MCQOPTIONS
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MCQOPTIONS
This section includes 749 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (M.A. Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 601. |
The type of structured market through which the funds flow with the help of financial instruments such as bonds and stocks is classified as |
| A. | financial markets |
| B. | non-financial markets |
| C. | funds market |
| D. | flow market |
| Answer» B. non-financial markets | |
| 602. |
Nations that have major economic expansion attract |
| A. | imports |
| B. | direct foreign investment |
| C. | exports |
| D. | privatization |
| Answer» C. exports | |
| 603. |
The transaction cost of trading of financial instruments in centralized market is classified as |
| A. | flexible costs |
| B. | low transaction costs |
| C. | high transaction costs |
| D. | constant costs |
| Answer» C. high transaction costs | |
| 604. |
The major assets of commercial banks are |
| A. | commercial loans |
| B. | consumer loans |
| C. | deposits |
| D. | both a and c |
| Answer» E. | |
| 605. |
The companies that collect funds from companies and individuals and invest in portfolios of assets are classified as |
| A. | activity funds |
| B. | mutual funds |
| C. | penalty funds |
| D. | financing funds |
| Answer» C. penalty funds | |
| 606. |
The stocks or shares that are sold to investors without transacting through financial institutions are classified as |
| A. | direct transfer |
| B. | indirect transfer |
| C. | global transfer |
| D. | pension transfer |
| Answer» B. indirect transfer | |
| 607. |
In capital markets, the major suppliers of trading instruments are |
| A. | government and corporations |
| B. | liquid corporations |
| C. | instrumental corporations |
| D. | manufacturing corporations |
| Answer» B. liquid corporations | |
| 608. |
The reasons for smaller exposure of foreign exchange than US money center are |
| A. | regulations |
| B. | prudent individuals |
| C. | smaller size of assets |
| D. | all of the above |
| Answer» E. | |
| 609. |
The technique by which companies reduce cost of transaction services and results in increased efficiency is classified as |
| A. | economies of cost |
| B. | economies of scale |
| C. | economies of efficiency |
| D. | economies of transaction |
| Answer» C. economies of efficiency | |
| 610. |
The type of security backed by mortgage cash flows and are packed by financial instruments is classified as |
| A. | cash mortgage |
| B. | securitized mortgage |
| C. | financial mortgage |
| D. | instrumental mortgage |
| Answer» C. financial mortgage | |
| 611. |
General Agreement on Tariffs and Trade (GATT) |
| A. | is an accord reached between 100 countries in 1980 |
| B. | reduced some tariffs by 80 percent on average |
| C. | removed some tariffs over a five- to ten-year period |
| D. | made more progress on reducing tariffs in service industries than in manufacturing industries |
| Answer» D. made more progress on reducing tariffs in service industries than in manufacturing industries | |
| 612. |
Transactions that represent inflows of funds produce |
| A. | credit Balance |
| B. | liability |
| C. | debit Balance |
| D. | none of all of these |
| Answer» B. liability | |
| 613. |
The position which came in to existence because of holding assets more than liabilities is considered as |
| A. | net long in currency |
| B. | net short in currency |
| C. | net surplus in assets |
| D. | net surplus in liabilities |
| Answer» B. net short in currency | |
| 614. |
Formed in 1960 is |
| A. | World Trade Organization |
| B. | World Bank |
| C. | Regional Development Agency |
| D. | International Development Association |
| Answer» E. | |
| 615. |
The type of risk in which the value of liabilities and assets is affected by the exchange rate is classified as |
| A. | economic rates |
| B. | foreign exchange risk |
| C. | selling rate |
| D. | buying rates |
| Answer» C. selling rate | |
| 616. |
The rule which states that similar set of goods and services produced in various countries should have equal price is classified as |
| A. | law of similar mortgage rate |
| B. | law of one type manufacturing |
| C. | law of similar labor rules |
| D. | law of one price |
| Answer» E. | |
| 617. |
The federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as |
| A. | counter instruments |
| B. | long term instruments |
| C. | money market instruments |
| D. | capital market instruments |
| Answer» D. capital market instruments | |
| 618. |
The legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as |
| A. | prospectus |
| B. | stated document |
| C. | risk detailed document |
| D. | exchange commission document |
| Answer» B. stated document | |
| 619. |
The financial instruments of public markets include |
| A. | transfer funds |
| B. | bearer bonds |
| C. | shares |
| D. | bonds |
| Answer» D. bonds | |
| 620. |
IMF is firm of |
| A. | 190 members countries |
| B. | 182 members countries |
| C. | 186 member countries |
| D. | 183 member countries |
| Answer» E. | |
| 621. |
The formula of effective annual return is written as |
| A. | (1+r) c - 1 |
| B. | (2+r) c - 2 |
| C. | (3+r) c - 3 |
| D. | (1+r) c - 5 |
| Answer» B. (2+r) c - 2 | |
| 622. |
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 | |
| 623. |
The shift of demand curve to down and then to the left resulting in |
| A. | support from World Bank |
| B. | decreases in funds traded |
| C. | increase in funds traded |
| D. | rise of international funds |
| Answer» C. increase in funds traded | |
| 624. |
The expected rate that originates at any point in future for a specific security is classified as |
| A. | forward rate |
| B. | backward rate |
| C. | termed rate |
| D. | structured rate |
| Answer» B. backward rate | |
| 625. |
The transfer of financial instruments from suppliers of funds to users of funds without any intermediary in between is classified as |
| A. | global transfer |
| B. | pension transfer |
| C. | direct transfer |
| D. | indirect transfer |
| Answer» D. indirect transfer | |
| 626. |
World Bank Group recognized in |
| A. | 1940 |
| B. | 1945 |
| C. | 1944 |
| D. | 1947 |
| Answer» D. 1947 | |
| 627. |
Single European Act created in |
| A. | 1970 |
| B. | 1988 |
| C. | 1977 |
| D. | 1978 |
| Answer» C. 1977 | |
| 628. |
The example of derivative securities include |
| A. | swap contract |
| B. | option contract |
| C. | futures contract |
| D. | all of the above |
| Answer» E. | |
| 629. |
The exchange rate of foreign currency fluctuate day to day because of |
| A. | demand and supply |
| B. | increased maturity |
| C. | decreased maturity |
| D. | instrument availability |
| Answer» B. increased maturity | |
| 630. |
Less tax rate in a state get intention of |
| A. | imports |
| B. | exports |
| C. | direct foreign investment |
| D. | privatization |
| Answer» D. privatization | |
| 631. |
Bank for International Settlements Start working in |
| A. | 1930 |
| B. | 1933 |
| C. | 1932 |
| D. | 1937 |
| Answer» B. 1933 | |
| 632. |
The institutions deal in financial functions and protects corporations and individuals against accidents, theft and death are considered as |
| A. | penalty companies |
| B. | insurance companies |
| C. | events dealers |
| D. | protecting companies |
| Answer» C. events dealers | |
| 633. |
The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called |
| A. | interest rate parity theorem |
| B. | appreciation parity theorem |
| C. | domestic parity theorem |
| D. | foreign interest parity theorem |
| Answer» B. appreciation parity theorem | |
| 634. |
The type of risk in which payments are interrupted by the intervention of foreign governments is considered as |
| A. | channel risk |
| B. | globalization risk |
| C. | state risk |
| D. | country risk |
| Answer» E. | |
| 635. |
The corporate equities or corporate stocks represent the portion in instruments of capital markets, which is |
| A. | largest |
| B. | smallest |
| C. | never paid |
| D. | none of the above |
| Answer» B. smallest | |
| 636. |
The risk which arises from insufficient capital available to balance the sudden decrease in assets value is classified as |
| A. | insolvency risk |
| B. | solvency risk |
| C. | balanced risk |
| D. | unbalanced risk |
| Answer» B. solvency risk | |
| 637. |
The monetary expansion decreases and there is an increase in equilibrium interest rate then supply curve of funds must shift |
| A. | down and to the left |
| B. | down and to the right |
| C. | up and to the left |
| D. | up and to the right |
| Answer» D. up and to the right | |
| 638. |
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 | |
| 639. |
The sum of past deficit of budget if accumulated is considered as |
| A. | global surplus |
| B. | national debt |
| C. | international debt |
| D. | global debt |
| Answer» C. international debt | |
| 640. |
If the equilibrium interest rate increases with respect to increase in interest rate, then the movement along the supply of funds curve show a/an |
| A. | shift left |
| B. | shift right |
| C. | upside movement |
| D. | downside movement |
| Answer» D. downside movement | |
| 641. |
If the risk of financial security increases and the supply curve shifts to the left then the impact on equilibrium of interest rate must |
| A. | decreases |
| B. | increases |
| C. | positive |
| D. | negative |
| Answer» C. positive | |
| 642. |
DFI is part of |
| A. | current account |
| B. | fixed account |
| C. | long term account |
| D. | financial account |
| Answer» E. | |
| 643. |
For the specific basket of goods and services, the rise in the price on continual basis is considered as |
| A. | fall in globalization |
| B. | rise in globalization |
| C. | rise in demand |
| D. | inflation |
| Answer» E. | |
| 644. |
Not a currency but basically a component of account of |
| A. | compensatory financing facility |
| B. | special drawing rights |
| C. | multilateral investment guarantee agency |
| D. | structural adjustment loan |
| Answer» C. multilateral investment guarantee agency | |
| 645. |
The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to |
| A. | greater liquidity of assets |
| B. | greater volatility of rates |
| C. | lesser volatility of rates |
| D. | lesser liquidity of assets |
| Answer» C. lesser volatility of rates | |
| 646. |
The services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as |
| A. | business allocation |
| B. | sector allocation |
| C. | economic allocation |
| D. | credit allocation |
| Answer» E. | |
| 647. |
The risk stating the assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as |
| A. | payment risk |
| B. | liquidity risk |
| C. | income risk |
| D. | balance risk |
| Answer» C. income risk | |
| 648. |
Distinction between overall exports and imports is related to |
| A. | factor income |
| B. | transfer Payments |
| C. | balance of trade |
| D. | account balance |
| Answer» D. account balance | |
| 649. |
The saving banks, insurance companies, mutual funds and commercial banks are all examples of |
| A. | non-financial institutions |
| B. | derivative institutions |
| C. | financial institutions |
| D. | payable institutions |
| Answer» D. payable institutions | |
| 650. |
The risk arises when the technology system may got malfunction is classified as |
| A. | system risk |
| B. | technology risk |
| C. | operational risk |
| D. | support risk |
| Answer» D. support risk | |