MGT201 Quiz May 2026

VU QUIZ REPORT

Subject: MGT201

Quiz Completed: 11/05/2026, 22:08:46 Total Questions: 10

Q1. The value of a security in the equity or bond market is called:

1. Market value
2. Intrinsic value
3. Written down value
4. Par value

Correct answer: Market value

Q2. The future value of an investment can be calculated through:

1. Simple interest only
2. Compound interest only
3. Both simple and compound interest
4. Neither simple interest nor compound interest

Correct answer: Both simple and compound interest

Q3. Issuance of _______ give ownership rights.

1. Common shares
2. Debentures
3. All of the given options
4. Bonds

Correct answer: Common shares

Q4. A zero coupon is issued for 2 years with a maturity value of Rs. 500. What will be the intrinsic value of this bond, if the interest rate is 12% per annum?

1. Rs. 398.6
2. Rs. 464.2
3. Rs. 389.6
4. Rs. 446.4

Correct answer: Rs. 398.6

Q5. An Islamic banking instrument in which one party buys an asset and sells to another party at a higher price, while sale proceeds are received on an installment basis is called:

1. Murabaha
2. Modaraba
3. Musharaka
4. Ijara

Correct answer: Murabaha

Q6. If interest rate is 7% compounded annually and time period is 4 years, the future value interest factor will be:

1. 1.28
2. 1.41
3. 1.31
4. 1.14

Correct answer: 1.31

Q7. _________ is an Islamic form of leasing where an asset is given by a party as a financing to another party and against that fixed amount of rent is charged.

1. Murabaha
2. Ijara
3. Modaraba
4. Musharaka

Correct answer: Ijara

Selected Answer: B

Q8. Which one of the following statements best describes the simple interest?

1. Interest charged only on bank loans
2. Interest that remains stagnant in first period
3. Interest applied on the principal amount
4. Interest that gradually grows with time

Correct answer: Interest applied on the principal amount

Q9. Which one of the following features of preferred shares adds up and carries forward the unpaid dividend to next period?

1. Cumulation
2. Conversion
3. Redemption
4. Participation

Correct answer: Cumulation

Q10. Which one of the following models is not applicable if required rate of return on an investment is less than the growth rate of a company?

1. Dividend Discount Model
2. Miller-Orr Model
3. Capital Asset Pricing Model
4. Modigliani Miller Model

Correct answer: Dividend Discount Model