MCQOPTIONS
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MCQOPTIONS
This section includes 1419 Mcqs, each offering curated multiple-choice questions to sharpen your General Management knowledge and support exam preparation. Choose a topic below to get started.
| 701. |
*/*_Standard deviation determine? |
| A. | systematic risk of a security |
| B. | unsystematic risk of security |
| C. | total risk of security |
| D. | premium of security |
| Answer» D. premium of security | |
| 702. |
*/*_Most favourable portfolio is proficient portfolio with the? |
| A. | lowest risk |
| B. | highest risk |
| C. | highest utility |
| D. | least investment |
| Answer» D. least investment | |
| 703. |
*/*_Bondholders usually accept interest payments each? |
| A. | 1 year |
| B. | six months |
| C. | 2 months |
| D. | 2 years |
| Answer» C. 2 months | |
| 704. |
*/*_Agency cost can be decreased by? |
| A. | Centralized Structure |
| B. | Centralized and Decentralized Structure |
| C. | Centralized Structure |
| D. | None of it |
| Answer» D. None of it | |
| 705. |
*/*_Joint venture is? |
| A. | Not jointly owned by |
| B. | Jointly owned by two or more firms |
| C. | Acquired by firm |
| D. | It is licensing |
| Answer» C. Acquired by firm | |
| 706. |
*/*_Type of Eurobonds which are convertible are considered as? |
| A. | related to international market |
| B. | related to equity |
| C. | related to common stock |
| D. | related to national market |
| Answer» C. related to common stock | |
| 707. |
*/*_Price accepted in single bid auction system is one which is? |
| A. | most lowest |
| B. | most highest |
| C. | least lowest |
| D. | least highest |
| Answer» B. most highest | |
| 708. |
*/*_In financial markets, bond indenture results in? |
| A. | lower federal rate |
| B. | higher federal rate |
| C. | higher risk |
| D. | lower risk |
| Answer» E. | |
| 709. |
*/*_Marginal income tax rate is 35% and before tax rate of return is 12.5% then after tax rate of return is? |
| A. | 6.13% |
| B. | 7.13% |
| C. | 8.13% |
| D. | 9.13% |
| Answer» D. 9.13% | |
| 710. |
*/*_Default risk is measured by large traders, managers and investors with help of? |
| A. | sinking analysis |
| B. | analyzing financial ratios |
| C. | portfolio scenario value |
| D. | automated machine analysis |
| Answer» C. portfolio scenario value | |
| 711. |
*/*_Larger fluctuations in portfolio value of foreign exchange of financial institutions leads to? |
| A. | greater liquidity of assets |
| B. | greater volatility of rates |
| C. | lesser volatility of rates |
| D. | lesser liquidity of assets |
| Answer» C. lesser volatility of rates | |
| 712. |
*/*_More coupon payment or promised interest payment? |
| A. | higher its duration |
| B. | lower its duration |
| C. | zero duration |
| D. | One year duration |
| Answer» C. zero duration | |
| 713. |
*/*_Inflation rate in United States is added into real rate of interest to calculate? |
| A. | quoted interest rate in United States |
| B. | nominal interest rate in United States |
| C. | interest rate in United States |
| D. | discount rate of country |
| Answer» D. discount rate of country | |
| 714. |
*/*_Rule which states that similar set of goods and services produced in various countries should have equal price is classified as? |
| A. | law of similar mortgage rate |
| B. | law of one type manufacturing |
| C. | law of similar labour rules |
| D. | law of one price |
| Answer» E. | |
| 715. |
*/*_Foreign bonds issued in Japan are known? |
| A. | bulldog bonds |
| B. | dragon bonds |
| C. | Yankee bonds |
| D. | samurai bonds |
| Answer» E. | |
| 716. |
*/*_Loan which is made available for businesses or individuals to buy land, home or other property is classified as? |
| A. | secondary loan |
| B. | primary loan |
| C. | mortgages |
| D. | swapped mortgages |
| Answer» D. swapped mortgages | |
| 717. |
*/*_Interest rate that investors receive on financial security to calculate fair value of security is classified as? |
| A. | forward rate of return |
| B. | unturned rate of return |
| C. | required rate of return |
| D. | termed rate of return |
| Answer» D. termed rate of return | |
| 718. |
*/*_Eurobonds are admired because? |
| A. | they are less risky than traditional bonds |
| B. | European companies are considered very stable |
| C. | of absence of government regulation |
| D. | they are always denominated in euro |
| Answer» D. they are always denominated in euro | |
| 719. |
*/*_Governments enforce currency limitations to? |
| A. | protect a currency from speculators |
| B. | keep resident individuals and businesses from investing in other nations |
| C. | preserve hard currencies to finance trade deficits or repay debts |
| D. | all of above |
| Answer» E. | |
| 720. |
*/*_A simultaneous purchase and sale of foreign exchange for two different dates? |
| A. | currency devalue |
| B. | currency swap |
| C. | currency valuation |
| D. | currency exchange |
| Answer» C. currency valuation | |
| 721. |
*/*_Market in which currencies buy and sell and their prices settle on is called the? |
| A. | Eurocurrency market |
| B. | international capital market |
| C. | international bond market |
| D. | foreign exchange market |
| Answer» E. | |
| 722. |
*/*_In 1944 international accord is recognized as? |
| A. | Breton Wood Agreement |
| B. | Exchange Agreement |
| C. | International Trade |
| D. | Fisher Effect |
| Answer» B. Exchange Agreement | |
| 723. |
*/*_For given change in interest rates, percentage change in present value of bond is classified as? |
| A. | price sensitivity |
| B. | yield sensitivity |
| C. | maturity sensitivity |
| D. | premium sensitivity |
| Answer» B. yield sensitivity | |
| 724. |
*/*_Buying price of stock is $35 and it can be sold for $30 whereas dividend paid is $6 then return on stock is? |
| A. | 36.67% |
| B. | 46.67% |
| C. | 26.67% |
| D. | 26.67% |
| Answer» B. 46.67% | |
| 725. |
*/*_World Bank Group recognized in? |
| A. | 1940 |
| B. | 1945 |
| C. | 1944 |
| D. | 1947 |
| Answer» D. 1947 | |
| 726. |
*/*_Investors should be agreeing to invest in riskier investments merely? |
| A. | if return is short |
| B. | if there are no safe alternatives except for holding cash |
| C. | if expected return is adequate for risk level |
| D. | if there are true speculators |
| Answer» D. if there are true speculators | |
| 727. |
*/*_The term Euro currency Market refers to? |
| A. | The countries which have adopted Euro as their currency |
| B. | The market in which Euro is exchanged for other currencies |
| C. | The market where the borrowing and lending of currencies take place outside the country of issue |
| D. | The international foreign exchange market |
| Answer» D. The international foreign exchange market | |
| 728. |
*/*_A group of European countries have formed a union and created a common currency known as __________? |
| A. | the EU currency |
| B. | the European Union |
| C. | the EMU |
| D. | the Euro |
| Answer» E. | |
| 729. |
*/*_Which of the following is not a reason for international investment?? |
| A. | To provide an expected risk-adjusted return in excess of that required |
| B. | To gain access to important raw materials |
| C. | To produce products and/or services more efficiently than possible domestically |
| D. | International investments have less political risk than domestic investments |
| Answer» E. | |
| 730. |
*/*_Forward contract is an agreement to buy or sell an assets on? |
| A. | Specified price |
| B. | Specified time |
| C. | Specified date |
| D. | Specified volume |
| Answer» B. Specified time | |
| 731. |
*/*_FRAs can’t be used for? |
| A. | Hedging |
| B. | Arbitraging |
| C. | Speculating |
| D. | Any of the Above |
| Answer» E. | |
| 732. |
*/*_The price at which a market maker is prepared to sell a currency or lend money? |
| A. | forward rate |
| B. | sport rate |
| C. | bid rate |
| D. | offer rate |
| Answer» E. | |
| 733. |
*/*_A bank located usually in another country that provides service for another bank is? |
| A. | Foreign bank |
| B. | Central bank |
| C. | Correspondent ban |
| D. | World Bank |
| Answer» D. World Bank | |
| 734. |
*/*_Which exchange rate theory focuses on the inflation exchange rate relationship?? |
| A. | Interest rate parity |
| B. | International Fisher Effect |
| C. | Purchasing power parity |
| D. | Traditional Model |
| Answer» D. Traditional Model | |
| 735. |
*/*_Long-term securities denominated in two currencies is called as? |
| A. | Euro bond |
| B. | Dual currency bonds |
| C. | Foreign bonds |
| D. | Euro dollar deposit |
| Answer» C. Foreign bonds | |
| 736. |
*/*_The index of Financial Inclusion has been launched for the first time in 2008? |
| A. | Confederation of Indian Industries (CII) |
| B. | Federation of Indian Chamber of Commerce and Industry (FICCI) |
| C. | National Council of Applied Economic Research (NCAER) |
| D. | Indian Council for Research on International Economic Relations (ICRIER) |
| Answer» E. | |
| 737. |
*/*_The intrinsic value of a Call option is? |
| A. | Strike price - Underlying Price |
| B. | Underlying price - Strike Price |
| C. | Strike price > Underlying price |
| D. | Strike price < Underlying price |
| Answer» C. Strike price > Underlying price | |
| 738. |
*/*_European Economic Community founded in? |
| A. | 1957 |
| B. | 1958 |
| C. | 1963 |
| D. | 1968 |
| Answer» B. 1958 | |
| 739. |
*/*_International Monetary Fund is headquartered in? |
| A. | Washington, United States |
| B. | New York City, United States |
| C. | Geneva, Switzerland |
| D. | Avenue Du Mont Blanc, Switzerland |
| Answer» B. New York City, United States | |
| 740. |
*/*_Which of the following theories suggests that firms seek to penetrate new markets over time?? |
| A. | Theory of Comparative Advantage |
| B. | Imperfect Market Theory |
| C. | Product cycle theory |
| D. | None of the above |
| Answer» D. None of the above | |
| 741. |
*/*_The Imports and Exports (Control. Act was passed in the year:? |
| A. | 1955 |
| B. | 1947 |
| C. | 1977 |
| D. | 1996 |
| Answer» C. 1977 | |
| 742. |
*/*_ADR/GDR can be issued? |
| A. | only by listed companies |
| B. | by listed or unlisted companies |
| C. | only by companies listed on BSE |
| D. | none of the above |
| Answer» B. by listed or unlisted companies | |
| 743. |
*/*_The components of Balance of Payment includes.? |
| A. | Current and Capital Account |
| B. | Current account and official reserves |
| C. | Capital Account and Official reserves |
| D. | Current account, capital account and official reserves |
| Answer» C. Capital Account and Official reserves | |
| 744. |
*/*_The process of acquiring technology from other country is called:? |
| A. | Licensing |
| B. | Franchising |
| C. | Technology Transfer |
| D. | Joint Venture |
| Answer» B. Franchising | |
| 745. |
*/*_What is the IMF's primary objective?? |
| A. | The overall promotion of world trade |
| B. | The fixation of the value of world currencies |
| C. | The promotion of free trade |
| D. | The promotion of its policies in certain countries around the world |
| Answer» B. The fixation of the value of world currencies | |
| 746. |
*/*_The penalty for the contravention of foreign trade rules is decided by.? |
| A. | The Appellate authority |
| B. | The Adjudicating authority |
| C. | The Competing authority |
| D. | The Regional Licensing Authority |
| Answer» C. The Competing authority | |
| 747. |
*/*_Derivatives can be used by an exporter for managing.? |
| A. | currency risk |
| B. | cargo risk |
| C. | credit risk |
| D. | business risk |
| Answer» D. business risk | |
| 748. |
*/*_The balance of payments always has a zero balance. This is caused by.? |
| A. | the working of the foreign exchange market |
| B. | by including errors and omissions |
| C. | the system of double entry bookkeeping |
| D. | by including reserves and related items |
| Answer» D. by including reserves and related items | |
| 749. |
*/*_What is the role of IMF? |
| A. | It controls the budgets of national government |
| B. | It acts as a forum for international economics |
| C. | It Observes world exchange rates, balance of payments and multilateral payments |
| D. | It seeks to promote free international trade |
| Answer» D. It seeks to promote free international trade | |
| 750. |
*/*_At present the role of IMF in the exchange rate policies of its members is to? |
| A. | prohibit floating rate |
| B. | have surveillance and express opinion on policies |
| C. | restrict the exchange fluctuations within a band |
| D. | prohibit fixed rate |
| Answer» C. restrict the exchange fluctuations within a band | |