vu mgt411 Final Term - Quiz No.1
vu mgt411 Money & Banking Quiz
This quiz belongs to book/course code vu mgt411 Money & Banking of vu organization. We have 9 quizzes available related to the book/course Money & Banking. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: In a financial market where information is symmetric:
The same information would be known by both parties in a transaction
One party to a transaction knows information the other party does not
The ability to obtain information is available to only one party
All of the given options
Question 2: Which of the following is NOT included in the assets of commercial banks?
Cash Items
Reserves
Securities
Bills payable
Question 3: An increase in wealth shifts the demand for bonds to the __________.
Left
Right
No change
All of the given options
Question 4: Which characteristic are common both in money and securities
Transfer of risk, store of value
Unit of account, mean of payment
Mean of payment, transfer of risk
Store of value, mean of payment
Question 5: A business cycle downturn shifts the bond supply to the:
Right
Left
No change
None of the given options
Question 6: If YTM equals the coupon rate the price of the bond is __________.
Greater than its face value
Lower than its face value
Equals to its face value
Insufficient information
Question 8: Which of the following would probably NOT earn an A rating from Standard & Poor's:
30 years bond issued by the U.S. Treasury
New vegetarian fast-food chain
90 days T-Bills issued by the U.S. Treasury
Both 30 years bond and 90 days T-Bills issued by U.S. Treasury
Question 9: Time affects the value of which of the following?
Financial Instruments
Financial Markets
Financial Institutions
Central Banks
Question 10: When the auto manufacturing industry does poorly due to a recession this is an example of:
Idiosyncratic risk
Systematic risk
Risk premium
Unique risk
