Wider the range of outcome wider will be the _________.
Select correct option:
Risk
Profit
Probability
Lose
The interest rate that is involved in ___________ calculation is referred to as discount rate
Select correct option:
Present value
Future value
Intrinsic value
Discount value
The return on holding a bond till its maturity is called:
Select correct option:
Coupon rate
Yield to maturity
Current yield
Internal rate of return
following represents the fisher’s equation?
Select correct option:
Nominal interest rate = real interest rate + inflation
Nominal interest rate + inflation = real interest rate
Nominal interest rate = real interest rate - inflation
Nominal interest rate = real interest rate / inflation
Bonds without maturity dates are which of the followings?
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Zero coupon bonds
Coupon securities
Consols
Preferred Bonds
A risk-averse investor will:
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Always prefer an investment with a lower expected return
Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty
Always require a certain return
Always focus exclusively on the expected return
GDP deflator is called
Select correct option:
Retailer price index
Consumer price index
Producer price index
None of above
What will be the effect on the present value if we double the future value of the payment?
Select correct option:
It will decrease the value by one-half
It will increase the value by one-half
It will equally increase the value i.e. doubles the value
It will have no effect on the value
Government bonds called …….. Where as corporate bonds are called ……
Select correct option:
Zero coupon bond, coupon bond
Risky bond. Risk free bond
T bill, corporate bond
Console bond, junk bonds
Beside default risk which one if the following factor affects the return on bond?
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Taxes
Monetary policy
Junk bonds
Debt
Which of the following are used to monitor and stabilize the economy?
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Stock exchanges
Commercial Banks
Central Banks
Financial institutions
What will be the result of the difference of real and nominal interest rate?
Select correct option:
The cost of borrowing
The effect of inflation
The price of bonds
The return of bonds
Which of the following expresses 6.5%?
Select correct option:
0.0065
6.50
0.650
0.0650
Diversification is the principle of:
Select correct option:
Holding more than one risk at a time
Reducing the risks we carry to just two
Creating risk to increase returns
Eliminating investments from our portfolio that have idiosyncratic risk
Current accounts of commercial bank lies in which money aggregate definition?
Select correct option:
Currency
M1
M2
M3
Which of the following would be considered characteristic of money?
Select correct option:
It is store of value
It pays a higher return than most assets
It is in fixed supply
It is legal tender everywhere in the world
When the price of a bond is above face value:
Select correct option:
The yield to maturity will be above the coupon rate
The yield to maturity is below the coupon rate
The yield to maturity will equal zero
The yield to maturity will equal the coupon rate
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