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
| 1. |
In primary markets, first time issued shares to be publicly traded in stock markets is considered as |
| A. | traded offering |
| B. | public markets |
| C. | issuance offering |
| D. | initial public offering |
| Answer» D. initial public offering | |
| 2. |
Transaction cost of trading of financial instruments in centralized market is classified as |
| A. | flexible costs |
| B. | low transaction costs |
| C. | high transaction costs |
| D. | constant costs |
| Answer» B. low transaction costs | |
| 3. |
Stocks or shares that are sold to investors without transacting through financial institutions are classified as |
| A. | direct transfer |
| B. | indirect transfer |
| C. | global transfer |
| D. | pension transfer |
| Answer» A. direct transfer | |
| 4. |
Type of financial security which have linked payoff to another issued security is classified as |
| A. | linked security |
| B. | derivative security |
| C. | payable security |
| D. | non-issuing security |
| Answer» B. derivative security | |
| 5. |
In primary markets, property of shares which made it easy to sell newly issued security is considered as |
| A. | increased liquidity |
| B. | decreased liquidity |
| C. | money flow |
| D. | large funds |
| Answer» A. increased liquidity | |
| 6. |
Liquidity status of certificate of deposit which is more negotiable is considered as |
| A. | certified liquidity |
| B. | term liquidity |
| C. | more liquid |
| D. | less liquid |
| Answer» C. more liquid | |
| 7. |
Commercial paper issued with low interest rate thus commercial paper are categorized as |
| A. | payables rating |
| B. | commercial rating |
| C. | poor credit rating |
| D. | better credit rating |
| Answer» D. better credit rating | |
| 8. |
Maximum maturity days of holding commercial paper are |
| A. | 170 days |
| B. | 270 days |
| C. | 120 days |
| D. | 5 days |
| Answer» B. 270 days | |
| 9. |
In borrowing and lending of federal funds, 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 | |
| 10. |
A "hybrid" fund is one that: |
| A. | invests in both bonds and stocks |
| B. | started as a closed-end investment company, but changed to a mutual fund |
| C. | has different "loads" for different classes of investors in the fund |
| D. | can serve as an investment vehicle, but also provides check-writing privileges. |
| Answer» C. has different "loads" for different classes of investors in the fund | |
| 11. |
The first mutual fund was established in the: |
| A. | 1890s |
| B. | 1920s |
| C. | 1940s |
| D. | 1960s |
| Answer» D. 1960s | |
| 12. |
A mutual fund that invests solely in stocks would be categorized as a/an: |
| A. | bond fund |
| B. | fixed income fund |
| C. | money market fund |
| D. | equity fund |
| Answer» B. fixed income fund | |
| 13. |
A large number (about 25%) of long-term mutual funds are _____________ funds, buying securities in proportions similar to those of a major stock index. |
| A. | small cap |
| B. | large cap |
| C. | fixed income |
| D. | index |
| Answer» D. index | |
| 14. |
The bulk of the nation's money supply is created within the private banking system and is sometimes called: |
| A. | inside money |
| B. | net money |
| C. | base money |
| D. | outside money |
| Answer» B. net money | |
| 15. |
A type of bank account designed to compete with money market mutual funds, and having limited check-writing services, is known as: |
| A. | wholesale CDs |
| B. | demand deposit |
| C. | repurchase agreement |
| D. | NOW account |
| Answer» A. wholesale CDs | |
| 16. |
__________would encompass fees received by the bank, but not revenues coming from interest charges on loans. |
| A. | Net interest margin |
| B. | Spread |
| C. | Non interest income |
| D. | Non interest expense |
| Answer» B. Spread | |
| 17. |
Another name used for a bank income statement is: |
| A. | report of income |
| B. | statement of retained earnings |
| C. | overhead efficiency report |
| D. | report of condition |
| Answer» D. report of condition | |
| 18. |
Which of the following is an advantage to investors of an open-end mutual fund? |
| A. | Once all the shares have been sold, the investor does not have to put in more money. |
| B. | The investors can sell their shares in the over-the-counter market with low transaction fees. |
| C. | The fund agrees to redeem shares at any time. |
| D. | The market value of the fund’s shares may be higher than the value of the assets held by the fund. |
| Answer» C. The fund agrees to redeem shares at any time. | |
| 19. |
In --------------- Securities share bond debentures are offered to the public for subscription for raising capital or fund. |
| A. | Prime Securities |
| B. | Public Securities |
| C. | Preferred Securities |
| D. | Primary Securities |
| Answer» A. Prime Securities | |
| 20. |
ADR Stands for: |
| A. | Asset Depository Receipt |
| B. | Asian Depository Receipt |
| C. | American Depository Receipt |
| D. | Adjustable Depository Receipt |
| Answer» C. American Depository Receipt | |
| 21. |
SEBI operates to fulfill the needs of these three groups, choose the one which is not in those three: |
| A. | the issuers of securities |
| B. | the police |
| C. | the investors |
| D. | the market intermediaries |
| Answer» B. the police | |
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