vu mgt411 Final Term - Quiz No.2
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: Which of the following best describes default risk?
The chance the issuer will be unable to make interest payments or repay principal
The chance the issuer will retire the debt early
The chance the issuing firm will be sold to another firm
The chance the issuer will sell more debt
Question 2: Which of the following is NOT a depository institution?
Commercial banks
Savings institutions
Credit unions
Brokerage house
Question 3: The bond rating of a security refers to which of the followings?
The size of the coupon payment relative to the face value
The return a holder is likely to receive
The likelihood the lender/borrower will be repaid by the borrower/issuer
The years until the bond matures
Question 4: Financial development measured by
M1/GDP
M2/GDP
M3/DGP
All of above
Question 5: The shape of the yield curve is usually:
Upward sloping
Downward sloping
Upward sloping for shorter maturities and downward sloping for longer maturities
Flat
Question 6: Banks borrow from the central bank this loan is called __________.
Discount loan
Collateralized loan
Personal loan
Corporate loan
Question 7: Which of the following institution take direct deposit from customer and give loan to customer directly?
Zarai Tarkaytee Bank LTD
Soneri Bank
Khushali Bank
Credit union
Question 8: __________ is the strategy of reducing overall risk by making two investments with opposing risks.
Spreading the risk
Standard deviation
Hedging the risk
Variance
Question 9: Which of the variable measured in point of time?
Flow variable
Stock variable
Both flow variable and stock variable
None of above
Question 10: Liquidity is the risk that is arises as a result of which one of the following consequences?
It arises when loan is not repaid
It arises because of sudden demands of funds
It arises when two sides of the balance sheet do not match up
It arises when banks make additional profit by using derivatives
