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Created on April 18, 2026 By

CA Sonal Saboo

CMA Inter

Inter FMDA PN-11 Quiz 8

This quiz is based on the CMA Financial Management and Business Data Analytics paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA FMDA concepts.

1 / 25

Category: Financial Management and Business Data Analytics PN-11

1. A major characteristic of hedge fund returns is:

a. Guaranteed fixed returns

b. High correlation with equity markets

c. Consistency of returns and capital preservation

d. Government-backed guarantees

2 / 25

Category: Financial Management and Business Data Analytics PN-11

2. Compared to mutual funds, hedge funds are:

a. More regulated

b. Less regulated

c. Equally regulated

d. Regulated by RBI

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Category: Financial Management and Business Data Analytics PN-11

3. How can an Angel Fund raise money?

a. Through bank loans

b. By issuing shares to the public

c. By issuing units to angel investors

d. By crowdfunding platforms

4 / 25

Category: Financial Management and Business Data Analytics PN-11

4. IRDA has the power to specify how insurers should:

a. File for bankruptcy

b. Maintain and report their accounts

c. Manage real estate

d. Issue credit cards

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Category: Financial Management and Business Data Analytics PN-11

5. Who supervises the functioning of the Tariff Advisory Committee?

a. LIC

b. RBI

c. SEBI

d. IRDA

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Category: Financial Management and Business Data Analytics PN-11

6. Which of the following is empowered to issue, renew, modify, suspend, or cancel registration certificates of insurers?

a. IRDA

b. SEBI

c. RBI

d. LIC

7 / 25

Category: Financial Management and Business Data Analytics PN-11

7. The increasing importance of the foreign exchange market in India is due to:

a. A decline in international investments

b. India's isolation from global markets

c. Restriction on currency exchange

d. Increased trade and capital flows

8 / 25

Category: Financial Management and Business Data Analytics PN-11

8. Who is the sole authority for issuing currency notes in India?

a. Ministry of Finance

b. State Bank of India

c. Reserve Bank of India

d. Indian Banks’ Association

9 / 25

Category: Financial Management and Business Data Analytics PN-11

9. What is the main purpose of Open Market Operations (OMO)?

a. To fund government spending

b. To control stock market volatility

c. To regulate medium-term liquidity in the economy

d. To provide long-term capital to banks

10 / 25

Category: Financial Management and Business Data Analytics PN-11

10. An increase in Repo Rate by RBI is generally aimed at:

a. Controlling inflation by making borrowing costlier

b. Encouraging borrowing by banks

c. Boosting exports

d. Reducing the cash reserve ratio

11 / 25

Category: Financial Management and Business Data Analytics PN-11

11. What does the Liquidity Adjustment Facility (LAF) primarily deal with?

a. Managing long-term loans to the government

b. Daily liquidity injection and absorption through repo and reverse repo

c. Regulating foreign exchange reserves

d. Issuing new currency notes

12 / 25

Category: Financial Management and Business Data Analytics PN-11

12. What is the purpose of maintaining CRR?

a. To increase bank profits

b. To control inflation only

c. To ensure banks have enough cash to meet withdrawal needs

d. To promote stock market investments

13 / 25

Category: Financial Management and Business Data Analytics PN-11

13. Which of the following assets can be used to maintain Statutory Liquidity Ratio (SLR)?

a. Personal loans

b. Government securities, cash, and gold

c. Real estate investments

d. Corporate shares

14 / 25

Category: Financial Management and Business Data Analytics PN-11

14. Which of the following is an example of a sector that may receive refinance support from RBI?

a. Real estate

b. Film industry

c. Retail trade

d. Export sector

15 / 25

Category: Financial Management and Business Data Analytics PN-11

15. What is the primary role of the Reserve Bank of India (RBI)?

a. To collect taxes from citizens

b. To maintain India’s monetary and financial stability

c. To manage public sector banks

d. To regulate stock markets

16 / 25

Category: Financial Management and Business Data Analytics PN-11

16. Which of the following is an example of a non-banking financial intermediary?

a. LIC (Life Insurance Corporation)

b. Reserve Bank of India

c. State Bank of India

d. Ministry of Finance

17 / 25

Category: Financial Management and Business Data Analytics PN-11

17. SPO refers to , the second and subsequent time a company raises money from the public directly.

a. Secondary Public Offering

b. Second Public Offering

c. Subsequent Public Offer

d. Subsequent Public Offering

18 / 25

Category: Financial Management and Business Data Analytics PN-11

18. Given: Beta = 1.2, Risk-free rate = 4%, Expected market return = 12%. What is the expected return on the security?

a. 12%

b. 10.40%

c. 13.60%

d. 15.20%

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Category: Financial Management and Business Data Analytics PN-11

19. What type of risk is caused by factors that affect the entire market or economy?

a. Unsystematic Risk

b. Credit Risk

c. Systematic Risk

d. Default Risk

20 / 25

Category: Financial Management and Business Data Analytics PN-11

20. If the future value remains the same, what happens to present value if the time period increases?

a. Present value decreases

b. Present value increases

c. Present value remains unchanged

d. Present value becomes zero

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Category: Financial Management and Business Data Analytics PN-11

21. What is the present value of ₹2,000 receivable 5 years from now at an 8% annual discount rate?

a. ₹ 1,500.00

b. ₹ 1,200.50

c. ₹ 1,361.73

d. ₹ 1,750.20

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Category: Financial Management and Business Data Analytics PN-11

22. In which situation is the time value of money most relevant?

a. Evaluating historical costs

b. Budgeting fixed expenses

c. Recording daily transactions

d. Comparing cash flows at different points in time

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Category: Financial Management and Business Data Analytics PN-11

23. What is a key assumption of the time value of money concept in financial decision-making?

a. The timing of cash flows affects their value

b. Cash flows occur at the same time

c. Money depreciates automatically

d. Interest rates have no impact on investment

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Category: Financial Management and Business Data Analytics PN-11

24. What is one reason profit maximization is criticized?

a. It enhances employee satisfaction

b. It increases the firm's equity base

c. It can lead to exploitation of workers and consumers

d. It ensures long-term sustainability

25 / 25

Category: Financial Management and Business Data Analytics PN-11

25. Why is it important for a firm to move far from the break-even point?

a. To increase tax liabilities

b. To attract new investors

c. To ensure survival against seasonal fluctuations

d. To avoid employee layoffs

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Inter PN-11 FMDA Quiz 8

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