Always focus exclusively on the expected returnQuestion # 8 of 20 ( Start time: 09:01:51 PM )Total Marks: 1Which of the following is NOT included in the definition of M1?Select correct option:Traveler’s checksDemand depositsCurrencyGold coins issued by treasury
MGT411 Solved MCQs + Solved Papers739Question # 9 of 20 ( Start time: 09:02:04 PM )Total Marks: 1Which one of the following is true for financial intermediaries?Select correct option:Channel funds from savers to borrowersGreatly enhance economic efficiencyHave been an source of many financial innovationsAll of the given optionsQuestion # 10 of 20 ( Start time: 09:02:32 PM )Total Marks: 1The lowest rating for an investment grade bond assigned by Moody's is:Select correct option:BBBABBBaaAaaQuestion # 11 of 20 ( Start time: 09:03:58 PM )Total Marks: 1If YTM is less than the coupon rate the price of the bond is __________.Select correct option:Greater than its face valueLower than its face valueEquals to its face value
MGT411 Solved MCQs + Solved Papers740All of the given optionsQuestion # 12 of 20 ( Start time: 09:05:29 PM )Total Marks: 1What will be the effect on the present value if we double the future value of thepayment?Select correct option:It will decrease the value by one-halfIt will increase the value by one-halfIt will equally increase the value i.e. doubles the valueIt will have no effect on the valueQuestion # 13 of 20 ( Start time: 09:06:06 PM )Total Marks: 1Which one of the following is the narrowest definition of money?Select correct option:CM1M2M3Question # 14 of 20 ( Start time: 09:06:50 PM )Total Marks: 1We need __________ to carry out day to day transactions.Select correct option:
MGT411 Solved MCQs + Solved Papers741MoneyBondsStocksLoansQuestion # 15 of 20 ( Start time: 09:07:01 PM )Total Marks: 1Which one of the following is the strategy of reducing overall risk by making twoinvestments which are totally independent of each other?Select correct option:Spreading the riskStandard deviationHedging the riskVarianceQuestion # 16 of 20 ( Start time: 09:08:07 PM )Total Marks: 1The Segmented Markets Theory of term structure suggests that:Select correct option:Investors have strong preferences for bonds of a particular maturity (This iscorrect)Investors have no preference for short-term bonds over long-term bonds, or viceversaInterest rates on long-term bonds strongly influence the demand for short-term
MGT411 Solved MCQs + Solved Papers742bondsBonds of different maturities are perfect substitutes for each otherQuestion # 17 of 20 ( Start time: 09:09:36 PM )Total Marks: 1The process of financial intermediation:Select correct option:Creates a net cost to an economy but is unavoidableIs used primarily in underdeveloped countriesIs always used when a borrower needs to obtain fundsIncreases the economy's ability to produceQuestion # 18 of 20 ( Start time: 09:09:56 PM )Total Marks: 1
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