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. |
Debt and equity markets: |
| A. | are markets where financial claims are bought and sold for immediate cash payments. |
| B. | are decentralized secondary markets where dealers stand ready to buy and sell securities electronically. |
| C. | are markets where newly issued securities are so |
| Answer» A. are markets where financial claims are bought and sold for immediate cash payments. | |
| 52. |
The internal rate of return is: |
| A. | the interest rate at which money is borrowed for investment. |
| B. | the interest that allows a profit. |
| C. | profit divided by investment amount. |
| D. | the interest rate that equates the present value of an investment with its cost. |
| Answer» D. the interest rate that equates the present value of an investment with its cost. | |
| 53. |
Coupon bonds: |
| A. | require borrowers to pay the lender coupon payments until maturity, when the borrower pays the principle. |
| B. | require borrowers to pay lenders coupon payments until maturity. |
| C. | require borrowers to pay lenders principle and interest at maturity. |
| D. | require only interest payments until maturity when principle and interest are paid. |
| Answer» A. require borrowers to pay the lender coupon payments until maturity, when the borrower pays the principle. | |
| 54. |
The present value of a coupon bond is: |
| A. | the present value of the coupon payments plus the future value of the principle payment. |
| B. | the sum of the coupon payments and the principle payment. |
| C. | the sum of the coupon payments. |
| D. | the present value of the coupon payments and the present value of the principle payment. |
| Answer» D. the present value of the coupon payments and the present value of the principle payment. | |
| 55. |
The real interest rate: |
| A. | is the nominal interest rate + inflation. |
| B. | greater than the nominal interest rate when inflation is greater than0. |
| C. | is the interest rate expressed in current dollar terms. |
| D. | is the inflation adjusted interest rate. |
| Answer» D. is the inflation adjusted interest rate. | |
| 56. |
The nominal interest rate indicates that: |
| A. | people care only about the number of dollars. |
| B. | people care about what dollars can buy. |
| C. | people want compensated only for inflation. |
| D. | people only require the opportunity cost as payment when lending. |
| Answer» B. people care about what dollars can buy. | |
| 57. |
The commercial paper issued with low interest rate thus the commercial paper is categorized as |
| A. | payables rating |
| B. | commercial rating |
| C. | poor credit rating |
| D. | better credit rating |
| Answer» D. better credit rating | |
| 58. |
The maximum maturity days of holding commercial paper are |
| A. | 170 days |
| B. | 270 days |
| C. | 120 days |
| D. | 5 days |
| Answer» B. 270 days | |
| 59. |
In borrowing and lending of federal funds, the federal funds rate is result of function between |
| A. | assets and liability |
| B. | cost and marketing |
| C. | supply and demand |
| D. | income and expense |
| Answer» C. supply and demand | |
| 60. |
The demand for heavy loans can cause |
| A. | excess funds for banks |
| B. | deficiencies for banks |
| C. | organized reservation |
| D. | competitive reservations |
| Answer» B. deficiencies for banks | |
| 61. |
The agreement which incurs the transaction between two parties and promise held that second party will sell security at specific maturity is classified as |
| A. | repurchasing commercial notes |
| B. | repurchase bills |
| C. | purchase agreement |
| D. | reverse repurchase agreement |
| Answer» D. reverse repurchase agreement | |
| 62. |
Which among the following was set up by RBI in 1988 jointly with public sector banks and all India Financial Institutions to develop the money market & provide liquidity to money market instruments as sequel to Vaghul Working Group recommendations? |
| A. | Discount and Finance House of India Ltd (DFHI) |
| B. | Central Depository Services (India) Limited (CDSL) |
| C. | Financial Intelligence Unit India (FIU-I |
| Answer» A. Discount and Finance House of India Ltd (DFHI) | |
| 63. |
Which among the following is correct regarding BPLR or bench mark prime lending rate? |
| A. | It is lowest interest rate below PLR charged by a bank from the best customer of the financial year |
| B. | It is highest interest rate above PLR charged by a bank from the any customer of the financial year |
| C. | Both (a) & (b) |
| D. | None of the above |
| Answer» A. It is lowest interest rate below PLR charged by a bank from the best customer of the financial year | |
| 64. |
Which among the following coined the term “Second generation Reforms”? |
| A. | World Bank |
| B. | International Monetary Fund |
| C. | Reserve bank of India |
| D. | SBI |
| Answer» B. International Monetary Fund | |
| 65. |
The commercial paper issued with low interest rate thus the commercial paper are categorized as |
| A. | payables rating |
| B. | commercial rating |
| C. | poor credit rating |
| D. | better credit rating |
| Answer» D. better credit rating | |
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