Sample 50 Questions Marketing of Financial Services

1. Services marketing become difficult because of

A. Intangibility.
B. no demand
C. More complex market
D. Difficult to enter the market

2. Which of the following businesses would be characterized as a pure service

A. Insurance
B. Farming.
C. Mining.
D. There is no such thing as a pure service

3. Results in the practice of too narrowly defining one’s business

A. Services marketing
B. Marketing management
C. Marketing myopia
D. Customer experience

4. Services are characterized by all of the following characteristics except for

A. Intangibility.
B. Homogeneity
C. Perishability.
D. Inseparability

5. Of the four unique service characteristics that distinguish goods from services, the one that
is the primary source of the other three characteristics is:
A. Intangibility
B. Inseparability.
C. Perishability.
D. Heterogeneity.

6. Services that occur without interruption, confusion, or hassle to the customer is called
A. Seamless service
B. Service audit.
C. Functional service
D. Departmental service

7. The unique service characteristic that reflects the interconnection between the service firm
and its customer is called
A. Intangibility
B. Inseparability
C. Homogeneity
D. Perishability

8. Minimizing the amount of role conflict and role ambiguity experienced by employees will
help reduce the size of this gap is known as ____________.
A. Knowledge gap.
B. Standards gap
C. Delivery gap.
D. Communications gap

9. Fixing the right price for services offered is difficult because of ……………..
A. perishability.
B. heterogeneity.
C. inseparability.
D. intangibility.

9. The world’s largest industry in the private sector and highest projected generator of jobs
is______
A. The hospitality industry
B. Health services
C. Professional services.
D. Business services

10. Focusing the firms marketing efforts toward the existing customer base is called
A. Excellent customer service
B. Conquest retention
C. Customer retention
D. Courteous retention

11. Service consumers tend to be more brand loyal than goods consumers because
A. More choices are available
B. Brand loyalty lowers the amount of perceived risk
C. Each service provider provides many brands
D. Location of the provider is the major driver in the consumer selection process

12. Competitor intelligence should be gathered

A. Once a year.
B. Twice a year.
C. Continuously
D. When competition is more.
13. Which of the following is not a benefit of customer satisfaction?
A. The firm is more insulated from price competition.
B. The firm provides a positive work environment for its employees
C. Positive word-of-mouth is generated from satisfied customers
D. Satisfied customers make purchases more frequently

14. The service industry has several emerging trends that organisations need to be aware of.
Which of these should organisations keep a lookout for?
A. New competitors entering the marketplace
B. Advances in the internet
C. Heightened customer expectations
D. Advances in e-commerce.

15. Customers ultimately determine the services by……………..

A. The type of competitors.
B. The levels of marketing effectiveness and operational efficiency
C. The cycle of fluctuations
D. The price of the competitors.

16. During a service recovery effort, the employee promptly refunded the customers money
but threw the money at the customer. As a result, the recovery effort violated the customers
___________ justice need
A. Interactional
B. Ethical.
C. Social.
D. Procedural

17. A buyers perception of value is considered a trade-off between

A. Product value and psychic cost
B. Total customer value and total customer cost.
C. Image value and energy cost
D. Service value and monetary cost.

18. __________ is a firm view toward planning its operations according to market needs
A. Marketing orientation
B. Marketing functions.
C. Marketing department.
D. Marketing forecast.
19. Customer frustration resulting from receiving poor service is most similar to
A. Image costs.
B. Monetary price
C. Energy costs.
D. Psychic costs.

20. Which pricing strategies encourage the customer to expand his/her dealings with the
service provider?
A. Relationship pricing
B. Price bundling.
C. Benefit-driven pricing.
D. Efficiency pricing.

21. Which one of the following communication approaches would be appropriate during the
growth and maturity stages of the product life cycle?
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder

22. Tangible clues are more important when services are

A. Highly perishable.
B. Tangible dominant.
C. Intangible dominant
D. Heterogeneous

23. The advantage that the E-marketing communications carries are…………

A. Reaching a widely dispersed audience.
B. Being cost-effective.
C. Being personalized.
D. More customer satisfaction.

24. A disadvantage of e-marketing is

A. High cost.
B. Low reach.
C. Loss of personal contact
D. Less satisfaction.

25. Which of the following is not a component of service firms physical evidence?
A. Parking.
B. Employee appearance
C. Billing statements.
D. In-house process equipment

26. The organization must effectively plan to ______ fear, uncertainty and doubts that might
occur in the minds of customers during the course of acquisition.
A. Minimize
B. Maximize
C. Study
D. Balance

27. Internal marketing deals with

A. Marketing the products to employees
B. Marketing the products in the local market
C. Marketing the products inside the country
D. Identifying and taking care of employees need and wants

28. What is mean by interactive marketing?

A. Marketing by interacting with employees.
B. Marketing by interacting with dealers
C. Marketing is done by interacting between employees and customers
D. Marketing by interacting with top management.

29. In order to improve the process and performance of the company towards the customers,
they should try to …….
A. Modernize the building.
B. Modernize the product.
C. Reduce the waiting time by adopting the reservation system.
D. Asking customers to come another time.

30. Which of the following is NOT an example of an ambient condition in a retail

environment?
A. Music.
B. Signs.
C. Scents
D. Lighting.

31. Ambient conditions will have the least effect on customer behaviour in which of the
following service scapes?
A. A bakery shop
B. An air-conditioned hotel.
C. An open five-story parking garage
D. Bookstore with an in-store coffee cart.

32. Doing promotional activity is difficult in the marketing of which of the following
services.
A. Leisure service industry
B. Education industry.
C. NGO.
D. Public sector.

33. The Income , age & education is ________ segment

a) Geographic
b) Demographic
c) Psychographic
d) Lithographic

34. The service industry has grown many folds due to _________
A. less growth in other sectors
B. more growth in all sectors
C. more affluence of customers
D. effective marketing strategies of service marketers

35. Blueprints identify all of the following process steps except

A. The direction in which processes flow
B. The time it takes to move from one process to another.
C. The costs involved with each processing site.
D. The amount of inventory build-up at each step

36. The most common mistake made when constructing a service blueprint is
A. Bottlenecks are not identified correctly
B. Failure points are not identified correctly
C. The blueprint is one-sided.
D. Representing only the firm’s perception of the process

37. The internal marketing refers to which of the following options.

A. Marketing its products to its customers.
B. Marketing its products to its employees.
C. Marketing to local customers.
D. Ensuring that the employees are satisfied in the organization.
38. Physical evidence helps
A. To evaluate the service by customers
B. To deliver the services
C. To evaluate the services by the provider.
D. To assess the quality by the third party.

39. Internal marketing refers to satisfying the

A. Employees of the organization.
B. Customers of the organization.
C. Customers as well as employees.
D. public

40. Customer may get dissatisfied due to

A. Less waiting time
B. More waiting time
C. More products
D. Fewer products.

41. ___________ act as clue for physical evidence.

A Interior of the building
B. Cheque leaves
C. Quotation
D. Food

42. Gap model indicates the

A. Possible failures in the service delivery process
B. The outcome of the process
C. Process of the service delivery
D. The sequence in which service delivered

43. Service quality of the company may be affected by the act of…..
A. Receptionist.
B. Competitors.
C. Advertisers.
D. System administrator.
44. _______ is one of the stage of Product Life Cycle.

a) Maturity

b) Surety

c) Ambiguity

d) Popularity

45. At _______ stage of the life cycle the product will be experiencing increased competition.

a) Growth

b) Maturity

c) Decline

d) Introduction

46. _________ is one type of JAYCUSTOMERS

a) The Speed Breaker

b) The Rule Breaker

c) The Public Speaker

d) The Goal keeper

47____________ is one of the element of Service Delivery Process

a) Service Quality
b) Service Dispatch
c) Service Quantity
d) Service Board
 48. _______ is one type of Customer Loyalty programme

a) Data Gathering and gap Analysis

b) Education Survey

c) Non Profit Organisation

d) Government Revenue generation

49____ is one of the Three R’s of Service Quality

a) Respect
b) Repent
c) Regret
d) Represent

50______ is the third logical step after market Segmentation and market targeting

a) Price
b) Product
c) Popularity
d) Positioning
 Sample questions of TYBFM SEM -V Regular Dec 2020 Exam

Direct Tax
1. The Income tax act, 1961 came into force w.e.f. ____________
a. 1st April, 1962
b. 31st March, 1961
c. 1st April, 1961
d. None of above

2. Circulars and Notifications are binding on the___________

a. Central Board of Direct Taxes (CBDT)
b. Assessee
c. Income Tax Appellate Tribunal (ITAT)
d. Income Tax Authorities

3. A person includes______________________
a. Only Individual
b. Only Individual and HUF
c. Individuals, HUF, Firm, Company only
d. Individuals, HUF, Company, Firm, AOP or BOI, Local Authority, Every Artificial Juridical
Person

4. Municipality of Delhi falls under ____________category of person-

a. Artificial juridical person
b. Local authority
c. Individual
d. Association of Person

5. Section _________of the Income-tax Act, 1961 defines the term 'person'
a. 4
b. 2(31)
c. 5
d. 2(32)

6. Income-tax in India is charged at the rates prescribed by -

A. The Finance Act of the assessment year
B. The Income-tax Act, 1961
C. The Central Board of Direct Taxes
D. The Finance Act of the previous year.

7. Which of the following is not included in taxable income -

A. Income from smuggling activity
B. Casual income
C. Gifts of personal nature subject to a maximum of Rs. 50,000 received in cash
D. Income received in kind.

8. The tax exemption limit for a resident senior citizen is -

A. Up to Rs. 2,00,000
B. Up to Rs. 5,00,000
C. Up to Rs. 1,80,000
D. Up to Rs. 3,00,000

9. Short term capital gains arising on transfer of listed equity shares through recognized stock
exchange are chargeable to Tax @ _____ _
A. 10%
B. 15%
C. 20%
D. 30%

10. Income from vacant plot is taxable under the head______

A. Income from House Property
B. Income from Other Sources
C. Profits & Gains of Business or Profession
D. Capital Gains

11. In which of the following cases the annual value of the house is taken to be NIL.
A. Self-occupied house.
B. Vacancy for the whole period.
C. If the assessee holds two house properties.
D. Both (a) & (b) but not (c)

12. DS is the owner of a house property covered under the Rent Control Act. Municipal value Rs.
30,000, actual rent Rs. 25,000, fair rent Rs.` 36,000 and standard rent is Rs. 28,000. The gross
annual value of the house property will be –
 A. Rs.`30,000
B. Rs. 25,000
C. Rs. 36,000
D. Rs. 28,000

13. Which of the following deduction are to be made from income house property?
A. Standard deduction
B. Interest on borrowed loan
C. Both (a) and (b)
D. Option (a) but not (b)
14. Which of the following amount is not allowed for deduction from income from house
property?
A. Interest on loan borrowed for construction of house property.
B. Interest on fresh loan taken to repay original loan.
C. Interest on unpaid interest.
D. Interest on unpaid purchase price

15. The maximum limit of deduction under section 24(b) for interest on borrowed capital before
1-4-1999 for construction of house property used for self-occupation is:
A. Rs. 30,000
B. Rs. 2,00,000
C. Rs. 50,000
D. Rs. 60,000

16. The net annual value of house let-out is Rs.` 1,00,000 and actual amount spent by the
assessee on repairs and insurance premium is Rs.` 20,000, the amount of deduction allowed
under section 24(a) shall be ______________
A. Rs.20,000
B. Rs. 30,000
C. Rs. 25,000
D. Rs. 22,000

17. Rent received by original tenant from sub-tenant is taxable under the head
_______________.
(a) Income from House Property
(b) Income from Other Sources
(c) Income from Capital Gain
(d) Income from Salary

18. X, a person of Indian origin visited India on 11-11-2019 and plans to stay here for 330 days.
During four years prior to Previous Year 19-20, he was in India for 335 days. Earlier to that he
was never in India for Assessment Year 20-21, X shall be _____________
a. Resident and ordinary Resident
b. Resident but Not ordinarily resident
c. Non-resident
d. A Foreigner
19. Salary received by the partner from the firm in which he is a partner is taxable under the
head _____
(a) Profits from Business (b) Salaries
© Other sources (d) Capital Gains

20. ______________ has the Highest tax liability as per Income Tax Act
(a) Resident and ordinary Resident
(b) Resident but Not ordinarily resident
(c) Non-resident
(d) None of these

21. Citizen of India, leaving India for Employment is resident if he ________________

a. Stay in India exceeds 60 days in previous year.
b. Stay in India exceeds 182 days in previous year.
c. Stay in India exceeds 90 days in previous year.
d. Stay in India exceeds 180 days in previous year.

22. Compensation received on voluntary retirement is exempt under Sec. 10 (10 C) to the
maximum extent of__________
(a) Rs. 2,40,000
(b) Rs. 3,00,000
(c) Rs. 5,00,000
(d) Rs. 8,00,000

23. Allowances received by MPs and MLAs are exempted U/s_____________

(a) 10 (1) (b) 10(17A)
© 10 (17) (d) 10(32)

24. The charging section of the income under the head capital gains is:
A. Section15
B. Section17
C. Section10
D. Section45

25. The following shall not be regarded as capital asset:

 A. Urban Land
B. Securities held by a Foreign Institutional Investor as per SEBI Act, 1992
C. Archaeological Collections
D. Motor Car

26. A short term capital asset means a capital asset held by the assessee for not more than:
A. 12 months immediately preceding the month of its transfer
B. 24 months immediately preceding the date of its transfer.
C. 36 months immediately preceding the date of its transfer.
D. 6 months immediately preceding the date of its transfer

27. Compute the capital gains for AY 2020-21 if Mr. Raj, a property dealer, sells a Commercial
plot of land on 1-3-2020 for Rs.50,00,000 which was acquired by him on 1-8-2017 for
Rs.25,00,000 for selling of offices constructed therein. He had incurred land development
charges of Rs.10,00,000 on 1-10-2017. He incurred Rs.1,00,000 for selling the plot of land.
A. Rs.23,00,000
B. Rs.15,00,000
C. Rs.13,00,000
D. Rs.25,00,000

28. If an asset is put to use for less than 180 days in the previous year, the depreciation is
charged
at _______________ rate.

(a) 30% (b) 50 (c) 25% (d) Nil

29. Income chargeable under the head ‘Profits and Gains from Business or Profession’ is covered

under _______________.

(a) Section 23 (b) Section 28 (c) Section 25 (d) Section 24

30. If a money gift is received from _______________, it is not taxable under any head.
a. From any relatives
b. On the occasion of the marriage of the individual
c. Under a will or by way of inheritance
d. From any relatives, On the occasion of the marriage of the individual and Under a will
or by way of inheritance
31. In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed
_______________.
a. Gross total income
b. Total income
c. Income from business or profession
d. Income from house property

32. Deduction under Section 80C can be claimed for fixed deposit made in any scheduled bank, if
the minimum period of deposit is _______________.
a. 10 Years
b. 5 Years
c. 12 Years
d. 8 Years

33. Clubbing of income means _______________.

a. Addition income of two partners
b. Inclusion of income of other person in assessee income
c. Total of income of various heads
d. Collection of income

34. Gross Total Income is arrived after _______________.

a. Only adding Income under five heads of Income
b. Adding Income under five heads of Income excluding losses
c. Adding Income under five heads of Income, after applying clubbing provisions and
making adjustment of set off and carry forward of losses
d. Adding Income under five heads of Income, after applying clubbing provisions and
making adjustment of set off and carry forward of losses and after allowing deduction
under sections 80C to 80U

35. Deductions in respect of contribution to political party will _______________.

(a) Be allowed in respect of sum paid by way of cash
(b) Not be allowed if payment made in cash
(c) This type of deduction is not allowed whether payment is in cash or not
(d) Be allowed if payment made in cash, subject to certain conditions

36. Expenditure incurred on family planning amongst the employee is allowed to:______
 a. Any assessee
b. A company assessee
c. An assessee which is a company or cooperative society
d. None of the above

37. Out of the following, which of the capital receipt is not taxable:

A. Capital gains of Rs.10,00,000

B. Amount of Rs.5,00,000 won by way of lottery, games, puzzles

C. Amount of Rs.2,00,000 received by way of gift from relatives

D. Amount of Rs.1,00,000 received by way of gift from a friend on marriage anniversary

38. Which of the following income is not chargeable as income of business or profession?
(a) Profits and gains of business carried by an assessee during the previous year
(b) Income derived by a trade, professional or similar association from specific services
performed for its members
(c) Income from the activity of owning and maintaining race horse
(d) Salary received by a partner of a firm from the firm in which he is a partner

39. Mr. Amit ( A retiring Govt. Employee) received Rs. 5000000 as gratuity. Calculate taxable
amount U/s 10(10).
a. Rs. 500000
b. Nil
c. Rs. 2000000
d. Rs. 250000

40. Sita, an employee of C Ltd. drawing salary of Rs. 10,000 p.m. took advance salary for April,
2020 along with salary of March, 2020 on 31-3-2020. The Gross Salary of Ms. Sita for
A.Y.2020-21 should be __________
a. 120000
b. 130000
c. 110000
d. 20000
41. Mr. Ashok paid the Balmohan Vidya Mandir for his school going son's tuition fees Rs.5,000
and School Bus Fees Rs.2,000. He is entitled to a deduction u/s 80C equal to__________
(a) 5,000
(b) 2,000
(c) 7.000
(d) 10,000

42. Mr. Vilas had taken housing loan for his self-occupied property from HDFC Bank on 18-11-
1998 During the Previous Year 2019-20 he paid interest on housing loan Rs.1,60,000. He is
entitled a deduction from Net Annual Value equal to__________
a. 160000
b. 200000
c. 250000
d. 30000

43. Deduction u/s 80E shall be allowed for the higher education of
a. Assessee siblings
b. Assessee himself
c. Assessee, spouse and children
d. Assessee all family members
44. In case of long term capital gain the amount to be deducted from sale consideration shall
be____________
a. Cost of acquisition
b. Indexed cost of acquisition
c. Market value as on 01-04-2001
d. Cost of improvement

45. V Ltd. Announced increase in DA on 21-03-2020 with retrospective from 21-03-2020 and the
same was paid on 06-04-2020. The arrears of DA shall be taxable in PY___________
a. 2019-20
b. 2020-21
c. 2018-19
d. 2017-18

46. Amar has earned lottery prize of Rs.50000, he received net Rs.45000 (after deducting TDS
Rs.5000). how much amount will be taxable in hands of Mr. Amar?
 a. 45000
b. 5000
c. 50000
d. 55000
47. Profit on sale of import license is___________
a. Exempt from tax
b. Taxed as profits and gains of business
c. Taxed as income from other sources
d. Taxed as capital gains
48. Any capital expenditure on scientific research related to the assessee business.
a. Is allowed to be deducted @100%
b. Is allowed to be deducted @125%
c. Is allowed to be deducted @175%
d. Cannot be deducted from profits of business
49. Mr. S, aged 72 years, paid medical insurance premium of Rs.22000 by cheque and Rs.1000 by
cash during the year 2019-20 under medical insurance scheme. The above sum was paid for
insurance of his own health. He would be entitled to a deduction under section 80D of a sum
of_________
a. 22000
b. 23000
c. 15000
d. 25000
50. Kumar purchased equity shares worth Rs.80000 on 18th November 2019 and sold them for
Rs.120000 on 25th November 2019. The gain is ________________
a. Short term capital gain
b. Long term capital gain
c. Midterm capital gain
d. Business Income
Sample Questions TY BFM SEM -Equity Research
1. ___________________ is a process of Systematic Enquiry
a. Research
b. Economics
c. Science
d. Interpretation
2. _______________ acts as a firm foundation for the entire research
a. Research problem
b. Data analysis
c. Research Design
d. Data collection
3. Which of the following is an External source for collecting secondary data
Sale Record
Marketing activity
Customer feedback
Internet
4. Which of the following is an External source for collecting secondary data
Sale Record
Marketing activity
Customer feedback
Journals
5. Which of the following is an Internal source of collecting secondary data
Journal
Sales records
Internet
News paper
6. Which of the following is not an importance of research
Collect data
Expand knowledge
Develop new ideas
Provide solution to a problem
7. Which of the following is not a need of research design
Helps save cost
Provides guidelines to researcher
Gives suitable direction to research staff
Helps select appropriate techniques of data collection
8. Promotional equity research reports are _______
a. Biased
b. Unbiased
c. Professional
d. Unprofessional
9. Fee based equity research reports are funded by _________
a. Researchers
b. Individuals
 c. Companies
d. None of the given

10. Fundamental Research is known as _________

a. Basic Research
b. Pure Research
c. Both Basic and Pure
d. None of the given
11. ______________ research is structured way of collecting data and analysing it to
draw conclusions
a. Qualitative
b. Pure
c. Basic
d. Quantitative
12. Which of the following is a tool for fundamental analysis
Moving average
Trend analysis
Dividend yield
Line charts
13. Which of the following is a tool for technical analysis
Moving averages
Price to book ratio
Dividend yield
Earnings per share
14. Which of the following is not an advantage / strength of technical analysis
Focus on price
Pictorial price history
Helps discover undervalued shares
Assist with entry point
15. Price to earning ratio - P/E =
Book price / EPS
Market price /EPS
EPS / Book price
EPS / Market price
16. Earnings Per Share =
PAT/ number of Equity shares
PBT/ number of Equity shares
PBIT/ number of Equity shares
PBITD/ number of Equity shares
17. ____________ is concerned about how over all economy works
a. Micro
b. Molecule
c. Mini
d. Macro
18. Which of the following is not a feature of Sampling
Small representative
Reduces Time & Effort
Increases the cost of research
Based on assumption

19. Which of the following is a type of probability sampling

Convenience
Judgement
Quota
Cluster
20. Which of the following is a type of non-probability sampling
Simple random
Snowball
Stratified
Cluster
21. Which of the following is not a goal of Equity research
Study company’s financial data
Analyse company’s financial data
Find out intrinsic value of securities
Make uninformed investment decisions
22. EPS = _______/ Outstanding shares
a. Gross earnings
b. Net Earnings
c. Gross Sales
d. Net sales
23. _____________ is a measure of National Income
a. Inflation rate
b. Bank rate
c. Gross national product
d. Repo rate
24. __________proposed a model consisting of five competitive forces that determine
the intensity of industry competition and profitability.
a. Michael Porter
b. Michael Jordon
c. Michael Jackson
d. Michael Athurtan
25. _____________ describes the direct and indirect competitors who are in similar
business in the same market space
a. Business environment
b. Economic environment
c. Competitive environment
d. Green environment
26. The _________ is the mechanism through which the company generates its profits
 a. Business Model
b. Business Plan
c. Business Strategy
d. Business environment
27. The____________ is a document presenting the company's strategy and financial
performance for the years to come.
a. Business Model
b. Business Plan
c. Business Objective
d. Business environment
28. The business goal of ________ is to create physical products and sell them directly to
customers
a. Manufacturer
b. Wholesaler
c. Retailer
d. Distributor
29. The business goal of ________ is to create an intangible good and sell it to others
a. Inventor
b. Manufacturer
c. Wholesaler
d. Retailer
30. A ___________ sells a service provided primarily by people to a customer.
a. Inventor
b. Manufacturer
c. Contractor
d. Creator
31. The ____________business model is common for companies that offer personal or
business services via the Internet.
a. Premium
b. Freemium
c. General
d. Luxury
32. _________ analysis is done as part of the overall corporate planning process,
a. Technical
b. Fundamental
c. SWOT
d. Mean
33. A _______ matrix is usually depicted as a square divided into four quadrants
a. Technical
b. Fundamental
c. SWOT
d. Mean
34. __________ are areas capable of improvements
a. Strengths
 b. Weakness
c. Opportunity
d. Threats
35. ________ can be external or Internal and are anything which can adversely affect the
business
a. Strengths
b. Weakness
c. Opportunity
d. Threats
36. Management quality is a ______ concept
a. Industry
b. Organisational
c. Leadership
d. Pricing
37. The organisations _________ is able to provide direction and strategies to ensure
the organisations goals are achieved
a. Leadership
b. Objectives
c. Ownership
d. Hiring
38. The single most important decision in evaluating a business is ________
a. Manufacturing capability
b. Pricing power
c. Distribution capacity
d. Purchasing power
39. A _________ has a great deal of pricing power as they have no direct competition
a. Wholesaler
b. Monopoly
c. Manufacturer
d. Duopoly
40. Brands with high social status enjoy significant ________ power
a. Purchasing
b. Selling
c. Buying
d. Pricing
41. Firms selling commodity products have no pricing power whatsoever and must
accept ______ prices
a. Wholesale
b. Market
c. High
d. Low
42. There is a need to be able to adapt the right __________for a business to be
successful and popular.
a. Business Model
 b. Business Plan
c. Business Objective
d. Business environment
43. ________ ratio indicated how much the company pays out as dividends each year
relative to its share price.
a. Dividend payout ratio
b. Dividend yield ratio
c. Dividend per share
d. Earning per share
44. The ___________ measures how much of a company’s earnings are paid out as a
dividend
a. Dividend payout ratio
b. Dividend yield ratio
c. Dividend per share
d. Earning per share
45. ___________measures how efficiently a firm can use the money from shareholders
to generate profits and grow the company.
a. Return on Equity
b. Return on Capital employed
c. Capital returns
d. Return on Debt
46. ________EPS is better as it means the company is more profitable
a. Lower
b. Average
c. Higher
d. Proportionate
47. __________is also referred to as Operating profit
a. EBIT
b. EAT
c. EBT
d. Gross profit
48. ___________ are agreed upon by a company’s board of directors.
a. Corporate action
b. Tax payment
c. Interest payments
d. Business environment
49. _________dos not affect a company’s equity or its market capitalization
a. Rights Issue
b. Bonus Issue
c. Stock split
d. New Issue
50. ____________refers to the consolidation of companies or assets through various
types of financial transactions.
a. Black Bull transactions
b. Buy Back
c. Merger & Acquisitions
d. Right Issues
 Sample questions of TYBFM SEM -V Regular Dec 2020 Exam
Business Ethics and Corporate Governance

1.The Framework for establishing for good corporate Governance and accountability was
originally set up by the

(1) Nestle Committee (2) Thornton Committee

(3) Rowntree Committee (4) Cadbury Committee

2.Germen Model is also known as_________

A. unitary model B. Two-tier board model

C. Business network model D.Geo tagging model

3. Primary responsibility for preventing fraud in an organisation is on _________

A. Audit Committee B. Board Committee C. Remuneration Committee D. Nestle Committee

4.Clause _______in the listing agreement deals with corporate governance.

A. Clause 53 B. Clause 79 C. Clause 49 D. Clause 99

5. As per SEBI guidelines the audit committee shall meet ___________

A. Two B. Three C. Four D .Five

6.________ Constituted a meeting on January 2000 based on recommendations of Kumar

Mangalam Birla Committee on Corporate Governance.

A.CIII B. RBI C.OECD D.SEBI

7. Essential assessment of how well a company has discharged its Social Obligations _________

A. Statutory Audit B. Social Audit C. Tax audit D. Regulatory audit

8.Who is gatekeeper of good corporate governance?

A. Board of Directors B. External auditor C. Governmental Oversight bodies D. Legal Counsel.

9. The corporate governance structure of a company reflects the individual companies’:

A. Cultural and economic system. B . Legal and business system.

c. Social and regulatory system. d. All of the above.

10. Cadbury Committee was set up in the year _____.

a.1981 b.1991 c.2001 d.2005

11. Transparency International has developed__________ Pact.

a. Integrity b. Global Peace c. Global Ethics d. governance

12. UN Global Compact Office is supported by ______ UN Agencies

a.Five b. Four c. Six d. Seven

13. NFCG was set up in the year _________

a. 2015 b. 2003 c. 1988 d.1900

14.According to Companies Act 2013,Companies must have at least _______ women Director.

a . One b two c three d. five

15.‘Clause 49’ refers to clause number 49 of ______ Agreement

a. Listing b. Shareholders c. Auditors d .Marketing

16. __________ transaction takes place between two parties who hold pre-existing connection
prior to transaction.

a. Third Party b. Debtors Party c. Related Party d. fourth party

17.Black marketing, hoarding etc are examples of ethical issues in ______

a. marketing b. HRM, c. accounting d.IT

18.Government, society, customers etc are collectively known as __________ of the business

a. creditors b. shareholders c. trustees d. stakeholders

19. __________ training enables employees to practise organisation’s values

a.vestibule b.on-site c. appraisal d. ethics

20. The __________ committee identifies persons who are qualified to become directors and who
may be appointed in senior management

a. nomination b. remuneration c. audit, d. appraisal

21.. __________ trading refers to disclosing unpublished price sensitive information to an outsider

a. bull b .share c. insider d. corporate.

22.The mission of _______________ is to assist the top academics in the field of

corporate governance in bringing their research to the attention of leading
practitioners.

a. ECMI b. ECGI

c. EGFI d. ECMI

23.An _________________ in an organization ensures that compliance with law is

fuelled by a desire to abide by the laws.

a. Ethical Climate b. Moral Climate

c. Information System d. Control System

25_______ have a responsibility in insuring that corporation at according to the rules

and norms of the society.

a. Governments b. Public

c. Customers d. Creditors
 26. .SEBI has set up a separate cell to address the grievances of investors –(SCORES)
which stands for ________________

a. SEBI Complaints Redressal System b. SEBI Corporate Redressal System

c. SEBI Companies Redressal System d. SEBI Complaints Regulation System

27.In context of Corporate Governance forums, NFCG Stands for ________________

a. National Foundation of Corporate b. National Foundation of Common

Governance Governance
b. National Foundation of Commercial d. National Foundation of Core
Governance Governance
28.In context of Corporate Governance forums, GCGF Stands
f____________________

a. Global corporate governance b. Global concreate governance

forum forum

c. Global corporate governance form d. Global common governance forum

29..In context of Corporate Governance forums, OECD Stands for

_________________

a. Organisation for Economic Co- b. Organisation for Ecological Co-

operation and Development operation and Development

c. Organisation for Economic Common d. Organisation for Economic o-

and Development operation and Development

30 The form of ethics that endeavours to help professionals decide what to do when they are

confronted with the case or situation that raises and ethical question or moral problems is referred
to as

(1) Personal Ethics (3) Organisational Ethics

(3) Professional Ethics (4) Business Ethic

31. "We wish to be good citizens of every community in which we operate." This is

(1) Ethical Code (2) Political and Social Code

(3) Legal Rule (4) Legal Act

32. _______ have a responsibility in insuring that corporation at according to the rules and norms
of the society.

(1) Governments (2) Public

(3) Customers (4) Creditors

33. Most companies begin the process of establishing organisational ethics programs by
developing

(1) Code of Conduct (2) Law

(3) Both A & B (4) None of the Above

34. The form of ethics that endeavours to help professionals decide what to do when they are
confronted with the case or situation that raises and ethical question or moral problems is
referred to as

(1) Personal Ethics (3) Organisational Ethics

(3) Professional Ethics (4) Business Ethics

35. _____ is the philosophical study of moral values and rules

(1) Morality (2) Law

(3) Ethics (4) All of the above

36. Codes of ethics are statements of values and principles that determines the
________________ of the company.

(1) Purpose (2) Profit

(3) Growth (4) Regulation

37. The Global Compact office is supported by ____________ UN Agencies.

(1) Ten (2) Eight

(3) Six (4) Four

38. ____________ enables employees understand ‘how business ethics relates to all operational
issues in the organisation.

(1) Ethics Committee (2) Integrity Pact

(3) Ethics Training (4) Board of Directors

39. The Pivotal role in any system of Corporate governance is performed by _______________

(1) Board of Directors (2) Shareholders

(3) Government (4) Stakeholders

40. The Framework for establishing for good corporate Governance and accountability was
originally set up by the

(1) Nestle Committee (2) Thornton Committee

(3) Rowntree Committee (4) Cadbury Committee

41. The document prepared to guide organisation members when encountering ethical dilemmas
is _______

(1) Code of Ethics (2) Code of Conduct

(3) Both A&B (4) None of the above

42. The document prepared to guide organisation members when encountering ethical dilemmas
is _______

(1) Code of Ethics (2) Code of Conduct

(3) Both A&B (4) None of the above

43. Which ethical principle specifies to do what is good

(1) Beneficence (2) Least harm

(3) Both A & B (4) None of the above

44. Which type of ethical issue does a green company resolves

(1) Environmental (2) Financial

(3) Social (4) Political

45. _____ is the code of conduct that an individual or a group has about right and wrong

(1) Morality (2) Ethics

(3) Law (4) All of the above

46. _____________ is an important tool to help to create a level playing field for business and
reduce the costs associated with procurement.

(1) Ethics Committee (2) Integrity Pact

(3) Ethics Training (4) Board of Directors

47. To be fruitful business, _________ programme ought to teach about formal ethics systems.

(1) Ethics Committee (2) Integrity Pact

(3) Ethics Training (4) Board of Directors

48. Which of the Following is not considered as key player in Corporate Governance?

(1) Shareholder (2) Director

(3) CEO (4) Supplier

49. The word ‘Governance’ comes from __________ root ‘Gubernare’ to steer.

(1) Latin (2) Italian

(3) Indian (4) American

50. Which of the following is not the underlying principles of the corporate governance combined
code of practice

(1) Acceptability (2) Accountability

(3) Openness (4) Integrity

 TYBFM – Sem V
Technical Analysis, Dec. 2020
Sample MCQs

S. No. MCQ
1 Technical analysis can help investors anticipate what is “likely” to happen to
________ over time.
prices
volumes
economy
fair value of stock
2 Which one is the assumption of Technical analysis?
No risk in stock market
Everyone makes money
History Repeat itself
All transactions are speculative

3 --------- are also referred as OHCL Charts.

Bar Chart
Point and Figure Chart
Candlestick Charts
Line Charts

4 Technical studies help to understand that crux by analyzing price behavior of

______________.
Consumer
Company
Securities
Economic

5 Technical analysis provides 2 price level of ______ and ________.

High and Low
Support and Resistance
Increase and Decrease
High & Resistance

6 The study of technical analysis is based on which of the following elements:

price
volume
open interest (in case of derivatives)
price, volume & open interest
7 _________ movements are typically referred to as bull and bear markets.
Secondary
Daily
Major
Primary
8 Which of the following is not true about chart?
It plot the price movements of a stock over specific time frames
X-axis represents price and y-axis represents time
It gives pictorial representation of any stock’s trading history
It can give a complete picture of a stock’s price history over a period of an hour,
day, week, month or many years.
9 In pennant formation price consolidate in a _________
a. Curve
b. Double top
c. Triangle
d. Channel

10 Which type of chart includes daily high price, low price, opening price and closing
price?
Point-and-Figure Chart
Moving Average Cost
Bar Chart
Candlestick Chart

11 Which type of chart is formed using only closing price data?

Candlestick Chart
Line Chart
Advance-decline Chart
Point-and-Figure Chart

12 _______ are composed of a single line from left to right that links the closing
prices.
Line Chart
Bar Chart
Candlestick Chart
Point-and-figure Chart

13 One of the most popular tools used by technical analysis is:

P/E Ratio
Book-to-market-value Ratio
Growth Rate of Dividends
Moving Averages

14 The Xs represent upward price trends and the Os represent downward price trends
in which charts?
Line Chart
Bar Chart
Candlestick Chart
Point-and-Figure Char

15 In Three Soldiers pattern the bodies of which candlestick should be approximately

the same size:
Fourth and Third
 Second and Third
First and Second
Fourth and First

16 By the time, the prices reach the support level, what prevents the prices from falling
further?
Demand will overcome Supply
Supply will overcome Demand
No change in Demand and Supply
No trade

17 In the Three Black Soldiers pattern formation, every subsequent candle must open
within the previous candle body leaving no gap, giving clear decisive signals of:
Selling
Buying
Both
No decision

18 According to dow theory the primary trend represents a cycle Lasting

approximately.
1. 3 to 6 months
2. 6 to 12 months
3. 4 to 4 ½ years

The Three Black soldiers pattern formation has to occur where in the upward trend
19 for trend reversal:
Bottom
Top
Middle
None

20 In top reversal head and shoulders pattern, the decline from peak of __________
should break the neckline.
a) left shoulder
b) right shoulder
c) head
d) neckline

21 In Head & Shoulders pattern, which level is achieved by the second rally?
a) Highest point
b) Lowest point
c) Either highest or lowest point
d) Neither highest nor lowest point

22 Triple tops are found in ____ trend.

Left
Right
 Up
Down

23 Upper line of channel acts as ongoing _______

Resistance
Line
Support
Trend
24 Gap is a area on price chart where there is _________
Uptrend
Downtrend
Movement
No trade
25 Common gap is also referred to as a _______ gap.
Runaway
Exhaustion
Trading
Breakaway

26 A congestion area is just a _______ range.

Price
Volume
Trend
Activity

27 A simple moving average is formed by computing the _____ price of a security

over a specified number of periods.
a) Mode
b) Median
c) Mean
d) Variance

28 Which one is more responsive to recent price change?

Simple moving average
Moving average
Exponential moving average
SMA & EMA

29 Relative Strength Index is a momentum indicator.

Agree
Not Agree
Some what agree
Some what not agree

30 In RSI, which zone is over bought zone?

Between 0% to 100%
Between 70 % to 100%
 Between 0% to (-)100%
Between 10 % to 70%

31 Which of the following is not a momentum oscillator?

a) RSI
b) Stochastic
c) Rate of change
d) Moving average crossovers

32 Who developed Stochastic indicator?

George Kane
George Lane
Gerald Lane
Gerald Kane

33
William % R indicator always moves ________ .
Between 0% to 100%
Between 20 % to 100%
Between 0% to (-)100%
Between 80 % to 100%

34 In Bollinger Bands, _________ act as area of support.

Upper band
Lower band
Middle band
Range
35 Which of the following is not a Dow theory principles?
Market have 5 trends
Trends have 3 phases
Market discount all news
Volume must conform the trend

36 In Dow theory, primary trend has _____ Phases.

One
Two
Three
Four

37 Secondary Trend is found within ………………………. .

A. Corrective Trend
B. Minor Trend
C. Primary Trend
D. Tertiary Trend

38 Volume must conform the _______.

 Trend
Volatility
Price
Pattern

39 Day traders must have proper knowledge of:

a) technical analysis
b) SWOT analysis
c) technical & SWOT analysis
d) Fundamental analysis

40 Efficient risk management system involves:

a) putting stop loss
b) controlling position size
c) controlling losses, putting stop loss
d) controlling losses, putting stop loss , controlling position size

41 Which type of mistakes the trader do?

Forget to follow discipline
Chasing the crowd
Forget to follow discipline & Chasing the crowd
Considering warning signs

42 ______ is speculation in securities.

ST investment
Medium term investment
Day trading
Long term investment

43 What type of risk is associated with day trading?

Business risk
Improperly tested strategy
Systematic risk
Interest rate risk

44 What type of risk is associated with day trading?

Business risk
Lack of risk management
Systematic risk
Interest rate risk

45 Who can make money in both rising and falling market?

Long term investors
Day traders
Short term investors
Hedger

46 The first 5-3 wave pattern is called the…….

a. Motive wave
 b. Impulse wave
c. Corrective wave
d. Fundamental wave

47 Who is the founder of the Elliot wave theory?

a. Missy Elliot
b. Ralph nelson Elliot
c. Elliot spritzer
d. Elliot Nehi

48 Which type of Chart has no time horizon?

a) Bar Chart
b) Point-and-Figure Charts
c) Moving Average Chart
d) Candlestick Chart

49 For the Three Black Soldiers pattern formation there has to be persistent trend, in
which direction: -
o Up
o No Trend
o Down
Normal
50 In flag formation price consolidate in a ________
a. Symmetrical triangle
b. Channel
c. Triangle
d. Descending triangle
TYBFM – Sem 5
Financial Derivative
Sample Questions

1 The value of derivatives depends on the movement in the prices of their

__________.
a. Investment b. Underlying
c. Products d. Land

2 Derivatives are instruments related to settlement of obligations at a

_____________.
a. Present Date b. Uncertain Date
c. Immediate Date d. Future Date

3 Futures and Options contract are usually transacted on _______________.

a. Forward Market b. Spot Market
c. Derivative Exchange d. Cash Market

4 _____________ gives definition of derivatives in India.

a. Foreign Exchange Act b. Reserve Bank Act
c. Securities Contract (Regulation) d. Profit Act
Act

5 Forward contracts are traded only in __________ market and not in stock
exchanges.
a. NSE b. BSE
c. Over the Counter d. NASDAQ

6 A drawback of forward contracts is that they are subject to _______ risk.

a. Commodity b. Interest Rate
c. Default d. Commercial

7 Option Pricing Model wherein spot prices moves up or down more than twice is
referred to as ____________
a. Single Period Binomial Model b. Two Period Binomial Model
c. Multi Period Binomial Model d. None of these

8 The portfolio of investments held by financial institutions are exposed to the risk
of erosion in the value of portfolio due to fluctuation in the prices of the
_____________
a. Bank Deposit b. Brokerage
c. Securities d. Statutory Fees

9 Which of the following is not true with respect to interest rate in case of
BSM_____
a. Interest Rate is risk free b. It remains constant
c. It is same for all maturities d. None of these

10 ___________ is the cost of holding the underlying asset over a period of time.
a. Cost of Buying b. Cost of Selling
 c. Cost of Carry d. Cost of Brokerage

11 The seller of a Futures contract is said to be _________ on futures.

a. Long b. Short
c. Constant d. Mild

12 When Future price is overpriced i.e. more than the theoretical futures price then
the arbitrage can follow _____________ Arbitrage.
a. Cash & Carry b. Reverse Cash & Carry
c. Normal d. Abnormal

13 ____________ are those who enter into a derivative contract with the objective
of covering risk arising out of price fluctuation.
a. Player b. Hedger
c. Speculator d. Arbitrageur

14 The process of simultaneous buying of securities or derivatives in one market/

segment at lower price and sale thereof in another market /segment at higher
prices is known as _______________.
a. Speculation b. Arbitrage
c. Hedging d. Off Setting

15 The price of an underlying asset that is quoted for the immediate delivery of the
underlying asset is known as ________.
a. Spontaneous Price b. Spot Price
c. Ready Price d. Discovered Price

16 When there is positive correlation between spot price and interest rates then
future prices are ____________.
a. Less than forward price b. More than forward price
c. Equal to forward price d. Zero

17 The difference between the spot price of an underlying and the futures price of
that underlying is referred to as ________________.
a. Future price b. Spot Price
c. Basis d. Net Price

18 Interest rate derivatives were launched on NSE on ____________.

a. 25 August 2009 b. 27 Aug 2009
c. 29 Aug 2009 d. 31 Aug 2009

19 On _______________ currency derivatives trading commenced on NSE.

a. 25 Aug 2008 b. 27 Aug 2008
c. 29 Aug 2008 d. 31 Aug 2008

20 SEBI granted the final approval for trading in derivatives to NSE and BSE on
_________.
a. 25 June 2000 b. 25 July 2000
c. 25 May 2000 d. 25 Aug 2000
21 Trading in derivatives provide following two important functions
_________________.
a. Value and Wealth Discovery b. Price & Wealth Discovery
c. Price Discovery and Price Risk d. Wealth Assessment and Price
Management Discovery

22 A ____________ is an agreement wherein two parties agree to exchange two

different streams of cash flows over a definite period of time on pre-determined
terms.
a. Swap b. Options
c. Futures d. CFD

23 Price Discovery is mechanism by which a _____________ is determined by the

large number of participants in the derivative markets.
a. True Value Price b. Fair Value Price
c. Market Value Price d. Expected Value Price

24 Hedging is a tool for ________ risk

a. Managing b. Taking
c. Ignoring d. Eliminating

25 A person holding underlying asset is said to be ___________ in spot market

a. Short b. Weak
c. Strong d. Long

26 ______________ provides perfect hedge

a. Options b. Forwards
c. Swaps d. Futures

27 In diagonal spread an investor simultaneously buys and writes an option of

_________.
a. Same Expiration Dates b. Same Exercise Price
c. Same Option Price d. None of Above

28 In Horizontal spread an investor simultaneously buys and writes an option of

same type i.e. either calls or puts with same exercise price but ____________.
a. Different Expiration Dates b. Different Exercise Prices
c. Different Option Price d. Same Exercise Price

29 In vertical spread an investor simultaneously buys and sells an option with same
expiration date but _________.
a. Different Expiration Dates b. Different Exercise Prices
c. Different Option Price d. Same Exercise Price

30. ____________ options instead of having a single exercise date has set of
predetermined discrete exercise dates and the option can be exercised on those
dates only.
a. American b. European
c. Asian d. Bermudan
31 ______________ options can be exercised on any day between option purchase
date and the expiration date.
a. American b. European
c. Asian d. Bermudan

32 ______________ options can be exercised on the expiration date only.

a. American b. European
c. Asian d. Bermudan

33 An option is an agreement between two parties, which gives the buyer of the
option ________________, to buy or sell pre-decided quantity and quality of an
underlying asset.
a. The right & Obligation b. The Right & Not Obligation
c. The obligation and not right d. Neither right nor obligation

34 On the due date, the buyer of the option _____________.

a. Transfer Rights b. Exercise Rights or lapse it
c. Cancels the right d. Carries forward the right

35 _______________ is a contract in which option buyer has right to sell the

underlying asset at the exercise price
a. American Option b. Call Option
c. Bermuda Option d. Put Option

36 _______ is the rate of change of option price with respect to the price of the
underlying asset.
a. Delta b. Gamma
c. Rho d. Theta

37 __________ is the rate of change of the option's Delta (Δ) with respect to the
price of the underlying asset.
a. Gamma b. Vega
c. Rho d. Theta

38 Mr Damani sells a Call Option on Stock ABC Ltd by paying option premium of
Rs 4 having exercise price of Rs. 60. Calculate Net Profit/Loss when Spot Price
is Rs 70
a. Loss of Rs 6 b. Profit of Rs 20
c. Loss of Rs 100 d. Loss of Rs 60

39 Mr Tima buys a Put Option on Stock ABC Ltd by paying option premium of Rs
3 having exercise price of Rs. 50. Calculate Net Profit/Loss when Spot Price is
Rs 40
a. Loss of Rs. 7 b. Profit of Rs 10
c. Loss of Rs 10 d. Profit of Rs 7

40 Suppose Mr Y sell Futures Contract on shares of Wipro Ltd at a strike price of

Rs 750/- per share. Suppose the spot price is Rs. 1050. What is the profit/loss to
Mr. Y
a. Loss of Rs 250 b. Profit of Rs 300
 c. Profit of Rs 250 d. Loss of Rs 300

41 Suppose Mr X buys Futures Contract on shares of Infosys Ltd at a strike price of

Rs 800/- per share. Suppose the spot price is Rs. 1000. What is the profit/loss to
Mr. X
a. Loss of Rs 150 b. Profit of Rs 150
c. Loss of Rs 200 d. Profit of Rs 200

42 Suppose Mr Amit buys Futures Contract on shares of Reliance Ltd at a strike

price of Rs 800/- per share. Suppose the spot price is Rs. 750. What is the
profit/loss to Mr. Amit
a. Profit of Rs 100 b. Profit of Rs 50
c. Loss of Rs 100 d. Loss of Rs 50

43 Suppose Mr Jijo sell Futures Contract on shares of L&T Ltd at a strike price of
Rs 650/- per share. Suppose the spot price is Rs 550/- What is the profit/loss to
Mr. Jijo
a. Loss of Rs 200 b. Profit of Rs 200
c. Loss of Rs 100 d. Profit of Rs 100

44 Mr Amit buys a Call Option on Stock ABC Ltd by paying option premium of Rs
3 having exercise price of Rs. 50. Calculate Net Profit/Loss when Spot Price is
Rs 57
a. Profit of Rs 7 b. Loss of Rs 4
c. Loss of Rs 7 d. Profit of Rs 4

45 In context of Clearing houses of exchanges, SPAN Stands for ___________

a. Simple Portfolio Analysis of b. Simple Portfolio Analysis of
Risk Reward
c. Standard Portfolio Analysis of d. Standard Portfolio Analysis of
Risk Reward

46 Clearing House of exchanges in India uses the ________ system for the purpose
of margining, which is a portfolio based systems.
a. SNAP b. ASPN
c. SAPN d. SPAN

47 The best buy order is matched with ___________

a. Best Sell Order b. Nil Sell Order
c. Worst Sell Order d. Medium Sell Order

48 _______ consist of a set of data structures that allow members to develop his
own software to connect and transact with the Exchange.
a. MPI b. API
c. NPI d. BPI

49 Exchange also allows members to expand their trading facility using _______.
a. NPI b. MPI
c. API d. BPI
50 Exchanges in India provides a trading frontend ________ for trading to members
of the exchange.
a. AWS b. MWS
c. NWS d. TWS