201 Marginal Cost is dependent upon _______________. A) Only fixed cost B) Only variable cost C) Both fixed cost and variable cost D) Neither fixed cost nor variable cost 202 Debt financing that can magnify the risk and reward for an investment are called as follows ________ A) […]Continue Reading... Comments Off on Finance Quiz – 21
191 In project Finance or Loan approval, Credit rating helps in measuring the credit risk and facilitates? A) Considering higher credit limits B) Making loan provisioning at an early stage C) Accurately calculate the probable loan losses D) Pricing of a loan 192 The Reverse Repo has the following […]Continue Reading... Comments Off on Finance Quiz – 20
181 Which rates are quoted as one unit of base currency against a number of units of a variable currency A) Spot rate B) Tom rate C) Cash rate D) None of these 182 The rate at which the bank quoting the price, or the ‘market maker’ will buy the […]Continue Reading... Comments Off on Finance Quiz – 19
171 When the interest rates tend to move upward, which is the most common scenario? A) Lenders prefer to offer fixed rate mortgage B) Borrowers prefer fixed rate mortgage C) Borrowers prefer ARMs D) None of these 172 Monthly repayments of mortgages depend on the A) Size of […]Continue Reading... Comments Off on Finance Quiz – 18
161 Which of the following is not true about wealth management? A) Wealth Management process is founded on the values of the client first. B) This is an on-going process C) This is the science of choosing investments such as stocks, bonds and derivatives D) Wealth Manager examines the client’s financial […]Continue Reading... Comments Off on Finance Quiz – 17
151 Credit Appraisal focuses on which of the following factors? A) Borrower/Management Appraisal B) Technical Appraisal of the Project C) Market Appraisal determining the viability of the Project D) All of the above 152 Which Of the Following is not Part of Assets in Balance Sheet? A) Cash […]Continue Reading... Comments Off on Finance Quiz – 16
141 Increase in Risk Free Rate leads to A) Increase in Put Price B) Decrease in Call Price C) Increase in Call Price D) No Change 142 Increase in volatility of asset prices leads to? A) Increase in both Put and Call Values B) Increase in only […]Continue Reading... Comments Off on Finance Quiz – 15
131 For which derivative instrument, buyer needs to pay premium to the seller to enter into a contract? A) Forwards B) Futures C) Options D) Interest Rate Swaps 132 For Future trading, which amount must be deopisted before any trading? A) Valuation Margin B) Initial Margin […]Continue Reading... No Comments.
121 For Put option moneyness, S>X (S= Current Stock Price, X = Exercise price) is termed as? A) In-the-Money B) Out-Of-the-Money C) At-the-Money D) None of These 122 Regarding Yield Curve, Which theory explains yield curve based on short term rate expectations? A) Pure Expectation Theory B) […]Continue Reading... No Comments.
111 Compared to zero coupon bond, coupon bonds have more A) Credit risk B) Reinvestment Risk C) Call Risk D) Yield Curve Risk 112 For Bonds, which of these risk is related to government policies and intentions? A) Sovereign Risk B) Exchange rate risk C) Credit […]Continue Reading... No Comments.