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๐Ÿ’ฐFinance MCQs

Finance MCQs

500 MCQs
421

In the dimension of default risk, the municipal bonds are considered as ___________?

Adefault risk free
Bnot default risk free
Cnot indexed
Dmust be indexed
422

The convertible bonds are considered as hybrid bonds because they have properties of _____________?

Adebts
Bcommon equity
Cboth debt and equity
Dordinate and subordinated
423

The financial institutions generally such as insurance companies and banks are prohibited to buy anything but __________?

Asplit grade bonds
Binvestment grade bond securities
Cportfolio grade bonds
Dsinking grade bonds
424

The type of provision which forces bond holders to sell bonds to issuer at value above than par is classified as ___________?

Adiscount premium
Bdiscount provision
Ccall premium
Dcall provision
425

The situation in which the investment bank faces no risk of mispricing regarding security is considered as __________?

Aleast good premium
Bleast good discount price
Cbest efforts offering
Dleast good index
426

The bonds which are classified as junk bond status and have previously considered as investment grade bonds are called __________?

Arisen angel
Bfallen angel
Cfallen devil
Drisen devil
427

To make the promised payments, the federal money can _______________?

Araise taxes
Bprint money
Cincrease labor hours
Dboth A and B
428

If the price at which stock is purchased exceeds the market value then the stock warrants will ____________?

Abe exercised
Bnot be exercised
Cbe discounted
Dnot be discounted
429

The treasury securities are exempted from __________?

Afederal taxes
Blocal and state taxes
Cfederal discounts
Ddeferral premium
430

When characteristics of bonds are perceived as unfavorable or favorable to the holders of the bond, then differences of yield spread

Amust not changes
Bmust changes
Cmust be debited
Dmust be credited
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