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Datastructure Fresh paper

ExamDate:
12/3/2009 12:00:00 AM
For Teacher's Use Only
Q No.
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Total
Marks
Q No.
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Marks
Q No.
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Marks

Question No: 1 ( Marks: 1 ) - Please choose one
Which one of the following statement is NOT correct .
► In linked list the elements are necessarily to be contiguous
► In linked list the elements may locate at far positions in the memory
► In linked list each element also has the address of the element next to it
► In an array the elements are contiguous
Question No: 2 ( Marks: 1 ) - Please choose one
In a program a reference variable, say x, can be declared as
► int &x ;
► int *x ;
► int x ;
► None of the given options
Question No: 3 ( Marks: 1 ) - Please choose one
Linked lists are collections of data items "lined up in a row" , insertions and deletions can be made only at the front and the back of a linked list.
► True
► False
Question No: 4 ( Marks: 1 ) - Please choose one
A Linear Data Structure is the data structure in which data elements are arranged in a sequence or a linear list. Which of the following is Non Linear Data Structure?
► Arrays
► LinkLists
► Binary Search Trees
► None of these
Question No: 5 ( Marks: 1 ) - Please choose one
A queue where the de-queue operation depends not on FIFO, is called a priority queue
►
►True
Question No: 6 ( Marks: 1 ) - Please choose one
Which one of the following statements is correct?
►Array size is fixed once it is created.
►Link List size is fixed once it is created.
►Binary Search Tree size is fixed once it is created
►AVL Tree size is fixed once it is created
Question No: 7 ( Marks: 1 ) - Please choose one
Which one of the following is correct about pointers?
►They always point to different memory locations
►They may point to a single memory location
►The address of two pointer variables is same
►None of these
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following abstract data types are NOT used by Integer Abstract Data type group?
►short
►int
►float
►long
Question No: 9 ( Marks: 1 ) - Please choose one
The operation for adding an entry to a stack is traditionally called :
►add
►append
►insert
►push
Question No: 10 ( Marks: 1 ) - Please choose one
The operation for removing an entry from a stack is traditionally called:
►delete
►peek
►pop
►remove
Question No: 11 ( Marks: 1 ) - Please choose one
We can add elements in QUEUE From _________
►Front
►Rear
►From Both Rare and Front
►None of these
Question No: 12 ( Marks: 1 ) - Please choose one
The difference between a binary tree and a binary search tree is that ,
►a binary search tree has two children per node whereas a binary tree can have none, one, or two children per node
►in binary search tree nodes are inserted based on the values they contain
►in binary tree nodes are inserted based on the values they contain
►none of these
Question No: 13 ( Marks: 1 ) - Please choose one
Suppose n is the number of nodes in a complete Binary Tree then maximum steps required for a search operation are,
►Log2 (n+1) -1
►Log2 (n+1)
►Log2 (n) – 1
►Log2 (n)
Question No: 14 ( Marks: 1 ) - Please choose one
The following is a segment of a C program.
int pqr(BinaryNode t)
{ if (t == null )
return -1;
else
return 1+max(pqr(t.left),pqr(t.right)) }
Identify, what the above program intend(s) to do?
►Compute the height of a binary tree using an in-order traversal
►Compute the height of a binary tree using a pre-order traversal
►Compute the depth of a binary tree using a pre-order traversal
►Compute the depth of a binary tree using a post-order traversal
Question No: 15 ( Marks: 1 ) - Please choose one
Consider the following infix expression:
3 + 5 * 6 – 7 * (8 + 5)
Which of the following is a correct equivalent expression(s) for the above?
► 3 6 5 + * 7 5 8 + - *
► 3 6 5 7 5 8 + * + - *
► 3 5 6 + * 7 8 5 + - *
► 3 5 6 * + 7 8 5 + * -
Question No: 16 ( Marks: 1 ) - Please choose one
An array is a group of consecutive related memory locations.
► True
► False
Question No: 17 ( Marks: 1 )
Is this a correct statement? Give answer in Yes or No.
A node cannot be deleted, when the node to be deleted has both left and right subtrees.
No, it can be deleted.
Question No: 18 ( Marks: 1 )
Deleting a leaf node in binary search tree involves setting ______ pointer/s of that nodes parent as null.
1
2
3
4
Question No: 19 ( Marks: 2 )
Describe any two uses of priority queues?
Question No: 20 ( Marks: 3 )
How we evaluate postfix expressions?
Question No: 21 ( Marks: 5 )
Following is the while loop used in level-order traversal:
while( !q.empty() )
{
treeNode = q.dequeue();
cout << *(treeNode->getInfo()) << " ";
if(treeNode->getLeft() != NULL )
q.enqueue( treeNode->getLeft());
if(treeNode->getRight() != NULL )
?
}
What should be the statement to replace the question mark in the loop above:
Question No: 22 ( Marks: 10 )
Write a friend function for a Linked List class called mergeLists that takes two non-empty lists, merge these two lists and return the merged list.
Use the following function prototype:
List mergeLists(List x,List y)

mgt411 money and banking midterm solved

Question No: 1 ( Marks: 1 ) - Please choose one

Which of the following are without maturity dates?

► Zero coupon bonds

► Coupon securities

Consol’s

► Preferred Bonds

Question No: 2 ( Marks: 1 ) - Please choose one

Which of the following institution takes direct deposit from customer and gives loan to customer directly?

► Zarai Tarkaytee Bank LTD

► Soneri Bank

► Khushali Bank

► Credit union

Question No: 3 ( Marks: 1 ) - Please choose one

Mr. Ghazanfar obtains a home improvement loan from Allied Bank.This loan is:

► Mr. Ghazanfar’s asset and the bank's liability

► Mr. Ghazanfar 's asset, but the liability belongs to the bank's depositors

► Mr. Ghazanfar 's liability and an asset for the bank

► Both Mr. Ghazanfar's and bank's liability

Question No: 4 ( Marks: 1 ) - Please choose one

Components of M1 DO NOT include which one of the following?

► Currency in the hands of public

► Demand deposits

► Small denominations time deposit

► Checkable deposits

Question No: 5 ( Marks: 1 ) - Please choose one

Which of the following has created an opportunity for small investors to participate in economic activity?

Mutual funds

► Small corporations

► Stock brokers

► Small investors cannot take part in economic activity

Question No: 6 ( Marks: 1 ) - Please choose one

Which of the following is NOT an example of financial institutions?

► Bank

► Securities firm

Stock exchange

► Insurance company

Question No: 7 ( Marks: 1 ) - Please choose one

Requiring a large deductible on the part of an insured is one way insurers treat the problem of:

► Free-riding

Moral hazard

► Adverse selection

► The Lemons market

Question No: 8 ( Marks: 1 ) - Please choose one

In a financial market where information is symmetric:

► The same information would be known by both parties in a transaction

► One party to a transaction knows information the other party does not

► The ability to obtain information is available to only one party

► All of the given options

Question No: 9 ( Marks: 1 ) - Please choose one

When stock prices reflect fundamental values:

► All investors will experience capital gains

► All companies will have an easier task of obtaining financing for investment projects

► The allocation of resources will be more efficient

► The overall level of the stock market should move higher continuously

Question No: 10 ( Marks: 1 ) - Please choose one

An index number is a valuable tool because:

► The number by itself provides all of the useful information needed

The index provides a meaningful measurement scale to calculate percentage changes

► The index is more stable than the data it reflects

► It does not require any calculations to compute percentage changes

Question No: 11 ( Marks: 1 ) - Please choose one

The concept of limited liability says a stockholder of a corporation:

► Is liable for the corporation's liabilities, but nothing more

► Cannot receive dividends that exceed their investment

► Cannot own more than fiver percent of any public corporation

cannot lose more than their investment

Question No: 12 ( Marks: 1 ) - Please choose one

Other things remaining equal, the liquidity premium theory is based upon the idea that ____________.

► Investors prefer long-term bonds

Investors prefer short-term bonds

► Investors are indifferent between short-term and long-term bonds

► Investors prefer intermediate-term bonds

Question No: 13 ( Marks: 1 ) - Please choose one

Which one of the following is NOT true for the expectation hypothesis?

► Risk free interest rate can be computed

► There is uncertainty in the future

► Identifying yield of bond today that will be available next year

► It focuses on risk free interest rate and the risk premium

Question No: 14 ( Marks: 1 ) - Please choose one

A graph of the term structure with YTM on Y-axis and time to maturity on X-axis is called:

► Demand curve

► Supply curve

► Yield curve

► Leffer curve

Question No: 15 ( Marks: 1 ) - Please choose one

Bond A

Bond B

Maturity

5 years

10 years

Default risk

5%

5%

Tax rate

30%

30%

Yield

?

?

See the above table and choose the one option which is NOT correct about the yield of Bond A and Bond B?

Bond tax status and default rate are not the only factors that affect the yield of the two bonds

► Bond A has different yield from that of Bond B because of change in maturity period

► Yields of both the bonds are not disturbed by maturity period

► Yield of Bond B depends on what people expect to happen in years to come

Question No: 16 ( Marks: 1 ) - Please choose one

The____________ are an assessment of the creditworthiness of the corporate issuer.

► Bond yield

► Bond ratings

► Bond risk

► Bond price

Question No: 17 ( Marks: 1 ) - Please choose one

The bond rating of a security refers to which of the followings?

► The size of the coupon payment relative to the face value

► The return a holder is likely to receive

► The likelihood the lender/borrower will be repaid by the borrower/issuer

► The years until the bond matures

Question No: 18 ( Marks: 1 ) - Please choose one

An increase in the expected inflation shifts the bond demand to the _________

Right

Left

No change

► None of the given options

Question No: 19 ( Marks: 1 ) - Please choose one

The current yield on a $10,000, 5% coupon bond selling for $8,000 is:

► 6.25%

► 7.50%

► 8.00%

► 5.00%

Question No: 20 ( Marks: 1 ) - Please choose one

If the annual interest rate is 6% (.06); the price of a one year Treasury bill would be:

► $94.00

► $94.33

► $95.25

► $96.10

Question No: 21 ( Marks: 1 ) - Please choose one

The return on holding a bond till its maturity is called:

► Coupon rate

Yield to maturity

► Current yield

► Fixed return

Question No: 22 ( Marks: 1 ) - Please choose one

Which of the following best describes the relationship between Bond prices and yields?

► Move together directly

► Independent of each other

► Move together inversely

► Bond yields do not change since the coupon is fixed

Question No: 23 ( Marks: 1 ) - Please choose one

Mr. A has a Treasury bill with a maturity period of 6 months where as Mr. B has a bond with a maturity period of 1 year. Which of the following statement is NOT true for this situation?

► Mr. A has paid less price for his bond than Mr. B

► Mr. A and Mr. B is a holder of zero coupon bond

► Mr. A will receive payment at the end of the maturity period

► Mr. B will receive the payment at the end of the maturity period

Question No: 24 ( Marks: 1 ) - Please choose one

What is true relationship between return and risk?

► Lower the risk greater the return

Greater the risk greater the return

► Greater the risk no change in return

► No relationship between them

Question No: 25 ( Marks: 1 ) - Please choose one

Sum of all the probabilities should be equal to which one of the following?

► Zero

► One

► Two

► Three

Question No: 26 ( Marks: 1 ) - Please choose one

_________ measures the probability of worst outcome in any investment project.

► Variance

► Standard deviation

Value at risk

► Hedging

Question No: 27 ( Marks: 1 ) - Please choose one

The variance is generally less useful than the standard deviation on which of the following reasons?

► Variance is easier to calculate

► Variance is a measure of risk, whereas standard deviation is a measure of return

Variance isn't calculated in the same units as payoffs where as standard deviation is

► Both are equally useful

Question No: 28 ( Marks: 1 ) - Please choose one

A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called:

► Simple loan

► Fixed-payment loan

► Coupon bond

► Discount bond

Question No: 29 ( Marks: 1 ) - Please choose one

Which of the following provides the greatest incentive to borrow?

► A high real interest rate

► A low real interest rate

► A high nominal interest rate

► A low nominal interest rate

Question No: 30 ( Marks: 1 ) - Please choose one

An investment carrying a current cost of $130,000 is going to generate $70,000 of revenue for each of the next three years. To calculate the internal rate of return we need to:

► Calculate the present value of each of the $70,000 payments and multiply these and set this equal to $130,000

► Take the present value of $210,000 for three years from now and set this equal to $130,000

Set the sum of the present value of $70,000 for each of the next three years equal to $130,000

► Subtract $130,000 from $210,000 and set this difference equal to the interest rate

Question No: 31 ( Marks: 1 ) - Please choose one

A borrower is promised a $100 payment (including interest) one year from today. If the lender has an 8% opportunity cost of money, he should be willing to accept what amount today?

► Rs.100.00

► Rs.108.20

► Rs.92.59

► Rs.96.40

Question No: 32 ( Marks: 1 ) - Please choose one

Which one of the following is NOT an example of Centralized exchange?

► New York Stock Exchange

► NASDAQ

► Large exchanges in London

► Large exchanges in Tokyo

Question No: 33 ( Marks: 1 ) - Please choose one

Financial intermediaries provide small lender-savers all of the following advantages EXCEPT:

► Greater liquidity

► Lower transaction cost

► Lower risk

► Higher return

Question No: 34 ( Marks: 1 ) - Please choose one

The shares of McDonald Corporation stock are examples of:

A standardized financial instrument

► A standardized financial liability instrument

► A non-standardized financial instrument

► A means of payment

Question No: 35 ( Marks: 1 ) - Please choose one

Which of the following statements is NOT correct?

► Banks are financial intermediaries

► Financial intermediary involves in giving loan and accepting deposit

► All financial intermediaries are insurance companies

► Financial intermediaries increase the efficiency of the economy

Question No: 36 ( Marks: 1 ) - Please choose one

Economic research shows:

► There is a strong inverse correlation between financial market development and economic growth

► There is weak relation between financial market development and economic growth around 0.25

There is a relatively strong positive correlation between financial market development and economic growth

► There isn't any correlation between financial market development and economic growth

Question No: 37 ( Marks: 1 ) - Please choose one

Which of the following statements is correct?

► If you can buy the same goods this year as you bought last year with less money the money supply decreased.

► To purchase the same goods today that were purchased one year ago requires more money, there must have been inflation

► To purchase the same goods today as one year ago requires less money, the money supply must have increased

► To purchase the same goods today that were purchased one year ago requires the same amount of money, there must have been inflation

Question No: 38 ( Marks: 1 ) - Please choose one

The one that you get from bank when you open your checking account is __________.

Debit card

► Credit card

► Store value card

► Customer card

Question No: 39 ( Marks: 1 ) - Please choose one

Wealth can be held in number of other forms but we use to hold money because of which one of the following reason?

► It is the only mode of payment

► It is an asset

It is most liquid

► It is the only store of value

Question No: 40 ( Marks: 1 ) - Please choose one

Which of the following are used to monitor and stabilize the economy?

► Stock exchanges

► Commercial Banks

Central Banks

► Financial institutions

mgt411 money and banking mcq's new

Question # 20 of 20 ( Start time: 11:38:19 PM ) Total Marks: 1
The risk premium of a bond will:
Select correct option:


Higher for investment-grade bonds than for high-yield bonds

Positive but small if the risk of default is zero

Decrease when the default risk rises

Increase when the risk of default rises













Quiz Start Time: 07:13 PM Time Left 72
sec(s)

Question # 1 of 20 ( Start time: 07:13:59 PM ) Total Marks: 1
Financial instruments are evolved just as ____________.
Select correct option:


Currency

Stock

Bond

Commodity






Quiz Start Time: 07:13 PM Time Left 69
sec(s)

Question # 2 of 20 ( Start time: 07:14:21 PM ) Total Marks: 1
The____________ are an assessment of the creditworthiness of the corporate issuer.
Select correct option:


Bond yield

Bond ratings

Bond risk

Bond price





Quiz Start Time: 07:13 PM Time Left 86
sec(s)

Question # 3 of 20 ( Start time: 07:14:53 PM ) Total Marks: 1
The risk premium of a bond will:
Select correct option:


Higher for investment-grade bonds than for high-yield bonds

Positive but small if the risk of default is zero

Decrease when the default risk rises

Increase when the risk of default rises





Quiz Start Time: 07:13 PM Time Left 56
sec(s)

Question # 5 of 20 ( Start time: 07:16:30 PM ) Total Marks: 1
One argument for an independent central bank is:
Select correct option:


Without independence competent people would not take a position in a central bank

Successful monetary policy requires a long time horizon usually well beyond the next election of most public officials

Politicians have a long-run focus that is not well tuned to addressing economic problems

Central bankers have a short run focus that usually corrects problems faster





Quiz Start Time: 07:13 PM Time Left 80
sec(s)

Question # 6 of 20 ( Start time: 07:17:08 PM ) Total Marks: 1
We need __________ to carry out day to day transactions.
Select correct option:


Money

Bonds

Stocks

Loans





Quiz Start Time: 07:13 PM Time Left 75
sec(s)

Question # 7 of 20 ( Start time: 07:17:29 PM ) Total Marks: 1
If information in a financial market is asymmetric, this means:
Select correct option:


Borrowers and lenders have perfect information

Borrowers would have more information than lenders

Borrowers and lenders have the same information

Lenders lack any information





Quiz Start Time: 07:13 PM Time Left 81
sec(s)

Question # 8 of 20 ( Start time: 07:17:58 PM ) Total Marks: 1
If YTM equals 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

Insufficient information





Quiz Start Time: 07:13 PM Time Left 68
sec(s)

Question # 9 of 20 ( Start time: 07:18:26 PM ) Total Marks: 1
An increase in the expected inflation shifts the bond demand to the _________.
Select correct option:


Right

Left

No change

All of the given options





Quiz Start Time: 07:13 PM Time Left 84
sec(s)

Question # 10 of 20 ( Start time: 07:18:51 PM ) Total Marks: 1
Requiring a large deductible on the part of an insured is one way insurers treat the problem of:
Select correct option:


Free-riding

Moral hazard

Adverse selection

The Lemons market





Quiz Start Time: 07:13 PM Time Left 81
sec(s)

Question # 11 of 20 ( Start time: 07:19:29 PM ) Total Marks: 1
Mark borrows $8,000 and then repays $8,600 to ABC bank. What is the amount of interest in this payment?
Select correct option:


$600

$500

$400

$100





Quiz Start Time: 07:13 PM Time Left 84
sec(s)

Question # 12 of 20 ( Start time: 07:19:52 PM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
Select correct option:


C

M1

M2

M3





Quiz Start Time: 07:13 PM Time Left 73
sec(s)

Question # 13 of 20 ( Start time: 07:20:07 PM ) Total Marks: 1
The default premium:
Select correct option:


Is positive for a U.S. Treasury bond

Must always be less than 0 (zero)

Is also known as the risk spread

Is assigned by a bond rating agency





Quiz Start Time: 07:13 PM Time Left 85
sec(s)

Question # 15 of 20 ( Start time: 07:22:30 PM ) Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:


Coupon rate

Yield to maturity

Current yield

Internal rate of return





Quiz Start Time: 07:13 PM Time Left 74
sec(s)

Question # 16 of 20 ( Start time: 07:22:47 PM ) Total Marks: 1
The Fed lacks complete control over the money supply because it cannot perfectly predict:
Select correct option:


Discount borrowing by the banks

Shifts from deposits to currency

Excess reserves held by banks

Any of the above





Quiz Start Time: 07:13 PM Time Left 32
sec(s)

Question # 17 of 20 ( Start time: 07:23:38 PM ) Total Marks: 1
___________ is the strategy of reducing overall risk by making two investments with opposing risks.
Select correct option:


Spreading the risk

Standard deviation

Hedging the risk

Variance





Quiz Start Time: 07:13 PM Time Left 63
sec(s)

Question # 18 of 20 ( Start time: 07:24:39 PM ) Total Marks: 1
An index number is a valuable tool because:
Select correct option:


The number by itself provides all of the useful information needed

The index provides a meaningful measurement scale to calculate percentage changes

The index is more stable than the data it reflects

It does not require any calculations to compute percentage changes

mgt411 money and banking mcq's full

Question # 1 of 20 ( Start time: 11:26:33 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 # 2 of 20 ( Start time: 11:26:52 PM ) Total Marks: 1
If YTM equals 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

Insufficient information

Question # 3 of 20 ( Start time: 11:27:17 PM ) Total Marks: 1
An increase in wealth shifts the demand for bonds to the __________.
Select correct option:


Left

Right

No change

All of the given options

Question # 4 of 20 ( Start time: 11:27:41 PM ) Total Marks: 1
Spreading involves:
Select correct option:


Finding assets whose returns are perfectly negatively correlated

Building a portfolio of assets whose returns move together

Investing in bonds and avoiding stocks during bad times

Adding assets to a portfolio that move independently

Question # 5 of 20 ( Start time: 11:28:29 PM ) Total Marks: 1
Everything else equal, if the growth rate of a country exceeds its sustainable rate:
Select correct option:


The central bank will keep interest rates low to keep the momentum

The central bank is likely to raise interest rates to slow the rate of growth

The central banks will now identify this new rate as the sustainable rate and try to maintain it.

The central bank is likely to lower the interest rate thinking a slowdown is coming to offset this boom.

Question # 6 of 20 ( Start time: 11:29:38 PM ) Total Marks: 1
Combination of term life insurance and a savings account is called as __________.
Select correct option:


Term life insurance

Whole life insurance

Group life insurance

None of the given option

Question # 7 of 20 ( Start time: 11:30:11 PM ) Total Marks: 1
Factors that cause the excess reserve ratio to rise include:
Select correct option:


A rise in expected deposit outflows

A decline in market interest rates

A rise in market interest rates

Both rise in expected deposit outflows and decline in market interest rates of the above

Question # 8 of 20 ( Start time: 11:30:58 PM ) Total Marks: 1
Sum of all the probabilities should be equal to which one of the following?
Select correct option:


Zero

One

Two

Three

Question # 9 of 20 ( Start time: 11:31:28 PM ) Total Marks: 1
Which of the following is the true about bank statement?
Select correct option:


Total Bank Assets = Total Bank Liabilities + Bank Capital

Total Bank Liabilities = Bank Capital

Total Bank Assets +Total Bank Liabilities = Bank Capital

Total Bank Assets = Total Bank Liabilities - Bank Capital

Question # 10 of 20 ( Start time: 11:32:14 PM ) Total Marks: 1
Which of the following are the primary uses of funds of depositor institution?
Select correct option:


Cash, loans, securities

Corporate bonds, Government bonds, Stocks

Commercial paper, Bonds, Mortgages

Mortgages, Consumer loans, Business loans

Question # 11 of 20 ( Start time: 11:32:43 PM ) 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

Question # 12 of 20 ( Start time: 11:33:19 PM ) Total Marks: 1
The fact that common stockholders are residual claimants means:
Select correct option:


The stockholders receive their dividends before any other residuals are paid

The stockholders receive the remains after everyone else is paid

The stockholders are paid any past due dividends before other claims are paid

The common stockholders are responsible for all corporate debts

Question # 13 of 20 ( Start time: 11:34:20 PM ) Total Marks: 1
A business cycle downturn shifts the bond supply to the:
Select correct option:


Right

Left

No change

None of the given options

Question # 14 of 20 ( Start time: 11:34:42 PM ) Total Marks: 1
Which of the following are the primary uses of funds of Insurance Company?
Select correct option:


Cash, loans, securities

Corporate bonds, Government bonds

Commercial paper, Bonds, Mortgages

Mortgages, Consumer loans, Business loans

Question # 15 of 20 ( Start time: 11:35:28 PM ) Total Marks: 1
Which of the following best describes default risk?
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The chance the issuer will be unable to make interest payments or repay principal

The chance the issuer will retire the debt early

The chance the issuing firm will be sold to another firm

The chance the issuer will sell more debt

Question # 16 of 20 ( Start time: 11:36:13 PM ) Total Marks: 1
Beside default risk which one if the following factor affects the return on bond?
Select correct option:


Taxes

Monetary policy

Junk bonds

Debt

Question # 17 of 20 ( Start time: 11:36:55 PM ) Total Marks: 1
If a bond sells at a premium, where price exceeds face value, then we would expect to see:
Select correct option:


Market interest rate the same as the coupon rate

Market interest rates above the coupon rate

Market interest rates below the coupon rate

All of the given options

Question # 18 of 20 ( Start time: 11:37:36 PM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:


Risk

Probability

Frequency

Outcom

Question # 19 of 20 ( Start time: 11:38:03 PM ) Total Marks: 1
We need __________ to carry out day to day transactions.
Select correct option:


Money

Bonds

Stocks

Loans

mgt411 money and banking mcq's latest

Which of the following type/s of transaction/s affect the balance sheets of both the central bank and the banking system?
Select correct option:


An open market operation

A foreign exchange intervention

Central bank’s extension of a discount loan

All of the given options

Question # 2 of 20 ( Start time: 11:10:05 PM ) 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

Question # 3 of 20 ( Start time: 11:10:30 PM ) Total Marks: 1
High State Bank purchases some U.S. Treasury bonds. We would view such bonds as being free of:
Select correct option:


Credit risk

Interest rate risk

Reinvestment risk

All of the given options

Question # 4 of 20 ( Start time: 11:11:17 PM ) Total Marks: 1
Stock market bubbles can lead to:
Select correct option:


An inefficient allocation of resources

Stock market crashes

Patterns of volatile returns from the stock market

All of the given options

Question # 5 of 20 ( Start time: 11:11:59 PM ) Total Marks: 1
__________ are the economies Central nervous system.
Select correct option:


Financial Instruments

Financial Markets

Financial Institutions

Financial Companies

Question # 6 of 20 ( Start time: 11:12:50 PM ) Total Marks: 1
Which of the following would be considered characteristic of money?
Select correct option:


It is store of value

It pays a higher return than most assets

It is in fixed supply

It is legal tender everywhere in the world

Question # 7 of 20 ( Start time: 11:13:49 PM ) Total Marks: 1
The Fed lacks complete control over the money supply because it cannot perfectly predict:
Select correct option:


Discount borrowing by the banks

Shifts from deposits to currency

Excess reserves held by banks

Any of the above

Question # 8 of 20 ( Start time: 11:14:58 PM ) Total Marks: 1
When the Fed wants to increase the level of reserves in the banking system, it can:
Select correct option:


Buy bonds from the public

Buy bonds from banks

Increase discount loans to banks

All of the given options

Question # 9 of 20 ( Start time: 11:15:25 PM ) Total Marks: 1
If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20%, then the bank has total reserves of:
Select correct option:


$11,000

$31,000

$26,000

$20,000

Question # 10 of 20 ( Start time: 11:16:33 PM ) Total Marks: 1
A bank can usually offer a saver a higher return for the same risk because:
Select correct option:


The bank can usually purchase assets at a higher cost than any one saver

The bank can pool the resources of larger savers and purchase lower denominated assets

Economies of scale can be applied by the bank in its purchase of assets

None of the given options

Question # 11 of 20 ( Start time: 11:17:31 PM ) Total Marks: 1
Which one the following is NOT the way to manage liquidity risk?
Select correct option:


By holding sufficient excess reserves

Through diversification

By adjusting assets

By adjusting liabilities

Question # 12 of 20 ( Start time: 11:18:16 PM ) Total Marks: 1
Currency-to-deposit ratio is a factor that affects the quantity of money. This factor is controlled by which of the following?
Select correct option:


Central bank

Bank regulators

Commercial banks

Non bank public

Question # 13 of 20 ( Start time: 11:18:53 PM ) Total Marks: 1
What will be the effect on the present value if we double the future value of the payment?
Select correct option:


It will decrease the value by one-half

It will increase the value by one-half

It will equally increase the value i.e. doubles the value

It will have no effect on the value

Question # 14 of 20 ( Start time: 11:19:56 PM ) Total Marks: 1
Which of the following financial instruments used primarily as store of value?
Select correct option:


Options

Stocks

Home mortgage

Bonds

Question # 15 of 20 ( Start time: 11:20:47 PM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:


Financial company

Financial institution

Financial market

Bank

Question # 16 of 20 ( Start time: 11:21:12 PM ) Total Marks: 1
_____________ are organized to eliminate the need of costly information gathering.
Select correct option:


Central bank

Commercial banks

Stock exchanges

Insurance companies

Question # 17 of 20 ( Start time: 11:22:05 PM ) Total Marks: 1
The broad class of securities firms includes which of the following?
Select correct option:


Brokerages

Investment banks

Mutual fund companies

All of the given options

Question # 18 of 20 ( Start time: 11:22:54 PM ) Total Marks: 1
Which of the following is NOT the component of monetary base?
Select correct option:


Currency in the hands of the public

Reserves of the banking system

Deposits at the central bank

All of the given options

Question # 19 of 20 ( Start time: 11:23:54 PM ) Total Marks: 1
In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in reserves and the:
Select correct option:


Inverse of the excess reserve ratio

The simple money multiplier

Inverse of the simple money multiplier

Discount rate

Question # 20 of 20 ( Start time: 11:25:01 PM ) Total Marks: 1
Which of the following is NOT a depository institution?
Select correct option:


Commercial banks

Savings institutions

Credit unions

Brokerage house