MCQOPTIONS
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MCQOPTIONS
This section includes 91 Mcqs, each offering curated multiple-choice questions to sharpen your Financial Management/Financial Markets knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
The repurchase price is $380, selling price is $310 and the number of days till maturity are 4 then yield of repurchase agreement is 2500 |
| A. | 0.0958 |
| B. | 0.1158 |
| C. | 0.1658 |
| D. | 0.1258 |
| Answer» D. 0.1258 | |
| 52. |
The mortgages used to purchase the 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 | |
| 53. |
The most flexible and liquid source of funding for savings banks is |
| A. | annual loan market |
| B. | federal funds market |
| C. | functional funding market |
| D. | secured funding market |
| Answer» C. functional funding market | |
| 54. |
The retail certificate of deposits which are not traded have face value of |
| A. | 250000 |
| B. | 100000 |
| C. | 150000 |
| D. | 200000 |
| Answer» C. 150000 | |
| 55. |
The promissory notes issued by company for short term fund raising are unsecured are classified as |
| A. | unsecured notes |
| B. | debt paper |
| C. | term paper |
| D. | commercial paper |
| Answer» E. | |
| 56. |
The 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 | |
| 57. |
The financial instrument which is used to raise funds for working capital is considered as |
| A. | commercial paper |
| B. | commercial notes |
| C. | notes payable |
| D. | notes receivable |
| Answer» B. commercial notes | |
| 58. |
The bids of bidder which tells that how much treasury bills bidder wants to buy is classified as |
| A. | federal acceptance bid |
| B. | bankers? acceptance bid |
| C. | non-competitive bids |
| D. | competitive bids |
| Answer» D. competitive bids | |
| 59. |
The accounting entry of the institutions who lend federal funds to other institutions is posted as |
| A. | liability on balance sheet |
| B. | assets on balance sheet |
| C. | income in income statement |
| D. | expense on income statement |
| Answer» C. income in income statement | |
| 60. |
In the Eurodollar market, the increase in demand of Euro dollars result in |
| A. | increase in LIBOR |
| B. | decrease in LIBOR |
| C. | increase in KIBOR |
| D. | decrease in KIBOR |
| Answer» B. decrease in LIBOR | |
| 61. |
For a particular security transaction, the agreement is 'repo' with the point of view of |
| A. | security seller |
| B. | security buyer |
| C. | security function |
| D. | security function |
| Answer» B. security buyer | |
| 62. |
The non-competitive bidding of treasury bills also allow participation of |
| A. | secured investors |
| B. | federal investors |
| C. | small investors |
| D. | large investors |
| Answer» D. large investors | |
| 63. |
The federal funds are loans borrowed and lent on |
| A. | single payment basis |
| B. | monthly payment basis |
| C. | semiannual payment basis |
| D. | annual payment basis |
| Answer» B. monthly payment basis | |
| 64. |
The Federal Reserve decreases the money supply by |
| A. | selling Swiss bills |
| B. | buying Swiss bills |
| C. | selling treasury bills |
| D. | buying treasury bills |
| Answer» D. buying treasury bills | |
| 65. |
The bidder who can receive the allocation of treasury bills before all other bidders is the result of |
| A. | highest bidder |
| B. | lower bidder |
| C. | zero bidder |
| D. | non-competitive bidder |
| Answer» B. lower bidder | |
| 66. |
If the 180 days T-bill have the maturity of one year with the value of $9250 and face value is $10000 then reported discount yield is |
| A. | 0.2 |
| B. | 0.13 |
| C. | 0.14 |
| D. | 0.15 |
| Answer» E. | |
| 67. |
The investors held commercial papers generally from |
| A. | issuance to maturity |
| B. | within 1 to 2 days |
| C. | within 3 to 4 days |
| D. | within 4 to 5 days |
| Answer» B. within 1 to 2 days | |
| 68. |
The selling price is added in to repurchase agreement paid interest to calculate |
| A. | direct price of security |
| B. | repurchase price of securities |
| C. | purchase price of security |
| D. | transaction price of security |
| Answer» C. purchase price of security | |
| 69. |
The obligations that are issued by US governments and are obligated for short term, are classified as |
| A. | bankers treasury |
| B. | treasury bills |
| C. | treasury funds |
| D. | secured treasury |
| Answer» C. treasury funds | |
| 70. |
For a particular security transaction, the agreement is classified as 'reverse repo' with the point of view of |
| A. | security liability |
| B. | security buyer |
| C. | security seller |
| D. | security function |
| Answer» C. security seller | |
| 71. |
The Federal Reserve increases the money supply by |
| A. | selling treasury bills |
| B. | buying treasury bills |
| C. | selling Swiss bills |
| D. | buying Swiss bills |
| Answer» C. selling Swiss bills | |
| 72. |
The drafts which are backed up by banks and are payable to seller of products or services are classified as |
| A. | banker acceptance |
| B. | secured acceptance |
| C. | unsecured acceptance |
| D. | economic acceptance |
| Answer» B. secured acceptance | |
| 73. |
The forgone amount for holding the balances of cash at the time they are received is classified as |
| A. | forgone cost |
| B. | debt cost |
| C. | opportunity cost |
| D. | balances cost |
| Answer» D. balances cost | |
| 74. |
The overnight loans transaction are part of trading of |
| A. | extensive funds |
| B. | federal funds |
| C. | intensive funds |
| D. | premium funds |
| Answer» C. intensive funds | |
| 75. |
The rate which is used in major banks in United States as a rate for industrial and commercial loans is |
| A. | London intra bank offered rate |
| B. | London interbank offered rate |
| C. | euro interbank offered rate |
| D. | demand intra bank rate |
| Answer» C. euro interbank offered rate | |
| 76. |
The ownership of mortgaged property will be transferred to financial institution if the |
| A. | borrower defaults |
| B. | borrower does not default |
| C. | borrower want less rate |
| D. | borrower want profit |
| Answer» B. borrower does not default | |
| 77. |
The rates of certificate of deposits are mostly negotiated between |
| A. | bank and COD buyer |
| B. | bank and stock market |
| C. | stock market and COD buyer |
| D. | indirect negotiations of buyers |
| Answer» B. bank and stock market | |
| 78. |
The type of market in which Eurodollar are traded is classified as |
| A. | brokerage market |
| B. | contraction market |
| C. | expansion market |
| D. | Eurodollar market |
| Answer» E. | |
| 79. |
The commercial mortgages, farm mortgages and home mortgages are categories of |
| A. | swapped mortgages |
| B. | sovereign mortgages |
| C. | secondary mortgages |
| D. | primary mortgagees |
| Answer» E. | |
| 80. |
The type of instrument whoever holds it, gets the interest and principal amount is classified as |
| A. | term instrument |
| B. | interim instrument |
| C. | primary instrument |
| D. | bearer instrument |
| Answer» E. | |
| 81. |
The difference between purchase price of treasury bills and the face value of treasury bills is considered as |
| A. | premium |
| B. | discount |
| C. | return |
| D. | mean value |
| Answer» D. mean value | |
| 82. |
Financial panic that produce large losses for public can cause |
| A. | serious damage to economy |
| B. | problems for investors |
| C. | pulling of funds |
| D. | soundness of institutes |
| Answer» B. problems for investors | |
| 83. |
The type of bidding in which the bids are met before the allocation of competitive bidders is considered as |
| A. | firstly basis |
| B. | preferential basis |
| C. | federal basis |
| D. | last basis |
| Answer» C. federal basis | |
| 84. |
The short term promissory notes are unsecured and not collateralized against securities, hence it is classified as |
| A. | notes payable |
| B. | notes receivable |
| C. | commercial paper |
| D. | commercial notes |
| Answer» D. commercial notes | |
| 85. |
In the Eurodollar market, the decrease in demand of Euro dollars results in |
| A. | increase in KIBOR |
| B. | decrease in KIBOR |
| C. | decrease in federal funds rate |
| D. | increase in federal funds rate |
| Answer» D. increase in federal funds rate | |
| 86. |
The mortgages used to purchase the shopping malls and office buildings are classified as |
| A. | developed mortgages |
| B. | dwelling mortgages |
| C. | commercial mortgages |
| D. | non-commercial mortgages |
| Answer» D. non-commercial mortgages | |
| 87. |
The maximum maturity days of holding commercial paper are |
| A. | 170 days |
| B. | 270 days |
| C. | 120 days |
| D. | 5 days |
| Answer» C. 120 days | |
| 88. |
The liquidity status of certificate of deposit which is more negotiable is considered as |
| A. | certified liquidity |
| B. | term liquidity |
| C. | more liquid |
| D. | less liquid |
| Answer» D. less liquid | |
| 89. |
In borrowing and lending of federal funds, the 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 | |
| 90. |
The commercial paper issued with low interest rate thus the commercial paper are categorized as |
| A. | payables rating |
| B. | commercial rating |
| C. | poor credit rating |
| D. | better credit rating |
| Answer» E. | |
| 91. |
The demand for heavy loans can cause |
| A. | excess funds for banks |
| B. | deficiencies for banks |
| C. | organized reservation |
| D. | competitive reservations |
| Answer» C. organized reservation | |