The financial results of a company show that it has suffered losses due to decliningmarket share. The price of its equity share drops in the market. This is an example of therole of the market as: _________.

Information Signalling through prices

Orderly channel for transfer of funds from investors to issuers

Generator of productive investments

Information Signalling through prices

The primary reason that individuals and firms choose to borrow long-term is to

reduce the risk that interest rates will rise before they pay off their debt.

reduce the risk that interest rates will fall before they pay off their debt

reduce the risk that interest rates will rise before they pay off their debt.

reduce monthly interest payments, as interest rates tend to be higher on short-term than long-term debt instruments

reduce total interest payments over the life of the debt

Shares of ownership in a corporation.

Shares of trading in a corporation.

Bonds with potential to make money.

A basic principle of finance is that the value of any investment is

the present value of all future net cash flows generated by the investment

the undiscounted sum of all future net cash flows generated by the investment

unrelated to the future net cash flows generated by the investment

unrelated to the degree of risk associated with the future net cash flows generated by the investment

Finance companies raise funds in the money market by selling

negotiable certificates of deposits

Capital Markets Gate & PSU MCQ Questions With Answers Quiz

17.

Typically, the interest rate on corporate bonds will be the more restrictions are placed on management through restrictive covenants, because .

higher; corporate earnings will be limited by the restrictions

higher; the bonds will be considered safer by bondholders

lower; the bonds will be considered safer by buyers

lower; corporate earnings will be higher with more restrictions in place

1.

----------------- is based on the uncertain event whose result determined by chance or accident

2.

When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, the euro has and the dollar has

3.

Compared to money market securities, capital market securities have

4.

The financial results of a company show that it has suffered losses due to decliningmarket share. The price of its equity share drops in the market. This is an example of therole of the market as: _________.

5.

The reserves of a company rightfully belong to ____________.

6.

Suppose that you purchase a 91-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's discount rate if held to maturity is about

7.

The primary reason that individuals and firms choose to borrow long-term is to

8.

A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if she expects it to be selling for $30 in one year and requires a 15 percent return on equity investments?

9.

SD's stock price is currently $25. It is expected to pay a dividend of $0.85 a share in the current year. If its price one year is predicted to be $27.50, what is the expected return?

10.

According to the Gordon growth model, what is an investor's valuation of a stock whose current dividend is $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 15 percent?

11.

What are stocks?

12.

Money market securities have all the following characteristics except they are not

13.

Who is the chairman of SEBI?

14.

When the value of the British pound changes from $1.50 to $1.25, the pound has and the dollar has .

15.

What is an IPO?

16.

Professional independent brokers are called------------------

17.

Typically, the interest rate on corporate bonds will be the more restrictions are placed on management through restrictive covenants, because .

18.

State the name of an optimistic speculator?

19.

Statutory body governing the capital market

20.

A basic principle of finance is that the value of any investment is

21.

Who make benefit from share market price differences?

22.

Finance companies raise funds in the money market by selling

Time

1. ----------------- is based on the uncertain event whose result determined by chance or accident

2. When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, the euro has ________ and the dollar has ________

3. Compared to money market securities, capital market securities have

4. The financial results of a company show that it has suffered losses due to decliningmarket share. The price of its equity share drops in the market. This is an example of therole of the market as: _________.

5. The reserves of a company rightfully belong to ____________.

6. Suppose that you purchase a 91-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's discount rate if held to maturity is about

7. The primary reason that individuals and firms choose to borrow long-term is to

8. A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if she expects it to be selling for $30 in one year and requires a 15 percent return on equity investments?

9. SD's stock price is currently $25. It is expected to pay a dividend of $0.85 a share in the current year. If its price one year is predicted to be $27.50, what is the expected return?

10. According to the Gordon growth model, what is an investor's valuation of a stock whose current dividend is $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 15 percent?

11. What are stocks?

12. Money market securities have all the following characteristics except they are not

13. Who is the chairman of SEBI?

14. When the value of the British pound changes from $1.50 to $1.25, the pound has ________ and the dollar has ________.

15. What is an IPO?

16. Professional independent brokers are called------------------

17. Typically, the interest rate on corporate bonds will be ________ the more restrictions are placed on management through restrictive covenants, because ________.

18. State the name of an optimistic speculator?

19. Statutory body governing the capital market

20. A basic principle of finance is that the value of any investment is

21. Who make benefit from share market price differences?

22. Finance companies raise funds in the money market by selling

Time

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1.

----------------- is based on the uncertain event whose result determined by chance or accident

2.

When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, the euro has and the dollar has

3.

Compared to money market securities, capital market securities have

4.

The financial results of a company show that it has suffered losses due to decliningmarket share. The price of its equity share drops in the market. This is an example of therole of the market as: _________.

5.

The reserves of a company rightfully belong to ____________.

6.

Suppose that you purchase a 91-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's discount rate if held to maturity is about

7.

The primary reason that individuals and firms choose to borrow long-term is to

8.

A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if she expects it to be selling for $30 in one year and requires a 15 percent return on equity investments?

9.

SD's stock price is currently $25. It is expected to pay a dividend of $0.85 a share in the current year. If its price one year is predicted to be $27.50, what is the expected return?

10.

According to the Gordon growth model, what is an investor's valuation of a stock whose current dividend is $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 15 percent?

11.

What are stocks?

12.

Money market securities have all the following characteristics except they are not

13.

Who is the chairman of SEBI?

14.

When the value of the British pound changes from $1.50 to $1.25, the pound has and the dollar has .

15.

What is an IPO?

16.

Professional independent brokers are called------------------

17.

Typically, the interest rate on corporate bonds will be the more restrictions are placed on management through restrictive covenants, because .

18.

State the name of an optimistic speculator?

19.

Statutory body governing the capital market

20.

A basic principle of finance is that the value of any investment is

21.

Who make benefit from share market price differences?

22.

Finance companies raise funds in the money market by selling