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MCQs

Total Questions : 91 | Page 5 of 10 pages
Question 41. The interest rate at which the federal funds are borrowed and can be lent is classified as
  1.    borrowing rate
  2.    supplying rate
  3.    lending rate
  4.    federal funds rate
 Discuss Question
Answer: Option D. -> federal funds rate
Answer: (d).federal funds rate
Question 42. The selling price is added in to repurchase agreement paid interest to calculate
  1.    direct price of security
  2.    repurchase price of securities
  3.    purchase price of security
  4.    transaction price of security
 Discuss Question
Answer: Option B. -> repurchase price of securities
Answer: (b).repurchase price of securities
Question 43. The financial instruments are traded in money markets and then traded in
  1.    money markets
  2.    capital markets
  3.    debt markets
  4.    economic markets
 Discuss Question
Answer: Option B. -> capital markets
Answer: (b).capital markets
Question 44. The type of funds that have transfer transactions between financial institutions are classified as
  1.    federal funds
  2.    premium funds
  3.    discount funds
  4.    mean funds
 Discuss Question
Answer: Option A. -> federal funds
Answer: (a).federal funds
Question 45. The agreement which incurs the transaction between two parties and promise held that second party will repurchase security at specific price is classified as
  1.    repurchasing commercial notes
  2.    repurchase bills
  3.    repurchase agreement
  4.    reverse repurchase agreement
 Discuss Question
Answer: Option C. -> repurchase agreement
Answer: (c).repurchase agreement
Question 46. The principal issuer of the commercial papers are commercial banks and the major investors of principal investors includes
  1.    brokers and dealers
  2.    corporations
  3.    other financial institutions
  4.    all of the above
 Discuss Question
Answer: Option D. -> all of the above
Answer: (d).all of the above
Question 47. The government issues treasury bills at the discounted rate from
  1.    face value
  2.    book value
  3.    premium value
  4.    federal value
 Discuss Question
Answer: Option A. -> face value
Answer: (a).face value
Question 48. The transactions in market of treasury bills is mostly transacted over telephone and hence classified as
  1.    decentralized
  2.    centralized
  3.    federalize
  4.    commercialize
 Discuss Question
Answer: Option A. -> decentralized
Answer: (a).decentralized
Question 49. The repurchase price is $380, selling price is $310 and the number of days till maturity are 4 then yield of repurchase agreement is 2500
  1.    0.0958
  2.    0.1158
  3.    0.1658
  4.    0.1258
 Discuss Question
Answer: Option C. -> 0.1658
Answer: (c).0.1658
Question 50. If the 175 days T-bill have the maturity of one year with the value of $8000 and face value is $10000 then reported discount yield is
  1.    0.525
  2.    0.4114
  3.    0.4214
  4.    0.4514
 Discuss Question
Answer: Option B. -> 0.4114
Answer: (b).0.4114

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