1. If an IPO is under-priced, which of the following can be considered as consequences/implications of the same? I. The company looses the opportunity to raise more funds II. Under pricing would give less returns to the investor III. Under pricing results in lower net worth on an increased equity.
A. Only (II) above
B. Only (III) above
C. Both (I) and (III) above
D. Both (II) and (III) above all
2. A letter of credit (LC) wherein the credit available to the customer gets reinstated after the bill is paid is known as?
A. Back to back LC
B. Red clause LC
C. Back to front LC
D. Revolving LC
3. The base rate is set by?
A. Individual banks
B. Government of India
C. RBI in consultation with Government
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4. Large corporate customers demand?
A. Short term products from their banks irrespective of the cost at their times of need.
B. Increasingly sophisticated products from their banks at the lowest possible cost.
C. Disintegrated financial products from their banks at the lowest possible cost.
D. Basic banking products from their banks but with speed and efficiency.
5. Funded Services under corporate banking does not include?
A. Working Capital Finance
B. Bill Discounting
C. Export Credit
D. Letters of Credit
6. Which of the following is not directly involved in rural lending?
B. Commercial banks
7. PACSs provide?
A. Mainly long term credit
B. Mainly short term credit
C. Both long term and short term credit
D. Do not provide any credit
8. Six private sector banks were nationalised on April 15, 1980, whose reserves were more than?
A. 100 Crores
B. 200 Crores
C. 300 Crores
D. 400 Crores
9. Security printing press was established in 1982 at?
10. Banks insist on providing finance for those projects or activities only which they consider to be viable. What is meant by viability of project?
A. Capacity to generate cash, adequate to service debt and surplus for borrower’s personal requirement.
B. Generation of cash to meet debt liability
C. Generation of profits.
D. Generation of gross profits