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Created on March 13, 2026 By

CA Sonal Saboo

CMA Foundation

Foundation FBEM PN-4 Quiz 3

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

1 / 30

Category: Fundamental of Business Economics and Management PN-4

Manipulation in CRR enables the RBI to

a. Influence the lending ability of the commercial banks

b. Check unemployment growth

c. Check poverty

d. Increase GDP

2 / 30

Category: Fundamental of Business Economics and Management PN-4

EXIM Bank is authorized to raise loan from :

a. RBI

b. Government of India

c. International market

d. Trading activities

3 / 30

Category: Fundamental of Business Economics and Management PN-4

RBI was nationalized in:

a. June 1947

b. Jan. 1949

c. March 1954

d. April 1936

4 / 30

Category: Fundamental of Business Economics and Management PN-4

FERA has been replaced by:

a. FINA

b. FEMA

c. FENA

d. MRTP

5 / 30

Category: Fundamental of Business Economics and Management PN-4

Repo transaction means :

a. Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date

b. Sale of securities by the holder to the investor with the agreement to resell them at a predetermined rate and date.

c. Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date

d. Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate.

6 / 30

Category: Fundamental of Business Economics and Management PN-4

Reverse Repo transaction means :

a. Sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date

b. Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date

c. Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date

d. Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate

7 / 30

Category: Fundamental of Business Economics and Management PN-4

Given a reserve ratio of 20% in initial deposit of ₹1000 in a banking system would create secondary deposit of ₹

a. ₹ 3,000

b. ₹ 5,000

c. ₹ 4,000

d. ₹ 6,000

8 / 30

Category: Fundamental of Business Economics and Management PN-4

Money market deals with the

a. Short term credit

b. Long term credit

c. both A & B

d. None

9 / 30

Category: Fundamental of Business Economics and Management PN-4

Money market includes

a. Government securities

b. treasury bill

c. bills of exchange

d. All the above

10 / 30

Category: Fundamental of Business Economics and Management PN-4

In Indian money market, who are the main borrowers of short term funds

a. central government

b. State government

c. local bodies

d. All the above

11 / 30

Category: Fundamental of Business Economics and Management PN-4

Money market is controlled by

a. Government

b. R.B.I

c. S.B.I

d. all the above

12 / 30

Category: Fundamental of Business Economics and Management PN-4

In April 1999 the government of India introduced the bills for the period of

a. 91 days

b. 182 days

c. 364 days

d. None

13 / 30

Category: Fundamental of Business Economics and Management PN-4

In call money market funds are borrowed of rent without any security for the period of

a. one day

b. 14 days

c. a & b

d. NONE

14 / 30

Category: Fundamental of Business Economics and Management PN-4

If buyer of the goods is called

a. Drawer

b. drawee

c. payee

d. none

15 / 30

Category: Fundamental of Business Economics and Management PN-4

Certificate of deposits are issued by the banks to

a. individual

b. companies

c. P.S.U.S

d. All the above

16 / 30

Category: Fundamental of Business Economics and Management PN-4

Which are unsecured promissory notes

a. Commercial paper

b. Certificate of deposits

c. Treasury bills

d. All the above

17 / 30

Category: Fundamental of Business Economics and Management PN-4

Commercial banks provide collateral loans against

a. bonds

b. Govt. security

c. both A & B

d. None

18 / 30

Category: Fundamental of Business Economics and Management PN-4

Profit is the difference between

a. Total cost and total revenue

b. Total revenue and total cost

c. both A & B

d. None

19 / 30

Category: Fundamental of Business Economics and Management PN-4

The internal business environment includes factors such as :

a. business philosophy & business priorities

b. management structure

c. capital structure

d. All

20 / 30

Category: Fundamental of Business Economics and Management PN-4

The term ‘T’ in SWOT Analysis is :

a. Transparency

b. Total revenue

c. Threat

d. Transaction

21 / 30

Category: Fundamental of Business Economics and Management PN-4

The components of micro business environment are-

a. Firms and consumers

b. Market & competitors

c. Organization

d. All

22 / 30

Category: Fundamental of Business Economics and Management PN-4

The term ‘S’ in PESTEL stands for-

a. Strength

b. Socio-economic

c. Sustainability

d. None

23 / 30

Category: Fundamental of Business Economics and Management PN-4

VUCA is an acronym , first used in :

a. 1984

b. 1987

c. 1997

d. 1992

24 / 30

Category: Fundamental of Business Economics and Management PN-4

In PESTEL Analysis, government policy, political stability or instability, corruption, foreign trade policy, tax policy, labour law, trade restrictions etc. are related to:

a. Political factors

b. Economic factors

c. Environmental factors

d. Legal factors

25 / 30

Category: Fundamental of Business Economics and Management PN-4

The term ‘W’ in SWOT Analysis is :

a. Wealth

b. Wellness

c. Waste

d. Weakness

26 / 30

Category: Fundamental of Business Economics and Management PN-4

NPCI has been pivotal to the emergence of the digital payment ecosystem in India. NPCI stands for:

a. National Payments Corporation of India

b. National Public Corporation of India

c. National Payments Cell of India

d. Nature Public Corporation of India

27 / 30

Category: Fundamental of Business Economics and Management PN-4

Which of the following is not a component of VUCAFU?

a. Uncertainty

b. Ambiguity

c. Clarity

d. Volatility

28 / 30

Category: Fundamental of Business Economics and Management PN-4

Who considered co-ordination as a permeating function of management passing through the managerial functions of planning, organizing, staffing, leading and controlling?

a. George Terry and Theo Haimann

b. Henry Fayol

c. Haynes and Massie

d. Hicks and Gullet

29 / 30

Category: Fundamental of Business Economics and Management PN-4

Which is inherent in managerial job and embodied in all the functions of management?

a. Planning

b. Organising

c. Control

d. Co-ordination

30 / 30

Category: Fundamental of Business Economics and Management PN-4

According to Mary Parker Follett which one is not the principle for achieving effective coordination?

a. Continuity

b. Early beginning

c. Self-coordination

d. Managerial Audit

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Foundation PN-4 FBEM Quiz 3

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