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
| 251. |
---------------holds 86% market share of commodity exchange in India |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» B. MCX | |
| 252. |
Headquarters of Multi Commodity Exchange in India (MCX) is ---------- |
| A. | New Delhi |
| B. | Ahmedabad |
| C. | Mumbai |
| D. | Calcutta |
| Answer» C. Mumbai | |
| 253. |
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 | |
| 254. |
In ------------ NSE and BSE launched trading in commodities. |
| A. | 2016 |
| B. | 2017 |
| C. | 2018 |
| D. | 2015 |
| Answer» C. 2018 | |
| 255. |
The oldest Commodity market in India is--------- |
| A. | NMCE |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» A. NMCE | |
| 256. |
In the year 2018 NMCE merged with ----------- |
| A. | UCX |
| B. | MCX |
| C. | ICEX |
| D. | NCDEX |
| Answer» C. ICEX | |
| 257. |
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 | |
| 258. |
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. | |
| 259. |
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. | |
| 260. |
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. | |
| 261. |
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. | |
| 262. |
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. | |
| 263. |
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. | |
| 264. |
Corporations borrow for the short term by issuing: |
| A. | corporate bills. |
| B. | corporate bonds. |
| C. | commercial paper. |
| D. | bankers’ acceptances. |
| Answer» C. commercial paper. | |
| 265. |
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. | |
| 266. |
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. | |
| 267. |
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. | |
| 268. |
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. | |
| 269. |
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 | |
| 270. |
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. | |
| 271. |
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. | |
| 272. |
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. | |
| 273. |
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. | |
| 274. |
Which of the following types of assets represents ownership interest in a corporation? |
| A. | Bonds |
| B. | Stocks. |
| C. | Futures. |
| D. | Options. |
| Answer» B. Stocks. | |
| 275. |
Financial assets are also called: |
| A. | securities. |
| B. | real assets. |
| C. | tangible assets. |
| D. | physical assets. |
| Answer» A. securities. | |
| 276. |
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 | |
| 277. |
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 | |
| 278. |
If interest rates rise, the present value of any future earnings is bound to: |
| A. | Fall |
| B. | Rise |
| C. | Suffer from inflation |
| D. | Increase in risk |
| Answer» A. Fall | |
| 279. |
In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to: |
| A. | A reduction in the amount of saving |
| B. | More employment |
| C. | Higher interest rates |
| D. | Higher prices |
| Answer» C. Higher interest rates | |
| 280. |
If savers decide to save more, ceteris paribus, the loanable funds theory predicts: |
| A. | A reduction in investment and interest rates |
| B. | An increase in investment and interest rates |
| C. | Higher economic growth |
| D. | A reduction in interest rates and more investment |
| Answer» D. A reduction in interest rates and more investment | |
| 281. |
According to the Fisher hypothesis, the nominal rate of interest consists of: |
| A. | A stable real rate plus a variable risk premium |
| B. | A real rate plus a liquidity premium plus a risk premium |
| C. | A stable real rate plus a variable inflation premium |
| D. | An inflation premium plus a liquidity premium |
| Answer» C. A stable real rate plus a variable inflation premium | |
| 282. |
According to the liquidity preference theory of interest, an increase in uncertainty, other things being equal, will: |
| A. | Decrease output and employment |
| B. | Increase risk aversion |
| C. | Reduce the demand for money |
| D. | Raise interest rates |
| Answer» D. Raise interest rates | |
| 283. |
The ability of central banks to influence short-term interest rates rests upon: |
| A. | Government policy |
| B. | Their role as lenders of last resort |
| C. | Their supervisory role |
| D. | Sales of government bonds |
| Answer» B. Their role as lenders of last resort | |
| 284. |
A central bank which sets the short-term rate of interest must: |
| A. | Buy treasury bills |
| B. | Meet the resulting demand for reserves |
| C. | Sell government bonds |
| D. | Change the reserve ratios |
| Answer» B. Meet the resulting demand for reserves | |
| 285. |
According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | None of these |
| Answer» A. Loanable Fund theory | |
| 286. |
According to ------- theory interest arises on account of the productivity of capital. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | Classical theory |
| Answer» B. Productivity theory | |
| 287. |
The Time- Preference Theory of Interest was expounded by----------- |
| A. | John Rae |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» A. John Rae | |
| 288. |
----------- defined Interest as “an index of the community’s preference for a dollar of present over a dollar of future income.” |
| A. | Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» A. Fisher | |
| 289. |
According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital. |
| A. | Loanable Fund theory |
| B. | Productivity theory |
| C. | Abstinence theory |
| D. | Classical theory |
| Answer» D. Classical theory | |
| 290. |
Loanable Fund theory is also known as----------- |
| A. | Classical theory |
| B. | Neo-classical theory |
| C. | Demand and Supply theory |
| D. | Productivity theory |
| Answer» B. Neo-classical theory | |
| 291. |
Neo- Classical theory of interest was expounded by------------ |
| A. | Prof. Fisher |
| B. | Alfred Marshall |
| C. | Knot Wicksel |
| D. | JB Clark |
| Answer» C. Knot Wicksel | |
| 292. |
According to Keynes, Interest is purely a ‘monetary phenomenon’. |
| A. | Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» C. JM Keynes | |
| 293. |
Who propounded liquidity preference theory of interest? |
| A. | Prof.Fisher |
| B. | Alfred Marshall |
| C. | JM Keynes |
| D. | JB Clark |
| Answer» C. JM Keynes | |
| 294. |
----------- is called as “Real Theory of Interest” |
| A. | Classical theory |
| B. | Neo-classical theory |
| C. | Demand and Supply theory |
| D. | Productivity theory |
| Answer» A. Classical theory | |
| 295. |
Technical consultancy Organisations were set up by........................ |
| A. | IFCI |
| B. | IDBI |
| C. | RBI |
| D. | SEBI |
| Answer» B. IDBI | |
| 296. |
ICICI was set up in ........................ |
| A. | 1955 |
| B. | 1964 |
| C. | 1989 |
| D. | 1935 |
| Answer» A. 1955 | |
| 297. |
........................ assists mainly to industrial undertakings in the private sector |
| A. | IFCI |
| B. | IDBI |
| C. | ICICI |
| D. | SEBI |
| Answer» C. ICICI | |
| 298. |
LIC was established in........................ |
| A. | 1956 |
| B. | 1964 |
| C. | 1989 |
| D. | gcv1935 |
| Answer» A. 1956 | |
| 299. |
UTI was set up in the year ........................ |
| A. | 1956 |
| B. | 1964 |
| C. | 1969 |
| D. | 1948 |
| Answer» B. 1964 | |
| 300. |
................known as Brettonwood twins |
| A. | IDBI and IFCI |
| B. | IDBI and UTI |
| C. | IBRD and IMF |
| D. | RBI and SEBI |
| Answer» C. IBRD and IMF | |
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