Finance MCQs

Page No. 16

Market where market makers keep record of stock of financial instruments is classified as_________________?


aStock market

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bDealer market

✓


cOutcry auction system

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dFace to face communication

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View Answer Dealer market

Transfer through institutions such as mutual funds or banks are classified as________________?


aNon-financial intermediary

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bFinancial intermediary

✓


cSavers intermediary

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dDiscounted intermediary

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Federal Reserve policy and federal surplus or deficit of budget affect the____________?


aCost of production

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bCost of money

✓


cOpportunity cost

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dInflation risk

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View Answer Cost of money

Funds which are used as interest-bearing checking accounts are classified as____________?


aMoney market funds

✓


bCapital market funds

✖


cMoney mutual funds

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dInsurance money funds

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View Answer Money market funds

Method of matching orders by posting orders of buying and selling is classified as______________?


aElectronic communication network

✓


bElectronic dealer network

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cElectronic stock network

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dElectronic order network

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Loans by finance companies, banks and credit unions is classified as___________?


aConsumer credit loans

✓


bDollar bonds

✖


cEurodollar market deposits

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dEuro bonds

✖


View Answer Consumer credit loans

Financial markets include___________?


aPrimary markets

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bCapital markets

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cPhysical asset markets

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dAll of above

✓


View Answer All of above

Bonds issue by corporations which are more riskier than preferred stocks are classified as_____________?


aLeases

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bPreferred stocks

✖


cCommon stocks

✓


dCorporate stocks

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View Answer Common stocks

Markets which deals with high liquid and short-term debt securities are classified as_____________?


aCapital markets

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bMoney markets

✓


cLiquid markets

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dShort-term markets

✖


View Answer Money markets

Firm’s promise to pay and is backed or guaranteed by bank is classified as____________?


aCustomer’s acceptancev

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bBanker’s acceptance

✓


cBanker’s acceptance

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dTreasury acceptance

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View Answer Banker’s acceptance

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