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.
| 251. |
Coupon payment accrued between last payment and settlement date is classified as |
| A. | aid interest |
| B. | npaid interest |
| C. | ero interest |
| D. | ccrued interest |
| Answer» E. | |
| 252. |
Rules and regulations placed on bond holders and bond issuers are classified in |
| A. | ond covenants |
| B. | rivate covenants |
| C. | ederal covenants |
| D. | xpansion covenants |
| Answer» B. rivate covenants | |
| 253. |
If revenue bonds becomes default, bondholders must |
| A. | ot be paid |
| B. | e paid |
| C. | e sold |
| D. | ot be sold |
| Answer» C. e sold | |
| 254. |
Call premium of bond is subtracted from call price of bond to calculate |
| A. | ace value of bond |
| B. | ace value of stock |
| C. | ook value of stock |
| D. | ook value of bond |
| Answer» B. ace value of stock | |
| 255. |
Junk bonds which are rated lower than triple B are also classified as |
| A. | igh yield bonds |
| B. | ow yield bonds |
| C. | ero floating bonds |
| D. | igh floating rate bonds |
| Answer» B. ow yield bonds | |
| 256. |
Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as |
| A. | ubordinated debentures |
| B. | rdinate debentures |
| C. | xpansion debentures |
| D. | remium debentures |
| Answer» B. rdinate debentures | |
| 257. |
Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on |
| A. | ontributed bonds |
| B. | on-callable bonds |
| C. | allable bonds |
| D. | iscounted bonds |
| Answer» C. allable bonds | |
| 258. |
Treasury bills are issued on |
| A. | reasury basis |
| B. | orporate basis |
| C. | remium basis |
| D. | iscount basis |
| Answer» E. | |
| 259. |
Yield on subordinated bonds as compared to non-subordinated bonds is considered as |
| A. | ighly risky and higher yields |
| B. | ighly risky and lower yields |
| C. | ess risky and higher yields |
| D. | ess risky and lower yields |
| Answer» B. ighly risky and lower yields | |
| 260. |
Bonds issued for longer term and must be sold in country whom currency is not used in denomination of bonds are classified as |
| A. | nterbank bonds |
| B. | ntrabank bonds |
| C. | ustralian bonds |
| D. | urobonds |
| Answer» E. | |
| 261. |
Considering coupon rate, Brady bonds pays |
| A. | igher than traditional |
| B. | ower than promised |
| C. | igher than promise |
| D. | one of above |
| Answer» C. igher than promise | |
| 262. |
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. | |
| 263. |
Banks, mutual funds and insurance companies are considered as |
| A. | ajor suppliers |
| B. | ajor investors |
| C. | ajor portfolio holders |
| D. | ajor rates decider |
| Answer» B. ajor investors | |
| 264. |
Firms that attach bonds to stock warrants are usually |
| A. | ess discounted |
| B. | ore risky |
| C. | ess risky |
| D. | ore discounted |
| Answer» C. ess risky | |
| 265. |
Conversion values is divided by conversion rate received on conversion on stock to calculate |
| A. | urrent market price |
| B. | ast market price |
| C. | uture market value |
| D. | urrent stock value |
| Answer» B. ast market price | |
| 266. |
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. | est efforts offering |
| B. | east good index |
| C. | east good premium |
| D. | east good discount price |
| Answer» B. east good index | |
| 267. |
Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as |
| A. | ntimed indentures |
| B. | ntimed debentures |
| C. | ndentures |
| D. | ebentures |
| Answer» E. | |
| 268. |
Treasury securities are considered as exempted from |
| A. | ederal taxes |
| B. | ocal and state taxes |
| C. | ederal discounts |
| D. | eferral premium |
| Answer» B. ocal and state taxes | |
| 269. |
When characteristics of bonds are perceived as unfavourable or favourable to holders of bond then differences of yield spread |
| A. | ust not changes |
| B. | ust changes |
| C. | ust be debited |
| D. | ust be credited |
| Answer» C. ust be debited | |
| 270. |
Rate of return on non-callable bonds is $370 and value of issuer option is $250 then return on callable bond is |
| A. | 120 |
| B. | .48% |
| C. | 620 |
| D. | 1.48 |
| Answer» D. 1.48 | |
| 271. |
In firm commitment underwriting, securities issued are then sold to investors at relatively |
| A. | igher price |
| B. | ower price |
| C. | ndexed price |
| D. | ommercial price |
| Answer» B. ower price | |
| 272. |
Thin trading of municipal bonds in secondary markets is because of |
| A. | xcess of information |
| B. | ack of information |
| C. | requent information |
| D. | nfrequent information |
| Answer» C. requent information | |
| 273. |
Rate of return on non-callable bonds is $680 and value of issuer option is $450 then return on callable bond is |
| A. | 230 |
| B. | .52% |
| C. | 1.52 |
| D. | 1,130 |
| Answer» E. | |
| 274. |
Yields of municipal bonds is |
| A. | fter tax rate of return |
| B. | efore tax rate of return |
| C. | orporative rate of return |
| D. | ederal rate of return |
| Answer» B. efore tax rate of return | |
| 275. |
Bond which is denominated in dollars and is issued in European financial markets is considered as |
| A. | ustralian bonds |
| B. | urobonds |
| C. | nterbank bonds |
| D. | nterbank bonds |
| Answer» C. nterbank bonds | |
| 276. |
Denominations in which Eurobonds are issued are |
| A. | 10000 and $20000 |
| B. | 5000 and $10000 |
| C. | 6000 and $11000 |
| D. | 8000 and $15000 |
| Answer» C. 6000 and $11000 | |
| 277. |
Value of option issued to call debt is $670 and return rate on callable bond is $540 then return rate on non-callable bond is |
| A. | 1,210 |
| B. | 1,010 |
| C. | 130 |
| D. | 1,020 |
| Answer» D. 1,020 | |
| 278. |
STRIPS are used effectively to receive |
| A. | ne set of payment |
| B. | wo sets of payments |
| C. | hree sets of payments |
| D. | our sets of payments |
| Answer» B. wo sets of payments | |
| 279. |
Type of bonds that are swapped to less developed country against an outstanding loan are classified as |
| A. | rady bonds |
| B. | wapped bonds |
| C. | eveloped bonds |
| D. | eveloping bonds |
| Answer» B. wapped bonds | |
| 280. |
Sum of purchase price and accrued interest on treasury bonds and notes is considered as |
| A. | irty price |
| B. | lean price |
| C. | aid price |
| D. | npaid price |
| Answer» B. lean price | |
| 281. |
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. | |
| 282. |
Financial institutions having loans swapped for bonds can sell all bonds in |
| A. | nder-developed markets |
| B. | eveloped markets |
| C. | rimary markets |
| D. | econdary markets |
| Answer» E. | |
| 283. |
For a taxable security, tax exempted interest rate on municipal bonds us used to determine |
| A. | ax equivalent rate of return |
| B. | ocal rate of return |
| C. | ithholding tax rate |
| D. | eneral sales tax rate |
| Answer» B. ocal rate of return | |
| 284. |
Treasury security in which final principal payment is separated from periodic interest payment is classified as |
| A. | TRIP |
| B. | eparated security |
| C. | nflated security |
| D. | oupon paid security |
| Answer» B. eparated security | |
| 285. |
In financial markets, STRIPS are also classified as |
| A. | reasury KIBOR notes |
| B. | reasury KIBOR bonds |
| C. | reasury zero coupon bonds |
| D. | reasury LIBOR bonds |
| Answer» D. reasury LIBOR bonds | |
| 286. |
Debt which depict historical accumulated record of federal government expenditures is classified as |
| A. | ational debt |
| B. | nternational debt |
| C. | lobal debt |
| D. | ontraction debt |
| Answer» B. nternational debt | |
| 287. |
In capital markets, instruments which are traded having maturity of more than one year is classified as |
| A. | ontraction mortgages |
| B. | onds and mortgages |
| C. | xpansion bonds |
| D. | xpansion mortgages |
| Answer» C. xpansion bonds | |
| 288. |
Value of option issued to call debt is $780 and return rate on callable bond is $370 then return rate on non-callable bond is |
| A. | 1,250 |
| B. | 1,150 |
| C. | 1,350 |
| D. | 410 |
| Answer» E. | |
| 289. |
Municipal bonds public offering is often made through |
| A. | nsurance companies |
| B. | ndex banking firm |
| C. | ommercial banking firm |
| Answer» D. | |
| 290. |
Several maturities dates are involved in issued bonds if company earnings are classified as |
| A. | arallel term income |
| B. | ledged |
| C. | olatile |
| D. | on-volatile |
| Answer» D. on-volatile | |
| 291. |
Value of conversion option to bond holder is $220 and rate of return on non-convertible bond is $350 then rate of return on convertible bond is |
| A. | 570 |
| B. | 130 |
| C. | 670 |
| D. | 1.59 |
| Answer» C. 670 | |
| 292. |
Considering bonds characteristics, corporate and treasury bonds have many |
| A. | ifferent characteristics |
| B. | imilar characteristics |
| C. | earer characteristics |
| D. | earer characteristics |
| Answer» B. imilar characteristics | |
| 293. |
Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as |
| A. | ndenture bonds |
| B. | rustee bonds |
| C. | ollateral bonds |
| D. | ortgage bonds |
| Answer» E. | |
| 294. |
Municipal bonds are more considerable to |
| A. | ull price investors |
| B. | ousehold investors |
| C. | orporation investors |
| D. | lean price investors |
| Answer» C. orporation investors | |
| 295. |
Financial firms such as mutual fund and insurance companies are also called |
| A. | nsured financials |
| B. | uaranteed business |
| C. | redit business |
| D. | usiness financial |
| Answer» E. | |
| 296. |
Type of bonds issued by governments outside home country of issuer of bond are classified as |
| A. | utside bonds |
| B. | oreign bonds |
| C. | ssuing country bonds |
| D. | enominated bonds |
| Answer» C. ssuing country bonds | |
| 297. |
With consolidation of currencies, created liquidity allows Eurobond |
| A. | rice and supply to decrease |
| B. | rice and supply to increase |
| C. | emand and size to decrease |
| D. | emand and size to increase |
| Answer» E. | |
| 298. |
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 | |
| 299. |
In firm commitment underwriting procedure, more risk is at side of |
| A. | nvestment bank |
| B. | nsurance firm |
| C. | eissuing firm |
| D. | eselling firm |
| Answer» B. nsurance firm | |
| 300. |
Call premium of bond is $560 and call price of bond is $340 then face value of bond is |
| A. | 1.65 |
| B. | 220 |
| C. | 900 |
| D. | .65% |
| Answer» C. 900 | |