VUSuperior Chat Room

Thursday, 10 July 2014

MGT411 Money & Banking Quiz 2 Solution and Discussion Spring 2014

Question # 1 of 20 ( Start time: 10:14:45 PM )     Total Marks: 1
The return on the bond is equal to which of the following?
Select correct option:
        Coupon rate + rate of capital gains
    Current yield + rate of capital gains
    Coupon rate - rate of capital gains
    Current yield - rate of capital gains
Question # 2 of 20 ( Start time: 10:16:07 PM )     Total Marks: 1
When we toss a fair coin what will be occurrence of possible outcome?
Select correct option:
    01
        02
    06
    03
Question # 3 of 20 ( Start time: 10:17:13 PM )     Total Marks: 1
Which one of the following is a component of wealth that is held in a readily spendable form?
Select correct option:
        Money
    Bonds
    Stocks
    Income
Question # 4 of 20 ( Start time: 10:18:16 PM )     Total Marks: 1
Original buyer in a repurchase agreement who actually sells the securities is called ----
Select correct option:
        Lender
    Borrower
    Purchaser
    Secured
Question # 5 of 20 ( Start time: 10:19:40 PM )     Total Marks: 1
Economic development measured by
Select correct option:
        Real GDP/population
    Real GDP/ nominal GDP
    Real GDP/Real GNP
    None of above
Question # 6 of 20 ( Start time: 10:20:58 PM )     Total Marks: 1
Consol (Bond) offer ------- interest rate and normally issued by -----------.
Select correct option:
        Floating, Governments
    Perpetual, Governments
    Perpetual, well reputed corporations
    Temporary, government
Question # 7 of 20 ( Start time: 10:22:19 PM )     Total Marks: 1
Which of the variable measured in point of time?
Select correct option:
        Flow variable
    Stock variable
    Both flow variable and stock variable
    None of above
Question # 8 of 20 ( Start time: 10:23:40 PM )     Total Marks: 1
Mr. Atif invests his money in two different securities which have opposite risk. Which of the following is true?
Select correct option:
    MR. atif hedge his investment
        MR. atif spread his investment
    MR. atif invest his money in portfolio
    All of the given options
Question # 9 of 20 ( Start time: 10:24:23 PM )     Total Marks: 1
A market consists of Electronic network of dealers to sale or purchase of securities is called ----------.
Select correct option:
    Centralized market
    O. T. C Market
    Derivative Market
    Real assets markets
Question # 10 of 20 ( Start time: 10:25:54 PM )     Total Marks: 1
What will be the future value of $90 at the end of one year at 5% per annum?
Select correct option:
    90.5
        94.5
    98.5
    100
Question # 11 of 20 ( Start time: 10:26:24 PM )     Total Marks: 1
If shares of Pakistan State Oil ltd are held by a financial institution for the purpose of selling in the short term, these will come under the head of
Select correct option:
    Liabilities
        Assets
    Income
    Contingent liabilities
Question # 12 of 20 ( Start time: 10:27:26 PM )     Total Marks: 1
Lower interest rates mean -------- bond prices and vice versa
Select correct option:
        Higher
    Lower
    Constant
    Fixed
Question # 13 of 20 ( Start time: 10:28:19 PM )     Total Marks: 1
The security less than one year maturity is traded in ______ .
Select correct option:
    Equity Market
        Bond Market
    Money Market
    Capital market
Question # 14 of 20 ( Start time: 10:29:44 PM )     Total Marks: 1
If bond price is higher than Face value, which of the following expression is true?
Select correct option:
    Coupon Rate < Current Yield < Yield to Maturity
    Coupon Rate = Current Yield = Yield to Maturity
        Coupon Rate > Current Yield > Yield to Maturity
    Coupon Rate <Current Yield > Yield to Maturity
Question # 15 of 20 ( Start time: 10:30:25 PM )     Total Marks: 1
CPI index is 120 in current period and 110 was in preceding year. Calculate the inflation rate.
Select correct option:
        10 %
    9.1%
    8.5%
    20%
Question # 16 of 20 ( Start time: 10:31:49 PM )     Total Marks: 1
Which of the following best expresses the proceeds a lender receives from a loan?
Select correct option:
        PV(1 + i)
    FV/i
    PV + i
    PV/i
Question # 17 of 20 ( Start time: 10:32:21 PM )     Total Marks: 1
Which of the following bonds usually sells at Discount and only pays its Par value at maturity?
Select correct option:
        Console
    Junk Bond
    Coupon Bond
    Treasury bills (T-Bills)
Question # 18 of 20 ( Start time: 10:33:35 PM )     Total Marks: 1
Standardized financial instruments are primarily used to overcome the ------
Select correct option:
        Risk of instrument
    Profit of security
    Cost of instrument
    Value of instrument
Question # 19 of 20 ( Start time: 10:34:51 PM )     Total Marks: 1
Standard Deviation is more useful as compare to Variance because it is measured in the ------------ as the payoffs.
Select correct option:
    Indifferent units
        Same units
    Risk units
    Same probability
Question # 20 of 20 ( Start time: 10:36:14 PM )     Total Marks: 1
Financial instruments can’t be used
Select correct option:
    For settlement of obligations
        As store of value
    To quote prices
    For transfer the risk of market fluctuations from one party to another

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