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Quiz Start Time: 11:34 PM Time Left 86
sec(s)
Question # 14 of 15 ( Start time: 11:40:53 PM ) Total Marks: 1
Which one of the following is true for financial intermediaries?
Select correct option:
Channel funds from savers to borrowers
Greatly enhance economic efficiency
Have been an source of many financial innovations
All of the given options
Answer=1
Question # 15 of 15 ( Start time: 11:41:27 PM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Answer=4
Question # 1 of 15 ( Start time: 11:46:56 PM ) Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:
Coupon rate
Yield to maturity
Current yield
Internal rate of return
Answer=2
Question # 2 of 15 ( Start time: 11:47:50 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
Coupon payments fall, the interest rate falls, and Bond price will fall
Coupon payments rise, the interest rate falls, and Bond price will fall
Answer=2
Question # 3 of 15 ( Start time: 11:48:54 PM ) Total Marks: 1
GDP deflator is called
Select correct option:
Retailer price index
Consumer price index
Producer price index
None of above
Answer=4
Question # 4 of 15 ( Start time: 11:49:26 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
Answer=1
Question # 5 of 15 ( Start time: 11:50:01 PM ) Total Marks: 1
Which characteristic are common both in money and securities
Select correct option:
Transfer of risk, store of value
Unit of account, mean of payment
Mean of payment, transfer of risk
Store of value, mean of payment
Answer=4
Question # 6 of 15 ( Start time: 11:50:50 PM ) Total Marks: 1
Spreading involves:
Select correct option:
Finding assets whose returns are perfectly negatively correlated
Building a portfolio of assets whose returns move together
Investing in bonds and avoiding stocks during bad times
Adding assets to a portfolio that move independently
Answer=4
Question # 7 of 15 ( Start time: 11:51:35 PM ) Total Marks: 1
Saving occurs normally in ……….
Select correct option:
Early age
Middle age
Old age
None of above
Answer=2
Quiz Start Time: 11:46 PM Time Left 85
sec(s)
Question # 8 of 15 ( Start time: 11:52:01 PM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
Select correct option:
Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit
Answer=2
Question # 9 of 15 ( Start time: 11:53:13 PM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:
Financial company
Financial institution
Financial market
Bank
Answer=3
Question # 10 of 15 ( Start time: 11:53:55 PM ) Total Marks: 1
Which of the following would be considered characteristic of money?
Select correct option:
It is store of value
It pays a higher return than most assets
It is in fixed supply
It is legal tender everywhere in the world
Answer=1
Question # 11 of 15 ( Start time: 11:54:31 PM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Answer=3
Question # 12 of 15 ( Start time: 11:55:12 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
Answer=2
Question # 13 of 15 ( Start time: 11:55:38 PM ) Total Marks: 1
If YTM is greater than the coupon rate the price of the bond is ________.
Select correct option:
Greater than its face value
Lower than its face value
Equals to its face value
All of the given options
Answer=2
Question # 14 of 15 ( Start time: 11:56:33 PM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:
M1
M2
M3
None of above
Answer=2
Question # 15 of 15 ( Start time: 11:57:04 PM ) Total Marks: 1
_________ is the value today of a payment that is promised to be made in the future.
Select correct option:
Future value
Present value
Agreed value
None of the given options
Answer=1
Question # 1 of 15 ( Start time: 12:07:09 AM ) Total Marks: 1
Investors will hold higher compensation for the ________ investment.
Select correct option:
More risky
Less risky
Fixed return
Less dividend
Answer=1
# 2 of 15 ( Start time: 12:08:01 AM ) Total Marks: 1
The risk premium for an investment:
Select correct option:
Increases with risk
Is a fixed amount added to the risk free return
Is negative for U.S. Treasury Securities
Is negative for risk averse investors
Answer=3
Question # 3 of 15 ( Start time: 12:08:46 AM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:
Financial company
Financial institution
Financial market
Bank
Answer=3
Question # 4 of 15 ( Start time: 12:09:48 AM ) Total Marks: 1
We need ________ to carry out day to day transactions.
Select correct option:
Money
Bonds
Stocks
Loans
Answer=1
Question # 5 of 15 ( Start time: 12:10:18 AM ) Total Marks: 1
Which of the following would be included in a definition of risk?
Select correct option:
Risk is a not measure of uncertainty
Risk is unavoidable
Risk doesn't have a time horizon
Risk seldom involves some future payoff
Answer=1
Question # 6 of 15 ( Start time: 12:11:38 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Answer=3
Question # 7 of 15 ( Start time: 12:13:02 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Answer=3
Question # 8 of 15 ( Start time: 12:14:11 AM ) Total Marks: 1
Which of the following is the least liquid of all?
Select correct option:
Money
Bonds & stocks
Lands & buildings
None of the given options
Answer=3
Question # 9 of 15 ( Start time: 12:14:37 AM ) Total Marks: 1
The current yield on a $10,000, 5% coupon bond selling for $8,000 is:
Select correct option:
5.00%
6.25%
7.50%
8.00%
Answer=2
Question # 10 of 15 ( Start time: 12:16:09 AM ) 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.
Answer=1
Question # 11 of 15 ( Start time: 12:16:39 AM ) Total Marks: 1
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Answer=1
Question # 12 of 15 ( Start time: 12:17:22 AM ) Total Marks: 1
Internal Rate of Return is _______.
Select correct option:
Present value of investment
Future value of its investment +Cost of investment
Cost of investment
Present value of investment + cost of investment
Answer=4
Question # 13 of 15 ( Start time: 12:19:14 AM ) Total Marks: 1
If YTM equals the coupon rate the price of the bond is ________.
Select correct option:
Greater than its face value
Lower than its face value
Equals to its face value
Insufficient information
Answer=3
Question # 14 of 15 ( Start time: 12:20:49 AM ) Total Marks: 1
Which of the following best expresses the proceeds a lender receives from a simple loan?
Select correct option:
PV(1 + i)
FV/i
PV + i
PV/i
Answer=1
Question # 15 of 15 ( Start time: 12:21:18 AM ) Total Marks: 1
Mark borrows $8,000 and then repays $8,600 to ABC bank. What is the amount of interest in this payment?
Select correct option:
$600
$500
$400
$100
Answer=1
of the following best expresses the payment a lender receives for lending their money for four years?
Select correct option:
PV(1+i)4
PV/(1 + i)4
4PV
PV/(1 - i)4
Answer=1
If YTM is greater than the coupon rate the price of the bond is ________.
Select correct option:
Greater than its face value
Lower than its face value
Equals to its face value
All of the given options
Answer=2
Which of the following best describes checks?
Select correct option:
A means of payment
Money
Not a promise of any kind
Not acceptable by the U.S. Government for payment of taxes.
Answer=1
longer the time (n) until the payment:
Select correct option:
The lower the present value
The higher the present value because time is valuable
The lower must be the interest rate
Time has no effect on present value
Answer=2
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Answer=2
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Answer=4
Spreading involves:
Select correct option:
Finding assets whose returns are perfectly negatively correlated
Building a portfolio of assets whose returns move together
Investing in bonds and avoiding stocks during bad times
Adding assets to a portfolio that move independently
Answer=4
Which of the following best expresses the proceeds a lender receives from a simple loan?
Select correct option:
PV(1 + i)
FV/i
PV + i
PV/i
Answer=1
The return on the bond is equal to which of the following?
Select correct option:
Coupon rate + rate of capital gains
Current yield + rate of capital gains
Coupon rate - rate of capital gains
Current yield - rate of capital gains
Answer=2
# 10 of 15 ( Start time: 12:39:09 AM ) Total Marks: 1
If the annual interest rate is 6%, the price of a 1-year Treasury bill with $100 face value would be:
Select correct option:
$94.00
$94.33
$95.25
$96.10
Answer=2
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
Answer=2
The risk premium for an investment:
Select correct option:
Increases with risk
Is a fixed amount added to the risk free return
Is negative for U.S. Treasury Securities
Is negative for risk averse investors
Answer=1
When the price of a bond is above face value:
Select correct option:
The yield to maturity will be above the coupon rate
The yield to maturity is below the coupon rate
The yield to maturity will equal zero
The yield to maturity will equal the coupon rate
Answer=2
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.
Answer=1
Question # 15 of 15 ( Start time: 12:44:12 AM ) Total Marks: 1
Which of the following financial instruments used primarily as store of value?
Select correct option:
Options
Stocks
Home mortgage
Bonds
Answer=4
Question # 15 of 15 ( Start time: 12:45:33 AM ) Total Marks: 1
________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:
Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest
Answer=2
Which of the following financial instruments used primarily as store of value?
Select correct option:
Options
Stocks
Home mortgage
Bonds
Answer=4
Question # 3 of 15 ( Start time: 12:49:28 AM ) 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
Answer=2
Question # 6 of 15 ( Start time: 12:52:07 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Answer=3
Question # 7 of 15 ( Start time: 12:52:36 AM ) Total Marks: 1
The relationship between the price and the interest rate for a zero coupon bond is best described as:
Select correct option:
Volatile
Stable
Non-existent
Inverse
Answer=4
Question # 8 of 15 ( Start time: 12:52:51 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Answer=3
Question # 9 of 15 ( Start time: 12:53:11 AM ) Total Marks: 1
What characteristic of money is not included in securities characteristics
Select correct option:
Mean of payment
Unit of account
Store of value
Transfer of risk
Answer=1
Question # 10 of 15 ( Start time: 12:53:32 AM ) Total Marks: 1
Which of the following financial instruments used primarily as store of value?
Select correct option:
Options
Stocks
Home mortgage
Bonds
Answer=4
Question # 11 of 15 ( Start time: 12:53:57 AM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
Select correct option:
Stock
Bond
Loan
Cheque
Answer=2
Question # 12 of 15 ( Start time: 12:54:21 AM ) Total Marks: 1
If the annual interest rate is 6%, the price of a 1-year Treasury bill with $100 face value would be:
Select correct option:
$94.00
$94.33
$95.25
$96.10
Answer=2
Question # 13 of 15 ( Start time: 12:54:38 AM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:
Risk
Probability
Frequency
Outcom
Answer=2
Question # 14 of 15 ( Start time: 12:55:44 AM ) Total Marks: 1
GDP deflator is called
Select correct option:
Retailer price index
Consumer price index
Producer price index
None of above
Answer=4
Question # 15 of 15 ( Start time: 12:56:17 AM ) Total Marks: 1
Which of the following are used to monitor and stabilize the economy?
Select correct option:
Stock exchanges
Commercial Banks
Central Banks
Financial institutions
Answer=3
Question # 1 of 15 ( Start time: 12:58:32 AM ) Total Marks: 1
What is primary cause of inflation?
Select correct option:
Energy crises
Gold reserve shortage
Issue excessive currency
Rising cost of input
Answer=3
Question # 2 of 15 ( Start time: 12:59:02 AM ) 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.
Answer=1
Question # 3 of 15 ( Start time: 12:59:33 AM ) Total Marks: 1
A loan that is used to purchase the real estate is known as:
Select correct option:
Real estate loan
Home mortgages
Fixed payment loan
Home loan
Answer=3
Question # 4 of 15 ( Start time: 01:00:04 AM ) Total Marks: 1
If the annual interest rate is 6%, the price of a 1-year Treasury bill with $100 face value would be:
Select correct option:
Answer=2
Question # 5 of 15 ( Start time: 01:00:22 AM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Answer=4
Question # 6 of 15 ( Start time: 01:00:55 AM ) Total Marks: 1
If YTM is greater than the coupon rate the price of the bond is ________.
Select correct option:
Greater than its face value
Lower than its face value
Equals to its face value
All of the given options
Answer=2
Question # 7 of 15 ( Start time: 01:01:56 AM ) Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:
Coupon rate
Yield to maturity
Current yield
Internal rate of return
Answer=2
Question # 8 of 15 ( Start time: 01:02:24 AM ) Total Marks: 1
When the price of a bond is above face value:
Select correct option:
The yield to maturity will be above the coupon rate
The yield to maturity is below the coupon rate
The yield to maturity will equal zero
The yield to maturity will equal the coupon rate
Answer=2
Question # 9 of 15 ( Start time: 01:03:05 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
Select correct option:
Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options
Answer=4
Question # 10 of 15 ( Start time: 01:04:04 AM ) 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
Answer=2
Question # 11 of 15 ( Start time: 01:04:34 AM ) Total Marks: 1
A zero coupon bond:
Select correct option:
Does not pay any coupon payments because the issuer is in default
Pays coupons only once a year versus the usual twice a year
Promises a single future payment
Pays coupons only if the bond price is below face value
Answer=3
Question # 13 of 15 ( Start time: 01:05:49 AM ) Total Marks: 1
When the auto manufacturing industry does poorly due to a recession this is an example of:
Select correct option:
Idiosyncratic risk
Systematic risk
Risk premium
Unique risk
Answer=1
Question # 14 of 15 ( Start time: 01:06:25 AM ) Total Marks: 1
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Answer=1
Question # 15 of 15 ( Start time: 01:06:54 AM ) Total Marks: 1
Which of the following is NOT an example of financial institutions?
Select correct option:
Banks
Securities firms
Stock exchanges
Insurance companies
Answer=3
Question # 2 of 15 ( Start time: 01:08:38 AM ) Total Marks: 1
________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:
Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest
Answer=2
Question # 3 of 15 ( Start time: 01:09:21 AM ) Total Marks: 1
A zero coupon bond:
Select correct option:
Does not pay any coupon payments because the issuer is in default
Pays coupons only once a year versus the usual twice a year
Promises a single future payment
Pays coupons only if the bond price is below face value
Answer=3
Question # 4 of 15 ( Start time: 01:09:56 AM ) Total Marks: 1
Which of the following represents the fisher’s equation?
Select correct option:
Nominal interest rate = real interest rate + inflation
Nominal interest rate + inflation = real interest rate
Nominal interest rate = real interest rate - inflation
Nominal interest rate = real interest rate / inflation
Answer=1
Question # 5 of 15 ( Start time: 01:10:34 AM ) Total Marks: 1
The risk premium for an investment:
Select correct option:
Increases with risk
Is a fixed amount added to the risk free return
Is negative for U.S. Treasury Securities
Is negative for risk averse investors
Answer=1
Question # 6 of 15 ( Start time: 01:11:11 AM ) Total Marks: 1
Which of the variable measured in point of time?
Select correct option:
Flow variable
Stock variable
Both flow variable and stock variable
None of above
Answer=3
Question # 7 of 15 ( Start time: 01:11:50 AM ) Total Marks: 1
Time affects the value of which of the following?
Select correct option:
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Answer=1
Question # 8 of 15 ( Start time: 01:12:26 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Answer=3
Question # 9 of 15 ( Start time: 01:13:06 AM ) Total Marks: 1
Sum of all the probabilities should be equal to which one of the following?
Select correct option:
Zero
One
Two
Three
Answer=2
Question # 10 of 15 ( Start time: 01:13:30 AM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
Select correct option:
Stock
Bond
Loan
Cheque
Answer=2
Question # 11 of 15 ( Start time: 01:13:54 AM ) Total Marks: 1
Mr A need 1000000 to buy a car for his personal use he contact with bank that give his loan this would be called
Select correct option:
Direct finance
Indirect finance
Facilitate payment
All of above
Answer=1
Question # 12 of 15 ( Start time: 01:14:24 AM ) Total Marks: 1
Which of the following best expresses the proceeds a lender receives from a simple loan?
Select correct option:
PV(1 + i)
FV/i
PV + i
PV/i
Answer=1
Question # 13 of 15 ( Start time: 01:15:02 AM ) Total Marks: 1
What will be the result of the difference of real and nominal interest rate?
Select correct option:
The cost of borrowing
The effect of inflation
The price of bonds
The return of bonds
Answer=2
Question # 14 of 15 ( Start time: 01:15:43 AM ) Total Marks: 1
Which of the following institution take direct deposit from customer and give loan to customer directly?
Select correct option:
Zarai Tarkaytee Bank LTD
Soneri Bank
Khushali Bank
Credit union
Answer=4
Quiz Start Time: 01:07 AM
Time Left 88
sec(s)
Question # 15 of 15 ( Start time: 01:16:33 AM ) Total Marks: 1
Economic development measured by
Select correct option:
Real GDP/population
Real GDP/ nominal GDP
Real GDP/Real GNP
None of above
Answer=4
Question # 1 of 15 ( Start time: 01:17:45 AM ) Total Marks: 1
A loan that is used to purchase the real estate is known as:
Select correct option:
Real estate loan
Home mortgages
Fixed payment loan
Home loan
Answer=3
Question # 2 of 15 ( Start time: 01:18:28 AM ) Total Marks: 1
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:
Discounting
Compounding
Time value of money
Bond pricing
Answer=1
Question # 3 of 15 ( Start time: 01:18:57 AM ) Total Marks: 1
The GDP deflator is calculated as_________.
Select correct option:
Nominal GDP/Real GDP *100
Real GDP/Nominal GDP
Nominal GDP – Real GDP
Real GDP – Nominal GDP
Answer=1
Question # 4 of 15 ( Start time: 01:19:17 AM ) Total Marks: 1
When the auto manufacturing industry does poorly due to a recession this is an example of:
Select correct option:
Idiosyncratic risk
Systematic risk
Risk premium
Unique risk
Answer=1
Question # 5 of 15 ( Start time: 01:19:49 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Answer=3
Question # 6 of 15 ( Start time: 01:20:22 AM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
Select correct option:
Stock
Bond
Loan
Cheque
Answer=2
Question # 7 of 15 ( Start time: 01:20:42 AM ) Total Marks: 1
Which of the following represents the fisher’s equation?
Select correct option:
Nominal interest rate = real interest rate + inflation
Nominal interest rate + inflation = real interest rate
Nominal interest rate = real interest rate - inflation
Nominal interest rate = real interest rate / inflation
Answer=1
Question # 8 of 15 ( Start time: 01:21:03 AM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
Select correct option:
Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit
Answer=2
Question # 9 of 15 ( Start time: 01:21:23 AM ) Total Marks: 1
Which is broadly used as money aggregate?
Select correct option:
M1
M2
M3
None of above
Answer=2
Question # 10 of 15 ( Start time: 01:21:47 AM ) Total Marks: 1
What is primary cause of inflation?
Select correct option:
Energy crises
Gold reserve shortage
Issue excessive currency
Rising cost of input
Answer=3
Question # 11 of 15 ( Start time: 01:22:04 AM ) Total Marks: 1
Bonds without maturity dates are which of the followings?
Select correct option:
Zero coupon bonds
Coupon securities
Consols
Preferred Bonds
Answer=3
Question # 12 of 15 ( Start time: 01:22:26 AM ) Total Marks: 1
A risk-averse investor will:
Select correct option:
Always prefer an investment with a lower expected return
Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty
Always require a certain return
Always focus exclusively on the expected return
Answer=2
Question # 13 of 15 ( Start time: 01:22:48 AM ) Total Marks: 1
When the price of a bond is above face value:
Select correct option:
The yield to maturity will be above the coupon rate
The yield to maturity is below the coupon rate
The yield to maturity will equal zero
The yield to maturity will equal the coupon rate
Answer=2
Question # 14 of 15 ( Start time: 01:23:13 AM ) Total Marks: 1
Saving occurs normally in ……….
Select correct option:
Early age
Middle age
Old age
None of above
Answer=2
Question # 15 of 15 ( Start time: 01:23:49 AM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:
Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
Answer=1
Question # 1 of 15 ( Start time: 01:24:40 AM ) Total Marks: 1
Saving occurs normally in ……….
Select correct option:
Early age
Middle age
Old age
None of above
Answer=2
Question # 2 of 15 ( Start time: 01:24:54 AM ) Total Marks: 1
Core principles of Money and Banking include each of the following except?
Select correct option:
People act rationally
Time has value
Information is the basis for decisions
Risk requires compensation
Answer=2
Question # 3 of 15 ( Start time: 01:25:13 AM ) Total Marks: 1
One of major disadvantage of fiat money is
Select correct option:
Only few resources are needed
It may be theft easily
Normally it is obsolete quickly
Pressure or corrupt government may print excessive money
Answer=4
Question # 4 of 15 ( Start time: 01:25:53 AM ) Total Marks: 1
Mr A need 1000000 to buy a car for his personal use he contact with bank that give his loan this would be called
Select correct option:
Direct finance
Indirect finance
Facilitate payment
All of above
Answer=1
Question # 5 of 15 ( Start time: 01:26:13 AM ) Total Marks: 1
Government bonds called …….. Where as corporate bonds are called ……
Select correct option:
Zero coupon bond, coupon bond
Risky bond. Risk free bond
T bill, corporate bond
Console bond, junk bonds
Answer=1
Question # 6 of 15 ( Start time: 01:26:27 AM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:
Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
Answer=1
Question # 7 of 15 ( Start time: 01:26:57 AM ) Total Marks: 1
Which characteristic are common both in money and securities
Select correct option:
Transfer of risk, store of value
Unit of account, mean of payment
Mean of payment, transfer of risk
Store of value, mean of payment
Answer=4
Question # 8 of 15 ( Start time: 01:27:35 AM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:
C
M1
M2
M3
Answer=2
Question # 9 of 15 ( Start time: 01:27:52 AM ) Total Marks: 1
At which money aggregate definitions relation is stronger with inflation and growth
Select correct option:
M1
M2
M3
None of above
Answer=2
Question # 10 of 15 ( Start time: 01:28:16 AM ) Total Marks: 1
A financial instrumnet in which a borrower obtains resources from a lender immediately in exchange for a promised set of payments in the future is called as _________.
Select correct option:
Bond
Bank Loan
Home Mortgage
Futures Contract
Answer=2
Question # 11 of 15 ( Start time: 01:28:34 AM ) Total Marks: 1
Internal Rate of Return is _______.
Select correct option:
Present value of investment
Future value of its investment +Cost of investment
Cost of investment
Present value of investment + cost of investment
Answer=4
Question # 12 of 15 ( Start time: 01:28:53 AM ) Total Marks: 1
Which of the following financial instruments used primarily as store of value?
Select correct option:
Options
Stocks
Home mortgage
Bonds
Answer=2
Question # 13 of 15 ( Start time: 01:29:11 AM ) Total Marks: 1
What will be the effect on the present value if we double the future value of the payment?
Select correct option:
It will decrease the value by one-half
It will increase the value by one-half
It will equally increase the value i.e. doubles the value
It will have no effect on the value
Answer=3
Question # 14 of 15 ( Start time: 01:30:03 AM ) Total Marks: 1
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:
Discounting
Compounding
Time value of money
Bond pricing
Answer=1
Question # 15 of 15 ( Start time: 01:30:20 AM ) Total Marks: 1
A loan that is used to purchase the real estate is known as:
Select correct option:
Real estate loan
Home mortgages
Fixed payment loan
Home loan
Answer=3
Question # 2 of 15 ( Start time: 01:38:29 AM ) Total Marks: 1
Which characteristic are common both in money and securities
Select correct option:
Transfer of risk, store of value
Unit of account, mean of payment
Mean of payment, transfer of risk
Store of value, mean of payment
Answer=4
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