Management MCQs

Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as

by
A. professional traders
B. non-investment traders
C. position traders
D. future market traders
✅ The correct answer is option C.
Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as position traders. Position trader refers to an individual who holds an investment for an extended period of time with the expectation that it will appreciate in value.

Composite value of traded stocks group of secondary markets is classified as

by
A. stock index
B. primary index
C. stock market index
D. limited liability index
✅ The correct answer is option C.
Composite value of traded stocks group of secondary markets is classified as stock market index. A stock index or stock market index is a measurement of a section of the stock market.

Current assets are subtracted from current liabilities to calculate

by
A. opportunity cost of capital
B. working capital
C. total long term assets
D. weighted average cost of capital
✅ The correct answer is option B.
Current assets are subtracted from current liabilities to calculate working capital. Working capital, also known as net working capital (NWC), is the difference between a company’s current assets, such as cash, accounts receivable (customers’ unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.

Which of these characteristics best describes a customer-driven organization?

by
A. Unresponsiveness
B. Cost reduction
C. Responsiveness
D. Innovation
✅ The correct answer is option C.
Responsiveness characteristics best describes a customer-driven organization. Responsiveness, in communication, refers to the degree that what YOU say, responds clearly and directly, to what the other person just said. If you are being responsive, the other person knows you are paying attention, and care enough about what he or she is talking about to “stay on that topic”.

In operating income strategic analysis, strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as

by
A. internal process component
B. growth component
C. price recovery component
D. productivity component
✅ The correct answer is option C.
In operating income strategic analysis, strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as price recovery component. The price-recovery component measures change in output price compared with changes in input prices.

Direct relationship between price change and interest rate change is represented by

by
A. positive duration
B. positive discount
C. negative discount
D. negative duration
✅ The correct answer is option A.
Direct relationship between price change and interest rate change is represented by positive duration. The name for a particular relationship between changes in the price of a debt security and changes in prevailing interest rates. When a security has positive duration, its price increases in response to a decrease in prevailing market rates. Almost all securities have positive duration.

Form of market efficiency which considers speed with which information at public level is impounded in prices of stock is classified as

by
A. semi-strong form market efficiency
B. expensive form market efficiency
C. weak form of market efficiency
D. strong form of market efficiency
✅ The correct answer is option A.
Form of market efficiency which considers speed with which information at public level is impounded in prices of stock is classified as semi-strong form market efficiency. The semi-strong form efficiency is a type of efficient market hypothesis (EMH), which holds that security prices adjust quickly to newly available information, thus eliminating the use of fundamental or technical analysis to achieving a higher return.

Federal Reserve increases money supply by

by
A. selling Swiss bills
B. buying Swiss bills
C. selling treasury bills
D. buying treasury bills
✅ The correct answer is option C.
Federal Reserve increases money supply by selling treasury bills. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls.