MCQOPTIONS
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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1001. |
Type of financial securities that matures in less than a year are classified as |
| A. | oney market securities |
| B. | apital market securities |
| C. | aving intermediaries |
| D. | iscounted intermediaries |
| Answer» B. apital market securities | |
| 1002. |
Characteristic of corporation that it can continue its work even owners are decreased can be classified as |
| A. | imited life |
| B. | nlimited life |
| C. | orporate life |
| D. | eceased partnership |
| Answer» C. orporate life | |
| 1003. |
Rate of return which is asked by investors is classified as |
| A. | verage cost of capital |
| B. | ean cost of capital |
| C. | eighted cost of capital |
| D. | eighted average cost of capital |
| Answer» E. | |
| 1004. |
Trading place where traders meet one another to communicate is classified as |
| A. | utcry auction system |
| B. | utcry system |
| C. | ace to face communication |
| D. | oney communication |
| Answer» B. utcry system | |
| 1005. |
Trading procedures dimensions include |
| A. | ocation dimension |
| B. | ethod of matching orders |
| C. | rice dimension |
| D. | oth A and B |
| Answer» E. | |
| 1006. |
Merrill Lynch, Morgan Stanley and Credit Suisse Group plan for raising capital is classified as |
| A. | nvestment banking houses |
| B. | xchange houses |
| C. | ransfer houses |
| D. | oreign exchange houses |
| Answer» B. xchange houses | |
| 1007. |
In financial markets, period of maturity more than five years of financial instruments is classified as |
| A. | ntermediate term |
| B. | apital term |
| C. | hort-term |
| D. | ong-term |
| Answer» E. | |
| 1008. |
Type of financial security in which loans are secured by borrower's property is classified as |
| A. | unicipal bonds |
| B. | orporate bonds |
| C. | .S treasury bonds |
| D. | ortgages |
| Answer» E. | |
| 1009. |
Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called |
| A. | esidential markets |
| B. | ortgage markets |
| C. | griculture markets |
| D. | ommercial markets |
| Answer» C. griculture markets | |
| 1010. |
Markets which bring closer institutions needing funds and with surplus funds are classified as |
| A. | inancial markets |
| B. | orporate institutions |
| C. | edge firms |
| D. | etirement planners |
| Answer» B. orporate institutions | |
| 1011. |
Risk of doing business in particular country and arises from foreign investments is classified as |
| A. | ountry risk |
| B. | oreign risk |
| C. | roffered risk |
| D. | ommon risk |
| Answer» B. oreign risk | |
| 1012. |
Set of rules made by corporation founders such as directors election procedure are classified as |
| A. | tock laws |
| B. | y laws |
| C. | iability laws |
| D. | orporate laws |
| Answer» C. iability laws | |
| 1013. |
Corporate associations who have common bonds being employees of same firm are classified as |
| A. | redit unions |
| B. | ebit unions |
| C. | referred unions |
| D. | olving unions |
| Answer» B. ebit unions | |
| 1014. |
Corporations that buy financial instruments with money accepted from savers are classified as |
| A. | ebit funds |
| B. | redit funds |
| C. | utual funds |
| D. | nsurance funds |
| Answer» D. nsurance funds | |
| 1015. |
All partners have limited liability in |
| A. | nlimited liability partnership |
| B. | imited liability partnership |
| C. | ontrolled partnership |
| D. | ncontrolled partnership |
| Answer» C. ontrolled partnership | |
| 1016. |
Financial security which is tax exempted and issues by state governments to individuals is classified as |
| A. | .S treasury bonds |
| B. | ortgages |
| C. | unicipal bonds |
| D. | orporate bonds |
| Answer» D. orporate bonds | |
| 1017. |
Step in initial public offering in which hired agents act on behalf of owners is classified as |
| A. | iring problems |
| B. | gency problems |
| C. | orporation internal problems |
| D. | orporation external problems |
| Answer» C. orporation internal problems | |
| 1018. |
Mutual fund allows investors to sale out their share during any normal trading hours is classified as |
| A. | xchange traded fund |
| B. | anagement expense |
| C. | oney trade fund |
| D. | apital trade fund |
| Answer» B. anagement expense | |
| 1019. |
Financial security with low degree risk and investment held by businesses is classified as |
| A. | reasury bills |
| B. | ommercial paper |
| C. | egotiable certificate of deposit |
| D. | oney market mutual funds |
| Answer» E. | |
| 1020. |
Government spending, if it exceeds federal government tax revenues then it is classified as |
| A. | ederal Reserve |
| B. | ederal budget |
| C. | udget surplus |
| D. | udget deficit |
| Answer» E. | |
| 1021. |
In Corporation characteristics, losses are subject to funds invested actually is considered as |
| A. | imited liability |
| B. | nlimited liability |
| C. | eneral liability |
| D. | ontrolled ownership liability |
| Answer» B. nlimited liability | |
| 1022. |
Firm's which helps in indirect transfer such as Merrill Lynch is classified as |
| A. | nvestment banking house |
| B. | nvestment bank |
| C. | aving house |
| D. | aving bank |
| Answer» B. nvestment bank | |
| 1023. |
An inexpensive and easy business formation and few government regulations are advantages of |
| A. | rivate Corporation |
| B. | ersonal ownership |
| C. | roprietorship |
| D. | ersonal business |
| Answer» D. ersonal business | |
| 1024. |
Banks such as Bank of America serves a range of savers and borrowers are classified as |
| A. | ransfer banks |
| B. | ommercial banks |
| C. | erving banks |
| D. | ation's banks |
| Answer» C. erving banks | |
| 1025. |
Hewlett-Packard and Microsoft are examples of |
| A. | imited corporate business |
| B. | nlimited corporate business |
| C. | ontrolled corporate business |
| D. | orporation |
| Answer» E. | |
| 1026. |
New York Stock Exchange' is an example of |
| A. | apital markets |
| B. | oney markets |
| C. | iquid markets |
| D. | hort-term markets |
| Answer» B. oney markets | |
| 1027. |
Type of financial security in which firms do not borrow money rather lease their assets is classified as |
| A. | eases |
| B. | referred stocks |
| C. | ommon stocks |
| D. | orporate stocks |
| Answer» B. referred stocks | |
| 1028. |
Formula Sales revenue minus operating cost and taxes minus operating capital investments is used to calculate |
| A. | vailable income |
| B. | ash income |
| C. | ree cash flows |
| D. | ree distribution |
| Answer» D. ree distribution | |
| 1029. |
Reduced consumer demand for loans, homes and new automobiles is result of |
| A. | ess disposable income |
| B. | igh disposable income |
| C. | ederal disposable income |
| D. | iscount disposable income |
| Answer» B. igh disposable income | |
| 1030. |
Relevant information about stock market price if it is given, then this price is called |
| A. | arket price |
| B. | ntrinsic price |
| C. | xtrinsic price |
| D. | nstable price |
| Answer» C. xtrinsic price | |
| 1031. |
Default free financial security sells by U.S treasury is classified as |
| A. | .S treasury bills |
| B. | ommercial paper |
| C. | ertificate of deposit |
| D. | utual funds |
| Answer» B. ommercial paper | |
| 1032. |
Markets where assets are bought or sold within a few days or at some future dates are classified as |
| A. | pot markets |
| B. | uture markets |
| C. | oth A and B |
| D. | inancial instruments |
| Answer» D. inancial instruments | |
| 1033. |
Markets dealing loans of autos, education, vacations and appliances are considered as |
| A. | onsumer credit loans |
| B. | ommercial markets |
| C. | esidential markets |
| D. | ortgage markets |
| Answer» B. ommercial markets | |
| 1034. |
Financial security kept by non-financial corporations is |
| A. | eposit cheque |
| B. | istribution cost |
| C. | hort term treasury bills |
| D. | hort term capital cost |
| Answer» D. hort term capital cost | |
| 1035. |
Financial security issues by major banks and risk depends on strength of issuer is classified as |
| A. | egotiable certificate of deposit |
| B. | utual funds |
| C. | .S treasury bills |
| D. | ommercial paper |
| Answer» B. utual funds | |
| 1036. |
Capital gain expected by stockholders and dividends are included in |
| A. | ebt rate |
| B. | nvestment return |
| C. | nterest rate |
| D. | ost of equity |
| Answer» E. | |
| 1037. |
Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as |
| A. | inancial instruments |
| B. | inancial asset markets |
| C. | hysical asset markets |
| D. | asy markets |
| Answer» C. hysical asset markets | |
| 1038. |
Value of free cash flows Rs55000, operating cost and taxes Rs30000, then value of sales revenues (in Rs) will be |
| A. | s 25,000.00 |
| B. | s 85,000.00 |
| C. | s 35,000.00 |
| D. | s 45,000.00 |
| Answer» C. s 35,000.00 | |
| 1039. |
Financial security issued by banks operating outside U.S is classified as |
| A. | ollar bonds |
| B. | uro deposits |
| C. | urodollar market deposits |
| D. | uro bonds |
| Answer» D. uro bonds | |
| 1040. |
Type of partnership in which liabilities are limited for business owners is classified as |
| A. | nlimited partnership |
| B. | imited partnership |
| C. | oint corporate |
| D. | oint venture |
| Answer» C. oint corporate | |
| 1041. |
Federal government tax revenues if it exceeds government spending then it is classified as |
| A. | udget surplus |
| B. | udget deficit |
| C. | ederal Reserve |
| D. | ederal budget |
| Answer» B. udget deficit | |
| 1042. |
Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as |
| A. | ebit unions |
| B. | ife insurance companies |
| C. | redit unions |
| D. | uto purchases |
| Answer» C. redit unions | |
| 1043. |
Financial corporations which serve individual savers and commercial mortgage borrowers are classified as |
| A. | avings associations |
| B. | oans associations |
| C. | referred and common associations |
| D. | avings and loans associations |
| Answer» E. | |
| 1044. |
Corporations such as Citigroup, American Express and Fidelity are classified as |
| A. | inancial services corporations |
| B. | ommon service corporations |
| C. | referred service corporations |
| D. | ommercial service corporations |
| Answer» B. ommon service corporations | |
| 1045. |
Second step in calculating value of stock with non-constant growth rate is to find out an |
| A. | xpected intrinsic stock |
| B. | xtrinsic stock |
| C. | xpected price of stock |
| D. | ntrinsic stock |
| Answer» D. ntrinsic stock | |
| 1046. |
According to investors point of view, an expected rate of return is rate on stocks which they |
| A. | eceive in future |
| B. | eceived in past |
| C. | early growth |
| D. | emi-annual growth |
| Answer» B. eceived in past | |
| 1047. |
Constant growth rate is 6.5% and an expected dividend yield is 3.4% then an expected rate of return would be |
| A. | .90% |
| B. | 0.00% |
| C. | .10% |
| D. | 9.12% |
| Answer» B. 0.00% | |
| 1048. |
Present value of dividends which is expected to be provided in future is classified as an |
| A. | ntrinsic value of stock |
| B. | xtrinsic value of stock |
| C. | ntrinsic bonds |
| D. | xtrinsic bonds |
| Answer» B. xtrinsic value of stock | |
| 1049. |
Cash flow which is available for all investors of company is classified as |
| A. | xtrinsic stock |
| B. | ntrinsic stock |
| C. | nvesting cash |
| D. | ree cash flow |
| Answer» E. | |
| 1050. |
Constant growth model would not be used in condition if growth rate is |
| A. | reater than dividend paid |
| B. | qual to realized rate of return |
| C. | ess than realized rate of return |
| D. | reater than realized rate of return |
| Answer» E. | |