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. |
_ In zero coupon bonds, increase in duration with respect to maturity must be at$? |
| A. | decreasing rate |
| B. | increasing rate |
| C. | alarming rate |
| D. | inelastic rate |
| Answer» B. increasing rate | |
| 2. |
_ Theory which considers change in exchange rate with fluctuations in inflation rates is classified as$? |
| A. | liquidated power parity |
| B. | purchasing power parity |
| C. | selling power parity |
| D. | volatile power parity |
| Answer» C. selling power parity | |
| 3. |
_ Theory according to which difference between expected appreciation and foreign interest must be equal to domestic interest rate is called$? |
| A. | interest rate parity theorem |
| B. | appreciation parity theorem |
| C. | domestic parity theorem |
| D. | foreign interest parity theorem |
| Answer» B. appreciation parity theorem | |
| 4. |
_ More instability in currency is called as$? |
| A. | country risk |
| B. | financial risk |
| C. | currency risk |
| D. | liquidity risk |
| Answer» D. liquidity risk | |
| 5. |
_ Ownership of mortgaged property will be transferred to financial institution if$? |
| A. | borrower defaults |
| B. | borrower does not default |
| C. | borrower want less rate |
| D. | borrower want profit |
| Answer» B. borrower does not default | |
| 6. |
_ In zero coupon bonds, impact of lower duration on maturity is that$? |
| A. | maturity will be higher |
| B. | maturity will be lower |
| C. | maturity will be zero |
| D. | maturity will be elastic |
| Answer» B. maturity will be lower | |
| 7. |
_ Simplicity with which bondholders and shareholders can change their investments into cash is known$? |
| A. | barter |
| B. | hedging |
| C. | arbitrage |
| D. | liquidity |
| Answer» E. | |
| 8. |
_ Today, important factor that result in augmentation in international bond market is$? |
| A. | low interest rates |
| B. | high interest rates |
| C. | moderate interest rates |
| D. | all of above |
| Answer» B. high interest rates | |
| 9. |
_ A firm that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled$? |
| A. | a wholesaler |
| B. | a broker |
| C. | a bank |
| D. | an investor |
| Answer» C. a bank | |
| 10. |
_ Gold standard introduced in$? |
| A. | 1913 |
| B. | 1990 |
| C. | 1876 |
| D. | 1944 |
| Answer» D. 1944 | |
| 11. |
_ Which of following causes do investors employ foreign exchange market$? |
| A. | currency hedging |
| B. | currency speculation |
| C. | currency conversion |
| D. | all of above |
| Answer» E. | |
| 12. |
_ Type of bonds that pay coupon interest are classified as$? |
| A. | forward bond |
| B. | payment bonds |
| C. | coupon bond |
| D. | interest bonds |
| Answer» D. interest bonds | |
| 13. |
__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. | value weighted index |
| B. | herring weighted index |
| C. | primary market index |
| D. | stock market index |
| Answer» B. herring weighted index | |
| 14. |
__Structural Adjustment Lending boosts country's__ |
| A. | short term economic growth |
| B. | long-term economic growth |
| C. | short term financing |
| D. | long-term financing |
| Answer» C. short term financing | |
| 15. |
__Non-systematic risk is furthermore identified as__ |
| A. | no diversifiable risk |
| B. | market risk |
| C. | random risk |
| D. | company specific risk |
| Answer» E. | |
| 16. |
__Nations that have major economic expansion attract__ |
| A. | Imports |
| B. | Direct Foreign Investment |
| C. | Exports |
| D. | Privatization |
| Answer» C. Exports | |
| 17. |
__Ask quote is for__ |
| A. | seller |
| B. | buyer |
| C. | hedger |
| D. | speculator |
| Answer» B. buyer | |
| 18. |
__Risk which arises all activities from contingent liabilities and assets is considered as__ |
| A. | off balance sheet risk |
| B. | income statement risk |
| C. | balance of trade risk |
| D. | balance of payment risk |
| Answer» B. income statement risk | |
| 19. |
__Money market where securities are issued by governments to obtain funds for short term is classified as__ |
| A. | money market instruments |
| B. | capital market instruments |
| C. | counter instruments |
| D. | long term instruments |
| Answer» B. capital market instruments | |
| 20. |
__Institutions classified as depository ones and have loans as their major assets are classified as__ |
| A. | commercial banks |
| B. | commercial mortgages |
| C. | credit mortgages |
| D. | credit derivative |
| Answer» B. commercial mortgages | |
| 21. |
__In money markets, excess supply of funds from agents is for__ |
| A. | past terms |
| B. | future terms |
| C. | long term |
| D. | short term |
| Answer» E. | |
| 22. |
__Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as__ |
| A. | insolvency risk |
| B. | solvency risk |
| C. | balanced risk |
| D. | unbalanced risk |
| Answer» B. solvency risk | |
| 23. |
__The area where the goods are permitted to be imported and re-exported without any processing in the same form is called__ |
| A. | Export Processing Zone |
| B. | Free Trade Zone |
| C. | Special Economic Zone |
| D. | Agri Export Zone |
| Answer» E. | |
| 24. |
__The current account of balance of payments includes__ |
| A. | Unilateral payments |
| B. | Portfolio investments |
| C. | Short term borrowings |
| D. | Long term borrowings |
| Answer» C. Short term borrowings | |
| 25. |
__Money received for purchase of shares in Indian company by a foreign investor will be treated as foreign direct investment if__ |
| A. | The investment is in equity shares |
| B. | The shares are allotted directly to him by the company |
| C. | The investor has an intention to take active role in the management of the company |
| D. | The shares are acquired other than through stock exchange |
| Answer» E. | |
| 26. |
__A depository receipt__ |
| A. | is a non-negotiable instrument |
| B. | represents shares issued in local currency |
| C. | is issued by custodian |
| D. | is issued for safe custody of articles |
| Answer» C. is issued by custodian | |
| 27. |
__Bill of Lading is issued by the:__ |
| A. | captain of the vessel |
| B. | shipping company |
| C. | customs authorities |
| D. | consignor |
| Answer» C. customs authorities | |
| 28. |
__Under the original scheme IMF, a member country had to obtain the permission of IMF for__ |
| A. | any devaluation of its currency |
| B. | any devaluation or revaluation of its currency |
| C. | devaluation of its currency at a time exceeding 10% |
| D. | devaluation of its currency exceeding cumulatively 10% |
| Answer» B. any devaluation or revaluation of its currency | |
| 29. |
__IMF augments its resources by borrowing under__ |
| A. | General arrangements to borrow |
| B. | New arrangements to borrow |
| C. | Trust funds |
| D. | All the above |
| Answer» E. | |
| 30. |
__Financial products of IFC does not include__ |
| A. | loans |
| B. | equity participation |
| C. | risk management products |
| D. | none of the above |
| Answer» E. | |
| 31. |
__Type of option that can be exercised before date of expiration as well as on expiry date is classified as__ |
| A. | Australian option |
| B. | American option |
| C. | European option |
| D. | Canadian option |
| Answer» C. European option | |
| 32. |
__Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as__ |
| A. | professional traders |
| B. | non-investment traders |
| C. | position traders |
| D. | future market traders |
| Answer» D. future market traders | |
| 33. |
__Consider buying call option, if price of stock falls then buyer of call option has__ |
| A. | high potential of profit |
| B. | low potential of profit |
| C. | low potential of losses |
| D. | high potential of losses |
| Answer» E. | |
| 34. |
__Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called__ |
| A. | news efficiency |
| B. | adjusted efficiency |
| C. | expected efficiency |
| D. | market efficiency |
| Answer» E. | |
| 35. |
__If stock price of call option is $300 and exercise price of call option is $260 then intrinsic value of option is__ |
| A. | $260.00 |
| B. | $560 |
| C. | $40 |
| D. | $300 |
| Answer» D. $300 | |
| 36. |
__Foreign currency exposures can be avoided by__ |
| A. | Entering into forward contracts |
| B. | Denominating the transaction in domestic currency |
| C. | Exposure netting |
| D. | Maintaining foreign currency accounts |
| Answer» C. Exposure netting | |
| 37. |
__Preferred stock is considered as hybrid security because it includes__ |
| A. | representation of ownership interest |
| B. | fixed periodic payment |
| C. | higher liquidity |
| D. | both a and b |
| Answer» E. | |
| 38. |
__Markets in which derivatives are traded are classified as__ |
| A. | assets backed market |
| B. | cash flow backed markets |
| C. | mortgage backed markets |
| D. | derivative securities markets |
| Answer» E. | |
| 39. |
__When price of underlying asset increases then good option is__ |
| A. | buy call option |
| B. | sell call option |
| C. | buy put option |
| D. | sell put option |
| Answer» B. sell call option | |
| 40. |
__To create situation with no shortage of funds, relationship between funds supplied and funds demanded must have__ |
| A. | Two way relationship |
| B. | One way relationship |
| C. | direct relationship |
| D. | inverse relationship |
| Answer» E. | |
| 41. |
__Shift of demand curve to down and to left then there must be__ |
| A. | support from World Bank |
| B. | decreases in funds traded |
| C. | increase in funds traded |
| D. | rise of international funds |
| Answer» C. increase in funds traded | |
| 42. |
__Loans for cars and home appliances is classified as loans for__ |
| A. | durable goods |
| B. | non-durable goods |
| C. | equilibrium goods |
| D. | non-equilibrium goods |
| Answer» B. non-durable goods | |
| 43. |
__If equilibrium interest rate decreases with respect to decrease in interest rate, then movement along supply of funds curve is__ |
| A. | upside movement |
| B. | downside movement |
| C. | shift left |
| D. | shift right |
| Answer» C. shift left | |
| 44. |
__Expected rate that originates at any point in future for a specific security is classified as__ |
| A. | forward rate |
| B. | backward rate |
| C. | termed rate |
| D. | structured rate |
| Answer» B. backward rate | |
| 45. |
_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. $7,000 | |
| 46. |
_Type of exchange members who place buying and selling from public are classified as$? |
| A. | floor broker |
| B. | roof broker |
| C. | broker of auction |
| D. | leverage investment broker |
| Answer» B. roof broker | |
| 47. |
_Capital gain is 9% and return to stockholder is 18% then periodic payments of dividends are$? |
| A. | 18.00% |
| B. | 27.00% |
| C. | 25.00% |
| D. | 9.00% |
| Answer» E. | |
| 48. |
_Orders that are transacted at best available price are classified as$? |
| A. | post order |
| B. | transacted order |
| C. | market order |
| D. | available order |
| Answer» D. available order | |
| 49. |
_Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as$? |
| A. | non-cumulative preferred stock |
| B. | cumulative preferred stock |
| C. | non-participating preferred stock |
| D. | participating preferred stock |
| Answer» D. participating preferred stock | |
| 50. |
_Price which is paid by bidders and is accepted by all other bidders is classified as$? |
| A. | highest price |
| B. | lowest price |
| C. | zero price |
| D. | peak price |
| Answer» C. zero price | |