MGT 411 QUIZ

Subject: MGT 411 QUIZ Wed May 19, 2010 9:24 pm

MGT411 QUIZ (
Lec 01-18)

Question
# 1 of 15 ( Start
time: 01:06:35 PM )

Total Marks:
1

Bonds
without maturity dates are which of the followings?

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Select correct option:

[You must be registered and logged in to see this image.]	Zero coupon bonds
[You must be registered and logged in to see this image.]	Coupon securities
[You must be registered and logged in to see this image.]	Consols
[You must be registered and logged in to see this image.]	Preferred Bonds

Question
# 2 of 15 ( Start
time: 01:07:03 PM )

Total Marks:
1

At
which money aggregate definitions relation is stronger with inflation
and growth

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Select correct option:

[You must be registered and logged in to see this image.]	M1
[You must be registered and logged in to see this image.]	M2
[You must be registered and logged in to see this image.]	M3
[You must be registered and logged in to see this image.]	None of above

Question
# 3 of 15 ( Start
time: 01:08:32 PM )

Total Marks:
1

One
of major disadvantage of fiat money is

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Select correct option:

[You must be registered and logged in to see this image.]	Only few resources are needed
[You must be registered and logged in to see this image.]	It may be theft easily
[You must be registered and logged in to see this image.]	Normally it is obsolete quickly
[You must be registered and logged in to see this image.]	Pressure or corrupt government may print excessive money

Question
# 4 of 15 ( Start
time: 01:09:49 PM )

Total Marks:
1

The
interest rate that is involved in _____________ calculation is referred
to as discount rate

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Select correct option:

[You must be registered and logged in to see this image.]	Present value
[You must be registered and logged in to see this image.]	Future value
[You must be registered and logged in to see this image.]	Intrinsic value
[You must be registered and logged in to see this image.]	Discount value

Question
# 5 of 15 ( Start
time: 01:10:29 PM )

Total Marks:
1

The
return on the bond is equal to which of the following?

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Select correct option:

[You must be registered and logged in to see this image.]	Coupon rate + rate of capital gains
[You must be registered and logged in to see this image.]	Current yield + rate of capital gains
[You must be registered and logged in to see this image.]	Coupon rate - rate of capital gains
[You must be registered and logged in to see this image.]	Current yield - rate of capital gains

Question
# 6 of 15 ( Start
time: 01:10:50 PM )

Total Marks:
1

The
money aggregate M2 includes each of the following EXCEPT:

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Select correct option:

[You must be registered and logged in to see this image.]	Small denomination time deposits.
[You must be registered and logged in to see this image.]	Retail Money Market Mutual fund shares
[You must be registered and logged in to see this image.]	U.S. Treasury bills
[You must be registered and logged in to see this image.]	M1

Question
# 7 of 15 ( Start
time: 01:11:56 PM )

Total Marks:
1

When
the price of a bond is above face value:

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Select correct option:

[You must be registered and logged in to see this image.]	The yield to maturity will be above the coupon rate
[You must be registered and logged in to see this image.]	The yield to maturity is below the coupon rate
[You must be registered and logged in to see this image.]	The yield to maturity will equal zero
[You must be registered and logged in to see this image.]	The yield to maturity will equal the coupon rate

Question
# 8 of 15 ( Start
time: 01:12:53 PM )

Total Marks:
1

An
increase in the expected inflation shifts the bond demand to the _________.

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Select correct option:

[You must be registered and logged in to see this image.]	Right
[You must be registered and logged in to see this image.]	Left
[You must be registered and logged in to see this image.]	No change
[You must be registered and logged in to see this image.]	All of the given options

Question
# 9 of 15 ( Start
time: 01:13:51 PM )

Total Marks:
1

A
__________ is a promise to make a series of payments on specific future
date.

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Select correct option:

[You must be registered and logged in to see this image.]	Stock
[You must be registered and logged in to see this image.]	Bond
[You must be registered and logged in to see this image.]	Loan
[You must be registered and logged in to see this image.]	Cheque

Question
# 10 of 15 ( Start
time: 01:15:09 PM )

Total Marks:
1

Coupon
bonds make the annual payments which are called as ___________.

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Select correct option:

[You must be registered and logged in to see this image.]	Annual payments
[You must be registered and logged in to see this image.]	Fixed payments
[You must be registered and logged in to see this image.]	Coupon payments
[You must be registered and logged in to see this image.]	Maturity payment

Question
# 11 of 15 ( Start
time: 01:15:34 PM )

Total Marks:
1

Which
of the following are used to monitor and stabilize the economy?

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Select correct option:

[You must be registered and logged in to see this image.]	Stock exchanges
[You must be registered and logged in to see this image.]	Commercial Banks
[You must be registered and logged in to see this image.]	Central Banks
[You must be registered and logged in to see this image.]	Financial institutions

Question
# 12 of 15 ( Start
time: 01:15:57 PM )

Total Marks:
1

Which
of the following best describes the relationship between Bond prices
and yields?

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Select correct option:

[You must be registered and logged in to see this image.]	Move together inversely
[You must be registered and logged in to see this image.]	Bond yields do not change since the coupon is fixed
[You must be registered and logged in to see this image.]	Move together directly
[You must be registered and logged in to see this image.]	Are independent of each other

Question
# 13 of 15 ( Start
time: 01:17:30 PM )

Total Marks:
1

According
to the liquidity premium theory of the term structure, when the yield
curve has its usual slope, the market expects

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Select correct option:

[You must be registered and logged in to see this image.]	Short-term interest rates to rise sharply
[You must be registered and logged in to see this image.]	Short-term interest rates to stay near their current levels
[You must be registered and logged in to see this image.]	Short-term interest rates to drop sharply
[You must be registered and logged in to see this image.]	Short-term interest rates does not change

Question
# 14 of 15 ( Start
time: 01:18:20 PM )

Total Marks:
1

Core
principles of Money and Banking include each of the following except?

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Select correct option:

[You must be registered and logged in to see this image.]	People act rationally
[You must be registered and logged in to see this image.]	Time has value
[You must be registered and logged in to see this image.]	Information is the basis for decisions
[You must be registered and logged in to see this image.]	Risk requires compensation

Question
# 15 of 15 ( Start
time: 01:18:56 PM )

Total Marks:
1

Which
of the following statement is true for the given sentence, "that
tax affects the bond return"?

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Select correct option:

[You must be registered and logged in to see this image.]	Because only interest income they receive from bond is taxable
[You must be registered and logged in to see this image.]	Because principal amount and interest income they receive from bond is taxable
[You must be registered and logged in to see this image.]	Because bond holders are taxpayers
[You must be registered and logged in to see this image.]	Because all bond is sold with a condition that tax will be deducted from its return

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