Top 350+ Solved Investment Management MCQ Questions Answer

From 271 to 285 of 328

Q. The buyer or holder of the option purchases the right from the seller for a consideration called;

a. remuneration

b. premium

c. discount

d. none of the above

  • b. premium

Q. ______________is a financial contract, between two or more parties, whose value is derived fromthe future value of an underlying asset.

a. forward contract

b. future contract

c. options

d. derivative contract

  • d. derivative contract

Q. _____________ use derivatives markets to reduce or eliminate the risk associated with price of anasset

a. speculator

b. arbitragers

c. hedgers

d. none of these

  • c. hedgers

Q. In ____________Derivatives, underlying asset can be commodities.

a. share

b. rupee

c. commodity

d. none of these

  • c. commodity

Q. ______________ contract is a one to one bipartite contract, which is to be performed in future atthe terms decided today.

a. forward contract

b. future contract

c. options

d. none of the above

  • a. forward contract

Q. ____________ contracts are standardized and hence traded in stock exchanges

a. forward contract

b. future contract

c. options

d. none of the above

  • b. future contract

Q. No credit risk involved in __________ contract because of the involvement of clearing house.

a. forward contract

b. future contract

c. options

d. none of the above

  • b. future contract

Q. Futures are highly standardized, whereas each ____________ is unique

a. forward contract

b. future contract

c. options

d. none of the above

  • a. forward contract

Q. The following one is a financial asset

a. gold

b. silver

c. shares

d. land

  • c. shares

Q. Goverenment bond is a

a. short term security

b. long term security

c. medium term security

d. either short term and long term security

  • c. medium term security

Q. The certificate which evidences an unsecured corporate debt of short term maturity is

a. short term loan certificate

b. certificate of deposits

c. interbank participation certificate

d. commercial paper

  • d. commercial paper
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