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.
| 351. |
Instrument used by Federal Reserve to smooth money supply and interest rates includes |
| A. | reasury notes |
| B. | epurchase agreements |
| C. | ommercial payable notes |
| D. | ommercial receivable notes |
| Answer» C. ommercial payable notes | |
| 352. |
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 | |
| 353. |
Interest rate equilibrium is decreased and supply curve of funds shifts to right is result of |
| A. | ncrease in total wealth |
| B. | ecrease in total wealth |
| C. | ncrease in future value |
| D. | ecrease in future value |
| Answer» B. ecrease in total wealth | |
| 354. |
Factors that can affect nominal interest rates in financial transactions includes |
| A. | pecial provisions |
| B. | iquidity and default risk |
| C. | nflation and real interest rate |
| D. | ll of above |
| Answer» E. | |
| 355. |
For other non-price conditions, decrease in equilibrium interest rate leads to |
| A. | ncrease restrictiveness |
| B. | ecrease restrictiveness |
| C. | ero restrictiveness |
| D. | egative restriction |
| Answer» B. ecrease restrictiveness | |
| 356. |
According to demand for funds curve, demand curve shifts to right if there is increase in |
| A. | quilibrium demand |
| B. | quilibrium interest rate |
| C. | quilibrium supply |
| D. | quilibrium savings |
| Answer» C. quilibrium supply | |
| 357. |
As compared to US certificate of deposit, interest rate paid on Eurodollar certificate of deposits is |
| A. | igher than other one |
| B. | ower than other one |
| C. | ontraction than other one |
| D. | xpansionary than other one |
| Answer» B. ower than other one | |
| 358. |
Most flexible and liquid source of funding for savings banks is |
| A. | nnual loan market |
| B. | ederal funds market |
| C. | unctional funding market |
| D. | ecured funding market |
| Answer» C. unctional funding market | |
| 359. |
Forgone amount for holding balances of cash at time they are received is classified as |
| A. | orgone cost |
| B. | ebt cost |
| C. | pportunity cost |
| D. | alances cost |
| Answer» D. alances cost | |
| 360. |
Overnight loans transaction are part of trading of |
| A. | xtensive funds |
| B. | ederal funds |
| C. | ntensive funds |
| D. | remium funds |
| Answer» C. ntensive funds | |
| 361. |
Loans for education and medical is classified as loans for |
| A. | quilibrium goods |
| B. | on-equilibrium goods |
| C. | urable goods |
| D. | on-durable goods |
| Answer» E. | |
| 362. |
Loan-able funds theory is used to determine |
| A. | avings |
| B. | nterest rate |
| C. | uture value |
| D. | resent value |
| Answer» C. uture value | |
| 363. |
Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include |
| A. | ax-ability |
| B. | overt ability |
| C. | all ability |
| D. | nflation premium |
| Answer» E. | |
| 364. |
Equilibrium interest rate decreases and economic conditions increases then supply curve must shift to |
| A. | p and to left |
| B. | p and to right |
| C. | own and to left |
| D. | own and to right |
| Answer» E. | |
| 365. |
Obligations that are issued by US governments and are obligated for short term are classified as |
| A. | ankers treasury |
| B. | reasury bills |
| C. | reasury funds |
| D. | ecured treasury |
| Answer» C. reasury funds | |
| 366. |
Negotiable certificate of deposit with one year maturity pays interest |
| A. | nnually |
| B. | emi-annually |
| C. | onthly |
| D. | very two weeks |
| Answer» C. onthly | |
| 367. |
Type of bidding in which bids are met before allocation of competitive bidders is considered as |
| A. | irstly basis |
| B. | referential basis |
| C. | ederal basis |
| D. | ast basis |
| Answer» C. ederal basis | |
| 368. |
Participants of financial system reduce demand for their funds if economic growth in |
| A. | omestic market is stagnant |
| B. | omestic market is not stagnant |
| C. | lobal market is stagnant |
| D. | lobal market is not stagnant |
| Answer» B. omestic market is not stagnant | |
| 369. |
If there is improve in economic condition in foreign countries, local community of investors start |
| A. | nvesting abroad |
| B. | nvesting in domestic markets |
| C. | ncrease in sovereign risk |
| D. | ncrease in country risk |
| Answer» B. nvesting in domestic markets | |
| 370. |
Funds provided by suppliers of funds in financial markets are classified as |
| A. | ompounded funds |
| B. | avings funds |
| C. | upply of loan-able funds |
| D. | emand of loan-able funds |
| Answer» D. emand of loan-able funds | |
| 371. |
According to loanable funding theory, net suppliers of funds are |
| A. | nsurance companies |
| B. | overnment |
| C. | orporations |
| D. | ouseholds |
| Answer» E. | |
| 372. |
Curve representing demand of funds shifts to left if economic growth in |
| A. | lobal market is stagnant |
| B. | lobal market is not stagnant |
| C. | omestic market is stagnant |
| D. | omestic market is not stagnant |
| Answer» D. omestic market is not stagnant | |
| 373. |
Value which converts series of equal payments in to value received at beginning of investment is classified as |
| A. | ecreased value of annuity |
| B. | ncreased value of annuity |
| C. | resent value of annuity |
| D. | uture value of annuity |
| Answer» D. uture value of annuity | |
| 374. |
In financial markets, decrease in investment results in |
| A. | ncrease in interest rate |
| B. | ecrease in interest rate |
| C. | ncrease in availability |
| D. | ecrease in availability |
| Answer» B. ecrease in interest rate | |
| 375. |
If demand of loanable demands increases then borrowing cost of funds is |
| A. | igher |
| B. | ero |
| C. | pside |
| D. | ower |
| Answer» B. ero | |
| 376. |
If 180 days T-bill have maturity of one year with value of $9250 and face value is $10000 then reported discount yield is |
| A. | 0.00% |
| B. | 3.00% |
| C. | 4.00% |
| D. | 5.00% |
| Answer» E. | |
| 377. |
Type of bids which states complete description about quantity of bids and prices of bids is classified as |
| A. | arkets bid |
| B. | ankers bid |
| C. | ompetitive bids |
| D. | on-competitive bids |
| Answer» D. on-competitive bids | |
| 378. |
In Eurodollar market, increase in demand of Euro dollars results in |
| A. | ncrease in LIBOR |
| B. | ecrease in LIBOR |
| C. | ncrease in KIBOR |
| D. | ecrease in KIBOR |
| Answer» B. ecrease in LIBOR | |
| 379. |
Repurchase agreements usually called repos can be traded |
| A. | irectly |
| B. | ith brokers or dealers |
| C. | unctional buyers |
| D. | oth a and b |
| Answer» E. | |
| 380. |
Bankers acceptance which is usually time draft is fully backed by |
| A. | ommercial banks |
| B. | wiss banks |
| C. | griculture banks |
| D. | unctional banks |
| Answer» B. wiss banks | |
| 381. |
Financial instrument which is used to raise funds for working capital is considered as |
| A. | ommercial paper |
| B. | ommercial notes |
| C. | otes payable |
| D. | otes receivable |
| Answer» B. ommercial notes | |
| 382. |
Federal Reserve increases money supply by |
| A. | elling Swiss bills |
| B. | uying Swiss bills |
| C. | elling treasury bills |
| D. | uying treasury bills |
| Answer» D. uying treasury bills | |
| 383. |
Principal investors of US treasury bills which are issued by US treasury does not includes |
| A. | utual funds |
| B. | xtensive funds |
| C. | orporations |
| D. | rokers and dealers |
| Answer» B. xtensive funds | |
| 384. |
Group of dealers and brokers in financial institutions also includes |
| A. | oney and security brokers |
| B. | apital brokers |
| C. | ortgage brokers |
| D. | xpansionary brokers |
| Answer» B. apital brokers | |
| 385. |
Limit of getting treasury bills auctioned in a treasury auction is that no bidder can get more than |
| A. | 5.00% |
| B. | 0.00% |
| C. | 5.00% |
| D. | 0.00% |
| Answer» B. 0.00% | |
| 386. |
Type of negotiable certificate of deposits is usually classified as |
| A. | rimary instrument |
| B. | earer instrument |
| C. | erm instrument |
| D. | nterim instrument |
| Answer» C. erm instrument | |
| 387. |
Promissory notes issued by company for short term fund raising and are unsecured are classified as |
| A. | nsecured notes |
| B. | ebt paper |
| C. | erm paper |
| D. | ommercial paper |
| Answer» E. | |
| 388. |
Drafts which are backed up by banks and are payable to seller of products or services are classified as |
| A. | anker acceptance |
| B. | ecured acceptance |
| C. | nsecured acceptance |
| D. | conomic acceptance |
| Answer» B. ecured acceptance | |
| 389. |
Repurchase price is $250, selling price is $150 and number of days till maturity are 5 then yield of repurchase agreement is 2500 |
| A. | .00% |
| B. | 8.80% |
| C. | 8.80% |
| D. | 8.80% |
| Answer» D. 8.80% | |
| 390. |
Type of Eurodollars deposits denominated in banks outside United States is classified as |
| A. | utual certificate of deposit |
| B. | uro dollar certificate of deposit |
| C. | xpansionary certificate of deposit |
| D. | uro dollar contraction deposit |
| Answer» C. xpansionary certificate of deposit | |
| 391. |
Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as |
| A. | elling window |
| B. | uying window |
| C. | remium window |
| D. | iscount window |
| Answer» E. | |
| 392. |
Non-competitive bidding of treasury bills also allows participation of |
| A. | ecured investors |
| B. | ederal investors |
| C. | mall investors |
| D. | arge investors |
| Answer» D. arge investors | |
| 393. |
In treasury bills auction, treasury bills are sold at |
| A. | remium basis |
| B. | iscount basis |
| C. | ompetitive basis |
| D. | ederal basis |
| Answer» C. ompetitive basis | |
| 394. |
Type of market in which short term instruments are traded and purchased by economic units is classified as |
| A. | oney markets |
| B. | apital markets |
| C. | ebt markets |
| D. | conomic markets |
| Answer» B. apital markets | |
| 395. |
Repurchase agreements having maturity of longer term have denominations of |
| A. | 40 million |
| B. | 10 million |
| C. | 20 million |
| D. | 30 million |
| Answer» C. 20 million | |
| 396. |
Transaction of federal funds usually take place in form of |
| A. | unctional loans |
| B. | nnual loans |
| C. | nsecured loans |
| D. | ecured loans |
| Answer» D. ecured loans | |
| 397. |
Difference between purchase price of treasury bills and face value of treasury bills is considered as |
| A. | remium |
| B. | iscount |
| C. | eturn |
| D. | ean value |
| Answer» D. ean value | |
| 398. |
Accounting entry of institutions who borrows federal funds is as |
| A. | ncome in income statement |
| B. | xpense on income statement |
| C. | iability on balance sheet |
| D. | ssets on balance sheet |
| Answer» D. ssets on balance sheet | |
| 399. |
Bidder who can receive allocation of treasury bills before all other bidders is result of |
| A. | ighest bidder |
| B. | ower bidder |
| C. | ero bidder |
| D. | on-competitive bidder |
| Answer» B. ower bidder | |
| 400. |
Type of funds that have transfer transactions between financial institutions are classified as |
| A. | ederal funds |
| B. | remium funds |
| C. | iscount funds |
| D. | ean funds |
| Answer» B. remium funds | |