vu mgt411 Final Term - Quiz No.7
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 financial instruments used primarily as store of value?
Options
Stocks
Home mortgage
Bonds
Question 2: If bond's rating is lower, what will be its price?
Higher
Lower
Equal to
No change
Question 4: The fact that a financial intermediary can use the same contract for many customers is an example of:
Economies of Scope
The Law of Diminishing Marginal Returns
The Law of Increasing Opportunity Cost
Economies of Scale
Question 5: What is the true relationship that exists between default risk and yield?
Higher the default risk, higher the yield
Lower the default risk, higher the yield
Higher the default risk yield will remain constant
Lower the default risk yield will remain constant
Question 6: If the tax rate is higher than gap between yield on taxable and tax exempt bond?
Shorter
Wider
No gap
Any thing can be possible
Question 7: Which of the following best describes checks?
A means of payment
Money
Not a promise of any kind
Not acceptable by the U.S. Government for payment of taxes.
Question 8: The risk premium for an investment:
Increases with risk
Is a fixed amount added to the risk free return
Is negative for U.S. Treasury Securities
Is negative for risk averse investors
Question 9: The liquidity premium theory suggests that yield curves should usually be:
Up-sloping
Inverted
Flat
Up-sloping through year 1, then flat thereafter
Question 10: What is primary cause of inflation?
Energy crises
Gold reserve shortage
Issue excessive currency
Rising cost of input
