MGT411 - Money and Banking ONLINE QUIZ
Wednesday, June 17, 2009 Posted In MGT Edit This
Quiz Start Time: 07:13 PM Time Left 72
sec(s)
Question # 1 of 20 ( Start time: 07:13:59 PM ) Total Marks: 1
Financial instruments are evolved just as ____________.
Select correct option:
Currency
Stock
Bond
Commodity
Quiz Start Time: 07:13 PM Time Left 69
sec(s)
Question # 2 of 20 ( Start time: 07:14:21 PM ) Total Marks: 1
The____________ are an assessment of the creditworthiness of the corporate issuer.
Select correct option:
Bond yield
Bond ratings
Bond risk
Bond price
uiz Start Time: 07:13 PM Time Left 86
sec(s)
Question # 3 of 20 ( Start time: 07:14:53 PM ) Total Marks: 1
The risk premium of a bond will:
Select correct option:
Higher for investment-grade bonds than for high-yield bonds
Positive but small if the risk of default is zero
Decrease when the default risk rises
Increase when the risk of default rises
Quiz Start Time: 07:13 PM Time Left 56
sec(s)
Question # 5 of 20 ( Start time: 07:16:30 PM ) Total Marks: 1
One argument for an independent central bank is:
Select correct option:
Without independence competent people would not take a position in a central bank
Successful monetary policy requires a long time horizon usually well beyond the next election of most public officials
Politicians have a long-run focus that is not well tuned to addressing economic problems
Central bankers have a short run focus that usually corrects problems faster
Quiz Start Time: 07:13 PM Time Left 80
sec(s)
Question # 6 of 20 ( Start time: 07:17:08 PM ) Total Marks: 1
We need __________ to carry out day to day transactions.
Select correct option:
Money
Bonds
Stocks
Loans
Quiz Start Time: 07:13 PM Time Left 75
sec(s)
Question # 7 of 20 ( Start time: 07:17:29 PM ) Total Marks: 1
If information in a financial market is asymmetric, this means:
Select correct option:
Borrowers and lenders have perfect information
Borrowers would have more information than lenders
Borrowers and lenders have the same information
Lenders lack any information
Quiz Start Time: 07:13 PM Time Left 81
sec(s)
Question # 8 of 20 ( Start time: 07:17:58 PM ) Total Marks: 1
If YTM equals the coupon rate the price of the bond is __________.
Select correct option:
Greater than its face value
Lower than its face value
Equals to its face value
Insufficient information
Quiz Start Time: 07:13 PM Time Left 68
sec(s)
Question # 9 of 20 ( Start time: 07:18:26 PM ) Total Marks: 1
An increase in the expected inflation shifts the bond demand to the _________.
Select correct option:
Right
Left
No change
All of the given options
Quiz Start Time: 07:13 PM Time Left 84
sec(s)
Question # 10 of 20 ( Start time: 07:18:51 PM ) Total Marks: 1
Requiring a large deductible on the part of an insured is one way insurers treat the problem of:
Select correct option:
Free-riding
Moral hazard
Adverse selection
The Lemons market
Quiz Start Time: 07:13 PM Time Left 81
sec(s)
Question # 11 of 20 ( Start time: 07:19:29 PM ) Total Marks: 1
Mark borrows $8,000 and then repays $8,600 to ABC bank. What is the amount of interest in this payment?
Select correct option:
$600
$500
$400
$100
Quiz Start Time: 07:13 PM Time Left 84
sec(s)
Question # 12 of 20 ( Start time: 07:19:52 PM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Quiz Start Time: 07:13 PM Time Left 73
sec(s)
Question # 13 of 20 ( Start time: 07:20:07 PM ) Total Marks: 1
The default premium:
Select correct option:
Is positive for a U.S. Treasury bond
Must always be less than 0 (zero)
Is also known as the risk spread
Is assigned by a bond rating agency
Quiz Start Time: 07:13 PM Time Left 85
sec(s)
Question # 15 of 20 ( Start time: 07:22:30 PM ) Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:
Coupon rate
Yield to maturity
Current yield
Internal rate of return
Quiz Start Time: 07:13 PM Time Left 74
sec(s)
Question # 16 of 20 ( Start time: 07:22:47 PM ) Total Marks: 1
The Fed lacks complete control over the money supply because it cannot perfectly predict:
Select correct option:
Discount borrowing by the banks
Shifts from deposits to currency
Excess reserves held by banks
Any of the above
Quiz Start Time: 07:13 PM Time Left 32
sec(s)
Question # 17 of 20 ( Start time: 07:23:38 PM ) Total Marks: 1
___________ is the strategy of reducing overall risk by making two investments with opposing risks.
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Quiz Start Time: 07:13 PM Time Left 63
sec(s)
Question # 18 of 20 ( Start time: 07:24:39 PM ) Total Marks: 1
An index number is a valuable tool because:
Select correct option:
The number by itself provides all of the useful information needed
The index provides a meaningful measurement scale to calculate percentage changes
The index is more stable than the data it reflects
It does not require any calculations to compute percentage changes
sec(s)
Question # 1 of 20 ( Start time: 07:13:59 PM ) Total Marks: 1
Financial instruments are evolved just as ____________.
Select correct option:
Currency
Stock
Bond
Commodity
Quiz Start Time: 07:13 PM Time Left 69
sec(s)
Question # 2 of 20 ( Start time: 07:14:21 PM ) Total Marks: 1
The____________ are an assessment of the creditworthiness of the corporate issuer.
Select correct option:
Bond yield
Bond ratings
Bond risk
Bond price
uiz Start Time: 07:13 PM Time Left 86
sec(s)
Question # 3 of 20 ( Start time: 07:14:53 PM ) Total Marks: 1
The risk premium of a bond will:
Select correct option:
Higher for investment-grade bonds than for high-yield bonds
Positive but small if the risk of default is zero
Decrease when the default risk rises
Increase when the risk of default rises
Quiz Start Time: 07:13 PM Time Left 56
sec(s)
Question # 5 of 20 ( Start time: 07:16:30 PM ) Total Marks: 1
One argument for an independent central bank is:
Select correct option:
Without independence competent people would not take a position in a central bank
Successful monetary policy requires a long time horizon usually well beyond the next election of most public officials
Politicians have a long-run focus that is not well tuned to addressing economic problems
Central bankers have a short run focus that usually corrects problems faster
Quiz Start Time: 07:13 PM Time Left 80
sec(s)
Question # 6 of 20 ( Start time: 07:17:08 PM ) Total Marks: 1
We need __________ to carry out day to day transactions.
Select correct option:
Money
Bonds
Stocks
Loans
Quiz Start Time: 07:13 PM Time Left 75
sec(s)
Question # 7 of 20 ( Start time: 07:17:29 PM ) Total Marks: 1
If information in a financial market is asymmetric, this means:
Select correct option:
Borrowers and lenders have perfect information
Borrowers would have more information than lenders
Borrowers and lenders have the same information
Lenders lack any information
Quiz Start Time: 07:13 PM Time Left 81
sec(s)
Question # 8 of 20 ( Start time: 07:17:58 PM ) Total Marks: 1
If YTM equals the coupon rate the price of the bond is __________.
Select correct option:
Greater than its face value
Lower than its face value
Equals to its face value
Insufficient information
Quiz Start Time: 07:13 PM Time Left 68
sec(s)
Question # 9 of 20 ( Start time: 07:18:26 PM ) Total Marks: 1
An increase in the expected inflation shifts the bond demand to the _________.
Select correct option:
Right
Left
No change
All of the given options
Quiz Start Time: 07:13 PM Time Left 84
sec(s)
Question # 10 of 20 ( Start time: 07:18:51 PM ) Total Marks: 1
Requiring a large deductible on the part of an insured is one way insurers treat the problem of:
Select correct option:
Free-riding
Moral hazard
Adverse selection
The Lemons market
Quiz Start Time: 07:13 PM Time Left 81
sec(s)
Question # 11 of 20 ( Start time: 07:19:29 PM ) Total Marks: 1
Mark borrows $8,000 and then repays $8,600 to ABC bank. What is the amount of interest in this payment?
Select correct option:
$600
$500
$400
$100
Quiz Start Time: 07:13 PM Time Left 84
sec(s)
Question # 12 of 20 ( Start time: 07:19:52 PM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Quiz Start Time: 07:13 PM Time Left 73
sec(s)
Question # 13 of 20 ( Start time: 07:20:07 PM ) Total Marks: 1
The default premium:
Select correct option:
Is positive for a U.S. Treasury bond
Must always be less than 0 (zero)
Is also known as the risk spread
Is assigned by a bond rating agency
Quiz Start Time: 07:13 PM Time Left 85
sec(s)
Question # 15 of 20 ( Start time: 07:22:30 PM ) Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:
Coupon rate
Yield to maturity
Current yield
Internal rate of return
Quiz Start Time: 07:13 PM Time Left 74
sec(s)
Question # 16 of 20 ( Start time: 07:22:47 PM ) Total Marks: 1
The Fed lacks complete control over the money supply because it cannot perfectly predict:
Select correct option:
Discount borrowing by the banks
Shifts from deposits to currency
Excess reserves held by banks
Any of the above
Quiz Start Time: 07:13 PM Time Left 32
sec(s)
Question # 17 of 20 ( Start time: 07:23:38 PM ) Total Marks: 1
___________ is the strategy of reducing overall risk by making two investments with opposing risks.
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Quiz Start Time: 07:13 PM Time Left 63
sec(s)
Question # 18 of 20 ( Start time: 07:24:39 PM ) Total Marks: 1
An index number is a valuable tool because:
Select correct option:
The number by itself provides all of the useful information needed
The index provides a meaningful measurement scale to calculate percentage changes
The index is more stable than the data it reflects
It does not require any calculations to compute percentage changes
