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quiz of Money Banking fall 2009

by Pakistan
Question # 1 of 20
Bonds without maturity dates are which of the followings?
Select correct option:

Zero coupon bonds
Coupon securities
ConsolesPreferred Bonds

Question # 4 of 20 ( Start time: 08:02:08 PM )
Total Marks: 1
Which of the following represents the fisher’s equation?
Select correct option:

Nominal interest rate = real interest rate + inflationNominal interest rate + inflation = real interest rate
Nominal interest rate = real interest rate - inflation
Nominal interest rate = real interest rate / inflation

Question # 5 of 20 ( Start time: 08:03:08 PM )
Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:

Coupon rate
Yield to maturityCurrent yield
Internal rate of return

Question # 6 of 20 ( Start time: 08:03:27 PM )
Total Marks: 1
Wider the range of outcome wider will be the ___________.
Select correct option:

RiskProfit
Probability
Lose



Question # 7 of 20 ( Start time: 08:04:42 PM )
Total Marks: 1
The interest rate that is involved in _____________ calculation is referred to as discount rate
Select correct option:

Present valueFuture value
Intrinsic value
Discount value

Question # 8 of 20 ( Start time: 08:06:05 PM )
Total Marks: 1
Bonds that are issued by Government are called _________.
Select correct option:

Government bond
Treasury bondCorporate bond
Callable Bonds

Question # 13 of 20 ( Start time: 08:13:26 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 rateAll of the given options



Question # 14 of 20 ( Start time: 08:14:49 PM )
Total Marks: 1
With direct finance we mean which of the following?
Select correct option:

Individuals (or firms) borrow directly from the saversIndividuals (or firms) borrow directly from banks.
Individuals deposit savings directly in banks.
Firms deposit savings directly in banks.



Question # 15 of 20 ( Start time: 08:16:14 PM )
Total Marks: 1
Investors will hold higher compensation for the __________ investment.
Select correct option:

More riskyLess risky
Fixed return
Less dividend

Question # 16 of 20 ( Start time: 08:17:16 PM )
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

Question # 17 of 20 ( Start time: 08:18:11 PM )
Total Marks: 1
A financial instrument 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:

BondBank Loan
Home Mortgage
Futures Contract

Question # 18 of 20 ( Start time: 08:19:18 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:

DoublesTriples
Halves
3/4

Question # 19 of 20 (Start time: 08:19:37 PM)
Total Marks: 1
The return on the bond is equal to which of the following?
Select correct option:

Coupon rate + rate of capital gainsCurrent yield + rate of capital gains
Coupon rate - rate of capital gains
Current yield - rate of capital gains

Question # 20 of 20 (Start time: 08:21:06 PM)
Total Marks: 1
A loan that is used to purchase the real estate is known as:
Select correct option:

Real estate loan
Home mortgages
Fixed payment loanHome loan
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