13112015

Maximum: 100 marks
Time: 1 hour and 15 minutes
1. The fund which do not have fixed date of redemption:

Close ended funds Diversified funds


Open ended funds Both and


2. Credit rating of debt security is

Merely opinion Guarantee repayment


Positive suggestion None of these


3. Which of the following is not available in India?

Commodity futures Index futures


Commodity options Index option


4. In India, derivatives interest rate are regulated by

Securities and exchange board of India


Forward market commission


Ministry of finance


Reserve bank ofIndia


5. Commercial paper are generally issued at a price:

Equal to face value More than face value


Equal to redemption value Less than face value


6. Based on the accounting profession, which of the following would be considered a cash flow item from an investing activity:

Cash outflow to acquire fixed assets Cash inflow from interest income


Cash inflow from dividend income All of the above


7. Use offunds include alan:

Decrease in cash Increase in fixed assets


Cash refund Increase in any liability


A 3
[P.T.a.]
8. Primary duty of a merchant banker is

Giving loans to clients Maintaining records of clients


Working as a capital market None of the above


9. Which of the following is not a cash outflow for the firm?

Depreciation Dividend


Interest payment Taxes


10. The most basic requirement for a firm's marketable securities:

Marketability Safety


Yield None of these


11. Marketable securities are primarily:

Long term debt instruments Short term equity securities


Short-term debt instruments Long term equity securities


12. The capital investment is one that:

Applies only to investment in fixed assets


Has the prospects of short term benefits


Is only undertaken by large corporations


Has the prospects oflong term benefits


13. Assets management company is formed:

To manage bank's assets


To manage mutual funds investments


To construct infrastructure projects


To run a stock exchange


14. Margin are imposed on options sellers to safeguard the interest of:

Exchange Brokers


Buyers All the above


15. Ifstrike price is more than the spot price of the assets, the call option is known:

Out of money In·the money


At·the money None of the above


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16. Which of the following ratios indicates the short term liquidity of a business?

Inventory turnover ratio Debt-equity ratio


Proprietary ratio Acid test ratio


17. Notional cost is also known as

Variable cost Imputed cost


Out of pocket cost Opportunity cost


18. A power house which generates and supplies power·is called:

Profit centre Cost centre


Service cost centre Production cost centre


19. The value of abnormal loss is debited to

Material account Process account


Costing profit and loss account Abnormal loss account


20. Ifthe fixed cost is Rs. 20,000 and Profit-Volume ratio is the break-even will be:

Rs.40,OOO Rs. 1,00,000


Rs. 80,000 Rs. 20,000


21. Which of the following costing reduces the possibility of under pricing?

Marginal VariablE


Absorption Direct


22. The point at which joint products become separately identifiable is called:

Post separation point Split-off point


Further processing stage Point of separation


23. Costs involve cash outlay or payment to other parties is called:

Out of pocket cost Period cost


Book cost Urgent cost


24. Which of the following can improve break-even point?

Increase in variable cost Increase in sale price


Increase ill fixed cost Increase in sales volume


A 5 13112015 [P.T.O.]


25. Which one of the following Multiple costing is not used in

Electronics Automobiles


Computers Chemicals


26. The direct material usage budget and direct material purchases budget differ because of which of the following?

A change in the level of finished goods stock


The level of material scrap forecast to occur


The level of efficiency of men or machines


A planned changed in the level of material stock


27. A standard that is never altered once established is known as alan:

Basic standard Ideal standard


Attainable standard Projected standard


28. Which of the following is true at break-even point?

Total Sales revenue Variable cost


Profit Fixed cost


Sales revenue Total cost -Variable cost


Contribution Fixed cost


29. Which of the following term is not used interchangeably with the word 'standard costs'?

Planned cost Predicted cost


Scheduled cost Estimated cost


30. Operations budgets normally cover a period of:

One year or less One to two years


One to Five years One to ten years


31. Difference between standard cost and revised standard cost:

Revision variance Overhead variance


Yield variance Calendar variance


32. The difference between hours paid and hours worked is known as
Labour rate variance Idle time variance
Net efficiency variance Labour efficiency variance 13112015 6 A
33. 'Bird in hand' argument is given by

Walker's model Gordon's model


Residual theory MMModel


34. In case of net income approach, the cost of equity is

Constant Decreasing


Increasing None of the above


35. The personal leverage can replace corporate leverage is assumed by

Traditional approach MM Model


Net income approach Net operating income approach


36. The base value of the index of NIFTY is
10 50
100 1000
37. Cost of issuing new shares to the public is known as:

Cost of capital Cost of equity


Floatation cost Marginal cost of capital


38. Dividend irrelevance argument ofMM Model is based on:

Issue of bonus shares Issue of debentures


Arbitrage CD) Hedging


39. If risky cash flows are recast in terms of their certainty equivalent, they should be discounted at

The required rate of return A risk-free rate of return


The accounting rate of return CD) The company wide hurdle rate


40. According to Walter, 100% dividend is payable in

Growth firm Normal firm


Declining firm None of the above


41. NOI approach advocates that the degree of debt financing is

Relevant Irrelevant


May be irrelevant May be relevant


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[P.T.a.)
42. Cost of capital means:

Required rate of return Dividend


Floatation cost None of the above


43. Which of the following projects does not involve a capital budgeting decision?

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


A proposal for a-S year research and development programme by a car manufacturer to develop an engine that would get 100 miles per gallon


44. Which of the following cost of capital requires tax adjustment?

Cost of debentures Cost of preference shares


Cost of equity shares Cost of retained earnings


45. Which of the.following is not used in capital budgeting?

Time value of money Sensitivity analysis


Cash flows Net assets method


46. In capital budgeting sunk cost is excluded because it is

Not incremental Not reversible


Involves small amount All the above


47. Which of the following capital expenditure planning and control techniques has been criticised because it fails to consider investment profitability?

Index of profitability technique


Discounted pay back technique


Internal rate of return technique


Net present value technique


48. The method of project selection which considers the time value of money 10 a capital budgeting decision is accomplished by computing the:

Pay-back period


Accounting rate of return on initial investment


Accounting rate of return on average investment


Discounted cash flow


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49. A formal legal commitment to extend credit up to some maximum amount over a stated period of time:

Letter of credit Line of credit


Revolving credit agreement Trade credit


50. Which of these is not a component of the feasibility report?

Profit margin Overheads


Works cost Pre-commissioning expenses


51. Arrange the following elements of the project cycle in the right order:

Project appraisal


Feasibility analysis


Negotiation


Project selection


boa-cod


boa-doc




52. Use of which one of the common investment appraisal methods directly promotes wealth maximisation?

accounting rate of return internal rate ofreturn


net present value payback period


53. The maximum amount beyond which a company is not allowed to raise:

Issued capital Reserve capital


Subscribed capital 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:

Activity Work package


Cost account Task


55. Which of the following is not a commonly used method of financial appraisal of strategy options?

return on capital employed break-even analysis


net cash flow price/earnings ratio


56. Which of the following is not one of the types of transactions that occur in the traditional foreign exchange market?

forward transactions spot transactions


swap transactions virtual transactions


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57. The presence of more fixed cost in the capital structure of a firm indicates:

Financialleverage Operating leverage


Super leverage None of the above


58. Which of the following costs would be considered a fixed cost?

Raw material Depreciation


Production labour Bad-debt losses


59. The cash required during a specific period to meet interest expenses and principal payments is referred to as the:

Debt capacity Debt·Service burden


Fixed charge burden Adequacy capacity


60. involve the exchange of currency the second day after the date on which the two traders agree to the transaction.

Spot transaction Currency transaction


Virtual transaction Forward transaction


61. Functions of factor exclude:

Credit administration Credit rating


Credit financing Credit recording


62. Another name for open-ended credit:

A box of credit Convenience credit


Revolving credit Instalment credit


63. Uncollected cheques also referred:

Un presented cheques Bounced cheques


Outstanding cheques Un credited cheques


64. Which of the following is a measure of debt serving capacity of a firm?

Current ratio Acid-test ratio


Debtors turnover ratio Interest coverage ratio


65. Market in which funds are transferred from those who have excess funds available to those who have a shortage offunds are called?

Funds markets Commodity markets


Derivative exchange markets Financial markets


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66. Finance companies raise funds in the money market by selling:

Commercial paper


Federal funds


Eurodollars


Negotiable certificate of deposits


67. The interest rate that equates the present value of the cash flow received from a debt instrument with its market price today is the:

Discount rate Simple interest rate


Yield to maturity Real interest rate


68. The riskiest capital market security is

Preferred stock Common stock


Treasury bonds Corporate bonds


69. Ifa firm sells an option:

There is a negative cash flow There is a positive cash flow


The hedge is avoided Cash flow is not affected


70. Bonds with relatively low risk of default are called:

Investment grade bond Zero coupon bonds


Junk bonds None of the above


71. The riskiness of an assets return that results from interest rate changes is called:

Coupon-rate risk Reinvestment risk


Yield-to-maturity risk Interest -rate risk


72. MNC rely mostly reduce transaction exposure.

Currency hedges Options


Risk-taking CD) Forward hedges


73. The forward market is especially well-suited to offer hedging:

Translation risk exposure Transactions risk exposure


Political risk exposure Taxation


74. The simplest hedging method, which involves the purchase or sale offoreign currency using a forward contact is the:

Currency option Symmetric hedge


Forward hedge Derivative


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75. The value of a derivative contract is ultimately determined by

The value of underlying assets Security regulation


The bank of Can'ada The risk·free rate of return


76. An option whose intrinsic value is calculated by comparing the strike price with the average spot price over the period of the option is

American option European option


Barrier option Asian option


77. All of the following are hedge against exchange rate risk -except:

Balancing monetary assets and liabilities


Foreign-currency Swaps


Use of spot market


Adjustment of funds 'commitments between countries


78. As an option approaches its maturity date, its price will converge'to

The time value of the option


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

Call Put


Clearing house Sweep


80. An increase in the market price of the underlying assets will cause the Pl'lce of a call option to:

Rise Fall


Remain unchanged


Change in an unpredictable manner
81. Central Information Commission was formed on

2005 2006


2004 2007


82.
National Employment Guarantee Scheme inaugurated at

83.
In which state ofIndia Sivapuri National Park situated:


Andhra Pradesh Madhya Pradesh


Karnataka Maharashtra



84.
Sadhujana Paripalana Sangam was formed by


Sahodaranayyappan Chattambi Swamikal


Ayyankali Vaikunda Swamikal



85.
Who is called Bharatha Kesari?


Mannathu Padmanabhan K. Kelappan


P. Krishnapillai C. Kesavan



86.
The drama Puthiya Akasam Puthiya Bhoomi written by


C.N. Sreekandan Nair N. Krishnapillai


S.L. Puram Sadanandan Thoppil Basi



87.
Which female leader is known as Jowan of Arch of Kerala?


A.V. Kuttimalu Amma Parvathi Nenmenimangalam


Anna Chandi Akkamma Cheriyan



88.
Who'is regarded as Kerala Kalidasan?


A.R. Raja Raja Varmma


Vallathole


Kerala Varmma Valiya Koyithampuran


N. Krishnapillai



89.
The first women judge in India:


Leela Seth Omanakunjamma


Fathima beevi Annachandy



90.
The idea of constitutional amendment of Indian Constitution taken from which constitution:


America Soviet Union


South Africa Canad.a



91.
The Indian President who proclaimed National Emergency in 1975?


Dr. Radhakrishnan V.V. Giri


R. Venkitta Raman Fakrudheen Ali Ahmmad




Ramachandrapuram Pune
Bundlapalli Rangpur
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92. Which article of Indian constitution deals about the compulsory and free education to children up to the age 14?

Article -24 Article -45


Article -40 Article -44


93. The Indian Prime Minister who was died in a foreign country?

Lal Bahadur Sastri Morarji Desai


Gulsarilal Nanda Jawaharlal Nehru


94. The Indian National Flag accepted by Indian Constitutional Assembly on:

1947-July-22 1950-January-26


1950-January-24 1956-November-1


95. Who give Kunchikanna the title 'Vagbadananda'?

Ananda Theerthan Swami Sivanandayogi


Vaikunda Swamikal Agamananda Swami


96. Sree Narayana Guru died on

1928-September-20 1928-0ctober-20


1929-September-20 1929-0ctober-20


97. The real name of Brahmananda Sivayogi

Karatt Achuthamenon Krishnan Nambiadiri


Raman Pillai Karatt Govindamenon


98. The emblom of Indian Rupee accepted on

201O-June-15 201O-July-15


201O-August-15 2010·September-15


99. The leader of Ezhava memorial

G.P. Pillai K.P. Sankaramenon


Dr. Palppu Mannath Padmanabhan


100. The founder of the newspaper Swadeshabhimani

K. Ramakrishnapillai Moulana Abdul Kalam Azad


Muhammed Abdul Rahman Vakkam Abdul Khader Moulavi


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