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.
| 751. |
*/*_Net exports refers to.? |
| A. | total exports minus total imports |
| B. | total imports minus total exports |
| C. | exports of merchandise minus imports of merchandised |
| D. | total exports of capital minus depreciation |
| Answer» B. total imports minus total exports | |
| 752. |
*/*_A country has a negative balance of trade it means the balance of payments on current account? |
| A. | Should also be negative |
| B. | Should be positive |
| C. | May be positive or negative |
| D. | Should be same as balance of trade |
| Answer» E. | |
| 753. |
*/*_MIGA stands for? |
| A. | Multilateral Investment Guarantee Agency |
| B. | Multilateral Institutional and Government Agencies |
| C. | Mutual Interest Guaranteeing Agencies |
| D. | Mutual Institutional and Government Agencies |
| Answer» B. Multilateral Institutional and Government Agencies | |
| 754. |
*/*_Type of bonds that pay coupon interest are classified as? |
| A. | forward bond |
| B. | payment bonds |
| C. | coupon bond |
| D. | interest bonds |
| Answer» D. interest bonds | |
| 755. |
*/*_In zero coupon bonds, impact of lower duration on maturity is that? |
| A. | maturity will be higher |
| B. | maturity will be lower |
| C. | maturity will be zero |
| D. | maturity will be elastic |
| Answer» B. maturity will be lower | |
| 756. |
*/*_In zero coupon bonds, increase in duration with respect to maturity must be at? |
| A. | decreasing rate |
| B. | increasing rate |
| C. | alarming rate |
| D. | inelastic rate |
| Answer» B. increasing rate | |
| 757. |
*/*_Duration which is divided by interest rate plus one is classified as? |
| A. | decreased duration |
| B. | increase duration |
| C. | modified duration |
| D. | at par duration |
| Answer» D. at par duration | |
| 758. |
*/*_Theory according to which difference between expected appreciation and foreign interest must be equal to domestic interest rate is called? |
| A. | interest rate parity theorem |
| B. | appreciation parity theorem |
| C. | domestic parity theorem |
| D. | foreign interest parity theorem |
| Answer» B. appreciation parity theorem | |
| 759. |
*/*_Theory which considers change in exchange rate with fluctuations in inflation rates is classified as? |
| A. | liquidated power parity |
| B. | purchasing power parity |
| C. | selling power parity |
| D. | volatile power parity |
| Answer» C. selling power parity | |
| 760. |
*/*_Ownership of mortgaged property will be transferred to financial institution if? |
| A. | borrower defaults |
| B. | borrower does not default |
| C. | borrower want less rate |
| D. | borrower want profit |
| Answer» B. borrower does not default | |
| 761. |
*/*_More instability in currency is called as? |
| A. | country risk |
| B. | financial risk |
| C. | currency risk |
| D. | liquidity risk |
| Answer» D. liquidity risk | |
| 762. |
*/*_Gold standard introduced in? |
| A. | 1913 |
| B. | 1990 |
| C. | 1876 |
| D. | 1944 |
| Answer» D. 1944 | |
| 763. |
*/*_Which of following causes do investors employ foreign exchange market? |
| A. | currency hedging |
| B. | currency speculation |
| C. | currency conversion |
| D. | all of above |
| Answer» E. | |
| 764. |
*/*_Simplicity with which bondholders and shareholders can change their investments into cash is known? |
| A. | barter |
| B. | hedging |
| C. | arbitrage |
| D. | liquidity |
| Answer» E. | |
| 765. |
%_Market value size of outstanding instruments of capital markets depends on factors_% |
| A. | primary cash flows |
| B. | number of issued securities |
| C. | market prices of securities |
| D. | both b and c |
| Answer» E. | |
| 766. |
%_Federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as_% |
| A. | counter instruments |
| B. | long term instruments |
| C. | money market instruments |
| D. | capital market instruments |
| Answer» D. capital market instruments | |
| 767. |
%_Major assets of commercial banks are_% |
| A. | commercial loans |
| B. | consumer loans |
| C. | deposits |
| D. | both a and c |
| Answer» E. | |
| 768. |
%_In commercial banks, subordinate debentures and subordinate notes are considered as_% |
| A. | stated rates |
| B. | banks debentures |
| C. | banks liabilities |
| D. | banks deposits |
| Answer» D. banks deposits | |
| 769. |
%_Financial intermediaries that make loans available and accept long term and short term debts for funding are considered as_% |
| A. | activity institutions |
| B. | investment companies |
| C. | mortgage companies |
| D. | finance companies |
| Answer» E. | |
| 770. |
%_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 | |
| 771. |
%_A country has a negative balance of trade it means the balance of payments on current account_% |
| A. | Should also be negative |
| B. | Should be positive |
| C. | May be positive or negative |
| D. | Should be same as balance of trade |
| Answer» E. | |
| 772. |
%_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 | |
| 773. |
%_The Imports and Exports (Control. Act was passed in the year:_% |
| A. | 1955 |
| B. | 1947 |
| C. | 1977 |
| D. | 1996 |
| Answer» C. 1977 | |
| 774. |
%_The process of acquiring technology from other country is called:_% |
| A. | Licensing |
| B. | Franchising |
| C. | Technology Transfer |
| D. | Joint Venture |
| Answer» B. Franchising | |
| 775. |
%_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 | |
| 776. |
%_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 | |
| 777. |
%_MIGA stands for_% |
| A. | Multilateral Investment Guarantee Agency |
| B. | Multilateral Institutional and Government Agencies |
| C. | Mutual Interest Guaranteeing Agencies |
| D. | Mutual Institutional and Government Agencies |
| Answer» B. Multilateral Institutional and Government Agencies | |
| 778. |
%_Intrinsic value of an option is $490 and price of underlying asset is $290 then exercise price of an option is_% |
| A. | $290 |
| B. | $780 |
| C. | $490 |
| D. | $200 |
| Answer» D. $200 | |
| 779. |
%_Type of liability in which stockholders losses are counted for only invested amount in firm is classified as_% |
| A. | counted liability |
| B. | invested liability |
| C. | unlimited liability |
| D. | limited liability |
| Answer» E. | |
| 780. |
%_Position which occurs because of selling floor and buying cap is classified as_% |
| A. | floating collar |
| B. | fixed collar |
| C. | currency collar |
| D. | collar |
| Answer» E. | |
| 781. |
%_Form of market efficiency in which stock current prices reflects volume information and historic prices of company is classified as_% |
| A. | weak form of market efficiency |
| B. | strong form of market efficiency |
| C. | semi-strong form market efficiency |
| D. | expensive form market efficiency |
| Answer» B. strong form of market efficiency | |
| 782. |
%_Type of preferred stock whose paid dividends are more than promised dividends is classified as_% |
| A. | non cumulative preferred stock |
| B. | cumulative preferred stock |
| C. | non participating preferred stock |
| D. | participating preferred stock |
| Answer» E. | |
| 783. |
%_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 | |
| 784. |
%_Situation in which large portion of majority is borrowed from broker of investor is classified as_% |
| A. | future investment |
| B. | forward investment |
| C. | leveraged investment |
| D. | non-leveraged investment |
| Answer» D. non-leveraged investment | |
| 785. |
%_Consider buying of put option, probability that a buyer would have negative payoff increases with the_% |
| A. | increase in stock price |
| B. | decrease in stock price |
| C. | increase in maturity duration |
| D. | decrease in maturity duration |
| Answer» B. decrease in stock price | |
| 786. |
%_Capital gain is subtracted from return to stockholders to calculate_% |
| A. | periodic dividend payments |
| B. | constant spot rate payment |
| C. | constant forward rate payment |
| D. | constant future rate payment |
| Answer» B. constant spot rate payment | |
| 787. |
%_Funds demand which is pushed by users of funds in financial markets are classified as_% |
| A. | supply of loan-able funds |
| B. | demand of loan-able funds |
| C. | compounded funds |
| D. | savings funds |
| Answer» C. compounded funds | |
| 788. |
%_Formula of effective annual return is written as_% |
| A. | (1+r) c - 1 |
| B. | (2+r) c - 2 |
| C. | (3+r) c - 3 |
| D. | (1+r) c - 5 |
| Answer» B. (2+r) c - 2 | |
| 789. |
%_When business companies started investing with funds generated internally is a point which shows that_% |
| A. | cost of loanable funds is high |
| B. | cost of loanable fund is low |
| C. | equilibrium is zero |
| D. | equilibrium is negative |
| Answer» B. cost of loanable fund is low | |
| 790. |
%_Plant and equipment are examples of_% |
| A. | long term fixed assets |
| B. | short term fixed assets |
| C. | short term working capital |
| D. | long term working capital |
| Answer» B. short term fixed assets | |
| 791. |
%_Earned interest rate which is reinvested in other investment is classified as_% |
| A. | compound interest |
| B. | investment risk |
| C. | interest rate |
| D. | stated rate |
| Answer» B. investment risk | |
| 792. |
%_If time value of an option is $200 and intrinsic value of an option is $250 then price of option is_% |
| A. | $50 |
| B. | $550 |
| C. | $200 |
| D. | $250 |
| Answer» C. $200 | |
| 793. |
%_If exercise price of an option is $360 and intrinsic value of an option is $160 then price of an underlying asset is_% |
| A. | $200 |
| B. | $520 |
| C. | $160 |
| D. | $360 |
| Answer» B. $520 | |
| 794. |
%_Type of option that can be exercised only at date of expiration is classified as_% |
| A. | European option |
| B. | Canadian option |
| C. | Australian option |
| D. | American option |
| Answer» B. Canadian option | |
| 795. |
%_Orders that are transacted at specified price are considered as_% |
| A. | red herring order |
| B. | limit order |
| C. | unlimited order |
| D. | assets order |
| Answer» C. unlimited order | |
| 796. |
%_International bankers_% |
| A. | letter of confirmation |
| B. | letter of transfer |
| C. | letter of credits |
| D. | letter of buying |
| Answer» D. letter of buying | |
| 797. |
%_Non-competitive bidders get allocation of treasury bills on_% |
| A. | federal basis |
| B. | last basis |
| C. | firstly basis |
| D. | preferential basis |
| Answer» E. | |
| 798. |
%_Treasury bills have high liquidity because of_% |
| A. | extensive secondary markets |
| B. | extensive primary markets |
| C. | premium money markets |
| D. | discounted money markets |
| Answer» B. extensive primary markets | |
| 799. |
%_Investors held commercial papers generally from_% |
| A. | issuance to maturity |
| B. | within 1 to 2 days |
| C. | within 3 to 4 days |
| D. | within 4 to 5 days |
| Answer» B. within 1 to 2 days | |
| 800. |
%_For a particular security transaction, agreement is classified as 'reverse repo' with point of view of_% |
| A. | security liability |
| B. | security buyer |
| C. | security seller |
| D. | security function |
| Answer» C. security seller | |