MGT411 Solved MCQs with References by Shifa

Q1. of 15 ( Start time: 10:50:41 PM ) Total Marks: 1 The slope of the yield curve seems to predict the performance of the economy with:

Usually 3 months lag Usually two years lag Usually within few weeks Usually one year lag

The lowest rating for an investment grade bond assigned by Moody's is:

BBB ABB Baa Aaa

Which is broadly used as money aggregate?

M1 M2 M3

Q4. of 15 ( Start time: 10:52:56 PM ) Total Marks: 1 Which one of the following is the strategy of reducing overall risk by making two investments which are totally independent of each other?

Spreading the risk Standard deviation Hedging the risk Variance

Q5. of 15 ( Start time: 10:53:59 PM ) Total Marks: 1 Previously financial markets are located in which of the following?

Coffee houses or Taverns

Bazaar Coffee houses and Stock exchanges

Q7. of 15 ( Start time: 10:56:45 PM ) Total Marks: 1 Which of the following is the measure of likelihood that an event will occur?

Risk Probability Frequency Outcom

Q6. of 15 ( Start time: 10:55:27 PM ) Total Marks: 1

Considering the Liquidity Premium Theory, if investors expect short term interest rates to decrease:

The yield curve must have a positive slope The yield curve must be inverted The yield curve could be flat The slope of the yield curve sh The slope of the yield curve should actually increase

Q8. of 15 ( Start time: 10:57:22 PM ) Total Marks: 1 The relationship between the price and the interest rate for a zero coupon bond is best described as:

Volatile Stable Non-existent Inverse

( Start time: 10:58:26 PM ) Total Marks: 1 _ is the interest rate at which the present value annual reveneu equals the cost of the investment.

Fixed rate of interest Internal rate of return Variable rate of interest Nominal rate of interest