Mgt411 Online Quiz No. 2
Wednesday, November 24, 2010 Posted In MGT Edit This
Question # 1 of 15 ( Start time: 05:25:23 AM ) Total Marks: 1
Which of the following would probably NOT earn an A rating from Standard & Poor's:
Select correct option:
30 years bond issued by the U.S. Treasury
New vegetarian fast-food chain
90 days T-Bills issued by the U.S. Treasury
Both 30 years bond and 90 days T-Bills issued by U.S. Treasury
Question # 2 of 15 ( Start time: 05:25:55 AM ) Total Marks: 1
Time affects the value of which of the following?
Select correct option:
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Question # 3 of 15 ( Start time: 05:26:40 AM ) Total Marks: 1
Current accounts of commercial bank lies in which money aggregate definition?
Select correct option:
Currency
M1
M2
M3
Question # 4 of 15 ( Start time: 05:27:27 AM ) Total Marks: 1
Debt instruments is categorized on the basis of which one of the following?
Select correct option:
Loan maturity period
Interest rates
Mode of payment of interest
Amount of the debt taken
Question # 5 of 15 ( Start time: 05:28:11 AM ) Total Marks: 1
GDP deflator is called
Select correct option:
Retailer price index
Consumer price index
Producer price index
None of above
Question # 6 of 15 ( Start time: 05:28:34 AM ) Total Marks: 1
Sum of all the probabilities should be equal to which one of the following?
Select correct option:
Zero
One
Two
Three
Question # 7 of 15 ( Start time: 05:28:59 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:
Currency
Stock
Bond
Commodity
Question # 8 of 15 ( Start time: 05:29:54 AM ) Total Marks: 1
Which of the following is NOT included in the definition of M1?
Select correct option:
Traveler's checks
Demand deposits
Currency
Gold coins issued by treasury
Question # 9 of 15 ( Start time: 05:30:23 AM ) Total Marks: 1
An increase in the expected inflation shifts the bond supply to the _______.
Select correct option:
Right
Left
No change
All of the given options
Question # 10 of 15 ( Start time: 05:30:54 AM ) Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to ________ the money will be t =72/i%
Select correct option:
Doubles
Triples
halves
3/4
Question # 11 of 15 ( Start time: 05:31:14 AM ) Total Marks: 1
Previously financial markets are located in which of the following?
Select correct option:
Coffee houses or Taverns
Stock exchanges
Bazaar
Coffee houses and Stock exchanges
Question # 12 of 15 ( Start time: 05:31:32 AM ) Total Marks: 1
Financial development measured by
Select correct option:
M1/GDP
M2/GDP
M3/DGP
All of above
Question # 13 of 15 ( Start time: 05:32:02 AM ) Total Marks: 1
A zero coupon bond:
Select correct option:
Does not pay any coupon payments because the issuer is in default
Pays coupons only once a year versus the usual twice a year
Promises a single future payment
Pays coupons only if the bond price is below face value
Question # 14 of 15 ( Start time: 05:32:30 AM ) Total Marks: 1
A risk-averse investor will:
Select correct option:
Always prefer an investment with a lower expected return
Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty
Always require a certain return
Always focus exclusively on the expected return
Question # 15 of 15 ( Start time: 05:33:32 AM ) Total Marks: 1
Which of the following institution take direct deposit from customer and give loan to customer directly?
Select correct option:
Zarai Tarkaytee Bank LTD
Soneri Bank
Khushali Bank
Credit union
Which of the following would probably NOT earn an A rating from Standard & Poor's:
Select correct option:
30 years bond issued by the U.S. Treasury
New vegetarian fast-food chain
90 days T-Bills issued by the U.S. Treasury
Both 30 years bond and 90 days T-Bills issued by U.S. Treasury
Question # 2 of 15 ( Start time: 05:25:55 AM ) Total Marks: 1
Time affects the value of which of the following?
Select correct option:
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Question # 3 of 15 ( Start time: 05:26:40 AM ) Total Marks: 1
Current accounts of commercial bank lies in which money aggregate definition?
Select correct option:
Currency
M1
M2
M3
Question # 4 of 15 ( Start time: 05:27:27 AM ) Total Marks: 1
Debt instruments is categorized on the basis of which one of the following?
Select correct option:
Loan maturity period
Interest rates
Mode of payment of interest
Amount of the debt taken
Question # 5 of 15 ( Start time: 05:28:11 AM ) Total Marks: 1
GDP deflator is called
Select correct option:
Retailer price index
Consumer price index
Producer price index
None of above
Question # 6 of 15 ( Start time: 05:28:34 AM ) Total Marks: 1
Sum of all the probabilities should be equal to which one of the following?
Select correct option:
Zero
One
Two
Three
Question # 7 of 15 ( Start time: 05:28:59 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:
Currency
Stock
Bond
Commodity
Question # 8 of 15 ( Start time: 05:29:54 AM ) Total Marks: 1
Which of the following is NOT included in the definition of M1?
Select correct option:
Traveler's checks
Demand deposits
Currency
Gold coins issued by treasury
Question # 9 of 15 ( Start time: 05:30:23 AM ) Total Marks: 1
An increase in the expected inflation shifts the bond supply to the _______.
Select correct option:
Right
Left
No change
All of the given options
Question # 10 of 15 ( Start time: 05:30:54 AM ) Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to ________ the money will be t =72/i%
Select correct option:
Doubles
Triples
halves
3/4
Question # 11 of 15 ( Start time: 05:31:14 AM ) Total Marks: 1
Previously financial markets are located in which of the following?
Select correct option:
Coffee houses or Taverns
Stock exchanges
Bazaar
Coffee houses and Stock exchanges
Question # 12 of 15 ( Start time: 05:31:32 AM ) Total Marks: 1
Financial development measured by
Select correct option:
M1/GDP
M2/GDP
M3/DGP
All of above
Question # 13 of 15 ( Start time: 05:32:02 AM ) Total Marks: 1
A zero coupon bond:
Select correct option:
Does not pay any coupon payments because the issuer is in default
Pays coupons only once a year versus the usual twice a year
Promises a single future payment
Pays coupons only if the bond price is below face value
Question # 14 of 15 ( Start time: 05:32:30 AM ) Total Marks: 1
A risk-averse investor will:
Select correct option:
Always prefer an investment with a lower expected return
Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty
Always require a certain return
Always focus exclusively on the expected return
Question # 15 of 15 ( Start time: 05:33:32 AM ) Total Marks: 1
Which of the following institution take direct deposit from customer and give loan to customer directly?
Select correct option:
Zarai Tarkaytee Bank LTD
Soneri Bank
Khushali Bank
Credit union
............
Question # 1 of 15 ( Start time: 05:36:19 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:
Currency
Stock
Bond
Commodity
Question # 2 of 15 ( Start time: 05:36:39 AM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
Select correct option:
Stock
Bond
Loan
Cheque
Question # 3 of 15 ( Start time: 05:37:03 AM ) Total Marks: 1
If bond's rating is lower, what will be its price?
Select correct option:
Higher
Lower
Equal to
No change
Question # 4 of 15 ( Start time: 05:37:31 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Question # 5 of 15 ( Start time: 05:37:50 AM ) Total Marks: 1
Debt instruments is categorized on the basis of which one of the following?
Select correct option:
Loan maturity period
Interest rates
Mode of payment of interest
Amount of the debt taken
Question # 6 of 15 ( Start time: 05:38:02 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Question # 7 of 15 ( Start time: 05:38:34 AM ) 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
Question # 8 of 15 ( Start time: 05:38:52 AM ) Total Marks: 1
What is true relationship between return and risk?
Select correct option:
Lower the risk greater the return
Greater the risk greater the return
Greater the risk the return will remain constant
No relationship between them
Question # 9 of 15 ( Start time: 05:39:27 AM ) Total Marks: 1
Which of the following is the least liquid of all?
Select correct option:
Money
Bonds & stocks
Lands & buildings
None of the given options
Question # 10 of 15 ( Start time: 05:39:44 AM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
Select correct option:
Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit
Question # 11 of 15 ( Start time: 05:40:12 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:
Default risk
Inflation risk
Interest rate risk
Systematic risk
Question # 12 of 15 ( Start time: 05:40:43 AM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Question # 13 of 15 ( Start time: 05:41:54 AM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:
M1
M2
M3
None of Above
Question # 14 of 15 ( Start time: 05:42:23 AM ) Total Marks: 1
What is the true relationship that exists between default risk and yield?
Select correct option:
Higher the default risk, higher the yield
Lower the default risk, higher the yield
Higher the default risk yield will remain constant
Lower the default risk yield will remain constant
Question # 15 of 15 ( Start time: 05:42:49 AM ) Total Marks: 1
If YTM is less than 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
All of the given options
Financial instruments are evolved just as __________.
Select correct option:
Currency
Stock
Bond
Commodity
Question # 2 of 15 ( Start time: 05:36:39 AM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
Select correct option:
Stock
Bond
Loan
Cheque
Question # 3 of 15 ( Start time: 05:37:03 AM ) Total Marks: 1
If bond's rating is lower, what will be its price?
Select correct option:
Higher
Lower
Equal to
No change
Question # 4 of 15 ( Start time: 05:37:31 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Question # 5 of 15 ( Start time: 05:37:50 AM ) Total Marks: 1
Debt instruments is categorized on the basis of which one of the following?
Select correct option:
Loan maturity period
Interest rates
Mode of payment of interest
Amount of the debt taken
Question # 6 of 15 ( Start time: 05:38:02 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Question # 7 of 15 ( Start time: 05:38:34 AM ) 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
Question # 8 of 15 ( Start time: 05:38:52 AM ) Total Marks: 1
What is true relationship between return and risk?
Select correct option:
Lower the risk greater the return
Greater the risk greater the return
Greater the risk the return will remain constant
No relationship between them
Question # 9 of 15 ( Start time: 05:39:27 AM ) Total Marks: 1
Which of the following is the least liquid of all?
Select correct option:
Money
Bonds & stocks
Lands & buildings
None of the given options
Question # 10 of 15 ( Start time: 05:39:44 AM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
Select correct option:
Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit
Question # 11 of 15 ( Start time: 05:40:12 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:
Default risk
Inflation risk
Interest rate risk
Systematic risk
Question # 12 of 15 ( Start time: 05:40:43 AM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Question # 13 of 15 ( Start time: 05:41:54 AM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:
M1
M2
M3
None of Above
Question # 14 of 15 ( Start time: 05:42:23 AM ) Total Marks: 1
What is the true relationship that exists between default risk and yield?
Select correct option:
Higher the default risk, higher the yield
Lower the default risk, higher the yield
Higher the default risk yield will remain constant
Lower the default risk yield will remain constant
Question # 15 of 15 ( Start time: 05:42:49 AM ) Total Marks: 1
If YTM is less than 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
All of the given options
..........
Question # 1 of 15 ( Start time: 05:54:15 AM ) Total Marks: 1
Home loans and car loans are the example of which one of the following?
Select correct option:
Mortgage loans
Pledge
Fixed Payment Loans
Ordinary loan
Question # 2 of 15 ( Start time: 05:54:49 AM ) Total Marks: 1
What is the true relationship that exists between default risk and yield?
Select correct option:
Higher the default risk, higher the yield
Lower the default risk, higher the yield
Higher the default risk yield will remain constant
Lower the default risk yield will remain constant
Question # 3 of 15 ( Start time: 05:56:09 AM ) Total Marks: 1
Bonds without maturity dates are which of the followings?
Select correct option:
Zero coupon bonds
Coupon securities
Consols
Preferred Bonds
Question # 4 of 15 ( Start time: 05:56:45 AM ) Total Marks: 1
If the annual interest rate is 6%, the price of a 1-year Treasury bill with $100 face value would be:
Select correct option:
$94.00
$94.33
$95.25
$96.10
Question # 5 of 15 ( Start time: 05:57:31 AM ) Total Marks: 1
Sum of all the probabilities should be equal to which one of the following?
Select correct option:
Zero
One
Two
Three
Question # 6 of 15 ( Start time: 05:57:45 AM ) Total Marks: 1
________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:
Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest
Question # 7 of 15 ( Start time: 05:58:24 AM ) Total Marks: 1
The return on the bond is equal to which of the following?
Select correct option:
Coupon rate + rate of capital gains
Current yield + rate of capital gains
Coupon rate - rate of capital gains
Current yield - rate of capital gains
Question # 8 of 15 ( Start time: 05:59:02 AM ) Total Marks: 1
Which of the following is NOT a depository financial institution?
Select correct option:
Credit Union
Savings and Loan
Commercial bank
Life Insurance Company
Question # 9 of 15 ( Start time: 05:59:39 AM ) Total Marks: 1
The current yield on a $10,000, 5% coupon bond selling for $8,000 is:
Select correct option:
5.00%
6.25%
7.50%
8.00%
Question # 10 of 15 ( Start time: 06:00:23 AM ) Total Marks: 1
A risk-averse investor will:
Select correct option:
Always prefer an investment with a lower expected return
Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty
Always require a certain return
Always focus exclusively on the expected return
Question # 11 of 15 ( Start time: 06:00:38 AM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:
M1
M2
M3
None of above
Question # 12 of 15 ( Start time: 06:00:58 AM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:
Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
Question # 13 of 15 ( Start time: 06:01:27 AM ) Total Marks: 1
When the auto manufacturing industry does poorly due to a recession this is an example of:
Select correct option:
Idiosyncratic risk
Systematic risk
Risk premium
Unique risk
Question # 14 of 15 ( Start time: 06:01:57 AM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
Select correct option:
Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit
Question # 15 of 15 ( Start time: 06:02:09 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Home loans and car loans are the example of which one of the following?
Select correct option:
Mortgage loans
Pledge
Fixed Payment Loans
Ordinary loan
Question # 2 of 15 ( Start time: 05:54:49 AM ) Total Marks: 1
What is the true relationship that exists between default risk and yield?
Select correct option:
Higher the default risk, higher the yield
Lower the default risk, higher the yield
Higher the default risk yield will remain constant
Lower the default risk yield will remain constant
Question # 3 of 15 ( Start time: 05:56:09 AM ) Total Marks: 1
Bonds without maturity dates are which of the followings?
Select correct option:
Zero coupon bonds
Coupon securities
Consols
Preferred Bonds
Question # 4 of 15 ( Start time: 05:56:45 AM ) Total Marks: 1
If the annual interest rate is 6%, the price of a 1-year Treasury bill with $100 face value would be:
Select correct option:
$94.00
$94.33
$95.25
$96.10
Question # 5 of 15 ( Start time: 05:57:31 AM ) Total Marks: 1
Sum of all the probabilities should be equal to which one of the following?
Select correct option:
Zero
One
Two
Three
Question # 6 of 15 ( Start time: 05:57:45 AM ) Total Marks: 1
________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:
Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest
Question # 7 of 15 ( Start time: 05:58:24 AM ) Total Marks: 1
The return on the bond is equal to which of the following?
Select correct option:
Coupon rate + rate of capital gains
Current yield + rate of capital gains
Coupon rate - rate of capital gains
Current yield - rate of capital gains
Question # 8 of 15 ( Start time: 05:59:02 AM ) Total Marks: 1
Which of the following is NOT a depository financial institution?
Select correct option:
Credit Union
Savings and Loan
Commercial bank
Life Insurance Company
Question # 9 of 15 ( Start time: 05:59:39 AM ) Total Marks: 1
The current yield on a $10,000, 5% coupon bond selling for $8,000 is:
Select correct option:
5.00%
6.25%
7.50%
8.00%
Question # 10 of 15 ( Start time: 06:00:23 AM ) Total Marks: 1
A risk-averse investor will:
Select correct option:
Always prefer an investment with a lower expected return
Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty
Always require a certain return
Always focus exclusively on the expected return
Question # 11 of 15 ( Start time: 06:00:38 AM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:
M1
M2
M3
None of above
Question # 12 of 15 ( Start time: 06:00:58 AM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:
Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
Question # 13 of 15 ( Start time: 06:01:27 AM ) Total Marks: 1
When the auto manufacturing industry does poorly due to a recession this is an example of:
Select correct option:
Idiosyncratic risk
Systematic risk
Risk premium
Unique risk
Question # 14 of 15 ( Start time: 06:01:57 AM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
Select correct option:
Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit
Question # 15 of 15 ( Start time: 06:02:09 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
.........
Question # 1 of 15 ( Start time: 06:03:35 AM ) Total Marks: 1
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:
Discounting
Compounding
Time value of money
Bond pricing
Question # 2 of 15 ( Start time: 06:04:23 AM ) Total Marks: 1
The money aggregate M2 includes each of the following EXCEPT:
Select correct option:
Small denomination time deposits.
Retail Money Market Mutual fund shares
U.S. Treasury bills
M1
Question # 3 of 15 ( Start time: 06:05:13 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Question # 4 of 15 ( Start time: 06:05:30 AM ) Total Marks: 1
You receive a check for $100 two years from today. The discounted present value of this $100 is:
Select correct option:
$100/(1+i)
$100*(1+i)2
$100*(1+i)
$100/(1+i)2
Question # 5 of 15 ( Start time: 06:06:37 AM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Question # 6 of 15 ( Start time: 06:07:20 AM ) Total Marks: 1
In which of the following bonds we may ignore the default risk?
Select correct option:
Privately issued bonds
Government issued bonds
Bonds issued by Corporate
All of the given options
Question # 7 of 15 ( Start time: 06:07:47 AM ) Total Marks: 1
What characteristic of money is not included in securities characteristics
Select correct option:
Mean of payment
Unit of account
Store of value
Transfer of risk
Question # 8 of 15 ( Start time: 06:08:38 AM ) Total Marks: 1
An increase in wealth shifts the demand for bonds to the ________.
Select correct option:
Left
Right
No change
All of the given options
Question # 9 of 15 ( Start time: 06:09:00 AM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Question # 10 of 15 ( Start time: 06:09:19 AM ) 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
Question # 11 of 15 ( Start time: 06:09:34 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Question # 12 of 15 ( Start time: 06:09:52 AM ) Total Marks: 1
The bond rating of a security refers to which of the followings?
Select correct option:
The size of the coupon payment relative to the face value
The return a holder is likely to receive
The likelihood the lender/borrower will be repaid by the borrower/issuer
The years until the bond matures
Question # 13 of 15 ( Start time: 06:10:17 AM ) Total Marks: 1
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Question # 14 of 15 ( Start time: 06:10:49 AM ) Total Marks: 1
What is true about the relationship between standard deviation and risk?
Select correct option:
Greater the standard deviation greater will be the risk
Greater the standard deviation lower will be the risk
Greater the standard deviation risk remains the same
No relation between them
Question # 15 of 15 ( Start time: 06:11:20 AM ) Total Marks: 1
________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:
Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:
Discounting
Compounding
Time value of money
Bond pricing
Question # 2 of 15 ( Start time: 06:04:23 AM ) Total Marks: 1
The money aggregate M2 includes each of the following EXCEPT:
Select correct option:
Small denomination time deposits.
Retail Money Market Mutual fund shares
U.S. Treasury bills
M1
Question # 3 of 15 ( Start time: 06:05:13 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Question # 4 of 15 ( Start time: 06:05:30 AM ) Total Marks: 1
You receive a check for $100 two years from today. The discounted present value of this $100 is:
Select correct option:
$100/(1+i)
$100*(1+i)2
$100*(1+i)
$100/(1+i)2
Question # 5 of 15 ( Start time: 06:06:37 AM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Question # 6 of 15 ( Start time: 06:07:20 AM ) Total Marks: 1
In which of the following bonds we may ignore the default risk?
Select correct option:
Privately issued bonds
Government issued bonds
Bonds issued by Corporate
All of the given options
Question # 7 of 15 ( Start time: 06:07:47 AM ) Total Marks: 1
What characteristic of money is not included in securities characteristics
Select correct option:
Mean of payment
Unit of account
Store of value
Transfer of risk
Question # 8 of 15 ( Start time: 06:08:38 AM ) Total Marks: 1
An increase in wealth shifts the demand for bonds to the ________.
Select correct option:
Left
Right
No change
All of the given options
Question # 9 of 15 ( Start time: 06:09:00 AM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Question # 10 of 15 ( Start time: 06:09:19 AM ) 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
Question # 11 of 15 ( Start time: 06:09:34 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Question # 12 of 15 ( Start time: 06:09:52 AM ) Total Marks: 1
The bond rating of a security refers to which of the followings?
Select correct option:
The size of the coupon payment relative to the face value
The return a holder is likely to receive
The likelihood the lender/borrower will be repaid by the borrower/issuer
The years until the bond matures
Question # 13 of 15 ( Start time: 06:10:17 AM ) Total Marks: 1
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Question # 14 of 15 ( Start time: 06:10:49 AM ) Total Marks: 1
What is true about the relationship between standard deviation and risk?
Select correct option:
Greater the standard deviation greater will be the risk
Greater the standard deviation lower will be the risk
Greater the standard deviation risk remains the same
No relation between them
Question # 15 of 15 ( Start time: 06:11:20 AM ) Total Marks: 1
________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:
Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest
.........
Question # 1 of 15 ( Start time: 06:13:57 AM ) Total Marks: 1
The lowest rating for an investment grade bond assigned by Moody's is:
Select correct option:
BBB
ABB
Baa
Aaa
Question # 2 of 15 ( Start time: 06:14:23 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Question # 3 of 15 ( Start time: 06:14:44 AM ) Total Marks: 1
Which one of the following is a component of wealth that is held in a readily spendable form?
Select correct option:
Money
Bonds
Stocks
Income
Question # 4 of 15 ( Start time: 06:15:14 AM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:
Risk
Probability
Frequency
Outcom
Question # 5 of 15 ( Start time: 06:15:43 AM ) Total Marks: 1
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Question # 6 of 15 ( Start time: 06:16:12 AM ) Total Marks: 1
The interest rate that is involved in ___________ calculation is referred to as discount rate
Select correct option:
Present value
Future value
Intrinsic value
Discount value
Question # 8 of 15 ( Start time: 06:17:04 AM ) Total Marks: 1
Which of the following is NOT a depository financial institution?
Select correct option:
Credit Union
Savings and Loan
Commercial bank
Life Insurance Company
Question # 9 of 15 ( Start time: 06:17:32 AM ) Total Marks: 1
What is true relationship between return and risk?
Select correct option:
Lower the risk greater the return
Greater the risk greater the return
Greater the risk the return will remain constant
No relationship between them
Question # 10 of 15 ( Start time: 06:18:17 AM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:
Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
Question # 11 of 15 ( Start time: 06:18:48 AM ) Total Marks: 1
The GDP deflator is calculated as_________.
Select correct option:
Nominal GDP/Real GDP *100
Real GDP/Nominal GDP
Nominal GDP – Real GDP
Real GDP – Nominal GDP
Question # 12 of 15 ( Start time: 06:19:29 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Question # 13 of 15 ( Start time: 06:20:10 AM ) Total Marks: 1
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Question # 14 of 15 ( Start time: 06:20:57 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Question # 15 of 15 ( Start time: 06:21:20 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:
Default risk
Inflation risk
Interest rate risk
Systematic risk
The lowest rating for an investment grade bond assigned by Moody's is:
Select correct option:
BBB
ABB
Baa
Aaa
Question # 2 of 15 ( Start time: 06:14:23 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Question # 3 of 15 ( Start time: 06:14:44 AM ) Total Marks: 1
Which one of the following is a component of wealth that is held in a readily spendable form?
Select correct option:
Money
Bonds
Stocks
Income
Question # 4 of 15 ( Start time: 06:15:14 AM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:
Risk
Probability
Frequency
Outcom
Question # 5 of 15 ( Start time: 06:15:43 AM ) Total Marks: 1
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Question # 6 of 15 ( Start time: 06:16:12 AM ) Total Marks: 1
The interest rate that is involved in ___________ calculation is referred to as discount rate
Select correct option:
Present value
Future value
Intrinsic value
Discount value
Question # 8 of 15 ( Start time: 06:17:04 AM ) Total Marks: 1
Which of the following is NOT a depository financial institution?
Select correct option:
Credit Union
Savings and Loan
Commercial bank
Life Insurance Company
Question # 9 of 15 ( Start time: 06:17:32 AM ) Total Marks: 1
What is true relationship between return and risk?
Select correct option:
Lower the risk greater the return
Greater the risk greater the return
Greater the risk the return will remain constant
No relationship between them
Question # 10 of 15 ( Start time: 06:18:17 AM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:
Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
Question # 11 of 15 ( Start time: 06:18:48 AM ) Total Marks: 1
The GDP deflator is calculated as_________.
Select correct option:
Nominal GDP/Real GDP *100
Real GDP/Nominal GDP
Nominal GDP – Real GDP
Real GDP – Nominal GDP
Question # 12 of 15 ( Start time: 06:19:29 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Question # 13 of 15 ( Start time: 06:20:10 AM ) Total Marks: 1
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Question # 14 of 15 ( Start time: 06:20:57 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Question # 15 of 15 ( Start time: 06:21:20 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:
Default risk
Inflation risk
Interest rate risk
Systematic risk
............
Question # 1 of 15 ( Start time: 06:25:11 AM ) Total Marks: 1
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:
Discounting
Compounding
Time value of money
Bond pricing
Question # 2 of 15 ( Start time: 06:25:27 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:
Currency
Stock
Bond
Commodity
Question # 3 of 15 ( Start time: 06:25:40 AM ) Total Marks: 1
An increase in the expected inflation shifts the bond supply to the _______.
Select correct option:
Right
Left
No change
All of the given options
Question # 4 of 15 ( Start time: 06:26:00 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:
Default risk
Inflation risk
Interest rate risk
Systematic risk
Question # 5 of 15 ( Start time: 06:26:22 AM ) Total Marks: 1
Which one of the following is true for financial intermediaries?
Select correct option:
Channel funds from savers to borrowers
Greatly enhance economic efficiency
Have been an source of many financial innovations
All of the given options
Question # 6 of 15 ( Start time: 06:26:51 AM ) Total Marks: 1
Most of the people among us are _________.
Select correct option:
Risk lovers
Risk enhancers
Risk averse
Risk tolerating
Question # 7 of 15 ( Start time: 06:27:22 AM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:
Risk
Probability
Frequency
Outcom
Question # 8 of 15 ( Start time: 06:27:33 AM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Question # 9 of 15 ( Start time: 06:27:48 AM ) Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to ________ the money will be t =72/i%
Select correct option:
Doubles
Triples
halves
3/4
Question # 10 of 15 ( Start time: 06:28:00 AM ) Total Marks: 1
Time affects the value of which of the following?
Select correct option:
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Question # 11 of 15 ( Start time: 06:28:20 AM ) Total Marks: 1
An increase in wealth shifts the demand for bonds to the ________.
Select correct option:
Left
Right
No change
All of the given options
Question # 12 of 15 ( Start time: 06:28:55 AM ) Total Marks: 1
A business cycle downturn shifts the bond supply to the:
Select correct option:
Right
Left
No change
None of the given options
Question # 13 of 15 ( Start time: 06:29:17 AM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:
Financial company
Financial institution
Financial market
Bank
Question # 14 of 15 ( Start time: 06:29:44 AM ) Total Marks: 1
If YTM is greater than 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
All of the given options
Question # 15 of 15 ( Start time: 06:30:28 AM ) Total Marks: 1
Saving occurs normally in ……….
Select correct option:
Early age
Middle age
Old age
None of above
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:
Discounting
Compounding
Time value of money
Bond pricing
Question # 2 of 15 ( Start time: 06:25:27 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:
Currency
Stock
Bond
Commodity
Question # 3 of 15 ( Start time: 06:25:40 AM ) Total Marks: 1
An increase in the expected inflation shifts the bond supply to the _______.
Select correct option:
Right
Left
No change
All of the given options
Question # 4 of 15 ( Start time: 06:26:00 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:
Default risk
Inflation risk
Interest rate risk
Systematic risk
Question # 5 of 15 ( Start time: 06:26:22 AM ) Total Marks: 1
Which one of the following is true for financial intermediaries?
Select correct option:
Channel funds from savers to borrowers
Greatly enhance economic efficiency
Have been an source of many financial innovations
All of the given options
Question # 6 of 15 ( Start time: 06:26:51 AM ) Total Marks: 1
Most of the people among us are _________.
Select correct option:
Risk lovers
Risk enhancers
Risk averse
Risk tolerating
Question # 7 of 15 ( Start time: 06:27:22 AM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:
Risk
Probability
Frequency
Outcom
Question # 8 of 15 ( Start time: 06:27:33 AM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Question # 9 of 15 ( Start time: 06:27:48 AM ) Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to ________ the money will be t =72/i%
Select correct option:
Doubles
Triples
halves
3/4
Question # 10 of 15 ( Start time: 06:28:00 AM ) Total Marks: 1
Time affects the value of which of the following?
Select correct option:
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Question # 11 of 15 ( Start time: 06:28:20 AM ) Total Marks: 1
An increase in wealth shifts the demand for bonds to the ________.
Select correct option:
Left
Right
No change
All of the given options
Question # 12 of 15 ( Start time: 06:28:55 AM ) Total Marks: 1
A business cycle downturn shifts the bond supply to the:
Select correct option:
Right
Left
No change
None of the given options
Question # 13 of 15 ( Start time: 06:29:17 AM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:
Financial company
Financial institution
Financial market
Bank
Question # 14 of 15 ( Start time: 06:29:44 AM ) Total Marks: 1
If YTM is greater than 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
All of the given options
Question # 15 of 15 ( Start time: 06:30:28 AM ) Total Marks: 1
Saving occurs normally in ……….
Select correct option:
Early age
Middle age
Old age
None of above
............
