Question # 1 of 15 ( Start time: 05:36:19 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:

Currency
Stock
Bond
Commodity

Question # 2 of 15 ( Start time: 05:36:39 AM ) Total Marks: 1
A ________ is a promise to make a series of payments on specific future date.
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Stock
Bond
Loan
Cheque

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Question # 3 of 15 ( Start time: 05:37:03 AM ) Total Marks: 1
If bondís rating is lower, what will be its price?
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Higher
Lower
Equal to
No change

Question # 4 of 15 ( Start time: 05:37:31 AM ) Total Marks: 1
The Financial Systems makes it easier to trade because it:
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Facilitate Payments
Channels Funds from Savers to Borrowers
Enables Risk Sharing
All of the given options

Question # 5 of 15 ( Start time: 05:37:50 AM ) Total Marks: 1
Debt instruments is categorized on the basis of which one of the following?
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Loan maturity period
Interest rates
Mode of payment of interest
Amount of the debt taken

Question # 6 of 15 ( Start time: 05:38:02 AM ) Total Marks: 1
What is difference between warrant and check?
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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 # 7 of 15 ( Start time: 05:38:34 AM ) Total Marks: 1
If YTM equals the coupon rate the price of the bond is ________.
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Greater than its face value
Lower than its face value
Equals to its face value
Insufficient information

Question # 8 of 15 ( Start time: 05:38:52 AM ) Total Marks: 1
What is true relationship between return and risk?
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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 # 9 of 15 ( Start time: 05:39:27 AM ) Total Marks: 1
Which of the following is the least liquid of all?
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Money
Bonds & stocks
Lands & buildings
None of the given options

Question # 10 of 15 ( Start time: 05:39:44 AM ) Total Marks: 1
Consumer Price Index (CPI) measures the:
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Changes in the quantity
Changes in the prices
Changes in the cost
Changes in the profit

Question # 11 of 15 ( Start time: 05:40:12 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?
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Default risk
Inflation risk
Interest rate risk
Systematic risk

Question # 12 of 15 ( Start time: 05:40:43 AM ) Total Marks: 1
Which one of the following is the narrowest definition of money?
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C
M1
M2
M3

Question # 13 of 15 ( Start time: 05:41:54 AM ) Total Marks: 1
Which is broadly used as money aggregate?
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M1
M2
M3
None of Above

Question # 14 of 15 ( Start time: 05:42:23 AM ) Total Marks: 1
What is the true relationship that exists between default risk and yield?
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Higher the default risk, higher the yield
Lower the default risk, higher the yield
Higher the default risk yield will remain constant
Lower the default risk yield will remain constant

Question # 15 of 15 ( Start time: 05:42:49 AM ) Total Marks: 1
If YTM is less than 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
All of the given options