What is the most essential characteristic to be in existence at the stage of establishing client relationship?

A. Collection of personal details

B. Establishing trust and confidence

C. Data gathering from the client

D. Providing the client with an healthy atmosphere

A type of lease where there is no payment schedule and penalty for a set period of lines.

A. True lease

B. Sub lease

C. Operating lease

D. Skip lease

A fraud is discovered with respect to an loan that has turned NPA. When is the earliest that it can be treated as a doubtful asset?

A. Immediately

B. Has remained sub-standard for upto 2 quarters

C. Has remained NPA for upto 1 quarter

D. Has remained NPA for upto 1 year

In marine insurance claims, insurable interest must shown to exist at the time of

A. loss

B. contract

C. both a and b above

D. none of the above

Scholarship received by a student was Rs. 2,000 per month. He spends Rs. 15,000 for meeting the cost of education during the year. The treatment for the balance amount Rs. 9,000 is:

A. Taxable

B. A casual income

C. Exempt

D. None of the above

What do you mean by ‘Wadiah’

A. Safe keeping

B. Sale

C. Profit sharing

D. Leasing

_______ prospectus were issued in order to test the market before finalizing issue size/ price

A. Deemed

B. Shelf

C. Red herring

D. None of the above

A Bank is under a statutory obligations to honor its consumer’s Cheque vide

A. Section 10 of banking regulation act 1949

B. Section 3 of the RBI act 1934

C. Section 31 in the Negotiable Instruments Act, 1881

D. All of the above

General Insurance business was established in India in

A. 1818

B. 1938

C. 1912

D. 1850

Under which type of Mortgage, transfer of property takes place:

A. English Mortgage

B. Simple Mortgage

C. Usufructuary Mortgage

D. Anomalous Mortgage

If an investor is bearish on a share, buying a put is usually better then selling short because:

A. The holder’s losses can be no more that the put premium if the share price rises, but the short seller’s losses could be significant in this situation.

B. The short sale will become worthless after a short period of time put will not become worthless.

C. The short seller must pay any dividends received on security, the short seller borrowed.

D. A and C

According to the capital asset pricing model, fairly priced securities have __________.

A. Negative betas

B. Positive alphas

C. Positive betas

D. Zero alphas