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. |
Market in which currencies buy and sell and their prices settle on is called the%! |
| A. | Eurocurrency market |
| B. | international capital market |
| C. | international bond market |
| D. | foreign exchange market |
| Answer» E. | |
| 2. |
In 1944 international accord is recognized as%! |
| A. | Breton Wood Agreement |
| B. | Exchange Agreement |
| C. | International Trade |
| D. | Fisher Effect |
| Answer» B. Exchange Agreement | |
| 3. |
Eurobonds are admired because%! |
| A. | they are less risky than traditional bonds |
| B. | European companies are considered very stable |
| C. | of absence of government regulation |
| D. | they are always denominated in euro |
| Answer» D. they are always denominated in euro | |
| 4. |
Governments enforce currency limitations to%! |
| A. | protect a currency from speculators |
| B. | keep resident individuals and businesses from investing in other nations |
| C. | preserve hard currencies to finance trade deficits or repay debts |
| D. | all of above |
| Answer» E. | |
| 5. |
A simultaneous purchase and sale of foreign exchange for two different dates%! |
| A. | currency devalue |
| B. | currency swap |
| C. | currency valuation |
| D. | currency exchange |
| Answer» C. currency valuation | |
| 6. |
Risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as%! |
| A. | savings risk |
| B. | advance risk |
| C. | cost risk |
| D. | technology risk |
| Answer» E. | |
| 7. |
When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as%! |
| A. | interest rate risk |
| B. | channel rate risk |
| C. | economic risk |
| D. | issuance risk |
| Answer» B. channel rate risk | |
| 8. |
In financial transactions, risk that there will be no profit in selling of this asset is classified as%! |
| A. | price risk |
| B. | profit risk |
| C. | selling risk |
| D. | financial risk |
| Answer» B. profit risk | |
| 9. |
Exchange rate of foreign currency fluctuate day to day because of%! |
| A. | demand and supply |
| B. | increased maturity |
| C. | decreased maturity |
| D. | instrument availability |
| Answer» B. increased maturity | |
| 10. |
Type of financial security having payoffs which are connected to some securities issued some time back is classified as%! |
| A. | linked security |
| B. | previous security |
| C. | payoff security |
| D. | derivative security |
| Answer» E. | |
| 11. |
Submitted bids in treasury bills auction consists of types which are%! |
| A. | competitive bids |
| B. | non-competitive bids |
| C. | treasury bids |
| D. | both a and b |
| Answer» E. | |
| 12. |
Type of instrument whoever holds it gets interest and principal amount is classified as%! |
| A. | term instrument |
| B. | interim instrument |
| C. | primary instrument |
| D. | bearer instrument |
| Answer» E. | |
| 13. |
Funds transferred usually for a day between financial institutions are classified as%! |
| A. | federal funds |
| B. | bankers |
| C. | debt funds |
| D. | secured funds |
| Answer» B. bankers | |
| 14. |
Treasury bills are issued to raise significant amount of funds by%! |
| A. | US treasury |
| B. | Australian treasury |
| C. | Swiss treasury |
| D. | functional treasury |
| Answer» B. Australian treasury | |
| 15. |
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 | |
| 16. |
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. | |
| 17. |
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 | |
| 18. |
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 | |
| 19. |
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. | |
| 20. |
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 | |
| 21. |
Difference between price of underlying asset and exercise price of option is classified as%! |
| A. | extrinsic value of European option |
| B. | intrinsic value of option |
| C. | extrinsic value of option |
| D. | intrinsic value of European option |
| Answer» C. extrinsic value of option | |
| 22. |
According to futures contract, long position states%! |
| A. | purchase of forward contracts |
| B. | purchase of future contract |
| C. | sale of futures contract |
| D. | sales of forward contracts |
| Answer» C. sale of futures contract | |
| 23. |
Return to stockholders is 15% and periodic dividend payments are 11.5% then gains on capital are%! |
| A. | 2.65% |
| B. | 3.50% |
| C. | 1.30% |
| D. | 4.30% |
| Answer» C. 1.30% | |
| 24. |
Underwriter spread of stock is added to net proceeds to calculate value of%! |
| A. | over writer spread |
| B. | Gross proceeds |
| C. | participation proceeds |
| D. | non participation proceeds |
| Answer» C. participation proceeds | |
| 25. |
Stock holder who does not have any voting rights in corporation is considered as%! |
| A. | sub class voter |
| B. | preferred stockholder |
| C. | common stock holder |
| D. | cumulative voter |
| Answer» C. common stock holder | |
| 26. |
*$_When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as? |
| A. | interest rate risk |
| B. | channel rate risk |
| C. | economic risk |
| D. | issuance risk |
| Answer» B. channel rate risk | |
| 27. |
*$_In financial transactions, risk that there will be no profit in selling of this asset is classified as? |
| A. | price risk |
| B. | profit risk |
| C. | selling risk |
| D. | financial risk |
| Answer» B. profit risk | |
| 28. |
*$_Exchange rate of foreign currency fluctuate day to day because of? |
| A. | demand and supply |
| B. | increased maturity |
| C. | decreased maturity |
| D. | instrument availability |
| Answer» B. increased maturity | |
| 29. |
*$_Type of financial security having payoffs which are connected to some securities issued some time back is classified as? |
| A. | linked security |
| B. | previous security |
| C. | payoff security |
| D. | derivative security |
| Answer» E. | |
| 30. |
*$_Risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as? |
| A. | savings risk |
| B. | advance risk |
| C. | cost risk |
| D. | technology risk |
| Answer» E. | |
| 31. |
*$_The total value of the products and services marketed by a nation is called.? |
| A. | Gross Domestic Product |
| B. | Gross National Product |
| C. | National Income |
| D. | Per capita income |
| Answer» E. | |
| 32. |
*$_The current account of balance of payments does not include? |
| A. | Trade in goods |
| B. | Trade in services |
| C. | Income on investments |
| D. | None of the above |
| Answer» B. Trade in services | |
| 33. |
*$_The apex body of the Foreign Trade is? |
| A. | The Central Government |
| B. | The State Government |
| C. | The Ministry of Commerce |
| D. | All the above |
| Answer» D. All the above | |
| 34. |
*$_How many chapters are there in The Foreign Trade (Development and Regulation Act, 1992?? |
| A. | 5 |
| B. | 4 |
| C. | 6 |
| D. | 7 |
| Answer» D. 7 | |
| 35. |
*$_Reverse Engineering method of Technology Transfer is also called as:? |
| A. | FDI |
| B. | Strategic Alliance |
| C. | Licensing |
| D. | Capital Goods trade |
| Answer» D. Capital Goods trade | |
| 36. |
*$_Pegging the value of a currency can be done by? |
| A. | pegging to a major currency |
| B. | pegging to a basket of currencies |
| C. | pegging to SDR |
| D. | any of the above |
| Answer» E. | |
| 37. |
*$_The abbreviations SDR stands for? |
| A. | Special Drawing Rights |
| B. | Specific Drawing Rights |
| C. | Special Depository Rules |
| D. | Specific Depository Rules |
| Answer» B. Specific Drawing Rights | |
| 38. |
*$_The activities of ADB include? |
| A. | project financing |
| B. | guaranteeing loans |
| C. | both a and b |
| D. | risk management products |
| Answer» D. risk management products | |
| 39. |
*$_Underwriter spread of stock is added to net proceeds to calculate value of? |
| A. | over writer spread |
| B. | Gross proceeds |
| C. | participation proceeds |
| D. | non participation proceeds |
| Answer» C. participation proceeds | |
| 40. |
*$_Return to stockholders is 15% and periodic dividend payments are 11.5% then gains on capital are? |
| A. | 2.65% |
| B. | 3.50% |
| C. | 1.30% |
| D. | 4.30% |
| Answer» C. 1.30% | |
| 41. |
*$_Stock holder who does not have any voting rights in corporation is considered as? |
| A. | sub class voter |
| B. | preferred stockholder |
| C. | common stock holder |
| D. | cumulative voter |
| Answer» C. common stock holder | |
| 42. |
*$_Difference between price of underlying asset and exercise price of option is classified as? |
| A. | extrinsic value of European option |
| B. | intrinsic value of option |
| C. | extrinsic value of option |
| D. | intrinsic value of European option |
| Answer» C. extrinsic value of option | |
| 43. |
*$_According to futures contract, long position states? |
| A. | purchase of forward contracts |
| B. | purchase of future contract |
| C. | sale of futures contract |
| D. | sales of forward contracts |
| Answer» C. sale of futures contract | |
| 44. |
*$_International Financial Corporation established in the year? |
| A. | 1948 |
| B. | 1952 |
| C. | 1962 |
| D. | 1956 |
| Answer» E. | |
| 45. |
*$_A swap that is used to evade risk of exchange rate exists because of currency mismatching is classified as? |
| A. | floating swaps |
| B. | fixed swaps |
| C. | currency swaps |
| D. | notion swaps |
| Answer» D. notion swaps | |
| 46. |
*$_Price of an option is subtracted form time value of option to calculate? |
| A. | book value index |
| B. | market index |
| C. | intrinsic value |
| D. | extrinsic value |
| Answer» D. extrinsic value | |
| 47. |
*$_Consider call option writing, probability that a buyer would have positive payoff increases with the? |
| A. | increase in stock price |
| B. | decrease in stock price |
| C. | increase in maturity duration |
| D. | decrease in maturity duration |
| Answer» C. increase in maturity duration | |
| 48. |
*$_If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is? |
| A. | shift left |
| B. | shift right |
| C. | upside movement |
| D. | downside movement |
| Answer» D. downside movement | |
| 49. |
*$_If equilibrium interest rate increases and curve of funding supplied shifts to left then impact on spending is? |
| A. | increase in near term |
| B. | decrease in near term |
| C. | increase in long term |
| D. | decrease in long term |
| Answer» B. decrease in near term | |
| 50. |
*$_Interest rate considering compounding of interest rate and is earned in 12 months is considered as? |
| A. | effective annual return |
| B. | ineffective annual return |
| C. | decrease in return |
| D. | increase in return |
| Answer» B. ineffective annual return | |