Basic Finance MCQs

The Federal Reserve decreases the money supply b:

A. selling Swiss bills
B. buying Swiss bills
C. selling treasury bills
D. buying treasury bills

In the Eurodollar market, the increase in demand of Euro dollars result in:

A. increase in LIBOR
B. decrease in LIBOR
C. increase in KIBOR
D. decrease in KIBOR

The Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of:

A. liquid markets
B. money markets
C. transaction markets
D. functional markets

The negotiable certificate of deposit with one year maturity pays the interest:

A. annually
B. semi-annually
C. monthly
D. every two weeks

The type of bidding in which the bids are met before the allocation of competitive bidders is considered as:

A. firstly basis
B. preferential basis
C. federal basis
D. last basis

The international banker’s acceptance usually arises from underlying:

A. letter of confirmation
B. letter of transfer
C. letter of credits
D. letter of buying

The treasury bills are issued to raise significant amount of funds by:

A. US treasury
B. Australian treasury
C. Swiss treasury
D. functional treasury

The federal funds are loans borrowed and lent on:

A. single payment basis
B. monthly payment basis
C. semi-annual payment basis
D. annual payment basis

The non-competitive bidders get the allocation of treasury bills on:

A. federal basis
B. last basis
C. firstly basis
D. preferential basis

The submitted bids in the treasury bills auction consist of types which are:

A. competitive bids
B. non-competitive bids
C. treasury bids
D. both A and B

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