What is Market Risk Premium?

A. It is premium available in the market.

B. It is the market risk measured by premium paid

C. It is the difference between the average return on the portfolio and average risk free rate.

D. Any of these

Deposit insurance covers _______.

A. Savings

B. Current

C. Term

D. All of the above

Dividends received from investment would be classified as:

A. Operating cash flow

B. Investing cash flow

C. Financing cash flow

D. No cash flow impact

Fiscal Policy controls.....

A. Government spending

B. Revenue raising

C. Both of the above

D. None of the above

If everyone is forced to pay an extra Rs 1000 in taxes each year, "the" multiplier

A. Is unchanged and income falls

B. Becomes smaller and income falls

C. Becomes larger and income falls

D. becomes larger and income rises

__________ records net change in ownership of foreign assets

A. Capital Account

B. Current Account

C. Official Reserve Account

D. Balance of Payments

"A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "

A. "Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower."

B. Bank cannot sell the underlying security because its value is higher than loan.

C. "Bank can retain the entire Rs. 60,000"

D. "The excess of Rs. 10,000 has to be shared equally between the bank and the borrower."

Cash Flow is a tool that is more useful for

A. Short period financial analysis

B. Long period financial analysis

C. It is period agnostic

D. None of the above

“Contango” is

A. Forward price is lower than expected future spot price

B. Forward price is higher than expected future spot price

C. Forward price is at the same price level as that of expected future spot price

D. None of the above

The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:

A. 1/3rd of such pension subject to maximum of Rs. 20,000

B. 1/3rd of such pension or Rs. 15,000 whichever is less

C. 1/3rd of such pension or Rs. 12,000 whichever is less

D. 1/3rd of such pension or Rs. 12,500 whichever is less

The following is not ‘plant’ u/s 43(3) of the Income-Tax Act, 1961

A. Books

B. Know-how

C. Road in the factory building

D. Electrical fittings

………………………arises by operation of law eg trust created under MWP Act

A. Express trust

B. Implied trust

C. Pre-category trust

D. Constructive trust