vu mgt411 Final Term - Quiz No.4
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: What will be the effect on the present value if we double the future value of the payment?
It will decrease the value by one-half
It will increase the value by one-half
It will equally increase the value i.e. doubles the value
It will have no effect on the value
Question 2: Which of the following is the least liquid of all?
Money
Bonds & stocks
Lands & buildings
None of the given options
Question 3: Banking is risky because __________.
Depository institutions are highly leveraged
Banks do in all the lines of banking trades
Banks pay less for the deposits
All of the given options
Question 4: Previously financial markets are located in which of the following?
Coffee houses or Taverns
Stock exchanges
Bazaar
Coffee houses and Stock exchanges
Question 5: __________ is the value today of a payment that is promised to be made in the future.
Future value
Present value
Agreed value
None of the given options
Question 7: The relationship between the price and the interest rate for a zero coupon bond is best described as:
Volatile
Stable
Non-existent
Inverse
Question 8: Expectation hypothesis focuses on which one of the following?
Risk premium
Risk free interest rate
Yield to maturity
None of the given options
Question 9: If YTM is less than the coupon rate the price of the bond is __________.
Greater than its face value
Lower than its face value
Equals to its face value
All of the given options
Question 10: Wider the range of outcome wider will be the __________.
Risk
Profit
Probability
Lose
