Top 150+ Solved Advanced Financial Management 2 MCQ Questions Answer
Q. There is a close link between the interest rates in two countries and the forward ratepremium or discount. The theory about this is :
a. Purchasing Power Parity
b. Expectations Theory
c. Covered Interest Arbitrage and interest Rate Parity
d. None of the above.
Q. According to Fisher effect, the nominal rate is equal to the real interest rate plus anadjustment for ______________
a. FD Rate
b. Spot Rate
c. Inflation
d. Premium
Q. The acquisition of existing firms or plants as a means of FDI is called ___________.
a. Green Field Investments
b. Dark Zone Investments
c. Growing Zone Investments
d. Brown Field Investments
Q. McDonald’s purchasing farms in India to grow potatoes is which type of FDI?
a. Green Field
b. Agriculture
c. Vertical
d. Horizontal
Q. When an American Company acquires a division or unit of Indian company, the US issaid to be a ______________ Country.
a. Sending
b. Receiving
c. Promoting
d. None of the above
Q. An act of buying currency in one market at a lower price and selling it in another at higher price resulting in equilibrium in exchange rates of different currencies is called _________________.
a. Hedging
b. Speculation
c. Trading
d. Arbitrage
Q. Which of these are considered as nerve centres of foreign exchange activity.
a. London, New York and Tokyo
b. London, New Jersey and Mumbai
c. London, New York and Moscow
d. London, New York and Delhi
Q. Who are key participants of Foreign Exchange Market?
a. Importers & Exporters
b. Traders and Foreign Exchange Brokers
c. Speculators
d. All of the above
Q. When the exposed position in a foreign currency is covered through borrowing orlending in the money market, it is called ______________.
a. Borrowing-Lending technique
b. Futures Contract
c. Currency Swap
d. Money Market Hedge
Q. An efficient Capital Market provides operational efficiency through…
a. Simplified transaction procedure
b. Lowering settlement timings
c. Lowering transaction costs
d. All of the above
Q. Full form of WDM segment is ………..
a. Wholesale Debt Market
b. Wholesale Debenture Market
c. Wholesale Demand Management
d. Wholesale Deposit Market
Q. A facility of carrying forward the transaction from one settlement to another in BSE wascalled _______
a. Carry forward
b. Badla
c. Vayda
d. Forward
Q. For Book Building Process a merchant banker is appointed as a __________
a. Book Keeper
b. Book Writer
c. Book Runner
d. None of the Above
Q. Which one of the below is NOT a category of participant in the Primary Capital Market?
a. Issuers of securities
b. Investors in securities.
c. Traders of securities
d. Intermediaries
Q. Which of the below financial product / instrument cab be traded in the secondarymarket?
a. Equity Shares
b. Commercial Paper
c. Bonds
d. All of the above