Top 350+ Solved Financial Services MCQ Questions Answer
Q. Financial intermediaries exist because small investors cannot efficiently ________.
a. Diversify their portfolios
b. Gather all relevant information
c. Assess credit risk of borrowers
d. All of the above
Q. Firms that specialize in helping companies raise capital by selling securities are called---
a. Commercial banks
b. Merchant banks
c. Savings banks
d. Credit unions
Q. Financial assets ______.
a. Directly contribute to the country's productive capacity
b. Indirectly contribute to the country's productive capacity
c. Contribute to the country's productive capacity both directly and indirectly.
d. Do not contribute to the country's productive capacity either directly or indirectly.
Q. The sale of a mortgage portfolio by setting up mortgage pass-through securities is anexample of ________.
a. Credit enhancement
b. Securitization.
c. Unbundling
d. Derivatives.
Q. Merchant bankers perform the following role(s) ___________.
a. Market new stock and bond issues for firms.
b. Provide advice to the firms as to market conditions, price, etc.
c. Provide consultancy services for expansion etc
d. All of the above
Q. The means by which individuals hold their claims on real assets in a well-developedeconomy are ___________.
a. Investment assets
b. Depository assets
c. Derivative assets
d. Financial assets
Q. Commercial banks differ from other businesses in that both their assets and theirliabilities are mostly ________.
a. Illiquid
b. Financial.
c. Real.
d. Owned by the government
Q. Although derivatives can be used as speculative instruments, businesses most often usethem to _________.
a. Attract customers
b. Appease stockholders.
c. Offset debt.
d. Hedge.
Q. A fixed-income security pays ____________.
a. A fixed level of income for the life of the owner.
b. A fixed level of income for the life of the security.
c. A variable level of income for owners on a fixed income
d. A fixed or variable income stream at the option of the owner.
Q. Money market securities ____________.
a. Are short term.
b. Are highly marketable
c. Generally very low risk.
d. All of the above
Q. A mutual fund in which shares are issued only when the fund is organized is called a________fund.
a. Closed-end.
b. Load.
c. No-load
d. Open-end
Q. The value of the mutual fund's portfolio minus the mutual fund's liabilities divided bythe number of shares outstanding is called the:.
a. Book value
b. Outstanding balance
c. Per share value
d. Net asset value.
Q. When one investment company manages a group of mutual funds, it is called a(n):.
a. Family funds
b. Exchange fund
c. Diversification fund
d. Versatility fund
Q. -------- certificate under securitisation have multiple maturity structure.
a. Pass through certificate
b. Pay through certificate
c. Preferred stock certificate
d. Interest only certificate
Q. -------- certificate under securitisation have single maturity structure.
a. Pass through certificate
b. Pay through certificate
c. Preferred stock certificate
d. Principle only certificate