Legal Aspects of Finance - 27

Legal Aspects of Finance - 27


Multiple Choice Multiple Answer
Question Agricultural Finance Consultancy Ltd(AFC) activities cover :-
Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning


Multiple Choice Multiple Answer
Question Duties of an International Banking unit cover :-
Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
of Credit


Select The Blank
Question The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank

True/False
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False


True/False
Question NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Correct Answer False


Multiple Choice Single Answer
Question PFC is committed to the integrated development of :-
Correct Answer Power


True/False
Question NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Match The Following
Question- Correct Answer
Insurance of all employees of a Firm-

-Group Insurance

Premium Throughout Life -Whole Life

Fixed Period Insurance- Endowment
Insurance of ocean Cargo- Marine Insurance

Select The Blank
Question DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments


True/False
Question Mortgage Loans are loans against property.
Correct Answer True

Select The Blank
Question An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer

Multiple Choice Single Answer
Question Liabilities of Insurance Cos are mostly :-
Correct Answer Long term


Select The Blank
Question As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0


Multiple Choice Single Answer
Question Bills Rediscounting Scheme of IDBI was introduced in the year :-
Correct Answer 1965

Multiple Choice Single Answer
Question DFHI was incorporated under the :-
Correct Answer Companies Act, 1956

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets

Multiple Choice Single Answer
Question The first development Bank of India, established in 1948 was :-
Correct Answer IFCI

True/False
Question Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation

True/False
Question SCICI is a member of the OTCEI.
Correct Answer True

Select The Blank
Question The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.

Multiple Choice Single Answer
Question IRBI was set up with a focus on :-
Correct Answer Sick Units

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year

Multiple Choice Multiple Answer
Question Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

True/False
Question Banks lend to corporates directly.
Correct Answer True


True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True

Multiple Choice Single Answer
Question Treasury Bills are issued by the :-
Correct Answer RBI


Multiple Choice Single Answer
Question Account where lump sum investment is made for specific period
is :-
Correct Answer Term Deposit account

Multiple Choice Single Answer
Question The apex institution in the field of foreign trade in India is :-
Correct Answer EXIM Bank


Multiple Choice Multiple Answer
Question Basic Life insurance policies include :-
Correct Answer Term insurance , Annuity contracts , Pension plans

Select The Blank
Question In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI

Multiple Choice Multiple Answer
Question IIBI (formerly known as IRBI )undertakes :-
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
Consultancy & managerial services

Select The Blank
Question Syndication of Loans Globally does not involve any funds as it is
________ activity.
Correct Answer Non-fund based

Multiple Choice Multiple Answer
Question Mutual fund has main entities like :-
Correct Answer Sponsor , Trust , Asset Management company

Select The Blank
Question ________ is merely an asset created out of book entries.
Correct Answer SDR


Multiple Choice Multiple Answer
Question SFCs provide finance to :-
Correct Answer Corporates , Partnerships , Proprietary firms

Multiple Choice Single Answer
Question The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking


Select The Blank
Question The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business

Multiple Choice Multiple Answer
Question Credit Information report is also known as :-
Correct Answer Credit report , Banker's report , Confidential report

Match The Following
Question -Correct Answer
Inter Bank- Call Money
Markets BRs,
Money Market Instuments- CP, CD ,T- Bills
Capital Market
Instruments

Debt Market Instruments -GOI Securities ,

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income
groups.
Correct Answer Weaker sections


True/False
Question Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Correct Answer False

Multiple Choice Multiple Answer
Question The financial Assistance provided by the IMF enables member
countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Select The Blank
Question The repayment holiday period is also known as ________
period.
Correct Answer Moratorium

Multiple Choice Single Answer
Question A non-scheduled bank does not deal in :-
Correct Answer Foreign Exchange

Multiple Choice Multiple Answer
Question Prominent Institutional Investors are :-
Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Legal Aspects of Finance - 26
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Every company has to inform ROC about the place where it keeps books of account.
Correct Answer False


Multiple Choice Multiple Answer
Question A person can not be appointed as director of the company if :-
Correct Answer He is found to be of unsound mind ,
He is declared as an insolvent , He has not taken qualification shares

Select The Blank
Question A member shall have right to apply for operations and mismanagement of the company provided application is made by members not less than ________ or by the members
holding not less than one tenth of total number of shares in the share capital of the company.
Correct Answer 100


Multiple Choice Single Answer
Question If there is any delay in filing Form-8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :-
Correct Answer Company Law Board

Select The Blank
Question An auditor appointed in a ________ vacancy shall hold office until the conclusion of next annual general meeting.
Correct Answer Casual


Multiple Choice Single Answer
Question Which report is received by the shareholders annually ?
Correct Answer Directors report

Multiple Choice Multiple Answer
Question Following Resolutions must be passed by Postal Ballot :-
Correct Answer Alteration in Object Clause , Buyback
of own shares , Variation in rights attached to class of shares

True/False
Question No additional fees is payable on increased authorised capital since already paid on original authorised capital.
Correct Answer False


Multiple Choice Multiple Answer
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies, Accounting standards

Match The Following
Question -Correct Answer
allocable surplus 67% surplus in 67% surplus in- the accounting year
salary does not include
travelling
concession
appropriate
government
public sector
establishment
establishment
owned by
government
employee
interim and final
determination of
an industrial
dispute
award does not include
travelling
concession

Multiple Choice Single Answer
Question Proxy form generally should be :-
Correct Answer Duly stamped and signed by all the
joint-holders

Multiple Choice Single Answer
Question Maturity period for USD 5 million
scheme is :-
Correct Answer Three years


Multiple Choice Multiple Answer
Question Describe in brief what does the term
wages include?
Correct Answer Remuneration under any award ,
Settlement between the parties or
order of court , Overtime

Select The Blank
Question ________shall certify that they have
reviewed the balance sheet and
profit and loss account.
Correct Answer CEO


Multiple Choice Single Answer
Question Company can increase its maximum
number of directors, for which
application is required to be made in
:-
Correct Answer Form no 24

Multiple Choice Multiple Answer
Question Board of directors have to take
consent of general meeting for :-
Correct Answer Sale, lease or dispose of company's
property , Give time to repayment of
debt due by director , Contribute to
charitable funds exceeding Rs
50000/- or 5% of average net profits

True/False
Question A piece rated worker is entitled to
bonus.
Correct Answer True


Select The Blank
Question ________ shall lay before the AGM,
the statement of Income &
Expenditure in place of Profit &
Loss a/c.
Correct Answer Charitable Trust


Select The Blank
Question Copies of annual accounts are to be
filed within ________ days from
AGM with ROC.
Correct Answer 30 days

Multiple Choice Single Answer
Question In each board meeting director is
paid by remuneration, which is
known as :-
Correct Answer Sitting fees

Select The Blank
Question Liability clause can be found in
________.
Correct Answer Memorandum of Association

Multiple Choice Multiple Answer
Question The penalties are levied for which
offences done?
Correct Answer Pay less than minimum wages , Pay
less than fixed wages , Contravenes
any rule or order

True/False
Question Debenture holders are creditors of
the company.
Correct Answer True


Multiple Choice Single Answer
Question If an auditor after his appointment
becomes subject to any of the
disqualifications, it is treated that
the office is :-
Correct Answer Vacated


Multiple Choice Single Answer
Question Unless the articles of association
otherwise provide, every director
has to hold the shares of nominal
value of Rs.:-
Correct Answer 5000/-

Multiple Choice Multiple Answer
Question What are the general provisions for
punishment of other offences?
Correct Answer Section 22 provides for the
provision , Punishable with fine , Rs
500 fine

Select The Blank
Question As per section ________ it is
obligatory on every person
responsible for payment.
Correct Answer 4

Select The Blank
Question The auditor has to give his report
that the accounts of the company
gives ________.
Correct Answer True & Fair view

True/False
Question Owned foreign exchange is not
permitted.
Correct Answer False


Question In case of Postal Ballot, result is
announced through post.
Correct Answer False


True/False
Question Companies listed on recognized
stock exchange are not allowed to
invest in foreign companies.
Correct Answer False

Multiple Choice Multiple Answer
Question Borrowings for Indian companies
are for :-
Correct Answer In Rupees , On repatriation , Nonrepatriation

Select The Blank
Question To avoid conflicts of interest,
________ committee would
determine the remuneration
packages of the executive directors.
Correct Answer Remuneration


Match The Following
Question -Correct Answer
Section 2(vi) -Wages

Wages act -1936
Factories act 1948 Leave
Section 3 of
wages act
Every employer
responsible for
payment to
employed
persons
1948

Multiple Choice Multiple Answer
Question Which committees are considered
for calculating the limit of the
companies
Correct Answer Audit committees , Remuneration
Committee , Shareholders
Grievance Committee

Committee , Shareholders
Grievance Committee

Multiple Choice Multiple Answer
Question Remuneration to the director may be
paid :-
Correct Answer Monthly , Quarterly , Annually


Multiple Choice Multiple Answer
Question The register in respect of every
investment or loan made, contains
Correct Answer The name of body corporate , The
amount, terms & conditions &
purpose of investment or loan or
security or guarantee , The date on
which the investment or loan has
been made


Multiple Choice Multiple Answer
Question Books of account with respect to
following are required to be kept :-
Correct Answer Money received & expended , Sales
& purchases of goods , Assets &
liabilities

True/False
Question Indian companies are exempted
from filing a return by ECB-2.
Correct Answer False


Select The Blank
Question The minimum wages to the
obligations created by the
convention no 26 of ________.
Correct Answer International labour organisation


Multiple Choice Single Answer
Question What do you mean by accounting
year?
Correct Answer Day on which books of accounts of
the corporation are closed


Multiple Choice Single Answer
Question Quorum required to hold a valid
meeting can be prescribed in :-
Correct Answer Articles of Association

Multiple Choice Single Answer
Question A director can hold place of profit
by :-
Correct Answer Special resolution


Multiple Choice Single Answer
Question Any contravention of provisions of
FEMA will attract penalty upto :-
Correct Answer Rs. 200000


Select The Blank
Question For making alterations before ROC,
________ is required.
Correct Answer Power of Attorney


True/False
Question Acquiring foreign security on gift is
allowed.
Correct Answer True

True/False
Question An independent director is an
executive of a company in the
immediately preceding 3 financial
years of the company. Correct Answer False