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.
| 1001. |
_Call premium of bond is $630 and call price of bond is $240 then face value of bond is$? |
| A. | 2.63% |
| B. | $870 |
| C. | $390 |
| D. | $2.63 |
| Answer» D. $2.63 | |
| 1002. |
_Foreign bonds that are issued before Eurobonds are also called as$? |
| A. | traditional international bonds |
| B. | traditional local bonds |
| C. | traditional global bonds |
| D. | traditional currency bonds |
| Answer» B. traditional local bonds | |
| 1003. |
_In US treasury, inflation indexed bond is classified as$? |
| A. | treasury inflation protection securities |
| B. | treasury inflation protection notes |
| C. | treasury inflation commercial papers |
| D. | inflation coupon protection securities |
| Answer» B. treasury inflation protection notes | |
| 1004. |
_Information about sovereign borrowers and corporate borrowers is generated by the$? |
| A. | bond rating agencies |
| B. | bond issuance agencies |
| C. | federal placement |
| D. | private pavement agencies |
| Answer» B. bond issuance agencies | |
| 1005. |
_Repurchase agreements having maturity of one week or lesser have denominations of$? |
| A. | $10 million or more |
| B. | $20 million or more |
| C. | $25 million or more |
| D. | $15 million or more |
| Answer» D. $15 million or more | |
| 1006. |
_Bonds having longer maturity on original loans than promised payments are classified as$? |
| A. | developed bonds |
| B. | developing bonds |
| C. | Brady bonds |
| D. | swapped bonds |
| Answer» D. swapped bonds | |
| 1007. |
_IN negotiated sale, services provided by investment banks are$? |
| A. | origination services |
| B. | document collection services |
| C. | advising services |
| D. | both a and c |
| Answer» E. | |
| 1008. |
_Treasury bonds and notes pays interest rate is classified as$? |
| A. | LIBOR rate monthly |
| B. | coupon interest monthly |
| C. | coupon interest semi-annually |
| D. | coupon interest annually |
| Answer» D. coupon interest annually | |
| 1009. |
_Call premium is $640 and face value of bond is $285 then call price of bonds is$? |
| A. | $2.25 |
| B. | $355 |
| C. | $925 |
| D. | 2.25% |
| Answer» D. 2.25% | |
| 1010. |
_Principal value of TIPS is increased or decreased and is based on measure of$? |
| A. | consumer price index |
| B. | manufacturing price index |
| C. | auction selling index |
| D. | inflation payment index |
| Answer» B. manufacturing price index | |
| 1011. |
_If revenue bonds becomes default, bondholders must$? |
| A. | not be paid |
| B. | be paid |
| C. | be sold |
| D. | not be sold |
| Answer» C. be sold | |
| 1012. |
_Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as$? |
| A. | subordinated debentures |
| B. | ordinate debentures |
| C. | expansion debentures |
| D. | premium debentures |
| Answer» B. ordinate debentures | |
| 1013. |
_Yield on subordinated bonds as compared to non-subordinated bonds is considered as$? |
| A. | highly risky and higher yields |
| B. | highly risky and lower yields |
| C. | less risky and higher yields |
| D. | less risky and lower yields |
| Answer» B. highly risky and lower yields | |
| 1014. |
_Issuance of securities in which investment bank does not guarantee back up price and act as distributor in planning of issue is considered as$? |
| A. | best efforts offering |
| B. | least good index |
| C. | least good premium |
| D. | least good discount price |
| Answer» B. least good index | |
| 1015. |
_In capital markets, instruments which are traded having maturity of more than one year is classified as$? |
| A. | contraction mortgages |
| B. | bonds and mortgages |
| C. | expansion bonds |
| D. | expansion mortgages |
| Answer» C. expansion bonds | |
| 1016. |
_Treasury security in which final principal payment is separated from periodic interest payment is classified as$? |
| A. | STRIP |
| B. | separated security |
| C. | inflated security |
| D. | coupon paid security |
| Answer» B. separated security | |
| 1017. |
_STRIPS are used effectively to receive$? |
| A. | One set of payment |
| B. | Two sets of payments |
| C. | Three sets of payments |
| D. | Four sets of payments |
| Answer» B. Two sets of payments | |
| 1018. |
_Bond which is denominated in dollars and is issued in European financial markets is considered as$? |
| A. | Australian bonds |
| B. | Eurobonds |
| C. | interbank bonds |
| D. | interbank bonds |
| Answer» C. interbank bonds | |
| 1019. |
_Thin trading of municipal bonds in secondary markets is because of$? |
| A. | excess of information |
| B. | lack of information |
| C. | frequent information |
| D. | infrequent information |
| Answer» C. frequent information | |
| 1020. |
_When characteristics of bonds are perceived as unfavourable or favourable to holders of bond then differences of yield spread$? |
| A. | must not changes |
| B. | must changes |
| C. | must be debited |
| D. | must be credited |
| Answer» C. must be debited | |
| 1021. |
_Current market price of common stock is $18 and conversion rate received on conversion is $410 to calculate$? |
| A. | $3,580 |
| B. | $5,380 |
| C. | $6,380 |
| D. | $7,380 |
| Answer» E. | |
| 1022. |
_Call premium is $385 and face value of bond is $285 then call price of bonds is$? |
| A. | $100 |
| B. | $770 |
| C. | $670 |
| D. | $570 |
| Answer» C. $670 | |
| 1023. |
_Marginal income tax rate is 46.8% and before tax rate of return is 15.5% then after tax rate of return is$? |
| A. | 7.25% |
| B. | 8.25% |
| C. | 10.25% |
| D. | 9.25% |
| Answer» C. 10.25% | |
| 1024. |
_Financial firms such as mutual fund and insurance companies are also called$? |
| A. | insured financials |
| B. | guaranteed business |
| C. | credit business |
| D. | business financial |
| Answer» E. | |
| 1025. |
_Eurobonds are traded in$? |
| A. | only in issuing country |
| B. | stagnant exchange |
| C. | telephonic market |
| D. | over counter market |
| Answer» E. | |
| 1026. |
_Votes for each stock holder were multiplied to number of elected directors to calculate$? |
| A. | number of cumulative class |
| B. | number of votes assigned |
| C. | number of elective candidates |
| D. | number of common stock shares |
| Answer» C. number of elective candidates | |
| 1027. |
_Periodic payments of dividends are subtracted from return to stockholders to calculate$? |
| A. | gain on spot contract |
| B. | loss on spot contract |
| C. | gain on capital |
| D. | loss on capital |
| Answer» D. loss on capital | |
| 1028. |
_Intrinsic value of call option is considered as in money if$? |
| A. | stock price > exercise price |
| B. | stock price < exercise price |
| C. | bond price > treasury price |
| D. | treasury price < bond price |
| Answer» B. stock price < exercise price | |
| 1029. |
_Form of market efficiency which considers speed with which information at public level is impounded in prices of stock is classified as$? |
| A. | semi-strong form market efficiency |
| B. | expensive form market efficiency |
| C. | weak form of market efficiency |
| D. | strong form of market efficiency |
| Answer» B. expensive form market efficiency | |
| 1030. |
_Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as$? |
| A. | non participating preferred stock |
| B. | participating preferred stock |
| C. | non cumulative preferred stock |
| D. | cumulative preferred stock |
| Answer» E. | |
| 1031. |
_Swaps that are classified as long term contracts are$? |
| A. | currency swaps |
| B. | notion swaps |
| C. | floating swaps |
| D. | fixed swaps |
| Answer» B. notion swaps | |
| 1032. |
_Types of corporate stock that are traded in exchange markets are$? |
| A. | common stock |
| B. | preferred stock |
| C. | quoted stock |
| D. | both a and b |
| Answer» E. | |
| 1033. |
_Type of exchange members who only buy and sell for their personal account are classified as$? |
| A. | non-investment traders |
| B. | professional traders |
| C. | commercial traders |
| D. | investment traders |
| Answer» C. commercial traders | |
| 1034. |
Chief cause that market worth of organization might raise in reaction to privatization is expected$? |
| A. | improvements in financial performance |
| B. | improvement in profits |
| C. | improvements in exports |
| D. | improvement in managerial efficiency |
| Answer» E. | |
| 1035. |
DFI is part of$? |
| A. | current account |
| B. | fixed account |
| C. | long term account |
| D. | financial account |
| Answer» E. | |
| 1036. |
On an accounting report of cash flows an "increase (decrease) in cash and cash equivalents" shows$? |
| A. | a cash flow from operating activities |
| B. | a cash flow from investing activities. |
| C. | a cash flow from financing activities. |
| D. | none of above. |
| Answer» E. | |
| 1037. |
Agency problem is between$? |
| A. | Manager and Employees |
| B. | Manager and Government |
| C. | Manager and Shareholders |
| D. | Parent to Subsidiary |
| Answer» D. Parent to Subsidiary | |
| 1038. |
Impact of 9/11 is$? |
| A. | Political Instability |
| B. | Terrorist Attack |
| C. | More foreign investment |
| D. | Economic Instability |
| Answer» E. | |
| 1039. |
Portfolio Investment is dealing in$? |
| A. | Same securities |
| B. | Short term investment |
| C. | Different securities |
| D. | Don |
| Answer» D. Don | |
| 1040. |
Which of following is not a means in which agency troubles can be lessen through corporate rule?$? |
| A. | Executive compensation |
| B. | Threat of hostile takeover |
| C. | Acquisition of a foreign subsidiary |
| D. | Monitoring by large shareholders |
| Answer» D. Monitoring by large shareholders | |
| 1041. |
Not a currency but basically a component of account of$? |
| A. | compensatory financing facility |
| B. | special drawing rights |
| C. | multilateral investment guarantee agency |
| D. | structural adjustment loan |
| Answer» C. multilateral investment guarantee agency | |
| 1042. |
The system operated by the WTO is known as the$? |
| A. | multilateral trading system |
| B. | bilateral trading system |
| C. | ratified system |
| D. | ungratified system |
| Answer» B. bilateral trading system | |
| 1043. |
India s foreign exchange rate system is?$? |
| A. | Fixed target |
| B. | Managed float |
| C. | Free float |
| D. | Fixed and Float |
| Answer» C. Free float | |
| 1044. |
International Finance Corporation established in$? |
| A. | 1956 |
| B. | 1960 |
| C. | 1966 |
| D. | 1970 |
| Answer» B. 1960 | |
| 1045. |
The market where long term securities (shares, bonds, etc. are bought and sold is called as$? |
| A. | money market |
| B. | capital market |
| C. | primary market |
| D. | secondary market |
| Answer» E. | |
| 1046. |
Agreement to exchange one currency for another at a specified exchange rate and date is$? |
| A. | Currency swap |
| B. | Swap points |
| C. | Currency put option |
| D. | Currency call option |
| Answer» B. Swap points | |
| 1047. |
A main difference among real and nominal interest proceeds is that$? |
| A. | real returns adjust for inflation and nominal returns do not |
| B. | real returns use actual cash flows and nominal use expected cash flows |
| C. | real interest adjusts for commissions and nominal returns do not |
| D. | real returns show highest possible return and nominal returns show lowest possible returns |
| Answer» B. real returns use actual cash flows and nominal use expected cash flows | |
| 1048. |
Political constancy is chief aspect concerning$? |
| A. | exchange risk |
| B. | systematic risk |
| C. | non-systematic risk |
| D. | country risk |
| Answer» E. | |
| 1049. |
Expected worth is the$? |
| A. | inverse of standard deviation |
| B. | correlation between a security |
| C. | same as discrete probability distribution |
| D. | weighted average of all possible outcomes |
| Answer» E. | |
| 1050. |
An Acquisition is$? |
| A. | More risky than other foreign investment techniques |
| B. | Less risky than other foreign investment techniques |
| C. | A way to share control over foreign operations |
| D. | A way to share risk of a new foreign investment |
| Answer» B. Less risky than other foreign investment techniques | |