Open Market Operations is an important tool for central banks in ___________.

A. bullish equity market conditions

B. bearish equity market conditions

C. countries where debt market is developed

D. countries where debt market is under-developed

Which of the following is the third stage of the economic integration?

A. Free Trade Areas

B. Common Markets

C. Custom Union

D. Economic and Monetary Union

Which of the following is false with respect to internal rate of return?

A. The internal rate of return (IRR) is a capital budgeting method used by firms to decide whether they should make long-term investments.

B. The IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.

C. IRR is defined as any discount rate that results in a positive net present value (present value of cash flows- initial investment) of zero of a series of cash flows.

D. In general, if the IRR is greater than the project’s cost of capital or hurdle rate, the project will not be accepted at any cost.

Share reflects a contribution in ownership of the company

A. True

B. False

According to the Gordon model, the discount rate used by the investors exhibits what type of relationship with the retention rate?

A. A directly proportional

B. An inversely proportional

C. No relationship at all

D. Option A & B both

As additional securities are added to a portfolio, total risk will generally ________ at a _________ rate.

A. rise; decreasing

B. rise; increasing

C. fall; decreasing

D. fall; increasing

Which of the following is true for written down value method of calculating depreciation?

A. The depreciation charge remains uniform throughout the year.

B. Depreciation charged in initial years is less than straight line method.

C. The depreciation charge reduces throughout the life of the asset.

D. None of the above

What is the interest rate corresponding to a discount rate of 10%?

A. 11.11%

B. 9.09%

C. 11.15%

D. 9.15%

What would be the tax liability if tea and snacks are provided in the office after office hours?

A. Nil

B. Nil, if it is uptoRs. 50 per meal

C. Actual amount spent by the employer

D. Nil, if it is upto Rs. 75 per meal

“Income rule” in Insurance advocates

A. Cover of at least 8 - 10 times of one’s gross annual income

B. Cover of at least 5- 6 times of one’s gross annual income

C. Cover of at least 4-5 times of one’s gross annual income

D. Cover of at least 10 - 12 times of one’s gross annual income

Wealth Conservation is _____________

A. Ways to maximize tax efficiency of current assets and cash flows while achieving capital growth and preservation goals

B. Using insurance to ensure wealth is protected

C. Legally structuring the future disposition of current assets to minimize the benefits to chosen beneficiaries

D. None of the above

BCSBI Stands for

A. Banking Codes and Standard Board of India

B. Banking Credit and Standard Board of India

C. Banking Codes and Service Board of India

D. Banking Credit and Service Board of India