Subject Economics and Banking
76. Asset turnover measures:
(a) the profit generate by efficient management of assets.
(b) how quickly we liquidate our inventory.
(c) the sales revenue generated by efficient management of assets.
(d) the ability to generate income for the stockholders
Ans. c
77. Which of the typically following will cause an increase in return on equity (ROE) as long as expenses do not grow faster than revenue?
(a) A decrease in average total assets
(b) An increase in sales volume
(c) An increase in net income
(d) A decrease in expenses
Ans. b
78. A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk. 1 par value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend?
(a) Retained earnings will decreased by Tk. 1.6 million and contributed capital will increase by Tk. 1.6 million.
(b) Contributed capital will decrease by Tk. 1.6 million and retained earnings will increase by Tk 1.6 million.
(c) Retained earning will decrease by Tk. 32 million and contributed capital will increase by Tk. 32 million
(d) Contributed capital will decrease by Tk. Million and retained earnings will increase by Tk. 32 million
Ans.
79. Assume the following shares outstanding:
Preferred stock, 6% Tk. 52 par value, cumulative, 1,000 shares with dividends in arrears 3 years, for 20_1, 20_2 and 20_3.
Common stock, Tk. 100 par value, 2,000 shares. Total dividends declared n 20_4 were Tk. 50,000. The total amount of dividends to which common stockholders are entitled is:
(a) Tk. 62,000
(b) Tk. 50,000
(c) Tk. 45,000
(d) Tk. 38,000
Ans.
80. Maxell Company’s return on equity was 18% and the financial leverage percentage was 13% (positive). Return on assets was:
(a) 31%
(b) 18%
(c) 13%
(d) 5%
Ans. d
81. In a recent year, Windsor’s Boats reported an asset turnover ratio of 2.46 times and a profit margin of 19.8%. In the same year, Sarah’s Sail Boats reported an asset turnover ratio of 1.27 times and a profit margin of 9.9%. Which of the following statements false?
(a) Sarah’s did a better job of turning over its assets.
(b) Windsor’s did a better job of generating profit from its sales.
(c) Windsor’s return on assets (ROA) is 48.7% while Sarah’s return on assets is 12.6%
(d) None of the other answer is false.
Ans.
82. Rashna Company collected the following data in its accounting records in 2014:
From income statement.
Depreciation expenseTk. 1,000
Loss on sale of equipment3,000
From the comparative balance sheen
Beginning balance, equipmentTk. 12,500
Ending balance, equipment8,000
Beginning balance, accumulated depreciation2,000
Ending balance, accumulated depreciation2,400

No new equipment was purchased during the year. The equipment was sold at end of the year. What was the cash in-flow from the sale of equipment in 2014?
(a) Tk. 3,900
(b) Tk. 1,000
(c) Tk. 900
(d) Tk. 600
Ans.
83. The records of Everyday Electronics Corporation include the following:
Average Total assetsTk. 7,60,000
Average total libilities4,85,000
Total revenue2,00,500
total expense (including income tax)1,35,000
(a) 13%
(b) 6%
(c) 25%
(d) 8%
Ans.
84. If a company’s return on equity (ROE) ratio increases from one year to the next, the most likely cause is:
(a) an increase in net income.
(b) a reduction in total expenses as a percentage of sales.
(c) an increase in stockholders’ equity.
(d) an increase in net income and/or a reduction in total expanses as a percentage of sales.
Ans. d
85. If a company’s return on assets (ROA) stays the same from one year to the next but its financial leverage ratio increases, then the most likely cause is:
(a) an increase in the debt to equity ratio.
(b) a decrease in net income.
(c) an increase in total assets.
(d) an increase in stockholders’ equity.
Ans. b
86. Mehgna Company’s working capital was Tk. 40,000 and total current liabilities were ¼ of that amount. The current ratio was:
(a) 1 to 1
(b) 3 to 1
(c) 5 to 1
(d) 7 to 1
Ans. b
87. If the current ratio is 2 to 1, the payment of a cash dividend, which was recorded as a liability on the date of declaration, will-
(a) increase the current ratio.
(b) decrease the current ratio.
(c) have no effect on the current ratio.
(d) invalidate earnings per share.
Ans. b
88. Blue Sky Company began the year with a balance in inventory of Tk. 110,000 and ended the year with a balance of Tk. 102,000. The net sales for the year were Tk. 983,000 with a gross profit on sales of Tk. 295,000. What was the inventory turnover ratio?
(a) 2.78 times
(b) 9.27 times
(c) 6349 times
(d) 2.89 times
Ans.
89. Which of the following rations is not a test of solvency?
(a) Debt to equity ratio
(b) Cash coverage ratio
(c) Times interest earned
(d) Earnings per share ratio
Ans.
90. The Apple Company had net income of Tk. 47,000 and earnings per share of Tk. 3.17 during 2010. On December 31, 2010, the stock had a market price of Tk. 18.50 per share. What is Apple Company’s price-earnings ratio?
(a) 25.70
(b) 8.11
(c) 5.84
(d) 0.71
Ans.
91. Karnaphuli Company paid out Tk. 2.30 in dividends per share during 2010. The market price of the stock on December 31, 2010 was Tk. 21.00 per share. There were 15,000 shares of stock outstanding for the entire year. The dividend yield as of December 31, 2010 was:
(a) 16.43%
(b) 10.95%
(c) 9.13%
(d) 913.04%
Ans.
92. When you can access your account form any branch of the same bank that is called
(a) Online Banking
(b) Internet Banking
(c) Off Shore Banking
(d) Any Branch Banking
Ans. a
93. Which of the following is a service not provided by a bank?
(a) Vault rent
(b) Q-Cash ATM service
(c) Bank Guaranty
(d) Accepting damaged notes
Ans. a
94. Banking 24/7 means
(a) 24 banking service available in 7 branches
(b) Virtual Banking available 24 hrs and 7 days
(c) Virtual Ranking at 24 degree east and 7 degree north satellite
(d) 7 Bank using 24 ATM machines
Ans. b
95. Which of the following is not an E-Banking product?
(a) ATM
(b) SMS banking
(c) Plastic money
(d) School Banking
Ans. d
96. In centralized database system, the role of the front office in a bank is to
(a) assessment and approval
(b) customer dealing
(c) internal audit
(d) IT management
Ans. b
97. বাংলাদেশের সর্বাধিক বৈদেশিক মুদ্রা অর্জনকারী শিল্প কোনটি?
(a) পাট
(b) তৈরি পোশাক
(c) চা
(d) মাছ
Ans. b
98. বাংলাদেশে কোনটি বাণিজ্যিক ব্যাংকের কাজ নয়?
(a) বৈদেশিক মুদ্রা লেনদেন
(b) শেয়ারের বিনিয়োগ
(c) গ্রাহকের উপদেশ
(d) বিহিত মুদ্রার প্রচলন
Ans. d
99. ইউরোপীয় ইউনিয়নের কোন দেশ এখনো ‘ইউরো’ গ্রহণ করেনি?
(a) ফ্রান্স
(b) ইতালি
(c) ইংল্যান্ড
(d) জার্মনি
Ans. c
100. বাণিজ্যিক ব্যাংক নয়-
(a) সোনালী ব্যাংক
(b) বাংলাদেশ ব্যাংক
(c) আরব বাংলাদেশ ব্যাংক
(d) জনতা ব্যাংক
Ans. b