MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 253 Mcqs, each offering curated multiple-choice questions to sharpen your Avionics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
According to the Black Scholes model, the selling and buying of the stock have |
| A. | discount rate |
| B. | transaction costs |
| C. | no transaction costs |
| D. | no discounts |
| Answer» C. no transaction costs | |
| 2. |
The situation in financial options in which the strike price is less than current price of stock is classified as |
| A. | in-the-money |
| B. | out-of-the-money |
| C. | out-of-the-portfolio |
| D. | in-the-portfolio |
| Answer» B. out-of-the-money | |
| 3. |
The present value of portfolio is $900 and the current value of stock in portfolio is $1500 then the current option price is |
| A. | $2,400 |
| B. | −$600 |
| C. | −$2400 |
| D. | $600 |
| Answer» E. | |
| 4. |
If there is improve in economic condition in foreign countries, the local community of investors start |
| A. | investing abroad |
| B. | investing in domestic markets |
| C. | increase in sovereign risk |
| D. | increase in country risk |
| Answer» B. investing in domestic markets | |
| 5. |
The salaries of engineers are $3000, the salaries of supervisors are $4000 and the equipment leasing cost is $3000 then fixed setup costs are |
| A. | $10,000 |
| B. | $1,000 |
| C. | $7,000 |
| D. | $4,000 |
| Answer» B. $1,000 | |
| 6. |
The sales budget variance is $47000 and the flexible budget amount is $77000 then the static budget amount is |
| A. | $144,000 |
| B. | $134,000 |
| C. | $124,000 |
| D. | $30,000 |
| Answer» E. | |
| 7. |
The measure which provides the feedback on manager performance considering individual aspects only is classified as |
| A. | effectively measure |
| B. | lump sum measure |
| C. | non financial measures |
| D. | financial measures |
| Answer» D. financial measures | |
| 8. |
The costing technique which classify all the activities in costing hierarchy is classified as |
| A. | activity based costing |
| B. | non financial costing |
| C. | profit costing |
| D. | lump sum costing |
| Answer» B. non financial costing | |
| 9. |
According to loanable funds theory, the fall in interest rates results in to |
| A. | zero demand of funds |
| B. | equilibrium demands of funds |
| C. | higher demand of funds |
| D. | lower demand of funds |
| Answer» D. lower demand of funds | |
| 10. |
The flexible budget amount is $57000 and flexible budget variance is $14000 then actual result amount is |
| A. | $61,000 |
| B. | $71,000 |
| C. | $43,000 |
| D. | $24,000 |
| Answer» C. $43,000 | |
| 11. |
The exercise of option in future and part of option call value depends specifically on |
| A. | PV of exercising cost |
| B. | FV of exercising cost |
| C. | PV of cost volatility |
| D. | FV of cost volatility |
| Answer» B. FV of exercising cost | |
| 12. |
The actual selling price is subtracted from budgeted selling price and then multiplied to actual units sold to calculate |
| A. | profit variance |
| B. | investment variance |
| C. | cost variance |
| D. | selling price variance |
| Answer» E. | |
| 13. |
the difference between the flexible budget amount and the corresponding static budget amount is classified as |
| A. | sales revenue variance |
| B. | cost profit variance |
| C. | profit volume variance |
| D. | sales volume variance |
| Answer» E. | |
| 14. |
When interest rate is lower than equilibrium rate of borrowing loanable funds then the financial system has |
| A. | surplus of funds |
| B. | deficit of funds |
| C. | short-term funds |
| D. | long-term funds |
| Answer» C. short-term funds | |
| 15. |
The greater value of the option the larger span of time value is usually results in |
| A. | shorter call option |
| B. | longer call option |
| C. | longer put option |
| D. | shorter put option |
| Answer» C. longer put option | |
| 16. |
The fixed cost is $20000, the target operating income is $10000 and the contribution margin per unit is $1200 then required units to be sold are |
| A. | 55 units |
| B. | 45 units |
| C. | 35 units |
| D. | 25 units |
| Answer» E. | |
| 17. |
The fixed cost is added to target operating income and then divided to contribution margin per unit to calculate |
| A. | quantity of units required to sold |
| B. | selling of units |
| C. | sold units |
| D. | contributed units |
| Answer» B. selling of units | |
| 18. |
The current value of stock included in portfolio is subtracted from present value of portfolio to calculate |
| A. | last month option price |
| B. | last year option price |
| C. | current option price |
| D. | future option price |
| Answer» D. future option price | |
| 19. |
The difference between actual quantity and budgeted quantity of cost allocation base is classified as |
| A. | fixed overhead efficiency variance |
| B. | variable overhead efficiency variance |
| C. | variable overhead manufacturing variance |
| D. | fixed overhead manufacturing variance |
| Answer» C. variable overhead manufacturing variance | |
| 20. |
In binomial approach of option pricing model, the fourth step is to create |
| A. | equalize the domain of payoff |
| B. | equalize the ending price |
| C. | riskless investment |
| D. | high risky investment |
| Answer» D. high risky investment | |
| 21. |
The funds demand which is pushed by users of funds in the financial markets are classified as |
| A. | supply of loan-able funds |
| B. | demand of loan-able funds |
| C. | compounded funds |
| D. | savings funds |
| Answer» C. compounded funds | |
| 22. |
The actual variable quantity is 50,the actual and budgeted overhead cost of allocation is $7550 and $4500 respectively then the variable overhead spending variance is |
| A. | $182,500 |
| B. | $152,500 |
| C. | $162,500 |
| D. | $172,500 |
| Answer» C. $162,500 | |
| 23. |
All the salaries paid to supervisors and engineers and cost of leasing equipment are classified as |
| A. | variable setup costs |
| B. | fixed setup costs |
| C. | variable batch costs |
| D. | fixed batch costs |
| Answer» C. variable batch costs | |
| 24. |
In put call parity relationship, the present value of exercise price is added to call option which is equal to |
| A. | put option stock |
| B. | call option + stock |
| C. | call option + market price |
| D. | put option + market price |
| Answer» B. call option + stock | |
| 25. |
The formula of effective annual return is written as |
| A. | (1+r)&supc; - 1 |
| B. | (2+r)&supc; - 2 |
| C. | (3+r)&supc; - 3 |
| D. | (1+r)&supc; - 5 |
| Answer» B. (2+r)&supc; - 2 | |
| 26. |
According to the Black Scholes model, the short term seller receive today price |
| A. | short term cash proceeds |
| B. | proceeds in cheques |
| C. | full cash proceeds |
| D. | zero proceeds |
| Answer» D. zero proceeds | |
| 27. |
The lower plant leasing, lower administrative costs and lower depreciation on equipment and plant are all the factors for |
| A. | favorable price variance |
| B. | unfavorable price variance |
| C. | favorable spending variance |
| D. | unfavorable spending variance |
| Answer» D. unfavorable spending variance | |
| 28. |
The indirect support labor costs and costs of indirect energy are considered as |
| A. | variable batch costs |
| B. | fixed batch costs |
| C. | variable setup costs |
| D. | fixed setup costs |
| Answer» D. fixed setup costs | |
| 29. |
According to loanable funding theory, the net suppliers of funds are |
| A. | insurance companies |
| B. | government |
| C. | corporations |
| D. | households |
| Answer» E. | |
| 30. |
The type of contract in which the contract holder has the right to sell an asset at specific period for predetermine price is classified as |
| A. | option |
| B. | written contract |
| C. | determined contract |
| D. | featured contracts |
| Answer» B. written contract | |
| 31. |
The last day at which the European and American option can be exercised is classified as |
| A. | European date |
| B. | American date |
| C. | expiration date |
| D. | money date |
| Answer» D. money date | |
| 32. |
According to demand for funds curve, the demand curve shifts down and to the left if there is decrease in |
| A. | equilibrium supply |
| B. | equilibrium savings |
| C. | equilibrium demand |
| D. | equilibrium interest rate |
| Answer» E. | |
| 33. |
The special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include |
| A. | tax-ability |
| B. | covert ability |
| C. | call ability |
| D. | inflation premium |
| Answer» E. | |
| 34. |
The actual selling price is $400, the actual result is $250 and the actual units sold are 500 then the selling price variance is |
| A. | $45,000 |
| B. | $55,000 |
| C. | $75,000 |
| D. | $65,000 |
| Answer» D. $65,000 | |
| 35. |
In flexible budget analysis, the variable overhead flexible budget variance is equals to |
| A. | fixed cost-variable budget amount |
| B. | actual cost-flexible budget amount |
| C. | variable cost-allocated amount |
| D. | actual cost-variable amount |
| Answer» C. variable cost-allocated amount | |
| 36. |
The unfavorable volume-production variance is used to measure the amount of |
| A. | fixed setup cost |
| B. | total setup cost |
| C. | variable setup cost |
| D. | total overhead cost |
| Answer» B. total setup cost | |
| 37. |
The stock option is more worthwhile if it is |
| A. | extremely volatile |
| B. | less volatile |
| C. | stable stock |
| D. | unstable price stock |
| Answer» B. less volatile | |
| 38. |
If the demand of loanable demands decrease then the borrowing cost of funds is |
| A. | upside |
| B. | lower |
| C. | higher |
| D. | zero |
| Answer» C. higher | |
| 39. |
The yield on Treasury bill with a maturity is classified as risk free rate and must be equal to |
| A. | option closing price |
| B. | option beginning price |
| C. | option expiration |
| D. | option model |
| Answer» D. option model | |
| 40. |
The static budget is $208000 and the flexible budget amount is $305000 then the sales budget variance is |
| A. | $67,000 |
| B. | $97,000 |
| C. | $57,000 |
| D. | $47,000 |
| Answer» C. $57,000 | |
| 41. |
In production volume variance, the acquiring fixed cost such as equipment lease and plant lease is classified as |
| A. | lumps sum price amount |
| B. | lump sum fixed cost |
| C. | lump sum variable cost |
| D. | lump sum manufacturing cost |
| Answer» C. lump sum variable cost | |
| 42. |
The interest rate which is not reinvested but is earned is classified as |
| A. | invested interest |
| B. | simple interest |
| C. | earned interest |
| D. | unstated interest |
| Answer» C. earned interest | |
| 43. |
The budgeted sales in unit is 50 and the breakeven sales in unit is 12 then the margin of safety in units is |
| A. | 62 |
| B. | 38 |
| C. | 48 |
| D. | 58 |
| Answer» C. 48 | |
| 44. |
The amount of money by which the total revenues exceeded the breakeven revenues is classified as |
| A. | margin of safety |
| B. | margin of profit |
| C. | margin of loss |
| D. | margin of income |
| Answer» B. margin of profit | |
| 45. |
The budgeted total cost in fixed overhead is $385000 and the budgeted total quantity is $6730 then budgeted fixed overhead cost per unit is |
| A. | $57.21 per unit |
| B. | $67.21 per unit |
| C. | $77.21 per unit |
| D. | $87.21 per unit |
| Answer» B. $67.21 per unit | |
| 46. |
The loans for cars and home appliances is classified as loans for |
| A. | durable goods |
| B. | non-durable goods |
| C. | equilibrium goods |
| D. | non-equilibrium goods |
| Answer» B. non-durable goods | |
| 47. |
The value of stock is $1000 and the current value of portfolio is $1500 then the obligation to cover call option is |
| A. | 0.666 |
| B. | $2,500 |
| C. | 0.015 |
| D. | $500 |
| Answer» E. | |
| 48. |
The graph which shows the change in sold quantity and its affect on operating income is classified as |
| A. | PV graph |
| B. | CV graph |
| C. | SO graph |
| D. | QI graph |
| Answer» B. CV graph | |
| 49. |
According to the Black Scholes model, the stocks with the call option pays |
| A. | dividends |
| B. | no dividends |
| C. | current price |
| D. | past price |
| Answer» C. current price | |
| 50. |
In the option pricing, the rise in risk free rate results in option's value |
| A. | slight time decreases |
| B. | slight increase |
| C. | slight decrease |
| D. | slight time increases |
| Answer» C. slight decrease | |