VIDYA SAGAR

CAREER INSTITUTE LIMITED

CA FOUNDATION
"BUSINESS ECONOMICS"

MINOR TEST – 1
Time : 1 Hours Maximum Marks: 50
(76-100% Course) Date : 02.10.2023
Batch – 11 - 14 (Vol 25) (Nov - 2023)
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Instruction:
1. Use HB Pencil to fill ovals for correct answer.
2. Each question carry one mark.
3. Negative marking .25 marks for each wrong answer.
4. No negative marking for unattempted questions.
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51. The process of economic liberalization in India began in
(a) 1990 (b) 1989
(c) 1991 (d) 1948

52. SEBI passes rulings and orders in its —

(a) Judicial Capacity (b) Legislative capacity
(c) Executive Capacity (d) None

53. Highest price the buyer IS willing to pay IS called

(a) bid (b) ask
(c) badla (d) beta

54. In 1991, times there is an Act to discourage the concentration of Economic power—
(a) Competition commission of India
(b) Monopolistic Restrictive Trade Practices Act
(c) Competition Act
(d) None

55. ADR stands for

(a) American deficit record (b) American depository receipt
(c) asset depreciation record (d) Asset depository receipt

56. A security whose price is derived from one or more underlying assets
(a) Defensive stock (b) Derivatives
(c) Equity (d) Government Bonds

57. Apex authority for setting rules of the Non-financial markets —

(a) RBI (b) SEBI
(c) CCI (d) IRDAI

58. Which of the following statements about RBI is Incorrect

(a) It deals largely with government and private sector banks.
(b) It's role is to ensure monitoring stability including stability of domestic price levels.
(c) One of its mission is to protect the interest of policy holders.
(d) RBI is the sole authority for issue of currency in India.
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59. The Government Policies are “Sine qua non” for all spheres of the economy. The term “Sine qua
non” means:
(a) Indispensible (b) Universal
(c) Robust (d) Applicable

60. There have been monumental efforts in changing the post-indepen-dence policies specially in
1991. These efforts are Commonly referred to as:
(a) LPG (b) SEC
(c) RRB (d) None of the above

61. The lowest price at which an owner is willing to sell his security is:
(a) Bid (b) ASK
(c) Cags (d) Sale value

62. It is the amount of revenue from sales which exactly equals the amount of expense.
(a) Breakeven point (b) Total revenue
(c) Both (a) and (b) (d) None of these

63. A facility by which investor are in position to buy/ sell all 30 scrips in one go.
(a) Trading window (b) Nifty 50
(c) Margin Trading (d) Basket Trading

64. When transaction involves one settlement period to the next.

(a) Beta (b) Price Skimming
(c) Badla Charges (d) Badla

65. _____ it is a measurement of relationship between stock price of any particular stock and the
movement of whole market.
(a) Badla (b) Beta
(c) Brokerage (d) None

66. A stock that provides a constant dividends and stable earnings even in the periods of economic
downturn is __________.
(a) Defensive Stock (b) Cash “budget
(c) Income stock (d) Listed stock

67. ____________ helps create and grow young business by providing them with necessary support and
financial and technical services.
(a) Business facilitator (b) Business Incubator
(c) Business Consultant (d) Business merchandiser

68. The _________ is regarded as the watershed development in business facilitation in India.
(a) Economy Policy of 1951 (b) Economic Policy of 1956
(c) Economic Policy of 1991 (d) Economic Policy of 2015

69. Which condition, or which is not true out of options about bank rate?
(a) It is called discount rate
(b) It is different from repo rate
(c) SEBI influences the interest rates through bank rate.
(d) Higher bank rate will translate to higher lending rates by the banks.

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70. The maximum brokerage chargeable is determined by —
(a) Stock Exchange (b) SEBI
(c) Company (d) By (c) or (d)

71. One percent is equivalent to ________ basis points.

(a) 01 (b) 10
(c) 50 (d) 100

72. The first industrial policy in the year of —

(a) 1950 (b) 1948
(c) 1956 (d) 1991

73. A very large loan extended by a group of small banks to a single corporate borrower IS called
as which of the following
(a) Time deposit (b) Long term loan
(c) Annuities (d) Syndicated loan

74. Which of the following is type of public policies

(a) Facilitative policy (b) regulatory policy
(c) Restrictive policy (d) all of these

75. Nabard is the most important institution in the country which looks after the —
(a) Cottage industry (b) Small industry
(c) Village industry (d) All of the above

76. The rate at which Bank borrows money from the RBI against pledging or Sale of Government
Securities to RBI is known as:
(a) Repo Rate (b) Reserve Repo Rate
(c) Discount Rate (d) Bank Rate

77. ________ is the rate of Interest offered by RBI, when bank deposit their surplus funds with the RBI
for short periods.
(a) Repo Rate (b) Reserve Repo Rate
(c) Discount Rate (d) Bank Rate

78. Which of the following is not implied by liberalisation

(a) Decontrol
(b) Deregulation
(c) general broadening of the freedom of enterprise
(d) Disinvestment of public sector enterprises

79. The Central Board of Directors of RBI is appointed by:

(a) Central Government (b) Ministry of Finance
(c) Finance Minister (d) None of the above

80. Who was the regulatory body for controlling financial affairs in India before SEBI?
(a) Controller of Capital Issues
(b) Reserve Bank of India
(c) Insurance Regulatory and Development Authority of India
(d) Government of India

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81. When two or more companies come together to expand the business operation
(a) Joint venture (b) acquisition
(c) Consolidation (d) Merger

82. SEBI has to be responsive to the needs of groups which constitute the market
(a) issuers of securities (b) investor
(c) the market intermediaries (d) all of the above

83. The Conducive policies towards the development of Micro-Small- Medium Enterprises are an
example of _________ policy.
(a) Restrictive (b) Regulatory
(c) Facilitating (d) Liberal

84. FEMA replaced FERA in _________.

(a) 2004 (b) 2000
(c) 1991 (d) 1999

85. What is the meaning of arbitrage?

(a) Buying & selling of different commodities
(b) Simultaneous buying & selling of identical commodities
(c) Only buying of identical commodities
(d) Selling of identical commodities only

86. A loan where the time and cash flow between a short term loan and a long term loan is filled up
is called as which of the following
(a) basis point (b) B . cap
(c) Annuities (d) Bridge financing

87. What is price sensitivity?

(a) The effect a change in price will have on customers.
(b) Charging a relatively high price for a short time where a new, innovative, or much- improved
product is launched onto a market.
(c) A strategy involves setting lowr prices in order to discourage or deter potential new entrants
to the suppliers market.
(d) It measures the responsiveness of a change in demand for a product following a change in its own
price.

88. Which of the following Institutions converted into a non Banking Finance Company
(a) IFCI (b) IDBI
(c) APEX BANK (d) CCI

89. __________ is the process of comparing the products and services of a business against those of
Competitors in a market, or leading businesses in other markets, in order to find ways of
improving quality and performance.
(a) Benchmarking (b) Standard Setting
(c) Variance Analysis (d) None of these

90. __________ is the use of technologies such as the internet, electronic data exchange and industry
extranets to streamline business transactions.
(a) E-Commerce (b) E-Streaming
(c) E-Marketing (d) None of these

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91. SLR and CRR are ____________ type of credit control
(a) Preliminary (b) Regulative
(c) Qualitative (d) Quantitative

92. __________ represents the amount that is required to be main-tained by every scheduled Bank with
RBI.
(a) Cash Reserve Ratio (b) Statutory Liquidity Ratio
(c) Repo rate (d) Reserve Repo Rate

93. What is a cap?

(a) A cap is a limit that regulates the increase or decrease in the rate of interest and instalments of an
adjustable rate mortgage.
(b) A cap is the total amount of cash that is present in the bank account and can also be withdrawn
immediately.
(c) A cap is the certificate of savings deposit that promises the depositor the sum back along with
appropriate interest.
(d) A cap is a loan where the time and cash flow between a short term loan and a long term loan is
filled up.

94. When the account holder of a bank withdraws his own money by card swiping, such card is
called as:
(a) Debit Card (b) Credit Card
(c) Swipe Card (d) None of these

95. A document is issued by a bank, on behalf of the buyer or the importer, stating its commitment to
pay a third party (Seller or the exporter), a specific amount, for the purchase of goods by its
customer, who is the buyer. Such document is called as:
(a) Letter of Guarantee (b) Letter of Credit
(c) Letter of import (d) None of these

96. The RBI use Credit Control Technique—

(a) Qualitative Technique (b) Quantitative Technique
(c) Both (A) and (B) (d) None

97. ________ involves charging a relatively high price where a new, innovative product is launched.
(a) Pre-emptive Pricing (b) Price discrimination
(c) Price sensitivity (d) Price skimming

98. The expectation of comparatively small market segments by business that decide to concentrate
their efforts is called
(a) Niche marketing (b) Mass marketing
(c) Market segmentation (d) Market Positioning

99. Where can the first appeal against SEBI be made

(a) high court (b) Supreme court
(c) Securities Appellate Tribunal (d) RBI

100. A guarantee given by the lender that there will be no change in the quoted mortgage rates for a
specified period of time, which is called the __________.
(a) Lock-in period (b) Maturity
(c) Holding Period (d) Due date

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