1.

Preferred stock dividends are paid

a)
b)
c)
d)
e)

Each year on a contractual basis, but before common dividends

After common dividends are paid.
Before interest is paid on debt.
If declared by the board of directors.
After both interest and common dividends are paid

Ans is d
2. Collateral is
a) A form of loan
b) Asset put up as security
Ans is b
3. Which is not a banking account?
a)Money market deposits
b) Certificate of deposit
c) Demat account
d) Checking account
Ans is c
4) Expansion for CPI
Ans is consumer price indices
5) Risk averse
Ans is avoiding risk /taking less risk
6) Which term is not include in banking
a) Investment banking
b) Public banking
c) Private banking
d) Retail banking
Ans is b
7) Capital adequacy ratio refers to
a) Amount of banks capital expressed as percentage of the risk weighted credit
exposure
b) Amount of banks capital expressed as percentage of the risk weighted credit
exposure & operational risk
c) Amount of banks capital expressed as percentage of the risk weighted credit
exposure, & market risk
d) Amount of banks capital expressed as percentage of the risk weighted credit
exposure, operational risk & market risk
e) None of the listed options

Ans is d
8) Basel capital accord was instituted to coordinate global regulatory efforts to
institute _______________ capital requirements to eliminate the threat posed by
_____________
Ans is Minimum; undercapitalized banks
9) Does Asset Allocation help reduce the investment risk?
a)
b)
c)
d)

yes
No - It only maximizes return
It increases risk
It increases choice No impact on risk

Ans is a
10) Dow Jones Industrial Average (DJIA) and Bombay Stock Exchange Index
(Sensex) are
Ans is price weighted index
11) Bill of Lading is
a) a contract between Importer and Exporter for transportation of goods
b) a contract between a carrier and a shipper for the transportation of goods
Ans is b
12) The money multiplier is 1 if the cash reserve is
a) less than 100%
b) more than 100%
c) none of the options
d) zero
e) 100
13) Currency reflects
a) Economy of the country
b) gdp of the country
c) Political situation of the country
d) cpi of the country
I think the ans is a
14) Is the interest earned by simple interest and compound interest is same say true or
false
The ans is false
15 In the simple interest the interest is also accumulate for the next year calculation
Ans is false

16 Choice quote is
Ans is the bid is equal to ask
17 Assume that you have a holding in IBM Stock worth 100000. You have calculated the
standard deviation (SD) of change over ten day in IBM
Ans We have to take the square root for 10 and we have to multiply with 100000.
18. The fastest method for calculating risk is
Ans: variance covariance method.
19. Monte-Carlo Simulation
It is a simulation technique.
20. Asset/Liability Analysis,Asset Allocation, Asset Manager Solutions ,Cash Projection,
Compliance Reporting, Securities Lending, Fund Administration , Information ,Products &
Services ,Investment Manager Universe ,Local Fund Servicing
These terms are related with
Ans is Investment Management
21 Buy/Sell Quantity Sock Price
10:00 Buy 100 IBM $10.00
10:30 Sell 50 IBM $10.50
11:00 Buy 100 MSFT $20.00
11:30 Sell 20 IBM $11.00
12:00 Sell 10 MSFT $20.50
3:30 Sell 30 IBM $9.00
What the broker purchase and what he sold is equal
Say yes or no
22. Buy/Sell Quantity Sock Price
10:00 Buy 100 IBM $10.00
10:30 Sell 50 IBM $10.50
11:00 Buy 100 MSFT $20.00
11:30 Sell 20 IBM $11.00
12:00 Sell 10 MSFT $20.50
3:30 Sell 30 IBM $9.00
Calculate the net profit and gross profit.
23. Expansion for OTC
Ans is over the counter.
24. Defined contribution plans have gained popularity because
Ans: employers have begun to ask their employees to share responsibility for their retirement.
25. Monetary losses resulting from inadequate or failed internal processes, people, and systems
or from external events. The events characterize the inherent risks in doing business.This risk is
known as
Ans is operational risk
26 IRD in check 21 act is
Ans is Image Replacement Document

27 EMI is expansion for

Ans is Equatted monthly instalments
28 GDR is expansion for
29 largest part of the spread and is paid to the broker/dealer that
actually took the clients order is known as
Ans : Concession
29 share A is more volatile than share B The risk associated with Share A
Ans is more
30The total spread is 400000.The managers fee is 100000.The underwriters
allowance is
Ans is 400000-100000=300000