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.
| 201. |
Saving banks, insurance companies, mutual funds and commercial banks are all examples of |
| A. | on-financial institutions |
| B. | erivative institutions |
| C. | inancial institutions |
| D. | ayable institutions |
| Answer» D. ayable institutions | |
| 202. |
Institutions deals in financial functions and protects corporations and individuals against accidents, theft and death are considered as |
| A. | enalty companies |
| B. | nsurance companies |
| C. | vents dealers |
| D. | rotecting companies |
| Answer» C. vents dealers | |
| 203. |
Markets in which transactions are done through computers and telephone without any specific location are classified as |
| A. | ast counter market |
| B. | uture counter market |
| C. | ver counter markets |
| D. | apital counter market |
| Answer» D. apital counter market | |
| 204. |
Type of institutions that write securities, engage in brokerage and security trading are considered as |
| A. | rading institutions |
| B. | ctivity institutions |
| C. | nvestment banks |
| D. | ortgage banks |
| Answer» D. ortgage banks | |
| 205. |
Risk arises from trading of assets because of change in asset prices and exchange rates is classified as |
| A. | sset risk |
| B. | rade risk |
| C. | arket risk |
| D. | xchange risk |
| Answer» D. xchange risk | |
| 206. |
Centralized market place where agents can have efficiently and quickly transactions is classified as |
| A. | econdary markets |
| B. | entral market |
| C. | raded market |
| D. | gents market |
| Answer» B. entral market | |
| 207. |
Financial instruments of public markets includes |
| A. | ransfer funds |
| B. | earer bonds |
| C. | hares |
| D. | onds |
| Answer» D. onds | |
| 208. |
Type of financial markets in which corporations issues new funds to raise funds is classified as |
| A. | low market |
| B. | rimary markets |
| C. | econdary markets |
| D. | unding markets |
| Answer» C. econdary markets | |
| 209. |
Transfer of financial instruments from suppliers of funds to users of funds without any intermediary in between is classified as |
| A. | lobal transfer |
| B. | ension transfer |
| C. | irect transfer |
| D. | ndirect transfer |
| Answer» D. ndirect transfer | |
| 210. |
In capital markets, major suppliers of trading instruments are |
| A. | overnment and corporations |
| B. | iquid corporations |
| C. | nstrumental corporations |
| D. | anufacturing corporations |
| Answer» B. iquid corporations | |
| 211. |
Risk stating assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as |
| A. | ayment risk |
| B. | iquidity risk |
| C. | ncome risk |
| D. | alance risk |
| Answer» C. ncome risk | |
| 212. |
Financial intermediaries offering savings plans to individuals and funds are exempted from taxation are considered as |
| A. | rading funds |
| B. | enalty funds |
| C. | ension funds |
| D. | lobal funds |
| Answer» D. lobal funds | |
| 213. |
Bonds which are denominated in dollars and are issued in canters of London and Luxemburg are classified as |
| A. | ondon bonds |
| B. | urodollar bonds |
| C. | entral bonds |
| D. | ecentralize bonds |
| Answer» C. entral bonds | |
| 214. |
Reduction of risk by holding large number of securities in portfolio of assets is classified as |
| A. | iversification |
| B. | elling ability |
| C. | eduction ability |
| D. | irector ability |
| Answer» B. elling ability | |
| 215. |
Situation in which claims by financial institutions than claims issued by corporations is more considerable for investors is classified as |
| A. | sset transformers |
| B. | iability transformers |
| C. | ssuing transformers |
| D. | laiming transformers |
| Answer» B. iability transformers | |
| 216. |
Treasury notes that provide returns tied to inflation rate are classified as |
| A. | lean price bonds |
| B. | iscount index bonds |
| C. | remium index bonds |
| D. | nflation index bonds |
| Answer» E. | |
| 217. |
Bonds that are backed by cash flow from project and are sold to finance particular project are classified as |
| A. | inance bonds |
| B. | evenue bonds |
| C. | inancing bonds |
| D. | roject bonds |
| Answer» C. inancing bonds | |
| 218. |
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 | |
| 219. |
Exchange markets and over counter markets are considered as two types of |
| A. | loating market |
| B. | isky market |
| C. | econdary market |
| D. | rimary market |
| Answer» D. rimary market | |
| 220. |
Marginal income tax rate is 35% and before tax rate of return is 12.5% then after tax rate of return is |
| A. | .13% |
| B. | .13% |
| C. | .13% |
| D. | .13% |
| Answer» D. .13% | |
| 221. |
As compared to general obligation bonds, revenue bonds are considered as |
| A. | ore inflated |
| B. | ess inflated |
| C. | ess risky |
| D. | ore risky |
| Answer» E. | |
| 222. |
Financial securities which are issued to finance government expenditures and national debt are classified as |
| A. | reasury notes and bonds |
| B. | ontraction bonds |
| C. | xpansion bonds |
| D. | ollar bonds |
| Answer» B. ontraction bonds | |
| 223. |
Type of Eurobonds which are convertible are considered as |
| A. | elated to international market |
| B. | elated to equity |
| C. | elated to common stock |
| D. | elated to national market |
| Answer» C. elated to common stock | |
| 224. |
Minimum denominations of municipal bonds are |
| A. | 5,000 |
| B. | 10,000 |
| C. | 12,000 |
| D. | 22,000 |
| Answer» B. 10,000 | |
| 225. |
As compared to publicly placed issues, privately placed bonds are issued for |
| A. | ower paid interest rates |
| B. | igher paid interest rates |
| C. | egistered interest rates |
| D. | nregistered interest rates |
| Answer» C. egistered interest rates | |
| 226. |
Conversion values is $8500 and conversion rate received on stock conversion is 430 then current market price of stock is |
| A. | 15.24 |
| B. | 13.24 |
| C. | 20.24 |
| D. | 19.24 |
| Answer» D. 19.24 | |
| 227. |
Default risk is measured by large traders, managers and investors with help of |
| A. | inking analysis |
| B. | nalyzing financial ratios |
| C. | ortfolio scenario value |
| D. | utomated machine analysis |
| Answer» C. ortfolio scenario value | |
| 228. |
Mortgage bonds issued by corporations are considered as |
| A. | ecured debt issues |
| B. | nsecured debt issues |
| C. | olatile debt issues |
| D. | ollateral debt issues |
| Answer» B. nsecured debt issues | |
| 229. |
Bonds that are considered as junk bonds and termed as higher yield are classified as |
| A. | xpansion debentures |
| B. | remium debentures |
| C. | ubordinated debentures |
| D. | rdinate debentures |
| Answer» D. rdinate debentures | |
| 230. |
In financial markets, bond indenture results in |
| A. | ower federal rate |
| B. | igher federal rate |
| C. | igher risk |
| D. | ower risk |
| Answer» E. | |
| 231. |
Foreign bonds issued in Japan financial institutions are classified as |
| A. | ull dog bonds |
| B. | ull cat bonds |
| C. | ankee bonds |
| D. | amurai bonds |
| Answer» E. | |
| 232. |
If maturity date of bond is closer than premium of bond will be |
| A. | elatively lower |
| B. | elatively higher |
| C. | uantifiable |
| D. | ot be quantifiable |
| Answer» B. elatively higher | |
| 233. |
Price accepted in single bid auction system is one which is |
| A. | ost lowest |
| B. | ost highest |
| C. | east lowest |
| D. | east highest |
| Answer» B. ost highest | |
| 234. |
Eurobonds are issued by financial firms to |
| A. | void taxes |
| B. | void interest hike |
| C. | void high floating rate |
| D. | void portfolio issues |
| Answer» B. void interest hike | |
| 235. |
Value of conversion option to bond holder is $550 and rate of return on non-convertible bond is $270 then rate of return on convertible bond is |
| A. | .04% |
| B. | 2.04 |
| C. | 280 |
| D. | 820 |
| Answer» D. 820 | |
| 236. |
Difference between face value of bond and call price of bond is considered as |
| A. | all premium |
| B. | all provision |
| C. | iscount premium |
| D. | iscount provision |
| Answer» B. all provision | |
| 237. |
If trading of municipal bonds is infrequent, then secondary market is considered as |
| A. | hin markets |
| B. | hick markets |
| C. | igher underwriting |
| D. | ower underwriting |
| Answer» B. hick markets | |
| 238. |
Bonds having longer maturity on original loans than promised payments are classified as |
| A. | eveloped bonds |
| B. | eveloping bonds |
| C. | rady bonds |
| D. | wapped bonds |
| Answer» D. wapped bonds | |
| 239. |
Source of funds for repayment of municipal bonds is considered as |
| A. | ocal tax and revenue |
| B. | lobal tax and revenue |
| C. | rint notes |
| D. | ommercial notes |
| Answer» B. lobal tax and revenue | |
| 240. |
Auction of TIPS security is classified as |
| A. | remium bid auction |
| B. | iscount bid auction |
| C. | ultiple bid auction |
| D. | ne bid auction |
| Answer» E. | |
| 241. |
IN negotiated sale, services provided by investment banks are |
| A. | rigination services |
| B. | ocument collection services |
| C. | dvising services |
| D. | oth a and c |
| Answer» E. | |
| 242. |
Financial securities issued by local and state governments are classified as |
| A. | unicipal bonds |
| B. | eserve bonds |
| C. | tate bonds |
| D. | ederal bonds |
| Answer» B. eserve bonds | |
| 243. |
Securities with lower default risk and having highest credit quality are assigned rating of |
| A. | ouble B |
| B. | riple B |
| C. | riple A |
| D. | ouble A |
| Answer» D. ouble A | |
| 244. |
Treasury bonds and notes pays interest rate is classified as |
| A. | IBOR rate monthly |
| B. | oupon interest monthly |
| C. | oupon interest semi-annually |
| D. | oupon interest annually |
| Answer» D. oupon interest annually | |
| 245. |
According to marketability feature, bonds which are attached to stock warrants have |
| A. | ecreased floatation |
| B. | ncreased floatation |
| C. | ncreased marketability |
| D. | ecreased marketability |
| Answer» D. ecreased marketability | |
| 246. |
Call premium is $456 and face value of bond is $234 then call price of bonds is |
| A. | 1.95 |
| B. | .95% |
| C. | 222 |
| D. | 690 |
| Answer» E. | |
| 247. |
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. | .25% |
| Answer» D. .25% | |
| 248. |
Face value of bond is $450 and call price of bond is $250 then value of call premium is |
| A. | .80% |
| B. | 200 |
| C. | 700 |
| D. | 1.8 |
| Answer» C. 700 | |
| 249. |
As compared to non-convertible bonds, yield on convertible bond is |
| A. | elatively lower |
| B. | elatively higher |
| C. | elatively zero |
| D. | elatively discounted |
| Answer» B. elatively higher | |
| 250. |
Principal value of TIPS is increased or decreased and is based on measure of |
| A. | onsumer price index |
| B. | anufacturing price index |
| C. | uction selling index |
| D. | nflation payment index |
| Answer» B. anufacturing price index | |