MCQGeeks
0 : 0 : 1
CBSE
JEE
NTSE
NEET
English
UK Quiz
Quiz
Driving Test
Practice
Games
Quiz
Management
International Finance And Treasury
Quiz 11
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Q.1
Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
float-fixed swaps
interest rate swaps
indexed swaps
counter party swaps
Q.2
Preferred stock is considered as hybrid security because it includes
representation of ownership interest
fixed periodic payment
higher liquidity
both a and b
Q.3
Situation in which large portion of majority is borrowed from broker of investor is classified as
future investment
forward investment
leveraged investment
non-leveraged investment
Q.4
Type of voting in which owner having half voting shares can elect board of directors is called
directors voting
half voting
straight voting
owners voting
Q.5
Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called
news efficiency
adjusted efficiency
expected efficiency
market efficiency
Q.6
Form of market efficiency in which stock current prices reflects volume information and historic prices of company is classified as
weak form of market efficiency
strong form of market efficiency
semi-strong form market efficiency
expensive form market efficiency
Q.7
Consider buying put option, if price is lower at expiration date of option then the
liquidity will be higher
loss will be higher
profit will be lower
profit will be higher
Q.8
If stock price of call option is $300 and exercise price of call option is $260 then intrinsic value of option is
$260.00
$560
$40
$300
Q.9
Type of preferred stock whose paid dividends are more than promised dividends is classified as
non cumulative preferred stock
cumulative preferred stock
non participating preferred stock
participating preferred stock
Q.10
Type of voting in which all directors in voting lists are voted at same time is classified as
cumulative voting
non-cumulative voting
dual class voting
limited voting
Q.11
Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as
professional traders
non-investment traders
position traders
future market traders
Q.12
Type of liability in which stockholders losses are counted for only invested amount in firm is classified as
counted liability
invested liability
unlimited liability
limited liability
Q.13
When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has
short-term funds
long-term funds
surplus of funds
deficit of funds
Q.14
If equilibrium interest rate decreases with respect to decrease in interest rate, then movement along supply of funds curve is
upside movement
downside movement
shift left
shift right
Q.15
Plant and equipment are examples of
long term fixed assets
short term fixed assets
short term working capital
long term working capital
Q.16
Stock holder who does not have any voting rights in corporation is considered as
sub class voter
preferred stockholder
common stock holder
cumulative voter
Q.17
Intrinsic value of an option is $490 and price of underlying asset is $290 then exercise price of an option is
$290
$780
$490
$200
Q.18
Underwriter spread of stock is added to net proceeds to calculate value of
over writer spread
Gross proceeds
participation proceeds
non participation proceeds
Q.19
Sum of past deficit of budget if accumulated is considered as
global surplus
national debt
international debt
global debt
Q.20
According to demand for funds curve, demand curve shifts down and to left if there is decrease in
equilibrium supply
equilibrium savings
equilibrium demand
equilibrium interest rate
Q.21
Monetary expansion increases and there is decrease in equilibrium interest rate then supply curve of funds must shift
up and to left
up and to right
down and to left
down and to right
Q.22
If demand of loanable demands decrease then borrowing cost of funds is
upside
lower
higher
zero
Q.23
Liquidity premium theory, unbiased expectations theory and market segmentation theory are theories to describe
term structure of segmentation
term structure of interest rate
term structure of premium
term structure of inflation
Q.24
A swap that is used to evade risk of exchange rate exists because of currency mismatching is classified as
floating swaps
fixed swaps
currency swaps
notion swaps
Q.25
Difference between price of underlying asset and exercise price of option is classified as
extrinsic value of European option
intrinsic value of option
extrinsic value of option
intrinsic value of European option
Q.26
According to futures contract, long position states
purchase of forward contracts
purchase of future contract
sale of futures contract
sales of forward contracts
Q.27
Monetary expansion decreases and there is increase in equilibrium interest rate then supply curve of funds must shift
down and to left
down and to right
up and to left
up and to right
Q.28
Loans for cars and home appliances is classified as loans for
durable goods
non-durable goods
equilibrium goods
non-equilibrium goods
Q.29
When business companies started investing with funds generated internally is a point which shows that
cost of loanable funds is high
cost of loanable fund is low
equilibrium is zero
equilibrium is negative
Q.30
To create situation with no shortage of funds, relationship between funds supplied and funds demanded must have
Two way relationship
One way relationship
direct relationship
inverse relationship
Q.31
Funds demand which is pushed by users of funds in financial markets are classified as
supply of loan-able funds
demand of loan-able funds
compounded funds
savings funds
Q.32
If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is
shift left
shift right
upside movement
downside movement
Q.33
When interest rate is lower than equilibrium rate of borrowing loanable funds then financial system has
surplus of funds
deficit of funds
short-term funds
long-term funds
Q.34
Shift of demand curve to down and to left then there must be
support from World Bank
decreases in funds traded
increase in funds traded
rise of international funds
Q.35
Formula of effective annual return is written as
(1+r) c - 1
(2+r) c - 2
(3+r) c - 3
(1+r) c - 5
Q.36
Decrease in present value at decreasing rate only when
increase in availability
decrease in availability
interest rate decrease
interest rate increases
Q.37
Accounts receivable and inventory are examples of
short term working capital
long term working capital
long term fixed assets
short term fixed assets
Q.38
Capital gains and dividends are considered as components of
return
equity
spot rate contracts
forward rate contracts
Q.39
Prices that are adjusted day to day to picture current conditions of futures markets are classified as
market future prices
market to market prices
market to invest prices
present market prices
Q.40
Interest rate which is not reinvested but is earned is classified as
invested interest
simple interest
earned interest
unstated interest
Q.41
According to loanable funds theory, fall in interest rates results in to
zero demand of funds
equilibrium demands of funds
higher demand of funds
lower demand of funds
Q.42
Intrinsic value of call option is considered as out of money if
bond price > treasury price
treasury price < bond price
stock price > exercise price
stock price < exercise price
Q.43
Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as
characteristics of fundamental stock
characteristics of claimed stock
characteristics of common stock
characteristics of preferred stock
Q.44
Interest rate considering compounding of interest rate and is earned in 12 months is considered as
effective annual return
ineffective annual return
decrease in return
increase in return
Q.45
If equilibrium interest rate increases and curve of funding supplied shifts to left then impact on spending is
increase in near term
decrease in near term
increase in long term
decrease in long term
Q.46
Black Scholes model consider factors which affects an option price and factors are
spot price of asset
exercise price and exercise date of option
price volatility
all of above
Q.47
Total count of all contracts and options such as call, put and futures outstanding at start of working day is classified as
non clearing interest
clearing interest
close interest
open interest
Q.48
Periodic payments of dividends are subtracted from return to stockholders to calculate
gain on spot contract
loss on spot contract
gain on capital
loss on capital
Q.49
When earnings are reinvested instead of payments of dividends then capital gains
must increases
must decreases
must be zero
must be one
Q.50
Consider buying call option, if price of stock rises then buyer of call option has
low potential of losses
high potential of losses
high potential of profit
low potential of profit
0 h : 0 m : 1 s
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Support mcqgeeks.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page