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.
| 951. |
_Interest rate of certificate of deposits is quoted using a time span of$? |
| A. | 250 days a year |
| B. | 150 days a year |
| C. | 365 day a year |
| D. | 360 day a year |
| Answer» E. | |
| 952. |
_Banks that deals with reciprocal agreements and accounts are considered as$? |
| A. | correspondent banks |
| B. | non-correspondent banks |
| C. | reciprocal transactions |
| D. | functional banks |
| Answer» B. non-correspondent banks | |
| 953. |
_Certificate of deposits which are usually negotiable are issued by$? |
| A. | banks |
| B. | financial market |
| C. | stock exchange |
| D. | business corporations |
| Answer» B. financial market | |
| 954. |
_Process of issuing treasury bills is classified as$? |
| A. | treasury trading auction |
| B. | treasury fund auction |
| C. | treasury bills auction |
| D. | treasury bills transfer |
| Answer» D. treasury bills transfer | |
| 955. |
_The exchange rate is the.$? |
| A. | total yearly amount of money changed from one country’s currency to another country’s currency |
| B. | total monetary value of exports minus imports |
| C. | Exchange value of one country currency in terms of another country currency |
| D. | Price of one country currency in terms of another country currency |
| Answer» E. | |
| 956. |
_What basis the exchange rates are determined$? |
| A. | supply |
| B. | Demand |
| C. | Demand and supply |
| D. | Forex |
| Answer» D. Forex | |
| 957. |
_The major players in the foreign exchange market are.$? |
| A. | commercial banks |
| B. | corporates |
| C. | exchange brokers |
| D. | central bank of the country and the Central Government |
| Answer» D. central bank of the country and the Central Government | |
| 958. |
_The insurance policy that covers exporters against commercial and political risk is.$? |
| A. | General insurance |
| B. | ECGC |
| C. | Marine insurance |
| D. | Fire insurance |
| Answer» E. | |
| 959. |
_The exports made by an exporter or manufacturer on behalf of another exporters are called$? |
| A. | Registered Exporter |
| B. | Manufacturer Exporter |
| C. | Merchant Exporter |
| D. | Third Party Exporter |
| Answer» B. Manufacturer Exporter | |
| 960. |
_In financial markets, decrease in investment results in$? |
| A. | increase in interest rate |
| B. | decrease in interest rate |
| C. | increase in availability |
| D. | decrease in availability |
| Answer» B. decrease in interest rate | |
| 961. |
_Funds provided by suppliers of funds in financial markets are classified as$? |
| A. | compounded funds |
| B. | savings funds |
| C. | supply of loan-able funds |
| D. | demand of loan-able funds |
| Answer» D. demand of loan-able funds | |
| 962. |
_For other non-price conditions, decrease in equilibrium interest rate leads to$? |
| A. | increase restrictiveness |
| B. | decrease restrictiveness |
| C. | zero restrictiveness |
| D. | negative restriction |
| Answer» B. decrease restrictiveness | |
| 963. |
_Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include$? |
| A. | tax-ability |
| B. | covert ability |
| C. | call ability |
| D. | inflation premium |
| Answer» E. | |
| 964. |
_Forgone amount for holding balances of cash at time they are received is classified as$? |
| A. | forgone cost |
| B. | debt cost |
| C. | opportunity cost |
| D. | balances cost |
| Answer» D. balances cost | |
| 965. |
_Who concern with relations between security returns$? |
| A. | Markowitz diversification |
| B. | random diversification |
| C. | Friedman diversification |
| D. | correlating diversification |
| Answer» B. random diversification | |
| 966. |
_A closed-end fund is a mutual fund in which shares issue just when fund is$? |
| A. | organized |
| B. | unorganized |
| C. | copied |
| D. | random behaviour showing |
| Answer» B. unorganized | |
| 967. |
_Selling price is added in to repurchase agreement paid interest to calculate$? |
| A. | direct price of security |
| B. | repurchase price of securities |
| C. | purchase price of security |
| D. | transaction price of security |
| Answer» C. purchase price of security | |
| 968. |
_Government issues treasury bills at discounted rate from$? |
| A. | face value |
| B. | book value |
| C. | premium value |
| D. | federal value |
| Answer» B. book value | |
| 969. |
_Type of market in which short term instruments are traded and purchased by economic units is classified as$? |
| A. | money markets |
| B. | capital markets |
| C. | debt markets |
| D. | economic markets |
| Answer» B. capital markets | |
| 970. |
_Accounting entry of institutions who borrows federal funds is as$? |
| A. | income in income statement |
| B. | expense on income statement |
| C. | liability on balance sheet |
| D. | assets on balance sheet |
| Answer» D. assets on balance sheet | |
| 971. |
_Type of negotiable certificate of deposits is usually classified as$? |
| A. | primary instrument |
| B. | bearer instrument |
| C. | term instrument |
| D. | interim instrument |
| Answer» C. term instrument | |
| 972. |
_Type of Eurodollars deposits denominated in banks outside United States is classified as$? |
| A. | mutual certificate of deposit |
| B. | euro dollar certificate of deposit |
| C. | expansionary certificate of deposit |
| D. | euro dollar contraction deposit |
| Answer» C. expansionary certificate of deposit | |
| 973. |
_In Eurodollar market, increase in demand of Euro dollars results in$? |
| A. | increase in LIBOR |
| B. | decrease in LIBOR |
| C. | increase in KIBOR |
| D. | decrease in KIBOR |
| Answer» B. decrease in LIBOR | |
| 974. |
_Federal Reserve decreases money supply by$? |
| A. | selling Swiss bills |
| B. | buying Swiss bills |
| C. | selling treasury bills |
| D. | buying treasury bills |
| Answer» D. buying treasury bills | |
| 975. |
_Centralized market place where agents can have efficiently and quickly transactions is classified as$? |
| A. | secondary markets |
| B. | central market |
| C. | traded market |
| D. | agents market |
| Answer» B. central market | |
| 976. |
_Reduction of risk by holding large number of securities in portfolio of assets is classified as$? |
| A. | diversification |
| B. | selling ability |
| C. | reduction ability |
| D. | director ability |
| Answer» B. selling ability | |
| 977. |
_In capital markets, major suppliers of trading instruments are$? |
| A. | government and corporations |
| B. | liquid corporations |
| C. | instrumental corporations |
| D. | manufacturing corporations |
| Answer» B. liquid corporations | |
| 978. |
_Institutions deals in financial functions and protects corporations and individuals against accidents, theft and death are considered as$? |
| A. | penalty companies |
| B. | insurance companies |
| C. | events dealers |
| D. | protecting companies |
| Answer» C. events dealers | |
| 979. |
_Call premium of bond is $760 and call price of bond is $560 then face value of bond is$? |
| A. | $200 |
| B. | $300 |
| C. | $1,320 |
| D. | 1.38% |
| Answer» B. $300 | |
| 980. |
_Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as$? |
| A. | centralized instruments |
| B. | centralized stocks |
| C. | central government |
| D. | central corporations |
| Answer» D. central corporations | |
| 981. |
_Type of risk in which payments are interrupted by intervention of foreign governments is considered as$? |
| A. | channel risk |
| B. | globalization risk |
| C. | state risk |
| D. | country risk |
| Answer» E. | |
| 982. |
_Which year the Bretton Wood agreement failed?$? |
| A. | 1983 |
| B. | 1971 |
| C. | 1963 |
| D. | 1989 |
| Answer» C. 1963 | |
| 983. |
_LIBOR refers$? |
| A. | London Inter Bank Offered Rate |
| B. | London International Bank Offered Rate |
| C. | London interest for Bank offering Rate |
| D. | London Interest Bond off shore Rate |
| Answer» B. London International Bank Offered Rate | |
| 984. |
_The number of nostro accounts that can be maintained by a bank in a particular currency is$? |
| A. | One |
| B. | not exceeding three |
| C. | minimum two |
| D. | no such limit |
| Answer» E. | |
| 985. |
_Conversion values is $9500 and conversion rate received on stock conversion is 460 then current market price of stock is$? |
| A. | $12.65 |
| B. | $15.65 |
| C. | $17.65 |
| D. | $20.65 |
| Answer» E. | |
| 986. |
_Current market price of common stock is $15 and conversion rate received on conversion is $320 to calculate$? |
| A. | $3,800 |
| B. | $2,800 |
| C. | $4,800 |
| D. | $5,800 |
| Answer» D. $5,800 | |
| 987. |
_Federal Reserve increases money supply by$? |
| A. | selling treasury bills |
| B. | buying treasury bills |
| C. | selling Swiss bills |
| D. | buying Swiss bills |
| Answer» C. selling Swiss bills | |
| 988. |
_Temporary imbalances between operating receipts and operating expenditures are funded with help of$? |
| A. | state bonds |
| B. | federal bonds |
| C. | municipal bonds |
| D. | reserve bonds |
| Answer» D. reserve bonds | |
| 989. |
_Intrinsic value of put option is$? |
| A. | exercise price // stock price |
| B. | exercise price - stock price |
| C. | exercise price + stock price |
| D. | exercise price x stock price |
| Answer» C. exercise price + stock price | |
| 990. |
_If equilibrium interest rate decreases and curve of funding supplied shifts to right and downwards then impact on spending is$? |
| A. | increase in near term |
| B. | decrease in near term |
| C. | increase in long term |
| D. | decrease in long term |
| Answer» C. increase in long term | |
| 991. |
_Two tier exchange rate system is a form of$? |
| A. | Different exchange rate |
| B. | Fixed rate |
| C. | Multiple exchange rate |
| D. | Flexible rate |
| Answer» D. Flexible rate | |
| 992. |
_An option at-the-money when$? |
| A. | The strike price is greater than the spot price, in the case of a call option |
| B. | The strike price is greater than spot price, in the case of a put option |
| C. | The option has a ready market |
| D. | The strike price and the spot price are the same |
| Answer» E. | |
| 993. |
_An interest rate cap is a series of$? |
| A. | Call options |
| B. | Put options |
| C. | Periodical payments |
| D. | Differential payments |
| Answer» B. Put options | |
| 994. |
_Cash and carry arbitrage explains the determination of$? |
| A. | Forward Rates for currencies |
| B. | Spot rates for currencies |
| C. | Both forward and spot rates for currencies |
| D. | Penalty for non-execution of forward contracts |
| Answer» B. Spot rates for currencies | |
| 995. |
_In India currency-notes issue system is based on$? |
| A. | Proportional Reserve System |
| B. | Minimum Reserve System |
| C. | Fixed Exchange Rate System |
| D. | Fully Convertibility System |
| Answer» C. Fixed Exchange Rate System | |
| 996. |
_In a quote exchange rate, the currency that is to purchase with another currency is called$? |
| A. | Liquid currency |
| B. | Foreign Currency |
| C. | Local Currency |
| D. | Base currency |
| Answer» E. | |
| 997. |
_Purchasing-power parity (PPP) refers to__________$? |
| A. | the concept that the same goods should sell for the same price across countries after exchange rates are taken into account |
| B. | the concept that interest rates across countries will eventually be the same |
| C. | the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries |
| D. | the natural offsetting relationship provided by costs and revenues in similar market environments |
| Answer» B. the concept that interest rates across countries will eventually be the same | |
| 998. |
_Commercial paper issued with low interest rate thus commercial paper are categorized as$? |
| A. | payables rating |
| B. | commercial rating |
| C. | poor credit rating |
| D. | better credit rating |
| Answer» E. | |
| 999. |
_Type of bonds which is fully backed by credit and faith of issuer is classified as$? |
| A. | general obligation tax |
| B. | general obligation savings |
| C. | general obligation bonds |
| D. | general obligation notes |
| Answer» D. general obligation notes | |
| 1000. |
_Current market price is multiplied to conversion rate received on conversion to calculate$? |
| A. | conversion value |
| B. | current value |
| C. | market value |
| D. | stock value |
| Answer» B. current value | |