Finance MCQs

Page No. 25

In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?


aRise in marginal cost of capital

✓


bFall in marginal cost of capital

✖


cRise in transaction cost of capital

✖


d Rise in transaction cost of capital

✖



Reinvestment risk of bonds is higher on__________?


aShort maturity bonds

✓


bHigh maturity bonds

✖


cHigh premium bonds

✖


dHigh inflated bonds

✖


View Answer Short maturity bonds

Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?


aDepreciated bond

✖


b Interest bond

✖


cZero coupon bond

✓


dAppreciation bond

✖


View Answer Zero coupon bond

Bonds issued by small companies tend to have_____________?


aHigh liquidity premium

✓


bHigh inflation premium

✖


cHigh default premium

✖


dHigh yield premium

✖



Coupon rate of bond is also called____________?


aNominal rate

✖


bPremium rate

✖


cQuoted rate

✖


dBoth a and c

✓


View Answer Both a and c

An increasing in interest rate leads to decline in value of__________?


a Junk bonds

✖


bOutstanding bonds

✓


cStanding bonds

✖


dPremium bonds

✖


View Answer Outstanding bonds

Bonds issued by government and backed by Pak government are classified as_________?


aIssued security

✖


bTreasury bonds

✓


cU.S bonds

✖


d Return security

✖


View Answer Treasury bonds

Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________?


aBond value

✖


bPer value

✖


cState value

✖


dPar value

✓


View Answer Par value

Maturity date decides at time of issuance of bond and legally permissible is classified as____________?


aOriginal maturity

✓


bPermanent maturity

✖


cArtificial maturity

✖


dValued maturity

✖


View Answer Original maturity

Bonds issued by local and state governments with default risk are____________?


aMunicipal bonds

✓


bCorporation bonds

✖


cDefault bonds

✖


dZero bonds

✖


View Answer Municipal bonds

Goto Page No.

Page 25 of 42

Alphabetical MCQs Categories
—

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"
—

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan