MGT411 Quiz

Money And Banking MGT411
MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
83 sec(s)
Question # 1 of 20 ( Start time: 10:32:27 AM )
Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:

Default risk
Inflation risk
Interest rate risk
Systematic risk

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
82 sec(s)
Question # 3 of 20 ( Start time: 10:33:42 AM )
Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:

C
M1
M2
M3

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
81 sec(s)
Question # 4 of 20 ( Start time: 10:33:59 AM )
Total Marks: 1
Which of the following is NOT an example of financial institutions?
Select correct option:

Banks
Securities firms
Stock exchanges
Insurance companies

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
86 sec(s)
Question # 5 of 20 ( Start time: 10:35:20 AM )
Total Marks: 1
__________ is the interest rate at which the present value annual reveneu equals the cost of the investment.
Select correct option:

Fixed rate of interest
Internal rate of return
Variable rate of interest
Nominal rate of interest

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 6 of 20 ( Start time: 10:36:05 AM )
Total Marks: 1
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:

Discounting
Compounding
Time value of money
Bond pricing



MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 7 of 20 ( Start time: 10:36:24 AM )
Total Marks: 1
___________ is the value today of a payment that is promised to be made in the future.
Select correct option:

Future value
Present value
Agreed value
None of the given options

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 8 of 20 ( Start time: 10:37:23 AM )
Total Marks: 1
What is true relationship between return and risk?
Select correct option:

Lower the risk greater the return
Greater the risk greater the return
Greater the risk the return will remain constant
No relationship between them

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 9 of 20 ( Start time: 10:38:44 AM )
Total Marks: 1
Which of the following best expresses the proceeds a lender receives from a simple loan?
Select correct option:

PV(1 + i)
FV/i
PV + i
PV/i

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 10 of 20 ( Start time: 10:39:27 AM )
Total Marks: 1
Home loans and car loans are the example of which one of the following?
Select correct option:

Mortgage loans
Pledge
Fixed Payment Loans
Ordinary loan

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
88 sec(s)
Question # 11 of 20 ( Start time: 10:39:47 AM )
Total Marks: 1
If YTM is less than the coupon rate the price of the bond is __________.
Select correct option:

Greater than its face value
Lower than its face value
Equals to its face value
All of the given options

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 12 of 20 ( Start time: 10:40:36 AM )
Total Marks: 1
Which of the following best expresses the payment a lender receives for lending their money for four years?
Select correct option:

PV(1+i)4
PV/(1 + i)4
4PV
PV/(1 - i)4

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
88 sec(s)
Question # 13 of 20 ( Start time: 10:41:04 AM )
Total Marks: 1
Core principles of Money and Banking include each of the following except?
Select correct option:

People act rationally
Time has value
Information is the basis for decisions
Risk requires compensation

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
88 sec(s)
Question # 14 of 20 ( Start time: 10:41:27 AM )
Total Marks: 1
Financial system promotes economic efficency by facilitating payments in which of the following way?
Select correct option:

Cash transactions
Checking accounts
Credit cards
All of the given options

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
88 sec(s)
Question # 15 of 20 ( Start time: 10:41:55 AM )
Total Marks: 1
A financial instrumnet in which a borrower obtains resources from a lender immediately in exchange for a promised set of payments in the future is called as ___________.
Select correct option:

Bond
Bank Loan
Home Mortgage
Futures Contract

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
80 sec(s)
Question # 16 of 20 ( Start time: 10:42:28 AM )
Total Marks: 1
Which of the following are used to monitor and stabilize the economy?
Select correct option:

Stock exchanges
Commercial Banks
Central Banks
Financial institutions

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 17 of 20 ( Start time: 10:43:51 AM )
Total Marks: 1
If bond’s rating is lower, what will be its price?
Select correct option:

Higher
Lower
Equal to
No change

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
87 sec(s)
Question # 18 of 20 ( Start time: 10:45:08 AM )
Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to __________ the money will be t =72/i%
Select correct option:

Doubles
Triples
halves
3/4

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
86 sec(s)
Question # 19 of 20 ( Start time: 10:45:26 AM )
Total Marks: 1
A zero coupon bond:
Select correct option:

Does not pay any coupon payments because the issuer is in default
Pays coupons only once a year versus the usual twice a year
Promises a single future payment
Pays coupons only if the bond price is below face value

MC090203685 : Sheraz Asif Quiz Start Time: 10:32 AM
Time Left
86 sec(s)
Question # 19 of 20 ( Start time: 10:45:26 AM )
Total Marks: 1
A zero coupon bond:
Select correct option:

Does not pay any coupon payments because the issuer is in default
Pays coupons only once a year versus the usual twice a year
Promises a single future payment
Pays coupons only if the bond price is below face value