MGT411 Financial Accounting II solved mcqs and quiz Fall 2010

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Question # 1 of 15 ( Start time: 06:25:11 AM ) Total Marks: 1
Which one of the following is the procedure of finding out the Present Value (PV)?
Select correct option:

Discounting
Compounding
Time value of money
Bond pricing

Question # 2 of 15 ( Start time: 06:25:27 AM ) Total Marks: 1
Financial instruments are evolved just as __________.
Select correct option:

Currency
Stock
Bond
Commodity

Question # 3 of 15 ( Start time: 06:25:40 AM ) Total Marks: 1
An increase in the expected inflation shifts the bond supply to the _______.
Select correct option:

Right
Left
No change
All of the given options

Question # 4 of 15 ( Start time: 06:26:00 AM ) Total Marks: 1
There is no guarantee that a bond issuer will make the promised payments is known as which one of the following?
Select correct option:

Default risk
Inflation risk
Interest rate risk
Systematic risk

Question # 5 of 15 ( Start time: 06:26:22 AM ) Total Marks: 1
Which one of the following is true for financial intermediaries?
Select correct option:

Channel funds from savers to borrowers
Greatly enhance economic efficiency
Have been an source of many financial innovations
All of the given options

Question # 6 of 15 ( Start time: 06:26:51 AM ) Total Marks: 1
Most of the people among us are _________.
Select correct option:

Risk lovers
Risk enhancers
Risk averse
Risk tolerating

Question # 7 of 15 ( Start time: 06:27:22 AM ) Total Marks: 1
Which of the following is the measure of likelihood that an event will occur?
Select correct option:

Risk
Probability
Frequency
Outcom

Question # 8 of 15 ( Start time: 06:27:33 AM ) Total Marks: 1
Which of the following expresses 6.5%?
Select correct option:

0.0065
6.50
0.650
0.0650

Question # 9 of 15 ( Start time: 06:27:48 AM ) Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to ________ the money will be t =72/i%
Select correct option:

Doubles
Triples
halves
3/4

Question # 10 of 15 ( Start time: 06:28:00 AM ) Total Marks: 1
Time affects the value of which of the following?
Select correct option:

Financial Instruments
Financial Markets
Financial Institutions
Central Banks

Question # 11 of 15 ( Start time: 06:28:20 AM ) Total Marks: 1
An increase in wealth shifts the demand for bonds to the ________.
Select correct option:

Left
Right
No change
All of the given options

Question # 12 of 15 ( Start time: 06:28:55 AM ) Total Marks: 1
A business cycle downturn shifts the bond supply to the:
Select correct option:

Right
Left
No change
None of the given options

Question # 13 of 15 ( Start time: 06:29:17 AM ) Total Marks: 1
Stock exchange is an example of:
Select correct option:

Financial company
Financial institution
Financial market
Bank

Question # 14 of 15 ( Start time: 06:29:44 AM ) Total Marks: 1
If YTM is greater than the coupon rate the price of the bond is ________.
Select correct option:

Greater than its face value
Lower than its face value
Equals to its face value
All of the given options

Question # 15 of 15 ( Start time: 06:30:28 AM ) Total Marks: 1
Saving occurs normally in ……….
Select correct option:

Early age

Middle age

Old age

None of above