Financial Management And Financial Markets

MONEY MARKETS MCQs

Total Questions : 91

Page 1 of 10 pages
Question 1. The promissory notes issued by company for short term fund raising are unsecured are classified as
  1.    unsecured notes
  2.    debt paper
  3.    term paper
  4.    commercial paper
 Discuss Question
Answer is Option D. -> commercial paper
Answer: (d).commercial paper
Question 2. The transactions that came into being when borrowing and lending of excess money occurs, are considered as
  1.    annual funds transaction
  2.    liable funds transactions
  3.    federal funds transaction
  4.    functional funds transaction
 Discuss Question
Answer is Option C. -> federal funds transaction
Answer: (c).federal funds transaction
Question 3. The limit of getting treasury bills auctioned in a treasury auction is that no bidder can get more than
  1.    0.35
  2.    0.3
  3.    0.25
  4.    0.2
 Discuss Question
Answer is Option A. -> 0.35
Answer: (a).0.35
Question 4. The group of dealers and brokers in financial institutions also include
  1.    money and security brokers
  2.    capital brokers
  3.    mortgage brokers
  4.    expansionary brokers
 Discuss Question
Answer is Option A. -> money and security brokers
Answer: (a).money and security brokers
Question 5. The type of negotiable certificate of deposits is usually classified as
  1.    primary instrument
  2.    bearer instrument
  3.    term instrument
  4.    interim instrument
 Discuss Question
Answer is Option B. -> bearer instrument
Answer: (b).bearer instrument
Question 6. The primary mortgages involve
  1.    three institutions
  2.    single investor
  3.    multiple investor
  4.    multiple institutions
 Discuss Question
Answer is Option B. -> single investor
Answer: (b).single investor
Question 7. The commercial mortgages, farm mortgages and home mortgages are categories of
  1.    swapped mortgages
  2.    sovereign mortgages
  3.    secondary mortgages
  4.    primary mortgagees
 Discuss Question
Answer is Option D. -> primary mortgagees
Answer: (d).primary mortgagees
Question 8. The loan which is made available for businesses or individuals to buy land, home or other property is classified as
  1.    secondary loan
  2.    primary loan
  3.    mortgages
  4.    swapped mortgages
 Discuss Question
Answer is Option C. -> mortgages
Answer: (c).mortgages
Question 9. The ownership of mortgaged property will be transferred to financial institution if the
  1.    borrower defaults
  2.    borrower does not default
  3.    borrower want less rate
  4.    borrower want profit
 Discuss Question
Answer is Option A. -> borrower defaults
Answer: (a).borrower defaults
Question 10. The mortgages used to purchase the townhouses and apartment complexes are classified as
  1.    multi mortgage
  2.    multifamily dwelling mortgages
  3.    sovereign dwelling mortgages
  4.    primary dwelling mortgages
 Discuss Question
Answer is Option B. -> multifamily dwelling mortgages
Answer: (b).multifamily dwelling mortgages