Finance MCQs

Page No. 16

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


aStock market


bDealer market


cOutcry auction system


dFace to face communication


View Answer Dealer market

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


aNon-financial intermediary


bFinancial intermediary


cSavers intermediary


dDiscounted intermediary



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


aCost of production


bCost of money


cOpportunity cost


dInflation risk


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


dInsurance money funds


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


cElectronic stock network


dElectronic order network



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


aConsumer credit loans


bDollar bonds


cEurodollar market deposits


dEuro bonds


View Answer Consumer credit loans

Financial markets include___________?


aPrimary markets


bCapital markets


cPhysical asset markets


dAll of above


View Answer All of above

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


aLeases


bPreferred stocks


cCommon stocks


dCorporate stocks


View Answer Common stocks

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


aCapital markets


bMoney markets


cLiquid markets


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


bBanker’s acceptance


cBanker’s acceptance


dTreasury acceptance


View Answer Banker’s acceptance

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