Finance MCQ-2 for SEBI Grade A | Finance Quiz SEBI 2021

September 11, 2021
Finance MCQ for SEBI Grade A

Dear aspirants,
We are presenting you the Finance MCQ-2 for SEBI Grade A Finance Section of the exam. These Finance MCQ-2 for SEBI Grade A are prepared as per latest syllabus.

Q1. If the interest rate of Fixed Deposit increases, then what will be the effect on bond?

  1. Price of Bond will increase
  2. Price of Bond will decrease
  3. Maturity time of Bond will increase
  4. Maturity time of Bond will decrease
  5. None of the above

Answer: (2)
If FD interest increases then people will be attracted towards bank. Consequently, the demand of bonds in the secondary market will decrease leading to decrease in price of bond

Q2. The Fiscal Responsibility and Budget Management (FRBM) Act aimed for
         1. Reducing fiscal deficit
2. Giving flexibility to RBI for inflation management.

Which of the statements given above is/are correct?

  1. a only
  2. b only
  3. Both a and b
  4. Neither a nor b
  5. either a or b

Answer: (3)

Q3. Which challan is used to pay Banking cash Transaction Tax?

  1. ITNS 280
  2. ITNS 281
  3. ITNS 282
  4. ITNS 283
  5. ITNS 284

Answer: (4)

Q4. Under which section of Income tax Act a senior citizen of the age of 75 years or above and having only pension income is exempt for filling Income Tax Return?

  1. 192
  2. 194-LB
  3. 194-P
  4. 194-IA
  5. 195

Answer: (3)
194-P – TDS on Senior Citizen above 75 Years – senior citizen of the age of 75 years or above and having only pension income is exempt for filling Income Tax Return

ITNS-280 Income Tax
ITNS-281 T.D.S./TCS TAX CHALLAN
ITNS-282 SECURITIES TRANSACTION TAX
ITNS-283 BANKING CASH TRANSACTION TAX
ITNS-284 For UNDISLCOSED FOREIGN INCOME AND ASSETS
ITNS-285 EQUALISATION LEVY CHALLAN
ITNS-286 INCOME DECLARATION SCHEME,2016 CHALLAN
ITNS-287 TAXATION AND INVESTMENT REGIME FOR PRADHAN MANTRI GARIB KALYAN YOJNA, 2016

Q5. ________refers to converting retail loans into whole sale loan and their reconverting into retail loans. This enables loans to be transferable in form of small securities like negotiable instruments in the secondary market

  1. Debt Securitization
  2. Convertible Debt
  3. Wholesale Debt
  4. Money Market Debt
  5. Yielding Debt.

Answer: (1)
Debt Securitization refers to converting retail loans into whole sale loan and their reconverting into retail loans. This enables loans to be transferable in form of small securities like negotiable instruments in the secondary market

Q6. _______ is a long-term risk capital to finance high technology projects which involve risk but at same time has strong potential for growth

  1. Venture capital
  2. Hedge finance
  3. Merchant banker
  4. Hire purchaser
  5. Mutual Fund

Answer: (1)
Venture capital (VC) is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential.

These MCQs are prepared by CA Raman Luthra Classes. Subscribe the SEBI Grade A Course by CA Raman Luthra Classes to prepare for SEBI Grade A 2021 exam. Use Coupon Code PTY10 to get instant 10% discount on the course.

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