# 1000+ Oromia International Bank Exam Questions and Answers Pdf - 1

Question: 1

Find the income on 10% stock of Rs.25000 purchased at Rs.120.

(A) Rs.1000

(B) Rs.1500

(C) Rs.2500

(D) Rs.3500

Ans: C

Face value of stock = Rs.25000

Income on Rs.100 stock = Rs.10

Income on Rs.1 stock = Rs.\$\$({10}/{100})\$\$

Income on Rs.25000 stock = Rs.\$\$({25000 × 10}/{100})\$\$ = Rs.2500.

Question: 2

Siva has 800 shares of par value Rs.50 each and 600 debentures of par value Rs.100 each of the company. The company pays an annual dividend of 6% on the shares and interest of 12% on the debentures. Find out the total annual income of Siva and rate of return on his investment.

(A) Rs.8000, 8%

(B) Rs.9000, 8.6%

(C) Rs.9600, 9.6%

(D) Rs.10600. 10.6%

Ans: C

Annual dividend on 800 shares = Rs.\$\$({800 × 50 × 6} / {100})\$\$ = Rs. 2400

Annual interest on 600 debentures = Rs.\$\$({600 × 100 × 12} / {100})\$\$ = Rs. 7200

Total annual income of Siva = Rs.(2400 + 7200) = Rs.9600

Total investment of Siva = Rs.(800 × 50 + 600 × 100)

= Rs.(40000 + 60000)

= Rs.100000

∴ Rate of return = \$\$({9600} / {100000} × 100)\$\$% = 9.6%.

Question: 3

Which is better investment -11% stock at 143 or \$\$9{3}/{4}\$\$% stock at 117?

(A) \$\$9{3}/{4}\$\$% stock at 117

(B) 11% stock at 143

(C) both are equally good

(D) cannot be compared, as the total amount of investment is not given

Ans: A

Let investment in each case be Rs.(143 × 11).

Income in 1st case = Rs.\$\$({11}/{143} × 143 × 117)\$\$ = Rs.1287.

Income in 2nd case = Rs.\$\$({39} / {4 × 117} × 143 × 117)\$\$ = Rs.1394.25.

Clearly, \$\$9{3}/{4}\$\$% stock at 117 is better.

Question: 4

A man buts Rs.50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares?

(A) Rs.37.50

(B) Rs.39

(C) Rs.40

(D) Rs.52

Ans: C

Dividend on 1 share = Rs.\$\$({10}/{100} × 50)\$\$ = Rs.5.

Rs.12.50 is an income on an investment of Rs.100.

Rs.5 is an income of an investment of Rs.\$\$(100 × {2}/{25} × 5)\$\$ = Rs.40.

∴ Cost of 1 share = Rs.40.

Question: 5

A person invests Rs.28500 in 5% stock at 95. He sold Rs.15000 stock when the price rose to Rs.98 and sold the remaining stock when the market value of the stock fell to Rs.90. How much does he gain or loss in the transaction?

(A) Gain = Rs.300

(B) Gain = Rs.400

(C) Loss = Rs.300

(D) Loss = Rs.400

Ans: C

Stock purchases by investing Rs.28500 in 5% stock at 95

= Rs.\$\$({100}/{95} ×28500)\$\$ = Rs.30000

Money realized by selling Rs.15000 stock market valye of Rs.98

= Rs.\$\$({98}/{100} × 15000)\$\$ = Rs.14700

Remaining stock = Rs.(30000 - 15000) = Rs.15000

Money realized by selling Rs.15000 stock at Rs.90 = Rs.\$\$({90}/{100} × 15000)\$\$ = Rs.13500.

∴ Total money realized = Rs.\$\$(14700 + 13500)\$\$ = Rs.28200.

Money invested = Rs.28500

∴ Loss = Rs.(28500 - 28200) = Rs.300

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