NEB Class 11 Management Finance Question Paper 2078

Write the meaning of finance.

Differentiate between real assets and financial assets.

Write the meaning of letter of credit.

What is meant by fixed income securities?

What is a DEMAT account?

Suppose you borrow Rs. 2000 from bank for one year to finance your education. Interest on loan is 18% per annum. How much interest you pay on your bank loan?

Define microfinance.

State risk with some examples.

Differentiate between life and non-life insurance.

What is mutual fund?

What is compounding? Give an example.

Discuss the managerial functions of the financial manager.

Describe briefly the different types of depository institutions in Nepal.

Following information are derived from the balance sheet of Nepal Auto Company Limited:

What is the shareholder's equity of the company?

What is the book value per share if the company has 50,000 shares outstanding?

What are the types of deposits? Explain briefly.

Explain the principles of cooperative.

A life insurance company has 20,000 policy holders. Each policy holders with the age of 35 has Rs. 250,000 for life insurance. The company is willing to set an annual premium rate to charge to these policy holders so that it will have sufficient cash to pay off the beneficiaries of any policyholders who die this year. The expected death rate for age 35 is 3 per 1000. The cost of money for the insurance company is 7%.

Calculate the expected death rate.

(This is part of the alternative-with-OR question 17; see OR alternative below.)

OR

Term life policy offered by Rastriya Beema Sansthan is as follows:

• Amount of term life policy = Rs. 675,000
• Annual mortality rate = 3%
• Cost of money = 10%

If you are willing to purchase this term life policy, what fair amount of premium you must pay?

How much the insurance company pays for the claims for the expected death?

How much the company charges from the policyholders at the beginning of the policy period?

A mutual fund has 1000 shares of XYZ Company, currently trading at Rs. 150, and 2000 shares of ABC Company, currently trading at Rs. 140. The fund has issued 10,000 shares.

What is the NAV of the fund?

If investors expect the price of the XYZ Company's shares to increase to Rs. 180 and price of ABC Company shares to decline Rs. 110 by the end of the year, what is the expected NAV at the end of the year?

The following cashflow of a project occurs at the end of each year.

Calculate present value by using 10 % discount factor.

OR

What do you mean by an annuity? Explain the types of annuity. (2+3=5)

Calculate future value by using 10% interest rate factor.

Consider the following stock quote for Chhimek Laghubitta Bittiya Sanstha Limited derived from NEPSE trading as on March 5, 2020.

At what price did the stock close on the trading day?

OR

Explain the C-ASBA system used to apply for purchasing shares in Nepal.

How many shares of CBBL stock were traded on the day?

How do you calculate the quote "Diff%"? What does it mean?

What is the highest and lowest trading price of stock during last 52 weeks?

Define insurance and explain the fundamental principles of insurance.

You are planning to borrow Rs. 1000,000 on a 5-year, 12% annual payment fully amortized term loan.

What is the annual payment on the loan?

What fraction of payment made at the end of second year will represent the payment of interest?

What fraction of payment made at the end of third year will represent the repayment of principal?

What would be the amount of interest and principal paid in the final year?