Basic Finance MCQs

The loan which is made available for businesses or individuals to buy land, home or other property is classified as:

A. secondary loan
B. primary loan
C. mortgages
D. swapped mortgages

The primary mortgages involve:

A. three institutions
B. single investor
C. multiple investor
D. multiple institutions

As compared to US certificate of deposit, the interest rate paid on the Eurodollar certificate of deposits is:

A. higher than other one
B. lower than other one
C. contraction than other one
D. expansionary than other one

The most flexible and liquid source of funding for savings banks is:

A. annual loan market
B. federal funds market
C. functional funding market
D. secured funding market

The forgone amount for holding the balances of cash at the time they are received is classified as:

A. forgone cost
B. debt cost
C. opportunity cost
D. balances cost

The overnight loans transaction are part of trading of:

A. extensive funds
B. federal funds
C. intensive funds
D. premium funds

The government issues treasury bills at the discounted rate from:

A. face value
B. book value
C. premium value
D. federal value

The financial instruments are traded in money markets and then traded in:

A. money markets
B. capital markets
C. debt markets
D. economic markets

The type of funds that have transfer transactions between financial institutions are classified as:

A. federal funds
B. premium funds
C. discount funds
D. mean funds

The interest rate at which the federal funds are borrowed and can be lent is classified as:

A. borrowing rate
B. supplying rate
C. lending rate
D. federal funds rate

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