Top 350+ Solved Financial Markets and Institutions MCQ Questions Answer
Q. In primary markets, property of shares which made it easy to sell newly issued security isconsidered as
a. increased liquidity
b. decreased liquidity
c. money flow
d. large funds
Q. Liquidity status of certificate of deposit which is more negotiable is considered as
a. certified liquidity
b. term liquidity
c. more liquid
d. less liquid
Q. Commercial paper issued with low interest rate thus commercial paper are categorized as
a. payables rating
b. commercial rating
c. poor credit rating
d. better credit rating
Q. Maximum maturity days of holding commercial paper are
a. 170 days
b. 270 days
c. 120 days
d. 5 days
Q. In borrowing and lending of federal funds, federal funds rate is result of function between
a. assets and liability
b. cost and marketing
c. supply and demand
d. income and expense
Q. A "hybrid" fund is one that:
a. invests in both bonds and stocks
b. started as a closed-end investment company, but changed to a mutual fund
c. has different "loads" for different classes of investors in the fund
d. can serve as an investment vehicle, but also provides check-writing privileges.
Q. A mutual fund that invests solely in stocks would be categorized as a/an:
a. bond fund
b. fixed income fund
c. money market fund
d. equity fund
Q. A large number (about 25%) of long-term mutual funds are _____________ funds, buying securities in proportions similar to those of a major stock index.
a. small cap
b. large cap
c. fixed income
d. index
Q. The bulk of the nation's money supply is created within the private banking system and is sometimes called:
a. inside money
b. net money
c. base money
d. outside money
Q. A type of bank account designed to compete with money market mutual funds, and having limited check-writing services, is known as:
a. wholesale CDs
b. demand deposit
c. repurchase agreement
d. NOW account
Q. __________would encompass fees received by the bank, but not revenues comingfrom interest charges on loans.
a. Net interest margin
b. Spread
c. Non interest income
d. Non interest expense
Q. Another name used for a bank income statement is:
a. report of income
b. statement of retained earnings
c. overhead efficiency report
d. report of condition
Q. Which of the following is an advantage to investors of an open-end mutual fund?
a. Once all the shares have been sold, the investor does not have to put in more money.
b. The investors can sell their shares in the over-the-counter market with low transaction fees.
c. The fund agrees to redeem shares at any time.
d. The market value of the fund’s shares may be higher than the value of the assets held by the fun
Q. In --------------- Securities share bond debentures are offered to the public for subscription for raising capital or fund.
a. Prime Securities
b. Public Securities
c. Preferred Securities
d. Primary Securities