Financial Markets And Funds MCQs

Option A: zero restrictiveness

Option B: negative restriction

Option C: increase restrictiveness

Option D: decrease restrictiveness

Correct Answer: decrease restrictiveness ✔

Option A: cost of loanable funds is high

Option B: cost of loanable fund is low

Option C: equilibrium is zero

Option D: equilibrium is negative

Correct Answer: cost of loanable funds is high ✔

Option A: durable goods

Option B: non-durable goods

Option C: equilibrium goods

Option D: non-equilibrium goods

Correct Answer: durable goods ✔

Option A: global surplus

Option B: national debt

Option C: international debt

Option D: global debt

Correct Answer: national debt ✔

Option A: long term fixed assets

Option B: short term fixed assets

Option C: short term working capital

Option D: long term working capital

Correct Answer: long term fixed assets ✔

Option A: short-term funds

Option B: long-term funds

Option C: surplus of funds

Option D: deficit of funds

Correct Answer: surplus of funds ✔

Option A: shift left

Option B: shift right

Option C: upside movement

Option D: downside movement

Correct Answer: upside movement ✔

Option A: Two way relationship

Option B: One way relationship

Option C: direct relationship

Option D: inverse relationship

Correct Answer: inverse relationship ✔

Option A: upside

Option B: lower

Option C: higher

Option D: zero

Correct Answer: lower ✔

Option A: increase in near term

Option B: decrease in near term

Option C: increase in long term

Option D: decrease in long term

Correct Answer: increase in near term ✔

Option A: surplus of funds

Option B: deficit of funds

Option C: short-term funds

Option D: long-term funds

Correct Answer: deficit of funds ✔

Option A: remain constant

Option B: fluctuate

Option C: decreases

Option D: increases

Correct Answer: decreases ✔

Option A: forward rate

Option B: backward rate

Option C: termed rate

Option D: structured rate

Correct Answer: forward rate ✔

Option A: short term working capital

Option B: long term working capital

Option C: long term fixed assets

Option D: short term fixed assets

Correct Answer: short term working capital ✔

Option A: saving fund theory

Option B: constant funds

Option C: borrowed theory

Option D: loanable funds theory

Correct Answer: loanable funds theory ✔

Option A: increase in near term

Option B: decrease in near term

Option C: increase in long term

Option D: decrease in long term

Correct Answer: decrease in near term ✔

Option A: invested interest

Option B: simple interest

Option C: earned interest

Option D: unstated interest

Correct Answer: simple interest ✔

Option A: increase in interest rate

Option B: decrease in interest rate

Option C: increase in availability

Option D: decrease in availability

Correct Answer: increase in interest rate ✔

Option A: down and to the left

Option B: down and to the right

Option C: up and to the left

Option D: up and to the right

Correct Answer: up and to the left ✔

Option A: investing abroad

Option B: investing in domestic markets

Option C: increase in sovereign risk

Option D: increase in country risk

Correct Answer: investing abroad ✔

Option A: insurance companies

Option B: government

Option C: corporations

Option D: households

Correct Answer: households ✔

Option A: financial markets

Option B: setting interest arte

Option C: setting compounding rate

Option D: setting savings rate

Correct Answer: financial markets ✔

Option A: increase in total wealth

Option B: decrease in total wealth

Option C: increase in future value

Option D: decrease in future value

Correct Answer: increase in total wealth ✔

Option A: increase restrictiveness

Option B: decrease restrictiveness

Option C: zero restrictiveness

Option D: negative restriction

Correct Answer: increase restrictiveness ✔

Option A: increase in future value

Option B: decrease in future value

Option C: increase in total wealth

Option D: decrease in total wealth

Correct Answer: decrease in total wealth ✔

Option A: equilibrium goods

Option B: non-equilibrium goods

Option C: durable goods

Option D: non-durable goods

Correct Answer: durable goods ✔

Option A: tax-ability

Option B: covert ability

Option C: call ability

Option D: inflation premium

Correct Answer: inflation premium ✔

Option A: up and to the left

Option B: up and to the right

Option C: down and to the left

Option D: down and to the right

Correct Answer: down and to the right ✔

Option A: decreases

Option B: increases

Option C: positive

Option D: negative

Correct Answer: increases ✔

Option A: effective annual return

Option B: ineffective annual return

Option C: decrease in return

Option D: increase in return

Correct Answer: effective annual return ✔

Option A: equilibrium supply

Option B: equilibrium savings

Option C: equilibrium demand

Option D: equilibrium interest rate

Correct Answer: equilibrium interest rate ✔

Option A: down and to the left

Option B: down and to the right

Option C: up and to the left

Option D: up and to the right

Correct Answer: up and to the left ✔

Option A: upside movement

Option B: downside movement

Option C: shift left

Option D: shift right

Correct Answer: downside movement ✔

Option A: fall in globalization

Option B: rise in globalization

Option C: rise in demand

Option D: inflation

Correct Answer: inflation ✔

Option A: supply of loan-able funds

Option B: demand of loan-able funds

Option C: compounded funds

Option D: savings funds

Correct Answer: demand of loan-able funds ✔

Option A: up and to the left

Option B: up and to the right

Option C: down and to the left

Option D: down and to the right

Correct Answer: down and to the right ✔

Option A: (1+r) c – 1

Option B: (2+r) c – 2

Option C: (3+r) c – 3

Option D: (1+r) c – 5

Correct Answer: A. (1+r) c – 1 ✔

Option A: support from World Bank

Option B: decreases in funds traded

Option C: increase in funds traded

Option D: rise of international funds

Correct Answer: decreases in funds traded ✔

Option A: term structure of segmentation

Option B: term structure of interest rate

Option C: term structure of premium

Option D: term structure of inflation

Correct Answer: term structure of interest rate ✔

Option A: compound interest

Option B: investment risk

Option C: interest rate

Option D: stated rate

Correct Answer: compound interest ✔

Option A: increase in availability

Option B: decrease in availability

Option C: decrease in interest rate

Option D: increase in interest rate

Correct Answer: increase in interest rate ✔

Option A: present value of annuity

Option B: future value of annuity

Option C: decreased value of annuity

Option D: increased value of annuity

Correct Answer: future value of annuity ✔

Option A: zero demand of funds

Option B: equilibrium demands of funds

Option C: higher demand of funds

Option D: lower demand of funds

Correct Answer: higher demand of funds ✔

Option A: global market is stagnant

Option B: global market is not stagnant

Option C: domestic market is stagnant

Option D: domestic market is not stagnant

Correct Answer: domestic market is stagnant ✔

Option A: decreased value of annuity

Option B: increased value of annuity

Option C: present value of annuity

Option D: future value of annuity

Correct Answer: present value of annuity ✔

Option A: higher

Option B: zero

Option C: upside

Option D: lower

Correct Answer: higher ✔

Option A: domestic market is stagnant

Option B: domestic market is not stagnant

Option C: global market is stagnant

Option D: global market is not stagnant

Correct Answer: domestic market is stagnant ✔

Option A: compounded funds

Option B: savings funds

Option C: supply of loan-able funds

Option D: demand of loan-able funds

Correct Answer: supply of loan-able funds ✔

Option A: special provisions

Option B: liquidity and default risk

Option C: inflation and real interest arte

Option D: all of the above

Correct Answer: all of the above ✔

Option A: equilibrium demand

Option B: equilibrium interest rate

Option C: equilibrium supply

Option D: equilibrium savings

Correct Answer: equilibrium interest rate ✔

Option A: savings

Option B: interest rate

Option C: future value

Option D: present value

Correct Answer: interest rate ✔