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?
Select correct option:
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
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?
Select correct option:
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
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