Set 1

Q. As per guidelines of SEBI, a merchant banker has to complete the

whole process of issue of shares in
(a) 60 days
(b) 70 days
(c) 80 days
(d) none of the above

Q. For managing a new issue of shares of Rs. 100 Crores , number
of Merchant Banks may go up to
(a) 2
(b) 3
(c) 4
(d) 5

Q. Which of the following loan is highly secured
(a) Mortgage
(b) Cash credit
(c) Overdraft
(d) Education loan

Q. Present rate of CRR is
(a) 5%
(b) 6%
(c) - 4.75%
(d) - 5.5%




Q. In Indian Financial system, banks are part of
(a) Financial Market
(b) Financial Inter media vies
(c) Regulatory bodies
(d) Others.

Q. A Treasury bill is issued by
(a) Govt.
(b) RBI
(c) Commercial Bank
(d) Development Bank.

Q. Call money market deals with borrowing and lending of money
for short period by
(a) RBI
(b) Banks
(c) Development Banks
(d) all of the above

Q. Money Market deals with borrowing & lending of funds for
(a) Short term
(b) Medium term
(c) Long term
(d) all of the above

Q. Which of the following services are fund based
(a) locker facility
(b) Cash Credit,
(c) Project preparation
(d) Consultancy

Q. Which of the following services are fee based
(a) Underwriting
(b) Issue of DD,
(c) Credit Card
(d) Education loan.

Set 2
Q. Highest return is available on investment in
(a) Shares
(b) Debentures
(c) Bonds
(d) Mutual Fund

Q. For managing receivables of Rs. 20 lakhs and converting them in
to cash, which option may be adopted
(a) Forfeiting
(b) Factoring
(c) Securitisation
(d) none of the above

Q. In which case ownership is immediately transferred in favor of
user/purchaser
(a) Lease
(b) Higher purchases
(c) Installment Sale
(d) none of the above


Q. What is the minimum net worth condition for a merchant banker
(a) Rs. 10 crores
(b) Rs. 5 crores
(c) Rs. 1 crore
(d) Rs. 100 crores

Q. What is the minimum underwriting obligation for a merchant
banker as lead manager of the total issue
(a) 10%
(b) 5%
(c) 15%
(d) 20%

Q. Most common way of raising equity is through
(a) Rights issue
(b) Private Placements
(c) Public issue
(d) none of the above

Q. Which is the most common risk faced by a lender
(a) Market risk
(b) Interest risk
(c) Credit risk
(d) liquidity risk