Basic Finance MCQs

Difference between actual return on stock and predicted return is considered as:

A. Probability error
B. Actual error
C. Prediction error
D. Random error

Beta reflects stock risk for investors which is usually:

A. Individual
B. Collective
C. Weighted
D. Linear

Future beta is needed to calculate in most situations is classified as:

A. Historical betas
B. Adjusted betas
C. Standard betas
D. Varied betas

Money lends to corporations by banks is classified as:

A. Eurodollar market deposits
B. Commercial loans
C. Consumer credit loans
D. Consumer credit loans

Market where market makers keep record of stock of financial instruments is classified as:

A. Stock market
B. Dealer market
C. Outcry auction system
D. Face to face communication

Transfer through institutions such as mutual funds or banks are classified as:

A. Non-financial intermediary
B. Financial intermediary
C. Savers intermediary
D. Discounted intermediary

Federal Reserve policy and federal surplus or deficit of budget affect the:

A. Cost of production
B. Cost of money
C. Opportunity cost
D. Inflation risk

Funds which are used as interest-bearing checking accounts are classified as:

A. Money market funds
B. Capital market funds
C. Money mutual funds
D. Insurance money funds

Method of matching orders by posting orders of buying and selling is classified as:

A. Electronic communication network
B. Electronic dealer network
C. Electronic stock network
D. Electronic order network

Loans by finance companies, banks and credit unions is classified as:

A. Consumer credit loans
B. Dollar bonds
C. Eurodollar market deposits
D. Euro bonds

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