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. |
Longer debt instrument issued by government and corporations is considered as |
| A. | contraction bonds |
| B. | expansion bonds |
| C. | dollar bonds |
| D. | bonds |
| Answer» E. | |
| 2. |
In best efforts offering, price offered by investment banks is originally set by |
| A. | municipality |
| B. | insurance companies |
| C. | negotiable transactions |
| D. | global placement |
| Answer» B. insurance companies | |
| 3. |
Direct relationship between price change and interest rate change is represented by |
| A. | positive duration |
| B. | positive discount |
| C. | negative discount |
| D. | negative duration |
| Answer» B. positive discount | |
| 4. |
Change in interest rate measured in percentage for given interest rate change is classified as |
| A. | premium yield |
| B. | elasticity |
| C. | duration |
| D. | maturity yield |
| Answer» C. duration | |
| 5. |
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 above |
| Answer» E. | |
| 6. |
Services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as |
| A. | trade services |
| B. | investment services |
| C. | agent services |
| D. | commercial services |
| Answer» D. commercial services | |
| 7. |
Mortgages used to purchase townhouses and apartment complexes are classified as |
| A. | multi mortgage |
| B. | multifamily dwelling mortgages |
| C. | sovereign dwelling mortgages |
| D. | primary dwelling mortgages |
| Answer» C. sovereign dwelling mortgages | |
| 8. |
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 | |
| 9. |
Type of bond whose present value is lesser than that of its face value is classified as |
| A. | discount bond |
| B. | premium bond |
| C. | coupon bond |
| D. | interest bonds |
| Answer» B. premium bond | |
| 10. |
Largest number of buyers and sellers, greater the |
| A. | liquidity |
| B. | speculation |
| C. | hedging |
| D. | forward rate |
| Answer» B. speculation | |
| 11. |
If your local currency is in variable form and foreign currency is in fixed form quotation will be: |
| A. | indirect |
| B. | direct |
| C. | local form |
| D. | foreign form |
| Answer» C. local form | |
| 12. |
International capital market |
| A. | innovative financial instruments |
| B. | information technology |
| C. | deregulation |
| D. | foreign exchange rates |
| Answer» E. | |
| 13. |
If a company agreements today for several future date of real currency exchange, they will be building use of a |
| A. | stock rate |
| B. | stock rate |
| C. | futures rate |
| D. | forward rate |
| Answer» E. | |
| 14. |
Bid quote is for |
| A. | seller |
| B. | buyer |
| C. | hedger |
| D. | speculator |
| Answer» C. hedger | |
| 15. |
Particular place at which transactions of New York stock exchange occurs is classified as |
| A. | trading post |
| B. | issuance post |
| C. | silence post |
| D. | sellers post |
| Answer» B. issuance post | |
| 16. |
Intrinsic value of call option is |
| A. | stock price // exercise price |
| B. | stock price - exercise price |
| C. | stock price + exercise price |
| D. | stock price x exercise price |
| Answer» C. stock price + exercise price | |
| 17. |
Numerous European nations accepted Euro as their currency in |
| A. | 1998 |
| B. | 1997 |
| C. | 1999 |
| D. | 1996 |
| Answer» D. 1996 | |
| 18. |
Trustee is a self-governing organization that operates as bondholders |
| A. | partner |
| B. | guardian |
| C. | broker |
| D. | representative |
| Answer» E. | |
| 19. |
The world’s four major trading currencies are all free to float against each other. They include all the following except.# |
| A. | The British Pound |
| B. | The Japanese Yen |
| C. | The Spanish Peso |
| D. | The US Dollar |
| Answer» D. The US Dollar | |