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. |
This is not established method of translation |
| A. | urrent rate method |
| B. | onetary/Non-monetary method |
| C. | emporary method |
| D. | urrent/Non-current method |
| Answer» D. urrent/Non-current method | |
| 2. |
Buying price of stock is $35 and it can be sold for $30 whereas dividend paid is $6 then return on stock is |
| A. | 6.67% |
| B. | 6.67% |
| C. | 6.67% |
| D. | 6.67% |
| Answer» B. 6.67% | |
| 3. |
Type of index in which current values of stock are added together and divided by value of stock on base date is classified as |
| A. | alue weighted index |
| B. | erring weighted index |
| C. | rimary market index |
| D. | tock market index |
| Answer» B. erring weighted index | |
| 4. |
Gross proceeds of stock is $37000 and underwriter spread is $25000 |
| A. | 25,000.00 |
| B. | 37,000 |
| C. | 12,000 |
| D. | 62,000 |
| Answer» D. 62,000 | |
| 5. |
Simplicity with which bondholders and shareholders can change their investments into cash is known |
| A. | arter |
| B. | edging |
| C. | rbitrage |
| D. | iquidity |
| Answer» E. | |
| 6. |
Differences in nominal interest rates are removed in exchange rate is |
| A. | isher effect |
| B. | eontief paradox. |
| C. | ombined equilibrium theory. |
| D. | urchasing power parity |
| Answer» B. eontief paradox. | |
| 7. |
Today, important factor that result in augmentation in international bond market is |
| A. | ow interest rates |
| B. | igh interest rates |
| C. | oderate interest rates |
| D. | ll of above |
| Answer» B. igh interest rates | |
| 8. |
Which of following causes do investors employ foreign exchange market |
| A. | urrency hedging |
| B. | urrency speculation |
| C. | urrency conversion |
| D. | ll of above |
| Answer» E. | |
| 9. |
Not aim of international capital market is |
| A. | reserving hard currencies to finance trade deficits |
| B. | educing cost of money to borrowers |
| C. | educing investor risk |
| D. | xpanding money supply for borrowers |
| Answer» B. educing cost of money to borrowers | |
| 10. |
For given change in interest rates, percentage change in present value of bond is classified as |
| A. | rice sensitivity |
| B. | ield sensitivity |
| C. | aturity sensitivity |
| D. | remium sensitivity |
| Answer» B. ield sensitivity | |
| 11. |
Type of bonds that pay coupon interest are classified as |
| A. | orward bond |
| B. | ayment bonds |
| C. | oupon bond |
| D. | nterest bonds |
| Answer» D. nterest bonds | |
| 12. |
Major participants in forward markets are |
| A. | ommercial banks |
| B. | roker deals |
| C. | nvestment banks |
| D. | ll of above |
| Answer» E. | |
| 13. |
More coupon payment or promised interest payment |
| A. | igher its duration |
| B. | ower its duration |
| C. | ero duration |
| D. | ne year duration |
| Answer» C. ero duration | |
| 14. |
In zero coupon bonds, increase in duration with respect to maturity must be at |
| A. | ecreasing rate |
| B. | ncreasing rate |
| C. | larming rate |
| D. | nelastic rate |
| Answer» B. ncreasing rate | |
| 15. |
In zero coupon bonds, impact of higher duration on maturity is that |
| A. | aturity will be zero |
| B. | aturity will be elastic |
| C. | aturity will be higher |
| D. | aturity will be lower |
| Answer» E. | |
| 16. |
Larger fluctuations in portfolio value of foreign exchange of financial institutions leads to |
| A. | reater liquidity of assets |
| B. | reater volatility of rates |
| C. | esser volatility of rates |
| D. | esser liquidity of assets |
| Answer» C. esser volatility of rates | |
| 17. |
Duration which is divided by interest rate plus one is classified as |
| A. | ecreased duration |
| B. | ncrease duration |
| C. | odified duration |
| D. | t par duration |
| Answer» D. t par duration | |
| 18. |
Inverse relationship between price change and interest rate change is represented by |
| A. | egative discount |
| B. | egative duration |
| C. | ositive duration |
| D. | ositive discount |
| Answer» C. ositive duration | |
| 19. |
Rule which states that similar set of goods and services produced in various countries should have equal price is classified as |
| A. | aw of similar mortgage rate |
| B. | aw of one type manufacturing |
| C. | aw of similar labour rules |
| D. | aw of one price |
| Answer» E. | |
| 20. |
Theory according to which difference between expected appreciation and foreign interest must be equal to domestic interest rate is called |
| A. | nterest rate parity theorem |
| B. | ppreciation parity theorem |
| C. | omestic parity theorem |
| D. | oreign interest parity theorem |
| Answer» B. ppreciation parity theorem | |
| 21. |
Position which came in to existence because of holding assets less than liabilities is considered as |
| A. | et surplus in assets |
| B. | et surplus in liabilities |
| C. | et long in currency |
| D. | et short in currency |
| Answer» E. | |
| 22. |
Interest rate that investors receive on financial security to calculate fair value of security is classified as |
| A. | orward rate of return |
| B. | nturned rate of return |
| C. | equired rate of return |
| D. | ermed rate of return |
| Answer» D. ermed rate of return | |
| 23. |
In zero coupon bonds, impact of lower duration on maturity is that |
| A. | aturity will be higher |
| B. | aturity will be lower |
| C. | aturity will be zero |
| D. | aturity will be elastic |
| Answer» B. aturity will be lower | |
| 24. |
Bonds that does not pay any interest rate are considered as |
| A. | nterest free bond |
| B. | ero coupon bond |
| C. | rice less coupon bond |
| D. | seless price bonds |
| Answer» C. rice less coupon bond | |
| 25. |
Inflation rate in United States is added into real rate of interest to calculate |
| A. | uoted interest rate in United States |
| B. | ominal interest rate in United States |
| C. | nterest rate in United States |
| D. | iscount rate of country |
| Answer» D. iscount rate of country | |
| 26. |
Theory which considers change in exchange rate with fluctuations in inflation rates is classified as |
| A. | iquidated power parity |
| B. | urchasing power parity |
| C. | elling power parity |
| D. | olatile power parity |
| Answer» C. elling power parity | |
| 27. |
In United States, JPMorgan Chase is considered as |
| A. | argest foreign exchange trading |
| B. | maller foreign exchange trading |
| C. | argest bond holder |
| D. | maller bond holder |
| Answer» B. maller foreign exchange trading | |
| 28. |
Loan which is made available for businesses or individuals to buy land, home or other property is classified as |
| A. | econdary loan |
| B. | rimary loan |
| C. | ortgages |
| D. | wapped mortgages |
| Answer» D. wapped mortgages | |
| 29. |
Ownership of mortgaged property will be transferred to financial institution if |
| A. | orrower defaults |
| B. | orrower does not default |
| C. | orrower want less rate |
| D. | orrower want profit |
| Answer» B. orrower does not default | |
| 30. |
Primary mortgages involves |
| A. | hree institutions |
| B. | ingle investor |
| C. | ultiple investor |
| D. | ultiple institutions |
| Answer» C. ultiple investor | |
| 31. |
Global bond market consists of all bonds sold by issued companies, governments, or other firms |
| A. | ithin their own countries |
| B. | utside their own countries |
| C. | o London banks |
| D. | o developing nations only |
| Answer» C. o London banks | |
| 32. |
Factor proceeds are part of which section of balance of payments |
| A. | iabilities |
| B. | urrent account |
| C. | alance of trade |
| D. | oth a & b |
| Answer» C. alance of trade | |
| 33. |
Features of international business that a organization may be exposed to |
| A. | xchange rates |
| B. | oreign economic conditions |
| C. | olitical risk |
| D. | ll of answers are correct |
| Answer» E. | |
| 34. |
Choice of financial managing can be split down into choices of |
| A. | inancing and investment |
| B. | nvestment, financing, and asset management |
| C. | inancing and dividend |
| D. | apital budgeting, cash management, and credit management |
| Answer» C. inancing and dividend | |
| 35. |
Expected worth is the |
| A. | nverse of standard deviation |
| B. | orrelation between a security |
| C. | ame as discrete probability distribution |
| D. | eighted average of all possible outcomes |
| Answer» E. | |
| 36. |
Which of following is not a type of direct foreign investment? |
| A. | ranchising |
| B. | nternational trade |
| C. | oint ventures |
| D. | cquisitions of existing operations |
| Answer» C. oint ventures | |
| 37. |
Most favourable portfolio is proficient portfolio with the |
| A. | owest risk |
| B. | ighest risk |
| C. | ighest utility |
| D. | east investment |
| Answer» D. east investment | |
| 38. |
Political constancy is chief aspect concerning |
| A. | xchange risk |
| B. | ystematic risk |
| C. | on-systematic risk |
| D. | ountry risk |
| Answer» E. | |
| 39. |
Distinction between overall exports and imports is related to |
| A. | actor income |
| B. | ransfer Payments |
| C. | alance of trade |
| D. | ccount balance |
| Answer» D. ccount balance | |
| 40. |
Standard deviation determine |
| A. | ystematic risk of a security |
| B. | nsystematic risk of security |
| C. | otal risk of security |
| D. | remium of security |
| Answer» D. remium of security | |
| 41. |
Chief cause that market worth of organization might raise in reaction to privatization is expected |
| A. | mprovements in financial performance |
| B. | mprovement in profits |
| C. | mprovements in exports |
| D. | mprovement in managerial efficiency |
| Answer» E. | |
| 42. |
Current Account in BOP characterize summary of stream of funds between particular country and all other country due to |
| A. | ale of assets |
| B. | urchase of goods and services |
| C. | iabilities of long term |
| D. | iabilities of short term |
| Answer» C. iabilities of long term | |
| 43. |
Investors take political hazard as |
| A. | ncouraged |
| B. | iscouraged |
| C. | ttracted |
| D. | ake them happy |
| Answer» C. ttracted | |
| 44. |
Which of following is not a means in which agency troubles can be lessen through corporate rule? |
| A. | xecutive compensation |
| B. | hreat of hostile takeover |
| C. | cquisition of a foreign subsidiary |
| D. | onitoring by large shareholders |
| Answer» D. onitoring by large shareholders | |
| 45. |
We multiply foreign revenue with rate with respect to that country is |
| A. | orward rate |
| B. | pot rate |
| C. | ash Flows |
| D. | ortfolio Investment |
| Answer» C. ash Flows | |
| 46. |
Aim of MNC is to boost accounting profitability by shifting funds around the |
| A. | ountry |
| B. | egion |
| C. | orld |
| D. | arket |
| Answer» D. arket | |
| 47. |
Which of following is not a cause for global investment? |
| A. | o gain access to important raw materials. |
| B. | o produce products and/or services more efficiently than possible domestically. |
| C. | o provide an expected risk-adjusted return in excess of that required. |
| D. | nternational investments have less political risk than domestic investments. |
| Answer» E. | |
| 48. |
Most unsafe mode by which firms perform worldwide business is |
| A. | icensing |
| B. | ranchising |
| C. | nternational Trade |
| D. | he establishment of new subsidiaries |
| Answer» E. | |
| 49. |
Asset allocation is procedure of scattering your assets between numerous different kinds of investments to |
| A. | ighest risk |
| B. | oderate risk |
| C. | essen risk |
| D. | o risk |
| Answer» D. o risk | |
| 50. |
A closed-end fund is a mutual fund in which shares issue just when fund is |
| A. | rganized |
| B. | norganized |
| C. | opied |
| D. | andom behaviour showing |
| Answer» B. norganized | |