Author name: Administrator

2273. Merrill Lynch, Morgan Stanley and Credit Suisse Group plan for raising capital is classified as

investment banking houses
exchange houses
transfer houses
foreign exchange houses
✅ The correct answer is A.
Merrill Lynch, Morgan Stanley and Credit Suisse Group plan for raising capital is classified as investment banking houses. Investment banking is a special segment of banking operation that helps individuals or organisations raise capital and provide financial consultancy services to them.

2274. Insurance benefits replace

All physical losses, in full
All physical losses, partly
All monetary losses, in full
The monetary losses, but only to some extent
✅ The correct answer is D.
Insurance benefits replace the monetary losses, but only to some extent.

2277. Idle time is ________.

time spent by workers in factory
time spent by workers in office
time spent by workers off their work
time spent by workers on their job
✅ The correct answer is C.
Idle time is time spent by workers off their work. Idle time is unproductive time on the part of employees or machines caused by management or as a result of factors beyond their control. Idle time is the time associated with waiting, or when a piece of machinery is not being used but could be.

2263. An inflation rate including in quoted interest rate on security, is inflation rate

expected over security life
expected at deferred call
at bond issuance
expected at time of maturity
✅ The correct answer is A.
An inflation rate including in quoted interest rate on security, is inflation rate expected over security life. Inflation is measured in a variety of ways depending upon the types of goods and services considered and is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0 percent.

2265. According to put call parity relationship, call option plus present value of exercise price minus stock is to calculate

present value of option
call option
put option
future value of option
✅ The correct answer is C.
According to put call parity relationship, call option plus present value of exercise price minus stock is to calculate put option. A put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.

2271. Which of the following statements is not correct?

One should avail potential tax saving opportunities
Purpose of tax saving is to minimize taxes and not to evade them
Tax planning helps to gain maximum advantage of tax laws
Tax planning is illegal in India
✅ The correct answer is D.
Tax planning is not illegal in India. When tax planning is done inside the frameworks defined by the respective authorities, it is fully legal and in fact a smart decision. However, using shady techniques to avoid tax payments is illegal.

2272. A project which have one series of cash inflows and results in one or more cash outflows is classified as

abnormal costs
normal cash flows
abnormal cash flow
normal costs
✅ The correct answer is B.
A project which have one series of cash inflows and results in one or more cash outflows is classified as normal cash flows. Normal cash flow is the cash flow stream that comprises of initial investment outlay and then positive net cash flow throughout the project life. It is also called conventional cash flow stream.

2256. Rate of return (in percentages) is consists of

capital gain yield interest yield
return yield + stable yield
return yield + instable yield
par value + market value
✅ The correct answer is A.
Rate of return (in percentages) is consists of capital gain yield interest yield. A rate of return (RoR) is the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s initial cost.
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