Xpert
11-24-2010, 02:16 PM
Question # 1 of 15 ( Start time: 06:13:57 AM ) Total Marks: 1
The lowest rating for an investment grade bond assigned by Moody's is:
Select correct option:
BBB
ABB
Baa
Aaa
Question # 2 of 15 ( Start time: 06:14:23 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Question # 3 of 15 ( Start time: 06:14:44 AM ) 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 # 4 of 15 ( Start time: 06:15:14 AM ) 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 # 5 of 15 ( Start time: 06:15:43 AM ) Total Marks: 1
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Question # 6 of 15 ( Start time: 06:16:12 AM ) Total Marks: 1
The interest rate that is involved in ___________ calculation is referred to as discount rate
Select correct option:
Present value
Future value
Intrinsic value
Discount value
Question # 8 of 15 ( Start time: 06:17:04 AM ) Total Marks: 1
Which of the following is NOT a depository financial institution?
Select correct option:
Credit Union
Savings and Loan
Commercial bank
Life Insurance Company
Question # 9 of 15 ( Start time: 06:17:32 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
Question # 10 of 15 ( Start time: 06:18:17 AM ) 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
Question # 11 of 15 ( Start time: 06:18:48 AM ) Total Marks: 1
The GDP deflator is calculated as_________.
Select correct option:
Nominal GDP/Real GDP *100
Real GDP/Nominal GDP
Nominal GDP – Real GDP
Real GDP – Nominal GDP
Question # 12 of 15 ( Start time: 06:19:29 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Question # 13 of 15 ( Start time: 06:20:10 AM ) Total Marks: 1
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Question # 14 of 15 ( Start time: 06:20:57 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Question # 15 of 15 ( Start time: 06:21:20 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
The lowest rating for an investment grade bond assigned by Moody's is:
Select correct option:
BBB
ABB
Baa
Aaa
Question # 2 of 15 ( Start time: 06:14:23 AM ) Total Marks: 1
What is difference between warrant and check?
Select correct option:
Check is cleared from bank but warrant is not cleared by bank
Check is not necessarily pay able on demand but warrant is payable on demand
Warrant is not necessarily pay able on demand but check is payable on demand
None of above
Question # 3 of 15 ( Start time: 06:14:44 AM ) 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 # 4 of 15 ( Start time: 06:15:14 AM ) 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 # 5 of 15 ( Start time: 06:15:43 AM ) Total Marks: 1
The price of a coupon bond can best be described as:
Select correct option:
The present value of the face value
The future value of the coupon payments and the face value
The present value of the coupon payments
Both The present value of the face value and of the coupon payments
Question # 6 of 15 ( Start time: 06:16:12 AM ) Total Marks: 1
The interest rate that is involved in ___________ calculation is referred to as discount rate
Select correct option:
Present value
Future value
Intrinsic value
Discount value
Question # 8 of 15 ( Start time: 06:17:04 AM ) Total Marks: 1
Which of the following is NOT a depository financial institution?
Select correct option:
Credit Union
Savings and Loan
Commercial bank
Life Insurance Company
Question # 9 of 15 ( Start time: 06:17:32 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
Question # 10 of 15 ( Start time: 06:18:17 AM ) 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
Question # 11 of 15 ( Start time: 06:18:48 AM ) Total Marks: 1
The GDP deflator is calculated as_________.
Select correct option:
Nominal GDP/Real GDP *100
Real GDP/Nominal GDP
Nominal GDP – Real GDP
Real GDP – Nominal GDP
Question # 12 of 15 ( Start time: 06:19:29 AM ) Total Marks: 1
Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Select correct option:
Spreading the risk
Standard deviation
Hedging the risk
Variance
Question # 13 of 15 ( Start time: 06:20:10 AM ) Total Marks: 1
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Question # 14 of 15 ( Start time: 06:20:57 AM ) Total Marks: 1
Coupon bonds make the annual payments which are called as _________.
Select correct option:
Annual payments
Fixed payments
Coupon payments
Maturity payment
Question # 15 of 15 ( Start time: 06:21:20 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