1.

Total Assets - $2,400,000 Deposits - $1,600,000 Net Worth - $500,000 Advances -

$850,000 Investments - $600,000 Using the aforementioned figures, Calculate
Investment to Deposit Ratio (IDR).

a.  0.25

b.  0.375

c.  0.705
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
2. Capital investment declines when interest rates are

a.  Higher

b.  Constant

c.  Lower
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
3. In high interest rate environment, which sector will have negative impact?

a.  Banking Sector

b.  Both

c.  Automobile Sector
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
4. In low inflation environment, Manufacturing Companies will?

a.  Borrow more from Banks for expansion as finance cost will be lower

b.  Not focus on expansion as finance cost will be lower

c.  Not focus on expansion as finance cost will be higher

I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
5. Which Sector will be least beneficial in low interest rate environment?

a.  Automobile Sector
 b.  Banking Sector

c.  Cement Sector
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
6. Interest rates are expected to increase by 100bps. This will have positive impact
on:

a.  Real Estate

b.  Money Market

c.  Equity Market
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
7. Suppose a firm requires loan of $25Mn at a price of 3M LIBOR + 0.4% for 7
years. Collateral will be charge on Fixed Assets with Security Margin of 25%.
What will be the security charge amount for this loan?

a.  $100Mn

b.  $6.25Mn

c.  $33.33Mn
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
8. In the next 2 years, interest rates are expected to increase sharply. This will
have negative impact on:

a.  Commodities

b.  Real Estate

c.  Money Market
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
9. Which Sector will be most beneficial in low interest rate environment?

a.  Both

b.  Banking Sector
 c.  Fertilizer Sector
I MP AC T OF D R - MC QS
MCQ S
MARKS : 1.5
10. Interest rates are expected to decline by 200bps. This will have positive impact
on:

a.  Equity Market

b.  Bond Market

c.  Money Market