JAIIB-IE&IFS – Mock Test-5

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1. 
As per Accounting Standard Ind AS 116, the lease can be classified in two categories 1) operating lease 2) ____ lease?

2. 
The frequency with which one unit of currency is used on domestically produced goods and services, in a specific time period is called?

3. 
Grants given by Govt. of India to a foreign govt. is classified as___ in the Central Govt. budget:

4. 
Under factoring arrangement, as soon as the invoice is submitted by the seller to the factor, the factor will normally pay what per cent of invoice to the seller immediately?

5. 
As per Section 7(2) of Banking Regulation Act 1949, which of the following, for the purpose of carrying on any business, cannot use as part of its or his name any of the words “bank”, “banking” or “banking company”? 1) A firm, 2) an individual 3) group of individuals 4) a society?

6. 
Which are the common points that are part of deal negotiation, in venture capital financing? 1) amount of investment, 2) percentage of profit for both the parties, 3) rights of the venture capitalist and entrepreneur

7. 
Which of the following are simple techniques for transferring credit-risk 1 financial guarantees, 2 collateral security 3 credit insurance

8. 
According to Classical Theory of Interest, the rate of interest is determined by which real factors?

9. 
Producers are compelled to reduce prices so that they can find money to meet their obligations and consumers, who expect a still further decline in prices, postpone their consumption. This is a feature of which business phase?

10. 
To mobilise deposits and to step up lending to weaker sections of the economy which scheme was launched by RBI in 1969?

11. 
The financial markets provide an opportunity to the investors to sell their financial instruments at their fair value prevailing in the market at any time, during the working hours of the market. This function of financial markets is known as?

12. 
Given hereunder are some characteristics of derivative. Which of these are correct? 1 Their value changes in response to the change in a specified 'underlying' asset 2 Derivatives have the characteristics of high leverage 3 They require high initial net investment when compared to other types of contracts having a similar response to changes 4 Derivatives have the characteristics of being complex in their pricing and trading mechanism.

13. 
GDP of a country may be calculated in three ways: 1) From a production standpoint; 2) ______; 3) final utilisation.

14. 
The long-term investment in business, which carries very high risk but has potential for significant growth and financial returns, is called?

15. 
Read the statements below regarding financial instruments being on asset side or liability side and find out which of these are True? 1 investment are on the asset side of the balance sheet 2 insurance policies issued are on liability side of the balance sheet 3 funds received from customers are on assets side of balance sheet 4 contribution received for building up a corpus for payment of pension is on liability side of balance sheet.

16. 
Portion of Income from Personal Income available for Individuals for actual consumption is called?

17. 
Read the statements below regarding distinction between CRR and SLR and find out which are True and False? 1 Legal provisions for CRR are as per BR Act and for SLR as per RBI Act 2 Through CRR, monetary stability is managed. SLR provides leverage for credit expansion 3 CRR balance is maintained with RBI as cash. SLR investments are in the form of liquid assets 4 On CRR balances, banks do not earn any interest. On SLR investments banks earn interest.

18. 
Which of the following is part of early-stage financing?

19. 
Which of the following are the situations under which a lease is normally classified as a finance lease? 1 The ownership of the asset is transferred to the lessee by the end of the lease term. 2 The lease term is for the major part of the economic life of the asset. 3 The leased asset is of such a specialised nature that it can be used only by the lessee. 4 The lessee has the right to continue the lease for a secondary period at a rent which is substantially lower than market rent.

20. 
During the liberalization era, to reduce the settlement risk in respect of securities transactions, the settlement cycle period was reduced. Presently this period has been introduced as?

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