Basic Finance MCQs

The treasury bills have high liquidity because of:

A. extensive secondary markets
B. extensive primary markets
C. premium money markets
D. discounted money markets

The markets which reallocate liquid funds in relatively fixed amounts are classified as:

A. capital markets
B. debt markets
C. secondary markets
D. primary markets

The type of instrument whoever holds it, gets the interest and principal amount is classified as:

A. term instrument
B. interim instrument
C. primary instrument
D. bearer instrument

The interest rate of certificate of deposits is quoted using a time span of:

A. 250 days a year
B. 150 days a year
C. 365 day a year
D. 360 day a year

The type of market in which Eurodollar are traded is classified as:

A. brokerage market
B. contraction market
C. expansion market
D. Eurodollar market

For a particular security transaction, the agreement is classified as ‘reverse repo’ with the point of view of:

A. security liability
B. security buyer
C. security seller
D. security function

The bids of bidder which tells that how much treasury bills bidder wants to buy is classified as:

A. federal acceptance bid
B. bankers’ acceptance bid
C. non-competitive bids
D. competitive bids

The investors held commercial papers generally from:

A. issuance to maturity
B. within 1 to 2 days
C. within 3 to 4 days
D. within 4 to 5 days

The rate which is used in major banks in United States as a rate for industrial and commercial loans is:

A. London intra bank offered rate
B. London interbank offered rate
C. euro interbank offered rate
D. demand intra bank rate

For a particular security transaction, the agreement is ‘repo’ with the point of view of:

A. security seller
B. security buyer
C. security function
D. security function

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