Top 350+ Solved Financial Markets and Institutions MCQ Questions Answer
Q. ACE Derivatives Exchange Ltd is the commodity exchange developed in---------
a. America
b. Australia
c. Afghanistan
d. None of these
Q. Which of the following statements is false?
a. A bond issuer must pay periodic interest.
b. Bond prices remain fixed over time.
c. Bonds carry no corporate ownership privileges.
d. A bond is a financial contract.
Q. Which of the following statements is true?
a. Low inflation is expected to have a negative effect on bond prices.
b. Generally speaking, bonds are riskier than common stocks.
c. Bonds are usually less liquid than stocks.
d. A bondholder repays principal when the bond matures.
Q. Most bonds:
a. are money market securities.
b. give bondholders a voice in the affairs of the corporation.
c. are interest-bearing obligations of governments or corporations.
d. are floating-rate securities.
Q. Which of the following is not an advantage of investing in bonds?
a. Bonds have unlimited profit potential.
b. Bond investments are relatively safe from large losses.
c. Bonds are good sources of current income.
d. Bondholders receive their payments before shareholders can be compensate
Q. Which of the following is a capital market security?
a. Treasury bills.
b. Federal funds.
c. Federal agency bonds.
d. Eurodollars.
Q. Which of the following is a money market security?
a. Repurchase agreements.
b. Municipal bonds.
c. Mortgages.
d. U.S. Treasury notes.
Q. Corporations borrow for the short term by issuing:
a. corporate bills.
b. corporate bonds.
c. commercial paper.
d. bankers’ acceptances.
Q. What is used to quote the rates on Eurodollar deposits?
a. Discount rate.
b. Federal funds rate.
c. Repo rate.
d. LIBOR.
Q. Which of the following provides income that is fully exempt from taxation for the individualinvestor?
a. Municipal bonds.
b. Preferred stocks.
c. Treasury notes.
d. Treasury bills.
Q. Which of the following is a residual claim on a firm’s assets?
a. Preferred stock.
b. Common stock.
c. Preference shares.
d. Participating preferred stock.
Q. Which of the following occurs four trading days before the date of record?
a. Distribution date.
b. Payment date.
c. Declaration date.
d. Ex-dividend date.
Q. Which of the following types of assets is least risky?
a. Short-term corporate bonds
b. Long-term corporate bonds.
c. Stocks.
d. Options and futures.
Q. Which of the following types of assets offers the highest expected return?
a. Stocks.
b. Long-term government bonds.
c. Options and futures.
d. Long-term corporate bonds.