Top 350+ Solved Financial Markets and Institutions MCQ Questions Answer
Q. Consider buying of put option, probability that a buyer would have negative payoff increases with the
a. increase in stock price
b. decrease in stock price
c. increase in maturity duration
d. decrease in maturity duration
Q. Price of an option is subtracted form time value of option to calculate
a. book value index
b. market index
c. intrinsic value
d. extrinsic value
Q. If intrinsic value of an option is $450 and price of an option is $560 then time value of anoption is
a. $110
b. $1,010
c. $450.00
d. $560
Q. Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
a. float-fixed swaps
b. interest rate swaps
c. indexed swaps
d. counter party swaps
Q. Type of bonds that pay coupon interest are classified as
a. forward bond
b. payment bonds
c. coupon bond
d. interest bonds
Q. For given change in interest rates, percentage change in present value of bond is classified as
a. price sensitivity
b. yield sensitivity
c. maturity sensitivity
d. premium sensitivity
Q. Type of bond whose present value is lesser than that of its face value is classified as
a. discount bond
b. premium bond
c. coupon bond
d. interest bonds
Q. For an investment, weighted average time to maturity is considered as
a. premium time
b. standard time
c. mean time
d. duration
Q. Bonds that does not pay any interest rate are considered as
a. interest free bond
b. zero coupon bond
c. price less coupon bond
d. useless price bonds
Q. Which of the following is not a characteristic feature of venture capital firms?
a. Funding just one or a small number of firms.
b. Holding equity in the firms that are funded.
c. Having a long-term investment horizon.
d. Providing advice and assistance to the firms that are funde
Q. Which of the following is a characteristic feature of venture capital firms?
a. Developing a portfolio of companies.
b. Holding debt in the firms that are funded.
c. Allowing firms to use the funds as they see fit.
d. Having a short-term investment horizon.
Q. _______ is a link between savers & borrowers, helps to establish a link between savers &investors
a. Marketing
b. Financial market
c. Money market
d. None of these
Q. Which of the following is the function of financial market?
a. Mobilization of savings
b. Price fixation
c. Provide liquidity to financial assets
d. All of the above
Q. __________ is the organisations, institutions that provide long term funds.
a. Capital market
b. Money market
c. Primary market
d. Secondary market
Q. When securities are allotted to institutional investors & some selected individuals isreferred to as _________.
a. Initial public offer
b. Offer through prospectus
c. Private placement
d. Offer for sale