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MCQs

Total Questions : 91 | Page 6 of 10 pages
Question 51. The forgone amount for holding the balances of cash at the time they are received is classified as
  1.    forgone cost
  2.    debt cost
  3.    opportunity cost
  4.    balances cost
 Discuss Question
Answer: Option C. -> opportunity cost
Answer: (c).opportunity cost
Question 52. The overnight loans transaction are part of trading of
  1.    extensive funds
  2.    federal funds
  3.    intensive funds
  4.    premium funds
 Discuss Question
Answer: Option B. -> federal funds
Answer: (b).federal funds
Question 53. As compared to US certificate of deposit, the interest rate paid on the Eurodollar certificate of deposits is
  1.    higher than other one
  2.    lower than other one
  3.    contraction than other one
  4.    expansionary than other one
 Discuss Question
Answer: Option A. -> higher than other one
Answer: (a).higher than other one
Question 54. The most flexible and liquid source of funding for savings banks is
  1.    annual loan market
  2.    federal funds market
  3.    functional funding market
  4.    secured funding market
 Discuss Question
Answer: Option B. -> federal funds market
Answer: (b).federal funds market
Question 55. The repurchase price is subtracted from selling price, divided by selling price and multiplied to 360 by number of days, Up to maturity to calculate
  1.    repurchase agreement yields
  2.    purchase agreement yields
  3.    repurchase yields
  4.    transaction yields
 Discuss Question
Answer: Option A. -> repurchase agreement yields
Answer: (a).repurchase agreement yields
Question 56. The liquidity status of certificate of deposit which is more negotiable is considered as
  1.    certified liquidity
  2.    term liquidity
  3.    more liquid
  4.    less liquid
 Discuss Question
Answer: Option C. -> more liquid
Answer: (c).more liquid
Question 57. The demand for heavy loans can cause
  1.    excess funds for banks
  2.    deficiencies for banks
  3.    organized reservation
  4.    competitive reservations
 Discuss Question
Answer: Option B. -> deficiencies for banks
Answer: (b).deficiencies for banks
Question 58. The commercial paper issued with low interest rate thus the commercial paper are categorized as
  1.    payables rating
  2.    commercial rating
  3.    poor credit rating
  4.    better credit rating
 Discuss Question
Answer: Option D. -> better credit rating
Answer: (d).better credit rating
Question 59. The maximum maturity days of holding commercial paper are
  1.    170 days
  2.    270 days
  3.    120 days
  4.    5 days
 Discuss Question
Answer: Option B. -> 270 days
Answer: (b).270 days
Question 60. In borrowing and lending of federal funds, the federal funds rate is result of function between
  1.    assets and liability
  2.    cost and marketing
  3.    supply and demand
  4.    income and expense
 Discuss Question
Answer: Option C. -> supply and demand
Answer: (c).supply and demand

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