MGT411-Money & Banking _ Quiz No. 1 Solved

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GMT - 3 Hours MGT411-Money & Banking _ Quiz No. 1 Solved

Post by =**Fairy** = on Mon Apr 25, 2011 1:11 pm

Quiz Start Time: 02:50 PM Time Left 44
sec(s)


Question # 1 of 15 ( Start time: 02:50:15 PM ) Total Marks: 1
Which of the following best represent the true relationships between interest rates and bond prices?
Select correct option:

Move in the same direction
Move in opposite direction ===
Sometimes move in the same direction, some times in opposite direction
Have no relationship with each other (i.e. they are independent)
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Quiz Start Time: 02:50 PM Time Left 70
sec(s)


Question # 2 of 15 ( Start time: 02:51:14 PM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:

M1
M2 ==
M3
None of Above
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Quiz Start Time: 02:50 PM Time Left 15
sec(s)


Question # 3 of 15 ( Start time: 02:51:49 PM ) Total Marks: 1
Which of the following is the main limitation of hedging strategy?
Select correct option:

Return always moves in same direction
Investments don’t always move predictably in opposite directions ===
Investments are volatile
Diversification is not possible
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Quiz Start Time: 02:50 PM Time Left 83
sec(s)


Question # 4 of 15 ( Start time: 02:53:21 PM ) Total Marks: 1
What will be the future value of $90 at the end of one year at 5% per annum?
Select correct option:

90.5
94.5 ===
98.5
100
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Quiz Start Time: 02:50 PM Time Left 83
sec(s)


Question # 5 of 15 ( Start time: 02:54:29 PM ) Total Marks: 1
We need __________ to carry out day to day transactions.
Select correct option:

Money ==
Bonds
Stocks
Loans
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Quiz Start Time: 02:50 PM Time Left 54
sec(s)


Question # 7 of 15 ( Start time: 02:56:35 PM ) Total Marks: 1
What will be the investor’s decision about a project if its internal rate of return is higher than the cost of capital?
Select correct option:

Rejection of project
Acceptance of project ===
Project is not profitable
None of above
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Quiz Start Time: 02:50 PM Time Left 40
sec(s)


Question # 8 of 15 ( Start time: 02:58:00 PM ) Total Marks: 1
Debt instruments is categorized on the basis of which one of the following?
Select correct option:

Loan maturity period ===
Interest rates
Mode of payment of interest
Amount of the debt taken
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Quiz Start Time: 02:50 PM Time Left 48
sec(s)


Question # 9 of 15 ( Start time: 02:59:00 PM ) Total Marks: 1
Which of the following statement is true about the relation ship between bond ,coupon payment and interest?
Select correct option:

Coupon payments fall, the interest rate falls, and Bond price will rise

Coupon payments rises, the interest rate falls, and Bond price will rise=== not confirm

Coupon payments fall, the interest rate falls, and Bond price will fall

Coupon payments rise, the interest rate falls, and Bond price will fall

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Quiz Start Time: 02:50 PM Time Left 53
sec(s)


Question # 10 of 15 ( Start time: 02:59:53 PM ) Total Marks: 1
Which one of the following is a component of wealth that is held in a readily spendable form?
Select correct option:

Money
Bonds ==
Stocks
Income
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Quiz Start Time: 02:50 PM Time Left 27
sec(s)


Question # 11 of 15 ( Start time: 03:00:54 PM ) Total Marks: 1
With direct finance we mean which of the following?
Select correct option:

Individuals (or firms) borrow directly from the savers ====
Individuals (or firms) borrow directly from banks.
Individuals deposit savings directly in banks.
Firms deposit savings directly in banks.
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Quiz Start Time: 02:50 PM Time Left 50
sec(s)


Question # 13 of 15 ( Start time: 03:03:38 PM ) Total Marks: 1
_____________ are organized to eliminate the need of costly information gathering.
Select correct option:

Central bank
Commercial banks
Stock exchanges ===
Insurance companies
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Quiz Start Time: 02:50 PM Time Left 69
sec(s)


Question # 14 of 15 ( Start time: 03:04:31 PM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:

Financial company
Financial institution
Financial market ===
Bank
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Quiz Start Time: 02:50 PM Time Left 41
sec(s)


Question # 15 of 15 ( Start time: 03:05:03 PM ) Total Marks: 1
If a bond sells at a premium, where price exceeds face value, then we would expect to see:
Select correct option:

Market interest rate the same as the coupon rate
Market interest rates above the coupon rate===

Market interest rates below the coupon rate

All of the given options
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