McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) , Master of Business Administration (MBA) .
Chapters
| 51. |
In what city are the two largest commodities exchanges? |
| A. | Chicago |
| B. | New York |
| C. | Kansas City |
| D. | Minneapolis |
| Answer» A. Chicago | |
| 52. |
The financial futures market has evolved over recent time because of |
| A. | volatility and risk in the foreign exchange markets |
| B. | volatility of interest rates |
| C. | appeal to speculators due to low margin requirements |
| D. | all of the above |
| Answer» D. all of the above | |
| 53. |
While hedging through interest rate futures reduces or eliminates the risk of loss, it also |
| A. | is illegal in some cases. |
| B. | has not been accepted by most corporate financial managers. |
| C. | eliminates the possibility of an abnormal gain. |
| D. | none of the above. |
| Answer» C. eliminates the possibility of an abnormal gain. | |
| 54. |
Margin requirements on commodities contracts |
| A. | are much higher than those on common stock transactions. |
| B. | vary over time and even among exchanges for a given commodity. |
| C. | typically, are 2 to 10 percent of the value of the contract. |
| D. | none of the above are true. |
| Answer» C. typically, are 2 to 10 percent of the value of the contract. | |
| 55. |
Which of the following can be the underlying for a commodity derivative contract? |
| A. | Interest Rate |
| B. | Euro-Indian Rupee |
| C. | Gold |
| D. | NIFTY |
| Answer» C. Gold | |
| 56. |
Daily mark to market settlement is done ------------ |
| A. | Till the date of contract expiry |
| B. | As long as the contract makes a loss |
| C. | On the last day of week |
| D. | On the last trading day of the month |
| Answer» A. Till the date of contract expiry | |
| 57. |
----------is the actual process of exchanging money and goods. |
| A. | Transfer |
| B. | Settlement |
| C. | Netting |
| D. | Clearing |
| Answer» B. Settlement | |
| 58. |
-----------work at making profits by taking advantage of discrepancy between prices of the same product across different markets. |
| A. | Arbitragers |
| B. | Speculators |
| C. | Exchange |
| D. | Hedgers |
| Answer» A. Arbitragers | |
| 59. |
Commodity exchanges enable producers and consumer to hedge their -----------given the uncertainty of the future. |
| A. | seasonal risk |
| B. | profit risk |
| C. | production risk |
| D. | price risk |
| Answer» D. price risk | |
| 60. |
Which of the following is not true about the national level exchanges? |
| A. | Offers online trading |
| B. | Recognised on permanent basis |
| C. | Offers single commodity for trading |
| D. | Volumes higher than regional exchanges |
| Answer» C. Offers single commodity for trading | |
| 61. |
----------- Exchanges provide real time, online, transparent and vibrant spot platform for commodities. |
| A. | Electronic Spot |
| B. | Regional |
| C. | Futures |
| D. | Stock |
| Answer» A. Electronic Spot | |
| 62. |
----------can only trade through their account or on account of their clients and however clear their trade through PCMs/STCMs. |
| A. | Trading cum Clearing Member |
| B. | Trading Member |
| C. | Commodity Participant |
| D. | Associate Member |
| Answer» B. Trading Member | |
| 63. |
The minimum net worth requirement for PCM on the NCDEX is-----------. |
| A. | 50 Lakh |
| B. | 500 Lakh |
| C. | 5000 Lakh |
| D. | 5 Lakh |
| Answer» C. 5000 Lakh | |
| 64. |
Members of commodity market can opt to meet the security deposit requirement by way of -- --------- |
| A. | Cash |
| B. | Bank Guarantee |
| C. | Fixed Deposit Receipts |
| D. | All of the above |
| Answer» D. All of the above | |
| 65. |
In the case of certain commodities like gold and silver, delivery is staggered over last ------ days of the contract. |
| A. | Two |
| B. | Three |
| C. | Five |
| D. | Thirteen |
| Answer» C. Five | |
| 66. |
Unit of trading for Wheat at NCDEX is--------- |
| A. | 1 MT |
| B. | 3 MT |
| C. | 1 kg |
| D. | 10 MT |
| Answer» D. 10 MT | |
| 67. |
At present how many national commodity exchanges are operating in India? |
| A. | 8 |
| B. | 7 |
| C. | 6 |
| D. | 10 |
| Answer» C. 6 | |
| 68. |
Regulatory body of commodity market in India is------------- |
| A. | FMC |
| B. | NCX |
| C. | ICE |
| D. | ICRA |
| Answer» A. FMC | |
| 69. |
Forward Market Commission (FMC) established in the year----------- |
| A. | 1948 |
| B. | 1964 |
| C. | 1953 |
| D. | 1952 |
| Answer» C. 1953 | |
| 70. |
FMC merged with SEBI in the year------------ |
| A. | 1994 |
| B. | 2008 |
| C. | 2015 |
| D. | 2016 |
| Answer» C. 2015 | |
| 71. |
The year of establishment of National Multi- Commodity Exchange (NMCE) was--------- |
| A. | 2002 |
| B. | 2003 |
| C. | 2004 |
| D. | 2005 |
| Answer» A. 2002 | |
| 72. |
The Headquarters of NMCE is ------------- |
| A. | New Delhi |
| B. | Ahmedabad |
| C. | Mumbai |
| D. | Calcutta |
| Answer» B. Ahmedabad | |
| 73. |
-----------is the world’s largest exchange in silver and gold |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» B. MCX | |
| 74. |
---------------holds 86% market share of commodity exchange in India |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» B. MCX | |
| 75. |
Headquarters of Multi Commodity Exchange in India (MCX) is ---------- |
| A. | New Delhi |
| B. | Ahmedabad |
| C. | Mumbai |
| D. | Calcutta |
| Answer» C. Mumbai | |
| 76. |
NCDEX stands for------------------- |
| A. | National Commodity Development Exchange |
| B. | National Commodity and Derivatives Exchange |
| C. | Natural Commodity and Development Exchange |
| D. | None of these |
| Answer» B. National Commodity and Derivatives Exchange | |
| 77. |
In ------------ NSE and BSE launched trading in commodities. |
| A. | 2016 |
| B. | 2017 |
| C. | 2018 |
| D. | 2015 |
| Answer» C. 2018 | |
| 78. |
The oldest Commodity market in India is--------- |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» A. NMCE | |
| 79. |
In the year 2018 NMCE merged with ----------- |
| A. | UCX |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» C. ICEX | |
| 80. |
ACE Derivatives Exchange Ltd is the commodity exchange developed in--------- |
| A. | America |
| B. | Australia |
| C. | Afghanistan |
| D. | None of these |
| Answer» D. None of these | |
| 81. |
Which of the following statements is false? |
| A. | A bond issuer must pay periodic interest. |
| B. | Bond prices remain fixed over time. |
| C. | Bonds carry no corporate ownership privileges. |
| D. | A bond is a financial contract. |
| Answer» B. Bond prices remain fixed over time. | |
| 82. |
Which of the following statements is true? |
| A. | Low inflation is expected to have a negative effect on bond prices. |
| B. | Generally speaking, bonds are riskier than common stocks. |
| C. | Bonds are usually less liquid than stocks. |
| D. | A bondholder repays principal when the bond matures. |
| Answer» C. Bonds are usually less liquid than stocks. | |
| 83. |
Most bonds: |
| A. | are money market securities. |
| B. | give bondholders a voice in the affairs of the corporation. |
| C. | are interest-bearing obligations of governments or corporations. |
| D. | are floating-rate securities. |
| Answer» C. are interest-bearing obligations of governments or corporations. | |
| 84. |
Which of the following is not an advantage of investing in bonds? |
| A. | Bonds have unlimited profit potential. |
| B. | Bond investments are relatively safe from large losses. |
| C. | Bonds are good sources of current income. |
| D. | Bondholders receive their payments before shareholders can be compensated. |
| Answer» A. Bonds have unlimited profit potential. | |
| 85. |
Which of the following is a capital market security? |
| A. | Treasury bills. |
| B. | Federal funds. |
| C. | Federal agency bonds. |
| D. | Eurodollars. |
| Answer» C. Federal agency bonds. | |
| 86. |
Which of the following is a money market security? |
| A. | Repurchase agreements. |
| B. | Municipal bonds. |
| C. | Mortgages. |
| D. | U.S. Treasury notes. |
| Answer» A. Repurchase agreements. | |
| 87. |
Corporations borrow for the short term by issuing: |
| A. | corporate bills. |
| B. | corporate bonds. |
| C. | commercial paper. |
| D. | bankers’ acceptances. |
| Answer» C. commercial paper. | |
| 88. |
What is used to quote the rates on Eurodollar deposits? |
| A. | Discount rate. |
| B. | Federal funds rate. |
| C. | Repo rate. |
| D. | LIBOR. |
| Answer» D. LIBOR. | |
| 89. |
Which of the following provides income that is fully exempt from taxation for the individual investor? |
| A. | Municipal bonds. |
| B. | Preferred stocks. |
| C. | Treasury notes. |
| D. | Treasury bills. |
| Answer» A. Municipal bonds. | |
| 90. |
Which of the following is a residual claim on a firm’s assets? |
| A. | Preferred stock. |
| B. | Common stock. |
| C. | Preference shares. |
| D. | Participating preferred stock. |
| Answer» B. Common stock. | |
| 91. |
Which of the following occurs four trading days before the date of record? |
| A. | Distribution date. |
| B. | Payment date. |
| C. | Declaration date. |
| D. | Ex-dividend date. |
| Answer» D. Ex-dividend date. | |
| 92. |
Which of the following types of assets is least risky? |
| A. | Short-term corporate bonds |
| B. | Long-term corporate bonds. |
| C. | Stocks. |
| D. | Options and futures. |
| Answer» A. Short-term corporate bonds | |
| 93. |
Which of the following types of assets offers the highest expected return? |
| A. | Stocks. |
| B. | Long-term government bonds. |
| C. | Options and futures. |
| D. | Long-term corporate bonds. |
| Answer» A. Stocks. | |
| 94. |
Which of the following types of financial assets represents a creditor relationship with an entity? |
| A. | Stocks. |
| B. | Options. |
| C. | Futures. |
| D. | Bonds. |
| Answer» D. Bonds. | |
| 95. |
Which of the following sequences lists financial assets from least risky to most risky? |
| A. | Stocks, bonds, derivatives. |
| B. | Bonds, derivatives, stocks. |
| C. | Derivatives, bonds, stocks. |
| D. | Bonds, stocks, derivatives. |
| Answer» D. Bonds, stocks, derivatives. | |
| 96. |
Which of the following sequences lists financial assets from lowest expected return to highest expected return? |
| A. | Bonds, stocks, derivatives. |
| B. | Bonds, derivatives, stocks. |
| C. | Stocks, bonds, derivatives. |
| D. | Derivatives, stocks, bonds. |
| Answer» A. Bonds, stocks, derivatives. | |
| 97. |
Which of the following types of assets represents ownership interest in a corporation? |
| A. | Bonds |
| B. | Stocks. |
| C. | Futures. |
| D. | Options. |
| Answer» B. Stocks. | |
| 98. |
Financial assets are also called: |
| A. | securities. |
| B. | real assets. |
| C. | tangible assets. |
| D. | physical assets. |
| Answer» A. securities. | |
| 99. |
If people are willing to lend at 7% when inflation is 2% and continue to lend the same amounts when inflation is 4% and interest rates have risen to 8%, they are assumed to be subject to: |
| A. | Extrapolative expectations |
| B. | Risk aversion |
| C. | Asymmetric information |
| D. | Money illusion |
| Answer» D. Money illusion | |
| 100. |
The reason that finding the present value of a future sum of money requires us to discount it, is that: |
| A. | Inflation will reduce its purchasing power |
| B. | We can’t be certain of receiving it |
| C. | We don’t know when we shall receive it |
| D. | Waiting deprives us of its use |
| Answer» D. Waiting deprives us of its use | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.