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MCQOPTIONS
This section includes 64577 Mcqs, each offering curated multiple-choice questions to sharpen your General Knowledge knowledge and support exam preparation. Choose a topic below to get started.
| 4601. |
The yield on subordinated bonds as compared to non subordinated bonds is considered as |
| A. | highly risky and higher yields |
| B. | highly risky and lower yields |
| C. | less risky and higher yields |
| D. | less risky and lower yields |
| Answer» B. highly risky and lower yields | |
| 4602. |
The rate of return on non callable bonds is $370 USD and value of issuer option is $250 USD then the return on callable bond is |
| A. | $120 |
| B. | 0.0148 |
| C. | $620 |
| D. | $1.48 |
| Answer» D. $1.48 | |
| 4603. |
The call premium of bond is $630 USD and the call price of bond is $240 USD then face value of the bond is |
| A. | 0.0263 |
| B. | $870 |
| C. | $390 |
| D. | $2.63 |
| Answer» D. $2.63 | |
| 4604. |
The type of markets which trades underwritten bonds syndicated by some other countries is classified as |
| A. | international markets |
| B. | national markets |
| C. | local markets |
| D. | state markets |
| Answer» B. national markets | |
| 4605. |
The risk associated with eurobonds and usually bears by underwriters is related to |
| A. | company annual sale |
| B. | future sale of bonds |
| C. | past sale of bonds |
| D. | initial sale of bond |
| Answer» E. | |
| 4606. |
For a taxable security, the tax exempted interest rate on municipal bonds us used to determine the |
| A. | tax equivalent rate of return |
| B. | local rate of return |
| C. | withholding tax rate |
| D. | general sales tax rate |
| Answer» B. local rate of return | |
| 4607. |
The main trading markets of eurobonds are |
| A. | London and Luxembourg |
| B. | Australian markets |
| C. | Swiss banks counters |
| D. | Asian banks counters |
| Answer» B. Australian markets | |
| 4608. |
The rate of return on non callable bonds is $680 USD and value of issuer option is $450 USD then the return on callable bond is |
| A. | $230 |
| B. | 0.0152 |
| C. | $1.52 |
| D. | $1,130 |
| Answer» E. | |
| 4609. |
The situation in which the investment bank faces no risk of mispricing regarding security is considered as |
| A. | least best premium |
| B. | least best discount price |
| C. | best efforts offering |
| D. | least best index |
| Answer» D. least best index | |
| 4610. |
The convertible bonds are considered as hybrid bonds because they have properties of |
| A. | debts |
| B. | common equity |
| C. | both debt and equity |
| D. | ordinate and subordinated |
| Answer» D. ordinate and subordinated | |
| 4611. |
The foreign bonds issued in Japan financial institutions are classified as |
| A. | bull dog bonds |
| B. | bull cat bonds |
| C. | Yankee bonds |
| D. | samurai bonds |
| Answer» E. | |
| 4612. |
The temporary imbalances between operating receipts and operating expenditures are funded with the help of |
| A. | state bonds |
| B. | federal bonds |
| C. | municipal bonds |
| D. | reserve bonds |
| Answer» D. reserve bonds | |
| 4613. |
As compared to unsecured bonds, the mortgage bonds are considered as |
| A. | more risky |
| B. | less risky |
| C. | term risk |
| D. | serial risk |
| Answer» C. term risk | |
| 4614. |
The type of bond in which the coupon payment is mailed registered bondholders and owner is recorded by issuing company is classified as |
| A. | unregistered bonds |
| B. | indenture bonds |
| C. | trustee bonds |
| D. | registered bonds |
| Answer» E. | |
| 4615. |
The holders of debentures receive their payments or bonds yields only after the holders of |
| A. | registered debt holders |
| B. | secured debt holders |
| C. | unsecured debt holders |
| D. | unregistered debt holders |
| Answer» C. unsecured debt holders | |
| 4616. |
The debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as |
| A. | subordinated debentures |
| B. | ordinate debentures |
| C. | expansion debentures |
| D. | premium debentures |
| Answer» B. ordinate debentures | |
| 4617. |
The bonds that are not pledged against revenue stream or specific assets are classified as |
| A. | general obligation bonds |
| B. | general obligation notes |
| C. | general obligation tax |
| D. | general obligation savings |
| Answer» B. general obligation notes | |
| 4618. |
To improve the attractiveness for investors, the bonds are partially backed by |
| A. | US.T-Bonds |
| B. | UK-T-Bonds |
| C. | UK-B-bonds |
| D. | US-B-Bonds |
| Answer» B. UK-T-Bonds | |
| 4619. |
The rules and regulations placed on bond holders and bond issuers are classified in |
| A. | bond covenants |
| B. | private covenants |
| C. | federal covenants |
| D. | expansion covenants |
| Answer» B. private covenants | |
| 4620. |
The issued bond which is considered as hybrid bond is called |
| A. | non convertible bonds |
| B. | premium convertible bonds |
| C. | discount convertible bonds |
| D. | convertible bonds |
| Answer» E. | |
| 4621. |
If the maturity date of the bond is closer then the premium of bond will be |
| A. | relatively lower |
| B. | relatively higher |
| C. | quantifiable |
| D. | not be quantifiable |
| Answer» B. relatively higher | |
| 4622. |
The type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as |
| A. | pledged bonds |
| B. | serial bonds |
| C. | series bonds |
| D. | parallel bonds |
| Answer» C. series bonds | |
| 4623. |
To make the promised payments, the federal money can |
| A. | raise taxes |
| B. | print money |
| C. | increase labor hours |
| D. | both a and b |
| Answer» E. | |
| 4624. |
The municipal bonds public offering is often made through the |
| A. | insurance companies |
| B. | index banking firm |
| C. | commercial banking firm |
| D. | |
| Answer» D. | |
| 4625. |
The markets in which bonds are traded and issued are classified as |
| A. | corporate markets |
| B. | treasury markets |
| C. | bond markets |
| D. | municipal markets |
| Answer» D. municipal markets | |
| 4626. |
The face value of the bond is $450 USD and the call price of bond is $250 USD then the value of call premium is |
| A. | 0.018 |
| B. | $200 |
| C. | $700 |
| D. | $1.80 |
| Answer» C. $700 | |
| 4627. |
The price accepted in single bid auction system is the one which is the |
| A. | most lowest |
| B. | most highest |
| C. | least lowest |
| D. | least highest |
| Answer» B. most highest | |
| 4628. |
As compared to non convertible bonds, the yield on the convertible bond is |
| A. | relatively lower |
| B. | relatively higher |
| C. | relatively zero |
| D. | relatively discounted |
| Answer» B. relatively higher | |
| 4629. |
The call premium is $385 USD and the face value of the bond is $285 USD then the call price of bonds is |
| A. | $100 |
| B. | $770 |
| C. | $670 |
| D. | $570 |
| Answer» C. $670 | |
| 4630. |
If the price at which stock is purchased exceeds the market value then the stock warrants will |
| A. | be exercised |
| B. | not be exercised |
| C. | be discounted |
| D. | not be discounted |
| Answer» B. not be exercised | |
| 4631. |
The type of bonds which is fully backed by credit and faith of issuer is classified as |
| A. | general obligation tax |
| B. | general obligation savings |
| C. | general obligation bonds |
| D. | general obligation notes |
| Answer» D. general obligation notes | |
| 4632. |
With the consolidation of currencies, the created liquidity allows the eurobond |
| A. | price and supply to decrease |
| B. | price and supply to increase |
| C. | demand and size to decrease |
| D. | demand and size to increase |
| Answer» E. | |
| 4633. |
The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is |
| A. | 0.0613 |
| B. | 0.0713 |
| C. | 0.0813 |
| D. | 0.0913 |
| Answer» D. 0.0913 | |
| 4634. |
The auction of the TIPS security is classified as |
| A. | premium bid auction |
| B. | discount bid auction |
| C. | multiple bid auction |
| D. | one bid auction |
| Answer» E. | |
| 4635. |
In the capital markets, the instruments which are traded having maturity of more than one year is classified as |
| A. | contraction mortgages |
| B. | bonds and mortgages |
| C. | expansion bonds |
| D. | expansion mortgages |
| Answer» C. expansion bonds | |
| 4636. |
The value of conversion option to bond holder is $740 USD and the rate of return on non convertible bond is $540 USD then rate of return on convertible bond is |
| A. | 0.0137 |
| B. | $1,280 |
| C. | $1.37 |
| D. | $200 |
| Answer» E. | |
| 4637. |
The type of rating to which all the credit rating agencies does not consider is classified as |
| A. | split rating |
| B. | sinking rating |
| C. | automated rating |
| D. | floating rating |
| Answer» B. sinking rating | |
| 4638. |
The year in which the eurobonds are issued for the first time in financial markets is |
| A. | 1963 |
| B. | 1953 |
| C. | 1983 |
| D. | 1962 |
| Answer» B. 1953 | |
| 4639. |
The call premium is $640 USD and the face value of the bond is $285 USD then the call price of bonds is |
| A. | $2.25 |
| B. | $355 |
| C. | $925 |
| D. | 0.0225 |
| Answer» D. 0.0225 | |
| 4640. |
The financial institutions generally such as insurance companies and banks are prohibited to buy anything but |
| A. | split grade bonds |
| B. | investment grade bond securities |
| C. | portfolio grade bonds |
| D. | sinking grade bonds |
| Answer» C. portfolio grade bonds | |
| 4641. |
The suppliers and demanders of the long term investment funds are work closely in |
| A. | bond markets |
| B. | classical set markets |
| C. | open end markets |
| D. | close end markets |
| Answer» B. classical set markets | |
| 4642. |
The names of foreign bonds are used to denote |
| A. | country of premium |
| B. | country of origin |
| C. | country of selling |
| D. | country of discount |
| Answer» C. country of selling | |
| 4643. |
The current market price of common stock is $18 USD and the conversion rate received on conversion is $410 USD to calculate |
| A. | $3,580 |
| B. | $5,380 |
| C. | $6,380 |
| D. | $7,380 |
| Answer» E. | |
| 4644. |
The replacement of bearer bonds with registered bonds is because of lack of |
| A. | security of indentures |
| B. | security of unregistered bonds |
| C. | security of bearer bonds |
| D. | security of registered bonds |
| Answer» D. security of registered bonds | |
| 4645. |
The legal contract which states the legal rights of seller and buyer is classified as |
| A. | long term indenture |
| B. | federal indenture |
| C. | private indenture |
| D. | bond indenture |
| Answer» E. | |
| 4646. |
The treasury bills are issued on |
| A. | treasury basis |
| B. | corporate basis |
| C. | premium basis |
| D. | discount basis |
| Answer» E. | |
| 4647. |
The foreign bonds that are issued before the eurobonds are also called as |
| A. | traditional international bonds |
| B. | traditional local bonds |
| C. | traditional global bonds |
| D. | traditional currency bonds |
| Answer» B. traditional local bonds | |
| 4648. |
The financial securities which are issued to finance government expenditures and national debt are classified as |
| A. | treasury notes and bonds |
| B. | contraction bonds |
| C. | expansion bonds |
| D. | dollar bonds |
| Answer» B. contraction bonds | |
| 4649. |
The number of covenants related to issued bonds are included in |
| A. | private indenture |
| B. | bond indenture |
| C. | long term indenture |
| D. | federal indenture |
| Answer» C. long term indenture | |
| 4650. |
The value of conversion option to bond holder is $550 USD and the rate of return on non convertible bond is $270 USD then rate of return on convertible bond is |
| A. | 0.0204 |
| B. | $2.04 |
| C. | $280 |
| D. | $820 |
| Answer» D. $820 | |