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.
| 1351. |
The demand for heavy loans can cause |
| A. | excess funds for banks |
| B. | deficiencies for banks |
| C. | organized reservation |
| D. | competitive reservations |
| Answer» C. organized reservation | |
| 1352. |
Type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as |
| A. | pledged bonds |
| B. | serial bonds |
| C. | series bonds |
| D. | parallel bonds |
| Answer» C. series bonds | |
| 1353. |
Bonds that are considered investment rating bonds are given rating of |
| A. | triple B rating bonds |
| B. | double B |
| C. | triple A |
| D. | double A |
| Answer» B. double B | |
| 1354. |
Bond holder can make profit by returning bonds and exchanging with other securities if market value with conversion value |
| A. | exceed non-convertible value |
| B. | exceed collateral value |
| C. | exceed mortgage value |
| D. | exceeds market value of bond |
| Answer» E. | |
| 1355. |
As compared to Treasury bonds, trading of municipal bonds in trading market is considered as |
| A. | more index inflation |
| B. | less indexed inflation |
| C. | less active |
| D. | more active |
| Answer» D. more active | |
| 1356. |
Bonds issued by corporations for relatively longer term are classified as |
| A. | long term bonds |
| B. | short term bonds |
| C. | corporate bonds |
| D. | Federal Reserve bonds |
| Answer» D. Federal Reserve bonds | |
| 1357. |
Interest rate on floating rate Eurobonds is paid |
| A. | annually |
| B. | semi-annually |
| C. | monthly |
| D. | quarterly |
| Answer» C. monthly | |
| 1358. |
For municipal bonds, initial market is through |
| A. | local placement |
| B. | public offering |
| C. | government placement |
| D. | index placement |
| Answer» C. government placement | |
| 1359. |
In financial markets, separate trading of registered interest and principal securities have abbreviation of |
| A. | STORI |
| B. | STRIPS |
| C. | RIAPS |
| D. | STORIAP |
| Answer» C. RIAPS | |
| 1360. |
Denomination currency choice and volatility of interest rates affects |
| A. | maturity date of euro bond |
| B. | cost of euro bond |
| C. | issuance process of bonds |
| D. | process of printing money |
| Answer» C. issuance process of bonds | |
| 1361. |
According to best efforts offering, investment bank in return of providing services must |
| A. | not receive fee |
| B. | receive fee |
| C. | receive interest rate |
| D. | receive market rate of return |
| Answer» C. receive interest rate | |
| 1362. |
Foreign bonds, sovereign bonds and Eurobonds are classified as types of |
| A. | local markets |
| B. | state markets |
| C. | international markets |
| D. | national markets |
| Answer» D. national markets | |
| 1363. |
Conversion values is $7000 and conversion rate received on stock conversion is 370 then current market price of stock is |
| A. | $16.92 |
| B. | $18.92 |
| C. | $13.92 |
| D. | $11.92 |
| Answer» C. $13.92 | |
| 1364. |
Bonds that can be exchanged with other stock issued by same firm are classified as |
| A. | discount convertible bonds |
| B. | convertible bonds |
| C. | non-convertible bonds |
| D. | premium convertible bonds |
| Answer» C. non-convertible bonds | |
| 1365. |
Interest rate on Eurobonds are paid |
| A. | monthly |
| B. | quarterly |
| C. | annually |
| D. | semi-annually |
| Answer» D. semi-annually | |
| 1366. |
Type of bonds in which whole issues matures on a single date is considered as |
| A. | term bonds |
| B. | under bonds |
| C. | collateral bonds |
| D. | trustworthy bonds |
| Answer» B. under bonds | |
| 1367. |
Bonds that are not pledged against revenue stream or specific assets are classified as |
| A. | general obligation bonds |
| B. | general obligation notes |
| C. | general obligation tax |
| D. | general obligation savings |
| Answer» B. general obligation notes | |
| 1368. |
Corporate bonds are also considered as |
| A. | trustee bonds |
| B. | registered bonds |
| C. | unregistered bonds |
| D. | indenture bonds |
| Answer» C. unregistered bonds | |
| 1369. |
Main trading markets of Eurobonds are |
| A. | London and Luxembourg |
| B. | Australian markets |
| C. | Swiss banks counters |
| D. | Asian banks counters |
| Answer» B. Australian markets | |
| 1370. |
Besides equity related bonds, type of Eurobonds that are convertible are classified as |
| A. | bonds with interbank rate |
| B. | bonds with intra market rate |
| C. | bonds with equity warrants |
| D. | bonds with common stock |
| Answer» D. bonds with common stock | |
| 1371. |
Eurobonds are denominated in only one currency which is |
| A. | Canadian dollars |
| B. | us dollars |
| C. | Euros |
| D. | Japanese yen |
| Answer» D. Japanese yen | |
| 1372. |
Intrinsic value of call option is considered as out of money if |
| A. | bond price > treasury price |
| B. | treasury price < bond price |
| C. | stock price > exercise price |
| D. | stock price < exercise price |
| Answer» E. | |
| 1373. |
Black Scholes model consider factors which affects an option price and factors are |
| A. | spot price of asset |
| B. | exercise price and exercise date of option |
| C. | price volatility |
| D. | all of above |
| Answer» E. | |
| 1374. |
When earnings are reinvested instead of payments of dividends then capital gains |
| A. | must increases |
| B. | must decreases |
| C. | must be zero |
| D. | must be one |
| Answer» C. must be zero | |
| 1375. |
Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to |
| A. | return to common stockholders |
| B. | return on premium bonds |
| C. | return to stock holder |
| D. | return to preferred stock |
| Answer» D. return to preferred stock | |
| 1376. |
Prospectus which describe new securities are distributed before their registration is classified as |
| A. | red herring prospectus |
| B. | white herring prospectus |
| C. | pre-emptive prospectus |
| D. | securitized prospectus |
| Answer» B. white herring prospectus | |
| 1377. |
Capital gains and dividends are considered as components of |
| A. | return |
| B. | equity |
| C. | spot rate contracts |
| D. | forward rate contracts |
| Answer» B. equity | |
| 1378. |
Intrinsic value of option is $280 and price of option is $350 then time value of option is |
| A. | $125 |
| B. | $135.00 |
| C. | $280 |
| D. | $70 |
| Answer» E. | |
| 1379. |
Markets in which new securities are issued by corporations to raise funds are called |
| A. | primary markets |
| B. | secondary markets |
| C. | Gross markets |
| D. | proceeds markets |
| Answer» B. secondary markets | |
| 1380. |
Berlin wall eliminate in |
| A. | 1980 |
| B. | 1983 |
| C. | 1988 |
| D. | 1989 |
| Answer» E. | |
| 1381. |
Selling of products outward home country referred to |
| A. | imports |
| B. | currency Devaluation |
| C. | exports |
| D. | loans |
| Answer» D. loans | |
| 1382. |
Uruguay Round that has started |
| A. | earlier 8 years |
| B. | earlier 5 years |
| C. | earlier 10 year |
| D. | earlier 7 years |
| Answer» E. | |
| 1383. |
Slightest hazardous method by which organizations carry out international trade is |
| A. | Licensing |
| B. | Franchising |
| C. | International Trade |
| D. | The establishment of new subsidiaries |
| Answer» D. The establishment of new subsidiaries | |
| 1384. |
Effective tool of excellent corporate governance corporation are |
| A. | Board of directors |
| B. | Common stock shareholders |
| C. | Top executive officers |
| D. | All of answers are correct |
| Answer» B. Common stock shareholders | |
| 1385. |
Snyder Golf Co desire to build a golf club in Brazil they will do |
| A. | Exporting |
| B. | Importing |
| C. | Direct Forging Investment |
| D. | Licensing |
| Answer» D. Licensing | |
| 1386. |
Single European Act created in |
| A. | 1970 |
| B. | 1988 |
| C. | 1977 |
| D. | 1978 |
| Answer» C. 1977 | |
| 1387. |
General Agreement on Tariffs and Trade (GATT) |
| A. | is an accord reached between 100 countries in 1980 |
| B. | reduced some tariffs by 80 percent on average |
| C. | removed some tariffs over a five- to ten-year period |
| D. | made more progress on reducing tariffs in service industries than in manufacturing industries |
| Answer» D. made more progress on reducing tariffs in service industries than in manufacturing industries | |
| 1388. |
The price at which a market maker is prepared to buy a currency or borrow money is termed as |
| A. | spot rate |
| B. | bid rate |
| C. | ask price |
| D. | forward rate |
| Answer» C. ask price | |
| 1389. |
The spot exchange rate __________ |
| A. | is the rate today for exchanging one currency for another for immediate delivery |
| B. | is the rate today for exchanging one currency for another at a specific future date |
| C. | is the rate today for exchanging one currency for another at a specific location on a specific future date |
| D. | is the rate today for exchanging one currency for another at a specific location for immediate delivery |
| Answer» B. is the rate today for exchanging one currency for another at a specific future date | |
| 1390. |
An operation in order to protect the domestic currency value of an asset or a liability that is denominated in foreign currency is called as |
| A. | Hedging |
| B. | Hermes |
| C. | Indexation |
| D. | Leading |
| Answer» B. Hermes | |
| 1391. |
A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as |
| A. | put option |
| B. | call option |
| C. | cross option |
| D. | currency swap |
| Answer» C. cross option | |
| 1392. |
The bank account of a non-resident of a country, where the amount of currency in the account cannot be transferred to another country is called as |
| A. | Nostro account |
| B. | Blocked Account |
| C. | Foreign account |
| D. | Capital account |
| Answer» C. Foreign account | |
| 1393. |
Ambiguity introduced by way by which organization finances its investments is |
| A. | country risk |
| B. | liquidity risk |
| C. | financial risk |
| D. | business risk |
| Answer» D. business risk | |
| 1394. |
A corporate bond is a corporation's write undertaking that it will refund a specific amount of money plus |
| A. | premium |
| B. | interest |
| C. | nothing |
| D. | security |
| Answer» C. nothing | |
| 1395. |
Which of following does not a type of direct foreign investment? |
| A. | Franchising |
| B. | International trade |
| C. | Joint ventures |
| D. | Acquisitions of existing operations |
| Answer» C. Joint ventures | |
| 1396. |
Mainly general type of Direct Foreign Investment (DFI) is |
| A. | Franchising |
| B. | The establishment of new subsidiaries |
| C. | International trade |
| D. | Patent |
| Answer» C. International trade | |
| 1397. |
Greater exposure bigger the |
| A. | Investment |
| B. | Spot rate |
| C. | Forward rate |
| D. | Risk |
| Answer» E. | |
| 1398. |
Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as |
| A. | index commitment underwriting |
| B. | insurance underwriting |
| C. | default risk underwriting |
| D. | firm commitment underwriting |
| Answer» E. | |
| 1399. |
Type of rating to which all credit rating agencies does not consider is classified as |
| A. | split rating |
| B. | sinking rating |
| C. | automated rating |
| D. | floating rating |
| Answer» B. sinking rating | |
| 1400. |
Names of foreign bonds are used to denote |
| A. | country of premium |
| B. | country of origin |
| C. | country of selling |
| D. | country of discount |
| Answer» C. country of selling | |