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MCQs

Total Questions : 176 | Page 11 of 18 pages
Question 101. Which of following causes do investors employ foreign exchange market
  1.    currency hedging
  2.    currency speculation
  3.    currency conversion
  4.    all of above
 Discuss Question
Answer: Option D. -> all of above
Answer: (d).all of above
Question 102. International Money Market is for about
  1.    2 years
  2.    3 years
  3.    5 years
  4.    1 years
 Discuss Question
Answer: Option D. -> 1 years
Answer: (d).1 years
Question 103. Gold standard introduced in
  1.    1913
  2.    1990
  3.    1876
  4.    1944
 Discuss Question
Answer: Option C. -> 1876
Answer: (c).1876
Question 104. Case of foreign exchange
  1.    exchange of claims denominated in another currency.
  2.    exchange of bank deposits
  3.    exchange of cash issued by a foreign central bank.
  4.    all of above.
 Discuss Question
Answer: Option D. -> all of above.
Answer: (d).all of above.
Question 105. Market in which currencies buy and sell and their prices settle on is called the
  1.    Eurocurrency market
  2.    international capital market
  3.    international bond market
  4.    foreign exchange market
 Discuss Question
Answer: Option D. -> foreign exchange market
Answer: (d).foreign exchange market
Question 106. International capital market
  1.    innovative financial instruments
  2.    information technology
  3.    deregulation
  4.    foreign exchange rates
 Discuss Question
Answer: Option D. -> foreign exchange rates
Answer: (d).foreign exchange rates
Question 107. When the price of underlying asset increases then the good option is
  1.    buy the call option
  2.    sell the call option
  3.    buy the put option
  4.    sell the put option
 Discuss Question
Answer: Option A. -> buy the call option
Answer: (a).buy the call option
Question 108. The capital gain is subtracted from return to stockholders to calculate
  1.    periodic dividend payments
  2.    constant spot rate payment
  3.    constant forward rate payment
  4.    constant future rate payment
 Discuss Question
Answer: Option A. -> periodic dividend payments
Answer: (a).periodic dividend payments
Question 109. Consider the call option writing, the probability that a buyer would have positive payoff increases with the
  1.    increase in stock price
  2.    decrease in stock price
  3.    increase in maturity duration
  4.    decrease in maturity duration
 Discuss Question
Answer: Option B. -> decrease in stock price
Answer: (b).decrease in stock price
Question 110. The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as
  1.    non-offered rights
  2.    preemptive rights
  3.    existing rights
  4.    securitize rights
 Discuss Question
Answer: Option B. -> preemptive rights
Answer: (b).preemptive rights

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