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.
| 701. |
The financial intermediaries that make loans available and accept long term and short term debts for funding are considered as |
| A. | activity institutions |
| B. | investment companies |
| C. | mortgage companies |
| D. | finance companies |
| Answer» E. | |
| 702. |
According to loanable funding theory, the net suppliers of funds are |
| A. | insurance companies |
| B. | government |
| C. | corporations |
| D. | households |
| Answer» E. | |
| 703. |
The funds provided by the suppliers of the funds in the financial markets are classified as |
| A. | compounded funds |
| B. | savings funds |
| C. | supply of loan-able funds |
| D. | demand of loan-able funds |
| Answer» D. demand of loan-able funds | |
| 704. |
If there is an 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 | |
| 705. |
The equilibrium interest rate increases and the economic conditions decreases then supply curve must shift to |
| 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 | |
| 706. |
For the other non-price conditions, the decrease in equilibrium interest rate leads to |
| A. | increase restrictiveness |
| B. | decrease restrictiveness |
| C. | zero restrictiveness |
| D. | negative restriction |
| Answer» B. decrease restrictiveness | |
| 707. |
The factors that can affect nominal interest rates in financial transactions include |
| A. | special provisions |
| B. | liquidity and default risk |
| C. | inflation and real interest arte |
| D. | all of the above |
| Answer» E. | |
| 708. |
According to demand for funds curve, the demand curve shifts to right if there is an increase in |
| A. | equilibrium demand |
| B. | equilibrium interest rate |
| C. | equilibrium supply |
| D. | equilibrium savings |
| Answer» C. equilibrium supply | |
| 709. |
The interest rate equilibrium is decreased and the supply curve of funds shift to the right is the result of |
| A. | increase in total wealth |
| B. | decrease in total wealth |
| C. | increase in future value |
| D. | decrease in future value |
| Answer» B. decrease in total wealth | |
| 710. |
The suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of |
| A. | financial markets |
| B. | setting interest arte |
| C. | setting compounding rate |
| D. | setting savings rate |
| Answer» B. setting interest arte | |
| 711. |
If the equilibrium interest rate decreases and the curve of funding supplied shifts to the right and downwards, then the impact on spending will |
| A. | increase in near term |
| B. | decrease in near term |
| C. | increase in long term |
| D. | decrease in long term |
| Answer» C. increase in long term | |
| 712. |
The value which converts series of equal payments in to the value received at end time of investment is classified as |
| A. | present value of annuity |
| B. | future value of annuity |
| C. | decreased value of annuity |
| D. | increased value of annuity |
| Answer» C. decreased value of annuity | |
| 713. |
The theory which states that interest equilibrium is the result of demand and supply in trading markets, is classified as |
| A. | saving fund theory |
| B. | constant funds |
| C. | borrowed theory |
| D. | loanable funds theory |
| Answer» E. | |
| 714. |
According to loanable funds theory, the fall in interest rates result into |
| 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 | |
| 715. |
The decrease in present value at decreasing rate only, when there is |
| A. | increase in availability |
| B. | decrease in availability |
| C. | decrease in interest rate |
| D. | increase in interest rate |
| Answer» E. | |
| 716. |
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 | |
| 717. |
If the demand of loanable demands increases then the borrowing cost of funds is |
| A. | higher |
| B. | zero |
| C. | upside |
| D. | lower |
| Answer» B. zero | |
| 718. |
The curve representing demand of the funds shifts to the left if economic growth in |
| A. | global market is stagnant |
| B. | global market is not stagnant |
| C. | domestic market is stagnant |
| D. | domestic market is not stagnant |
| Answer» D. domestic market is not stagnant | |
| 719. |
The value which converts series of equal payments in to the value received at the beginning of investment is classified as |
| A. | decreased value of annuity |
| B. | increased value of annuity |
| C. | present value of annuity |
| D. | future value of annuity |
| Answer» D. future value of annuity | |
| 720. |
In financial markets, the decrease in investment results in |
| A. | increase in interest rate |
| B. | decrease in interest rate |
| C. | increase in availability |
| D. | decrease in availability |
| Answer» B. decrease in interest rate | |
| 721. |
The interest rate equilibrium is increased and the supply curve of funds shifts to the left or upward is the result of |
| A. | increase in future value |
| B. | decrease in future value |
| C. | increase in total wealth |
| D. | decrease in total wealth |
| Answer» E. | |
| 722. |
The loan-able funds theory is used to determine |
| A. | savings |
| B. | interest rate |
| C. | future value |
| D. | present value |
| Answer» C. future value | |
| 723. |
The loans for education and medical is classified as loans for |
| A. | equilibrium goods |
| B. | non-equilibrium goods |
| C. | durable goods |
| D. | non-durable goods |
| Answer» E. | |
| 724. |
The equilibrium interest rate decreases and the economic conditions increases then supply curve must shift to |
| A. | up and to the left |
| B. | up and to the right |
| C. | down and to the left |
| D. | down and to the right |
| Answer» E. | |
| 725. |
The special provisions that can have adverse or beneficial effects and are reflected in interest rates do not include |
| A. | tax-ability |
| B. | covert ability |
| C. | call ability |
| D. | inflation premium |
| Answer» E. | |
| 726. |
Which of the following is true about mutual fund? |
| A. | mutual funds are risk-free investments. |
| B. | mutual funds assure fixed returns. |
| C. | in mutual funds the target investors are the high-net-worth investors. |
| D. | none of the above. |
| Answer» E. | |
| 727. |
The safer the debt instrument, the ----------------- is the rate of interest. |
| A. | lower school of distance education |
| B. | higher |
| C. | safety of debt instrument will not have any impact on the interest rate |
| D. | none of the above |
| Answer» B. higher | |
| 728. |
As Who are the participants in the Securities Market? |
| A. | investor |
| B. | intermediaries, such as merchant bankers, brokers etc. |
| C. | issuers, i.e., companies who issue shares |
| D. | all of the above |
| Answer» E. | |
| 729. |
T+2 settlement cycle in a stock exchange means, the trade is settled ------------ days after the trade |
| A. | 1 day |
| B. | same day as the trade |
| C. | 2 days |
| D. | 3 days |
| Answer» D. 3 days | |
| 730. |
Which instrument among these have historically shown to give the highest returns when invested over long periods? |
| A. | debentures |
| B. | bank deposit |
| C. | equity |
| D. | fixed deposit |
| Answer» D. fixed deposit | |
| 731. |
Nifty index is used in ----------------. |
| A. | derivatives |
| B. | index funds |
| C. | exchange traded funds (etfs) |
| D. | all of the above |
| Answer» E. | |
| 732. |
Listing of securities means -----------------. |
| A. | admission of securities of an issuer to trading privileges without a formal agreement with the stock exchange |
| B. | admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement school of distance education financial markets page 5 |
| C. | admission of securities of an issuer to clearing privileges on a stock exchange without a formal agreement |
| D. | admission of securities of an issuer to clearing privileges on a stock exchange |
| Answer» C. admission of securities of an issuer to clearing privileges on a stock exchange without a formal agreement | |
| 733. |
What is an Index? |
| A. | a basket of shares |
| B. | an indicator of market movement. |
| C. | an indicator of the economic conditions of the country. |
| D. | all of the above |
| Answer» E. | |
| 734. |
Which of the following has voting rights in a company? |
| A. | equity shareholders |
| B. | creditors |
| C. | debenture holders |
| D. | preference shareholders |
| Answer» B. creditors | |
| 735. |
Which is/are the ways by which companies can raise foreign currency resources? |
| A. | american depository share |
| B. | global depository receipts |
| C. | euro issues |
| D. | all of the above |
| Answer» E. | |
| 736. |
Which of the following problems have been eliminated by Depositories? |
| A. | reduction in the share transfer time to the buyer. |
| B. | risk of stolen, fake, forged shares. |
| C. | stamp duty on transfer of shares in dematerialized form. |
| D. | all of the above |
| Answer» E. | |
| 737. |
Equity shares have mostly ----------------- all other forms of investments in the long term. |
| A. | remained neutral when compared to |
| B. | outperformed |
| C. | underperformed |
| D. | given negative returns when compared to |
| Answer» D. given negative returns when compared to | |
| 738. |
In the balance sheet of a company, amounts due to the suppliers of goods and services brought on credit, will reflect under the head -----------------. |
| A. | loans and advances |
| B. | current liabilities and provisions |
| C. | miscellaneous expenditure school of distance education financial markets page 4 |
| D. | contingent liabilities |
| Answer» C. miscellaneous expenditure school of distance education financial markets page 4 | |
| 739. |
Buying and selling of shares can be done through a -------------- |
| A. | depository |
| B. | bank |
| C. | stock exchange |
| D. | finance company |
| Answer» D. finance company | |
| 740. |
Which of the following is not true about Exchange Traded Funds (ETF)? |
| A. | an etf is like a bank deposit. |
| B. | an etf represents a basket of stocks that reflect an index such as the nifty. |
| C. | an etf\s price changes throughout the day, fluctuating with supply and demand. |
| D. | by owning an etf, you get the diversification of an index fund plus the flexibilityof a stock. |
| Answer» B. an etf represents a basket of stocks that reflect an index such as the nifty. | |
| 741. |
Which of the following is not true of Demat account? |
| A. | one is not restricted to having account with only one dp. |
| B. | one does not need to keep any minimum balance of securities in a demat accountwith a dp. |
| C. | one cannot open more than one account with the same dp. |
| D. | one can dematerialise and hold investments such as debt instruments, mutualfund units, government securities etc. in a single demat account. |
| Answer» D. one can dematerialise and hold investments such as debt instruments, mutualfund units, government securities etc. in a single demat account. | |
| 742. |
Which of the following is not true about ADR? |
| A. | an adr is a u.s. dollar denominated form of equity ownership in a non-u.s. company. |
| B. | adrs may be used in public or private markets inside or outside us. |
| C. | adrs do not eliminate the currency risk associated with an investment in a nonu.s. company. |
| D. | adr represents the foreign shares of the company held on deposit by a custodian bank in the company\s home country. ad |
| Answer» C. adrs do not eliminate the currency risk associated with an investment in a nonu.s. company. | |
| 743. |
How can an investor acquire equity shares? |
| A. | secondary market only |
| B. | through the primary market or secondary market |
| C. | money market |
| D. | primary market only |
| Answer» C. money market | |
| 744. |
--------------- is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form. |
| A. | materialisation |
| B. | rematerialisation |
| C. | conversion |
| D. | dematerializations |
| Answer» E. | |
| 745. |
Which short-term (up to one year) instrument is issued by government as a means offinancing it’s cash requirements? |
| A. | adrs |
| B. | treasury bills |
| C. | equity |
| D. | gdrs |
| Answer» C. equity | |
| 746. |
The holders of which instrument are members of the company and have voting rights? |
| A. | commercial paper |
| B. | treasury bill |
| C. | debenture |
| D. | equity |
| Answer» E. | |
| 747. |
Money market mutual funds can invest in ------------. |
| A. | treasury bills |
| B. | certificate of deposits |
| C. | commercial paper |
| D. | all of the above |
| Answer» E. | |
| 748. |
Which of the following is TRUE about Primary Markets? |
| A. | primary market is the place where public can buy and sell securities from oneanother. |
| B. | primary markets refer to the mobilization of funds from the public by corporatesthrough the issue of shares / debentures. |
| C. | primary markets are places where only short-term instruments are traded. |
| D. | primary markets are markets where commodities are sold. |
| Answer» C. primary markets are places where only short-term instruments are traded. | |
| 749. |
The benchmark stock market index of India is -------------- |
| A. | s&p 500 |
| B. | nikkei 225 |
| C. | dow jones |
| D. | the nse nifty 50 |
| Answer» E. | |