vu mgt411 Final Term - Quiz No.6
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 is a role of a financial institution acting as a financial intermediary?
Pooling the resources of small savers
Formulating oversight regulations
Sending out free calendars at the holidays
Lobbying legislators
Question 2: Which of the following patterns of term structure occur most frequently?
Ascending yield curve
Descending yield curve
Flat yield curve
Humped yield curve
Question 3: Stock market bubbles can lead to:
An inefficient allocation of resources
Stock market crashes
Patterns of volatile returns from the stock market
All of the given options
Question 4: The money aggregate M2 includes each of the following EXCEPT:
Small denomination time deposits.
Retail Money Market Mutual fund shares
U.S. Treasury bills
M1
Question 5: Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?
Spreading the risk
Standard deviation
Hedging the risk
Variance
Question 6: Which one of the following is true for the relationship between the yield of taxable and tax exempt bond?
Higher the tax rate wider the gap between the yield of taxable and tax exempt bond
Taxable bond yield is always greater than tax exempt bond
Higher the tax rate shorter the gap between yield of taxable and tax exempt bond
Lower the tax rate wider the gap between yield of taxable and tax exempt bond
Question 7: The process of financial intermediation:
Creates a net cost to an economy but is unavoidable
Is used primarily in underdeveloped countries
Is always used when a borrower needs to obtain funds
Increases the economy's ability to produce
Question 8: The interest rate that is involved in __________ calculation is referred to as discount rate
Present value
Future value
Intrinsic value
Discount value
Question 10: Saving occurs normally in __________
Early age
Middle age
Old age
None of above
