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MCQs

Total Questions : 156 | Page 4 of 16 pages
Question 31. The accounts receivable and inventory are examples of
  1.    short term working capital
  2.    long term working capital
  3.    long term fixed assets
  4.    short term fixed assets
 Discuss Question
Answer: Option A. -> short term working capital
Answer: (a).short term working capital
Question 32. The earned interest rate which is reinvested in other investment is classified as
  1.    compound interest
  2.    investment risk
  3.    interest rate
  4.    stated rate
 Discuss Question
Answer: Option A. -> compound interest
Answer: (a).compound interest
Question 33. The expected rate that originates at any point in future for a specific security is classified as
  1.    forward rate
  2.    backward rate
  3.    termed rate
  4.    structured rate
 Discuss Question
Answer: Option A. -> forward rate
Answer: (a).forward rate
Question 34. The liquidity premium theory, unbiased expectations theory and market segmentation theory are the theories to describe
  1.    term structure of segmentation
  2.    term structure of interest rate
  3.    term structure of premium
  4.    term structure of inflation
 Discuss Question
Answer: Option B. -> term structure of interest rate
Answer: (b).term structure of interest rate
Question 35. If the risk of financial security decreases and the supply curve shifts to the right and downwards then the impact on equilibrium of interest rate must
  1.    remain constant
  2.    fluctuate
  3.    decreases
  4.    increases
 Discuss Question
Answer: Option C. -> decreases
Answer: (c).decreases
Question 36. The theory which considers the change in exchange rate with the fluctuations in inflation rates is classified as
  1.    liquidated power parity
  2.    purchasing power parity
  3.    selling power parity
  4.    volatile power parity
 Discuss Question
Answer: Option B. -> purchasing power parity
Answer: (b).purchasing power parity
Question 37. In primary markets, the first time issued shares to be publicly traded, in stock markets is considered as
  1.    traded offering
  2.    public markets
  3.    issuance offering
  4.    initial public offering
 Discuss Question
Answer: Option D. -> initial public offering
Answer: (d).initial public offering
Question 38. The inflation rate in United States is added into real rate of interest to calculate
  1.    quoted interest rate in United States
  2.    nominal interest rate in United States
  3.    interest rate in United States
  4.    discount rate of country
 Discuss Question
Answer: Option C. -> interest rate in United States
Answer: (c).interest rate in United States
Question 39. The transaction cost of trading of financial instruments in centralized market is classified as
  1.    flexible costs
  2.    low transaction costs
  3.    high transaction costs
  4.    constant costs
 Discuss Question
Answer: Option B. -> low transaction costs
Answer: (b).low transaction costs
Question 40. The position which came in to existence because of holding assets more than liabilities is considered as
  1.    net long in currency
  2.    net short in currency
  3.    net surplus in assets
  4.    net surplus in liabilities
 Discuss Question
Answer: Option A. -> net long in currency
Answer: (a).net long in currency

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