MGT411 Quiz and mcq's solved by Binish

[Xpert]

Quiz Start Time: 07:38 PM Time Left 90
sec(s)


Question # 1 of 15 ( Start time: 07:38:18 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 7:39 PM MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 88
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Question # 2 of 15 ( Start time: 07:39:02 PM ) Total Marks: 1
The money aggregate M2 includes each of the following EXCEPT:
Select correct option:

Small denomination time deposits.
Retail Money Market Mutual fund shares
U.S. Treasury bills
M1
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 3 of 15 ( Start time: 07:40:30 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
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 4 of 15 ( Start time: 07:41:35 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
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 5 of 15 ( Start time: 07:42:53 PM ) Total Marks: 1
Bonds that are issued by Government are called _______.
Select correct option:

Government bond
Treasury bond
Corporate bond
Callable Bonds
7:44 PM abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 6 of 15 ( Start time: 07:44:22 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
me: 1
abdulhaiee2004 For reasonable rates of return, the time it takes to double the money, is given approximately by§:
t = 72 / i%
If we have an interest rate of 10%, the time it takes for investment to double is:§
t = 72 / 10 = 7.2 years
This rule is fairly applicable to discount rates in 5% to 20% range.§
7:45 PM 1
me: JI
ITS 1
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 7 of 15 ( Start time: 07:45:09 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
7:46 PM abdulhaiee2004: So if inflation is expected to increase then the real cost falls and the desire to borrow rises, resulting
in the bond supply curve shifting to the right
SUPPLY RIGHT HO G
DEMAND LEFT
MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 8 of 15 ( Start time: 07:46:38 PM ) Total Marks: 1
Which of the following NOT true for financial institutions?
Select correct option:

It reduces the transaction cost
It reduce the information cost
It reduces the asymmetric information
It doesn’t make long term loans
MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
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Question # 9 of 15 ( Start time: 07:47:39 PM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:

0.0065
6.50
0.650
0.0650
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
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Question # 10 of 15 ( Start time: 07:48:26 PM ) Total Marks: 1
The reason for the government to get involved in the financial system is to:
Select correct option:

Protect investors
Ensure the stability of the financial system
Protect bank customers from monopolistic exploitation
All of the given options
MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 11 of 15 ( Start time: 07:48:45 PM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
Select correct option:

Stock
Bond
Loan
Cheque
7:49 PM A bond is a promise to make a series of payments on specific future date.
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 88
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Question # 12 of 15 ( Start time: 07:49:27 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
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 13 of 15 ( Start time: 07:50:51 PM ) Total Marks: 1
We need ________ to carry out day to day transactions.
Select correct option:

Money
Bonds
Stocks
Loans
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 89
sec(s)


Question # 14 of 15 ( Start time: 07:51:32 PM ) Total Marks: 1
Which of the following best describes the relationship between Bond prices and yields?
Select correct option:

Move together inversely
Bond yields do not change since the coupon is fixed
Move together directly
Are independent of each other
abdulhaiee2004: MC090407155 : Muhammad Abrar



Quiz Start Time: 07:38 PM Time Left 88
sec(s)


Question # 15 of 15 ( Start time: 07:52:42 PM ) 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