Financial Markets And Institutions Set 4
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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 4
Q1 | NCDEX stands for-------------------
- National Commodity Development Exchange
- National Commodity and Derivatives Exchange
- Natural Commodity and Development Exchange
- None of these
Q2 | In ------------ NSE and BSE launched trading in commodities.
- 2016
- 2017
- 2018
- 2015
Q3 | The oldest Commodity market in India is---------
- NMCE
- MCX
- ICEX
- NCDEX
Q4 | In the year 2018 NMCE merged with -----------
- UCX
- MCX
- ICEX
- NCDEX
Q5 | ACE Derivatives Exchange Ltd is the commodity exchange developed in---------
- America
- Australia
- Afghanistan
- None of these
Q6 | Which of the following statements is false?
- A bond issuer must pay periodic interest.
- Bond prices remain fixed over time.
- Bonds carry no corporate ownership privileges.
- A bond is a financial contract.
Q7 | Which of the following statements is true?
- Low inflation is expected to have a negative effect on bond prices.
- Generally speaking, bonds are riskier than common stocks.
- Bonds are usually less liquid than stocks.
- A bondholder repays principal when the bond matures.
Q8 | Most bonds:
- are money market securities.
- give bondholders a voice in the affairs of the corporation.
- are interest-bearing obligations of governments or corporations.
- are floating-rate securities.
Q9 | Which of the following is not an advantage of investing in bonds?
- Bonds have unlimited profit potential.
- Bond investments are relatively safe from large losses.
- Bonds are good sources of current income.
- Bondholders receive their payments before shareholders can be compensated.
Q10 | Which of the following is a capital market security?
- Treasury bills.
- Federal funds.
- Federal agency bonds.
- Eurodollars.
Q11 | Which of the following is a money market security?
- Repurchase agreements.
- Municipal bonds.
- Mortgages.
- U.S. Treasury notes.
Q12 | Corporations borrow for the short term by issuing:
- corporate bills.
- corporate bonds.
- commercial paper.
- bankers’ acceptances.
Q13 | What is used to quote the rates on Eurodollar deposits?
- Discount rate.
- Federal funds rate.
- Repo rate.
- LIBOR.
Q14 | Which of the following provides income that is fully exempt from taxation for the individualinvestor?
- Municipal bonds.
- Preferred stocks.
- Treasury notes.
- Treasury bills.
Q15 | Which of the following is a residual claim on a firm’s assets?
- Preferred stock.
- Common stock.
- Preference shares.
- Participating preferred stock.
Q16 | Which of the following occurs four trading days before the date of record?
- Distribution date.
- Payment date.
- Declaration date.
- Ex-dividend date.
Q17 | Which of the following types of assets is least risky?
- Short-term corporate bonds
- Long-term corporate bonds.
- Stocks.
- Options and futures.
Q18 | Which of the following types of assets offers the highest expected return?
- Stocks.
- Long-term government bonds.
- Options and futures.
- Long-term corporate bonds.
Q19 | Which of the following types of financial assets represents a creditor relationship with anentity?
- Stocks.
- Options.
- Futures.
- Bonds.
Q20 | Which of the following sequences lists financial assets from least risky to most risky?
- Stocks, bonds, derivatives.
- Bonds, derivatives, stocks.
- Derivatives, bonds, stocks.
- Bonds, stocks, derivatives.
Q21 | Which of the following sequences lists financial assets from lowest expected return tohighest expected return?
- Bonds, stocks, derivatives.
- Bonds, derivatives, stocks.
- Stocks, bonds, derivatives.
- Derivatives, stocks, bonds.
Q22 | Which of the following types of assets represents ownership interest in a corporation?
- Bonds
- Stocks.
- Futures.
- Options.
Q23 | Financial assets are also called:
- securities.
- real assets.
- tangible assets.
- physical assets.
Q24 | If people are willing to lend at 7% when inflation is 2% and continue to lend the sameamounts when inflation is 4% and interest rates have risen to 8%, they are assumed to be subject to:
- Extrapolative expectations
- Risk aversion
- Asymmetric information
- Money illusion
Q25 | The reason that finding the present value of a future sum of money requires us to discountit, is that:
- Inflation will reduce its purchasing power
- We can’t be certain of receiving it
- We don’t know when we shall receive it
- Waiting deprives us of its use