MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Agreement which incurs transaction between two parties and promise held that second party will repurchase security at specific price is classified as |
| A. | epurchasing commercial notes |
| B. | epurchase bills |
| C. | epurchase agreement |
| D. | everse repurchase agreement |
| Answer» D. everse repurchase agreement | |
| 2. |
Selling price is added in to repurchase agreement paid interest to calculate |
| A. | irect price of security |
| B. | epurchase price of securities |
| C. | urchase price of security |
| D. | ransaction price of security |
| Answer» C. urchase price of security | |
| 3. |
Interest rate at which federal funds are borrowed and can be lent is classified as |
| A. | orrowing rate |
| B. | upplying rate |
| C. | ending rate |
| D. | ederal funds rate |
| Answer» E. | |
| 4. |
If 175 days T-bill have maturity of one year with value of $8000 and face value is $10000 then reported discount yield is |
| A. | 2.50% |
| B. | 1.14% |
| C. | 2.14% |
| D. | 5.14% |
| Answer» C. 2.14% | |
| 5. |
Transactions in market of treasury bills is mostly transacted over telephone and hence classified as |
| A. | ecentralized |
| B. | entralized |
| C. | ederalize |
| D. | ommercialize |
| Answer» B. entralized | |
| 6. |
Government issues treasury bills at discounted rate from |
| A. | ace value |
| B. | ook value |
| C. | remium value |
| D. | ederal value |
| Answer» B. ook value | |
| 7. |
Principal issuer of commercial papers are commercial banks and major investors of principal investors includes |
| A. | rokers and dealers |
| B. | orporations |
| C. | ther financial institutions |
| D. | ll of above |
| Answer» E. | |
| 8. |
Theory which states that interest equilibrium is result of demand and supply in trading market is classified as |
| A. | aving fund theory |
| B. | onstant funds |
| C. | orrowed theory |
| D. | oanable funds theory |
| Answer» E. | |
| 9. |
Value which converts series of equal payments in to value received at end time of investment is classified as |
| A. | resent value of annuity |
| B. | uture value of annuity |
| C. | ecreased value of annuity |
| D. | ncreased value of annuity |
| Answer» C. ecreased value of annuity | |
| 10. |
If equilibrium interest rate decreases and curve of funding supplied shifts to right and downwards then impact on spending is |
| A. | ncrease in near term |
| B. | ecrease in near term |
| C. | ncrease in long term |
| D. | ecrease in long term |
| Answer» C. ncrease in long term | |
| 11. |
According to loanable funds theory, fall in interest rates results in to |
| A. | ero demand of funds |
| B. | quilibrium demands of funds |
| C. | igher demand of funds |
| D. | ower demand of funds |
| Answer» D. ower demand of funds | |
| 12. |
Type of unit which guarantees that all buying and selling will be made by traders of exchange is called |
| A. | rading house |
| B. | uarantee house |
| C. | learing house |
| D. | rofessional house |
| Answer» D. rofessional house | |
| 13. |
If time value of an option is $200 and intrinsic value of an option is $250 then price of option is |
| A. | 50 |
| B. | 550 |
| C. | 200 |
| D. | 250 |
| Answer» C. 200 | |
| 14. |
Underwriter spread of stock is $17000 and net proceeds of stock are $24000 then gross proceeds are |
| A. | 41,000 |
| B. | 7,000 |
| C. | 17,000.00 |
| D. | 24,000 |
| Answer» B. 7,000 | |
| 15. |
Price at which stock is sold to investors by investment banks is called |
| A. | ross proceeds |
| B. | umulative proceeds |
| C. | on-cumulative proceeds |
| D. | et proceeds |
| Answer» B. umulative proceeds | |
| 16. |
Stock markets in which already issued stocks are resold and re-bought are classified as |
| A. | ed herring stock market |
| B. | re-emptive stock market |
| C. | ilence stock market |
| D. | econdary stock markets |
| Answer» E. | |
| 17. |
Type of option that can be exercised only at date of expiration is classified as |
| A. | uropean option |
| B. | anadian option |
| C. | ustralian option |
| D. | merican option |
| Answer» B. anadian option | |
| 18. |
Capital gain is 9% and return to stockholder is 18% then periodic payments of dividends are |
| A. | 8.00% |
| B. | 7.00% |
| C. | 5.00% |
| D. | .00% |
| Answer» E. | |
| 19. |
Up-front fee which must be paid by buyer to seller is called |
| A. | all premium |
| B. | iscount premium |
| C. | trike premium |
| D. | xercise premium |
| Answer» B. iscount premium | |
| 20. |
Example of derivative securities is |
| A. | eturn backed security |
| B. | ortgage backed security |
| C. | ash flow backed security |
| D. | nterest backed security |
| Answer» C. ash flow backed security | |
| 21. |
Orders that are transacted at specified price are considered as |
| A. | ed herring order |
| B. | imit order |
| C. | nlimited order |
| D. | ssets order |
| Answer» C. nlimited order | |
| 22. |
Orders that are transacted at best available price are classified as |
| A. | ost order |
| B. | ransacted order |
| C. | arket order |
| D. | vailable order |
| Answer» D. vailable order | |
| 23. |
Time value of an option is added into intrinsic value to calculate |
| A. | arket index of an option |
| B. | epreciated value of option |
| C. | ppreciated value of option |
| D. | rice of an option |
| Answer» E. | |
| 24. |
Time period between issuance of shares and filing of registration to Securities Exchange Commission is classified as |
| A. | iling period |
| B. | uiet period |
| C. | ilence period |
| D. | oise period |
| Answer» C. ilence period | |
| 25. |
If exercise price of an option is $360 and intrinsic value of an option is $160 then price of an underlying asset is |
| A. | 200 |
| B. | 520 |
| C. | 160 |
| D. | 360 |
| Answer» B. 520 | |
| 26. |
Type of exchange members who place buying and selling from public are classified as |
| A. | loor broker |
| B. | oof broker |
| C. | roker of auction |
| D. | everage investment broker |
| Answer» B. oof broker | |
| 27. |
Contract which gives rights to holders to sell or buy asset at specific time period rather than giving obligation is classified as |
| A. | ption |
| B. | ontract |
| C. | bligatory contract |
| D. | on-obligatory contract |
| Answer» B. ontract | |
| 28. |
If risk of financial security decreases and supply curve shifts to right and downwards then impact on equilibrium of interest rate must |
| A. | ositive |
| B. | egative |
| C. | ecreases |
| D. | ncreases |
| Answer» D. ncreases | |
| 29. |
Earned interest rate which is reinvested in other investment is classified as |
| A. | ompound interest |
| B. | nvestment risk |
| C. | nterest rate |
| D. | tated rate |
| Answer» B. nvestment risk | |
| 30. |
Expected rate that originates at any point in future for a specific security is classified as |
| A. | orward rate |
| B. | ackward rate |
| C. | ermed rate |
| D. | tructured rate |
| Answer» B. ackward rate | |
| 31. |
Accounts receivable and inventory are examples of |
| A. | hort term working capital |
| B. | ong term working capital |
| C. | ong term fixed assets |
| D. | hort term fixed assets |
| Answer» B. ong term working capital | |
| 32. |
Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as |
| A. | waps |
| B. | nterchange |
| C. | xchange |
| D. | ndex |
| Answer» B. nterchange | |
| 33. |
Put option considering interest rates and have multiple exercise dates is classified as |
| A. | waps multiplier |
| B. | otion multiplier |
| C. | loor |
| D. | ap |
| Answer» D. ap | |
| 34. |
Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as |
| A. | on-cumulative preferred stock |
| B. | umulative preferred stock |
| C. | on-participating preferred stock |
| D. | articipating preferred stock |
| Answer» D. articipating preferred stock | |
| 35. |
Type of option that gives right to buyer to buy underlying option at specific exercise price is considered as |
| A. | uropean option |
| B. | ustralian option |
| C. | all option |
| D. | ut option |
| Answer» D. ut option | |
| 36. |
If equilibrium interest rate increases and curve of funding supplied shifts to left then impact on spending is |
| A. | ncrease in near term |
| B. | ecrease in near term |
| C. | ncrease in long term |
| D. | ecrease in long term |
| Answer» B. ecrease in near term | |
| 37. |
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 | |
| 38. |
Shift of demand curve to down and to left then there must be |
| A. | upport from World Bank |
| B. | ecreases in funds traded |
| C. | ncrease in funds traded |
| D. | ise of international funds |
| Answer» C. ncrease in funds traded | |
| 39. |
When interest rate is lower than equilibrium rate of borrowing loanable funds then financial system has |
| A. | urplus of funds |
| B. | eficit of funds |
| C. | hort-term funds |
| D. | ong-term funds |
| Answer» C. hort-term funds | |
| 40. |
If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is |
| A. | hift left |
| B. | hift right |
| C. | pside movement |
| D. | ownside movement |
| Answer» D. ownside movement | |
| 41. |
Funds demand which is pushed by users of funds in financial markets are classified as |
| A. | upply of loan-able funds |
| B. | emand of loan-able funds |
| C. | ompounded funds |
| D. | avings funds |
| Answer» C. ompounded funds | |
| 42. |
To create situation with no shortage of funds, relationship between funds supplied and funds demanded must have |
| A. | wo way relationship |
| B. | ne way relationship |
| C. | irect relationship |
| D. | nverse relationship |
| Answer» E. | |
| 43. |
If demand of loanable demands decrease then borrowing cost of funds is |
| A. | pside |
| B. | ower |
| C. | igher |
| D. | ero |
| Answer» C. igher | |
| 44. |
Monetary expansion decreases and there is increase in equilibrium interest rate then supply curve of funds must shift |
| A. | own and to left |
| B. | own and to right |
| C. | p and to left |
| D. | p and to right |
| Answer» D. p and to right | |
| 45. |
Plant and equipment are examples of |
| A. | ong term fixed assets |
| B. | hort term fixed assets |
| C. | hort term working capital |
| D. | ong term working capital |
| Answer» B. hort term fixed assets | |
| 46. |
If equilibrium interest rate decreases with respect to decrease in interest rate, then movement along supply of funds curve is |
| A. | pside movement |
| B. | ownside movement |
| C. | hift left |
| D. | hift right |
| Answer» C. hift left | |
| 47. |
When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has |
| A. | hort-term funds |
| B. | ong-term funds |
| C. | urplus of funds |
| D. | eficit of funds |
| Answer» D. eficit of funds | |
| 48. |
Interest rate considering compounding of interest rate and is earned in 12 months is considered as |
| A. | ffective annual return |
| B. | neffective annual return |
| C. | ecrease in return |
| D. | ncrease in return |
| Answer» B. neffective annual return | |
| 49. |
When business companies started investing with funds generated internally is a point which shows that |
| A. | ost of loanable funds is high |
| B. | ost of loanable fund is low |
| C. | quilibrium is zero |
| D. | quilibrium is negative |
| Answer» B. ost of loanable fund is low | |
| 50. |
Loans for cars and home appliances is classified as loans for |
| A. | urable goods |
| B. | on-durable goods |
| C. | quilibrium goods |
| D. | on-equilibrium goods |
| Answer» B. on-durable goods | |