Principle and Practices of Banking-03

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21. When a company issues shares to a select group of investor which is neither a public issue nor a rights issue, it is called

a. Bonus issue

b. Rights issue

c. Private placement

d. Qualified institutional placement

22. Which of the following is not correct in respect of targets within priority sector

a. Weaker section target for Indian banks is 25% of priority sector

b. Micro enterprises credit target is 7.5% of ANBC

c. Export credit is 12% of ANBC for Indian banks

d. Agriculture credit target is 45% of priority sector credit for Indian banks

23. The concept of ‘discovered price’ is used, in the context of:

a. Rights issue

b. Initial public issue

c. Book building issue

d. Bonus issue

24. In which of the following types of fund, the investment is made exclusively in govt. securities

a. Liquid funds

b. Gilt funds

c. Sector specific fund

d. Index fund

25. In the ______, the subscription and repurchase is available on a continuous basis

a. Growth fund

b. Open ended fund

c. Close ended fund

d. Debt oriented fund

26. The legal set up of a mutual fund is in the form of a

a. Joint stock company

b. Trust

c. Partnership firm

d. Limited liability partnership

27. When investment is made in other schemes of the same or different mutual funds, such fund is called

a. Index fund

b. Gilt fund

c. Fund of funds

d. Mutual fund

28. Which of the following statement is correct regarding premium on life insurance policies

a. The premium rates for with profit policy are higher than the premium for without profit policy

b. The premium rates for with profit policy are lower than the premium for without profit policy

c. The premium rates for with profit policy are equal than the premium for without profit policy

d. None of the statement is correct

29. Which of the statement is correct

a. To have tight control over insurance companies and ensure consumer protection

b. To promote market efficiency and to develop insurance market

c. To promote insurance market efficiency and ensure consumer protection

d. All the above

30. Which of the following transactions is backed by a letter of credit:

a. Factoring

b. Forfaiting

c. Securitization

d. Leasing

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