Sample Questions-Verbal Ability

1. Moon: Satellite:: Earth :? (A) Sun (B) Planet (C) Solar System (D) Asteroid 2. Forecast: Future: : Regret :? (A) Present (B) Atone (C) Past (D) Sins 3. Influenza: Virus: : Typhoid : ? (A) Bacillus (B) Parasite (C) Protozoa (D) Bacteria 4. Fear: Threat: : Anger : ? (A)Compulsion (B) Panic (C) Provocation (D) Force 5. Melt: Liquid: : Freeze : ? (A)Ice (B) Condense (C) Solid (D) Crystal 6. Clock: Time: : Thermometer : ? (A)Heat (B) Radiation (C) Energy (D) Temperature 7. Muslim: Mosque: : Sikhs : ? (A)Golden Temple (B) Medina (C) Fire Temple (D) Gurudwara 8. Paw: Cat: : Hoof : ? (A)Horse (B) Lion (C) Lamb (D) Elephant 9. Eye: Myopia: : Teeth : ? (A)Pyorrhea (B) Cataract (C) Trachoma (D) Eczema 10. Tractor: Trailer: : Horse : ? (A)Stable (B) Cart (C) Saddle (D) Engine 11. Arrange the words given below in a meaningful sequence. 1. Family 2. Community 3. Member 4. Locality 5. Country A. C. 3, 1, 2, 4, 5 3, 1, 4, 2, 5 B. D. 3, 1, 2, 5, 4 3, 1, 4, 5, 2

12. Arrange the words given below in a meaningful sequence. 1. Poverty 2. Population 3. Death 4. Unemployment 5. Disease A. C. 2, 3, 4, 5, 1 2, 4, 1, 5, 3 B. D. 3, 4, 2, 5, 1 1, 2, 3, 4, 5

13. Arrange the words given below in a meaningful sequence. 1. Leaf 2. Fruit 3. Stem 4. Root 5. Flower

A. C.

3, 4, 5, 1, 2 4, 1, 3, 5, 2

B. D.

4, 3, 1, 5, 2 4, 3, 1, 2, 5

14. Arrange the words given below in a meaningful sequence. 1. Nation 2. Village 3. City 4. District 5. State A. C. 2, 3, 4, 5, 1 1, 3, 5, 4, 2 B. D. 2, 3, 4, 1, 5 1, 2, 3, 4, 5

15. Arrange the words given below in a meaningful sequence. 1. Caste 2. Family 3. Newly married Couple 4. Clan A. C. 5. Species B. D. 3, 4, 5, 1, 2 4, 5, 3, 2, 1

2, 3, 1, 4, 5 3, 2, 1, 4, 5

16. Arrange the words given below in a meaningful sequence. 1. Cut 2. Put on 3. Mark 4. Measure 5. Tailor 17. Arrange the words given below in a meaningful sequence. 1. House 2. Street 3. Room 4. Town A. C. 5. District B. D. 3, 1, 4, 2, 5 3, 1, 2, 5, 4

3, 2, 1, 4, 5 3, 1, 2, 4, 5

18. A train always has A. C. Rails Guard B. D. Driver Engine

19. Which one of the following is always found in 'Bravery'? A. C. A. C. A. Experience Courage Word Musician Always B. D. B. D. B. Power Knowledge Chorus Tymbal Never

20. A song always has

21. Yesterday I saw an ice cube which had already melted due to heat of a nearby furnace.

C. A. C. A. C. A. C.

Often Cream Water Exchange Triviality Actors Sets

D. B. D. B. D. B. D.

Sometimes Curd Whiteness Sumptuousness Eloquence Story Director

22. What is found necessarily in milk?

23. Which one of the following is always with 'Bargain'?

24. Which one of the following a 'Drama' must have?

25. A boy is sitting at the back seat of a car. When the driver suddenly starts moving the car (in forward direction), the boy experiences a backward force? A. C. Always Often B. D. Never Sometimes

26. Which one of the following is always found in 'Wonder'? A. C. A. C. Crowd Astonishment Agents Exposition B. D. B. D. Lumber Rustic Display Secrets

27. Disclosure always involves

28. Pointing to a photograph of a boy Suresh said, "He is the son of the only son of my mother." How is Suresh related to that boy? A. C. Brother Cousin B. D. Uncle Father

29. If A + B means A is the mother of B; A - B means A is the brother B; A % B means A is the father of B and A x B means A is the sister of B, which of the following shows that P is the maternal uncle of Q? A. C. A. C. Q-N+MxP P-M+NxQ Brother Nephew B. D. B. D. P+SxN-Q Q-S%P Sister Cannot be determined

30. If A is the brother of B; B is the sister of C; and C is the father of D, how D is related to A?

Sample Questions-Finance
1. Which one of these is basically interested in the solvency position of the organization.

[A] Commercial bankers [B] Financial institutions lending long term finance [C] Government authorities [D] Lenders of short term finance
2. The basic objective of __________ management is to reduce the operating cash requirement to the minimum possible extent without affecting the routine transactions.

[A] Asset [B] Fund [C] Sales [D] Cash

3. The disadvantage of a Partnership firm is

[A] Separate legal existence [B] Unlimited liability [C] Separate property [D] Fund raising is easy
4. Variable working capital is

[A] The minimum working capital required to be maintained in the business on permanent or uninterrupted basis [B] The maximum working capital required to be maintained in the business on

permanent or uninterrupted basis [C] The working capital required over and above the permanent working capital [D] The working capital which will be definitely financed by the bank
5. Proprietary ratio indicates the relationship between the owners funds and

[A] Total assets [B] Sales [C] Profits [D] External liabilities
6. The stock dividends are more expensive to administer as compared to cash dividends.

[A] True [B] False

7. ___________ is a good indicator of the stock market behaviour.

[A] Reliance [B] TISCO [C] Infosys [D] Nifty index

8. Which amongst these is not a Debt market instrument?

[A] Public Sector Units bonds [B] Corporate Securities [C] FIIs [D] Government Securities
9. What is the dividend yield of ABC Co Share having a face value of Rs 100, market value of 360 and an annual dividend of Rs 10?

[A] 0.01 [B] 0.0277 [C] 0.1 [D] 0.04

10. At 8% annual inflation rate, an item costing Rs. 100 today, would cost Rs. _______ after one year.

[A] Rs. 108

[B] Rs. 118 [C] Rs. 208 [D] Rs. 98

11. Which of the following is not true about offer of shares through normal public issue?

[A] In normal Public issue, investors bid for shares at the floor price or above and after the closure of the process the price is determined for allotment of shares. [B]I n case of the normal public issue the demand for an issue is known at the close of the issue. [C]I n case of offer of shares through normal public issue price at which securities will be allotted is known to an investor in advance . [D] None of the above
12. Return on Total Asset is equal to __________.

[A] Gross Income/Average Total Asset [B] Average total asset/Gross Income [C] Return on Equity/Average total Asset [D] Net income /Average Total Asset
13. Capital Employed is equal to _________.

[A]Fixed Assets + Current Assets +Current Liabilities [B]Fixed Assets + Current Assets - Current Liabilities [C]Fixed Assets - Current Assets + Current Liabilities [D]Fixed Assets - Current Assets - Current Liabilities

14. Depositories are like banks for securities.

[A]TRUE [B]FALSE [C]Dormant Funds [D]None of the above

15. Which of the following is not a benefit of investing in mutual funds?

[A]Investment in Mutual funds leads to diversification of holdings. [B]Mutual funds are managed by professional fund managers. [C]Mutual Funds regularly provide investors with information on the value of their investments. [D]None of the above
16. How many securities are there in Nifty index?

[A]30

[B]100 [C]500 [D]50

17. Which of the following is TRUE about Primary Markets?

[A]Primary Markets are markets where commodities are sold. [B]Primary Market is the place where public can buy and sell securities from one another. [C]Primary Markets refer to the mobilization of funds from the public by corporates through the issue of shares / debentures. [D]Primary Markets are places where only short term instruments are traded.
18. Money market mutual funds can invest in _______.

[A]treasury bills [B]certificate of deposits [C]commercial paper [D]All of the above

19. What factor/s affect the interest rate?

[A]Government borrowings [B]Supply of money [C]Inflation rate [D]All of the above

20. What is the present value of Rs 10000 receivable after 1 year discounted at 10% p.a.?

[A]11000 [B]10000 [C]9000 [D]9090.9

21. ________________ is maintained by NSE to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the Exchange.

[A]Investor Education and Reimbursement Fund (IERF) [B]Investor Reimbursement Fund (IRF) [C]Investor Education and Protection Fund (IEPF) [D]Investor Protection Fund (IPF)
22. _______ funds do not have a fixed date of redemption.

[A]Open ended funds [B]Close ended funds [C]Diversified funds

[D]Both A and B
23. Which instrument among these have historically shown to give the highest returns when invested over long periods?

[A]Debentures [B]Equity [C]Fixed Deposit [D]Bank Deposit

24. Profit and Loss account of a company shows _______.

[A]The revenues and expenses during particular period of time. [B]The revenues and expenses of the company at a particular point of time. [C]The financial position of the company at a particular point of time. [D]None of the above
25. 'Bid' means the _____________.

[A]Seller's price [B]Traded Price [C]Market price [D]Buyer's price

26. What are the segments of Securities Market?

[A]Primary market and Secondary market [B]New issues market [C]Primary market [D]Secondary market
27. Which of the following is not true about ADR?

[A]ADR represents the foreign shares of the company held on deposit by a custodian bank in the company's home country. [B]ADRs may be used in public or private markets inside or outside US. [C]ADRs do not eliminate the currency risk associated with an investment in a non-U.S. company. [D]An ADR is a U.S. dollar denominated form of equity ownership in a non-U.S. company.
28. An investment should provide an after-tax return which is ________.

[A]at least higher than the rate of inflation [B]less than the rate of inflation [C]equal to the rate of inflation [D]None of the above
29. A repo is a

[A]Security which is traded in the stock market [B]Contract to buy a specific security at a future date at the price on that date [C]Contract which gives the holder an option to buy a specific security in future at the

predetermined price [D]Contract in which one party sells a specific security to another party with an agreement to buy it back on a specified future date at a specified price

30. Which of the following is not a feature of Certificate of Deposit (CD)?

[A]It is issued at a discount to face value [B]It is issued in bearer form only [C]It is a document of title to a time deposit [D]It has virtually no default risk
31. Which of the following situations lead to the increase in volatility in the call money market?

[A]Reduction in cash reserve ratio [B]Prepayment of term loans by a large number of borrowers [C]Entry of the Financial Institutions (FIs) into the market [D]Payment of large amount of advance taxes by the banks and FIs
32. Which of the following is not a spontaneous source of financing current assets?

[A]Accrued wages and salaries [B]Provision for dividends [C]Provision for taxes [D]Cash credits/Over drafts
33. Which of the following is an example of systematic risk?

[A]Risk of non-availability of a major raw material to a company making aluminum bars [B]Death of the finance manager of a company providing financial services [C]Unexpected entry of a multi-national company in the tea industry [D]Reduction of tax rate by the government
34. The holders of which instrument are members of the company and have voting rights?

[A]Treasury Bill [B]Commercial Paper [C]Debenture [D]Equity

35. _____________ gives the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date.

[A]Put Option [B]Forward [C]Future [D]Call Option

36. Nifty index is used in _________.

[A]Derivatives [B]Index Funds

[C]Exchange Traded Funds (ETFs) [D]All of the above

37. Covered Interest Rate Parity does not hold good because of which of the following factors?

I. Transaction costs II. Political risks III. Taxes IV. Liquidity preference V. Capital controls [A]Both (I) and (II) above [B]Both (III) and (IV) above [C]Both (I) and (V) above [D]All (I), (II), (III), (IV) and (V) above
38. Which of the following trade theories focuses on factor endowments of the trading nations?

[A]The Theory of Absolute advantage [B]The Theory of Comparative advantage [C]The Heckscher-Ohlin theory [D]The International Product Life Cycle theory
39. In the true context which of the following is transferred in a Foreign Exchange market?

[A]Currency [B]Rate [C]Assets [D]Purchasing power

40. The sinking fund factor is the inverse of

[A]Capital Recovery Factor [B]Future Value Interest Factor [C]Future Value Interest Factor for Annuity [D]Present Value Interest Factor for Annuity