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MCQs

Total Questions : 176 | Page 8 of 18 pages
Question 71. The security which has characteristics of common stock and bonds both at same time is classified as
  1.    preferred stock
  2.    voted stock
  3.    cumulative stock
  4.    fundamental stock
 Discuss Question
Answer: Option A. -> preferred stock
Answer: (a).preferred stock
Question 72. The preferred stock is considered as hybrid security because it includes
  1.    representation of ownership interest
  2.    fixed periodic payment
  3.    higher liquidity
  4.    both a and b
 Discuss Question
Answer: Option D. -> both a and b
Answer: (d).both a and b
Question 73. The type of contract which involves the future exchange of assets at a specified price is classified as
  1.    future contracts
  2.    present contract
  3.    spot contract
  4.    forward contract
 Discuss Question
Answer: Option D. -> forward contract
Answer: (d).forward contract
Question 74. The situation in which the large portion of majority is borrowed from the broker of investor is classified as
  1.    future investment
  2.    forward investment
  3.    leveraged investment
  4.    non-leveraged investment
 Discuss Question
Answer: Option C. -> leveraged investment
Answer: (c).leveraged investment
Question 75. In interest rate swap transaction, the party who pays the floating payments of interest is considered as
  1.    notion buyer
  2.    notion seller
  3.    swap buyer
  4.    swap seller
 Discuss Question
Answer: Option D. -> swap seller
Answer: (d).swap seller
Question 76. A swap that is used to evade the risk of exchange rate exists because of currency mismatching is classified as
  1.    floating swaps
  2.    fixed swaps
  3.    currency swaps
  4.    notion swaps
 Discuss Question
Answer: Option C. -> currency swaps
Answer: (c).currency swaps
Question 77. The type of traders who take position in the market of future, which is based on expectations of prices of underlying assets are classified as
  1.    professional traders
  2.    non-investment traders
  3.    position traders
  4.    future market traders
 Discuss Question
Answer: Option C. -> position traders
Answer: (c).position traders
Question 78. The number of shares outstanding are 10000 and the price of stock is $50 then the current market price is
  1.    10000
  2.    100000
  3.    500000
  4.    200000
 Discuss Question
Answer: Option C. -> 500000
Answer: (c).500000
Question 79. The return to stockholders is 15% and the periodic dividend payments are 11.5% then the gains on capital are
  1.    0.0265
  2.    0.035
  3.    0.013
  4.    0.043
 Discuss Question
Answer: Option B. -> 0.035
Answer: (b).0.035
Question 80. The type of liability in which the stockholders losses are counted for only the invested amount in the firm is classified as
  1.    counted liability
  2.    invested liability
  3.    unlimited liability
  4.    limited liability
 Discuss Question
Answer: Option D. -> limited liability
Answer: (d).limited liability

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