What do you mean by money market
Financial Services
Multiple Choices:
Q1. NBFS stands for ___________
Q2. ALCO is a decision making unit responsible for balance sheet planning from risk return
perspective. (T/F)
Q3. A contract of „Indemnity‟ is one whereby:
a. A person tries to use the other‟s property
b. A person promises to save the other‟s property from loss caused.
c. A person tries to trick the property of other for some other person.
d. None
Q4. The transaction between the lessor and the lessee being a demand sale is called__________
a. First sale
b. Second sale
c. Third sale
d. Fourth sale
Q5. Which of the following is comes under mutual funds?
a. Open-end funds
b. Closed-end funds
c. Both (a) & (b)
d. None
Q6. Concept of leasing involves:
a. Lessor
b. Lessee
c. None
d. All
Q7. CRISIL stands for____________
Q8. ____________are issued by the government for period ranging from 14 days to 364 days
through regular auctions.
a. Treasury Bills
b. Commercial Papers
c. Call Money Market
d. one
Q9. The practice of discounting accommodation bills is known as _____________
Q10. HUDCO stands for ____________
Part Two:
Q1. Explain about SEBI guidelines to merchant bankers.
Q2. List the different types of Factoring.
Q3. Write a short note on venture capital in India.
Q4. Write a short note on Depositories.
END OF SECTION A
Caselet 1
Q1. Required The CFO of Sunlight Industries seeks your advice as a financial consultants on the alternative proposals. What advice would you give? Why? Calculations can be upto one digit only.
Caselet 2
Q1. Assume that the two firms are in the process of negotiating a merger through an exchange of equity shares. You have been asked to assist in establishing equitable exchange terms, and are required to:
(i) Decompose the share prices of both the companies into EPS and P/E components, and also segregate their EPS figures into return on equity (ROE) and book value of intrinsic value per share (BVPS) components.
(ii) Estimate future EPS growth rates for each firm.
(iii)Based on expected operating synergies, A Ltd estimates that the intrinsic value of T‟s equity share would be Rs 20 per share on its acquisition. You are required to develop a range of justifiable equity share exchange ratios that can be offered by A Ltd‟s shareholders.
Based on your analysis in parts (i) and (ii), would you expect the negotiated terms to be closer to the upper, or the lower exchange ratio limits? Why?
(iv) Calculate the post-merger EPS based on an exchange ratio of 0.4 : 1 being offered by A Ltd. Indicate the immediate EPS accretion or dilution, if any, that will occur for each group of shareholders.
(v) Based on a 0.4 :1 exchange ratio, and assuming that A‟s pre-merger P/E ratio will continue after the merger, estimate the post-merger market price. Show the resulting accretion or dilution in pre-merger market prices.
END OF SECTION B
Q1. What do you mean by money market? Discuss money market instruments in detail.
Q2. What is leasing? Explain about the advantages and disadvantages of lease finance.
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