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. |
*/*_The margin for a currency future should be maintained with the clearing house by? |
| A. | The buyer |
| B. | The seller |
| C. | Both the buyer and the seller |
| D. | Either the buyer or the seller as per the agreement between them |
| Answer» D. Either the buyer or the seller as per the agreement between them | |
| 2. |
*/*_The following statement with respect to currency option is wrong? |
| A. | Call option will be used by exporters |
| B. | Put option gives the buyer the right to sell the foreign currency |
| C. | Foreign currency- Rupee option is available in India |
| D. | An American option can be executed on any day during its currency |
| Answer» B. Put option gives the buyer the right to sell the foreign currency | |
| 3. |
*/*_US Dollar denominated bond issued in US domestic Market? |
| A. | Yankee Bond |
| B. | Bull dog Bond |
| C. | Samurai Bond |
| D. | Dual Bond |
| Answer» B. Bull dog Bond | |
| 4. |
*/*_The forward exchange rate __________? |
| A. | is the rate today for exchanging one currency for another for immediate delivery |
| B. | is the rate today for exchanging one currency for another at a specific future date |
| C. | is the rate today for exchanging one currency for another at a specific location on a specific future date |
| D. | is the rate today for exchanging one currency for another at a specific location for immediate delivery |
| Answer» C. is the rate today for exchanging one currency for another at a specific location on a specific future date | |
| 5. |
*/*_In borrowing and lending of federal funds, federal funds rate is result of function between? |
| A. | assets and liability |
| B. | cost and marketing |
| C. | supply and demand |
| D. | income and expense |
| Answer» D. income and expense | |
| 6. |
*/*_Call premium is added to face value of bond to calculate? |
| A. | call price of bond |
| B. | premium price of bond |
| C. | call price of stock |
| D. | discounted price of stock |
| Answer» B. premium price of bond | |
| 7. |
*/*_Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as? |
| A. | least effort sale |
| B. | effortless sale |
| C. | negotiated sale |
| D. | negotiated sale |
| Answer» E. | |
| 8. |
*/*_If price at which stock is purchased exceeds market value then stock warrants will? |
| A. | be exercised |
| B. | not be exercised |
| C. | be discounted |
| D. | not be discounted |
| Answer» B. not be exercised | |
| 9. |
*/*_Suppliers and demanders of long term investment funds are work closely in? |
| A. | bond markets |
| B. | classical set markets |
| C. | open end markets |
| D. | close end markets |
| Answer» B. classical set markets | |
| 10. |
*/*_Type of markets which trades underwritten bonds syndicated by some other countries is classified as? |
| A. | international markets |
| B. | national markets |
| C. | local markets |
| D. | state markets |
| Answer» B. national markets | |
| 11. |
*/*_In New York Stock exchange, fully automated information and trading system which allows to execute orders for bonds is classified as? |
| A. | secondary stock system |
| B. | primary stock system |
| C. | automated stock system |
| D. | automated bond system |
| Answer» E. | |
| 12. |
*/*_For a particular security transaction, agreement is 'repo' with point of view of? |
| A. | security seller |
| B. | security buyer |
| C. | security function |
| D. | security function |
| Answer» B. security buyer | |
| 13. |
*/*_Difference between face value of bond and call price of bond is considered as? |
| A. | call premium |
| B. | call provision |
| C. | discount premium |
| D. | discount provision |
| Answer» B. call provision | |
| 14. |
*/*_Source of funds for repayment of municipal bonds is considered as? |
| A. | local tax and revenue |
| B. | global tax and revenue |
| C. | print notes |
| D. | commercial notes |
| Answer» B. global tax and revenue | |
| 15. |
*/*_Financial securities issued by local and state governments are classified as? |
| A. | municipal bonds |
| B. | reserve bonds |
| C. | state bonds |
| D. | federal bonds |
| Answer» B. reserve bonds | |
| 16. |
*/*_According to marketability feature, bonds which are attached to stock warrants have? |
| A. | decreased floatation |
| B. | increased floatation |
| C. | increased marketability |
| D. | decreased marketability |
| Answer» D. decreased marketability | |
| 17. |
*/*_Coupon payment accrued between last payment and settlement date is classified as? |
| A. | paid interest |
| B. | unpaid interest |
| C. | zero interest |
| D. | accrued interest |
| Answer» E. | |
| 18. |
*/*_Call premium of bond is subtracted from call price of bond to calculate? |
| A. | face value of bond |
| B. | face value of stock |
| C. | book value of stock |
| D. | book value of bond |
| Answer» B. face value of stock | |
| 19. |
*/*_Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on? |
| A. | contributed bonds |
| B. | non-callable bonds |
| C. | callable bonds |
| D. | discounted bonds |
| Answer» C. callable bonds | |
| 20. |
*/*_Firms that attach bonds to stock warrants are usually? |
| A. | less discounted |
| B. | more risky |
| C. | less risky |
| D. | more discounted |
| Answer» C. less risky | |
| 21. |
*/*_In financial markets, STRIPS are also classified as? |
| A. | treasury KIBOR notes |
| B. | treasury KIBOR bonds |
| C. | treasury zero coupon bonds |
| D. | treasury LIBOR bonds |
| Answer» D. treasury LIBOR bonds | |
| 22. |
*/*_Financial institutions having loans swapped for bonds can sell all bonds in? |
| A. | under-developed markets |
| B. | developed markets |
| C. | primary markets |
| D. | secondary markets |
| Answer» E. | |
| 23. |
*/*_Denominations in which Eurobonds are issued are? |
| A. | $10000 and $20000 |
| B. | $5000 and $10000 |
| C. | $6000 and $11000 |
| D. | $8000 and $15000 |
| Answer» C. $6000 and $11000 | |
| 24. |
*/*_Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as? |
| A. | untimed indentures |
| B. | untimed debentures |
| C. | indentures |
| D. | debentures |
| Answer» E. | |
| 25. |
*/*_Type of bonds that are swapped to less developed country against an outstanding loan are classified as? |
| A. | Brady bonds |
| B. | swapped bonds |
| C. | developed bonds |
| D. | developing bonds |
| Answer» B. swapped bonds | |
| 26. |
*/*_Type of bonds issued by governments outside home country of issuer of bond are classified as? |
| A. | outside bonds |
| B. | foreign bonds |
| C. | issuing country bonds |
| D. | denominated bonds |
| Answer» C. issuing country bonds | |
| 27. |
*/*_Current market price of common stock is $12 and conversion rate received on conversion is $225 to calculate? |
| A. | $18.75 |
| B. | $2,700 |
| C. | $237 |
| D. | $450 |
| Answer» C. $237 | |
| 28. |
*/*_Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as? |
| A. | indenture bonds |
| B. | trustee bonds |
| C. | collateral bonds |
| D. | mortgage bonds |
| Answer» E. | |
| 29. |
*/*_In firm commitment underwriting procedure, more risk is at side of? |
| A. | investment bank |
| B. | insurance firm |
| C. | reissuing firm |
| D. | reselling firm |
| Answer» B. insurance firm | |
| 30. |
*/*_Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as? |
| A. | spot contract |
| B. | forward contract |
| C. | future contracts |
| D. | present contract |
| Answer» D. present contract | |
| 31. |
*/*_Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as? |
| A. | initial margin |
| B. | futures margin |
| C. | conditional margin |
| D. | non-conditional margin |
| Answer» B. futures margin | |
| 32. |
*/*_Type of trade members who take position for short period of time or sometimes for only few minutes are classified as? |
| A. | scalpers |
| B. | explorers |
| C. | temporary position holders |
| D. | professional position holders |
| Answer» B. explorers | |
| 33. |
*/*_In syndicate, leading bank which negotiates transaction to issuing bank on behalf of syndicate is called? |
| A. | originating house |
| B. | non originating house |
| C. | investment house |
| D. | non securitize house |
| Answer» B. non originating house | |
| 34. |
*/*_Form of market efficiency which states that prices of stock reflects public and private information of firm is classified as? |
| A. | weak form of market efficiency |
| B. | strong form of market efficiency |
| C. | semi-strong form market efficiency |
| D. | expensive form market efficiency |
| Answer» C. semi-strong form market efficiency | |
| 35. |
*/*_If price of an option is $475 and time value of money is $375 then intrinsic value of an option is? |
| A. | $375 |
| B. | $100 |
| C. | $475 |
| D. | $850 |
| Answer» C. $475 | |
| 36. |
*/*_Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as? |
| A. | non-participating preferred stock |
| B. | participating preferred stock |
| C. | non-cumulative preferred stock |
| D. | cumulative preferred stock |
| Answer» D. cumulative preferred stock | |
| 37. |
*/*_In interest rate swap transaction, party who pays fixed payments of interest is classified as? |
| A. | notion buyer |
| B. | notion seller |
| C. | swap buyer |
| D. | swap seller |
| Answer» D. swap seller | |
| 38. |
*/*_US and Chile agree on agreement in 2003 which is? |
| A. | free trade agreement |
| B. | European union |
| C. | Berlin wall |
| D. | NAFTA |
| Answer» B. European union | |
| 39. |
*/*_Transactions that represent inflows of funds produce? |
| A. | credit Balance |
| B. | liability |
| C. | debit Balance |
| D. | none of all of these |
| Answer» B. liability | |
| 40. |
*/*_Service acquired from other state is related to? |
| A. | dumping |
| B. | bribes |
| C. | outsourcing |
| D. | exchange policy |
| Answer» D. exchange policy | |
| 41. |
*/*_Which of following is not a cause for global investment?? |
| A. | To gain access to important raw materials. |
| B. | To produce products and/or services more efficiently than possible domestically. |
| C. | To provide an expected risk-adjusted return in excess of that required. |
| D. | International investments have less political risk than domestic investments. |
| Answer» E. | |
| 42. |
*/*_We multiply foreign revenue with rate with respect to that country is? |
| A. | Forward rate |
| B. | Spot rate |
| C. | Cash Flows |
| D. | Portfolio Investment |
| Answer» C. Cash Flows | |
| 43. |
*/*_Subsidiary may be favourable to acquisitions because? |
| A. | Easy to incorporate |
| B. | Can be tailored |
| C. | Can't be tailored |
| D. | Easy to manage |
| Answer» C. Can't be tailored | |
| 44. |
*/*_A merely household organization may be influenced by exchange rate variations if it faces at slightest some? |
| A. | Domestic Competition |
| B. | Foreign competition |
| C. | Joint ventures |
| D. | All of answers are correct |
| Answer» C. Joint ventures | |
| 45. |
*/*_Bank for International Settlements Start working in? |
| A. | 1930 |
| B. | 1933 |
| C. | 1932 |
| D. | 1937 |
| Answer» B. 1933 | |
| 46. |
*/*_Bretton woods agreement arrived at in? |
| A. | 01-07-94 |
| B. | 01-07-54 |
| C. | 31-06-60 |
| D. | 01-06-64 |
| Answer» B. 01-07-54 | |
| 47. |
*/*_The most liquid asset among the following is?? |
| A. | Gold |
| B. | Share |
| C. | Cash |
| D. | Land |
| Answer» D. Land | |
| 48. |
*/*_The exchange rate prevailing at a financial reporting date? |
| A. | Closing exchange rate |
| B. | Opening exchange rate |
| C. | Fixed exchange rate |
| D. | Fluctuating exchange rate |
| Answer» B. Opening exchange rate | |
| 49. |
*/*_The maximum amount that an Indian company can issue as ADR/GDR in a year is? |
| A. | USD 500 million |
| B. | USD 30 million |
| C. | USD 20 million |
| D. | No monetary ceiling |
| Answer» E. | |
| 50. |
*/*_Foreign exchange transactions involve monetary transactions? |
| A. | among residents of the same country |
| B. | between residents of two countries only |
| C. | between residents of two or more countries |
| D. | among residents of at least three countries |
| Answer» D. among residents of at least three countries | |