vu mgt411 Final Term - Quiz No.8
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: The fact that common stockholders are residual claimants means:
The stockholders receive their dividends before any other residuals are paid
The stockholders receive the remains after everyone else is paid
The stockholders are paid any past due dividends before other claims are paid
The common stockholders are responsible for all corporate debts
Question 2: Most of the people among us are __________.
Risk lovers
Risk enhancers
Risk averse
Risk tolerating
Question 3: The default premium:
Is positive for a U.S. Treasury bond
Must always be less than 0 (zero)
Is also known as the risk spread
Is assigned by a bond rating agency
Question 4: Which of the following is NOT included in the definition of M1?
Traveler’s checks
Demand deposits
Currency
Gold coins issued by treasury
Question 5: An increase in the expected inflation shifts the bond supply to the __________.
Right
Left
No change
All of the given options
Question 6: An index number is a valuable tool because:
The number by itself provides all of the useful information needed
The index provides a meaningful measurement scale to calculate percentage changes
The index is more stable than the data it reflects
It does not require any calculations to compute percentage changes
Question 7: With direct finance we mean which of the following?
Individuals (or firms) borrow directly from the savers
Individuals (or firms) borrow directly from banks.
Individuals deposit savings directly in banks.
Firms deposit savings directly in banks.
Question 8: Other things remaining equal, the liquidity premium theory is based upon the idea that __________.
Investors prefer long-term bonds
Investors prefer short-term bonds
Investors are indifferent between short-term and long-term bonds
Investors prefer intermediate-term bonds
Question 9: Stock exchange is an example of:
Financial company
Financial institution
Financial market
None of these
Question 10: What characteristic of money is not included in securities characteristics
Mean of payment
Unit of account
Store of value
Transfer of risk
