MCQOPTIONS
Saved Bookmarks
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.
| 1201. |
Rate of return on non-callable bonds is added into value of issuer option to calculate |
| A. | return on assets |
| B. | return on callable bond |
| C. | return on non-callable bonds |
| D. | return on equity |
| Answer» C. return on non-callable bonds | |
| 1202. |
Financial instruments such as treasury bonds and notes have |
| A. | lesser cost fluctuations |
| B. | wider price fluctuations |
| C. | less price fluctuations |
| D. | wider cost fluctuations |
| Answer» C. less price fluctuations | |
| 1203. |
Municipal bonds are securities issued by local and state |
| A. | schools |
| B. | governments |
| C. | city and country |
| D. | all of above |
| Answer» E. | |
| 1204. |
Dimensions in bonds markets are |
| A. | treasury notes and bonds |
| B. | corporate bonds |
| C. | municipal bonds |
| D. | all of above |
| Answer» E. | |
| 1205. |
Value of conversion option to bond holder is $740 and rate of return on non-convertible bond is $540 then rate of return on convertible bond is |
| A. | 1.37% |
| B. | $1,280 |
| C. | $1.37 |
| D. | $200 |
| Answer» E. | |
| 1206. |
Requirement of certain amount of issued bond that must be retired every year is classified as |
| A. | sinking fund provision |
| B. | sinking fund premium |
| C. | sinking fund discount |
| D. | floating fund provision |
| Answer» B. sinking fund premium | |
| 1207. |
Face value of bond is $550 and call price of bond is $475 then value of call premium is |
| A. | $1.16 |
| B. | $1,025 |
| C. | $75 |
| D. | 1.16% |
| Answer» D. 1.16% | |
| 1208. |
If bonds are used as an investment vehicle by investors of institutions then bond must be |
| A. | automated |
| B. | discounted |
| C. | rated |
| D. | stocked |
| Answer» D. stocked | |
| 1209. |
Private placed stock and privately placed bonds are considered as |
| A. | most illiquid securities |
| B. | most liquid securities |
| C. | least liquid securities |
| D. | least illiquid securities |
| Answer» B. most liquid securities | |
| 1210. |
Foreign bonds issued in United States financial institutions are classified as |
| A. | bull dog bonds |
| B. | bull cat bonds |
| C. | Yankee bonds |
| D. | samurai bonds |
| Answer» D. samurai bonds | |
| 1211. |
Foreign bonds issued in United Kingdom financial institutions are classified as |
| A. | Yankee bonds |
| B. | samurai bonds |
| C. | bull dog bonds |
| D. | bull cat bonds |
| Answer» D. bull cat bonds | |
| 1212. |
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 | |
| 1213. |
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 | |
| 1214. |
As compared to unsecured bonds, mortgage bonds are considered as |
| A. | more risky |
| B. | less risky |
| C. | term risk |
| D. | serial risk |
| Answer» C. term risk | |
| 1215. |
If price of municipal bonds suddenly changes because of an unexpected interest rate change then investment bank |
| A. | faces a high profit |
| B. | faces a loss |
| C. | face a inflation |
| D. | face an index risk |
| Answer» C. face a inflation | |
| 1216. |
Legal contract which states legal rights of seller and buyer is classified as |
| A. | long term indenture |
| B. | federal indenture |
| C. | private indenture |
| D. | bond indenture |
| Answer» E. | |
| 1217. |
Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as |
| A. | characteristics of fundamental stock |
| B. | characteristics of claimed stock |
| C. | characteristics of common stock |
| D. | characteristics of preferred stock |
| Answer» D. characteristics of preferred stock | |
| 1218. |
Total count of all contracts and options such as call, put and futures outstanding at start of working day is classified as |
| A. | non clearing interest |
| B. | clearing interest |
| C. | close interest |
| D. | open interest |
| Answer» E. | |
| 1219. |
Consider buying call option, if price of stock rises then buyer of call option has |
| A. | low potential of losses |
| B. | high potential of losses |
| C. | high potential of profit |
| D. | low potential of profit |
| Answer» D. low potential of profit | |
| 1220. |
Type of financial security whose payoff is linked to any other security is called |
| A. | strong security |
| B. | semi-strong security |
| C. | derivate security |
| D. | non-derivate security |
| Answer» D. non-derivate security | |
| 1221. |
Intrinsic value of option is subtracted from exercise price of an option to calculate |
| A. | forward price of asset |
| B. | price of underlying asset |
| C. | future price of asset |
| D. | spot price of asset |
| Answer» C. future price of asset | |
| 1222. |
Prices that are adjusted day to day to picture current conditions of futures markets are classified as |
| A. | market future prices |
| B. | market to market prices |
| C. | market to invest prices |
| D. | present market prices |
| Answer» C. market to invest prices | |
| 1223. |
Margin which must be maintained as soon as futures contract takes place is classified as |
| A. | spot margin |
| B. | maintenance margin |
| C. | futures margin |
| D. | forwards margin |
| Answer» C. futures margin | |
| 1224. |
Price of underlying asset is added into intrinsic value of option to calculate |
| A. | forward price of option |
| B. | exercise price of option |
| C. | book value of option |
| D. | spot price of option |
| Answer» C. book value of option | |
| 1225. |
Formed in 1960 is |
| A. | World Trade Organization |
| B. | World Bank |
| C. | Regional Development Agency |
| D. | International Development Association |
| Answer» E. | |
| 1226. |
From this which is NOT a cash outflow for organization |
| A. | depreciation. |
| B. | dividends. |
| C. | interest payments. |
| D. | taxes. |
| Answer» B. dividends. | |
| 1227. |
Less tax rate in a state get intention of |
| A. | imports |
| B. | exports |
| C. | direct foreign investment |
| D. | privatization |
| Answer» D. privatization | |
| 1228. |
One of generally prevalent aspects conflicting with recognition of ambition of an MNC is existence of |
| A. | Agency problem |
| B. | Licensing |
| C. | Corporate Governance |
| D. | Management |
| Answer» B. Licensing | |
| 1229. |
In real world, all factors of production are perfectly |
| A. | Mobile |
| B. | Immobile |
| C. | Somewhat mobile |
| D. | All of answers are correct |
| Answer» C. Somewhat mobile | |
| 1230. |
Licensing permits firms to employ their expertise in foreign marketplace without a |
| A. | Investment |
| B. | Acquisition of Subsidiary |
| C. | International trade |
| D. | Major investment in foreign countries |
| Answer» E. | |
| 1231. |
Political hazard is related to danger of loss of worth due to |
| A. | Government or Public actions |
| B. | Exchange rate movements |
| C. | Poor corporate governance |
| D. | Unfavourable trade negotiations |
| Answer» B. Exchange rate movements | |
| 1232. |
One of biggest borrowers in globe is |
| A. | International Monetary fund |
| B. | World trade Organization |
| C. | World Bank |
| D. | International financial Corporation |
| Answer» D. International financial Corporation | |
| 1233. |
A deposit or borrowing domiciled outside the home country of the currency is called as |
| A. | foreign bond |
| B. | euro bond |
| C. | euro currency |
| D. | domestic bond |
| Answer» D. domestic bond | |
| 1234. |
Which organisation of the World Bank Group deals with matters related to the development of the poorest countries in the world? |
| A. | The International Bank for Reconstruction and Development |
| B. | The International Development Association |
| C. | The International Finance Corporation |
| D. | The Multilateral Investment Agency |
| Answer» C. The International Finance Corporation | |
| 1235. |
Difference between buying and selling rates in an exchange rate or interest rate quotation is known as |
| A. | Strike price |
| B. | Spread |
| C. | Swap points |
| D. | Spot rate |
| Answer» C. Swap points | |
| 1236. |
SIBOR refers to |
| A. | static interest bonds offered rate |
| B. | Singapore international bonds offered rate |
| C. | simple interest bearing offshore rate |
| D. | Singapore interbank offered rate |
| Answer» E. | |
| 1237. |
Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as |
| A. | Golden standard |
| B. | Flexible exchange rate |
| C. | Fixed exchange rate |
| D. | Cross exchange rate |
| Answer» E. | |
| 1238. |
If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually |
| A. | increase in value |
| B. | remain unchanged |
| C. | decrease in value. |
| D. | be returned to corporation. |
| Answer» D. be returned to corporation. | |
| 1239. |
A price weighted index is an arithmetic mean of |
| A. | future prices |
| B. | current prices |
| C. | quarter prices |
| D. | none of these |
| Answer» C. quarter prices | |
| 1240. |
Comparative edge is specializing actions in which they are |
| A. | More efficient |
| B. | Less Efficient |
| C. | Somewhat efficient |
| D. | Least Efficient |
| Answer» B. Less Efficient | |
| 1241. |
Worldwide trade is |
| A. | Buying goods from abroad |
| B. | Selling good to abroad |
| C. | Paying Foreign Currency |
| D. | All of answers are correct |
| Answer» E. | |
| 1242. |
Below Product Cycle Theory, overseas demand can be primarily contented by |
| A. | Exporting |
| B. | Importing |
| C. | Licensing |
| D. | Mobility of funds |
| Answer» B. Importing | |
| 1243. |
Promised payments on Eurobonds will be paid in |
| A. | currency of denomination |
| B. | currency of home country |
| C. | currency of Australia |
| D. | currency of local market |
| Answer» B. currency of home country | |
| 1244. |
Type of bond in which 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. | |
| 1245. |
To improve attractiveness for investors, 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 | |
| 1246. |
Department who is appointed by bond holders as representative or monitor of bonds is considered as |
| A. | trustee |
| B. | trust department |
| C. | monitoring department |
| D. | indenture department |
| Answer» B. trust department | |
| 1247. |
Investors of coupon bond will receive cash flow very soon if |
| A. | maturity is lower |
| B. | maturity is higher |
| C. | interest payment is higher |
| D. | interest payment is lower |
| Answer» D. interest payment is lower | |
| 1248. |
Type of bond for which bonds present value is greater than bonds face value is classified as |
| A. | coupon bond |
| B. | interest bonds |
| C. | discount bond |
| D. | premium bond |
| Answer» E. | |
| 1249. |
In equilibrium position, spread between foreign and domestic rate of interest must be equal to spread of |
| A. | domestic rates |
| B. | forward and spot exchange rates |
| C. | forward rate |
| D. | spot rates |
| Answer» C. forward rate | |
| 1250. |
For a foreign exchange of specific currency, non-hedged position is classified as |
| A. | open position |
| B. | close position |
| C. | currency long position |
| D. | currency short position |
| Answer» B. close position | |