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MCQs

Total Questions : 91 | Page 4 of 10 pages
Question 31. The operating tool used by Federal Reserve to influence the supply of bank to control demand and supply of repurchase agreements is classified as
  1.    selling window
  2.    buying window
  3.    premium window
  4.    discount window
 Discuss Question
Answer: Option D. -> discount window
Answer: (d).discount window
Question 32. The type of Eurodollars deposits denominated in banks outside United States is classified as
  1.    mutual certificate of deposit
  2.    euro dollar certificate of deposit
  3.    expansionary certificate of deposit
  4.    euro dollar contraction deposit
 Discuss Question
Answer: Option B. -> euro dollar certificate of deposit
Answer: (b).euro dollar certificate of deposit
Question 33. Financial panic that produce large losses for public can cause
  1.    serious damage to economy
  2.    problems for investors
  3.    pulling of funds
  4.    soundness of institutes
 Discuss Question
Answer: Option A. -> serious damage to economy
Answer: (a).serious damage to economy
Question 34. The deposit issued by bank are usually negotiable and have specific maturity date and interest rate, hence it is classified as
  1.    indirect certificate
  2.    direct certificate
  3.    negotiable certificate
  4.    deposit certificate
 Discuss Question
Answer: Option C. -> negotiable certificate
Answer: (c).negotiable certificate
Question 35. The drafts which are backed up by banks and are payable to seller of products or services are classified as
  1.    banker acceptance
  2.    secured acceptance
  3.    unsecured acceptance
  4.    economic acceptance
 Discuss Question
Answer: Option A. -> banker acceptance
Answer: (a).banker acceptance
Question 36. The bidder who can receive the allocation of treasury bills before all other bidders is the result of
  1.    highest bidder
  2.    lower bidder
  3.    zero bidder
  4.    non-competitive bidder
 Discuss Question
Answer: Option A. -> highest bidder
Answer: (a).highest bidder
Question 37. The economic period in which the banks have excess funds is classified as
  1.    functional time line
  2.    contract timing
  3.    contraction period
  4.    expansionary periods
 Discuss Question
Answer: Option C. -> contraction period
Answer: (c).contraction period
Question 38. The transaction of federal funds usually take place in the form of
  1.    functional loans
  2.    annual loans
  3.    unsecured loans
  4.    secured loans
 Discuss Question
Answer: Option C. -> unsecured loans
Answer: (c).unsecured loans
Question 39. The accounting entry of the institutions who borrow federal funds is as
  1.    income in income statement
  2.    expense on income statement
  3.    liability on balance sheet
  4.    assets on balance sheet
 Discuss Question
Answer: Option C. -> liability on balance sheet
Answer: (c).liability on balance sheet
Question 40. The difference between purchase price of treasury bills and the face value of treasury bills is considered as
  1.    premium
  2.    discount
  3.    return
  4.    mean value
 Discuss Question
Answer: Option C. -> return
Answer: (c).return

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