to safeguard the interest of:
(A) (C)
Exchange
Buyers
(B) (D)
Brokers
All the
above
15. If stril
13U2015
(A)
Out of money
(C)
At-the money
(B) (D)
In-the money None of the above
A
16.
Which of the following ratios indicates the short term liquidity ofa business? (A) Inventory turnover ratio (B) Debt-equity ratio
(C)
I7.
Proprietary latio
Notionai cost is also known as
22.
Service cost centre
(D)
Production cost centre
(B)
Process account
to:
Material account Costing profit and loss account
@)
, Abnormal
(B) (D)
Rs. 40,000 Rs. 80,000
Marginal
(C)
Absorption
Ioss account
Rs. 1,00,000 Rs. 20,000
@) @)
Variable
Direct
The point at which joint products become separately identifiable is called Post separation point
Further processing stage
(B) @) (B) @)
Out of pocket cost Book cost
:
Split-off point Point of separation
Costs involve cash outlay or payment to other parties is called
:
Period cost
Urgent cost
Which of the following can improve break-even point?
(A) (C) A
Cost centre
(A)
(A) (C) 24.
(B)
Which of the following costing reduces the possibility of under pricing?
(A) (C) 23,
Opportunity cost
If the fixed cost is Rs. 20,000 and Profit-Volume (PD ratio is 50%, the break.even wiII be :
(A) (C) 2L.
Imputed cost
Profit centre
The value of abnormal loss is debited
(A) (C) 20.
(B) (D)
A power house which generates and supplies power is called:
(A) (C) 19.
Acid test ratio
:
(A) Variable cost (C) Out of pocket cost 18.
(D)
Increase in variable
cost
Increase in fixed cost
(B)
Increase in sale price
(D)
Increase in sales volume
131/2015 tP.r.o.I
25. Which one of the following Multiple costing is not used in : (B) Automobiles (A) Electronics
(C) 26.
(D)
Computers
Chemicals
The direct material usage budget and direct material purchases budget differ because of which of the following?
(A) A change in the level of finished goods stock (B) The level of material scrap forecast to occur (C) The level of efhciency of men or machinee (D) A planned changed in the level of material stock 27.
28.
A standard that is never altered once established is known as a/an
(A)
Basic standard
(C)
Attainablestandard
32,
Total Sales revenue
Variable cost
Profit
Fixed cost
Sales revenue
Contribution
= =
Total cost - Variable cost Fixed cost
(B) (D)
Estimated cost
One year.or less
(B)
One to two years
One to Five years
(D)
One to ten years
Planned cost Scheduled cost
Predicted cost
Operations budgets normally cover a period of:
(A) (C) 31.
Projected standard
Which of the following term is not used interchangeably with the word 'standard costs'?
(A) (C) 30,
Ideal standaril
Which of the following is true at break-even point?
(A) (B) (C) (D) 29,
(B) (D)
:
Difference between standard cost and revised standard cost
(A)
Revision variance
(C)
Yield variance
(B) (D)
:
Overhead variance Calendar variance
The difference between hours oaid and hours worked is known as
(A) (C) t3u20l.5
(B) (D)
Labour rate variance Net efEciency variance 6
:
Idle time variance Labour efficiency variance
A
33.
'Bird in hand' argument is given by: (A) Walker e nodel
(C) In
caee of uet income approach, the coet of
(A) (C) 35.
36.
37.
(D)
MMModel
equity is
:
(B) @)
Constant Increasing
Decreasing None of the above
(A)
Traditionalapproach
(B)' MMModel
(C)
Net income approach
@)
The base value of.the index of NIFTY ie
(A)
10
(c)
100
Cost ofcapital
Floatation cost
Net operating income approach
(B) 50 (D) 1000 :
(B) Cost of equity . @) Margrnal cost of capital
Dividend irrelevan@ argument of MM Model ig based on
If
(A)
Issue of bonug shares
(C)
Arbitraee
(B) @)
:
Issue of debenturee
Hedging
riskv caeh flows are recast in terms of their certainty equivalent, they shoulil
be
:
(A)
The required rate of return
(C)
The accounting rate of return
According to Walter, 100% dividend is payable in
(A)
Growth firm
(C)
Declining firm
(B) @)
A risk-free rate of return The conpany wide hurdle rate
:
(B) @)
Normal firm None of the above
NOI approach advocates that the degrce of debt financing is
A
:
:
Cost of issuing new ehares to the public is known as
discounted at
40.
Gordonis nodel
The personal leverage can replace corporate leverage is asoumed by
(A) (C) 38.
Residual theory
(B)
(A)
Relevant
(C)
May be irrelevant
(B) @)
:
Irrelevant May be relevant
tBu20t6 l?.r.o.l
42.
Cost of capital means
(A) (C) 43.
(C)
'
47'
Dividend None of the above
A proposal to purchase a computer system A proposal to replace a 2 years old company van with a new van A proposal by a retail food store to increase the number of cans of a particular tomato paste held in inventory
development programme manufacturer to develop an engine that would get 100 rniles per gallon
by a
car
Which of the following cost of capital requires tax adjustment? Cost of debentures Cost of equity shares
G) (D)
Cost of preference shares Cost of retained earnings
Which of the.following is not used in capital budgeting?
(A) (C) 46,
Floatation cost
(B) (D)
(D) A proposal for a-5 year research and
(A) (C) 45.
Required rate of return
Which of the following projects does not involve a capital budgeting decision?
(A) (B)
44.
:
Time value of money Cash flows
(B) (D)
Sensitivityanalysis Net assets method
In capital budgeting sunk cost is excluded because it is : (A) Not incremental (B) Not reversible (C) Involves small amount (D) All the above
Which of the following capital expenfiture planning and control techniques has been
criticised because it fails to consider investment profitability?
(A) Index of profitability technique @) Discounted pay back technique (C) Internal rate ofreturn technique @) Net present value technique 48.
The method of project selection which considers the time value of money in a capital budgeting decision ie accomplished by computing the
:
(A) Pay-back period @) Accounting rate of return on initial investment (C) (D) 131/2015
Accounting rate of return on average investment Discounted cash flow
A
49. A formal
legal commitment to extend credit up to some maximum amount over a Stated
period of time
(A) (C) 50.
:
ofcredit Revolving credit agreement Ietter
Line ofcredit Tiade credit
Which of these is not a component of the feasibility report?
(A)
(B) (D)
margin (C) Works cost 51.
(B) (D)
Profit
Overheads Pre-commissioning expenses
Arrange the following elernents of the project cycle in the right order (a) Project appraisal G) Feasibilityanalysis G) Negotiation (d) Project selection
(A)
a-b-c-d
(C)
b-a.d-c
:
(B) b-a-c-d (D) a-b-d-c
82.
Use of which one of the common investment appraisal methods directly promotes wealth maximisation? (B) internal rate of return (A) accounting rate ofreturn (D) payback period (C) net present value
53.
The maximum amount beyond which a company is not allowed to raise (B) Reserve capital (A) Issued capital
(C)
Subscribed
capital
(D)
:
Nominal capital
54.
The work defined at the lowest level of the breakdown structure to estimate as well as manage time and cost is called the : (B) Work package (A) Activity (D) Task (C) Cost account
55.
Which of the following is not a commonly used method of financial appraisal of strategy options?
(A) (C) 56.
A
return on capital net cash
flow
employed
(B) @)
break'even analysis pricg/earnings ratio
Which of the following is not one of the types of transactions that occur in the traditional foreigrr exchange market? (B) spot transactions (A) forwardtransactions (C) swap transactions @) virtualtransactions 131/2015
tP.r.o.l
57.
The presence of more fixed cost in the capital structure ofa firm indicates
' 58.
(A) (C)
(B) @)
Raw material Production labour
Bad-debt losses
Debt capacity
(B)
Debt-Service burden
Fixed charge burden
(D)
Adequacy capacity
Spot transaction
(C) Virtualtransaction
(B)
Currency transaction
(D)
Forward transaction
(B) (D)
Credit rating
-
Functions of factor exclude
(A) (C)
:
Creditadministration Credit financing
Another name for open-ended credit (A) A box of credit
(C) 63.
Depreciation
involve the exchange of currency the second day after the date on which the two traders aEree to the transaction.
(A) 61.
None of the above
The cash required during a specific period to meet interest expenses and principal payments is referred to as the :
(A) (C) 60.
Super leverage
Operating leverage
Which of the following costs would be considered a fixed cost?
(A) (C) 59.
(B) @)
Financial leverage
:
(A) (C)
:
(B) @)
Revolving credit
Uncollected cheques also referred
Credit recording
Convenience credit
Instalment credit
:
(B) (D)
Un presented cheques Outstandingcheques
Bounced cheques
Un credited cheques
Which of the following is a measure of debt serving capacity of a firrn?
(A) (C) 65.
(B) (D)
Current ratio Debtors turnover ratio
Acid-test ratio
Interest coverage ratio
Market in which funds are transferred from those who have excess funds available to those who have a shortaEe offunds are called? (A) Funds markets (B) Commodity markets (C) Derivative exchange markets (D) Financial markets
t31/2015
10
A
66.
Finance companies raise funds in the money market by selling: (A) Commercial paper
(B) Federal funds (C) Eurodollars (D) Negotiable certi-ficate
of deposits
equates the present value of the cash flow received from a debt instrument with its market price today is the : (B) Simple interest rate (A) Discount rate (D) ReaI interest rate (C) Yield to maturity
67. The interest rate that
68.
The riskiest capital market security is (A) Preferred stock
(C) 69.
If
a
(C) 70.
71.
(B) (D)
Treasury bonds
firm sells an option
(A)
:
73.
(B) There is a positive cash flow (D) Cash flow is not affected
There is a negative cash flow The hedge is avoided
Bonds with relatively low risk of default are called : (B) (A) Investment grade bond (D) (C) Junk bonds
4.
A
Zero coupon bonds
None of the above
The riskiness ofan assets return that results from interest rate changes is called: (B) Reinvestment risk (A) Coupon-rate risk
MNC rely mostly on (A) Currency hedges (C) Risk-taking
(D)
Interest
-
rate risk
to reduce transaction exposure. (B) Options
(D)
Forward hedges
The forward market is especially well"suited to offer hedging
(A) (C) 7
Corporate bonds
:
(C) Yield-to-maturityrisk
72.
Common stock
(B) (D)
Translation risk exposure Political risk exposure
:
Tlansactions risk exposure Taxation
The simplest hedging method, which involves the purchase or sale of foreign currency using a forward contact is the : (B) Symmetric hedge (A) Currency option (D) Derivative (C) Forward hedge 11
131/2015
lP.r.o.l
7
5.
The value of a derivative contract is ultimately determined bv : (A) The value of underlying assets (B) Securityregulation
(C) 76.
(D)
The bank of Canada
An option whose intrinsic value is calculated by comparing the strike price with the average spot price over the period of the option is a/an :
(A) American option (C) Barrier option 77.
The risk-free rate ofreturn
(B)
European option
(D)
Asian option
AII of the following are hedge 4gainst exihange rate risk
-
except
:
(A) Balancing monetary assets and liabilities (B) Foreign-currencySwaps (C) Use of spot market @) Adjustment of funds rommitments between countries 78.
As an option approaches its maturity date, its price will converge to (A) The time value of the option
(B) (O (D)
:
The price of the underlying asset
The market interest rate.
Its intrinsic value
79. An individual
selling a commodity or financial instrument can reduce risk by buying
a
optlon.
(A) (C)
Clearing house
80. An increase in the market optron to
82.
Put Sweep
price of the underlying assets will cause the price of a call
:
(A) (C) 81.
(B) (D)
CaIl
(B) (D)
Rise
Remain unchanged
Central Information Commission was formed on
(A)
2005
(c)
2004
Fall Change in an unpredictable manner
:
(B) 2006 (D) 2007
National Employment Guarantee Scheme inaugurated at : (A) Ramachandrapuram (B) Pune (C) Bundlapalli (D) Rangpur
131/2015
t2
A
83.
In which state of India Sivapuri National Park situated: (B) Madhya Pradesh (A) Andhra Pradesh
(C) 84.
E5.
86.
Maharashtra
(A)
Sahodaranayyappan
(B)
Chattambi Swamikal
(C)
Ayyankali
@)
Vaikunda Swamikal
Who is called Bharatha Kesari?
(A)
MannathuPadmanabhan
(C)
P. Krishnapillai
(B) K. I{elappan (D) C. Kesavan
The drama Puthiya Akasam Puthiya Bhoomi written by
C.N. Sreekandan Nair S.L. Puram Saclanandan
(B) (D)
:
N. Krishnapillai Thoppil Basi
Which female leader is known as Jowan of Arch of Kerala?
(A) (C) 88.
(D)
Sadhujana Paripalana Sangam was formed by:
(A) (O 87.
Karnataka
A.V. Kuttimalu Amma Anna Chandi
(B) (D)
ParvathiNenmenimangalam Akkamma Cheriyan
Who is regarded as Kerala Kalidasan?
(A) A.R. Raja Raja Varmma (B) Vallathole (C) Kerala Varmma Valiya Koyithampuran (D) N. Krishnapillai 89.
The first women judge in India
(A) (C)
Leela Seth
Fathima beevr
:
(B) (D)
Omanakunjamma Annachandy
The idea of constitutional amenclment of Indian Constitution taken from which constitution
(A) America (C) South Africa
:
(B) Soviet Union (D) Canade
The Indian President who proclaimed National Emergency in 1975?
(A) (C)
Dr. Radhakrishnan R.
Venkitta Raman
(B) @)
V.V. Gtui Fakrudheen Ali Ahmmad
l3l/2015 tP.r.o.l
Which article of Indian constitution deals about the compulsory and free education to children up to the age 14?
(A) (C)
93.
-
24
(B)
40
(D)
(B) (D)
LaI Bahadur Sastri
Gulsarilal Nanda
@) (D)
:
1950-January-26 1956-November-1
(B) (D)
Agamananda Swami
1928-September-20
(B)
1928-October-20
1929-September-20
(D)
1929-October-20
(B) (D)
KrishnanNambiadiri KarattGovindamenon
(B) (D)
20lo-July-15 20l0-Septenber-
(B) (D)
K.P. Sankaramenon
MannathPadmanabhan
(B) @)
Moulana Abdul Kalam Azad Vakkam Abdul Khader Moulavi
Theerthan Vail
KarattAchuthamenon Raman Pillai
The emblom of Indian Rupee accepted on
(A) (C) 99.
Morarji Desai Jawaharlal Nehru
Alathur Swami Sivanandayogi
The real name of Brahmananda Sivayogi:
(A) (C) 98.
44
Sree Narayana Guru died on:
(A) (C) 97.
45
Who give Kunchikanna the title 'Vagbadananda'?
(A) (C) 96.
-
The Indian National Flag accepted by Indian Constitutional Assembly on
(A) r947-JuIy-22 (C) 195O-January-24 95.
Article Article
The Indian Prime Minister who was died in a foreisn country?
(A) (C) 94.
Article Article
2010-June-15
20l0-August-15
The leader of Ezhava memorial
(A) (C)
:
:
G.P. Pillai
Dr. Palppu
100. The founder of the newspaper Swadeshabhimani
(A) (C)
r3Lt20t5
15
I(Ramakrishnapillai Muhammed Abdul Rahman
t4
:
A
